Federal Reserve Bulletin, 1973-09

F e d e ra l R e se rve B ulletin BOARD OF GOVERNORS O F THE FEDERAL RESERVE SYSTEM W ASHINGTON, D.C. 20551 SEPTEM BER 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 Digitized for FRASER payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 9 □ VOLUME 59 □ SEPTEM BER 1973 611 Expansion in Industrial Production 622 Treasury-Federal R eserve Foreign Exchange O perations 641 R ates on C onsum er Instalm ent Loans 646 Credit-Card and Check-Credit Plans at Com m ercial Banks 655 O bjectives and Responsibilities of the Federal R eserve System 658 Statem ent to C ongress 665 Record of Policy Actions of the Federal O pen M arket Com m ittee 675 Law D epartm ent 709 A nnouncem ents 711 Industrial Production Financial and B usiness 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 96 Board of G overnors and Staff A 98 O pen M arket Com m ittee and Staff; Federal Advisory Council A 99 Federal R eserve Banks and B ranches A 100 Federal R eserve Board Publications A 104 Index to Statistical Tables M ap of Federal R eserve System on Inside Back Cover EDITORIAL COMMITTEE J. C harles Partee Joseph R. Coyne Robert Solom on Ralph C. Bryant K enneth B. W illiams Lyle E. Gram ley 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

Expansion in Industrial Production Industrial production reached a new high in the summer of 1973. The large and sustained expansion since the cyclical low in late 1970 has reflected widespread increases in demands: an upsurge of consumer buying, especially of durable goods; strong demands for business equipment to modernize and enlarge capacity; large increases in residential and commercial construction activity; and an accompanying rise in output of industrial materials and con­ struction products. The rate of increase in industrial production this year has been fairly rapid— a 7.5 per cent annual rate from last December to July—but was appreciably less than the 12 per cent rate during 1972. In August the index edged off because of a temporary sharp drop in auto and truck production. Moderation of the expansion this year reflects in part constraints placed on production by high rates of capacity utilization in a number of industries, particularly those producing fuels and materials for further processing. But it 1 1 INDUSTRIAL PRODUCTION and the major MARKET GROUPINGS are at new highs RATIO SCALE, 1967=100 Seasonally adjusted. Latest data, August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 has also resulted, in part, from some easing of demand pressures in important sectors. Hence, consumer purchases of goods in constant dollars have changed relatively little from the advanced first-quarter level, and both housing starts and the volume of residential construction activity have been drifting down this year. On the other hand, the physical volume of exports of nonagricul­ tural products has been rising rapidly and in the first half of this year was up more than one-fifth from a year earlier, reflecting both the devaluation of the U.S. dollar and strong economic expansion abroad. U.S. imports have risen much less rapidly than exports over this interval. The labor market has continued strong, with the unemployment rate in August at 4.8 pe,r cent compared with 5.6 per cent a year earlier. Growth in employment, however, has moderated from the exceptionally rapid rate that had prevailed in the second half of 1972 and in early 1973, and manufacturing employment has shown little change since June. The average workweek in manufacturing in the first 8 months of 1973 was above the corresponding period of 1972, but it has edged down since last spring. Following a 2-year period of strong gains, increases in industrial productivity slowed in the first half of 1973 and continued relatively moderate in July and August. The reduced rate of productivity growth coupled with increasing labor compensation resulted in sharply higher unit labor costs in the first half of this year. The wholesale price index, which had increased 6.5 per cent during 1972, rose at an annual rate of 25 per cent after Phase III controls replaced Phase II in January. This extremely rapid increase was led by an extraordinary 83 per cent annual rate of advance in prices of farm products, but the 11 per cent rate for industrial commodities was also exceptionally large. Prices of farm products rose further by a record amount from mid-July to mid- August, but much of this advance had been reversed by early September. The consumer price index followed the pattern shown by wholesale prices before and after the termination of Phase II, but the increases were less sharp. Retail food prices increased at an annual rate of 17 per cent between January and July of this year, and all items less foods rose at a 4 per cent annual rate. A general price freeze imposed on June 13 was partially removed from most foods on July 18, and on September 10 was replaced by Phase IV controls, which are somewhat more rigorous than those of Phase II. But industrial prices, as expected, rose rapidly after the end of the freeze. CONSUMER GOODS Production of consumer goods in August was 16 per cent above the 1969 pre-recession peak—reflecting a sharp increase in output of durable goods and a smaller growth in nondurable goods that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN INDUSTRIAL PRODUCTION 613 Output and stocks of 2 CONSUMER DURABLE GOODS continue to rise but sales begin to decline RATIO SCALE, 1967=100 140 130 120 110 100 90 I I I l 1969 1971 1973 Seasonally adjusted. Sales and stocks based on physical quantity and constant-dollar data derived partly by F.R. from Bureau of Economic Analysis and trade sources. Latest data, Q3 estimated. account for a larger part of the total. By the second quarter of 1973, however, the expansion in total output of consumer goods had begun to slow as production of some durable goods was at or near capacity levels and demands were showing indications of easing. In August output of consumer goods declined, primarily because of special temporary circumstances in the auto industry; in mid-September, there was a short strike at a major auto producer, which was settled by a tentative agreement subject to union ratifi­ cation. Consumer durable stocks have been increasing this year, moving toward the earlier record levels of 1971 (Chart 2). Automobiles. Unit sales of domestic-type autos this year have remained close to the record rate reached in the first quarter, as may be seen in Chart 3. August sales were at a seasonally adjusted annual rate of 9.7 million units compared with the record rate of SALES OF IMPORTED AUTOS 10.3 million units in the first quarter. Purchases of imported cars also peaked in the first quarter and then declined as stocks already 2.0 in this country at the time of the February doUar-devaluation were run down. It appears that concerns about gasoline shortages have 1.5 kept sales of imported cars higher this summer than had been / IMPORT SALES expected and have strengthened demand for domestic-type small cars. With auto plants operating at close to capacity levels, domestic f 1 f I output was virtually unchanged in the first half of 1973 following 1969 1971 1973 a 25 per cent increase during 1972 to an advanced rate at the Seasonally adjusted at annual rates. Latest data, Q3 estimated. year-end. With sales off somewhat from their highs, dealer inven- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 tories of new domestic autos have been accumulating and by mid-1973 had risen 15 per cent from the third quarter of 1972. In August, output was a fifth below the scheduled pace because of parts shortages and plant closings due to extreme heat; however, stocks remained at the end-of-the-second-quarter level and by August 31 were equivalent to a 49 selling-day supply. Sales and output of DOMESTIC AUTOS begin to ease; stocks start to climb 1967=100 RATIO SCALE MILLIONS OF UNITS Seasonally adjusted. Sales and output at annual rates; stocks are index numbers. Quarterly averages except stocks, end of quarter. Latest data, Q3 estimated. Home goods. Output of appliances, radios, television sets, carpets, and furniture—extending a period of growth that had started in early 1971—reached a new high in the second quarter of 1973, although production was off slightly by August. Retail sales, which include imports, also continued to rise. Nevertheless, the rate of growth tapered off after the first quarter as completion rates for new housing, including mobile homes, have leveled off. Retail and factory stocks of home goods, which include imports as well as domestic production, have increased in 1973 and by August were 7 per cent above the level at the end of 1972. Production of home appliances and sales to dealers of these goods rose only slightly in the second quarter after a substantial rise in the previous two quarters and were down somewhat in July and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN INDUSTRIAL PRODUCTION 615 August. Factory and dealer stocks leveled off in the second quarter after a 25 per cent increase over the preceding six quarters ending in March; in August they were up again. Domestic production of television sets and home audio equip­ ment increased substantially in the first half of 1973 after a year of rather stable production in 1972. The expansion reflected in part the continued increase in demand for color TV sets— a higher percentage of which are produced in the United States— and in part adjustments in foreign exchange rates, which made imports more expensive here. By August, factory sales of television sets to dealers were only 2 per cent above a year earlier while factory and wholesale distributors’ stocks were up 14 per cent. The inven­ tory mix was changing, however, as stocks of monochrome units decreased, reflecting their declining market share, while inventories of color sets increased. Nondurable consumer goods. Over all production of nondura­ ble consumer goods in August was 4 per cent above a year earlier. Since the first quarter, however, growth has leveled off as a decline in residential utilities has about offset increases in consumer chem­ icals. Output of processed foods and consumer paper products has changed little during 1973. Production of the cyclically sensitive apparel group, which had been rising steadily since late 1970, has leveled off since March of this year. Over the two quarters ending in March, retail sales of apparel increased 12 per cent in value terms, but in the second quarter of 1973 they declined 2 per cent. The dollar value of apparel sales in recent months has reflected increases in prices, which rose sharply in the first half of 1973 following a slower but steady rate of increase from mid-1971. BUSINESS EQUIPMENT The renewed expansion in business equipment production, which began in mid-1971, has continued into the third quarter of this year. However, the rate of expansion has slackened since February, reflecting in part capacity output in some business-equipmentproducing industries and also delays in delivery of intermediate goods and raw materials to equipment producers. Output of busi­ ness equipment has risen at about a 10 per cent annual rate since February as compared with 20 per cent in the preceding 12-month period. In August, output was at a new record, about 12 per cent above its 1969 peak and 30 per cent above its trough in May 1971. As may be seen from Chart 4, the cyclical movement in business equipment production in the 1969-73 period was more pronounced than that for total industrial production, which is typical of business cycles. Fluctuations in production of manufacturing equipment—over the period September 1969 to October 1972—contributed to the pronounced cyclical movement in total business equipment pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 BUSINESS EQUIPMENT recovers dramatically with upswing in industrial production RATIO SCALE, 1967=100 Seasonally adjusted. Latest data, August. duction (Chart 5). After having reattained its 1969 peak in October 1972, manufacturing equipment output has risen to its highest postwar level. The sharp recovery to a new high reflects the sharp increase in investment in the manufacturing sector (Chart 6)—en­ couraged by such developments as expanding sales of manufactured goods, strains on capacity in some industries, and the investment tax credit. The expansion in output of manufacturing equipment has ap­ parently resulted in less expansion in manufacturing capacity than has been usual in cyclical upswings, in part because of urgent needs to modernize existing facilities and to adapt older plants to conform with pollution control standards. According to the results of Mc­ Graw-Hill’s recent survey of business capital expenditures, the distribution of capital expenditures by manufacturing between ex­ pansion and modernization shifted in the direction of modernization in 1971 and 1972. Prior to 1971, this distribution had been relatively stable for a number of years. This diversion of investment resources to needs other than capacity expansion appears to have been especially pronounced in the major materials industries where growth in capacity has been slow in spite of sharply rising investment levels (August 1973 Bulletin, pages 564-66). Such major materials-supplying indus­ tries as paper, cement, and steel are prime examples of industries that have severe pollution problems, and they are among those that are devoting significant amounts of new equipment to pollution abatement. For example, the American Paper Institute reports that about 40 per cent of the paper industry’s investment in 1972 was for pollution control. There was also a pronounced cyclical movement in the produc­ tion of transportation equipment in the 1969-73 period. After a peak in July-September 1969, output of such equipment declined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN INDUSTRIAL PRODUCTION 617 5 | EQUIPMENT PRODUCTION is up RATIO SCALE, 1967=100 Seasonally adjusted. Latest data, August. to a low level in November 1970. At that point, production was further depressed by a strike at a major auto and truck producer. Production has since recovered but is not yet back to the levels attained in 1969, inasmuch as aircraft output, an important compo­ nent, remains substantially below its peak levels. Output of com­ mercial aircraft declined by about one-half from July 1969 to July 1971 and has shown only moderate recovery since then. The recovery in transportation equipment production was spear­ headed by near-capacity output of trucks in the first half of 1973. Truck production in August was down sharply, however, because of parts shortages and because of plant closings occasioned by extremely hot weather. Production of truck trailers also has in­ creased strongly this year. Commercial ship production has been at about its 1969 level after an intervening decline and partial recovery. Production of railroad equipment remains well below the previous cycle peak as problems in the railroad industry, principally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 in the Northeast, have limited the carriers’ ability to finance new equipment. Production of farm equipment has recovered sharply since its July 1971 low. The upswing, fueled by the tremendous increase in domestic and foreign demands for U.S. farm products and the consequent high prices of farm products, has carried the index substantially above the previous high of August 1969. Output of building and mining equipment has made a strong recovery from its recession low in July 1971. The index is currently well above the level of the previous peak in November 1968. Production of construction equipment has been buoyed by the dramatic upswing in private housing construction, which began early in 1970. Although new housing starts have been drifting downward this year, they have remained at a high level. Demand for construction equipment has also been stimulated by a recovery in 1972 and 1973 in activity in the private nonresidential sector. From a cyclical low of $24.3 billion (annual rates, 1958 dollars), expenditures for nonresidential structures rose to an estimated $27.1 billion in the second quarter of 1973. Production of power and commercial equipment showed less cyclical movement in 1969-73 than that experienced in the other sectors. The relatively steady growth in the output of power equipment reflects the noncyclical nature of the utility business, which in turn reflects the generally sustained growth in use of energy by both industrial and nonindustrial consumers. Commercial equipment production (Chart 5) declined moderately from late 1969 to early 1971 and subsequently rose to new high levels. This class of equipment includes computers and other office and store ma­ chines whose applications in various sectors of the economy have continued to expand rapidly. Various indicators suggest that considerable strength remains in the investment sector. Both new and unfilled orders of nondefense capital goods industries have continued to rise sharply this year, as have plant and equipment expenditures (Chart 6). Appropriations for new plant and equipment spending by the manufacturing sector in the second quarter were sharply higher than the cyclical low in the comparable quarter of 1971. The Conference Board reports that the recent slowing in the rate of increase of appro­ priations—from 17 per cent in the first quarter of 1973 to 11 per cent in the second quarter—was due to supply limitations. Backlogs of unspent appropriations this year showed their largest gain yet recorded. High levels of new appropriations and backlogs of unspent appropriations constitute the potential for continued in­ vestment—and for output of business equipment as well—at high and possibly rising levels. The recent Commerce Department sur­ vey, taken mostly in August, indicates that manufacturers plan to spend 19 per cent more for plant and equipment in 1973 than in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN INDUSTRIAL PRODUCTION 619 n INDICATORS show strength 0 in investm ent upswing RATIO SCALE, BILLIONS OF DOLLARS 12 10 8 6 1969 1971 1973 Seasonally adjusted. Latest data, Q3 estimated. 1972 and that nonmanufacturing industries plan to spend 10 per cent more than in 1972. DEFENSE AND SPACE Output of defense and space equipment remains well below the EQUIPMENT peak rate reached in 1968. This reduced level reflects the U.S. withdrawal from an active military role in Southeast Asia and the reduction in space exploration activity since the completion of the Apollo program. INTERMEDIATE Intermediate products— such as construction products, farm chemi­ PRODUCTS cals, and fuels for commercial uses—are produced in the industrial sector for use mainly outside the sector. With the sharp rise in construction activity in 1972, output of construction products ad­ vanced rapidly during the year. During the first half of 1973, however, output of these products showed little further gain, in part because of capacity limitations in some industries and in part because of a drifting down in new private housing starts since late 1972. Production of general business supplies, reflecting the rise in the over-all economy, advanced during 1972 and then was maintained at record levels during the first half of 1973. MATERIALS FOR Fluctuations in production of materials used for industrial process­ PROCESSING ing are usually wider than those for final products for two reasons. One is that they reflect fluctuations in a very sensitive component of business inventories. The other is that, in recent years, short-run shifts in foreign trade have been large for materials. The rise in output of industrial materials that began in early 1972 and continued into mid-1973 has reflected a variety of influ­ ences: an increased demand for, and output of, consumer goods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 M aterials OUTPUT rises faster than PRODUCTS as UTILIZATION RATE of major m aterials increases; although SUPPLIES build up further, PRICES still rise rapidly RATIO SCALE, 1967=100 ANNUAL RATES OF CHANGE, BILLIONS OF 1963 DOLLARS RATIO SCALE, 1967=100 130 PRICES OF MATERIALS / 120 110 * l I i 100 1969 1971 1973 1969 1971 1973 Seasonally adjusted except prices. Price index, F.R. grouping (net imports compiled by F.R. from Dept, of Commerce data; of BLS data. Utilization rate, F.R. Supplies, net imports duties and freight on imports, F.R. estimates). Latest data, plus projections of 1963 output-inventory relationships based August or Q3 estimated, on industrial production indexes for materials and final products and business equipment; a build-up of inventories of these goods—apparently induced to a significant extent by an upward spiral in prices—as a partial hedge against expectations of continued price advances; and in recent months, an increase in exports of industrial materials in response to the devaluation of the dollar and to tighter supplies in other countries. The 1972-73 upswing in output of industrial materials has brought to a new high the capacity utilization rate in major materials industries and an indicated increase in the rate of inventory accu­ mulation of industrial materials. Stocks of materials probably have been built up enough to prevent development of serious general shortages of materials even though their production is near capacity. However, this does not preclude the development of shortages of specific materials. For example, some parts of the country and several types of industrial users have been affected by limited supplies of fuels this year, and in August, auto and truck assemblies were curtailed, in part, because of a lack of components. The most volatile of the materials are those used in durable goods manufacturing. This category includes basic metals and the various semifinished products that are further processed into final durable consumer goods and business equipment. Output of these materials showed a rapid growth during 1972—over one-fifth—followed by a slowing down in the rate of increase in 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN INDUSTRIAL PRODUCTION 621 Output of iron and steel, which had been cut back sharply following the wage contract settlement in mid-1971, advanced strongly in 1972 and reached a peak in December 1972. It has shown little change since then as steel mill operations have been at or near capacity levels. Inventories of steel products at producing mills declined sharply in the first half of 1973. Meanwhile, stocks increased at steel-consuming plants, but they were not excessive because output of consumer durable goods and business equipment continued at record levels. Imports of steel mill products have augmented domestic supplies, but the volume of imports has been declining as foreign steel demands have generally increased. Production of nonferrous metals and products also increased sharply in 1972; like steel, it reached a peak at the end of the year with little change since then. Among other industrial materials, those for use in processing of durable consumer goods and business equipment showed large advances in 1972. While output of these goods has continued to increase since January, the rate of increase has been at a slower pace. Over-all production of nondurable industrial materials is typically more stable and less influenced by cyclical changes than output of durable materials, and this has been especially true in the past several years. However, two of the major components of nondura­ ble materials, which had shown a consistent expansion in produc­ tion over the years until they reached a peak in 1970, have shown little further advance since then. Within these two sectors crude oil extraction and coal mining have declined in recent years and output of natural gas and gas liquids has remained stable. Output of electricity for industrial use, however, has continued to expand. In contrast, production of textile, paper, and chemical industrial materials is considerably more sensitive to cyclical fluctuations. Following large increases of output of these materials in 1971 and 1972, production continued to rise in mid-1973 but at a much slower pace than earlier. All major sectors, apart from defense equipment, have contrib­ uted to the large rise in industrial production since the 1969-70 downturn—consumer goods, business equipment, and materials. However, further gains in industrial output in the months ahead may be limited because of several factors: a slowing of the rise in consumer demands for goods, reflecting in part the recent rapid increase in prices; a decline in residential construction reflecting in part reduced availability and higher costs of mortgage financing; and the high rates of capacity utilization of industrial materials and parts, which are currently limiting expansion in some finished goods industries. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This twenty-third joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Special Manager, System Open Mar­ available additional information on foreign ex­ ket Account, and Senior Vice President in change operations from time to time. The Fed­ charge of the Foreign Department of the Federal eral Reserve Bank of New York acts as agent Reserve Bank of New York. It covers the period for both the Treasury and the Federal Open March through July 1973. Previous reports Market Committee of the Federal Reserve Sys­ have been published in the March and Sep­ tem in the conduct of foreign exchange opera­ tember Bulletins of each year beginning with tions. September 1962. After consultations with the major trading closed their exchange markets until further no­ partners of the United States, Treasury Secretary tice. Schultz announced on the evening of February Emergency meetings of the EC and Group 12, 1973, that the dollar would be devalued by of Ten (G-10) Finance Ministers quickly got 10 per cent. Almost all of the developed nations under way and yielded two major policy deci­ maintaining par or central values left them un­ sions. On March 11, five members of the EC— changed, thus bringing about a uniform realign­ Germany, France, Belgium, the Netherlands, ment of their exchange rates reflecting the full and Denmark—agreed to maintain fixed ex­ devaluation of the dollar. In the case of Japan, change-rate relationships among themselves the yen was allowed to float temporarily to within a 2.25 per cent band, which would be permit an additional appreciation vis-a-vis the permitted to float as a bloc against the dollar. dollar. Sterling and the Swiss franc remained Norway and Sweden subsequently joined this on the floating basis initiated in earlier months bloc. In conjunction with this EC decision to and were joined by the Italian lira. establish a fixed-rate bloc, the German authori­ While there was some initial profit-taking, ties revalued the mark by 3 per cent. As further new flows of funds into marks and other foreign protection against new speculative inflows of currencies soon resumed. Despite the major funds, most countries participating in the EC adjustment in exchange rates resulting from the bloc tightened and extended their existing ex­ dollar devaluation, there continued to be wide­ change controls. The Japanese yen, Swiss franc, spread discussion of the possibility of a joint sterling, and the Italian lira each continued to float of the European Community (EC) curren­ float independently. cies in the event of renewed dollar inflows. The EC decision to engage in a joint float Market worries were further exacerbated by the against the dollar left open a major question speculative buoyancy of the floating Swiss whether such a float would be “clean” or sub­ franc, which had appreciated significantly more ject to intervention by the Federal Reserve and than other European currencies. the EC central banks at their discretion. This In short, the markets remained entirely un­ policy issue was taken up by the Paris meeting convinced that the crisis was over, and by of the G-10 Finance Ministers, including Secre­ February 23 the dollar had fallen to its new floor tary Schultz, who issued on March 16 a com­ against the mark, French franc, guilder, and munique reiterating their determination to en­ Belgian franc. Then on Thursday, March 1, in sure jointly an orderly exchange-rate system. a sudden new flight from the dollar, more than They agreed in principle that official interven­ $3.6 billion was dumped on the European cen­ tion in the exchange markets might be useful tral banks. That night the European authorities at appropriate times to facilitate the maintenance Digitized for FRASER 622 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

of orderly conditions. Each nation represented Such excessive depreciation of the dollar was stated that it would be prepared to intervene at simultaneously generating further hectic specu­ its initiative in its own market in close consul­ lation in the international commodity markets tation with the countries whose currencies were and otherwise seriously intensifying inflationary being traded. To ensure adequate resources for pressures in the United States. Those countries such official exchange operations, it was envis­ whose currency rates were moving down with aged that some of the existing swap facilities the dollar suffered the same inflationary impact would be enlarged. while, conversely, those countries whose cur­ With these new rules of the game, the markets rencies were appreciating excessively visualized were officially reopened on March 19 and over a major and unjustifiable threat to their compet­ the next 6 weeks the dollar improved hesitantly itive position in world markets. This was a as earlier adverse leads and lags were partially dangerous situation from almost every point of unwound. Despite an improving trend in the view and was recognized as such by press U.S. balance of payments and the frequently commentary around the world. voiced view that the dollar was now under­ At a meeting of the Bank for International valued, there was no large sustained covering Settlements (BIS) group of central banks on the of short dollar positions, or reflow of funds. following weekend, Federal Reserve repre­ Indeed, the market became increasingly con­ sentatives wound up earlier negotiations pro­ cerned over the worsening U.S. inflation, fore­ viding for major increases in the Federal Re­ casts of vastly higher energy imports, and the serve swap lines as well as for new arrange­ possible ramifications of the Watergate affair. ments covering exchange risks on floating rates. While the dollar remained strong against the On Sunday night, July 8, the governors of the currencies of this country’s two major trading BIS central banks issued a statement noting that partners—Japan and Canada—a tendency to the necessary technical arrangements were now shift out of dollars in favor of European curren­ in place to implement the Paris agreement of cies resumed in early May. By midmonth a new March 6 regarding exchange market interven­ speculative attack had broken out in which tion to maintain orderly markets. On the fol­ soaring gold prices, sliding Wall Street stock lowing Monday afternoon, in agreement with prices, and a weakening dollar fed upon each the U.S. Treasury, a telephone conference of other. Pressure on the dollar was further inten­ the Federal Open Market Committee approved sified by the progressive tightening of German a resumption of exchange operations, to be monetary and fiscal policies, as the sharp rise financed if necessary by drawings on the swap of the German mark began to pull up the other lines. EC currency rates against the dollar. The exchange markets were meanwhile an­ In June and early July, the dollar was driven ticipating such action and by the following down in recurrent bursts of heavy selling to Tuesday afternoon, when the Federal Reserve levels unjustified and undesirable on any rea­ announced an increase in the swap network from sonable assessment of the outlook for the U.S. $11.7 billion to nearly $18 billion (Table 1, p. payments position. As these pressures reached 639), a strong recovery of the dollar against a climax on July 6, the German mark had been most of the European currencies already had bid up by some 30 per cent above the central occurred. Against the mark, for example, the rate established in February, and the French dollar had rocketed up by 7 per cent from the franc and other currencies in the EC bloc by all-time low reached on the preceding Friday. 18 to 21 per cent, while the price of gold on In large part, the steep rise of dollar rates the London market had shot back up to $127. seemed to reflect market hedging against the Meanwhile, trading conditions in the exchange possibility of sudden, massive intervention by markets had become increasingly disorderly, the Federal Reserve. When intervention on such and by Friday, July 6, a number of New York a scale did not immediately materialize, dollar banks were refusing to quote rates on certain rates began to slip back and were further European currencies. Exchange trading was seriously depressed during the rest of July by grinding to a standstill. a progressive tightening of the German money 623 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 markets. On July 26 the call money rate in in the future at whatever times and in whatever Frankfurt rose to 38 per cent. amounts are appropriate for maintaining orderly Market intervention by the Federal Reserve market conditions. was in fact initiated on July 10 and was contin­ ued through the end of the month. Rather than GERMAN MARK the massive action envisaged by some traders, By early 1973 Germany’s economic expansion the Federal Reserve pursued the less dramatic had accelerated and the rate of inflation had path of trying to assist the market in finding reached the highest level in more than two a solid footing from which a strong recovery decades. In attempting to curb this inflation, the might then develop once the German credit German authorities were relying heavily on crunch was relieved, and prospectively good monetary policy instruments and, consequently, trade figures for the United States for June were were concerned over simultaneously attracting released. In this stabilizing effort, the Federal renewed flows into mark$ from abroad. There­ Reserve through frequent intervention in the fore, the German Government had erected New York market sold $220 million of German various barriers to ward off capital inflows and marks, $47 million of French francs, and $6 to protect the economy from the expansionary million of Belgian francs—an intervention total impact of such inflows as did occur. These of $273 million—all financed by drawings on controls could not be airtight, however, and in the swap lines with the foreign central banks January and early February of this year, a com­ concerned. These drawings increased the Sys­ bination of developments in Europe and the tem’s swap debt from $1,555 million to $1,828 United States had touched off a rush into marks, million by the end of July (Table 2, p. 640). which thereafter broadened into a full-scale at­ Federal Reserve operations in New York were tack on the U.S. dollar. strongly reinforced by coordinated purchases of In conjunction with the February 12 devalua­ dollars by the German Federal Bank in Frankfurt tion of the dollar, the German authorities im­ totaling somewhat more than $300 million. mediately set a new central rate of $0.3448 for In late July, the market stabilized well above the mark, corresponding in full to the change the lows reached earlier in the month. Then, in the value of the dollar in Special Drawing as the German Federal Bank took action to Rights (SDR’s). When regular exchange trading relieve the German credit squeeze, the New resumed after a 2-day closure of the markets, York money market tightened, and the June the mark-dollar market was subjected to strong trade figures for the United States showed con­ crosscurrents. On the one hand, many holders siderable improvement, the dollar recovered of dollars decided that they were no longer strongly through the first 2 weeks of August. prepared to hold dollar assets. Some foreigners Since then the exchange markets have been simply sold dollars to return to their own cur­ functioning in more orderly fashion in a much rencies, but many others, including some central calmer atmosphere. Bid and offer spreads are banks, shifted from dollars into German marks moving back toward normal, and daily swings and other European currencies. This process in market rates are somewhat less volatile. In added substantially to the demand for marks, early September, dollar rates against the mark not only in February but also, in varying vol­ and French franc, for example, were some 10 ume, virtually through spring and early summer. per cent and 11% per cent above their July 6 On the other hand, there remained the mas­ lows. After the shocks to confidence in recent sive positions—short of dollars and long of years, however, the healing process is bound marks—on which profits had yet to be taken. to take some time, and much will depend on Therefore, after the German Federal Bank acted emerging trends in the U.S. balance of pay­ to neutralize the monetary impact of the build­ ments and on the degree of success in holding up of mark balances by imposing a 100 per cent inflation in check in this country. Meanwhile, reserve requirement on excess balances of the market is aware of the joint statement made nonresidents, and often the German banks had on July 18 by Chairman Burns and Secretary responded by selectively imposing negative in­ Schultz that active intervention will take place terest charges on nonresident balances, reflows Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 625 took in a record $2.6 billion. The German and other European exchange markets were then closed and official international discussions to resolve the crisis began. As the market awaited the outcome of these negotiations, the mark fluctuated erratically be­ fore drifting back somewhat in very thin trading. On March 11 Common Market officials an­ nounced that Germany and four of its EC partners would keep their exchange-rate rela­ tionships fixed against each other within a 2.25 per cent band while suspending the intervention limits against the dollar. As part of this agree­ ment the German authorities revalued the mark vis-a-vis the SDR and other participating cur­ rencies by about 3 per cent. On March 16, in Paris, the U.S. authorities joined in a broader agreement incorporating these moves and rec­ ognizing that official intervention in the ex­ I ' H I change markets may be useful at appropriate ; r 2.1 MAY JUNE JULY AUGUST times to facilitate the maintenance of orderly 1973 market conditions. out of marks developed. The spot mark eased, When the markets were formally reopened on and by February 19 the mark reached its new March 19, traders remained in a state of shock floor against the dollar. Over the next few days over the events of the previous 2 months. the German Federal Bank was able to release Moreover, the vast uncertainties over how well to the market some $1 billion of its previous the market would function under the new ar­ dollar intake, and as part of this operation it rangements—a mixture of fixed and floating sold to the Federal Reserve sufficient marks to exchange rates plus a spate of new capital con­ repay the full $105 million of Federal Reserve trols—initially had paralyzing effect. As a re­ swap drawings incurred before the February sult, the market was quiet, trading was thin, devaluation of the dollar. turnover was small, and day-to-day movements These reflows out of marks quickly dried up, in the mark rate continued to be abnormally however, and the balance of forces in the market wide. Over the previous 2 months most market swung sharply the other way. With the dollar participants had satisfied their normal demand weakening across the board at a time when for marks for some time to come, leaving an European officials were openly discussing the absence of routine demand for marks once the possibility of a joint float against the dollar, few markets reopened. In addition, some of the long traders were willing to take up the heavy volume positions in marks were being cut out, as the of dollars being offered in the exchanges. In interest costs of maintaining those positions the 2 days February 22 and 23, the mark rose mounted. from its floor to its new upper limit and traded Consequently, the mark settled just below its near that level through the end of the month. effective central rate of $0.3551 against the The continuing discussion on both sides of the dollar and slipped to the bottom of the EC band, Atlantic of the exchange-rate question—whether where it required support against those curren­ the dollar’s devaluation had been enough or cies at the top of the joint float. Except for a whether there might be a joint float of the brief reversal in mid-April on a temporary European currencies—kept the market anxious. tightening of monetary conditions in Germany, Pressures came to a head on March 1, when the mark continued to drift lower against the massive amounts of dollars were dumped on the dollar and to exert a drag on other EC currencies exchanges and the German Federal Bank alone through early May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 In May, a new series of events broke the Meanwhile, the United States was suffering surface calm of the exchange markets and set from a daily diet of bad news about escalating off a progressive rise of the mark that continued prices and the Watergate affair. Coupled with virtually uninterrupted through early July. The successive sharp jumps in the price of gold and precipitous rise in the mark reflected develop­ repeated declines in prices on Wall Street ments in Germany and the United States as well throughout May, these factors brought frequent as the dynamics of the exchange market itself. sharp declines in the dollar. In Germany, the Federal Bank had been striving Against this background, the announcement to maintain its firm grip on domestic liquidity of a small U.S. trade surplus for April gave through higher reserve requirements, cuts in the dollar only a brief lift in late May, and a discount quotas, hikes in discount and Lombard renewed scramble for marks began following rates, and limits on access to the Lombard the Federal Bank’s announcement of a further facility. These measures, and expectations in the 1 percentage point increase in the discount and market that further tightening would be forth­ Lombard rates and the subsequent suspension coming, tended to reinforce the demand for of the Lombard facility on May 30. By June marks in the exchanges at a time when the 5, the spot mark had climbed to $0.3864— German Government also was developing a nearly 9 per cent above its central rate—and program of anti-inflationary fiscal measures. At had moved up from the bottom of the European first there were rumors that this program would “snake,” where it had traded since mid-March, be accompanied by a further revaluation of the almost to the top. mark, which led to renewed speculative demand Shortly thereafter, reports of an impending for marks. When the fiscal program was an­ new U.S. anti-inflation program, and later the nounced, however, there was no revaluation, Federal Bank’s move to moderate the impact and speculation subsided for the time being. of its May measures by reopening a special discount facility against commercial bills, helped to turn the mark rate down briefly. But 2A | MOVEMENTS IN EXCHANGE RATES the 60-day price freeze announced for the CHANGE, PER CENT United States disappointed the market. Then on June 26 traders were further disturbed by the U.S. trade figures for May, which showed a moderate deficit rather than the sizable surplus that many had been expecting, and by the Fed­ eral Bank’s announcement of another move to tighten domestic liquidity—a 25 per cent cut in the reserve base for foreign deposits. That day, heavy demand for marks drove the spot rate up almost 2.5 per cent in 4 hours, to a level 12.5 per cent above the March central rate. The mark was now spearheading the rise of the Community currencies against the dollar, and substantial intervention in marks by EC central banks was required on June 27 to keep the bloc together. On June 28 the mark was driven up another 3 per cent against the dollar, and the central banks participating in the fixed- *Upper and lower intervention limits established in Dec. rate bloc had to supply very large amounts of 1971. **Upper and lower intervention limits around new central marks against EC currencies, bringing the 12rate established on Feb. 13, 1973, following proposed deval­ day total to $1.5 billion equivalent. On June uation of U.S. dollar. Limits suspended on Mar. 1, 1973. Note.—Movements in exchange rates are measured as per­ 29 the German Government announced a further centage deviations of weekly averages of New York noon revaluation of the mark by 5.5 per cent in SDR offered rates from the middle or central rates established under the Smithsonian Agreement of Dec. 18, 1971. terms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 627 This move relieved the immediate tensions the domestic market and intervened in the ex­ within the snake but gave little pause to the slide change market to avoid a sharp decline in the of the dollar vis-a-vis the mark. In the first week dollar rate. The Federal Reserve intervened in of July the mark rose each day to record levels, New York while, at the same time, other central which market professionals agreed were ab­ banks were obliged to intervene to maintain the surdly high. Nevertheless, efforts of traders to margins of the snake. sell dollars against marks and other European On July 26 the squeeze came to a head, and currencies intensified, soon reaching panic a combined amount of $350 million equivalent proportions. By July 6 the markets had fallen of marks was provided through central bank into such disarray that spreads between bid and intervention in limiting the rise of the mark, offer rates widened almost to 1 per cent, and which nevertheless reached $0.4390, some 17 several New York banks refused to deal in per cent above its central rate. The liquidity marks at all. At its high of $0.4525 that day, squeeze then passed and German money rates the mark had gained more than 9.5 per cent fell off. At the same time, U.S. interest rates since June 29 and stood some 30 per cent above were rising and improved trade figures were its February central rate, 45.75 per cent above released. As the spot mark eased, the Federal the previous Smithsonian central rate, and fully Reserve applied gradual pressure, selling marks 65.5 per cent above its parity before May 1971. to keep the rate moving. By the end of July Following the regular monthly meeting of Federal Reserve intervention in marks had central bankers in Basle that weekend, reports amounted to $220.5 million equivalent, while circulated that an increase in the Federal Re­ the Federal Bank bought some $300 million for serve swap lines was in the offing, and as the its own account in support of the dollar. market developed exaggerated expectations of massive intervention to be launched in support FRENCH FRANC of the dollar, the mark dropped off sharply. By the time the increases in swap lines were con­ Following the announcement on February 12 firmed on July 10, the spot rate had fallen by that the dollar would be devalued, the French about 7 per cent. On that day the Federal Re­ authorities reaffirmed the gold parity of the serve began intervention in the New York mar­ French franc, thereby establishing a par value ket, using marks drawn under the swap line with against the dollar which fully reflected the dol­ the German Federal Bank, and following up lar’s devaluation. As the dollar soon came under with simultaneous intervention in French francs renewed attack in the exchange markets, the and Belgian francs, which also were at or near franc rose with most other currencies, touching the top of the EC band. its new ceiling on February 23. In the general The intervention was less dramatic than the selling of dollars that developed in early March, market had expected, however, being intended the Bank of France was obliged to take in some primarily to help the markets regain some sense $500 million at the upper limit before the Paris of balance and stability. Thus, although trading exchange market officially closed on March 2. did become more orderly as the Federal Reserve In subsequent days, with all the major continued to intervene and the Federal Bank European currencies effectively floating during began to intervene by buying dollars openly in negotiations to resolve the exchange crisis, the Frankfurt, the earlier recovery of the dollar was franc rate rose more than 2 per cent above its not fully sustained. new ceiling in exceedingly thin trading. During After midmonth, German money market the negotiations, the French authorities agreed conditions came to dominate the exchange mar­ to participate in a collective EC float against ket; as banks found themselves short of liquid­ the dollar while at the same time announcing ity, their efforts to meet their reserve require­ a barrage of new regulations designed to ward ments touched off renewed heavy bidding for off speculative inflows. These included a ban marks. This liquidity squeeze persisted over on interest for nonresident deposits, a 100 per several days, even though the Federal Bank cent marginal reserve requirement on those de­ provided a substantial amount of assistance to posits, prohibition on the use of financial francs Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 for nonresident purchases of short-term financial viability of the fixed-rate band and the commit­ assets, and limitations on certain forward cur­ ment of the European banks to support the rency transactions by French banks. arrangement, were switching funds from France When the Paris exchange market was offi­ and other EC countries into Germany. On June cially reopened on March 19, trading was light 27 and 28, the French franc required heavy as market participants tried to assess how these intervention to stay within its EC lower limit new controls would affect their individual against the German mark. operations. For their part, French banks soon The June 29 revaluation of the mark relieved responded to the 100 per cent marginal reserve the immediate pressure on the EC band but did requirement by selectively imposing a charge nothing to stem the growing pressure on the similar to a negative interest rate on nonresident dollar. Early in July the French Government balances. By and large, the controls had their introduced a broad range of credit measures desired effect, as no new rush into francs devel­ designed both to counter domestic inflation and oped and, indeed, the franc soon began to ease to bring French money market conditions more in response to the downward pull of the German in line with those elsewhere in the EC. These mark. measures bolstered the franc against other Among the EC currencies, however, the franc European currencies as well as against the dollar remained fairly buoyant. By early spring the in an exchange market that was becoming in­ French trade balance was strong, thanks to both creasingly disorderly day by day. On July 6, the competitive edge France had gained through as the crisis came to a head, the franc was bid earlier exchange-rate realignments and to steady upward against the dollar to a high of $0.2626, improvements in industrial productivity within almost 21 per cent above its par value. On that France. Thus, as the dollar generally strength­ day the commercial franc moved exceptionally ened in late March and through much of April, widely, and spreads between bid and offer quo­ the commercial franc declined more slowly than tations widened to more than 1 per cent. French its partner EC currencies. The French franc was, Government spokesmen expressed strong con­ therefore, at the top of a fully stretched cern about both the level to which the franc had European snake, with modest sales of francs been pushed and the demoralization of the mar­ required to maintain the limits. kets. As the dollar came under renewed pressure Following the July 8 communique from the in Europe just before mid-May, the commercial BIS meeting in Basle, the market turned around franc joined the other continental currencies in abruptly on rumors of imminent official inter­ setting new highs against the dollar almost every vention on behalf of the dollar. Over the next day. Speculative demand focused more heavily 2 days, the franc dropped back more than IV2 on the German mark, however, and although per cent, in part on reports—confirmed on July the franc rose steadily, by June it was super­ 10—of substantial increases in the Federal Re­ seded by the mark as the leader of the snake. serve swap lines. The Federal Reserve in fact At this point monetary conditions remained resumed intervention the same day, and through more comfortable in France than in several EC July 19 the New York Federal Reserve Bank countries where monetary policies had been had sold $47.0 million of French francs in the drastically tightened. In addition, French Gov­ New York market in conjunction with opera­ ernment officials spoke out repeatedly and in tions in German marks and Belgian francs. strong terms against further appreciation of the These sales were covered by corresponding franc. Nevertheless, the franc was pulled up drawings on the swap line with the Bank of further in the wake of other currencies in the France. common EC float, and as speculation on the By late July capital outflows were depressing mark accelerated in June, the spot rate shot up the financial franc rate and as it fell, it dragged against the dollar to 11% per cent above its par the commercial rate along with it. Conse­ value. By this time, heavy demand for marks quently, the commercial rate sank to the bottom had put intense pressure on the snake and market of the EC snake where it required modest sup­ professionals, who were coming to question the port to remain within the band. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 629 ued to await anxiously indications of the Swiss National Bank’s intervention policy. The next week, when the Swiss authorities reiterated their decision not to fix new benchmarks for the franc, the market vigorously bid the franc up to almost 15 per cent above its Smithsonian central rate in a speculative rush that soon spilled over into other European markets. Al­ though the Swiss National Bank intervened in the spot and forward markets to the extent of $700 million, the speculative onslaught contin­ ued. On March 1 the franc was driven up still further to $0.3247, almost 25 per cent above ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ I the Smithsonian central rate. At this level, the Swiss franc had appreciated some 7 per cent against the German mark. Following the Paris accord of March 16, the Swiss authorities reconfirmed their intention to maintain the independent float of the Swiss franc rather than to affiliate themselves with the joint float of the EC countries. Nevertheless, as the Swiss National Bank provided some of the quarter-end liquidity needs of Swiss banks by way of $500 million of swaps and additional money market assistance, normal quarter-end exchange-market pressures were blunted, and the Swiss franc began to ease as the currencies in the EC float moved lower. By early April 1972 1973 the Swiss franc had come down to $0.3060, still *Upper and lower intervention limits established in Dec. 1971. 17.5 per cent above the Smithsonian rate. **For France, upper and lower intervention limits around Throughout the rest of the early spring the new par value established on Feb. 14, 1973; suspended on Mar. 2. For Switzerland, limits suspended on Jan. 23, 1973. franc market remained in rough balance, as For Note see Chart 2A, p. 626. Swiss banks found themselves more liquid than at any time since the introduction of Switzer­ SWISS FRANC land’s restrictive monetary policy of late 1972. Late in January the Swiss authorities had de­ The banks were feeling the impact of quantita­ cided to permit the Swiss franc to float so as tive limits on the growth of bank credit imposed to prevent their restrictive monetary policy from the previous winter; with their ability to lend being compromised by renewed speculative in­ heavily constricted, they cut deposit rates by lA flows from abroad. By the time the proposed to Vi of a percentage point and reduced their devaluation of the dollar was announced on dependence on the exchange market for addi­ February 12, the floating Swiss franc had been tional funds. Although the authorities provided pushed up in heavy demand to nearly 8 per cent some liquidity to the domestic market during above its Smithsonian central rate. Unlike April, the National Bank was not called upon Switzerland’s major trading partners, the Swiss to provide month-end swaps or other direct Government did not set a new central rate and month-end assistance to the banks for the first intervention limits based on the U.S. devalua­ time since November 1972. tion but decided to allow the franc to continue Around the middle of May, a convergence on a floating basis until the markets settled down. of troublesome events disrupted the earlier As trading resumed after announcement of the steadiness in the Swiss franc market. The re­ dollar’s devaluation, the Swiss market contin­ newed surge of inflation in the United States, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 concern about the Watergate investigations, and European currencies. A severe stringency then the soaring price of gold touched off vigorous developed in the German money market, bidding for the Swiss franc, along with other prompting unprecedented increases in German European currencies. By late May the franc had interest rates and a renewed strong rise of the advanced to $0.3245, moving up along with the mark which pulled other European currency EC joint float. rates, including the Swiss franc, along in its At that point, the market began to question wake. After German monetary conditions eased whether the rise in the franc relative to other in late July, the spot franc followed the mark European currencies, particularly the German down against the dollar. By the end of July the mark, had not been overdone. As market atten­ franc stood 34.25 per cent above its Smithsonian tion shifted to the severe tightening of the Ger­ central rate. man money market during June, the rise in the franc lagged behind that of the mark. With the STERLING strong rise in the mark exerting a mounting strain on the EC band, speculative money was During the period under review, the pound switched out of Swiss francs into marks at an sterling was caught up both in the shifting tides increasing pace to take advantage of any possi­ of the United Kingdom’s domestic and interna­ ble breakdown in the European common float. tional position and in the speculative storms that The revaluation of the mark on June 29 failed swept through the world monetary system. At to quiet the speculative turmoil. Trading condi­ home, inflation continued to be a major concern tions in the exchanges deteriorated alarmingly and, increasingly, the decline of the sterling rate in the first week of July, as the market lost all last year was seen as intensifying the upward confidence in its ability to assess the near-term pressure on prices. The substantial competitive prospects for dollar rates. Moreover, those who advantage gained for the British economy vishad taken advantage of the relatively low Swiss a-vis other industrial countries through depre­ interest rates in recent years urgently bid for ciation of the floating pound since June 1972 francs to cover their short franc positions, and had not as yet been translated into an improve­ the spot franc surged to new highs each day ment in the trade balance, while the worsening in increasingly volatile and disorderly trading. terms of trade and boom in commodity prices By July 6 the franc was quoted at $0.3774, 45 had escalated import costs. Moreover, the mar­ per cent above its Smithsonian central rate. ket remained pessimistic over the prospects for Swiss National Bank Director-General Leut- Britain’s price and wage policies. Abroad, wiler in a public statement that day described events strongly and unpredictably influenced the the foreign exchange market as being “com­ sterling rate from time to time, as the market pletely out of control.” struggled to interpret the implications for ster­ After the July 7-8 central bank meeting at ling of the dollar’s weakness and recurrent the BIS, talk of imminent U.S. intervention strains within the EC band. Thus, depending appeared in the Zurich market and soon spread on how these factors interacted, sterling would to other financial centers. With the market now on some occasions tend to move in parallel with hopeful that the dollar would be supported in the dollar, and on others to reflect more closely the exchanges, the franc came on offer both in the movements of EC countries. Switzerland and in New York. By the time the Following the February 12 announcement of Federal Reserve announced the increase in the the devaluation of the dollar, the British Gov­ swap network on July 10, the Swiss franc ernment indicated that sterling would continue dropped almost 7.5 per cent from its high on to float for the time being. Soon after the Lon­ July 6. don exchange market reopened on February 13, The initial burst of enthusiasm—prompted by the pound was quoted at $2.47%, up almost 5 hopes of massive official intervention—wore off per cent from levels in early February. Although quickly, however, and although exchange- this rise was less than that for those European market conditions generally improved, the currencies with new fixed rates against the dol­ Swiss franc began to rise again along with other lar, sterling was soon pulled along with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 631 2C I MOVEMENTS IN EXCHANGE RATES from abroad. High rates on short-term sterling CHANGE, PER CENT assets became increasingly attractive to those who had been holding continental currencies in forms that were becoming either increasingly expensive or difficult to maintain. In addition, several favorable developments on the labor front lightened some of the market’s pessimism over the prospects for success of Phase Two of the Government’s incomes policy. By April, sterling was also benefiting from growing expectations that the U.K. Government was prepared to support the exchange rate in order to protect the British economy from a further deterioration of the country’s terms of trade. Thus, the $1 billion Euro-bond issue by the Electricity Council and the sizable amounts general advance of the continental European of additional borrowings abroad by the U.K. currencies against the dollar late in February. local authorities, all of which would be con­ By March 1, the pound had climbed to $2.51% verted into sterling at the Bank of England under as a renewed flight from the dollar climaxed. the exchange cover provision outlined in the The next day, in line with actions taken by March budget, were seen as bolstering reserves their EC partners, the British authorities for­ to permit a defense of the exchange rate despite mally closed the London foreign exchange mar­ an expected worsening of the trade accounts. ket while permitting normal trading to continue. Consequently, the inflow of funds into Lon­ That weekend, Chancellor of the Exchequer don that began in mid-March accelerated even Barber met with his counterparts from other EC as money market rates in Britain backed off their countries in an effort to forge a European solu­ peak levels. Recipients of sterling payments tion to the continuing currency crisis. Agree­ became more inclined to hold on to these bal­ ment was reached on some issues but not on ances while traders were increasingly willing to the terms and conditions under which sterling take on positions in sterling. Even release of might cease to float against the other EC cur­ figures showing a sharp worsening in the U.K. rencies. trade deficit in March failed to arrest sterling’s As reports of this impasse reached the market progressive strengthening, and the spot rate ad­ early on March 6, the pound was marked down vanced to the $2.48V2 level by mid-April and to $2.461A. Later that day, however, the market to $2.50^ by early May. In mid-May, the turned around in response to the Chancellor’s intensifying speculative pressures against the annual budget message. Although strongly dollar propelled the pound almost to $2.58, and stimulative, the new budget was less expan­ as sterling moved to the highest level since June sionary than the market had feared and also 1972, the Bank of England entered the market contained provisions to encourage public-sector to moderate the pace of its advance. The pound borrowing in international markets—a measure briefly turned lower in response to another set designed to relieve pressure on Britain’s capital of disappointing British trade figures and subse­ market and to bolster Britain’s official reserves. quent announcement of a substantial U.S. trade This proved reassuring to the market, and there surplus for April. But, as the dollar weakened was no adverse reaction to the British Govern­ still further in late May and early June, the spot ment’s confirmation that sterling would continue rate was bid up above the $2.58 level. to float independently. Meanwhile, however, the steady decline of With the formal reopening of the European London money market rates, contrasted with exchange markets on March 19, sterling, unlike rising rates elsewhere, had eliminated most of the continental currencies, was relatively free the interest incentive for moving into sterling. of exchange controls against inflows of funds Moreover, in view of the widely held expecta­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 tion that the strong upswing in economic activity avoid a further severe decline of sterling and in Britain would lead to a further deterioration the German Federal Bank relieved the money in the external payments position, the market market stringency in Germany, the market was beginning to question whether current rates pressures eased, and so by the end of July for sterling could be maintained. Consequently, sterling was trading above $2.50. the rise in sterling against the dollar in late May had already been less pronounced than the sharp BELGIAN FRANC increase in continental European rates, thereby For Belgium, the exchange market upheaval of producing a further substantial depreciation of late January and early February, leading to the sterling against the EC currencies. devaluation of the dollar on February 12, oc­ During June, the outlook for sterling became curred at a time of growing concern over do­ increasingly uncertain, especially as it seemed mestic inflation. Consequently, from a monetary more likely that the Government would face stiff policy point of view, the heavy inflows of funds union resistance to plans for Phase Three of its at that time were far from welcome. Following incomes policy. Also, London interest rates the announcement of the U.S. devaluation, the were continuing to fall, to levels that created Belgian Government established a new central strong interest incentives to move out of ster­ rate corresponding to $0.024793 for the franc, ling. As increasingly chaotic trading conditions allowing it to appreciate by the full 11.1 per developed in exchange markets everywhere cent change in the dollar parity. Shortly there­ during the first week of July, sterling was hit after, the authorities introduced an anti-inflaby speculative selling. Even as the dollar tionary package featuring limits on credit ex­ dropped sharply vis-a-vis continental European pansion. As a result, the franc was already currencies, sterling declined still further, and firming when the renewed run on the dollar when the dollar began to rally, the pound lagged developed in late February, and by early March behind. the National Bank was obliged to intervene at Then, later in the month sterling again began the new ceiling, taking in an additional $125 to slide in a sell-off which soon led to a drop million. in the rate to below $2.50 on July 26. As market After the official closing of the Belgian mar­ sentiment turned against the pound, the British ket on March 2, trading remained nervous, as authorities took strong and decisive action to the authorities began to devise new regulations deal with the build-up of speculative pressures to prevent a further accumulation of nonresident and outflows of funds prompted by a credit commercial balances with Belgian banks. By squeeze in Germany. To arrest an easing in the the time the market was officially reopened, the banks’ reserve positions and to bring British authorities had established a negative interest interest rates more into line with those else­ charge of lA per cent per week on any excess where, on July 19 the Bank of England called of nonresident balances above normal levels. for additional special deposits for the first time Holders of francs unloaded some balances sub­ since December 1972, requesting British banks ject to this charge—thereby pushing down the to place on deposit 1 per cent of the banks’ spot rate—while maintaining their long position total liabilities. in francs by purchasing forward francs—thereby This measure was followed by increases in widening the forward premium. the Bank of England’s minimum lending rate Once this adjustment had been completed, the from IV2 to 9 per cent on July 20 and then spot franc moved more or less in line with the to WV2 per cent only 1 week later. Meanwhile, other EC currencies in late March and early the Bank of England was strongly supporting April. Since liquidity conditions were somewhat sterling by intervening in dollars. On Friday, tighter in Brussels than in Amsterdam, the franc July 27, Chancellor of the Exchequer Barber tended to hold firmer than the guilder so that, asserted that sterling had become undervalued while the two currencies eased progressively and that “I would not hesitate to use our ample against the dollar through early May, there was reserves to protect our economy.” As the Brit­ occasional moderate intervention to maintain the ish authorities thus made clear their intent to IV2 per cent Benelux band. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 633 Early in May, the National Bank hiked its business. In just 1 week of extremely heavy discount rate by Vi of a percentage point to 5Vi demand, the franc had been pushed up some per cent, and so the franc had already begun 6 per cent to reach $0.029200 in New York, to firm when the new rush out of the dollar almost 18 per cent above its central rate. began in midmonth. By early June, the franc The market in Brussels turned dramatically was some 9 per cent above its central rate, but around early the next week, as it did in other already trailing behind the German mark which financial centers, following the meeting of cen­ had become the focus of speculation. By June tral bank governors in Basle over the weekend 27, as the demand for marks intensified, the of July 7 and 8. By the time the Federal Re­ franc joined the other currencies requiring sub­ serve’s swap-line increases were formally an­ stantial support at the bottom of the EC band, nounced on July 10, the Belgian franc had while rising to more than 12 per cent above its dropped 5.75 per cent from its July 6 highs. central rate. In conjunction with intervention in German marks and French francs, this Bank began to 2D MOVEMENTS IN EXCHANGE RATES sell Belgian francs, at first to consolidate the CHANGE, PER CENT earlier gains and then to provide resistance to sharp reversals in the dollar rate. Over several days the Federal Reserve sold $6.0 million equivalent of francs, which were obtained by drawings under the swap line with the National Bank. These sales were on a much smaller scale than those of other currencies, reflecting the relatively small volume of trading in Belgian francs in the New York market. When the franc moved away from its upper range of the European band, the Federal Reserve suspended its intervention in francs. NETHERLANDS GUILDER In the aftermath of the February dollar devalua­ tion, the Dutch authorities set a new central rate of $0.3424, and the guilder quickly moved up to trade near this level. The market remained badly shaken by the dollar’s second devaluation, however, and when another rush out of dollars developed at the end of February, bids for guilders again flooded the market as traders took advantage of the relatively free access to the Amsterdam market at a time when other centers *Upper and lower intervention limits established in Dec. were being closed off by progressively tighter 1971. restrictions. The Netherlands Bank, once again **Upper and lower intervention limits around new central obliged to absorb dollars, took in more than rate established on Feb. 14, 1973. Limits suspended on Mar. 1, 1973. $750 million by the time the authorities offi­ For Note see Chart 2A, p. 626. cially closed the market on March 1. Then, as negotiations to devise a European The June 29 mark revaluation resolved tem­ solution to the exchange crisis proceeded, the porarily the strains on the snake, but in the week guilder market turned extremely thin. With that followed there were enormous new pres­ traders hesitant to deal in the face of uncertainty sures on the dollar in all continental markets. over the outcome of these discussions and over Thus, by July 5 traders were finding it nearly possible new exchange controls in the Nether­ impossible to get quotations or to do normal lands, even very small trades provoked wide Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 rate fluctuations. Against this background, the mark at the top of the EC band, pressure on guilder spurted up on the news of another mark the guilder intensified. Therefore, even though revaluation in connection with establishment of Dutch interest rates were now noticeably firm­ a collective EC float against the dollar. Traders ing following an increase of Vi of a percentage soon became convinced, however, of the Dutch point in the Netherlands Bank’s discount rate, Government’s resolve, in view of the persis­ the guilder required increasing support to main­ tently high domestic unemployment, not to re­ tain the EC margins as the snake rose rapidly value the guilder. Moreover, the Dutch authori­ against the dollar. By late June, intervention ties, to curb potential speculative inflows, an­ against marks swelled to major proportions. In nounced that a lA per cent per week commission the 4 days prior to the June 29 mark revaluation, would be imposed on further increases in the Netherlands Bank was obliged to sell some nonresident guilder deposits. As a result, the $400 million equivalent of marks to stay within guilder was already falling back when the mar­ the band. Meanwhile, the guilder had been ket was officially reopened on March 19. pulled up to $0.3831, almost 12 per cent above Nonresidents, moving to avoid the special com­ its February central rate. mission but reluctant to unwind their positions, Following the mark revaluation, the guilder sought to switch out of spot and into forward market settled down only briefly, and in the first guilders. Consequently, the spot rate soon fell week in July the guilder was again caught up to 1 per cent below its new central rate while in the speculative onslaught against the dollar. the forward premium widened sharply. By July 5, trading had become tumultuous, as Even when the bulk of this repositioning had the market was flooded with rumors of another been completed, the guilder maintained its eas­ mark revaluation, a guilder revaluation, and a ier tone. By early spring the expansionary effect third dollar devaluation. As traders rushed from of the huge first-quarter inflows had brought dollars into the European currencies, the guilder short-term money rates down to virtually nil in was pushed up above $0.4000 on July 6. In Amsterdam and less than 2 per cent in the the chaotic market conditions prevailing that Euro-guilder market. The Dutch authorities took day, many New York banks refused to trade successive steps to neutralize part of the mone­ guilders and quotations were little better than tary impact of the earlier inflows by raising the indications, with bid-offer spreads exceeding Vi cash reserve ratio to 7 per cent and by open per cent at times. market transactions. Nevertheless, they pro­ Release of the Basle communique that week­ ceeded carefully so as not to hamper a reflow end and subsequent reports of expanded Federal of funds. Therefore, as the immediate strains Reserve swap lines helped reassure the market. of the February-March currency crisis receded, The guilder dropped back to $0.3765 on hopes funds were increasingly pulled out of Amster­ of large-scale U.S. intervention and traded dam by more attractive yields in other European quietly around this level for several days. This financial centers. In addition, some earlier leads relative calm was then interrupted as the Ger­ and lags in favor of the guilder were being man liquidity crunch built up. As the mark unwound. These short-term capital outflows moved 2.25 per cent above the guilder the more than offset the continuing strength of the Netherlands Bank again provided support underlying payments position and the guilder against the German currency. slid to the bottom of both the EC snake and By the time the German money squeeze the narrower Benelux band by early April, re­ abated just before the end of July, the cumula­ quiring support under both arrangements. As tive outflows from the Netherlands had worked nonresident balances subsequently declined to to tighten domestic liquidity and thereby to pre-February levels, the Netherlands Bank lifted encourage a firming of Dutch interest rates the special commission. which the Netherlands Bank validated by pro­ In May and early June the guilder strength­ gressively raising its discount rate to 6V2 per ened against the dollar, although it remained cent. As monetary conditions firmed and short­ weak relative to other currencies in the EC joint term capital outflows subsided, the strength of float and continued to require support. With the the Dutch current account reemerged and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 635 guilder, while easing nearly 2 per cent against Except for a temporary boost late in March, the dollar, began to move toward the top of the the lira remained vulnerable to renewed selling 2.25 per cent EC band. pressure and it weakened early in April on release of figures showing a further widening ITALIAN LIRA in the trade deficit in January and February. Coming into 1973 the Italian economy was beset With concern over the Italian economic and by sluggish growth and high unemployment political situation continuing to overhang the coupled with rising inflation. This economic market, the lira did not participate in the sharp situation, against a background of political un­ upsurge of European rates against the dollar in certainties and social unrest, provoked leads and early May. Indeed, the Bank of Italy continued lags against the lira and outright capital flight. to operate intermittently to keep the commercial After a long series of speculative attacks on the rate from depreciating further against the cur­ lira, on January 22 the Italian authorities had rencies of its EC partners. introduced a two-tier market for the lira, split Toward the end of May and the first week between a commercial market in which the of June the atmosphere in Italy’s exchange authorities would continue to intervene in sup­ market had turned even more sour. The longport of the Smithsonian limits and a financial simmering Government crisis came to a head market where the lira would float freely. In the almost simultaneously with release of April ensuing upheavals in the exchanges in late Jan­ balance of payments figures showing a sharp and uary and early February, the commercial lira contraseasonal deterioration in the over-all cur­ remained under selling pressure, while the fi­ rent account. The Bank of Italy intervened only nancial lira moved to a substantial discount. occasionally in the market, and in 7 trading days The Italian authorities responded to the Feb­ the commercial rate tumbled about 7 per cent ruary 12 announcement of the proposed deval­ while the financial lira fell even more sharply uation of the dollar by allowing the commercial as capital outflows from Italy swelled. lira to float, thereby withdrawing for the time On June 18, the caretaker Government an­ being from the joint EC snake arrangement. nounced a package of credit measures designed When trading resumed on February 14, the to restore confidence in the lira and to reduce commercial rate—at $0.001765—was some 2% the Italian inflation rate to levels prevailing in per cent above its abandoned Smithsonian cen­ the rest of Europe without choking off Italy’s tral rate; at this level it had appreciated far less incipient industrial recovery. These measures than the currencies of Italy’s major European included a steep increase in the penalty charge trading partners, which had moved up by 10 for repeated use of the Bank of Italy’s discount per cent or more. At the same time the discount facility. And, to redirect longer-term invest­ on the financial lira narrowed somewhat. ment into the securities markets, Italian com­ When the dollar fell under attack again in late mercial banks were instructed to invest no less February, the outlook for the lira was still be­ than 6 per cent of deposits at the end of 1972 in clouded by concern over the domestic labor designated public and private bonds in 1973. situation. But as the rush out of dollars reached While making these announcements, the a climax on March 1, the lira also came into Government noted the size of net official re­ demand, and the commercial rate briefly rose serves and possible credits available under the as far as 9 per cent above its Smithsonian central EC and Federal Reserve swap networks. In rate. This advance was not sustained, however, addition, it announced supplementary central when in the subsequent negotiations it became bank facilities and indicated that there would apparent that Italy would not join the common be further borrowing by state enterprises in the European float against the dollar but would international markets. As a result, the market continue to float independently. Consequently, became persuaded that the Bank of Italy, its by mid-March, the lira had slipped back to some resources now bolstered by the additional credit 2.25 per cent above the Smithsonian level for facilities, would shortly resume intervention in a further net depreciation against most European support of the lira, and the spot rate strength­ currencies. ened along with other European currencies into Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 change. The controls required that Italian resi­ 2E (movements in exchange RATES dents put up to 50 per cent of any foreign CHANGE, PER CENT investment in a non-interest-bearing account ITALY with the authorities, that prepayment for imports be financed in foreign exchange, and that com­ mercial banks maintain not only a balanced foreign exchange position over all, but separate balanced positions in U.S. dollars, EC curren­ cies, and other currencies. The market reacted favorably to these announcements, and the lira soon began to improve in the exchanges. CANADIAN DOLLAR CANADA" In February, heavy demand for Canadian dollars erupted at the time of the devaluation of the U.S. dollar, but once that episode passed, the market relationship between the two North American currencies remained largely free of the speculative influences that afflicted other exchange markets. In fact, during the period under review, the spot Canadian dollar moved *Upper and lower intervention limits established in Dec. 1971. roughly in line with the U.S. dollar vis-a-vis ♦^Intervention limits suspended on Feb. 13, 1973. European currencies. ■ Measured as percentage deviations from the $0.92V6 offi­ cial parity established in May 1962. The Canadian dollar has In general, the underlying forces affecting been floating since June 1, 1970. Canada’s payments position were in rough bal­ For Note see Chart 2A, p. 626. ance, as a rise in imports stemming from more rapid expansion of the domestic economy was early July. Meanwhile, the political situation largely offset by a surge of exports, mainly had stabilized with the formation of a new commodities and raw materials. As a result, coalition government under Premier Mariano movements of the exchange rate over the spring Rumor. In addition, the Italian Foreign Ex­ and early summer reflected mainly shifting in­ change Office decided to unwind dollar swaps terest rate differentials in the nexus of Canadian with the commercial banking system instead of and U.S. financial markets and the Euro-cur­ renewing them as had been expected, a move rency markets. Consequently, the Canadian which both underscored the magnitude of the dollar traded generally around $1.00 through exchange resources available and tightened do­ early July. Then following the particularly sharp mestic liquidity. Nevertheless, the Bank of Italy run-up of interest rates in the United States in continued to intervene heavily in the market to late July and early August, which was not keep the lira in line with other European cur­ matched in Canada, the spot rate eased to rencies. around the $0.99V2 level. In late July, the Rumor Government an­ nounced details of its new anti-inflation pro­ JAPANESE YEN gram, including a 3-month freeze on selected food and industrial prices, and ceilings on the When the dollar was devalued on February 12, growth of bank loans for certain categories of the Japanese authorities announced that they clients. Also featured in the package was a would permit the yen to float temporarily. The massive $2 billion long-term Euro-dollar bor­ authorities nevertheless remained prepared to rowing by several Italian public institutions that moderate rate movements in the Tokyo ex­ was designed to bolster official reserves. New change market. Soon after trading resumed on exchange controls were also introduced to dis­ February 14, the yen was in heavy demand and courage destabilizing speculation in the ex­ the spot rate was driven up to a level more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 637 17 per cent above the Smithsonian central rate. their investments, and as Japanese firms also Activity then subsided, arid the yen edged lower increased their direct investment abroad. All of through the end of February. When heavy pres­ these factors combined to generate a persistent sure against the dollar reemerged in Europe, the demand for dollars in Tokyo, and the Bank of Japanese authorities, acting in concert with the Japan, intervening at some 16 per cent above Europeans, decided to close the Tokyo market the Smithsonian central rate, sold about $4 on March 2. billion of reserves between mid-March and the end of June. 2F | MOVEMENTS IN EXCHANGE RATES These shifts in the Japanese payments posi­ CHANGE, PER CENT tion so dominated developments in the Tokyo market that there was little response to a series JAPAN of discount rate increases by the Bank of Japan, which brought the rate to 6 per cent from 4lA per cent by early summer. Furthermore, there was only a slight reaction to the build-up of pressures on the dollar in Europe in May. Dealers expressed concern over the implications for the yen of the June 29 revaluation of the mark, but the Japanese authorities quickly i I i i i i i i i i i i i 5 JULY SEPT. NOV. JAN. MAR. MAY JULY SEPT. responded by emphasizing that the German ac­ 1972 1973 tion, designed to correct an isolated problem ♦Upper and lower intervention limits established in Dec. 1971. within Europe, should have no impact on the ♦♦Intervention limits suspended on Feb. 14, 1973. yen. For Note see Chart 2A, p. 626. When the dollar came under pressure early With the markets closed during the first half in July, however, the yen market became fearful of March, there were no interbank transactions of the threat posed by deteriorating market con­ in Tokyo either in spot or in forward dealings. ditions elsewhere and the spot yen was bid up Following the March 16 Paris communique of as much as 5 per cent. Trading then settled down the Group of Ten Finance Ministers, normal following the BIS communique and subsequent trading in yen was resumed and a strong reversal enlargement of the Federal Reserve swap net­ of earlier speculation in favor of the yen started work. The yen then backed off to earlier levels, to emerge. By late March the dollar had and over the remainder of July, the Bank of strengthened in Toyko in response to a variety Japan resumed its dollar sales in the exchange of factors. market. The rapid expansion of the Japanese economy and the 1971 revaluation of the yen had already EURO-DOLLAR stimulated import demand, particularly for raw The deepening crisis in the exchanges early this materials and industrial commodities, and the year, not unlike monetary disturbances in the boom in world commodity prices produced a past, left a distinct mark on supply and demand further escalation in the cost of Japanese im­ patterns as well as on rates in the Euro-dollar ports. At the same time, various official limits market. As traders and investors in many parts on export growth instituted last year were be­ of the world increasingly covered their dollar ginning to have a restrictive effect. Moreover, exposure by means of forward sales, banks in the leads and lags built up in the months prior Europe and elsewhere that had purchased those to the floating of the yen were now being un­ forward dollars from their customers sought to wound, a sign that the market did not expect even out their positions by borrowing Euro­ a further sharp rise of the yen rate in the near dollars and selling the spot proceeds in the future. Furthermore, long-term capital outflows exchanges. Speculative borrowing of dollars for swelled, as Japanese interests stepped up their conversion into stronger currencies was also an participation in international financial markets, important market factor early this year. In addi­ as nonresidents liquidated a sizable amount of tion, some Euro-dollar investors, notably in less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 YIELD COMPARISONS Some of them imposed stiffer reserve require­ 3-MONTH MATURITIES EXCEPT WHERE NOTED ments and even negative interest charges on PER CENT increments to nonresidents’ deposits at domestic banks. Several governments, moreover, im­ posed additional restrictions on corporate bor­ rowings from the Euro-dollar market and in some cases prohibited such borrowings alto­ gether, forcing banks that were operating in the market to seek new customers aggressively in other overseas loan markets. In the process they not only relaxed already low credit standards but also permitted interest rate margins to nar­ row further. Substantial demands for Euro-dollar loan fa­ cilities continued to originate among traditional users—with large amounts being employed for the financing of trade with eastern Europe and 1972 1973 for British direct portfolio investment abroad. Euro-dollars are weekly averages of daily rates; CD’s, In the spring and summer these borrowings were Wednesday data. augmented when both the British and Italian developed countries without well-functioning Governments, to cushion balance of payments forward markets for their own currencies, de­ pressures, encouraged public bodies in their cided to reduce their stake in the market by countries to draw very large amounts from the sizable amounts. market. In the United Kingdom the Chancellor These changes in the pattern of supply and of the Exchequer announced in his budget demand, together with rising U.S. money mar­ statement of early March that certain public ket rates, drove Euro-dollar rates steadily bodies would again be allowed official exchange higher. By the end of February, the 1-month cover facilities for foreign currency borrowings. Euro-dollar rate was above 9.5 per cent, up from As a result, local authorities and public cor­ about 6 per cent at the beginning of the year. porations began to enter into very heavy bor- The currency crisis, in turn, induced a massive movement of funds from the United States into YIELD COMPARISONS the market, as foreign banks withdrew balances 3-MONTH MATURITIES previously placed and borrowed heavily on out­ PER CENT standing credit lines with U.S. banks or from their agencies, branches, and other affiliated institutions in this country. At the same time, these foreign subsidiary institutions in the United States and, to a lesser extent, U.S. banks repaid large amounts of maturing dollar bor­ rowings that they had previously drawn from the market. Supplies in the market were also enlarged by additional deposits, particularly from governments and central banks in several developing countries. In the wake of the February crisis and the dollar’s devaluation, the authorities of several continental European countries introduced a va­ , , > riety of regulations in defensive moves to deter further speculative inflows into their countries. Weekly averages of daily rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 639 rowing commitments, the Electricity Council The international monetary uncertainties, to­ alone contracting for a $1 billion 10-year loan. gether with soaring interest rates in the short Similarly, several Italian state institutions raised end of the Euro-currency market, resulted in a very large loans in the medium-term Euro-dollar severe contraction of the Euro-bond market, market. These borrowings served to replenish most notably its dollar-denominated segment. monetary reserve holdings in the two countries. Indeed, during the periods of greatest currency In the United States the Board of Governors unrest it became extremely difficult, if not im­ of the Federal Reserve System made several possible, to offer successfully to the public even regulatory changes that are now beginning to mark-denominated issues. On balance, how­ affect the demand of banks in the United States ever, the pressure on the dollar seemed to have for Euro-dollar balances. In mid-May the Board encouraged a further expansion of the role of amended Regulations D and M to reduce from other currencies in this market. Moreover, many 20 to 8 per cent the reserve requirements appli­ of the needs of traditional Euro-bond borrowers cable to certain foreign borrowings of U.S. are now being met by the medium-term Euro­ banks to the extent that they exceeded the ap­ currency market. □ plicable reserve-free base of each bank. In ad­ TABLE 1 dition, the reserve-free bases would be phased out. FEDERAL RESERVE RECIPROCAL CURRENCY ARRANGEMENTS On June 1 the Board requested the agencies, branches, and nonmember bank subsidiaries of In millions of dollars foreign banks to maintain voluntary reserves of Increase on Amount of Institution July 10, facility, 8 per cent against any increases above the May 1973 July 10, 1973 level in net funds obtained from banks abroad, including their head offices and other directly Austrian National Bank ........ 50 250 National Bank of Belgium .. 400 1,000 related institutions. The revision in the rules for Bank of Canada ......................... 1,000 2,000 National Bank of Denmark . 50 250 U.S. banks and the reemergence of a market Bank of England ....................... 2,000 incentive for U.S. banks to acquire Euro-dollars Bank of France ........................... 1,000 2,000 in lieu of purchasing Federal funds contributed German Federal Bank ............. 1,000 2,000 Bank of Italy ............................... 750 2,000 to a step-up in their borrowings from their Bank of Japan ............................. 1,000 2,000 Bank of Mexico ......................... 50 180 foreign branches. Euro-dollar rates, which had been surpris­ Netherlands Bank ....................... 200 500 Bank of Norway ......................... 50 250 ingly stable during the period of exchange-rate Bank of Sweden ......................... 50 300 Swiss National Bank ............... 400 1,400 disturbances in the spring and early summer, Bank for International began to escalate again late in July as excep­ Settlements: tionally high money-market rates in Germany Swiss francs/dollars ............. 600 Other authorized European exerted a strong pull on rate levels in other currencies/dollars ............. 250 1,250 money markets. Moreover, money-market rates in this country were also rising to very high Total ....................................... 6,250 17,980 levels. Throughout August, rates for 3-month Euro-dollars remained in the 11 lA to 11% per cent range. See p. 640for Tables 2-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES Ii^mllion^^Iol^ System Drawings, or repayments ( —) System swap swap Transactions with— drawings, 1973 drawings, Jan. 1, July 31, 1973 I II July 1973 National Bank of Belgium 415.0 6.0j 396.0 { -25.0 Bank of France 47'. 0 47.0 German Federal Bank J 104.6 220.51 220.5 1I -104.6 { Swiss National Bank 570.0 565.0 -.o Bank for International Settlements: Swiss francs 600.0 600.0 Total 1,585.0 273.4 1,828.4 Note.— Discrepancies in totals are due to rounding. TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings Drawings, or repayments ( —) Drawings on on Banks drawing on System System, 1973 System, Jan. 1, July 31, 1973 I II July 1973 Bank for International Settlements (against J 11.0 23.0 2.01 1 German marks) -11.0 -23.0 -2.0J 2.01 J 11.0 23.0 Total [-11.0 -23.0 — 2.0J TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues, or redemptions ( — ) Out­ Out­ Issued to— standing, 1973 standing, Jan. 1, July 31, 1973 I II July 1973 German Federal Bank 306.0 172.4 {-153.0 Swiss National Bank 1,232.9 1,384.1 Bank for International Settlements1 170.9 189.5 Total 1,709.8 1,746.0 153.0 1 Denominated in Swiss francs. Note.— Increases in amounts outstanding as compared with January 1 reflect valuation changes on April 30 and upon renewals of maturing securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates on Consumer Instalment Loans Interest rates on most key types of consumer Because rates are now stated on a uniform instalment loans at commercial banks and fi­ basis in each instalment loan contract and be­ nance companies have shown considerable sta­ cause Truth in Lending regulations require bility throughout the period of the current eco­ lenders to keep records of disclosure statements, nomic stabilization program. For example, rates it has become feasible for the major types of charged to new-car purchasers on contracts ac­ financial institutions that make consumer quired from dealers by the major automobile loans—commercial banks and finance compa­ finance companies moved within a range of only nies—to provide meaningful data on selected 27 basis points between August 1971 and July types of credit. 1973, according to a survey conducted by the Banks. At commercial banks, loans made Federal Reserve System. This stability is in directly to individuals account for the bulk of sharp contrast to the wide swings in interest the consumer credit extended. Therefore, the rates on most other kinds of credit during that rate survey for banks was confined to these 2-year period. loans. A representative panel of about 370 banks Information on interest rates and other terms was asked to provide the “most common rate” for selected types of consumer instalment credit as well as the range of rates charged during the has been collected by the Federal Reserve since first week of each month on five specified types late 1971 at the request of the President’s Com­ of consumer instalment loans: mittee on Interest and Dividends (CID). In 1971 1. New-car loans with 36-month maturities. aggregate measures of consumer finance rates 2. Mobile home loans with 84-month ma­ were virtually nonexistent, and so a new system turities. for collecting such information had to be estab­ 3. Other consumer goods loans with 24lished. month maturities. 4. Personal loans with 12-month maturities. AVAILABILITY OF RATE INFORMATION 5. Bank credit-card plans. Regular reporting of this information began in Reliable data on consumer instalment loan rates January 1972. Certain banks in the group, how­ have become more readily available in recent ever, had been requested to supply information years, in part because of the provisions of the on consumer loan rates for the period immedi­ Federal Truth in Lending Act. That act, which ately before and shortly after the August 15, became effective on July 1, 1969, requires dis­ 1971, freeze on prices, wages, and rents. Such closure of the effective annual percentage rate data have been used in this article to supplement of interest on most instalment credit contracts. those reported regularly. Before this legislation was enacted, finance Finance companies. In the case of finance rates, if disclosed, had generally been quoted companies, two survey approaches were used as either an “add-on” or a “discount” rate of in order to accommodate the structure of the interest—which approximated only about oneindustry and differences in data availability. One half of the effective annual percentage rate. was devoted to companies that specialize in auto Lenders were not required to inform consumer financing, and the other dealt with companies borrowers of the interest rates that they were specializing in nonautomobile credit. actually being charged. A major part of consumer automobile financ­ ing involves purchases of contracts from dealers Note.—David Hull and Linda Davidson of the by a limited number of national finance compa­ Board’s Division of Research and Statistics prepared this article. nies. Detailed records on each contract acquired Digitized for FRASER http://fraser.stlouisfed.org/ 641 Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 were maintained by the data processing facilities SURVEY RESULTS of these companies, and back data were avail­ Results of the various surveys have been pub­ able in consistent form beginning with June lished on a regular basis by the Board of Gov­ 1971. With special computer programming, ernors in a series of statistical releases.1 each of the major automobile finance companies Banks. The Federal Reserve monthly G.10 was able to provide weighted monthly averages release summarizes the “most common” rate of the customer finance rates for all contracts data for five major categories of consumer in­ acquired during the entire period on both new stalment loans made directly by commercial and used passenger cars and light trucks. In banks. It also provides rate information on addition, they supplied the weighted averages selected types of small business loans and on of contract maturities and the ratios of amounts agricultural loans. As Table 1 shows, monthfinanced to value. For new cars, amounts fi­ nanced are related to dealer cost, whereas for TABLE 1 used cars they are related to average wholesale FINANCE RATES ON CONSUMER INSTALMENT value. CREDIT AT COMMERCIAL BANKS Finance rates and other terms are collected In annual percentage rates on a bimonthly schedule for mobile home con­ tracts and other consumer goods instalment New Other automo­ Mobile consumer Personal Creditcredit contracts that have been purchased by Period biles homes goods loans card (36 mos.) (84 mos.) (24 mos.) (12 mos.) plans finance companies; similar data are collected for personal cash instalment loans made directly by 1971 Aug. 141......... 10.49 12.46 12.34 16.74 finance companies. Reports are obtained from 10.48 12.43 12.33 17.07 nearly all of the major independent companies, 1972 10.26 10.94 12.57 12.74 17.11 from most of the manufacturers’ affiliated com­ Feb.................... 10.20 10.88 12.50 12.72 17.13 10.12 10.61 12.43 12.60 17.20 panies, and from a number of small companies. 10.00 10.45 12.37 12.58 17.22 9.96 10.73 12.44 12.63 17.24 In order to reflect company specialization, 9.98 10.49 12.38 12.65 17.25 separate reporting panels have been established July................... 9.97 10.77 12.39 12.73 17.25 10.02 10.71 12.47 12.72 17.25 for each type of credit. Each panel accounts for 10.02 10.67 12.47 12.70 17.25 10.01 10.66 12.38 12.70 17.23 a substantial proportion of the volume of credit 10.02 10.85 12.44 12.63 17.23 10.01 10.69 12.55 12.77 17.24 extended. Rate and maturity data are reported 1973 by approximately 20 companies for purchased 10.01 10.54 12.46 12.65 17.13 Feb.................... 10.05 10.76 12.51 12.76 17.16 mobile home contracts, by about 40 companies 10.04 10.67 12.48 12.71 17.19 10.04 10.64 12.50 12.74 17.19 for other consumer goods, and by more than 10.05 10.84 12.48 12.78 17.22 10.08 10.57 12.57 12.78 17.24 85 companies for direct personal lending activ­ July................... 10.10 10.84 12.51 12.75 17.21 ity. Some companies are included in more than 1 Data derived from an experimental survey and are not strictly one panel. comparable with 1972-73. Because of the diversity of accounting and Note.—Rates are reported on an annual percentage rate basis as specified in the Federal Reserve Board’s Regulation Z (Truth in record-keeping procedures among nonautomo­ Lending). tive finance companies, the reporting companies to-month changes in consumer loan rates have were offered alternative procedures for supply­ been quite small, and the cumulative changes ing the needed data. Most large companies have since the inception of the stabilization program electronic-data-processing facilities that enable have been modest. These findings—although them to report aggregate weighted averages of admittedly for a relatively short period—tend rate and maturity data for all contracts acquired to support a common impression that consumers or loans made during a reporting month; smaller are not likely to encounter large cyclical swings companies generally prefer to provide individual contract data on worksheets. In many instances 1 Copies may be obtained by writing Publications Services, Division of Administrative Services, Board all loans are reported, but in others the data are of Governors of the Federal Reserve System, Washing­ for a sample of loans. ton, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RATES ON CONSUMER INSTALMENT LOANS 643 in interest rates on instalment loans. Therefore, by the CID to exercise special moderation and the chief rationing mechanism for consumer restraint in adjusting their lending rates on con­ lending does not seem to be rates, but rather sumer, home mortgage, small business, and nonrate terms and the availability of funds from farm loans. The other was that since April 16, lending institutions. 1973, commercial banks have been subject to Although the magnitude of the decline was special guidelines issued by the CID requiring quite small, consumer rates on bank loans ap­ that increases in rates on these types of loans peared to follow the downward course of other be cost-justified. market rates of interest between the summer of Finance companies. Table 2 shows sum­ 1971 and the spring of 1972. On the other hand, mary data on finance rates and other terms of increases in instalment loan charges lagged consumer instalment lending at finance compa­ considerably the upturn in rates in nonconsumer nies. Monthly figures for new and used cars, markets—which had begun during the summer although not published on the Federal Reserve of 1972 and has accelerated sharply this year. G.ll release until July 1972, are presented For example, from their 1972 lows through here from the beginning of the series in June early July 1973, rates on direct new-car loans 1971; bimonthly data for other types of lending rose only 14 basis points, whereas the bank by finance companies, which are shown on the prime rate on short-term loans to large busi­ Board’s J.3 statistical release, were first reported nesses rose 325 basis points. for March 1972. Two factors may have helped to hold down Average interest rates charged by finance rate increases on instalment loans during this companies have moved somewhat more irregu­ period. One was that lenders had been asked larly since 1971 than the most common rate on TABLE 2 FINANCE RATES AND OTHER TERMS ON CONSUMER INSTALMENT CREDIT AT FINANCE COMPANIES Customer rate Average maturity Average amount financed Loan/value (per cent per annum) (months) (dollars) (per cent) Period Automobile Other Per­ Automobile Other Per­ Automobile Other Per­ Automobile Mobile con­ sonal Mobile con­ sonal Mobile con­ sonal homes sumer loans homes sumer loans homes sumer loans New Used goods New Used goods New Used goods New Used 1971 June.............. 12.13 16.62 35.0 28.6 3,045 1,624 87 99 July................ 12.10 16.69 35.0 28.5 3,059 1,611 87 98 Aug................ 12.11 16.78 35.0 28.3 3,039 1,578 87 99 Sept................ 12.10 16.77 34.9 28.1 3,041 1,559 86 99 Oct................. 12.06 16.08 34.8 29.4 3,052 1,622 85 97 Nov................ 12.06 16.16 34.8 29.2 3,054 1,632 85 97 Dec................ 12.11 16.26 34.8 28.9 3,089 1,632 86 96 1972 Jan................. 12.07 16.17 34.9 29.2 3,014 1,645 86 97 Feb................. 11.99 16.27 34.9 29.2 3,018 1,645 87 98 Mar................ 11.92 16.32 12.57 i9.75 ii .‘ii 35.0 29.1 ioi.’i ii *6 iii 3 3,029 1,645 5,967 *382’ ’ 970 87 99 Apr................ 11.87 16.40 35.0 29.1 3,058 1,648 87 99 May.............. 11.86 16.47 ii.*29 i9] 3 i iiiii 35.0 29.0 104] i 21.7 3ii4 3,075 1,668 6,io6 *395 iioi6 87 100 June.............. 11.85 16.52 35.1 28.9 3,119 1,676 87 100 July................ 11.84 16.57 12.25 19.38 21.26 35.1 28.8 105.5 21.6 32.1 3,141 1,692 6,345 392 999 87 100 Aug................ 11.85 16.62 35.2 28.6 3,116 1,671 87 100 Sept................ 11.88 16.71 12.41 i9il5 2L05 35.0 28.3 ios! i iii 8 iii 4 3,101 1,629 6 i 540 *408* iioii 87 100 Oct................. 11.86 16.67 34.9 28.2 3,186 1,692 87 100 Nov................ 11.89 16.78 12^41 i8!90 2.1.22. 34.9 28.0 iiiio iii 8 iii 4 3,179 1,706 6,479 *404’ ‘ 984 87 100 Dec................ 11.92 16.87 34.9 27.9 3,208 1,729 87 99 1973 Jan................. 11.89 16.08 12.51 19.04 21.00 34.9 29.6 112.2 21.3 32.3 3,200 1,789 6,360 395 1,001 87 98 Feb................. 11.86 16.20 35.0 29.6 3,199 1,794 87 99 Mar............... 11.85 16.32 12.54 18.92 20.79 35.1 29.5 i i 3 .* 8 ii i i ’ 33.’i 3,184 1,787 6,433 *4oi’ i i 057 87 99 Apr................ 11.88 16.44 35.2 29.4 3,201 1,792 88 99 May.............. 11.91 16.52 12.'72 i 8.8 8 20i76 35.3 29.4 115.3 ii .‘9 34 ii 3,225 1,815 6^8 ’469’ i i io4 88 99 June.............. 11.94 16.61 35.4 29.3 3,283 1,837 88 99 July................ 12.02 16.75 35.4 29.1 3,329 1,820 88 99 Note.—Rates are reported on an annual percentage rate basis as specified in the Federal Reserve Board’s Regulation Z (Truth in Lending). Data on the amount financed exclude finance charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 consumer lending at commercial banks. Despite cations and contracts, the amount of service the greater irregularities, which may reflect to rendered, the relative convenience to the con­ some extent changes in the composition of loans sumer of alternative sources of financing, and made at finance companies, average rates at the competitive situation among lenders within these companies and at banks have shown much a geographic area. the same pattern—a moderate downtrend until late 1972 or early 1973 with some upward NONRATE DATA movement since then. It should be noted, however, that the levels Measurable differences in nonrate terms are also of rates reported for finance companies are not important to the levels of interest rates. Chief directly comparable with those for commercial among these are the maturity of the loan and banks. The series for banks measures only the the ratio of the loan to the value of the collateral. most common rate—which may involve a judg­ On contracts for new cars and for mobile mental factor—for direct consumer loans with homes—types in which the amount of the loan specified maturities. In contrast, the finance tends to be moderate in relation to the value company series for new and used cars, mobile of the collateral—finance company rates have homes, and other consumer goods relate to data been considerably lower than rates for used cars, on loan contracts that are made by sellers of for other consumer goods (mainly furniture and the merchandise and then sold to finance com­ appliances), or for personal loans—where the panies. In these cases, the summary statistics company’s exposure to loss is higher. Table 2, are derived from actual data on all contracts for example, shows that for used cars the purchased in each reporting month—except for average loan in July—$1,820, excluding fi­ those companies that employ contract-sampling. nance charges—is approximately equal to the Even where contract-sampling is used, the average wholesale value of the car. In other sample figures are adjusted to approximate words, the only effective downpayment that company totals in order to compile weighted- dealers have been obtaining on such transactions average industry aggregates. has been the margin between the wholesale There is a somewhat greater degree of com­ value and the retail price of the unit. On olderparability between banks and finance companies model used cars—where interest rates are sub­ in figures for personal cash instalment loans, stantially higher than the average for all used because in both of these instances only direct cars—the ratio of amount financed to wholesale lending is measured. Nevertheless, the rate value sometimes ranges as high as 140 per cent. concepts used are different; banks report the Immediate losses would result to the lender if most common rate whereas finance companies a buyer were to default on a typical contract report a weighted average. In addition, the ma­ for an older-model unit. turity that is specified in the reporting form for Instalment financing of mobile homes has banks—12 months—is much shorter than the grown substantially at both banks and finance actual weighted-average maturity of finance companies in recent years. In part, the growth company loans, which has ranged between 32 at finance companies has reflected the efforts of and 34 months. many large independent companies to divert Factors other than the disparity of the statisti­ their activities from the highly competitive au­ cal techniques cited above probably have an tomobile market, where profit margins are rela­ even more important bearing on differences in tively low. Over the period covered by the rate levels between commercial banks and fi­ survey, the average amount financed on mobile nance companies. The levels of acceptable bor­ home contracts has shown a rapid increase—to rower risk are thought to be quite dissimilar $6,618 in May—and the weighted-average ma­ between the types of financial institutions, and, turity has lengthened to 115.3 months. In view in addition, there are differences in the cost of of these changes total finance charges on the processing and handling consumer loan appli­ average contract, at a 12.72 per cent annual rate, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RATES ON CONSUMER INSTALMENT LOANS 645 are $4,865, or only $1,753 less than the average fective July 1 that State raised maximum allow­ amount financed. able loan amounts for all maturities up to and Rates on personal loans at finance companies including 36 months. As a result of this action, have tended to edge lower during the past year, it is now possible to obtain a 36-month personal reflecting to some extent a modest increase in loan for as much as $2,500. The previous max­ maturities and an 8.7 per cent expansion in the imum had been $1,400. Whereas the effective average amount financed. In States where rate on a $1,400 loan is still 20.21 per cent lenders are making personal loans at maximum per year, the rate on a $2,500 loan is 18.18 allowable rate ceilings, any State-authorized in­ per cent. Had the maximum loan been held crease in maturity or in size of loan may result constant and the term to maturity been length­ in a lower effective rate to the borrower, since ened, the effect would have been similar. Other legal rate maximums are often so scaled that States have made changes in maximum loan small, short-term loans carry higher rates than amounts and maturities that are reflected in the large, long-term loans. This is what happened recent downward movements in rates on per­ recently, for example, in New York State. Ef­ sonal loans. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit-Card and Check-Credit Rans at Commercial Banks A recent study of credit-card and check-credit • The amount of credit that banks advanced plans at commercial banks shows, among other under these programs came to $12.6 billion developments, that— during 1972—about a fifth of total consumer • Six of every ten commercial banks in the instalment credit extended by commercial United States provided credit-card services to banks. their customers at the end of 1972, and one in • Banks of all sizes participate in the creditten operated a check-credit plan. card industry; large banks are more likely to be principals—which hold credit-card bal­ TABLE 1 ances—whereas small banks usually operate as agents. Many large banks also operate check- BANK CREDIT-CARD AND CHECK-CREDIT PLANS: SUMMARY STATISTICS credit plans, but relatively few small banks do. • All of the States and three-fourths of the Data for December 31, 1972, unless otherwise indicated counties in the United States have banks with BANK CREDIT-CARD PLANS credit-card plans, but—despite recent substan­ tial increases—only a fifth of the counties have Number of banks with plans.............................................. 8,574 banks that offer check-credit plans. Single-plan banks........................................................................ 6,812 Principal banks.......................................................................... 930 • Extensive principal-agent arrangements Simple agent banks................................................................ 5,410 have been developed to extend the areas covered Participating agent banks.................................................... 472 by bank credit-card plans. Multiplan banks1.......................................................................... 1, 762 Principal for all plans............................................................ 29 • Most credit-card banks are associated with Simple agent for all plans.................................................. 1,533 Participating agent for all plans..................................... 9 one or both of the two major bank credit-card Principal bank and simple agent ................................... 59 systems, which provide for national interchange Principal bank and participating agent....................... 11 Simple and participating agent........................................ 121 of sales slips and cash advances. Credit outstanding (millions of dollars)........................... 5,408 Credit extended during 1972 (millions of dollars)... 10,145 Availability of new types of information in Retail volume............................................................................. 9,029 Cash advance volume............................................................ 1,116 the Bank Report of Condition for the end of Average sales draft during 1972 (dollars)..................... 19 Average cash advance during 1972 (dollars)............... 128 19721 has made possible this study of recent Cards outstanding (in thousands) ....................................... 55,547 developments in bank credit-card and check- Cardholder accounts (in thousands)................................... 33,870 credit plans.2 Accounts with balances (in thousands)........................... 20,586 Average balance per active account (dollars)............... 263 Merchant agreements (in thousands)....................... — 1,346 BANK CHECK-CREDIT PLANS2 1A special credit-card and check-credit supplement to that report provided statistics about operating ar­ Number of banks with plans.................................................. 1,621 Credit outstanding (millions of dollars)........................... 1,775 rangements among credit-card banks, bank affiliations Credit extended during 1972 (millions of dollars)... 2,517 with more than one plan, the role of banks of various Accounts with balances (in thousands)........................... 2,950 sizes in the credit-card industry, the geographic cover­ Average balance per active account (dollars)............... 602 age of this industry, and profitability of bank credit-card plans. This study focuses on developments in some of 11,718 banks had two plans and 44 banks were affiliated the major areas discussed in Bank Credit-Card and with three plans. Check-Credit Plans (Board of Governors of the Federal 2 Figures include some amounts arising from joint plans with Reserve System, July 1968). travel-and-entertainment card companies. 2 Detailed data in the form of supplementary tables are available on request from Publications Services, N ote.— David Seiders of the Board’s Division of Division of Administrative Services, Board of Gover­ Research and Statistics prepared this article. Kay Oliver nors of the Federal Reserve System, Washington, D.C. provided research assistance. 20551. Digitized for FRASER6 46 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

contact through their own credit plans, and RECENT GROWTH supermarkets, which often have mark-ups in­ Commercial bank credit-card and check-credit sufficient to cover the discounts of bank creditplans both expanded greatly over the 5 years card plans. ending 1972, as shown in Table 2. Of the two Over the same 5-year period, the two types types of bank revolving credit, card credit has of bank revolving credit have increased in im­ grown more in terms of both dollar amount and portance relative to all kinds of consumer in­ the number of banks holding credit.3 The rate stalment credit at commercial banks. Creditof growth in card credit has slowed in the last card and check-credit plans together rose from few years, following a tremendous expansion 9 per cent of total bank instalment extensions during 1969 and early 1970. The growth rate in 1967 to more than 20 per cent in 1972 (Table of check credit, which had been declining since 4). This change reflects, in part, the substitution 1968, has picked up recently. As a result, the of bank card and check credit for certain types amount of credit outstanding under each plan of instalment loans, particularly unsecured per­ increased by about 20 per cent in 1972—a year sonal or furniture and appliance loans. Some when bank loans of all types increased by 18 banks have actively encouraged such shifts by per cent. opening a credit-card account or overdraft plan Between 1967 and 1972, credit outstanding for qualified loan applicants, especially in the under bank credit-card and check-credit plans case of smaller loans, in order to cut down on expanded more rapidly than that under other handling expenses. selected kinds of credit plans with which they With the growth in bank credit-card and compete (Table 3). The gain in the banks’ share check-credit plans, consumers have assumed of this market reflects the fact that most types more control over the management of their debt. of retailers have supplemented or replaced their Both types of plans provide prearranged revolv­ own credit plans with bank credit-card plans. ing lines of credit instantly available to the The major holdouts from bank credit cards have borrower, and both allow the borrower to decide been large department stores, which have gen­ upon the pattern of debt repayment within broad erally preferred to maintain direct customer limits set by the bank. In many instances con­ sumers use credit cards as a convenient substi­ 3 There is no comprehensive historical information tute for cash or checks in transactions. About available on other measures of growth, such as agent one-third of all bank credit-card accounts are, banks, numbers of cards, accounts, and merchant agreements. in fact, repaid within the interest-free period. TABLE 2 BANK CREDIT-CARD AND CHECK-CREDIT PLANS Amounts outstanding and numbers of banks with credit outstanding, 1967-72 Amount Banks with credit outstanding (in millions of dollars) Date Credit Credit cards Check credit Check credit Both plans cards Dec. 31,1967........................... 828 522 390 732 101 June 30, 1968 ......................... 953 646 416 840 113 Dec. 31, 1968......................... 1,312 798 510 975 144 June 30, 1969 ......................... 1,705 993 699 1,061 212 Dec. 31, 1969......................... 2,639 1,081 1,207 1,128 370 June 30, 1970 ....................... 3,048 1,180 1,355 1,186 406 Dec. 31, 1970 ....................... 3,792 1,336 1,432 1,228 427 June 30, 1971 ....................... 3,895 1,359 1,514 1,282 450 Dec. 31, 1971 ....................... 4,490 1,462 1,535 1,387 474 June 30, 1972 ....................... 4,562 1,578 1,588 1,465 495 Dec. 31, 1972 ....................... 5,408 1,775 1.631 1,621 532 Digitized for FRASER 647 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 TABLE 3 RATES OF GROWTH OF SELECTED TYPES OF CREDIT PLANS Percentage change in amounts outstanding Type of plan 1968 1969 1970 1971 1972 1968-72 Bank revolving-credit plans: Credit-card .................................................... 58.4 101.1 43.7 18.4 20.4 553.1 Check-credit .................................................. 52.9 35.5 23.6 9.4 21.4 240.0 Selected nonbank credit plans: Travel-and-entertainment credit cards ............................................................ 24.6 44.7 10.9 8.2 24.2 168.9 Oil company credit cards ..................... 19.2 16.0 27.1 9.3 -2.3 87.6 Retail charge accounts1 ......................... -1.2 -.5 3.8 3.8 10.3 16.8 Noninstalment accounts only. Note.—Changes are calculated from amounts outstanding at beginning and end of year. TABLE 4 then holds all or part of the receivables gen­ erated by the customers of its agents. Agent EXTENSIONS ON CREDIT-CARD AND CHECK-CREDIT PLANS banks may be either “simple agents,” in which Volume, and share of total consumer instalment credit case the principal bank holds all the receivables, extended by banks or “participating agents,” which share in the financing of the accounts according to a prear­ Extensions Percentage of consumer (in millions instalment ranged ratio. of dollars) credit extended by banks About four-fifths of the credit-card banks Year operated as simple agents at the end of 1972. Credit Check Credit Check cards credit cards credit Of these, 5,410 were simple agents for a single card plan, and 1,533 for two or more plans 1968 .... 2,203 1,278 5.9 3.4 (Table 1). For the banks with card credit out­ 1969 .... 4,398 1,784 10.7 4.4 1970 .... 6,768 1,937 15.8 4.5 standing, almost two-thirds were principals and 1971 .... 8,275 2,076 16.2 4.1 1972 .... 10,145 2,517 17.1 4.2 the rest were participating agents. Most partici­ pating agents held 50 per cent or less of the outstanding credit owed by their cardholding BANK CREDIT-CARD AFFILIATIONS customers, and a very few held more than 75 A major development in the bank credit-card per cent. Few banks were principals for more industry over the past several years has been than one plan. the increased use of principal-agent arrange­ Interchanges. Most credit-card banks are ments. Another has been the growing partici­ now principals or agents affiliated with one or pation of banks in national credit-card inter­ both of the two major bank credit-card sys­ change systems, which have supplanted regional tems—National BankAmericard Incorporated networks. These two developments have facili­ and Interbank Card Association (which includes tated the expansion of the industry into all parts Master Charge). At the end of 1972, nearly 95 of the country and have given more consumers per cent of all bank card credit outstanding had ready access to some kind of bank revolving- been generated through cards carrying the credit arrangement. BankAmericard or Interbank trademark. Principal-agent arrangements. Banks may These systems do not issue cards or extend be affiliated with credit-card plans as principals credit, but they entitle affiliated banks to use or as agents. When they act as principals, banks their trademarks and provide services such as hold all the receivables generated by their card- interchange and authorization systems. The in­ holding customers. A principal bank may enlist terchange feature permits cardholders to make other banks to act as agents. The principal bank purchases from participating merchants any­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDIT-CARD AND CHECK-CREDIT PLANS 649 where in the country or to obtain cash at any Many of the small banks that do hold credit affiliated bank and have all such transactions act as participating agents of larger banks. Some consolidated in a single monthly bill. Almost others have chosen to be principals under an one-third of the bank card credit extended dur­ “association” form of organization in order to ing 1972 was from purchases made or cash minimize start-up and operating costs. Under advances obtained by cardholders outside the such arrangements, banks purchase accounting market areas of their home banks and was and data processing services from other banks processed through one of the interchange sys­ or from credit-card associations. The fees they tems. pay are based on the amount of credit-card activity. SIZE OF BANK AND SIZE OF PLAN Many small banks that have entered the credit-card field act as simple agents for two Prior to the rapid expansion of the last few or more plans, usually handling cards in both years, there had been concern about the com­ of the nationwide card systems. Multiplan ar­ petitive position of small banks in the creditrangements are an advantage to an agent bank card market. However, with the growth of the in attracting merchant accounts since merchants national credit-card systems and the increasing like to offer their customers as many plans as use of agency arrangements, small as well as possible but dislike having to maintain a sepa­ large banks have become active in this market rate account for each plan. At one time check-credit plans were thought TABLE 5 to provide an attractive alternative to credit BANKS WITH CREDIT-CARD AND CHECK-CREDIT cards, especially for the smaller banks that could PLANS, BY SIZE-OF-BANK CLASS, DECEMBER 31, 1972 not afford to operate a full credit-card plan. In practice, however, small banks have chosen to Percentage of all banks with— Percentage of become agents for one or more credit-card plans (to S ta iz l e d c e l p a o s s s i ts cre b d a it n - k c s a rd rather than operate a check-credit plan. Whereas in millions of Credit-card Check-credit with credit more than 2,800 small banks (deposits of less dollars) plans* plans outstanding than $10 million) were agent banks for creditcard plans at the end of 1972, fewer than 200 Less than 2 ........ 24.7 1.9 .5 small banks operated a check-credit plan. At the 2-5 ........................... 35.0 1.9 4.4 5-10 ....................... 54.1 3.9 7.9 same time, more than 75 per cent of those small 10-25 ..................... 75.8 10.1 14.2 banks that operate check-credit plans also have 25-50 ..................... 81.6 22.3 24.9 one or more credit-card plans. 50-100 ................... 85.5 33.7 41.1 100-500 ............... 82.4 50.8 63.2 Size Of plan. Only 1,631 of the 8,574 banks 500-1,000 89.4 67.0 88.1 affiliated with credit-card plans at the end of 1,000 and over 83.3 81.9 96.7 1972 held credit outstanding, ranging from a ♦Includes principals and agents. few thousand dollars to about $450 million. Amounts outstanding were highly concentrated Size of bank. Although commercial banks in the largest plans; the top 1 per cent of the of all sizes are affiliated with credit-card plans, plans held about 35 per cent of all card credit large institutions are more often principal banks, outstanding (Table 6). while small ones usually act as agents. This Concentration of amounts outstanding is also occurs because of heavy start-up costs and the quite pronounced in bank check credit. The consequent need to generate a large volume of lower half of the distribution of plans held only business. In the group of 72 banks with more 3 per cent of total check credit at year-end 1972, than $1 billion in deposits at the end of 1972, whereas the top 1 per cent of the plans held 60 were affiliated with plans, 58 held credit more than 40 per cent of the total. outstanding, and 54 were principals. But 99 per The concentration of amounts outstanding cent of credit-card banks with deposits of less under the two types of credit reflects a close than $2 million acted as agents (Table 5). relationship between size of bank and size of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 TABLE 6 market area. Furthermore, banks may not pro­ hibit their cardholders or merchants from sign­ CUMULATIVE DISTRIBUTIONS OF NUMBERS OF BANKS WITH CREDIT OUTSTANDING AND AMOUNTS ing up with other bank credit-card plans. Even OUTSTANDING, BY SIZE OF CREDIT-CARD OR banks offering the same bank credit card (for CHECK-CREDIT PLAN, DECEMBER 31, 1972 example, BankAmericard or Master Charge) In per cent may compete with each other for both merchant and customer accounts. Size of plan Bank credit cards Bank check credit Credit-card coverage. Credit-card plans are (credit now available in almost all localities of the in o u m ts i t l a li n o d n i s n g o f Number of C o r u ed t­ it Number of C o r u ed t­ it country. All of the States and 75 per cent of dollars) banks standing banks standing the counties have banks with plans, and some of the remaining counties have branches of Less than: .2 .................... 46.4 .8 65.7 3.7 banks with plans. However, coverage varies .5 ................... 61.7 2.3 80.0 7.7 1.0 ................... 71.3 4.4 86.0 11.5 considerably among States. In nearly a third of 5.0 ................... 86.9 15.1 95.9 32.1 the States plans are available in 90 per cent or 10.0 .................... 93.1 28.4 97.8 43.7 20.0 .................... 96.3 42.2 99.0 58.5 more of the counties in the State, but there are 50.0 ................... 98.9 64.2 99.7 78.9 All plans ... 100.0 100.0 100.0 100.0 some States with credit-card operations in no more than 20 per cent of the counties. There are also marked differences among States in the plan. With credit cards, another contributing proportion of affiliated banks that actually hold factor is the agency arrangements whereby card credit. principal banks hold all or part of the amounts State laws covering branch banking appear outstanding generated by agents. to have influenced the development of bank credit-card plans. While branching regulations GEOGRAPHIC SCOPE have apparently had little effect on the propor­ Principal banks have been able to expand the tion of banks that are affiliated with credit-card market areas served by their credit-card plans plans, they have influenced the incidence of through the use of agency networks, and con­ agency arrangements (Table 7). In States where sumers in almost every part of the country now statewide branching is permitted, a much larger have bank credit-card plans available to them. proportion of credit-card banks operate as Fewer areas of the country have banks with principals, since branching permits principal check-credit plans, but coverage appears to be banks to reach a large market area without improving. entering into contract arrangements with agent Market areas for bank credit-card plans. banks. In general, banks are not prohibited from offer­ It is often assumed that State laws governing ing credit-card services directly to merchants the maximum interest rate that may be charged and consumers outside their normal marketing cardholders can—depending on the level estab­ areas. However, in practice, principal banks lished—influence the development of the have often found it more practical to extend their credit-card industry. Most States permit banks credit-card operations through agent banks. to charge cardholders annual percentage rates About seven-eighths of all credit-card-agent up to 18 per cent, but in 1972 there were 11 banks were located in different counties from States that had ceilings of between 10 and 15 their principal banks at the end of 1972. Fur­ per cent. Even in these States, however, card thermore, about a sixth of the agents were plans had been expanding. Almost half of the located in different States from their principals. banks in the 11 States were affiliated with Additional banks may readily enter market credit-card plans and a tenth of these were areas where plans are already being operated. principals. In fact, in unlimited branching The national credit-card systems will license a States, the proportion of credit-card banks act­ card-issuing bank even if another bank is al­ ing as principals is larger in States where the ready offering the same type of card in that rate ceiling is less than 18 per cent than where Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDIT-CARD AND CHECK-CREDIT PLANS 651 TABLE 7 sota—a State with a 12 per cent ceiling—re­ cently instituted such a fee. BANK CREDIT-CARD PLANS RELATED TO RATE CEILINGS AND EXTENT OF BRANCHING PERMITTED Principal banks in high-interest-rate States IN STATE, DECEMBER 31, 19721 have in some cases signed banks in low-rate States as credit-card agents. About one-sixth of Banks with Per cent of all agent banks are located in States other than credit-card plans3 credit-card States with— Nu S m ta b t e e r s 2 of Per cent of op b e a r n a k ti s n g the principal, and one-fifth of that number are Number all banks as affiliated with principals in higher-rate States. in class principals In such situations, the interest rates charged the customers of the agent bank have sometimes Unit banking ___ 15 4,696 61.1 5.2 Ceiling < 18 been those of the principal bank. However, per cent ___ 4 111 43.7 4.0 Ceiling > 18 problems have arisen in connection with some per cent ___ 11 3,919 66.3 5.4 of the out-of-State agent arrangements. A fun­ Limited damental issue is the site of the loan transaction branching .. 16 3,014 61.5 18.0 Ceiling < 18 in the case of credit-card purchases. Some States per cent ___ 3 637 50.5 11.9 Ceiling > 18 adhere to a sales finance theory, under which per cent ___ 13 2,377 65.3 19.6 credit is granted by the merchant at the time Statewide of the transaction. Other States subscribe to a branching .. 2Q 864 64.6 28.0 Ceiling <18 direct loan theory and specify that credit is per cent ___ 4 120 66.3 33.3 extended directly by the principal bank. Ceiling > 18 per cent ___ 16 744 64.4 27.2 Check-credit coverage. Check-credit plans All States < 18 are not nearly so widespread as bank credit-card per cent ___ 11 1,534 47.6 9.6 plans. Only one-fifth of all counties in the All States > 18 per cent ___ 40 7,040 65.8 12.5 country now have banks that offer check credit. ^he rate ceiling assigned to a State and expressed as an Early interest in check-credit plans was centered annual percentage rate is the top bracket rate applicable to mainly in the Northeast and Far West. At the purchases of goods and services on bank cards at the beginning of 1972. This rate either is contained in legislation specifically end of 1967, most of the banks operating plans regulating bank card programs or is the maximum rate allowed in States where instalment loan acts, retail instalment sales were located in these areas, and the geographic acts, small loan laws, or Comptrollers’ opinions apply. 2Includes the District of Columbia, structure of the industry has not changed greatly includes principals and agents. since that time. However, there appears to be a resurgence of interest in check-credit plans. it is not. This would suggest that plans of The number of banks with such plans rose by sufficient size can operate successfully despite 156 in the second half of 1972—the largest the lower permitted interest return. 6-month increase on record. In this connection it should be noted that State branching and interest rate regulations finance charges are not the only source of in­ do not appear to have been major factors in the come for credit-card plans. Nearly one-fourth development of bank check credit. A bank need of the income, on the average, comes from not have branches to operate an overdraft plan merchant discounts, which may differ greatly profitably since a large volume of credit exten­ from State to State. In low-rate States, merchant sions is not required to cover the relatively small discounts may be high enough to make income start-up and fixed costs involved. The interest to the plan from all sources about the same as rate ceilings covering check-credit plans are the in the high-rate States. In this case, the finance same in most States as for bank credit cards, charge might be included in the price of the although some States have lower ceilings for goods, with cash buyers helping to subsidize the former. And while merchant discounts are credit-card plans. Another possible source of not involved in check-credit transactions, there income is an annual membership fee charged is usually no interest-free period. Also, checkcardholders. Despite widespread discussion of credit plans generally provide for advances in this source of income, banks have generally fixed increments—most often $100—when the avoided using it, though a large bank in Minne­ borrower overdraws his account by as little as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 $1, and additional amounts are extended in the TABLE 8 same fixed increments up to the credit limit. AVERAGE RATES OF RETURN ON SELECTED TYPES Interest may be incurred on the entire balance, OF BANK LOANS, 1972 Banks grouped by size of total deposits even if the borrower does not use it all. Per cent per annum PROFITS AND LOSSES ON BANK Size of bank CREDIT-CARD PLANS Type of loan Credit-card plans have posed a number of oper­ Les $ s 5 0 th an $50 m to illion Ov m er il li $ o 2 n 00 ational problems for banks. In order to .generate million $200 million a sufficient volume of business for a profitable Credit-card— operation, a card-issuing bank must attract Gross yield ... 18.5 19.3 19.7 enough merchants to make it worthwhile for Net yield -2.9 -1.7 .7 individuals to accept and use the credit cards Instalment— Gross yield ... 10.7 10.3 10.2 while simultaneously attracting enough card­ Net yield ........ 3.3 3.1 3.0 holders to interest merchants in the plan. In All types— order to establish a cardholder base rapidly, Gross yield ... 8.3 8.0 7.8 Net yield 2.5 2.5 2.4 some banks have used mass mailings of unsoli­ cited cards. This was true particularly in the Note—From the Federal Reserve Functional Cost Analysis; latter part of the 196Q’s. Widespread credit and 1972 Average Banks, based on data furnished by 945 partici­ pating banks in 12 Federal Reserve Districts. Yields are calcu­ fraud losses resulted in some instances, how­ lated as ratios of gross or net income to average outstandings for the year, and are expressed as percentages. ever, and in 1970 the Congress passed legisla­ tion prohibiting unsolicited distribution of credit cards. pating in the Federal Reserve Functional Cost Development of national credit-card inter­ Analysis was close to zero. Rising costs of funds changes, increased use of agent banks, and to banks squeeze the profits of bank credit-card greater public interest in credit cards have sim­ departments because rates charged cardholders plified the solicitation of merchants and card­ are generally at State-imposed ceilings. holders for principal banks. Moreover, the 1970 The performance of bank credit-card plans, legislation mentioned above limits the legal lia­ however, appears to improve with experience. bility of an individual cardholder to $50 in the Heavy start-up costs may be recovered within case of loss or theft, and this feature has facili­ a few years after a plan is begun. More efficient tated public acceptance of credit cards. accounting, authorization, and billing tech­ Despite the increased use of bank credit niques may be introduced, inactive accounts and cards, profits have been low or nonexistent for low-volume merchants may be dropped, and many plans. According to Federal Reserve data, credit limits may be raised for established users. average gross rates of return were much higher Gross arid net charge-offs also tend to decline in 1972 on bank credit-card plans than on other as the length of time a bank has operated a selected categories of bank loans, but average credit-card plan increases (Table 9). As experi­ net rates of return were lower (Table 8). ence is gained, banks may improve their tech­ Operating expenses—the costs of making, niques for selecting cardholders and merchants carrying, and collecting credit-card loans—ac­ and for managing accounts. Furthermore, fraud counted for the major part of the difference losses can be lessened by developing better between gross and net yields on credit-card systems to detect stolen or counterfeit cards. plans; such expenses accounted for almost 70 Even so, fraud losses currently account for an per cent of gross income. Net charge-offs were estimated 15 to 20 per cent of total charge-offs also relatively high—about 10 per cent of gross on bank credit-card plans. income—on credit-card plans. After allowing Not all of the benefits to a bank from operat­ for the cost of money, the 1972 average net ing a credit-card plan show up in the revenues rate of return for the credit-card plans partici- generally allocated to the credit-card function. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDIT-CARD AND CHECK-CREDIT PLANS 653 TABLE 9 CHARGE-OFF RATES ON BANK CREDIT-CARD PLANS BY YEAR BANK ENTERED CREDIT-CARD FIELD Banks with credit outstanding, December 31, 1972 Amount outstanding Charge-off rate, 1972 Number Year entered1 of banks Percentage Millions of of total Gross Net2 dollars card credit outstanding 1966 and before 125 1,747 32.3 2.39 1.86 1967-68 ............... 352 1,498 27.7 3.10 1.96 1969 ....................... 752 1,763 32.6 3.76 2.65 1970 ....................... 204 330 6.1 5.25 4.51 1971 ....................... 106 54 1.0 6.38 4.92 1972 ....................... 92 16 .3 8.13 6.35 100.0 All banks — 1,631 5,408 3.23 2.32 1Date from which a card program has remained continuously in effect. 2Net charge-offs are gross charge-offs less recoveries. Note—The charge-off rates are calculated as ratios of gross and net charge-offs for 1972 to average credit-card outstandings for the year, and are expressed as percentages. For banks starting in 1972, the partial year flows have been converted to annual rates. Credit-card plans provide a means of penetrating to play an integral part in the electronic funds new consumer and merchant markets and transfer system that is now emerging. Some thereby increase opportunities for promoting banks have instituted card plans principally to other banking services. Furthermore, by shifting be in a position to take advantage of such a small consumer loans to revolving-credit ac­ system. Nationwide credit-card authorization counts, some banks have reduced the over-all and clearing systems, possibly linked to pointcost of making consumer loans. of-sale terminals, may provide for transfers of Finally, indirect benefits may accrue over the funds for a wide range of transactions and over longer run because bank credit cards are likely large geographic areas. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Objectives and Responsibilities of the Federal Reserve System Following is an excerpt from an address by to the public beyond what the Government col­ Arthur F. Burns, Chairman, Board of Gover­ lected in taxes. Governmentally sponsored cor­ nors of the Federal Reserve System, at dedica­ porations, such as the Federal National Mort­ tion ceremonies for a new building at the Fed­ gage Association and the Federal home loan eral Reserve Bank of Minneapolis, September banks, have also gone heavily into debt and 8, 1973: poured out additional billions that are excluded from the budgetary totals. In the fiscal year just ended, the net borrowing by Federally spon­ ☆ ☆ ☆ ☆ ☆ sored agencies exceeded $11 billion. The continuance of large Federal deficits at Monetary policy in this country carries a a time of rapid resurgence of the economy has heavy burden of responsibility for the mainte­ inevitably stimulated private spending and ag­ nance of economic stability. Actually, our Na­ gravated upward pressures on the level of tion sometimes expects more from the Federal prices. In fact, our economy is suffering at Reserve than we can reasonably expect to ac­ present from stronger inflationary pressures than complish in view of the imperfect tools with at any time since the outbreak of the Korean which we work and the complex problems that war. Prices have risen sharply since the begin­ our Nation faces. ning of this year, and they are continuing to During the past decade our Nation has gener­ rise. ally experienced prosperity, but the prosperity In view of the huge expansion in production has been marred for many of our people by and employment that we have experienced dur­ persistent and rapid inflation. Many factors are ing the past year, it would have been difficult responsible for this unhappy development to avoid an appreciable upward movement of —among them, a protracted and unpopular the price level even with a balanced Federal war and abuses of market power by some of budget. But as the Fates would have it, several our business firms and trade unions. But I be­ unusual factors combined to impart a new di­ lieve that the most important underlying cause mension to our inflationary problem this year. has been the looseness of our Federal fiscal First, the devaluation of the dollar not only policies. Federal spending has been rising with resulted in higher prices of imported goods, but disconcerting speed during the past decade. also affected our price level by leading to some Despite the costly war in Vietnam, new gov­ substitution of domestic for foreign products and ernmental programs have been enacted at a by imparting a sharp impetus to foreign demand dizzy pace, almost without regard to their cost for our products. Second, our economic expan­ or to the state of public revenues. sion has been accompanied by rapid expansion Deficits have therefore mounted in both good in virtually every other industrial country. The years and bad. In fiscal 1965, a year of rapidly worldwide demand for capital equipment and advancing prosperity, the Federal deficit came industrial materials—goods for which the to $1.6 billion. In fiscal 1973, a similarly pros­ United States is a major supplier—has therefore perous year, the deficit amounted to $14.4 bil­ burgeoned. Third, our current ability to expand lion. In three of the past six years, the deficit output of basic industrial materials is narrowly came close to—or actually reached—$25 bil­ limited—in large part because investment by lion. Nor do even these figures tell the full story producers of key materials has been held back of how much Federal money has been paid out in recent years by unsatisfactory profits and new Digitized for FRASER 655 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 environmental controls. Fourth, bad weather in deserve more careful consideration than they a number of countries severely restricted agri­ have yet received. If the needed reforms come cultural production last year—at the very time too late to help in the present difficulty, they when the demand for foodstuffs was rising rap­ can still serve the larger purpose of stabilizing idly in response to the worldwide expansion of housing finance over the long future. Mean­ incomes and employment. The concatenation of while, the several housing agencies, which have these special factors has played a decisive role been softening the impact of credit shortages in driving up prices this year. on homebuilding activity, are in a position to The inflationary problem we are dealing with continue to do so. And the Federal Reserve today is therefore quite complex, and we must System, as the lender of last resort, will, of be prepared for a further rise in prices in the course, honor its obligation to provide emer­ months ahead. The resulting damage can be gency credit in the event of need. I might add minimized, however, if aggregate monetary de­ that it appears unlikely that such a need will mand is restrained. The inflationary forces that arise. now plague us will then have a better chance The time will surely come when monetary to burn themselves out. policy can again be less restrictive, but that time The Federal Reserve is pursuing a course of has not yet arrived. At present there is no real monetary policy that is designed to minimize alternative to a restrictive monetary policy. To the threat of excess demand by restricting the be sure, if we permitted money and credit to growth of the monetary and credit aggregates. expand at a more rapid pace, short-term interest Monetary policy began to move in this direction rates would decline for a brief period. But in in the spring of 1972, but at a pace that may so doing we would be adding fuel to the infla­ appear in retrospect to have been too gradual. tionary fires now raging. Before very long in­ In any event, restrictive actions have multiplied terest rates would rise again, and probably well in both frequency and impact in recent months. beyond their present level, as both lenders and By now even skeptics in the financial commu­ borrowers adjusted to the quickened pace of nity should be convinced that the Federal Re­ inflation. The simple and inescapable truth is serve will not flinch in its determination to that inflation and high nominal interest rates go moderate substantially the pace at which money together. and credit supplies have been expanding. The Federal Reserve must therefore persevere A restrictive monetary policy cannot be car­ in its present policy. Fortunately, there are some ried out without causing difficulty for some signs that our efforts are bearing fruit. For business firms or households that seek additional example, the narrowly defined money supply— credit. The homebuilding industry, in particular, that is, currency plus demand deposits—grew is very sensitive to the level of interest rates at an annual rate of 6 per cent during the first and the availability of mortgage money. In view half of 1973, compared with a growth rate of of the outflow of funds from thrift institutions IV2 per cent during 1972. In recent weeks the into higher-yielding market instruments, mort­ growth rate has slowed further. During July and gage commitments have been diminishing, and August the money stock rose at an annual rate this is bound to affect homebuilding adversely of only about 2 per cent. These signs of better in the months immediately ahead. control over the growth of the money supply Early in 1970 anticipating precisely the kind are encouraging, but the Federal Reserve will of development that is now under way in the need more convincing evidence on moderation housing field, the Board of Governors of the of the monetary and credit aggregates before it Federal Reserve System undertook a compre­ can responsibly relax its pressure on the mone­ hensive study of the ways in which the chronic tary brake. fluctuations of housing construction may best be Of late there have also been encouraging moderated. Two years later, in March 1972, the developments with respect to our international Board presented its report to the Congress. The balance of payments. Our competitive position Board’s recommendations for legislative action in world markets has dramatically improved Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE OBJECTIVES AND RESPONSIBILITIES 657 over the past year, and the deficit in our trade ments imposed by the Federal Reserve to the accounts that was for some time a source of System’s member banks, apart from being in­ great concern has now all but vanished. In fact, equitable, weakens monetary control. All de­ we enjoyed a modest trade surplus in the month mand deposits are a part of the Nation’s money of July, and the outlook for our exports con­ supply, and they should be treated equally from tinues to be very promising. These develop­ the standpoint of reserve requirements. The dif­ ments have not gone unnoticed in the financial ficulties already imposed on monetary policy as world, and the dollar has strengthened markedly a result of the unequal treatment of demand in recent weeks in foreign exchange markets. deposits at member and nonmember banks will Intervention in these markets by the Federal become more acute in the years ahead in the Reserve has helped to bring about this turn in absence of corrective legislation. The Federal the dollar’s value. However, a more basic factor Reserve must therefore urge the Congress to in the recent improvement in the value of the give this problem its earnest consideration. The dollar relative to other currencies is the increas­ solution that we shall propose will not infringe ing recognition abroad that the American people in any significant way on our dual banking are determined to bring inflation under control system, and yet it will enable the monetary and that they will support any reasonable policy authority to achieve more precise control over that promotes this objective. the monetary aggregates. Governmental efforts to stabilize the general I need hardly say, in closing my remarks, price level must therefore persist until the forces that there is much unfinished business to attend of inflation are fully dissipated. Since direct to in our struggle to control inflation, to manage controls over wages and prices in the present the Nation’s money supply, to stabilize housing environment can provide only limited benefits, construction, and to deal with a host of other primary reliance in this struggle must be placed economic and financial problems. I am optimis­ on monetary and fiscal policies. tic, however, about the future of our Nation’s Clearly, monetary policy must play a major economy. Progress in moving toward equilib­ role in the fight against inflation, but we should rium in our international payments accounts has not expose the economy to unnecessary risks been encouraging. So also has the recent evi­ by overburdening this tool of policy. Additional dence of moderation in the growth of monetary restraint through fiscal policy, in the form of aggregates. And agricultural production in this reduced Government spending or increased region of our Nation and elsewhere is now on taxes, would be helpful even now. Particularly the increase, offering hope that food supplies appropriate would be fiscal measures that could will soon be more plentiful. be quickly reversed if economic activity began The principal source of my optimism, how­ to weaken, as sometimes happens after a pro­ ever, lies not in these general indicators of longed period of economic expansion. progress in dealing with economic and financial We also need to improve our instruments of problems, but in my faith in our Nation and monetary policy to gain better control over the its good people. Our country has been blessed monetary aggregates. More precise management with rich natural resources and our people have of money and credit supplies could be achieved been endowed with the vision and energy to if the reserve requirements that apply to demand strive for a better life. Let us dedicate the new deposits of Federal Reserve member banks were Federal Reserve building today to the brighter extended to all commercial banks. future that is the hope and dream of every The present limitation of the reserve require­ American. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement by Arthur F. Burns, Chairman, early as 1971, and they are now almost twice Board of Governors of the Federal Reserve as high, relative to sales, as they were 2 years System, before the Committee on Banking and ago. Vacancy rates for rental units have also Currency, House of Representatives, September crept up in many sections of the country, and 12, 1973. they may well increase further as the completion of large apartment buildings now under con­ I appreciate the opportunity to discuss with you struction adds to available rental units. the problems that have developed of late in the Besides outstripping the basic demand for markets for mortgage credit and housing. housing, the boom in residential building played Early this year, as the committee is well havoc with costs and prices. Prices of lumber, aware, building permits for private housing plywood, and other building materials skyrock­ units began to decline, and so did the number eted, land values soared, and wages in the of new housing starts. With mortgage credit construction industry rose for a time at an annual supplies shrinking, a significant further drop in rate of about 10 per cent. residential building activity may lie ahead. Of late construction costs have come under Recent developments in housing finance are better control. Thanks to the vigilance of the a matter of concern to the Federal Reserve as Construction Industry Wage Stabilization Com­ well as to this committee. A practical solution mittee, increases of wage rates have moderated to the recurring problems of housing finance will appreciably. Upward pressure on prices of be found only if the forces presently operating building materials, especially lumber and to depress residential construction are clearly plywood, has also diminished in recent months. understood. Let me therefore try to put recent Nevertheless, the median price of new single­ events in perspective. family homes is now more than a third higher In the early months of 1970 activity in the than in October 1969. residential building industry began to recover By late 1972 overbuilding and high prices had from its slump in 1969. This upturn was the set the stage for a downturn in residential con­ beginning of a surge in housing activity that struction. The ensuing decline in housing starts lasted for 3 years, and proved to be the strongest got under way long before supplies of mortgage homebuilding boom of the postwar period. In credit had begun to affect homebuilding ad­ the year 1972 alone, construction was started versely. on 2.4 million conventional dwelling units; in One factor that contributed to overbuilding addition, nearly 600,000 mobile homes were during the housing boom was the liberal supply produced. Both in 1971 and 1972 the total of mortgage credit. The specialized mortgage production of new dwelling units exceeded by lending institutions—that is, the savings and a substantial margin the national housing goals loan associations (S&L’s) and the mutual sav­ established by the Congress in 1968. ings banks—were well supplied with loanable The booming volume of residential con­ funds over a prolonged period. Their total de­ struction could not long be sustained by the posits, which had risen 7 per cent in 1970, basic demand for housing. During the year increased 17 per cent in 1971 and 17 per cent ending last March, 1.6 million new households again in 1972. Inflows of consumer savings were established in the United States. The deposits at commercial banks also rose rapidly, number of new housing units produced during from 11 per cent in 1970 to an average of 15 that year, however, was nearly twice as large. per cent in 1971 and 1972. Inventories of unsold houses began to rise as These three classes of depositary institutions 658 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

together added $11 billion to their residential the direct effects that stem from the addition mortgage portfolios in 1970. As their deposit of Federal borrowing to other credit demands. inflows moved up, their net acquisition of mort­ These deficits have contributed powerfully to the gages rose to $30 billion in 1971 and then to mounting pressures in financial markets since $43 billion in 1972. In the second quarter of the spring of 1972. this year these institutions were still acquiring During this period monetary policy has toler­ new residential mortgages at an annual rate of ated the higher interest rates that resulted from $48 billion. the rapidly rising demands for credit. Supplies Mortgage credit supplies during this period of money and credit were allowed to expand, were so large that, despite soaring demands for but not by enough to satisfy each and every mortgage credit, interest rates on mortgages demand for credit at the going level of interest actually declined between the late summer of rates. If a more expansive monetary policy— 1970 and the spring of 1972 and then remained aimed primarily at holding down interest quite stable over the rest of 1972. rates—had been followed, the resulting increase Developments in other financial markets last in supplies of money and other liquid assets year, however, carried an ominous significance would have added enormously to the potential for housing finance. In the spring of 1972 for inflation. Before long, as both lenders and short-term market interest rates began to rise, borrowers adjusted their behavior to the quick­ and their upward movement accelerated toward ened pace of inflation, interest rates would have the close of the year. By now, as this committee risen sharply despite the outpouring of newly knows, interest rates on most short-term market created money, and by now they would proba­ securities have risen above the previous high bly be even higher than they in fact are. Inflation peaks of late 1969 or early 1970. Long-term and rising interest rates go together, and both interest rates have also advanced, but their rise lead to serious difficulties for the housing in­ has been less pronounced. dustry. The fundamental reasons for this rise in in­ Signs of developing problems in housing fi­ terest rates should, I think, be evident to any nance became evident early in 1973 when the thoughtful observer. With economic expansion inflow of consumer savings to commercial banks proceeding at a vigorous rate since late 1971, began to shrink. In the second quarter of the the accompanying demand for credit has been year, savings inflows to nonbank thrift institu­ very strong. The revival of fears that inflation tions also weakened, falling to an annual growth has become endemic served further to enhance rate of 9 per cent, compared with 17 per cent the demand for credit. These developments ac­ in 1972. Mortgage lenders, therefore, became count for the mounting pace of private credit less energetic in committing funds for housing, demands. Between the first half of 1972 and and interest rates on mortgage loans began to the first half of 1973 the rate of private credit advance. expansion increased by more than a third, or The threat to homebuilding activity posed by about three times as fast as the percentage such developments becomes all the more serious increase in the gross national product. when residential construction is beginning to Continuing large drains on the money and weaken as a result of overbuilding, as was the capital markets by the Federal sector added, of case in early 1973. By the middle of this year, course, to the upward pressure on interest rates. housing production thus appeared to be on the Total borrowing by the Federal Govern­ verge of yet another downswing in the feastment—including the Federally sponsored credit and-famine cycle that has long characterized this agencies—amounted to almost $33 billion in industry. fiscal 1973. It is well to bear in mind that These recurring cycles have been of great Federal deficits augment private disposable in­ concern to the Board of Governors of the Fed­ come and thereby tend to increase private eral Reserve System. You may recall that in spending and borrowing. The impact of Federal my testimony before this committee on February deficits on interest rates therefore goes beyond 7, 1970—my first appearance before a congres­ Digitized for FRASER 659 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 sional committee as Chairman of the Federal mended that consideration be given to enabling Reserve Board—I indicated that the Federal all depositary institutions to offer mortgages Reserve staff would undertake a thorough search with variable interest rates, subject to regulatory for ways of moderating the short-term swings safeguards. in the availability of mortgage credit. Upon The Board hopes that its report will assist the completion of that study, the Federal Reserve Congress in its search for ways to deal with Board submitted its report to Congress on March the problem of cyclical instability in housing 3, 1972. Our most important recommendation finance. But the necessary ameliorative meas­ was a proposal for a more flexible use of fiscal ures have not yet been adopted. As a result, policy to smooth out the fluctuations in business the Nation’s housing industry may now have fixed investment so that dependence on credit to bear once again a disproportionate share of restraint to achieve economic stability could be the burden of policies to moderate the expansion reduced. Other proposals were aimed at stabi­ of aggregate demand. Fiscal policy has not yet lizing the flow of funds to financial interme­ been made a flexible tool for economic stabili­ diaries. zation. And monetary and credit policies are still While the Board’s report was submitted at serving as the primary line of defense against a time when commercial banks and other thrift excess aggregate demand although we know institutions were enjoying strong deposit gains, from experience that general monetary restraints it pointed out that these inflows would probably affect housing more than other industries. shrink when yields on market securities again As recent experience again indicates, our rose. The Board therefore urged the Congress depositary institutions, particularly the S&L’s, to take the opportunity afforded by conditions have great difficulty in coping with rising market then existing in the mortgage and housing fields interest rates. Over the past several years, the to strengthen the ability of our Nation’s deposi­ structure of deposits at the S&L’s has changed tary institutions to function effectively in an substantially. Nearly all of the growth in their environment of fluctuating interest rates. savings capital has come from special deposits The fundamental reason why the stream of with a fixed term to maturity. A large part of savings into the specialized mortgage lending these special deposits, however, have rather institutions—especially the S&L’s—dries up short maturities. By actively encouraging periodically lies in the asymmetry between their growth of such accounts, it appears that the assets and liabilities. Their assets consist chiefly S&L’s have attracted a substantial amount of of mortgages with a long average life, and their interest-sensitive funds, thereby aggravating earnings rates are therefore rather inflexible. their problem of deposit instability. Their liabilities, on the other hand, consist of The Federal Reserve has been troubled by this passbook accounts that in practice are payable development for some time. During the spring on demand or of time deposits with relatively of this year some depositary institutions began short maturities. These forms of savings are losing funds to market securities, on which rather close substitutes for short-term market interest rates were rising rapidly, and it seemed securities, on which yields are highly variable. likely that the diversion of individual savings When yields on competing market instruments to market instruments would accelerate after the rise, a strong tendency develops to divert sav­ midyear interest-crediting period. More freedom ings from the thrift institutions to market se­ for depositary institutions to bid for funds thus curities. became urgent. On July 5 the Federal Reserve The Board’s report set forth proposals to deal joined with the other regulatory agencies to with this problem. To achieve greater flexibility allow commercial banks and other thrift institu­ in the earnings of S&L’s so that they could tions to offer higher yields on consumer-type compete more effectively against market securi­ time and savings deposits. ties, the Board suggested that perhaps 10 per The new ceilings on interest rates paid by cent of their earning assets might be placed in commercial banks were again set at lower levels consumer loans. More importantly, we recom­ than for other thrift institutions. In the case of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 661 S&L’s and mutual savings banks, the largest the Federal Deposit Insurance Corporation increases in ceiling rates were made for special (FDIC) responded promptly to this development accounts—that is, accounts other than passbook by limiting the amount of such deposits that a savings. This approach was adopted to enable commercial or mutual savings bank may accept these institutions to utilize the limited increase to 5 per cent of its total time and savings of their earnings in recent years to best advan­ accounts. A similar restriction had previously tage in attracting or holding on to savings cus­ been imposed on S&L’s by the Federal Home tomers. Loan Bank Board (FHLBB). At the same time, ceiling rates on consumer- Other steps have also been taken recently by type certificates of deposit (CD’s) with maturi­ the regulatory agencies to achieve uniformity ties of 4 years or longer, when sold in denomi­ among competing financial institutions with re­ nations of $1,000 or more, were suspended for gard to penalties for early withdrawal of time all depositary institutions. The objective of this deposits, and to ensure that savers who may action was to increase the ability of these insti­ wish to switch into higher-yielding CD’s under­ tutions to compete with market instruments and stand how such penalties will affect their interest at the same time achieve greater stability of earnings. deposits. These regulatory actions have clearly im­ In taking these several steps, the Board and proved the ability of depositary institutions to the other regulatory agencies kept in mind the compete with market securities for the savings need for greater equity for savers. Whatever of individuals. The further rise of market inter­ advantages the housing industry and the institu­ est rates since early July has, however, blunted tions that finance it may derive from rate ceil­ this achievement. With relatively short-term ings, these ceilings clearly discriminate against Treasury securities or Federal agency issues individuals who are able to accumulate only now offering yields of 8 or 9 per cent, the modest amounts of savings or who lack sophis­ purchase of such securities by individuals has tication with regard to investment alternatives. been rising rapidly of late. In determining rate ceilings and in related ac­ In July deposit outflows amounted to about tions, such as establishing minimum denomi­ $300 million at S&L’s and to about $600 million nations in which Federal securities are sold, at mutual savings banks. In August mutual public policy must balance the needs of housing savings banks fared somewhat better. On the finance against equity for the small saver. One other hand, deposit outflows at S&L’s acceler­ result of deposit rate ceilings and large mini­ ated, if we may judge from the data now avail­ mum denominations of Treasury issues has been able. The larger commercial banks, in their turn, to deny small savers the opportunity of benefit­ reported a loss of $200 million in consumer time ing from competitive rates of return on their and savings deposits over the 4 weeks ended funds. This may help to sustain homebuilding, August 29, compared with an increase of $300 but we need to explore other, more equitable, million in the previous 5 weeks. ways of promoting that objective. Suspension The contrasting experience of commercial of deposit rate ceilings in limited areas, subject banks and S&L’s since midyear has suggested to safeguards, is one such avenue of explora­ to some observers that many banks may be tion. attracting funds from S&L’s through aggressive The precise details of the liberalized ceiling marketing of the new certificates with a maturity rates that became effective on July 5 were de­ of 4 years or longer. The Federal Reserve has signed with an eye to minimizing shifts of funds been investigating this question carefully. among depositary institutions. We soon discov­ An overwhelming proportion of the banks ered, however, that S&L’s in a few metropolitan appear to be handling prudently the no-ceiling areas were losing funds to some commercial 4-year certificates. Less than 40 per cent of all banks that were merchandising aggressively the insured commercial banks were offering these new, no-ceiling 4-year certificate. The Board of certificates at the end of July, and of those that Governors of the Federal Reserve System and did, only about 1 of 20 paid a rate in excess Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 of IVi per cent. The rates offered by commercial the contraction in housing activity that we now banks were broadly similar to those offered by face will be milder than the declines of 1966 S&L’s and mutual savings banks. In general, or 1969. since savers would not have gained interest A number of structural changes in housing income by switching funds from nonbank thrift finance during recent years have reduced the institutions to commercial banks, it appears that dependence of the housing industry on mortgage the bulk of the funds lost by S&L’s and savings loans from nonbank thrift institutions. For one banks during July and August did not move to thing private sources of funds for mortgage commercial banks, but that the money went credit have been broadened. Thus, the mortgage elsewhere—probably into market securities. bonds guaranteed by the Government National This, however, is not as yet a firm conclusion. Mortgage Association (GNMA) now attract pri­ In any event, even if valid on a nationwide vate pension funds and other investors who basis, it may not apply to some individual previously had stayed out of the mortgage mar­ communities. The Federal Reserve Board, ket; at present, some $10 billion of such bonds working cooperatively with other regulatory are outstanding. Real estate investment trusts agencies, will therefore continue to give this have also been growing. In the second quarter problem close attention and draw upon whatever of this year they supplied mortgage credit at an new information becomes available. A few days annual rate of $4 billion. Commercial banks ago the FHLBB and the FDIC liberalized their now furnish a larger share of residential mort­ regulations so that the S&L’s and mutual sav­ gage credit—more than 20 per cent in the first ings banks will be able to issue the no-ceiling half of this year, compared with about 15 per 4-year certificates up to 10 per cent of their cent in the decade of the 1960’s. Moreover, deposits. If further regulatory actions offer mortgages have generally become more attrac­ promise of diminishing turbulence in the mar­ tive to private investors because of the growth kets for consumer savings and mortgage credit, of opportunities to insure conventional mort­ the Federal Reserve Board—and I’m sure also gages and the enlargement of secondary market the other regulatory agencies—will not hesitate facilities. to adopt them. The capability of Federal agencies to come In all candor, however, I must acknowledge to the aid of housing in times of difficulty has that I see no easy way out of our current also been bolstered. The Federal National dilemma. Competition among the thrift institu­ Mortgage Association (FNMA) and the Federal tions could be restrained by reverting entirely Home Loan Mortgage Corporation are now au­ to the former ceilings or by imposing a modest thorized to buy conventional mortgages as well ceiling on the new 4-year certificates. But in as Government-guaranteed mortgages so that that event the loss of funds by depositary insti­ their efforts to support housing activity can be tutions to market instruments would probably broadly based. The financial position of FNMA increase greatly. Alternatively, ceilings could be has become stronger in recent years, and its liberalized further so as to give the thrift insti­ security issues are widely regarded as an attrac­ tutions more freedom to compete with market tive investment medium. So also are the securi­ securities. But many S&L’s are not in a position ties issued by the Federal home loan banks to to pay appreciably higher rates, and their future obtain funds for lending to savings institutions. would be in jeopardy if they tried to do so. In Advances from the Federal home loan banks either case, the availability of mortgage credit through August of this year total $5.5 billion, might be affected very adversely. and they can be increased substantially further, It thus appears that mortgage loans will re­ if that should be necessary. main in relatively short supply in the months The Federal Reserve, on its part, has made immediately ahead, particularly in States with plans for providing emergency credit to S&L’s low usury ceilings, and that the volume of and mutual savings banks in the unlikely event residential construction will consequently suf­ that such a need arises. We have also sought fer. There is reason to believe, however, that to improve the market for the securities issued Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 663 by the Federal housing credit agencies. Since of Housing and Urban Development and the VA September 1971, when we began making out­ have acted rather promptly to keep the ceilings right purchases and sales of agency issues, the in line with market rates of interest. In some spread between the yields on these obligations States usury ceilings have dried up the supply and those of the Treasury has narrowed, partic­ of mortgage credit almost completely. If the ularly for the shorter maturities. Our acquisi­ Congress acted decisively on FHA and VA tions were not the only reason for the lower ceilings, State legislators would be more in­ spread, but I believe they made a constructive clined to raise or eliminate the usury ceilings contribution. that are presently curtailing residential building Of greater importance, the Federal Reserve in their area. Board in May raised from 5 to 8 per cent the This committee could also be of great service reserve requirement applicable to increases in to the housing industry by supporting reforms the amount of large-denomination CD’s out­ to moderate short-term swings in the supply of standing at the larger banks. This step increased mortgage credit and home construction. Some the cost to banks of the funds that they of the measures needed are relatively nonconprincipally use to finance business loans. Last troversial, could be acted on quickly, and would Friday the incremental reserve requirement improve the outlook for housing finance even against CD’s was raised again, this time to 11 in the short run. The Board’s earlier recom­ per cent. To the extent that this new reserve mendations to remove the legal restrictions on requirement restrains bank lending to the busi­ real estate loans by national banks, and to permit ness sector, it should help to relieve pressures the Federal Reserve to lend to member banks on residential mortgage credit. on any sound collateral, including mortgages, In view of the structural changes in housing fall into this category. Other measures will need finance and related developments, I believe that to be debated at greater length, and it is there­ the housing industry is in a better position now fore all the more urgent that the Congress initi­ than it was a few years ago to weather the ate constructive deliberation of basic reforms. pressures of financial restraint. But additional The highest priority should be given to making actions are needed to achieve an acceptable fiscal policy a more flexible tool for economic degree of stability in housing finance and con­ stabilization. A promising way to accomplish struction. this, as the Board indicated in its housing report For the immediate future, the single most in early 1972, would be to make the investment constructive step that could be taken by the tax credit variable over the business cycle. Congress would be to increase the degree of If the tax credit for business investment were fiscal restraint on aggregate demand. I for one lowered during economic booms and raised in would support stronger efforts to cut govern­ periods of slack, the rate of business capital mental expenditures, or actions to increase spending would be more stable and so would taxes. Particularly appropriate would be fiscal interest rates and the flow of funds into housing. measures that could be quickly reversed if eco­ The Board recommends again, therefore, that nomic activity began to weaken. Steps to in­ the President be authorized to propose changes crease fiscal restraint now could have dramatic in the tax credit—within a range of perhaps 3 effects on financial markets, with substantial to 12 or 15 per cent—subject to congressional benefits for the supply of mortgage credit and approval or disapproval under special proce­ housing. dures to assure prompt consideration. I would also urge the Congress to abolish Better control of the Federal budget would altogether the present ceiling rates of interest also be of great value. The Board welcomes the on Federal Housing Administration (FHA) and efforts of the Joint Study Committee on Budget Veterans Administration (VA) loans. True, Control, the Rules Committee of the House, and these ceiling rates have not been a significant the Government Operations Committee of the impediment to mortgage credit supplies this Senate to reform budgetary procedures by fixing year, but that is only because the Department firmly the expenditure total for a fiscal year and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 then establishing congressional priorities within interest rates to finance the purchase of homes that total. and apartment buildings. Reforms are also needed to improve the abil­ The thoughts I have put before this committee ity of depositary institutions to compete for today are confined to the problem of cyclical individual savings in periods of rising interest swings in housing. This is a critical current rates. The Board would urge once again the problem. That is why I have emphasized not adoption of legislation to encourage a moderate only the desirability of changes in the structure amount of investment by S&L’s in consumer of housing finance, but also the importance of loans so that their earnings rates would be more basic reforms in fiscal policy. Once fiscal re­ flexible. A more significant contribution to this forms are carried out, there will be less need objective would come from the use by deposi­ to depend upon monetary restraint in the course tary institutions of mortgage loans with variable of a business-cycle expansion. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Com m ittee Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B u lle tin . The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the beginning with the July 1967 issue, and such records B u lle tin have continued to be published in the Board’s Annual Reports. The records for the meetings held in 1973 were published in the for April, pages 286-92; May, pages 345-51; June, B u lle tin s pages 435-44; July, pages 513-20; and August, pages 574-80. The record for the meeting held on June 18-19, 1973, follows: Digitized for FRASER 665 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 MEETING HELD ON JUNE 18-19, 19731 1. Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services, which had expanded at an annual rate of 8 per cent in both the last quarter of 1972 and the first quarter of 1973, was growing at a less rapid pace in the current quarter. Staff projections continued to suggest that growth would moderate further in the second half of the year. In May industrial production continued to rise—reflecting for the most part further gains in output of consumer goods and business equipment—but the pace of expansion was less rapid than it had been earlier in the year. The value of new construction put in place in both April and May changed little from the monthly average for the first quarter. Growth in nonfarm payroll employment slowed from the high rate in the first quarter of the year, but the unemployment rate remained at 5 per cent. Retail sales rose in May, according to the advance report, after having declined more sharply in April than had been reported earlier; the average for the 2 months was close to the average for the first quarter. The advance in average hourly earnings of production workers on nonfarm payrolls, which had been moderate in the first 4 months of 1973, remained so in May. However, this year’s upward spiral in the wholesale price index continued, reflecting another substan­ tial rise in prices of industrial commodities as well as a large increase in prices of farm and food products. In April the uptrend in the consumer price index was sustained at about the fast pace of the preceding 3 months. On June 13 the President announced that prices of all goods and services—except for rents and for prices of raw agricultural commodities sold at the farm level—would be frozen for a period not to exceed 60 days while a new and more effective system of controls was being devised to replace the economic stabilization program’s third phase, which had been introduced in mid-January. Wages, profit margins, dividends, and ^his meeting was held over a 2-day period beginning on the afternoon of June 18, 1973, in order to provide more time for the staff presentation concerning the economic situation and outlook and the Committee’s discussion thereof. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 667 interest rates remained subject to the controls that had existed under Phase III. The latest staff projections for the second half of 1973 were very similar to those of 4 weeks earlier, although business fixed investment now was expected to expand at a somewhat less rapid pace, as suggested by the latest Department of Commerce survey of business spending plans. It was still anticipated that residential construction outlays would decline appreciably, that business in­ ventory investment would increase less rapidly, and that the rise in disposable income and consumption expenditures would slow considerably. In foreign exchange markets, the dollar came under strong selling pressure in early May, chiefly against those continental European currencies that were jointly floating against the dollar. Speculative demands were reflected in appreciation of those currencies floating against the dollar rather than in additions to foreign official holdings of dollars. By the date of this meeting, several of the European currencies had appreciated by as much as 7 to 10 per cent since early May. The U.S. merchandise trade balance, which had improved sub­ stantially in March, was in surplus in April for the first time in about a year and a half. Exports of nonagricultural goods rose further while those of agricultural goods were near the high level reached in March. The value of imports declined, even though import prices rose sharply as a result largely of the devaluation of the dollar in February. At U.S. commercial banks, total loans expanded sharply further in May, reflecting large increases in business loans and in loans to nonbank financial institutions. Banks’ holdings of securities rose somewhat, although their holdings of U.S. Government securities declined appreciably. Faced with strong demands for loans and with rising market interest rates, banks raised the prime rate applicable to large corporations in three steps of lA of a percentage point each, from 63A per cent at the end of April to IV2 per cent in early June. Growth in the narrowly defined money stock (MO,2 which had been very slow in the first quarter of the year and had picked up in April, was rapid in May and early June. The more broadly 2Private demand deposits plus currency in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 defined money stock (M2):i also grew in May at a faster pace than it had earlier, reflecting solely the accelerated expansion in Mx; inflows of time and savings deposits other than large-denomination CD’s were about the same as in April. However, growth in the bank credit proxy4 continued to moderate as the outstanding volume of large-denomination CD’s grew less rapidly than it had earlier in the year. It appeared that over the first half of 1973, Mu M2, and the credit proxy would grow at annual rates of about 5.5, 7.5, and 13.0 per cent, respectively.5 Inflows of savings to nonbank thrift institutions—which had slowed considerably in April, in part because of earlier increases in market interest rates—picked up somewhat in May. Mortgage interest rates continued to edge up. System open market operations since the meeting on May 15 had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with somewhat slower growth in the monetary aggregates over the months immediately ahead than had occurred on average in the preceding 6 months. Operations had been directed toward fostering growth in reserves available to support private nonbank deposits (RPD’s) at an annual rate in a range of 9 to 11 per cent in the May-June period, while avoiding marked changes in money market conditions. Soon after the May meeting, it had appeared that in the May-June period the monetary aggregates would grow at rates in excess of acceptable ranges and that RPD’s would grow at an annual rate above the range that the Committee had specified. Consequently, the System had acted promptly to resist the expansion in RPD’s, and the Federal funds rate rose from around 13A per Cent in the days before the May meeting to an average slightly above 8 per cent in the statement week ending May 23. On May 24 and again on June 8, a majority of the Committee members concurred in recommendations by the Chairman that money market conditions should be permitted to tighten still further if necessary to limit 3Ml plus commercial bank time and savings deposits other than large-denomi­ nation CD’s. 4Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 5 Growth rates cited are calculated on the basis of the daily-average level in the last month of the period relative to that in the last month preceding the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 669 growth in RPD’s, and the Federal funds rate rose to around 8V2 per cent in the days before this meeting. In the 5 weeks ending June 13, member bank borrowings averaged about $1,855 million, up from about $1,715 million in the preceding 4 weeks. In the inter-meeting period, short-term market interest rates advanced considerably further as money market conditions contin­ ued to firm and private credit demands remained strong. On May 16, moreover, imposition of marginal reserve requirements on large-denomination CD’s was announced and the remaining Regu­ lation Q ceilings on such CD’s were suspended. The yield on 3-month Treasury bills—which had been relatively low, for the most part because of a shortage of bills in the market—rose more than other short-term rates as the market supply increased, mainly because of System sales of bills for its own account and that of foreign central banks; the market rate on such bills advanced from 6.17 per cent on the day before the May meeting to 7.20 per cent on the day before this meeting. Federal Reserve discount rates were raised V2 percentage point, to 6V2 per cent, at 10 Reserve Banks on June 11 and at the remaining two Banks by June 15. In long-term markets, increases in interest rates were moderate, despite the further tightening of money market conditions and further increases in short-term interest rates. The over-all volume of new public offerings of corporate and State and local government bonds had changed little in May, and although a rise was in prospect for June, the volume for the second quarter as a whole appeared to be low for that season of the year. The Committee agreed that the economic situation and prospects called for somewhat slower growth in monetary aggregates over the months immediately ahead than appeared indicated for the first half of the year. A staff analysis suggested that expansion in the demand for money was likely to slow considerably from the high rate indicated for the second quarter in response to the anticipated moderation in GNP growth, to the sharp rise in short-term interest rates that had occurred in recent months, and to the running down of the deposits that had been built up in association with the unusually large refunds of Federal income taxes in the second quarter. Moreover, net expansion in consumer-type time and sav­ ings deposits at commercial banks was expected to slow appreciably as a consequence of the recent rise in short-term market interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 rates. It was noted, however, that projections of the demand for money were subject to more uncertainty than usual because of the unknown effects of the short-term freeze on prices and the lack of information concerning the elements of the price and wage stabilization program to follow. The staff analysis also indicated that demands for bank credit were likely to remain strong and that banks probably would con­ tinue to add substantial amounts to the outstanding volume of large-denomination CD’s. Therefore, a relatively rapid rate of growth in RPD’s in the June-July period—at an annual rate in a range of 9.5 to 11.5 per cent—was projected to be consistent with somewhat slower growth in the monetary aggregates over the months immediately ahead than appeared indicated for the first half of the year. The analysis suggested that such a rate of growth in RPD’s might be associated with little change in money market conditions but that short- and long-term market interest rates in general might be subject to additional upward pressures in further adjustment to the firming in money market conditions that had occurred in recent weeks. In view of the rapid monetary expansion in the second quarter and uncertainty about the demand for money in the months ahead, the Committee agreed that the lower end of the range specified for the annual rate of RPD growth in the June-July period should be lower than that projected in the staff analysis. Specifically, the members decided that operations should be directed at fostering RPD growth during that period at an annual rate within a range of 8 to 11.5 per cent. They agreed that money market conditions might be permitted to vary somewhat more in the inter-meeting period than had been contemplated at other recent meetings, if such variation appeared indicated in the conduct of operations directed toward achieving RPD growth in the desired range. The members also agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments and of deviations in monetary growth from an acceptable range. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant incon­ sistencies appeared to be developing among the Committee’s various objectives and constraints. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 671 The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting, including recent de­ velopments in industrial production, employment, and retail sales, suggests that growth in economic activity is slowing in the current quarter from an exceptionally rapid pace in the two preceding quarters. The unemployment rate has remained at 5 per cent. Wage rates have advanced moderately thus far this year, but the rise in both wholesale and retail prices has been exceptionally rapid. On June 13 the President announced that prices will be frozen for a maximum of 60 days while a new and more effective system of controls is developed. Phase III controls affecting wages, profit margins, dividends, and interest rates remain in effect. In foreign exchange markets, several European currencies have appreciated against the dollar by 7 to 10 per cent since early May. The U.S. merchandise trade balance continued to improve in April, as exports other than agricultural products increased sharply further and imports dipped. Following relatively slow growth earlier in the year, the narrowly defined money stock rose sharply in May and early June. Growth in consumer-type time and savings deposits changed little, while banks’ net sales of large-denomination CD’s declined further. On May 16 marginal reserve requirements were imposed on large-de­ nomination CD’s and the remaining Regulation Q ceilings on such CD’s were suspended. Business loan demands have remained strong, and since mid-May short-term market interest rates have advanced considerably further. Interest rates on long-term market securities in general have risen somewhat. On June 11 Federal Reserve discount rates were raised one-half point to 6V2 per cent. 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 appears indicated for the first half of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 Votes for this action: Messrs. Burns, Brimmer, Bucher, Daane, Francis, Holland, Mayo, Mitchell, Morris, Sheehan, Clay, and Debs. Votes against this action: None. Absent and not voting: Messrs. Balles and Hayes. (Messrs. Clay and Debs voted as alternates for Messrs. Balles and Hayes, respectively.) Subsequent to the meeting it appeared that in the June-July period the annual rate of growth in RPD’s would be above 11.5 per cent and that growth in the monetary aggregates would exceed an acceptable range, even though money market conditions had continued to tighten. On July 6, 1973, a majority of the members concurred in a recommendation by the Chairman that money market conditions should be permitted to tighten still further if necessary to limit growth in RPD’s. 2. Authorization for domestic open market operations On July 6, 1973, Committee members voted to increase from $2 billion to $3 billion the limit on changes between Committee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the authori­ zation for domestic open market operations, effective immediately, for the period ending with the close of business on July 17, 1973. Votes for this action: Messrs. Burns, Balles, Brimmer, Francis, Holland, Mitchell, Sheehan, Debs, and Winn. Votes against this action: None. Absent and not voting: Messrs. Bucher, Daane, Hayes, Mayo, and Morris. (Messrs. Debs and Winn voted as alternates for Messrs. Hayes and Mayo, respectively.) This action was taken on recommendation of the System Account Manager. The Manager had advised that a substantial volume of open market purchases of securities had been required in the period since the Committee’s meeting on June 19 in order to offset the reserve absorption caused by a rise in Treasury balances at Federal Reserve Banks, an increase in currency in circulation, and a decline in Federal Reserve float, and he further advised that a temporary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 673 increase in the leeway for System purchases appeared desirable in light of the prospective near-term needs to supply reserves. 3. Authorization for foreign currency operations Effective July 10, 1973, the table contained in paragraph 2 of the authorization for foreign currency operations was amended to reflect increases in most of the System’s swap arrangements. With these changes, paragraph 2 read as follows: The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements (“swap” arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of Foreign bank arrangement (millions of dollars equivalent) Austrian National Bank................................................ 250 National Bank of Belgium........................................... 1,000 Bank of Canada.............................................................. 2,000 National Bank of Denmark ........................................ 250 Bank of England............................................................ 2,000 Bank of France................................................................ 2,000 German Federal Bank.................................................... 2,000 Bank of Italy................................................................... 2,000 Bank of Japan................................................................. 2,000 Bank of Mexico.............................................................. 180 Netherlands Bank .......................................................... 500 Bank of Norway ............................................................ 250 Bank of Sweden.............................................................. 300 Swiss National Bank..................................................... 1,400 Bank for International Settlements: Dollars against Swiss francs.................................... 600 Dollars against other European currencies................................................................. 1,250 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 The increases—ranging in size from $250 million to $1 bil­ lion—in the swap arrangements with the Bank for International Settlements and with the central banks of Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, and Switzerland were made pursuant to an action the Committee had taken by unanimous vote at its meeting on March 20, 1973. In that action, the Special Manager was authorized to undertake negotiations looking toward increases in System swap lines not exceeding $6 billion in the aggregate, on the understanding that increases in individual lines, and the corresponding amendments to the foreign currency authori­ zation, would become effective upon approval by Chairman Burns, after consultation with the U.S. Treasury. The remaining in­ creases—of $50 million each—in the swap arrangements with the central banks of Austria, Denmark, Mexico, Norway, and Sweden were authorized by unanimous vote of the Committee at its meeting on June 19, 1973, on the understanding that they would become effective on the same date as the swap line increases for which negotiations had been authorized on March 20. This expansion of the System’s swap network was carried out in conformity with the policy that had been agreed to at the meeting of Finance Ministers and central bank governors in Paris on March 16, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS (c) time deposits represented by bank accep­ tances, as provided in § 204.1(f); The Board of Governors has increased the mar­ Provided further, That in no event shall the re­ ginal reserve requirement from 8 to 11 per cent, serves required on its aggregate amount of time subject to the proviso that in no event shall the and savings deposits exceed 10 per cent; and reserves required of a member bank on its aggre­ * * * gate amount of time and savings deposits exceed (2) If in a reserve city (except as to any bank 10 per cent. located in such a city that is permitted by the Board AMENDMENT TO REGULATION D of Governors of the Federal Reserve System, pur­ suant to § 204.2(a)(2), to maintain the reserves Effective October 4, 1973, section 204.5(a) specified in subparagraph (1) of this paragraph)— (l)(ii) and (2)(ii) of Regulation D is amended to * * * read as follows: (ii) 3 per cent of its other time deposits up to SECTION 204.5 RESERVE REQUIREMENTS $5 million, plus 5 per cent of such deposits in excess of $5 million: Provided, however, That a (a) Reserve percentages. Pursuant to the pro­ member bank shall maintain a reserve balance visions of section 19 of the Federal Reserve Act equal to 11 per cent of the amount by which the and § 204.2(a) and subject to paragraph (c) of this daily average amount of time deposits of the types section, the Board of Governors of the Federal hereinafter specified exceeds either the daily Reserve System hereby prescribes the following average amount of such time deposits outstanding reserve balances that each member bank of the during the computation period ending May 16, Federal Reserve System is required to maintain 1973, or $10 million, whichever is greater, and on deposit with the Federal Reserve Bank of its such 11 per cent reserve percentage shall apply district: with respect to time deposits of the following (1) If not in a reserve city— types: (a) time deposits of $100,000 or more; and * * * (.b) time deposits represented by promissory (ii) 3 per cent of its other time deposits up to notes, acknowledgments of advance, due bills, $5 million, plus 5 per cent of such deposits in or similar obligations issued by a member excess of $5 million: Provided, however, That a bank’s affiliate, as provided in § 204.1(f); and member bank shall maintain a reserve balance (c) time deposits represented by bank accep­ equal to 11 per cent of the amount by which the tances, as provided in § 204.1(f); daily average amount of time deposits of the types Provided further, That in no event shall the re­ hereinafter specified exceeds either the daily serves required on its aggregate amount of time average amount of such time deposits outstanding and savings deposits exceed 10 per cent; and * * * during the computation period ending May 16, 1973, or $10 million, whichever is greater, and INTEREST ON DEPOSITS such 11 per cent reserve percentage shall apply with respect to time deposits of the following The Board of Governors has amended Regula­ types: tion Q to treat as a payment of a time deposit (a) time deposits of $100,000 or more; and before maturity any amendment to the time deposit (b) time deposits represented by promissory contract that results in either an increase in interest notes, acknowledgments of advance, due bills, rate or a change in the maturity of the deposit. or similar obligations issued by a member Such treatment would mean that the penalty for bank’s affiliate, as provided in § 204.1(f); and early withdrawals, provided in § 217.4(d) of Reg­ 675 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 ulation Q, would apply at the time of any such as “prepaid finance charges.” They also require amendment to the contract. that such prepaid finance charges be excluded or deducted from the credit extended in arriving at AMENDMENT TO REGULATION Q the “amount financed.” The question arises whether add-on, discount or other precomputed Effective September 10, 1973, section 217.4(d) finance charges which are reflected in the face of its Regulation Q (12 CFR 217) is amended by amount of the debt instrument as part of the adding a new sentence at the end thereof to read customer’s obligation, but which are excluded as follows: from the “amount financed,” must be labeled as SECTION 217.4 PAYMENT OF TIME DEPOS­ “prepaid” finance charges. ITS BEFORE MATURITY The concept of prepaid finance charges was adopted to insure that the “amount financed” ;}C ^ 5{c ifc reflected only that credit of which the customer (d) Penalty for early withdrawals. * * * had the actual use. Precomputed finance charges Any amendment of a time deposit contract that which are included in the face amount of the results in an increase in the rate of interest paid obligation are not the type contemplated by the or in a change in the maturity of the deposit “prepaid” finance charge disclosure concept. Al­ constitutes a payment of the time deposit before though such precomputed finance charges are not maturity. to be included in the “Amount financed,” they need not be regarded as finance charges “paid INTERPRETATION OF REGULATION Z separately” or “withheld by the creditor from the proceeds of the credit extended” within the mean­ PREPAID FINANCE CHARGES; ADD-ONS ing of § 226.8(e) to require labeling “prepaid” AND DISCOUNTS under §§ 226.8(c)(6) and 226.8(d)(2). They are Sections 226.8(c)(6), 226.8(d)(2) and 226.8(e) “finance charges”, of course, to be disclosed (1) require that certain finance charges be disclosed under §§ 226.8(c)(8) and 226.8(d)(3). BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF per cent of deposits in commercial banks in the BANK HOLDING COMPANY ACT Greater Newark market. Bank, with deposits of approximately $35 million, operates three CEGROVE CORPORATION, WAYNE branches and is the 22nd largest of 35 organi­ TOWNSHIP, NEW JERSEY zations operating in the market approximated by Order Denying Acquisition of Bank the Paterson, New Jersey, SMSA. (All deposit Cegrove Corporation, Wayne Township, New data are as of December 31, 1972, and all market Jersey, a bank holding company within the mean­ data are as of June 30, 1972.) ing of the Bank Holding Company Act, has ap­ The Willowbrook office of Bank is separated plied for the Board’s approval under § 3(a)(3) of from Pilgrim’s office by only five miles, but pene­ the Act (12 U.S.C. 1842(a)(3)) to acquire 100 per tration data show that neither bank derives a sig­ cent of the voting shares (less directors’ qualifying nificant amount of business from the service area shares) of The Ramapo Bank, Wayne Township, of the other and it appears that this proposal would New Jersey (“Bank”). not eliminate significant competition. There has Notice of the application, affording opportunity been close cooperation in the management and for interested persons to submit comments and operation of the two banks and it seems unlikely views, has been given in accordance with § 3(b) that future competition will develop. Apparently, of the Act. The time for filing comments and views consummation of the proposal would not appre­ has expired, and the Board has considered the ciably raise the barriers to entry in any relevant application and all comments received in light of area nor affect adversely the competitive situation the factors set forth in § 3(c) of the Act (12 U.S.C. in any relevant area, and there remains available 1842(c)). a significant number of potential “foothold” ac­ Applicant controls one bank, Pilgrim State quisitions to afford entry into the relevant markets. Bank, Cedar Grove, New Jersey, with deposits Competitive considerations are regarded as con­ of $5 million which represents approximately 0.1 sistent with approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 677 In regard to financial considerations, Bank’s net By order of the Board of Governors, effective income decreased from $.45 per share in 1971 to August 31, 1973. $.41 per share in 1972. Bank’s recent six months’ Voting for this action: Vice Chairman Mitchell and Gover­ figures indicate earnings per share of $.20. Pilgrim nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent State Bank opened in March of 1971 and has never and not voting: Chairman Burns. listed a profit, and it is questionable that it could (Signed) Theodore E. A llison , turn a profit for 1973. Both banks have an aggres­ [seal] Assistant Secretary of the Board. sive loan posture and there is some evidence of a strain on Bank’s capital. The proposal contem­ FINANCIAL GENERAL BANKSHARES, INC., plates an undertaking by Applicant of $1.5 million WASHINGTON, D.C. in debt. On the record herein, the Board regards it as unlikely that cash derived from operations Order Conditionally Approving Acquisition of the proposed expanded holding company system of Bank would be sufficient to service the debt without Financial General Bankshares, Inc., Washing­ creating an undue strain on the capital of both ton, D.C., a bank holding company within the banks involved. meaning of the Bank Holding Company Act, and Moreover, in light of the earnings picture and its two-wholly owned subsidiaries, The Morris Applicant’s proposed debt positions of the compa­ Plan Corporation and Virginia Bankshares, Inc., nies involved, it is not unreasonable to conclude both of Washington, D.C. (collectively referred that outside investors would not be attracted to to as “Applicants”), have applied for the Board’s the holding company. The Board has serious res­ approval under § 3(a)(3) of the Act (12 U.S.C. ervations as to the ability of Applicant to service 1842(a)(3)), to acquire 17,000 or more, but not the debt or raise additional capital. As the Board to exceed 80 per cent, of the voting shares of has stated many times, a holding company should Clarendon Bank & Trust, Fairfax County, Virginia be a source of strength for its subsidiary banks (“Bank”). rather than vice versa. Applicant, a highly le­ Notice of the application, affording opportunity veraged holding company, does not appear to be for interested persons to submit comments and in a position to assist both Bank and Pilgrim Bank, views, has been given in accordance with § 3(b) the newly formed and as yet unprofitable bank in of the Act. The time for filing comments and views the system. In these circumstances, and in view has expired and the Board has considered the of the entire record, the Board views the uncertain application and all comments received in light of financial prospects as considerations weighing the factors set forth in § 3(c) of the Act (12 U.S.C. against approval of this transaction. 1842(c)). It should be emphasized that there is no evi­ On January 10, 1973, the Federal Deposit In­ dence that the present financial condition of Bank surance Corporation approved the merger of or Applicant is unsound. The Board is concerned Woodlawn National Bank, Alexandria, Virginia here only with a proposed expansion of a holding (deposits of $11.5 million), into Bank (deposits company and the problems related to acquisition of $154 million). Prior to that merger, Applicants debt and the capital structure of the proposed owned 141,800 (or 55.12 per cent) of the out­ expanded institution. standing shares of Bank. As a result of the merger, Applicant proposes to offer services that are not Applicants’ ownership has dropped to 44.7 per currently offered by the banks involved. There is cent. Although it is acknowledged that effective no evidence that the relevant markets are not control still exists, the purpose of the instant adequately served at the present time. Consid­ proposal is to increase Applicants’ degree of con­ erations relating to the convenience and needs of trol of Bank to at least its former level of more the community to be served are regarded as con­ than 50 per cent, and would have no effect on sistent with, but lend no weight toward, approval. existing or future competition. The Board con­ Managerial resources of Applicant, its subsidiary cludes that competitive considerations are consist­ bank, and Bank are regarded as adequate but these ent with approval of the application. considerations do not lend weight toward ap­ The financial and managerial resources and fu­ proval. ture prospects of Applicants are generally satis­ In light of the entire record, it is the Board’s factory and consistent with approval of the appli­ judgment that the proposed transaction would not cation. Applicants propose to acquire up to 80 per be in the public interest and should be, and hereby cent of the outstanding shares of Bank by means is, denied. of a cash offer of $55 per share to all minority Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 shareholders. A pro rata adjustment will be made, FINANCIAL GENERAL BANKSHARES, INC., whereby Applicants will take a proportionate WASHINGTON, D.C. number of shares from each tendering stockholder, in the event that acceptance of the number of Order Conditionally Approving Acquisition shares tendered would increase Applicant’s per­ of Bank centage of ownership to more than 80 per cent. Financial General Bankshares, Inc., Washing­ The Board has previously determined such a pur­ ton, D.C., a bank holding company within the chase procedure to be equitable to minority share­ meaning of the Bank Holding Company Act, has holders and a reasonable means of protecting both applied for the Board’s approval under § 3(a)(3) the offeror and the offeree. (See 1967 Federal of the Act (12 U.S.C. 1842(a)(3)) to acquire 50 Reserve B u lletin 1567, 1570). Considerations per cent plus one share or more of the voting shares relating to the convenience and needs of the com­ of Second National Bank of Richmond, Rich­ munity to be served are also consistent with ap­ mond, Virginia. proval of the application. Control by International Notice of the application, affording opportunity Bank, Washington, D.C., (which is engaged in for interested persons to submit comments and non-banking business) over Financial General is views, has been given in accordance with § 3(b) a matter of concern to the Board. To the extent of the Act. The time for filing comments and views that International Bank controls or exercises con­ has expired, and those received have been consid­ trolling influence over Financial General, an ac­ ered in light of the factors set forth in § 3(c) of quisition by Financial General would be regarded the Act (12 U.S.C. 1842(c)). by the Board as an acquisition by International Applicant, holds interests in 25 banks in seven Bank under the provisions of the Bank Holding States, the District of Columbia, and the Virgin Company Act. Accordingly, approval of the ap­ Islands. The operations of Applicant’s banking plication is hereby conditioned upon prior termi­ subsidiaries were principally conducted in the nation by International Bank of any such control State of Virginia on July 1, 1966, the date on or controlling influence over Financial General. It which Applicant became a bank holding company. is the Board’s judgment that consummation of the Therefore, the effect of section 3(d) of the Act proposed acquisition would be in the public inter­ is to prohibit the Board from approving an appli­ est and that the application should be approved cation by Applicant for the direct or indirect ac­ provided that such control by International Bank quisition of voting shares of any additional bank is terminated. not located in the State of Virginia. Applicant is On the basis of the record, the application is the seventh largest banking organization in Vir­ approved for the reasons summarized above and ginia, controlling eight banks in Virginia with upon the condition that no shares of Bank may aggregate deposits of $573 million representing be acquired under this Order prior to the date on 5.3 per cent of all deposits of commercial banks which the Board concludes that International Bank in the State.1 Acquisition of Bank (deposits of does not control nor exercise a controlling influ­ $30.7 million) would constitute Applicant’s initial ence over Applicant. The transaction shall not be entry into the Richmond banking market (approxi­ consummated (a) before the thirtieth calendar day mated by the city of Richmond and the counties following the effective date of this Order or (b) of Chesterfield, Hanover, and Henrico) and would later than 180 days after the effective date of this not change Applicant’s ranking among banking Order unless such period is extended for good organizations in the State. cause by the Board or by the Federal Reserve Bank As of June 30, 1972, Bank was the eighth of Richmond pursuant to delegated authority. largest of 14 banks in the Richmond banking By order of the Board of Governors, effective market, controlling 1.5 per cent of total deposits August 31, 1973. in that market. Applicant’s nearest subsidiary office to Bank is more than 100 miles distant. It appears that no meaningful competition exists be­ Voting for this action: Vice Chairman Mitchell and Gover­ tween Bank and any of Applicant’s subsidiary nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns. banking offices. Further, it seems unlikely that meaningful competition would develop in the fu­ ture between Bank and Applicant in light of the (Signed) Theodore E. Allison, [seal] Assistant Secretary of the Board. *A11 banking data are as of December 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 679 facts presented, notably, the distances separating By order of the Board of Governors, effective these banks and the Virginia statutes prohibiting August 31, 1973. Applicant’s subsidiaries from de novo branching Voting for this action: Vice Chairman Mitchell and Gover­ into the Richmond banking market. It appears that nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent acquisition of Bank would not have a significantly and not voting: Chairman Burns. adverse effect on the remaining banks in the rele­ (Signed) T heodore E. A llison , vant market. Furthermore, entry by Applicant may [seal] Assistant Secretary of the Board. have a procompetitive effect by enabling Bank to compete more effectively with the four largest MULTIBANK FINANCIAL CORP., banks in the Richmond market which together BOSTON, MASSACHUSETTS controlled approximately 82 per cent of market deposits on June 30, 1972. On the basis of the Order A pproving Acquisition of Bank record before it, the Board concludes that con­ Multibank Financial Corp., Boston, Massachu­ summation of the proposal herein would not have setts, a bank holding company within the meaning an adverse effect on competition in any relevant of the Bank Holding Company Act, has applied area. for the Board’s approval under § 3(a)(3) of the The financial condition, managerial resources Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent and future prospects of Applicant and its subsidi­ or more of the voting shares of B.M.C. Durfee ary banks appear satisfactory. Bank’s financial and Trust Company, Fall River, Massachusetts managerial resources and future prospects are re­ (“Bank”). garded as satisfactory and the ability of Applicant Notice of the application, affording opportunity to strengthen Bank’s capital position lends weight for interested persons to submit comments and toward approval of the application. Considerations views, has been given in accordance with § 3(b) relating to the convenience and needs of the com­ of the Act. The time for filing comments and views munity to be served are consistent with approval has expired, and the Board has considered the of the application. Control by International Bank, application and all comments received in light of Washington, D.C., (which is engaged in non­ the factors set forth in § 3(c) of the Act (12 U.S.C. banking business) over Applicant is a matter of 1842(c)). concern to the Board. To the extent that Interna­ Applicant controls five banks with total deposits tional Bank controls or exercises controlling influ­ of $446.9 million, representing approximately four ence over Applicant, an acquisition by Applicant per cent of the total deposits of commercial banks would be regarded by the Board as an acquisition in the State, and is the sixth largest banking by International Bank under the provisions of the organization in Massachusetts. (All banking data Bank Holding Company Act. Accordingly, ap­ are as of December 31, 1972.) The acquisition proval of the application is hereby conditioned of Bank ($56 million in deposits) would increase upon prior termination by International Bank of Applicant’s share of the total State deposits by any such control or controlling influence over 0.45 per cent, and it would remain the sixth largest Applicant. It is the Board’s judgment that con­ banking organization in Massachusetts. Bank is summation of the proposed acquisition would be the second largest of six commercial banking or­ in the public interest and that the application ganizations in the Fall River banking market1 should be approved provided that such control by which is deemed the relevant market. If the five International Bank is terminated. mutual savings banks located in the market are On the basis of the record, the application is also considered, Bank is the fifth largest of eleven approved for the reasons summarized above and banking organizations in the market. Bank’s mar­ upon the condition that no shares of Bank may ket share is 30.2 per cent when only the commer­ be acquired under this Order prior to the date on cial banks in the market are considered, but drops which the Board concludes that International Bank to 13.3 per cent if all banking organizations in does not control nor exercise a controlling influ­ the market are considered. The five mutual savings ence over Applicant. The transaction shall not be consummated (a) before the thirtieth calendar day 1The Fall River banking market is approximated by the Fall following the effective date of this Order, or (b) River Standard Metropolitan Statistical Area which includes later than 180 days after the effective date of this the City of Fall River and the Towns of Somerset, Swansea, Westport, and Dighton in southern Bristol County, Massachu­ Order, unless such period is extended for good setts, and Tiverton, Little Compton, and Portsmouth in New­ cause by the Board. port County, Rhode Island. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 banks in the Fall River market hold aggregate of total commercial bank deposits therein. Further, deposits greater than those held by the six com­ the significant role of mutual savings banks in the mercial banks in the market, and their competition County, holding, as they do, aggregate deposits with the commercial banks is likely to increase of $834 million compared to aggregate deposits in the future through their solicitation and accep­ of commercial banks amounting to approximately tance of accounts subject to negotiable orders of $522 million, mitigates the significance of the 16.5 withdrawal (NOW accounts). The proposed ac­ per cent figure. The Board concludes that the quisition would represent Applicant’s initial entry acquisition would have no significant adverse ef­ into this market. fect on the competitive situation or the concentra­ Applicant’s banking subsidiary nearest to Bank tion of banking resources in the area. is located approximately 12 miles away in northern Applicant has agreed to inject capital into cer­ Bristol County in the Attleboro market, a separate tain of its subsidiary banks. In that light, the Board market area. There presently exists no meaningful finds the financial condition and managerial re­ competition between Bank and that subsidiary. sources of the Applicant, its subsidiaries, and Although Applicant’s banking subsidiary and Bank satisfactory; and prospects for each are fa­ Bank may each lawfully open branch offices in vorable. the respective market areas of the other under Applicant intends to have Bank offer certain Massachusetts law, consummation of the proposed services not presently offered by Bank, principally transaction would not have a significant adverse equipment leasing and accounts receivable financ­ effect on the development of future competition. ing, as well as to implement a capital improvement It is not expected that, absent such consummation, program for Bank. The communities to be served Applicant’s banking subsidiary would avail itself should also benefit from larger lending limits and of the opportunity to open branch offices in the the expertise of specialized personnel in the hold­ Fall River market in view of the present economic ing company organization to become available to condition of that market. The population growth Bank as a result of consummation of the proposed of the Fall River SMSA between 1960 and 1970 transaction. Accordingly, considerations relating was 8.6 per cent, compared to growth of 12.1 per to convenience and needs of the communities to cent by the entire State over the same period. The be served are consistent with approval. It is the population per banking office in the SMSA is Board’s judgment that consummation of the below that of the State, and, with deposits per proposed acquisition would be in the public inter­ banking office of $7.0 million, the SMSA is sub­ est and that the application should be approved. stantially below the State average of $13.3 million. Bank’s sole subsidiary engages in the operation Further, the Greater Fall River area has been of a commercial parking lot on land owned by classified as a substandard employment area by the the subsidiary. Operation of a commercial parking Economic Development Administration. Simi­ lot is not an activity that is “closely related to larly, although Bank recently branched into the banking”, and Bank, as a subsidiary of a bank fringe of the market area of Applicant’s closest holding company, may not continue to engage in banking subsidiary, future branch expansion in that activity either on the basis of section 4(c)(8) that market by Bank in the near future is consid­ or section 4(c)(5) of the Act (12 U.S.C. 1843(c)(8) ered unlikely in view of its limited capital base and (c)(5)). It is therefore expected that Bank, and the fact that both the population per banking preferably prior to consummation of the proposed office and deposits per banking office of the Attle­ transaction, but in any event within a reasonable boro area are substantially below State averages. time after such consummation, will divest itself Should the proposed transaction be consum­ of that subsidiary, and approval of this application mated, Bank would become Applicant’s second is conditioned upon such divestiture. banking subsidiary in Bristol County; however, On the basis of the record, the application is there would remain seven independent banks approved for the reasons summarized above. The which offer holding company access to the transaction shall not be consummated (a) before County. Even if Bristol County should be consid­ the thirtieth calendar day following the effective ered the relevant market, consummation of this date of this Order or (b) later than three months proposal would not increase the level of concen­ after the effective date of this Order, unless such tration of banking resources in the County to a period is extended for good cause by the Board, degree that would endanger competition since Ap­ or by the Federal Reserve Bank of Boston pursuant plicant would hold thereafter only 16.5 per cent to delegated authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 681 By order of the Board of Governors effective rate of 3.2 per cent, Attleboro possesses a strong August 31, 1973. economy. Nor is the attractiveness of the Attleboro area for de novo branching lessened by its popula­ Voting for this action: Chairman Burns and Governors Sheehan, Bucher, and Holland. Voting against this action: tion per banking office ratio which the majority Governor Brimmer. Absent and not voting: Governors Mitchell notes is below the State average. The ratio is and Daane. (Signed) T heodore E. A llison , deceptive unless considered against the back­ [seal] Assistant Secretary of the Board. ground of the substantial commuting into Attle­ boro for employment and shopping by residents of the surrounding towns—some of which have Dissenting Statement of high population to banking office ratios. Contrary Governor Brimmer to the majority’s conclusions, the Attleboro area I would deny this application. Consummation is quite attractive for de novo branching entry, and of the transaction would adversely affect future Bank is quite likely to pursue such entry absent competition throughout Bristol County and unduly consummation of the proposed transaction. increase the level of concentration of commercial I also cannot agree with the majority’s conclu­ banking resources in that County. sion that Applicant’s Attleboro subsidiary would The majority concentrates on the issue of not establish a branch office in the Fall River whether Applicant’s Attleboro subsidiary or Bank market. The majority, noting the depressed status would branch into one another’s market areas. By of the economy of Fall River, fails to recognize so doing, they ignore the high probability that that the Fall River market extends beyond the Bank and Applicant’s subsidiary would confront boundaries of the City of Fall River. All of the one another in other market areas within Bristol market’s population growth between 1960 and County—if this application were denied. Since 1970 occurred in the suburbs of Fall River. That both are limited to geographic expansion within growth apparently represents a reversal of the the boundaries of the County by Massachusetts long-run downward trend of the market’s econ­ law, it is highly likely that the two would eventu­ omy. The market’s unemployment rate, although ally establish branch offices in competition with undesirably high, has declined in recent years, one another. In fact, Bank has already branched reinforcing the conclusion that the decline of the into Taunton, and it appears likely that in time Fall River area may be reversing itself. However, significant competition would develop between the the attractiveness of the Fall River market for de two. novo entry by branching is best demonstrated by The majority dismisses the likelihood that future the fact that the largest commercial bank located competition in the Attleboro and Fall River areas in Bristol County recently received regulatory ap­ would develop between Bank and Applicant’s proval to establish a new branch office in the City subsidiary. It concludes that Bank would not of Fall River. branch into the Attleboro area (this despite the fact In assessing the competitive effects of this ap­ that Bank has already opened a branch office on plication, I believe that the majority, rather than the fringe of that area) in the belief that Bank lacks looking to the medium-term and long-term adverse the capital necessary to support geographic expan­ effects of the acquisition, has focused its concern sion. The majority also suggest that the Attleboro exclusively on banking competition in Massachu­ area is not an attractive area for de novo branching. setts today. I would not so limit my consideration. I believe they are wrong on both grounds. The competitive standard set forth in the Act The majority ignores the fact that Bank has “requires not merely an appraisal of the immediate pursued an aggressive branching policy—having impact of [an acquisition] upon competition, but opened three branch offices outside of Fall River a prediction of its impact upon competitive condi­ in the last four years. There is no evidence to tions in the future.” I would arrest the anticom­ suggest that this policy would be abandoned if the petitive tendencies of this proposed transaction at proposed transaction were not approved. Further, the outset. the population growth of northwest Bristol County In conclusion, I find that the anticompetitive (where Attleboro is located) has considerably out­ effects of the proposed acquisition are not clearly paced that of the rest of the County. Between 1960 outweighed in the public interest by the effect of and 1970, it increased by 26.9 per cent while the the transaction on the convenience and needs of population of the County as a whole rose by only the community to be served. I would deny the 11.5 per cent. With an estimated unemployment application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 AFFILIATED BANKSHARES OF COLORADO, cant’s four subsidiary banks hold 35 per cent of INC., BOULDER, COLORADO the total of $280 million in deposits held by the 14 banks operating there. In the Greeley market, Applicant’s four subsidiary banks hold 39 per cent Order Approving M erger of Bank Holding of the total of $220 million in deposits held by Companies the 16 banks there, making Applicant the largest Affiliated Bankshares of Colorado, Inc. (“Affil­ banking organization in that market. Applicant is iated”), Boulder, Colorado, a bank holding com­ the third largest banking organization in the Fort pany within the meaning of the Bank Holding Collins market with its three subsidiary banks Company Act, has applied for the Board’s ap­ holding about 21 per cent of the $219 million in proval under § 3(a)(5) of the Act (12 U.S.C. deposits held by the 11 banks there. 1842(a)(5)) to merge with First Colorado Bank­ In contrast to Affiliated, First Colorado operates shares, Inc. (“First Colorado”), Littleton, Colo­ solely in the Denver area, with its four subsidiary rado, under the certificate of incorporation and banks accounting for 6.4 per cent of the over $3 name of Affiliated Bankshares of Colorado. billion in deposits of the 64 commercial banks Notice of receipt of the application, affording operating there. Except for one of Affiliated’s an opportunity for interested persons to submit subsidiaries in Boulder, which derives a little more comments and views, has been given in accor­ than $1 million in deposits from the Denver area, dance with § 3(b) of the Act. The time for filing there is no existing competition between the sub­ comments and views has expired. The Board has sidiary banks of Affiliated and of First Colorado. considered the application and all comments re­ The closest banking offices of any subsidiary of ceived in the light of the factors set forth in § either are more than 25 miles apart. It appears, 3(c) of the Act (12 U.S.C. 1842(c)) and finds that: therefore, that no significant existing banking Affiliated, having 14 subsidiary banks with total competition would be eliminated as a result of deposits of $378 million, is the fourth largest consummation of the proposal. banking organization in Colorado and controls 6.4 Affiliated has a mortgage banking subsidiary per cent of the total commercial bank deposits in making 1-4 family mortgage loans and con­ the State. (Unless otherwise indicated, banking struction loans in the Denver market, as does First data are as of June 30, 1972, adjusted to reflect Colorado. However, the amount of competition acquisitions approved by the Board through May between the two mortgage companies is not re­ 31, 1973.) First Colorado controls four banks (in garded as being substantial. The combined share and around the City of Denver) with total deposits of the two institutions in the 1-4 family mortgage of $234 million and ranks as the State’s seventh market represents less than 5 per cent of such largest banking organization controlling about 4 mortgages in the Denver market. Furthermore, per cent of the total deposits in the State. As a there are some 20 mortgage companies, 17 savings result of consummation of the proposal, Affiliated and loan associations, and 63 commercial banks would control 10.3 per cent of the total deposits engaged in mortgage lending in the Denver mar­ in commercial banks in Colorado and would be­ ket. In view of the small market share of the two come the State’s third largest banking organi­ institutions and the large number of competitors zation. The first, second, and third largest banking in the market, the Board does not consider the organizations in the State now control, respec­ amount of existing competition that would be tively, about 16, 15, and 9 per cent of the total eliminated on 1-4 family residential mortgages to commercial bank deposits. be significant. In addition, since combined they Affiliated’s present subsidiary banks are all lo­ made less than $50 million in the construction cated along the populous Eastern Slope of the loans during 1972 and since the market for con­ Rocky Mountains, and operate variously in each struction loans is considered to be regional in of four major banking markets in the State. Affil­ scope, the amount of existing competition in this iated is the only large banking organization in product area that would be eliminated as a result Colorado not now represented in the Denver area. of the proposal is minimal. In the Colorado Springs market, where there are In commenting on the subject proposal, the 20 banks with $476 million in total deposits, Department of Justice indicated that some existing Applicant is the largest banking organization with banking competition and some competition in three subsidiary banks holding 31 per cent of the mortgage lending in the Denver area would be deposits. Applicant is also the largest banking eliminated. It further expressed the view that con­ organization in the Boulder market where Appli­ summation of the proposal would eliminate sig­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 683 nificant potential competition since Affiliated and result of increased financial resources which would First Colorado may be regarded as significant be available from Affiliated. This will create a potential entrants into markets which they both do stronger alternative to the four largest Denver not presently serve. In particular, the Department banking organizations which control over 60 per indicated that First Colorado was a significant cent of market deposits. The proposal should also potential entrant into the Boulder, Colorado promote overall banking competition in the State Springs, Greeley, and Fort Collins banking mar­ since entrance into Denver, the financial and com­ kets, and that consummation of the proposal would mercial center of the State, through the subject thus eliminate substantial potential competition acquisition should enhance Affiliated’s competitive between Affiliated and First Colorado in those position and make it comparable in size to the markets. The Department noted also that the State’s two larger bank holding companies already number of significant banking organizations in headquartered in Denver. Colorado would be reduced from eight to seven On the basis of the foregoing and the facts of as the result of the removal of First Colorado as record, it appears that consummation of the pro­ an independent banking organization. As dis­ posal would not substantially lessen competition cussed more fully above, the Board does not in any relevant area nor have a significantly ad­ consider the effects of the proposal on existing verse effect on existing competition, nor foreclose competition to be significant. Moreover, as dis­ the development of significant competition in any cussed below, in the Board’s judgment consum­ relevant area. The Board concludes, therefore, that mation of the proposal would not have adverse competitive considerations are consistent with ap­ effects on potential competition. proval of the application. First Colorado was originally formed in 1962 The financial conditions of Affiliated and each with three subsidiary banks. It established its of its subsidiaries are regarded as generally satis­ fourth subsidiary bank de novo in 1963, and has factory and the prospects of the group appear not made any acquisitions since that time. Fur­ favoarble. As noted previously in connection with thermore, taking into account the financial and the Board’s assessment of the prospects of First managerial resources of First Colorado and its Colorado expanding into other markets, the finan­ subsidiaries, which are discussed below, it is cial condition of First Colorado and its subsidiaries doubtful that it possesses the necessary financial is not regarded as strong and is less than the Board * resources or inclination to alter its present status regards as desirable for a bank holding company. as a Denver area holding company. In view of At the present time three of First Colorado’s sub­ these considerations, it is unlikely that the Board sidiary banks are in need of additional capital to would approve a plan by First Colorado to expand service present operations, as well as to support its operations, even if one were to be submitted, future expansion, which capital First Colorado is unless extensive measures were adopted to unable to provide without borrowing and increas­ strengthen and improve the financial condition and ing its already high level of debt. In addition, First management of First Colorado. Colorado lacks the managerial resources to ade­ With respect to the prospect of Affiliated ex­ quately staff its present banking subsidiaries. Ab­ panding into the Denver area, Affiliated does sent approval of the present proposal, the Board possess both the financial and managerial resources considers First Colorado’s future prospects to be for such expansion, either de novo or through a only fair. As a result of the consummation of this foothold acquisition, and to that extent some po­ proposal, Affiliated will be able to provide man­ tential competition between the bank holding agement personnel for First Colorado’s banking companies in the Denver area would be eliminated subsidiaries. Moreover, Affiliated plans to raise $6 as a result of this proposal. However, the Board million for recapitalization of the banks being does not regard this elimination of such potential acquired and for the future expansion of the bank­ competition to be significant, inasmuch as First ing premises of those banks. Implementation of Colorado does not appear to be an aggressive these plans should strengthen and improve the competitor in the Denver market, holding only 6.4 financial condition of First Colorado’s subsidiaries per cent of the total deposits in the Denver area. and enhance the prospects of the banks for the As a result of the consummation of the proposal, future. Therefore, the Board finds that consid­ competition in the Denver area should be enhanced erations relating to financial and managerial re­ since First Colorado’s subsidiary banks in Denver, sources lend some weight for approval of the which are not presently significant competitors due application. to their size and their impaired financial condition, There is no evidence indicating that the major should become more effective competitors as a banking needs of the areas served by the subsidiary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 banks of Affiliated or of First Colorado are not The crucial issue here is the way in which being met by the existing institutions. However, potential competition is perceived. The majority as a result of this proposal, the present subsidiaries agrees that Affiliated Bankshares is likely to enter of First Colorado should become more effective the Denver banking market eventually. However, competitors in the Denver market because of their it seems to believe that—by hastening its entry improved financial conditions. Affiliated would through sanctioning the present anticompetitive also be in a position to develop an effective corre­ merger—Affiliated will be able to compete more spondent banking division in Security National effectively with the State’s largest banking organi­ Bank (First Colorado’s subsidiary bank in down­ zations. Unfortunately, this view gives too little town Denver), and thus provide an additional weight to the fact that First Colorado is already source for such services to Colorado banks. Fur­ competing successfully in the Denver market. In thermore, as a result of the acquisition of First fact, one can think of First Colorado as a strong, Colorado, Affiliated should be able to broaden and local organization that is providing a generally generally improve its banking services throughout efficient (and profitable) banking service in rapidly Colorado, as well as providing larger overall growing sectors of the Denver market. The fact lending limits to meet the needs of larger bor­ that First Colorado is not likely to become a rowers. These considerations relating to conven­ strong, State-wide competitor is not sufficient rea­ ience and needs are regarded as being consistent son to allow it to disappear. On the contrary, there with, and lending some weight toward, approval is no compelling reason why every bank holding of the application. company should be expected to develop a State­ On the basis of the record, the application is wide network. Some will be regional in scope, approved for the reasons summarized above. The and others (because of branching restrictions) will transaction shall not be consummated (a) before operate a small number of banks in local markets. the thirtieth calendar day following the effective These small and medium-size holding companies date of this Order or (b) later than three months can also play an effective role as elements in a after the effective date of this Order, unless such progressive banking structure. By sanctioning this period is extended for good cause by the Board, merger, the majority has limited significantly or by the Federal Reserve Bank of Kansas City chances for such a structure to evolve in Colorado. pursuant to delegated authority. The long range effect of the proposal will be By order of the Board of Governors, effective to foreclose the development of significant poten­ August 9, 1973. tial competition between the two holding compa­ nies involved. Affiliated Bankshares has the finan­ Voting for this action: Vice Chairman Mitchell and Gover­ nors Sheehan, Bucher, and Holland. Voting against this action: cial resources, managerial capability, and the de­ Governor Brimmer. Absent and not voting: Chairman Burns sire to enter the Denver banking market. Prior to and Governor Daane. the submission of the present proposal, Affiliated (Signed) C hester B. Feldberg, attempted to negotiate the acquisition of two other [seal] Secretary of the Board. Denver banks, but each of those efforts eventually proved unsuccessful. If the present proposal were Dissenting Statement of denied, I have no doubt whatsoever that Affiliated Governor Brimmer would promptly initiate steps to acquire some other I would deny this application. This proposal bank in the Denver market. If those efforts failed, would merge two viable bank holding companies I believe it would establish a bank de novo. Such in a State whose banking structure is already foothold or de novo entry by Affiliated is clearly highly concentrated. The only public benefit that preferable from a competitive standpoint to the could possibily come from the merger is the present proposal. strengthening of one of First Colorado’s four banks While First Colorado would perform a useful in the Denver banking market. The evidence role even if it confined its efforts mainly to the shows clearly that its other subsidiaries are per­ Denver market, it also appears to have the capacity forming well, and their prospects are quite prom­ to extend its reach into several other markets in ising. This minor benefit is by no means sufficient eastern Colorado now served by subsidiaries of to outweigh the serious adverse effects produced Affiliated. In comments filed with the Board, the by the elimination of significant potential compe­ Department of Justice concluded that First Colo­ tition and the further increase in the concentration rado was a significant potential entrant into the of banking resources in Colorado. Boulder, Colorado Springs, Greeley, and Fort Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 685 Collins markets—each of which is now served by Citizens Bancshares of Florida, Inc., Hollywood, one or more subsidiary banks of Affiliated. In view Florida (“Citizens”), under the charter and title of Affiliated’s respective market position in each of Atlantic. of those markets (the largest banking organization Notice of receipt of the application, affording in Boulder, Colorado Springs, and Greeley and an opportunity for interested persons to submit third largest in Fort Collins), the Department con­ comments and views, has been given in accor­ cluded that the proposal would eliminate potential dance with § 3(b) of the Act. The time for filing competition in the Fort Collins market and sub­ comments and views has expired, and the Board stantial potential competition in Boulder, Colorado has considered the application and all comments Springs, and Greeley. Although First Colorado received in light of the factors set forth in § 3(c) may not have pursued a course of expansion in of the Act (12 U.S.C. 1842(c)). the past (apparently due to the need to stabilize Atlantic controls 23 banks with aggregate de­ and improve its overall financial position), it has posits of approximately $856 million representing the capacity to become a viable competitor in the 4.3 per cent of deposits of commercial banks in four markets cited above either through a foothold Florida, and is the sixth largest banking organi­ acquisition or de novo. However, as a result of zation and bank holding company in the State.1 the Board’s action today, the alternative is now Citizens controls five banks with total deposits of lost for all time and with it the hope for the about $114 million representing 0.6 per cent of development of significant competition between aggregate deposits in the State, and is Florida’s the two institutions. 23rd largest banking organization and bank hold­ In addition to having seriously adverse effects ing company. Consummation of the proposed on potential competition, consummation of the merger would result in Atlantic’s control of 4.9 proposal would aggrevate the already highly con­ per cent of total State deposits, leaving unchanged centrated banking structure in Colorado. The five its ranking as a banking organization or bank largest banking organizations in the State now holding company in the State. control slightly less than 50 per cent of the State’s All of Atlantic’s present subsidiary banks (ex­ total deposits. The combination of Affiliated (the cept for its existing West Palm Beach subsidiary) State’s fourth largest banking organization with are located in the northern two-thirds of Florida, 6.4 per cent of the deposits) and First Colorado and it is represented in several of the major bank­ (the State’s seventh largest banking organization ing markets in that portion of the State. It is with 3.9 per cent of deposits) would advance dominant in none. Citizens, on the other hand, Affiliated to the third position and give it control is concentrated in southern Florida. Four of its over 10 per cent of the total deposits in the State. subsidiaries are located in the Greater Miami The five largest banking organizations would then banking market approximated by Dade County and control about 55 per cent of total deposits. Any the southern third of Broward County, where it hope for deconcentration of such a concentrated is the eleventh largest banking organization hold­ banking structure must necessarily lie—to a large ing approximately 2 per cent of deposits; its re­ extent —in preserving a number of viable, me- maining subsidiary, a newly-established bank, is dium-size banks or bank holding companies such located in the nearby Fort Lauderdale area. Since as First Colorado. But, as a result of the Board’s the closest subsidiary banks of the proponents are action, a meaningful alternative competitor is over 40 miles apart and the remaining subsidiaries eliminated from the Colorado banking structure, are more than 125 miles apart, consummation of and the prospects for deconcentration of banking the proposal will not eliminate any significant resources in the State are seriously diminished. amount of existing competition. The Board recognizes that consummation of the ATLANTIC BANCORPORATION, proposal would foreclose the possibility that Citi­ JACKSONVILLE, FLORIDA zens would expand to become a Statewide com­ Order Approving Merger of Bank Holding petitor of Atlantic. However, considering the fi­ Companies nancial resources and capital position of Citizens, Atlantic Bancorporation, Jacksonville, Florida and the nature of Citizens’ ownership, we do not (“Atlantic”), a bank holding company within the believe that the record in this case refie a prob­ meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(5) 1 Banking data are as of December 31, 1972, and reflect bank holding company formations and acquisitions approved of the Act (12 U.S.C. 1842(a)(5)) to merge with by the Board through May 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 ability that, absent this proposal, Citizens would tion with Atlantic will enable customers of Citi­ expand to become a Statewide competitor of At­ zens’ banks to have immediate access to trust lantic in the reasonably foreseeable future. In a department services, credit cards, and international recent action involving a similar proposal between banking. Considerations relating to the conven­ two bank holding companies, the Board noted that ience and needs of the communities to be served a substantial adverse effect on potential competi­ lend some weight toward approval. It is the tion occurs only where there is a probability rather Board’s judgment that the proposed transaction is than a possibility that substantial competition in the public interest and should be approved. would develop between the banking organizations On the basis of the record, the application is involved absent the proposed affiliation.2 approved for the reasons summarized above. The With respect to the Greater Miami banking transaction shall not be consummated (a) before market, the Board believes that, absent this pro­ the thirtieth calendar day following the effective posal, it is probable that Atlantic would enter de date of this Order or (b) later than three months novo or through the acquisition of an existing bank after the effective date of this Order, unless such in that market. However, due to the structure of period is extended for good cause by the Board, banking in that market we do not believe that the or by the Federal Reserve Bank of Atlanta pursuant foreclosure of Atlantic’s entry as an independent to delegated authority. competitor would have any substantial adverse By order of the Board of Governors, effective effects on competition in that market. Banking in August 1, 1973. the Miami market is becoming more and more Voting for this action: Chairman Burns and Governors competitive. While the largest banking organiza­ Daane, Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Governor tion in the market—which is also the largest Mitchell. banking organization in Florida—holds approxi­ mately 23 per cent of market deposits, the next (Signed) C hester B. Feldberg, ten banking organizations hold market shares [seal] Secretary of the Board. ranging from approximately 9 per cent to approxi­ mately 2 per cent. D issenting Statement of While consummation of the present proposal Governor Brimmer would eliminate Atlantic as another potential en­ I would deny this application. As recently as trant, the retail banking customers in the Greater February 16, 1973, I dissented from the Board’s Miami banking market are presently served by 40 action approving the application of First Florida banking organizations. Foreclosure of the possi­ Bancorporation (59 Federal Reserve B u lletin bility of a 41st could hardly have adverse effects 183, at 185). This dissent reflected my concern on competition for retail business. As to the cus­ that Board action approving the merger of two tomer in need of wholesale and regional banking holding companies evidenced the end of a Board services, the proposal, rather than being anticom­ policy followed consistently over the last several petitive, should in fact be procompetitive by years which sought to develop a well-balanced and creating another institution in the Greater Miami competitive banking system in Florida. Today’s market with already established relationships in action is a further indication that the Board—in other parts of the State and with aggregate re­ fact—has ceased to pursue this policy. sources of nearly $1 billion. In judging the competitive effects of this acqui­ The financial conditions and managerial re­ sition, the proposal ought to be viewed as essen­ sources of Atlantic, Citizens, and their respective tially an effort to acquire a banking organization groups of banks are generally satisfactory and their with a “main office” and “branches” all operating prospects appear favorable. These considerations in the same market—the Greater Miami banking are consistent with approval of the application. market. Approval of such an acquisition consti­ The primary banking needs of the areas served tutes, I believe, a departure by the Board from by both holding companies appear to be adequately its previous well defined position emphasizing met at the present time. However, consummation foothold entry for the large Florida banking insiof the proposal would create another regional tutions. Citizens is a viable local banking institu­ organization with resources more appropriate to tion which has continued to grow and develop in meeting inter-regional needs. In addition, affilia­ its own market. Seen in this light, Citizens ob­ viously is not a proper vehicle for foothold entry. In view of the rapid growth of multi-bank hold­ 2See Application of First Florida Bancorporation, 59 Federal Reserve Bulletin, 183, at 184. ing companies in Florida, reflecting their desire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 687 to enter the State’s principal banking markets, it BankAmerica Corporation, San Francisco, Cal­ is reasonable to expect Atlantic to enter the Miami ifornia, a bank holding company within the mean­ market—a likelihood conceded by the Board’s ing of the Bank Holding Company Act, has ap­ majority. However, Citizens has no prospects, at plied for the Board’s approval, under §§ 4(c)(8) the present time, of becoming a Statewide com­ and (13) of the Act and § 225.4(b)(2) of the petitor. But this fact alone is not a sufficient reason Board’s Regulation Y, to acquire voting shares of to support its absorption. After all there is nothing GAC Finance, Inc., Allentown, Pennsylvania. inherent in the Florida banking structure that re­ GAC Finance, Inc. through its subsidiaries en­ quires every viable bank to be part of a Statewide gages in the activities of making direct loans to system. At the same time, I believe that a market consumers; purchasing sales finance paper; fi­ extension by Atlantic into the Miami area would nancing inventory of distributors of, and dealers occur regardless of the Board’s action in this case. in, various consumer durable goods through Only Atlantic’s means of entry appear s unde­ agreements with manufacturers in the case of dis­ cided: de novo or foothold. tributors and with distributors in the case of I do not regard as a foothold acquisition the dealers; servicing manufacturer-funded receiv­ proposed merger of a $100 million banking orga­ ables arising from inventory financing by certain nization. Neither did the Board until its action in manufacturers of consumer durable goods; redis­ the First Florida case. For the period 1969-72, the count financing for non-affiliated consumer sales Board approved two acquisitions in which the finance companies; and sale to its direct consumer banks that were taken over had deposits in excess borrowers of credit life and credit health and of $100 million, and it denied an equal number. accident insurance and of insurance coverage In the Miami banking market, there are undoubt­ against damage to personal property securing ex­ edly less anticompetitive points of entry. tensions of credit made by the subsidiary to its The proposed merger offers no public benefits direct consumer borrowers. Such activities have sufficient to outweigh the likely adverse competi­ been specified by the Board in § 225.4(a) of tive effects. The private benefits flowing to Citi­ Regulation Y as permissible for bank holding zens’ stockholders as a result of this proposal are companies, subject to Board approval of individual not the types of benefits the Board may properly proposals in accordance with the procedures of § weigh under the Bank Holding Company Act. The 225.4(b). parties do not claim that the merger would bring Notice of the application, affording opportunity new services not already available in the Miami for interested persons to submit comments and banking market. Those new services proposed for views on the public interest factors, has been duly Citizens’ customers through the merger (trust published (38 Federal Register 6103). The time services and credit card services among others) can for filing comments and views has expired, and be developed through correspondent banks. Citi­ the Board has considered all comments received, zens is at no measurable competitive disadvantage including those of the Department of Justice, in with respect to holding company subsidiaries in the light of the public interest factors set forth in its markets. Moreover, its ability to compete is § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). the same as that of large, independent banks and By Order dated July 27, 1973 the Board denied other small holding companes. the application, the statement of reasons therefor In my judgment, the potentially adverse effects to be issued at a later date.1 On August 3, 1973 are not outweighed by any public benefits that have Applicant filed a request for reconsideration of the been cited as likely to result from the merger of Board’s Order of denial, predicated upon more Citizens with Atlantic. I believe this application current information with respect to the financial should be denied. condition of Finance and upon commitments to divest substantially more assets and offices of Finance than originally proposed. ORDERS UNDER SECTION 4(c)(8) OF Reconsideration was granted pursuant to § BANK HOLDING COMPANY ACT 262.3(f)(6) of the Board’s Rules of Procedure (12 CFR 262.3(f)(6)) and the Board’s Order of July BANKAMERICA CORPORATION, 27, 1973 is hereby vacated. SAN FRANCISCO, CALIFORNIA Order G ranting R equest for R econ­ 1 Voting for that action: Chairman Burns and Governors sideration and A pproving Acquisition of Brimmer, Bucher, and Holland. Voting against that action: GAC Finance, Inc. Governors Mitchell, Daane and Sheehan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 During the course of its initial consideration of Industries, Inc., and all of the receivables of this application the Board received adverse com­ Finance’s Business Finance and Lease Division. ments and a request for a formal hearing from a 7. Finance will segregate on its books as soon member of the public. The request for hearing was as possible after consummation of this proposal denied by the Board, based on its conclusion that all of the receivables subject to disposition in Protestant had failed to allege the existence of paragraphs 4, 5, and 6. material factual issues particular to the application 8. Finance will file a written report with the and for other reasons communicated to Protestant. Board not later than six months following con­ An invitation was extended to Protestant to submit summation of this proposal and further written further written comments on the application for reports at not more than six month intervals there­ the Board’s consideration, but Protestant failed to after, setting forth all dispositions accomplished respond. Subsequent to the Board’s action denying during the preceding period and dispositions then the application, and while Applicant’s request for under negotiation. reconsideration was pending, Protestant again The acquisition shall not be consummated later wrote to the Board urging that it either reaffirm than three months after the effective date of this its denial or grant a formal hearing on the applica­ Order, unless such period is extended for good tion. This request for hearing, in the Board’s view, cause by the Board. This approval is subject fur­ did not present any relevant facts or considerations ther to the Board’s authority to require reports by, not presented in earlier correspondence from this and make examinations of, holding companies and Protestant. Accordingly, the request was denied. their subsidiaries and to require such modification After reconsideration of the entire record in this or termination as the Board finds necessary to matter and for the reasons summarized in the assure compliance with the provisions and pur­ Board’s Statement of this date, the § 4(c)(8) ap­ poses of the Act and the Board’s regulations and plication is hereby approved on condition that orders issued thereunder, or to prevent evasion Applicant cause Finance to accomplish the fol­ thereof. Applicant’s application to acquire the lowing plan of divestiture at the earliest practicable foreign offices of Finance under § 4(c)(13) and time and, in any event, within the time periods § 225.4(f) of Regulation Y is also approved subject set forth below: to the condition that its subsidiaries shall confine 1. Finance will cause to be liquidated and paid, their activities to international or foreign banking on the date of consummation of the proposed and other international or foreign financial opera­ transaction, all receivables from GAC Corporation tions. and its retained subsidiaries. By order of the Board of Governors, effective 2. Finance will sell within one year, as going August 14, 1973. concerns, all of its consumer loan offices located Voting for this action: Chairman Burns and Governors in the States of California, Oregon, Washington, Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland. Arizona, New Mexico, Montana, Wyoming, Idaho, North Dakota, South Dakota, Colorado and (Signed) C hester B. Feldberg, Texas and will not reenter the consumer loan [seal] Secretary of the Board. business in any of these States until such with­ drawal from all has been fully consummated. Any such reentry would require the Board’s prior ap­ Statement proval pursuant to § 4(c)(8) of the Bank Holding BankAmerica Corporation, San Francisco, Cal­ Company Act. ifornia, a bank holding company within the mean­ 3. Finance will sell within one year, as a going ing of the Bank Holding Company Act, has ap­ concern, its business of rediscounting receivables plied for the Board’s approval, under §§ 4(c)(8) of smaller finance companies. and (13) of the Act and § 225.4(b)(2) of the 4. Finance will sell, within one year, the busi­ Board’s Regulation Y, to acquire voting shares of ness and receivables of its Albuquerque, New GAC Finance, Inc., Allentown, Pennsylvania Mexico, sales finance office and will close this (“Finance”). Finance, through its subsidiaries, office. engages in the activities described in the Board’s 5. Finance will, within 18 months, dispose of Order of this date, which activities have been an additional $25 million in sales finance receiv­ specified by the Board in § 225.4(a) of Regulation ables. Y as permissible for bank holding companies, 6. Finance will sell or otherwise dispose of, subject to Board approval of individual proposals within two years, the business and assets of Trailer in accordance with the procedures of § 225.4(b). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 689 Notice of the application, affording opportunity would have possible adverse effects on potential for interested persons to submit comments and competition between Finance and Bank in the views on the public interest factors, has been duly consumer finance field. Additionally, the Depart­ published (38 Federal Register 6103) and the time ment viewed the proposal with concern as to its for filing comments and views has expired. effects on concentration of resources. In its anal­ In its Order of July 27, 1973, the Board denied ysis, the Department found that these adverse Applicant’s application to acquire Finance and effects were not outweighed by an affirmative stated that its reasons for the denial would be set showing of positive public benefits. forth in a Statement to be issued at a later date. It appears that Applicant and Finance engage Subsequently, on August 3, 1973, prior to is­ in only a minimal amount of direct competition suance of the Statement, Applicant filed a request outside the State of California. With the exception for reconsideration by the Board of its application of Applicant’s recently established de novo mort­ to acquire Finance, proposing a plan of divestiture gage banking subsidiaries in Colorado and Texas, of certain additional assets and businesses of Fi­ Applicant does not presently engage, to any sig­ nance within stated time periods if the application, nificant extent, in consumer oriented financing at on reconsideration, was approved by the Board. locations outside the State of California. Applicant On August 8, 1973, the Board granted Applicant’s does, however, have five Edge Corporations scat­ request for reconsideration and vacated its Order tered throughout the country. Within California, of July 27 denying Applicant’s proposed acquisi­ Finance operates 36 consumer loan offices and two tion of Finance. The Board has reconsidered this sales finance offices. In its original proposal, Ap­ application, all original and supplementary mate­ plicant committed Finance to divest the 36 con­ rials received in connection therewith and all sumer loan offices to an outside party promptly comments received, including those of the after consummation of the proposal. Applicant Department of Justice, in the light of the public proposed, however, to acquire and retain the two interest factors set forth in § 4(c)(8) of the Act California sales finance offices offering dealer floor (12 U.S.C. 1843(c)(8)). plan financing. The Department of Justice, in Applicant is a one-bank holding company con­ commenting on the application, stated that in its trolling the largest commercial bank in the world, opinion, the proposal could have an adverse effect Bank of America NT&SA, San Francisco, Cali­ on competition in California, even assuming the fornia (“Bank”). As of December 31, 1972, Bank divestiture, because a sale of such offices to a had total domestic deposits of $23.4 billion, rep­ substantial bank or nonbank competitor could lead resenting 36.6 per cent of the total deposits in to similar competitive problems. Divestiture to a commercial banks in California, and an additional smaller nonbank or banking organization might $12 billion in foreign deposits. Applicant currently decrease the competitive presence of Finance’s has nonbanking subsidiaries engaged principally offices in California. The Board concluded that the in computer services, software and leasing activi­ proposed initial divestiture would eliminate most ties, investment advisory services, issuance and of the adverse competitive consequences of the sale of travelers checks and mortgage banking. initial proposal in the consumer finance product Applicant does not currently have a consumer market. The two California “private brands” sales finance subsidiary. Finance had total assets of finance offices of Finance compete to a very limited more than $719 million as of December 31, 1972, extent with Applicant’s banking subsidiary in and operates 459 offices in 41 States and four making floor plan loans to finance household offices in Canady. As measured by total assets, items. This is due to the fact that the private brand Finance is the eleventh largest independent finance contracts entered into by these two offices are company in the United States. generally on a nationwide basis and thus only a In connection with its analysis of the original very small volume of the California receivables proposal, the Board had taken into account com­ represents direct competition between Applicant ments received from the United States Department and such offices. of Justice concerning the proposed transaction. In The Board next considered the question whether its comments, Justice concluded that, even consi­ consummation of the original proposal would dering Finance’s proposed divestiture of its Cali­ eliminate any significant competition in the future fornia consumer loan offices, discussed below, the between Applicant, its subsidiaries and Finance. transaction would have an adverse effect on exist­ As indicated above, Finance is one of the nation’s ing competition in the State of California. The significant competitors in the consumer finance Justice Department further found that the proposal industry, having a competitive presence in 41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 States. Applicant has recently established a pres­ that this legislation directs the Board to consider all reasonable ence in home mortgage lending outside the State ramifications of the concentration of resources in fulfilling its responsibilities under section 4.2 of California in the States of Colorado and Texas. Moreover, Bank has a long tradition of significant Congress did not provide specific criteria with innovation in the consumer credit field in Califor­ respect to the size of acquisitions which should nia. An analysis of its deposits and loans shows be disallowed to avoid an undue resources con­ that, among United States banks, it is more heavily centration. Rather, it has pointed to the dangers consumer oriented than any other bank with over involved, particularly those involving concentra­ $10 billion in assets. It thus appears quite possible tion of power relating to money and credit, and in the light of its traditional service emphasis as has directed the Board to consider “all reasonable well as its size and competitive ability, that Ap­ ramifications” in applying the standard of § plicant would, absent this proposal, commence an 4(c)(8). It was the Board’s judgment that approval expansion into other States in the consumer lend­ of the original application, involving acquisition ing field, either through establishment of consumer by the nation’s largest bank holding company of finance offices de novo or through means of foot­ a major consumer finance company with a nation­ hold entry. Moreover, the likelihood would seem wide network of offices, although a close question, to be greatest in the western part of the United raised issues of concentration in credit-granting States, in those States in close proximity to Cali­ resources that were inconsistent with the intent of fornia. The Board concluded that consummation Congress in enacting the 1970 Amendments. The of the initial proposal would have eliminated a expression of legislative intent contained in the substantial possibility that Applicant, its subsidi­ Conference Report, measured against the facts of aries and Finance would compete in various mar­ record in the case, warranted the conclusion that kets outside California in the future. The Board the concentration of resources in this instance further concluded that this constituted a possible weighed against approval of the original applica­ adverse effect to be considered under § 4(c)(8). tion. However, with respect to any individual market, In support of the application, Applicant con­ the Board cannot determine that such entry is tended that consummation of the proposal would probable or that the market is sufficiently concen­ produce public benefits in the form of significant trated that the elimination of the possibility of such improvements to Finance’s consumer credit serv­ entry would have substantially adverse effects. ices. Among such public benefits would be an Further, the Board does not regard the consumer overall strengthening and revitalization of Finance finance industry as so lacking in competition across as a consumer lending institution resulting in an the nation that it supports the judgment that any increase in competition in that market. Because acquisition can be presumed per se to affect com­ of the financial strength of Applicant, a proposed petition adversely. expansion of Finance’s lending services could be In addition to the above possible adverse effects expected in such areas as small business loans, of the original proposal, the Board was deeply loans to municipalities, financial counseling and concerned with the question of whether an undue loans to professionals and students. Other stated concentration of resources would result from ap­ public benefits include possible reduction in certain proval of this application. The Conference Report loan rates due to Applicant’s easier access to accompanying the 1970 Amendments, in discuss­ funds, probably at lower cost. Information reach­ ing this factor, states: ing the Board suggested that Finance was in serious financial difficulties, and that its ability to The danger of undue concentration of economic resources and power is one of the factors which led to the enactment of continue operations was in some question if it were this legislation, and constitutes a significant threat to the not to become affiliated with a financially strong continued healthy evolution of our free economy. American organization. The Board judged that while most trade has always operated on the principle that relationships between businessmen, large and small, should be founded on of the benefits cited would affirmatively serve the economic merit rather than monopoly power. Our national public interest, the same benefits should be policies of limited governmental regulation and interference in trade and commerce, however, do make it possible for undue achieved through a proposal which did not evi­ concentrations of resources and economic power to override dence the possible adverse effects inherent in the fundamental fairness and economic merit when responding to original proposal. The Board concluded, applying the profit motive. This possibility is enhanced when concentra­ tions of power are centered about money, credit and other the balancing test of § 4(c)(8), that Applicant’s financial areas, the common denominators of the economy. showing of public benefits had not outweighed the . . . The dangers of undue concentration of resources include, but are not limited to, specific competitive effects, which are themselves relevant factors under the Act. It should be clear 2H.R. Report No. 91-1747, p. 17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 691 possible adverse effects of the proposed acquisition after setting forth all dispositions accomplished and that, therefore, the application should be de­ during the preceding period and dispositions then nied. under negotiation. Subsequent to the issuance of the Board’s Order Applicant has requested that its petition for and prior to release of the Statement, Applicant reconsideration be taken up by the Board on an petitioned the Board for reconsideration of its emergency basis because of the exigent financial original Order. Applicant submitted a plan it be­ condition of Finance. In responding to the com­ lieved to be more acceptable to the Board, ments of the Department of Justice, Applicant proposing divestiture of certain assets, offices and pointed to the fact that its position in the consumer businesses of Finance substantially beyond that in loan industry has seriously eroded in recent years, the initial proposal. The plan contemplates a di­ with the company experiencing substantial de­ vestiture by Finance within the time periods fol­ clines in assets, net income and shareholders’ lowing consummation as set forth below: equity during the period from 1970 to 1972. More 1. Finance will cause to be liquidated and paid, recent data confirm that the trend has continued on the date of consummation of the proposed to the present as earnings for the first five months transaction, all receivables from GAC Corporation of 1973, compared to the same period in 1972, and its retained subsidiaries. are down sharply. Of greater immediate conse­ 2. Finance will sell within one year, as going quence has been the downgrading of credit ratings concerns, all of its consumer loan offices located on debt issues of Finance by two national creditin the States of California, Oregon, Washington, rating agencies since the Board’s denial of the Arizona, New Mexico, Montana, Wyoming, original application. The credit rating of Finance’s Idaho, North Dakota and South Dakota and will senior debentures was lowered by one agency not reenter the consumer loan business in any of because of inadequate earnings protection for bond these States until such withdrawal has been fully holders and lack of financial flexibility while, in consummated. a separate action, a second agency withdrew its 3. Finance will sell within one year, as going “prime” rating for commercial paper issued by concerns, 15 of its 31 consumer loan offices lo­ Finance. The latter action is of particular signifi­ cated in the State of Texas and 8 of its 16 consumer cance to the financial condition of Finance since loan offices located in the State of Colorado, the many corporate and municipal investors either offices to be divested in each State to be selected cannot or will not purchase commercial paper not so as to assure that the receivables being divested carrying a prime rating. Finance’s financial condi­ represent not less than one-half of the receivables tion and its ability to meet its near term obligations of all of Finance’s consumer loan offices in each is further impaired by excessive lending to its State as of June 30, 1973. parent organization in an attempt to ameliorate the 4. Finance will sell within one year, as a going parent’s cash flow problems. This sequence of concern, its business of rediscounting receivables events, together with other financial information of smaller finance companies. brought to the Board’s attention concerning Fi­ 5. Finance will sell within one year the business nance and its parent organization, evidences the and receivables of its Albuquerque, New Mexico, fact that Finance must be sold for cash, and sold sales finance office and will close this office. promptly, to a buyer of considerable financial 6. Finance will, within 18 months, dispose of strength to avoid the collapse of Finance and its an additional $25 million in sales finance receiv­ parent, and possibly serious financial repercussions ables. of a more general nature. The Board regards these 7. Finance will sell or otherwise dispose of circumstances to be of a sufficiently serious nature within two years the business and assets of Trailer as to warrant immediate consideration of Appli­ Industries, Inc., and all of the receivables of cant’s revised proposal. The Board therefore Finance’s Business Finance and Lease Division. granted reconsideration under § 262.3(f)(6) of its 8. Finance will segregate on its books as soon Rules of Procedure. as possible after consummation of this proposal To aid in its analysis and determination on the all of the receivables subject to disposition in revised proposal, the Board asked the Department paragraphs 5, 6 and 7. of Justice for its comments. The Department con­ 9. Finance will file a written report with the tinued to oppose the proposal, submitting that it Board not later than six months following con­ involves potential adverse competitive and con­ summation of this proposal and further written centration of resources considerations and is lack­ reports at not more than six month intervals there­ ing in significant public benefits. However, it ap­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 pears that the Department was not fully aware of to sell, as a going concern, the entire rediscount the immediate financial emergency confronting business of Finance and to divest an additional Finance and its possible consequences. $25 million in sales finance receivables and ap­ Applicant’s proposal to sell within one year all proximately $77 million in commercial financing consumer loan offices of Finance in nine western receivables. As a consequence of these actions, States besides California and one-half of Finance’s Finance’s total net receivables, using June 30, consumer loan offices in the States of Colorado 1973, data, will be reduced from $575.7 million and Texas in large measure eliminates the Board’s to $296 million and its national rank, in terms of earlier expressed concern over the question of total net receivables, among all independent fi­ probable future competition between Applicant, its nance companies would drop from eleventh to subsidiaries and Finance. Applicant must be re­ twentieth position. In light of the extensive dives­ garded as a likely entrant into the consumer fi­ titures to be accomplished by Applicant in this nance industry and this is particularly true in those case, the possible dangers of an undue concentra­ States closest to California where the competitive tion of resources are significantly lessened and the presence of Applicant’s banking subsidiary is most Board no longer views this factor as warranting keenly felt. While this proposal substantially di­ the degree of adverse weight initially assigned. minishes the Board’s concerns regarding adverse The public benefits reasonably expected to result competitive effects, retention of any offices in from approval of the revised proposal remain es­ Colorado or Texas would continue to raise com­ sentially the same as when first considered by the petitive problems due to Applicant’s present com­ Board with the exception of those related to the petitive presence in those States exemplified by condition of Finance and its parent. Developments Applicant’s present mortgage subsidiaries in those in the intervening days have demonstrated the States. Divestiture of all consumer loan offices validity of the previously expressed fears as to the held by Finance in California and in all 11 western fragility of the structure of borrowed funds relied States closest to California, including all such upon by Finance. It is imperative that Finance be offices in Colorado and Texas, would achieve a sold immediately to avoid possible severe eco­ significant geographic separation between Appli­ nomic consequences and to insure its continuation cant and the office facilities of the company to as a viable competitor. Acquisition and subsequent be acquired. Therefore, consummation of the pro­ partial divestiture by Applicant will insure that posal on condition that a divestiture of this nature survival as well as preserve the existing number takes place would reduce substantially the possible of possible competitors in the western United adverse effect on probable future competition as States. Additionally, entry of Applicant with its a factor to be considered under § 4(c)(8). Further­ record of innovation in the consumer field should more, the Board believes that such a divestiture produce public benefits in the eastern United is practical as finance company offices and their States. The Board concludes that the reasonably assets are more readily marketable than banks, for expected public benefits from this revised proposal example. outweigh possible adverse effects. In its consideration of the original proposal, the Board was also concerned with the question of undue concentration of resources. The initial pro­ Concurring Statement of posal, if approved, would have permitted affilia­ Governors M itchell, Daane and Sheehan tion of Applicant’s banking subsidiary, which We have joined our colleagues in voting to operates more than 1,000 branches in California, approve the amended proposal, but our approval with a company retaining 423 consumer loan of­ of the original proposal indicates that we found fices in 40 States from coast to coast. The instant no adverse effects and substantial public benefits proposal constitutes a substantial reduction in the associated with it. resources to be acquired by Applicant; it will The Board’s Statement in this matter indicates accomplish significant geographic separation of that the divestiture of the California offices of office facilities and significant reductions in both Finance was sufficient to remove any question of assets and offices acquired by Applicant. As con­ elimination of direct competition that might have ditioned by the Board’s Order of this date Appli­ existed. Neither the original nor the revised pro­ cant must sell, as going concerns, all of Finance’s posal raised any substantial questions in this re­ 128 consumer loan offices in 12 western States gard. and must close its sales finance offices in New Our colleagues reserved their greatest concern Mexico. In addition, Applicant will be required for the issue of undue concentration and it is on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 693 that issue that we differ most sharply with them. to some degree sales finance companies, retailers, As the majority Statement indicates, the legislative and savings and loans are competing. In these local history provides little guidance as to the meaning arenas competition is ordinarily vigorous and in­ of the term “undue concentration of resources.” dividual market shares modest. While the market However, what little discussion of the term took may be structured by risk, size and type of loan, place appears to have been concerned with con­ so that not all of these competitors confront one centration in particular product lines an d particular another, in our judgment the record does not markets rather than generalized bigness per se. reflect concentration in any particular market. The record in this case does not reflect, and the In short, we concluded that consummation of Board’s decision is not premised upon, a high the original proposal would have had no substan­ degree of concentration in any particular market tial adverse effects on competition nor, in our but appears premised upon the absolute size of view, would it have created an undue concentra­ Applicant. tion of resources. Against this lack of adverse Applicant has worldwide gross resources of effect we concluded that consummation of the $40.8 billion. However, Applicant’s size on a original proposal would have had very substantial, worldwide or a nationwide basis is not really reasonably expected, benefits to the public. relevant to a geographic expansion of its activities As the Board’s Statement reflects, Bank of in the consumer credit field. Moreover, Appli­ America has a long and excellent record of inno­ cant’s size must be considered in the light of the vation and high standards in the provision of structure of the commercial banking industry. As services to consumers. For example, it pioneered an industry it is relatively unconcentrated with in perfecting the bank credit card for consumers many large units competing actively in numerous and was one of the earliest bank lenders to con­ financial markets for the business of individual, sumers for the purchase of automobiles and other corporate and governmental customers. In terms consumer durables. It is one of the most highly of total U.S. banking deposits, Applicant has 3.3 consumer oriented of the large commercial banks. per cent of the business; the four largest companies Its present volume of instalment loans is 12.8 per account for only 9 per cent of business; the eight cent of its total loans outstanding and compares largest for 14 per cent; and the 20 largest for only to an average of 7.3 per cent for banks with 21 per cent. Similar ratios for the top 20 firms deposits in excess of $10 billion. in numerous major industries are well in excess A proposal such as the present one allows Ap­ of 50 per cent. The consumer finance industry, plicant to meaningfully expand its services to interestingly enough, is more concentrated than consumers outside the State of California and there commercial banking, and one consequenc e of is every reason to expect that Applicant would Applicant’s entry outside the State of California prove to have a beneficial effect upon the industry. would be to lessen concentration in an industry For example, Applicant has committed itself to where the four largest firms control 38 per cent explore every possibility for the reduction of loan of the business. rates charged to certain classes of borrowers. It With respect to the consumer credit product appears that a reasonable estimate of the percent­ line, the result of the proposal will be far from age of loans at the typical finance company which creation of an undue concentration. While Bank would be considered “bankable” is 30 to 50 per of America had $1.8 billion in consumer credit cent or more. While a consumer finance company outstanding as of December 31, 1972, most of it in many instances charges up to 36 per cent for was California business. Any concentration prob­ such a loan, the typical bank rate would be 12 lem arising from Applicant’s share of the con­ to 14 per cent. Any such reductions by Applicant sumer finance industry is limited to California, and would surely have a competitive impact, and, any possible aggravation of that problem by the when one considers that the total credit outstanding proposed acquisition was taken care of by the by consumer finance companies exceeds $32 bil­ initial proposed divestiture of Finance’s California lion, even a small reduction in rates would have operations. The Applicant’s share of the nation’s a substantial beneficial impact upon consumers. consumer instalment business was 1.4 per cent and In addition to Applicant’s record of innovation the addition of Finance’s 0.2 percentage points is in consumer-oriented services, we believe that an insignificant addition to this total. bank holding company entry into the consumer A distinct lack of concentration is evident in finance industry can reasonably be expected to most consumer markets. In each of these markets produce increased benefits to the public. These other finance companies, commercial banks, and include the ability to provide capital to strengthen Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 consumer finance competition and the ability to the Board has considered all comments received obtain a more stable flow of funds at lower interest in light of the public interest factors set forth in rates than are presently available to many con­ section 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). sumer finance companies. Both of these attributes Applicant controls nine banks, with aggregate should permit benefits in the form of lower interest deposits of $8.0 billion, representing 7.4 per cent rates for customers of consumer finance compa­ of the total deposits in commercial banks in New nies. York State, and is the sixth largest banking orga­ These are the public benefits to which we gave nization and bank holding company in the weight for approval of the initial proposal. As we country.1 Within New York State, Applicant is the found no adverse effects emanating from the initial fifth largest banking organization. Applicant’s lead proposal, we approve the amended application bank, Bankers Trust Company of New York, has with the judgment that while the impact of another deposits of $7.4 billion and is the seventh largest effective competitor—Bank of America—has been bank in the United States. In addition to its bank­ removed in several States, it will still be of public ing subsidiaries, Applicant’s six nonbanking sub­ benefit in those States where the majority has given sidiaries are engaged in mortgage banking, real its approval. estate investment trust management, equipment leasing and brokering, small business investing, and extension of credit through use of a credit BANKERS TRUST NEW YORK card. CORPORATION, NEW YORK, NEW YORK Public Loan, established in 1933, is a familyheld small loan company, with total assets of Order Denying Acquisition of Public Loan approximately $72 million and net receivables of Company $54 million (as of June 30, 1972). Ranked by total capital funds, Public Loan is the 66th largest Bankers Trust New York Corporation, New finance company and 40th largest noncaptive fi­ York, New York, a bank holding company within nance company in the country. Headquartered in the meaning of the Bank Holding Company Act, Binghamton, New York, it controls nine whollyhas applied for the Board’s approval, under section owned subsidiaries, operates 28 small loan offices 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)), and in New York, 32 in Pennsylvania, and one in New § 225.4(b)(2) of the Board’s Regulation Y, to Jersey. Other activities engaged in by Public Loan acquire all of the voting shares of Public Loan are the following: Sales financing, engaged in by Company, Inc., Binghamton, New York (“Public Loan”). Public Loan, operating through its sub­ two subsidiaries, Beacon Discount Company and Public Discount Company, which business is sidiaries, engages in making consumer finance and being discontinued; commercial lending and sales finance loans (including the purchase of retail equipment leasing, through another wholly-owned instalment contracts). Also, through two whollysubsidiary, Thrift Credit Corporation, which will owned subsidiaries, Empire Life Insurance Com­ be sold or liquidated before Public Loan is ac­ pany (“Empire Life”) and Commonwealth Life quired; and reinsuring credit life insurance and Insurance Company (“Commonwealth Life”), credit health and accident insurance covering the both located in Wilmington, Delaware, Public borrowers of Public Loan. Applicant proposes that Loan is engaged in underwriting, as reinsurer, Public Loan’s activities would be confined to its credit life and credit accident and health insurance small loan business with related credit life rein­ in connection with loans made to Public Loan’s surance. borrowers. Such activities have been determined A threshold question in the consideration of this by the Board to be closely related to banking (12 application is whether consumer finance compa­ CFR 225.4(a)(1) and (10)). Thrift Credit Corp., nies compete with commercial banks in the area a wholly-owned subsidiary of Public Loan en­ gaged in commercial lending and equipment leas­ of small loans to individuals. It has been contended that there are principally two factors which reflect ing, will be disposed of prior to the acquisition an absence of competition between these types of of Public Loan by Applicant. organizations: (1) different statutory limitations Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly 1A1I banking data are as of December 31, 1972, and reflect published (38 Federal Register 5206). The time bank holding company formations and acquisitions approved by the Board through June 30, 1973. All other data are as for filing comments and views has expired, and of December 31, 1971, unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 695 with respect to the size of loan that can be made;2 The relevant product markets in which the and (2) a different clientele being served by each Board analyzes the competitive aspects of the type of organization. Our experience, however, in proposed transaction are: (1) personal loans of applying section 4(c)(8) of the Bank Holding $1,400 or less, and (2) all direct consumer instal­ Company Act to the many consumer finance ap­ ment loans, the latter including personal loans and plications processed since enactment of the 1970 automobile, mobile home, and home improvement Amendments leads us to conclude that the acqui­ and modernization loans. sition of a consumer finance company by a com­ While Applicant and Public Loan compete for mercial banking organization may result in the consumer loans (which includes both personal elimination of existing competition in those geo­ loans and consumer instalment loans) in several graphic markets in which both compete. markets in New York State, where Public Loan The statutory lending limit, $1,400 for con­ is the sixth largest licensed lender as of year-end sumer finance companies in New York State, 1971, the Board is concerned with the conse­ allows for direct competition between consumer quences resulting from affiliation only in the finance companies and commercial banks. The Binghamton and Jamestown markets. It is only in $1,400 limit, however, masks the fact that the these markets that the competitive effects are suf­ actual amount of credit obtained may be higher ficiently serious as to represent an adverse factor by a customer borrowing from more than one weighing against approval of the proposed trans­ licensed lender, a practice known as “doubling action. up”. Also, in this instance, a borrower living in The Binghamton market3 encompasses the the Binghamton area may choose to secure credit Triple Cities Area of Binghamton, Endicott, and in Pennsylvania, as from Public Loan’s Montrose Johnson City. Competing in that market are 33 office, which has a $3,500 limit. These facts, lending institutions (15 commercial banks, 7 fi­ among others of record, lead us to conclude that nance companies, and 11 credit unions), including finance companies are an alternative credit source the main office and two branches of Applicant’s for personal loans, as well as loans to finance the Binghamton banking subsidiary and six offices of purchase of automobiles and home improvements Public Loan. Public Loan’s Montrose, Pennsyl­ and other loans traditionally made by commercial vania, office is also included in the Binghamton banks. market. In terms of personal loans under $1,400, The contention that commercial banks serve a Public Loan was the largest lender in the market different clientele from finance companies is be­ with $5.2 million in loans outstanding and 18.6 coming less and less valid as commercial banks per cent of the market; Bankers Trust of Bing­ place more emphasis on retail banking and seek hamton was the 15th largest, with $327,000 and to attract a greater diversity of customers. There 1.2 per cent of the market. Upon consummation, appears to be a substantial class of customers being Applicant would control 19.8 per cent of the served by both institutions, consisting of the high- market and be nearly equal in size to the next two risk margin clientele of commercial banks and the largest competitors, both of which are commercial low-risk margin customers in the case of finance banks. In terms of all direct consumer instalment companies. A few consumer finance companies, loans, Public Loan and Bankers Trust of Bing­ which confine their operations to small loans made hamton are the third and fourth largest competitors to the very high risk sector of the market, would in the market (the first two competitors are banks) not generally be regarded as competing with com­ and hold 7.2 per cent ($5.6 million) and 6.2 per mercial banks. Public Loan, however, is not of cent ($4.9 million), respectively. If approved, this category. Its very favorable loan write-off Applicant would be the second largest supplier of experience shows that Public Loan does not serve such loans in the market. the high-risk market, but rather, lends to many The second geographic market in which there of the same clientele as are served by Applicant’s will result a loss of existing competition is the banking subsidiaries. Jamestown market.4 Bankers Trust of Jamestown 2In New York, Public Loan can make consumer instalment 3 Approximated by Broome and Tioga Counties plus the loans up to $1,400; in Pennsylvania, the limitation is $600 Town of Green in Chenango County and the northern half under a small loan license or $3,500 under a consumer discount of Susquehanna County in Pennsylvania. license. Commercial banks in New York State can make instalment loans up to $10,000; in Pennsylvania, up to $5,000. 4 Approximated by the southern half of Chautaugua County (As of December 31, 1971, commercial banks in New York and the southwestern third of Cattaraugus County, in effect, State were subject to a $5,000 ceiling.) the Jamestown banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 operates its head office and seven branches in this tion of resources, decreased or unfair competition, market, while Public Loan has one office, at conflicts of interests or unsound banking prac­ Lakewood. Public Loan’s service area is encom­ tices.” The basic balancing test of section 4(c)(8) passed by the service area of Bankers Trust of requires a showing of positive public benefits that Jamestown. Suppliers of credit in this market also outweigh the adverse effects of the proposed ac­ number 33 lending institutions (4 commercial quisition described above. Applicant must bear the banks, 4 finance companies, and 25 credit unions). burden of demonstrating that the proposed non­ With respect to personal loans under $1,400, Pub­ banking activity will be in the public interest.5 In lic Loan ranked third in the market with 13.9 per seeking to meet this burden, Applicant has claimed cent of market loans ($1.4 million) while Bankers that consummation of the proposal would produce Trust of Jamestown was fourth with 10.1 per cent the following benefits: ($1.0 million). Upon consummation, Applicant (1) ready access to funds by Public Loan at would be the largest supplier of funds and would competitive rates and with greater assurance of account for 24 per cent of the small personal loan availability; business—nearly 50 per cent more than the next (2) replacement of family management by an largest competitor in the market. Three of the five aggressive corporate management interested in largest competitors in this market are commercial expanding the volume, scope, and character of banks. With respect to all direct consumer instal­ their services to the public; ment loans outstanding, Bankers Trust’s subsidi­ (3) referral of customers for small loans to ary is the largest in the market with 19.8 per cent Public Loan and of those requiring loans in excess of market loans ($4.7 million); Public Loan ranks of $1,400 to Applicant’s banking subsidiaries; fifth with an even 6 per cent ($1.4 million). After (4) expansion in types of insurance offered and consummation, Applicant’s banking subsidiary reduction in the cost of credit insurance offered would continue to rank first with nearly 26 per through Applicant’s banking subsidiaries; and cent of all direct consumer instalment loans. (5) reduction in cost of credit insurance to Commercial banks are also heavily represented in customers of Public Loan. this product market as the three largest competitors The public benefits claimed by Applicant, in the are of this category. Board’s view, fall short of outweighing the ad­ Because of the elimination of substantial exist­ verse competitive effects which would result from ing competition in both the Binghamton and approval of the proposed transaction. Public Loan Jamestown markets, it is the Board’s judgment that appears to be of adequate size and financial these competitive consequences are an adverse soundness to obtain necessary financing at com­ factor weighing against approval of the proposed petitive rates. Moreover, any difference in the cost transaction. Further, while the consumer finance of funds to Applicant and to Public Loan would industry is characterized by ease of entry, the probably not be large enough to have a significant proposed acquisition would solidify the market effect on the rates charged to customers of Public positions of Applicant and Public Loan in the Loan. With respect to the management of Public Binghamton and Jamestown markets. Neither Loan, there is no evidence of record to demon­ market has shown rapid growth and neither is strate that family management has in any way particularly attractive for de novo entry in view lessened the ability of the company to grow and of anticipated moderate population growth. In prosper. Jamestown, the acquisition would eliminate the The proposed referral system cited by Appli­ only possible vehicle for entry by acquisition be­ cant, in practice, may have quite the opposite cause the remaining consumer finance companies effect to that expected by the Board when a bank are national firms and presumably not interested holding company is permitted to acquire a con­ in being acquired by a potential entrant. Accord­ sumer finance company. The Board expects that ingly, approval would serve to foreclose market the acquisition of a consumer finance company by entry by outside organizations. Section 4(c)(8) of the Bank Holding Company Act requires the Board to find that the performance 5 The House Conference Report on the 1970 Amendments by Public Loan as an affiliate of Applicant “can to the Act (Report No. 91-1747) states at page 19: “In connection with the overall application of the public reasonably be expected to produce benefits to the benefits test, it is important to emphasize that the bank holding public, such as greater convenience, increased company making application under section 4(c)(8) must bear the burden of proof in showing that its carrying on of a competition, or gains in efficiency that outweigh particular nonbank activity would produce benefits to the public possible adverse effects, such as undue concentra­ that outweigh any adverse effects.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 697 a bank holding company will result in positive improvements in policy terms occur, the public benefits to the public such as greater availability benefits. of consumer credit and a lowering of the finance It is the Board’s judgment, applying the balanc­ rates previously charged by the acquired consumer ing test under section 4(c)(8) of the Act, that finance company. The use of referrals may, how­ Applicant has failed to meet the burden of demon­ ever, instead of benefitting the public, have the strating that benefits to the public would outweigh contrary effect of enabling Applicant to divert the adverse effects which would result from ap­ eligible bank borrowers to Applicant’s consumer proval of the application. For the most part, the finance subsidiary. benefits cited are not supported by objective facts Applicant proposes upon approval of this appli­ of record or backed by firm policy commitments cation to expand the quality and range of insurance on the part of Applicant. Accordingly, since the coverage available to customers of its subsidiary public interest factors do not outweigh the possible banks as well as to reduce rates on credit insur­ adverse effects, the application is hereby denied. ance. The provision of these benefits, however, By order of the Board of Governors, effective is not dependent upon consummation of the Public August 3, 1973. Loan acquisition. Applicant can expand the quality Voting for this action: Chairman Burns and Governors and range of credit insurance presently made Mitchell, Brimmer, Sheehan, Bucher, and Holland. Voting available to its customers and at lower premium against this action: Governor Daane. rates without the affiliation of Public Loan. (Signed) Chester B. Feldberg, A final benefit cited by Applicant results from [seal] Secretary of the Board. the underwriting activity of Public Loan, as rein­ surer, of credit life and credit accident and health Dissenting Statement of insurance which is directly related to its extensions Governor Daane of credit. Applicant has indicated that the proposed underwriting activities would include underwriting I dissent from the majority’s action denying the such insurance for its banking subsidiaries as well. acquisition of Public Loan by Applicant. In my Applicant does not presently engage in insurance estimation, the lack of significant competition be­ underwriting activities and the proposed affiliation tween banks and consumer finance companies such with Applicant would appear to have no significant as Public Loan, the large number of lenders in effects on competition within the industry. the geographic areas where Applicant and Public In adding credit life to the list of permissible Loan both make consumer loans, and the small activities for bank holding companies, the Board proportion of Public Loan’s business derived from stated that: Binghamton and Jamestown make the possible adverse effects far too small to outweigh the public To assure that engaging in the underwriting of credit life and benefits that would derive from the acquisition. credit accident and health insurance can reasonably be expected to be in the public interest, the Board will only approve Although consumer finance companies and applications in which an Applicant demonstrates that approval commercial banks both offer direct instalment will benefit the consumer or result in other public benefits. Normally such a showing would be made by a projected loans to consumers, they may, and frequently do, reduction in rates or increase in policy benefits due to bank serve different types of customers. In this case holding company performance of this service. (12 CFR Public Loan can make direct instalment loans only 225.4(a)( 10)) up to $1,400. Most automobile loans and mobile Applicant has stated that upon consummation home loans are for amounts greater than $1,400. of the proposed acquisition, the rate reductions for Small loan companies, such as Public Loan, spe­ accident and health insurance in Pennsylvania, cialize in the lending of small amounts of money New York, and New Jersey, which have among and they are permitted to charge much higher the lowest rate ceilings in the nation, would range interest rates than banks. Commercial banks may from approximately 3 per cent in Pennsylvania on be reluctant to make small consumer loans because policies for less than 3 years to 2 per cent in New of the cost of making and servicing such loans York and New Jersey. In the credit life insurance in relation to the interest rates they are permitted area, the rates presently charged will be reduced to charge. Applicant has stated that as a matter by Applicant by amounts varying from approxi­ of policy its banking subsidiaries do not make mately 1 per cent to 6 per cent in the various states. consumer instalment loans below $800. Additionally, Applicant would waive the suicide While I am aware of the competition figures clause with respect to policies taken out in Penn­ cited by the majority, I am unable to conclude sylvania. To the extent such reductions occur and that approval of this proposal would result in an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 appreciable elimination of competition since visory and loan servicing facilities to Applicant. Jamestown and Binghamton are both served by Company, organized in 1969, is presently en­ 33 lending entities including banks, finance com­ gaged in leasing nuclear fuel cores and capital panies and credit unions. Furthermore, the bulk equipment, including production machinery, fleets of Public Loan’s loans (approximately 90 per cent) of trucks and automobiles, electronic data pro­ are outstanding in areas apart from Jamestown and cessing equipment and noncommercial aircraft. Binghamton. Company generally leases such equipment for a Under these circumstances, it is my opinion that noncancellable term of one year, with monthly the public interest would be served by approval renewals thereafter.1 It appears that such leases of the acquisition of Public Loan by Applicant. would not be in compliance with the Board’s Applicant is interested in expanding the volume, leasing regulation and interpretation, which re­ scope, and character of the services offered and quire the lessor to recover in full its acquisition in assuring an increased availability of funds to cost of leased equipment through rentals, esti­ Public Loan and its customers at competitive rates. mated salvage value, and estimated tax benefits This should benefit customers throughout the areas during the initial term of the lease (12 CFR served by Public Loan, including the areas now 225.4(c)(6) and 225.123(d)). However, Com­ served by Applicant’s present banking offices. pany’s leases further provide that in the event the lease is terminated prior to full-payout recovery, CHEMICAL NEW YORK CORPORATION, the equipment is sold and the lessee is obligated NEW YORK, NEW YORK to reimburse Company for any deficiency between the sale price and the unrecovered portion of the Order Denying Acquisition of CNA Nuclear acquisition cost of the leased equipment. Where Leasing, Inc. there is such an unconditional obligation, guaran­ Chemical New York Corporation, New York, teeing full-payout recovery, by a bona-fide lessee New York, a bank holding company within the which clearly has the financial resources to meet meaning of the Bank Holding Company Act, has such obligation, as in the case of Company’s applied for the Board’s approval, under § 4(c)(8) lessees, the Board will permit reliance on such of the Act and § 225.4(b)(2) of the Board’s Regu­ obligation in determining whether a lease transac­ lation Y, to acquire voting shares of CNA Nuclear tion meets the full-payout requirement of the Leasing, Inc. (“Company”), Boston, Massachu­ Board’s leasing regulation and interpretation. setts, a company that is engaged in full-payout Company also proposes to engage in coal and leasing of personal property and equipment. Such other natural supply financing agreements whereby activity has been determined by the Board to be company would purchase coal or other natural closely related to the business of banking (12 CFR resources at the direction of a utility company and 225.4(a)(6)). Applicant has also applied for au­ the utility company would, each month, pay thority of Company to engage in financing the Company the amount of the acquisition cost of acquisition of coal piles and other natural resource the coal or other natural resources estimated to financings as an activity closely related to the be consumed by the utility during the month plus business of banking pursuant to 12 CFR a financing charge, adjusted to reflect any excess 225.4(a)(1). or deficiency between the amount estimated to be Notice of the application, affording opportunity consumed and the amount actually consumed in for interested persons to submit comments and the preceding month. Based on the foregoing and views on the public interest factors, has been duly other conditions contained in the agreement the published (29 Federal Register 8099). The time Board considers such coal or other natural resource for filing comments and views has expired, and agreements to be a form of extension of credit all those received have been considered. permissible under § 225.4(a)(1) of Regulation Y. Applicant, the fourth largest banking organi­ zation in New York, controls four banks with *No opinion has been obtained from the Internal Revenue aggregate domestic deposits of $9.8 billion, rep­ Service that these leases would be characterized as a “lease” resenting approximately 9 per cent of the total rather than a “conditional sale” for tax purposes. However, deposits in commercial banks in the State. (All since Company does not take accelerated tax depreciation on its leased property and the investment tax credit for such banking data are as of December 31, 1972.) Ap­ property is passed through to the lessees, it is represented that plicant also has a nonbanking subsidiary engaged the Company’s federal income tax liability would appear to be substantially identical whatever the characterization. Fur­ in extending short-term land development and thermore, even if viewed as a “conditional sale” the activity construction loans to borrowers and providing ad­ would be permitted under § 225.4(a)(1) of Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 699 Applicant, through its lead subsidiary bank, is million to $250-$300 million during 1973. By the engaged in personal property leasing activities end of 1974, at which time Company projects its primarily in the metropolitan New York area and lease portfolio will have grown to $350-$400 mil­ also nationwide. Company is engaged in leasing lion, Applicant anticipates that it will reduce its equipment nationwide. Although there is some direct financial support to Company. Applicant competitive overlap between Company’s leasing expects that Company will be free of all need for business and that of Applicant’s lead subsidiary financial support from Applicant within eight bank, the Board finds that consummation of this years, by which time its lease portfolio could proposal would not eliminate any significant exist­ expand to as much as $750 million. Even assuming ing or potential competition due to the somewhat Applicant’s favorable projections, it is clear that different nature of the leasing activities engaged the acquisition of Company would require Appli­ in by Applicant’s lead subsidiary bank and Com­ cant to commit substantial and continuing amounts pany, the relatively low barriers to entry into this of funds to support Company’s growth. business, the large number of competitors, and the The proposal involves a method of financing small market shares held by Applicant and Com­ comparatively long-term assets with short-term pany. debt. As discussed above, due to the low equity In its consideration of an application to acquire base of Company, the market will not finance its a nonbanking company under § 4(c)(8) of the Act, commercial paper obligations at a rate which the Board is required to consider whether per­ makes the proposal economically viable without formance of the activity by an affiliate of a holding a guarantee. In fact, Company is being sold by company can reasonably be expected to produce its present parent due to the large amounts of benefits to the public such as greater convenience, financing required, limitations on the amount of increased competition, or gains in efficiency that commercial paper it could issue, and the cost of outweigh possible adverse effects such as undue back-up bank lines of credit to support such paper. concentration of resources, decreased or unfair Thus, success of the proposal requires directly the competition, conflicts of interest, or unsound backing of the assets of Applicant and indirectly banking practices. the strength and reputation of its major subsidiary, Company has grown rapidly since its inception, Chemical Bank. increasing its total assets from approximately $35 The Board has on numerous occasions stated million at year-end 1970 to approximately $210 that one of the primary purposes of a holding million at year-end 1972. However, Company has company is to serve as a source of financial a very high level of debt in relation to equity strength for its subsidiary banks. In the Board’s capital. As of December 31, 1972 total liabilities judgment a proposal such as the present to acquire were 74 times total equity. Because of its low an extremely leveraged company with very heavy equity capital base and consequent severe limita­ requirements for funds could seriously impair that tions on its capacity to absorb any losses, the ability. With respect to the instant application, investment community has apparently been un­ Company’s need for funds, even assuming no willing to finance Company’s operations at the growth, will require Applicant to increase its prime commercial paper rate without the guarantee short-term borrowing by a substantial amount, i.e. of its parent, CNA Financial Corporation.2 As of to the point where Applicant’s current liabilities December 31, 1972, the total amount of Com­ would exceed current assets by a considerable pany’s outstanding commercial paper so guaran­ margin if subsidiary banks are not consolidated. teed was $175 million. Upon acquisition by Ap­ Chemical Bank has experienced rapid growth. plicant, Applicant would advance funds to Com­ Between year-end 1970 and year-end 1972 its pany to finance its existing lease portfolio as assets increased from $11.0 billion to $15.3 bil­ Company’s outstanding commercial paper ma­ lion. Even assuming that there is little growth in tures. nonbanking activities in its system, such growth These advances would be financed on a short in the future will require Applicant to supply term basis by the issuance of Applicant’s own additional capital to its banks. An application such commercial paper. Applicant estimates that Com­ as the present, which substantially reduces the pany’s lease portfolio would grow from $205 margin between debt use and debt capacity, would impair the ability to provide such capital. The Board recognizes the public benefits that 2The risk involved is that of default and liquidity since the attach to the availability of suitable financing for payments on the leases vary with the interest rate on the commercial paper. nuclear fuel cores. However, the Board finds that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 there are a number of firms presently offering State.1 Applicant’s lead bank, The Blount National nuclear core financing and that there are no rea­ Bank of Maryville (“Bank”), Maryville, Tennes­ sonably expected public benefits in this particular see (deposits of $50.9 million), is the smaller of case such as greater convenience, increased com­ two banks in Blount County and controls 45.5 per petition, or gains in efficiency that outweigh the cent of bank deposits therein. Both of the banks aforementioned possible adverse effects. in Blount County are located in Maryville, a town Based upon the foregoing and other consid­ of approximately 14,000 persons, situated 15 erations reflected in the record, the Board has miles south of Knoxville, Tennessee and falling determined that the public interest benefits that the within the Knoxville SMSA. Bank had outstanding Board is required to consider under § 4(c)(8) do consumer instalment loans of the types made by not outweigh possible adverse effects. Accord­ consumer finance companies of $1.6 million as of ingly, the application is hereby denied. June 30, 1972, representing 12.2 per cent of By order of the Board of Governors, effective outstanding consumer loans held by banks and June 29, 1973. consumer finance companies located in Blount County as of that date. Voting for this action: Chairman Burns and Governors Contrary to the implications contained in its Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland. corporate title, Company (assets of $1.6 million) (Signed) C hester B. Feldberg, does not operate as a savings and loan association. [seal] Assistant Secretary of the Board. It is an industrial loan and thrift company and has so served the Maryville area for over 40 years. TENNESSEE NATIONAL BANCSHARES, Company issues “certificates of indebtedness” INC., MARYVILLE, TENNESSEE and with funds derived thereby makes signature, personal property, co-signor, and second mortgage Order Denying Acquisition of M aryville loans. Company operates out of a single office Savings and Loan Corporation in Maryville and had outstanding consumer loans (an industrial loan and thrift company) of $939 thousand as of December 31, 1972. Com­ pany is the third largest of 10 consumer finance Tennessee National Bancshares, Inc., Mary­ companies in Blount County with 12.7 per cent ville, Tennessee, a bank holding company within of the outstanding loans of the consumer finance the meaning of the Bank Holding Company Act, companies. As Company’s sole office is located has applied for the Board’s approval, under § only several blocks from the main office of Bank, 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s both offices draw customers from the same local Regulation Y, to acquire 90 per cent or more of service area. Approval of this transaction would the voting shares of Maryville Savings and Loan increase Applicant’s share of outstanding con­ Corporation (an industrial loan and thrift com­ sumer loans made in the Maryville area from pany), Maryville, Tennessee (“Company”), a approximately 12 per cent to approximately 19 per company that engages in the activities of an in­ cent, remove an alternative source of consumer dustrial loan company, including the making of credit, and eliminate direct competition for con­ loans, the sale of credit life insurance and credit sumer loans between Applicant’s lead bank and accident and health insurance in connection Company. Accordingly, the Board finds that the therewith, the sale of comprehensive physical proposed acquisition would have adverse effects damage insurance on certain personal property on competition. taken as security in connection with loans, and Section 4(c)(8) of the Bank Holding Company the borrowing of funds at interest as provided by Act requires the Board to find that performance the applicable law. Such activities have been de­ by Company as an affiliate of Applicant “can termined by the Board to be closely related to reasonably be expected to produce benefits to the banking (12 CFR 225,4(a)(2) and (9)(ii)(a)). public such as greater convenience, increased Notice of the application, affording opportunity competition, or gains in efficiency that outweigh for interested persons to submit comments and possible adverse effects, such as undue concentra­ views on the public interest factors, has been duly tion of resources, decreased or unfair competition, published (38 Federal Register 10679). The time conflicts of interest or unsound banking prac­ for filing comments and views has expired, and tices.” The basic balancing test of § 4(c)(8) renone has been timely received. Applicant controls two banks with aggregate deposits of $56.3 million, representing 0.5 per *A11 banking data and data pertaining to Company are as cent of total commercial bank deposits in the of December 31, 1972, unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 701 quires a showing of positive public benefits that Applicant controls 79 banks1 located in Minne­ outweigh the adverse effects of the proposed ac­ sota, Montana, Nebraska, North Dakota, South quisition described above. Applicant has the bur­ Dakota, Wisconsin, and Iowa, with aggregate de­ den of demonstrating that the proposed acquisition posits of $4.8 billion. Forty-nine of the banks are will be in the public interest. In seeking to meet located in the State of Minnesota and together hold this burden, Applicant indicates that affiliation total deposits amounting to $2.78 billion or ap­ would increase the financial resources available to proximately 24 per cent of total commercial bank Company. Also, Applicant anticipates establishing deposits in the State.2 Applicant is the second additional offices for Company. However, upon largest banking organization in the State of Min­ consideration of the aforementioned anticompeti­ nesota. tive factors, the Board finds that the public benefits Evensen advises State and local governmental to be derived from this affiliation do not outweigh units in Minnesota, Wisconsin, North Dakota, the adverse competitive effects of the proposal. South Dakota, Iowa, and Nebraska. More than 70 Based on the foregoing and other considerations per cent of its business derives from clients in the reflected in the record, the Board has determined State of Minnesota, and, during 1971, Evensen that public interest benefits which the Board is advised on 20.8 per cent of the bonds issued by required to consider under § 4(c)(8) of the Act State and local government units in Minnesota, do not outweigh the adverse effects. Accordingly, based on the face amount of such bond issues. the acquisition is hereby denied. Evensen, with gross receipts of $315,000 for its By order of the Board of Governors, effective fiscal year ended September 30, 1971, ranks as August 21, 1973. the largest such bond adviser in Minnesota. Although subsidiaries of Applicant engage in Voting for this action: Chairman Burns and Governors the underwriting of certain State and local govern­ Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governors Daane and Holland. ment bond issues and the provision of related services to issuers of such securities, neither Ap­ (Signed) Theodore E. Allison, plicant nor any of its subsidiaries engage in the [seal] Assistant Secretary of the Board. business of providing advice concerning bond is­ NORTHWEST BANCORPORATION, suance to State and local governments. Evensen does not engage in the underwriting of bond issues MINNEAPOLIS, MINNESOTA nor any other activity engaged in by Applicant. Order Conditionally Approving Acquisition Accordingly, consummation of the proposed of T. G. Evensen & Associates, Inc. transaction would have no adverse effect on exist­ ing competition in any line of commerce. To the Northwest Bancorporation, Minneapolis, Min­ contrary, such consummation may have a benefi­ nesota, a bank holding company within the mean­ cial effect on existing competition by foreclosing ing of the Bank Holding Company Act, has ap­ the possibility of a merger of Evensen with one plied for the Board’s approval, under section of its existing competitors. Each of Evensen’s 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s principal competitors, prior to the making of this Regulation Y, to acquire all of the voting shares application, separately offered to acquire the of T. G. Evensen & Associates, Inc., Min­ shares that Applicant here seeks to acquire. neapolis, Minnesota (“Evensen”), a company that In the Board’s opinion, Applicant is not a likely engages in the activity of providing financial ad­ de novo entrant into State and local governmental vice to State and local governmental units. Such bond issuance advising. The economic incentive activity has been determined by the Board to be for such entry is not great, as may be adduced closely related to banking (12 CFR 225.4(a)(5)). from the fact that there are only six firms in the Notice of the application, affording opportunity nation engaged solely in this line of commerce. for interested persons to submit comments and Evensen itself has been in the business for fortyviews on the public interest factors, has been duly four years and is considered a major bond consul­ published (37 Federal Register 5775). The time tant in the Minneapolis area. Yet, its average for filing comments and views has expired, and the Board has considered all comments received, including those received at an oral presentation on 1 There is presently pending before the Board an application by Applicant to acquire one bank located in the State of Iowa, the application, held at the Federal Reserve Bank with aggregate deposits of approximately $75 million. Appli­ of Minneapolis on October 17, 1972, in the light cant recently received approval to acquire two other banks in Iowa with deposits of $43 million. of the public interest factors set forth in section 4(c)(8) of the Act (12 U.S.C. 1843(c)). 2Deposit data are as of December 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 annual earnings over the last five years approxi­ were it to receive objective advice. The protestants mate only $47,000. The barriers to entry into the further contend that, as a result of the affiliation, bond consultant business are high, not in terms Applicant’s subsidiaries possibly would have of capital and licenses, but rather in terms of the access to confidential information, provided to degree of highly-specialized expertise necessary to Evensen by State and local governments, and that properly advise State and local governmental units access to such information could give Applicant’s on the issuance of bonds. It appears that successful subsidiaries unfair advantages over their competi­ advising requires a combination of skills in the tors, particularly in the area of bidding on bond assessment of financial needs of clients, familiarity issues and the formation of underwriting syndi­ with public finance and tax laws, and a thorough cates. The consequence of such possibilities, and current knowledge of bond markets. In brief, should they come to fruition, would enable Appli­ considerably more is required of a qualified bond cant to subsidize the fees of Evensen with the adviser than is required of a bond salesman. The revenues derived from such activities, according Board has no doubt that Applicant has the financial to the protestants, with the ultimate consequence and managerial resources to eventually develop the of threatening the survival of the protestants that required expertise within its own organization. compete with Evensen. Thus, they contend, the However, absent the hiring away of qualified per­ affiliation creates a possibility for unfair competi­ sonnel from existing firms, it may take a consid­ tion. erable time to do so and significant losses may Section 4(c)(8) of the Act directs the Board to be expected to be incurred during the start-up consider “possible” adverse effects of proposed period. Given the lack of significant profit potential acquisitions. However, the amount of weight to described above, it is the Board’s judgment that be accorded to “possible” adverse effects in the the likelihood that Applicant will pursue the de balancing process that is contemplated by section novo route is remote. 4(c)(8) depends directly upon the likelihood of the Three competitors of Evensen and one bank occurrence of such effects.3 Presumably the busi­ engaged in the underwriting of State and local ness ethics of both Evensen and Applicant and the governmental bond issues (hereinafter collectively likelihood, attested to by both sides of the instant referred to as “the protestants”) have opposed the controversy, that, should an affiliated adviser en­ subject application asserting that consummation of gage in any of the questionable practices asserted the proposed transaction would have the possible by the protestants, its reputation would be so adverse effects of conflicts of interests, misuse of damaged as to bring into question its future busi­ confidential information, and unfair competition. ness survival,4 lessen the likelihood that possible However, the protestants have expressly indicated conflicts of interests would be realized. that they in no way question the ethics or integrity Of the more than 2500 issues on which Evensen of either Applicant or Evensen, which are of the has advised over the past 43 years, 98 per cent highest order. Rather, their concern, as is that of were sold on the basis of published invitation for the Bank Holding Company Act, is with “possible competitive sealed bids. The competitors of Even­ adverse effects.” Briefly stated, the protestants sen that have objected to this application have contend that any affiliation between a bond is­ admitted that they have had a similar experience. suance adviser and a bank holding company In fact, even where competitive bids are not re­ creates conflicts of interests, primarily between the quired by law, it is Evensen’s general practice, advisory role and the roles of subsidiaries of the as well as that of the adviser industry generally, holding company as potential underwriters, paying to recommend the use of competitive bid proce­ agents, depositories of bond proceeds, and invest­ dures in the case of all issues with general market ment outlets for bond proceeds. In the case of any appeal. Where such procedures are used, the abil­ such affiliation, they contend, and economic in­ ity of the adviser to unfairly influence the issuer centive is present for the affiliated adviser to fal­ in the selection of an underwriter is therefore sify, distort or withhold information from, and color or frame advice to, State and local govern­ 3 Statement of Board accompanying Order Conditionally mental units in such a way as to encourage those Approving Proposal of NCNB Corporation to Operate a Trust clients either to utilize the services of the affiliates Company in South Carolina, 1973 Federal Reserve Bulletin of the adviser where independent advice and in­ 305, at 306 (March 9, 1973). formation would suggest otherwise or to take those 4This may account for the fact that, despite the provision of advice to tax-exempt bond issuers by many municipal bond services on terms or conditions less favorable to underwriters, the protestants, under direct questioning at the the client than might be obtainable by the client oral presentation, cited no actual instance of the abuses alleged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 703 considerably diminished. However, where com­ especially in view of the conditions that the Board petitive bid procedures are not used, that is, where is imposing as part of its approval. In the Board’s issues are sold by negotiation between the issuer judgment, Applicant’s acquisition of Evensen will and possible underwriters, the possibility of undue enable Evensen to geographically expand into influence by the adviser is both obvious and real. areas where issuers are not presently served by The Board, therefore, in approving this applica­ advisers. The benefit to the public from sound tion, conditions such action on Applicant and its financial management of State and municipal fi­ subsidiaries refraining from participation in the nances is obvious, and needs no detailed explana­ sale of Evensen-advised issues that are not sold tion here; an expansion in the supply of competent pursuant to competitive bids. In addition, in order financial advice to meet such needs is, therefore, to ensure the confidentiality of information in a strong public benefit. Furthermore, consumma­ Evensen’s possession, the Board conditions its tion would make available to Evensen capital and approval on Evensen refraining from making any other resources to maintain and increase Evensen’s information with respect to its clients available to specialized staff, improve and expand its product Applicant or its subsidiaries not available at the market and, in some measure, provide an orderly same time to others. solution to a management succession problem oc­ Conflicts of interests between Applicant’s dual casioned by the age of Evensen’s founder and sole role as adviser-paying agent, adviser-depository, owner. and adviser-investment outlet may arise if Even­ Before, during, and after the oral presentation sen, as a subsidiary of Applicant, advises issuers held at the Federal Reserve Bank of Minneapolis, as to the selection of paying agents, depositories, referred to above, protestants raised two proce­ or investment outlets. However, it is Evensen’s dural objections to the Board’s processing of this general practice and that of the adviser industry, application: (1) They contended the Board should generally, to recommend that the purchaser of the have held a formal trial-type hearing with right bonds, rather than the issuer, designate the paying to cross-examine and subpoena witnesses; and (2) agent. This being the case, it appears that Evensen that the Board’s regulation (section 225.4(a)(5) of has no influence over such designation. Similarly, Regulation Y) which permits bank holding com­ it is Evensen’s general practice to refrain from panies, subject to the provisions of section participation in the selection of depositories for 225.4(b), to provide financial advice to State and the proceeds of bond issues, and, rather than local governments, was improperly adopted and recommend a particular interim investment for the should be declared invalid. The Board believes proceeds of an issue until needed, to recommend that both of such contentions are without substance that the issuer seek informal competitive bids for and, for the reasons hereinafter stated, protestants’ such proceeds and accept that bid providing the requests that a formal hearing be held and for highest return. However, there is nothing to assure invalidation of section 225.4(a)(5) are denied. that Evensen’s present practices in these regards Prior to 1970, section 4(c)(8) permitted the would continue if the proposed transaction is con­ Board to act only “after due notice and hearing, summated. Therefore, the Board conditions its and on the basis of the record made at such hearing approval of the instant application upon the con­ by order . . That section was specifically tinuation of these practices. Further, the Board amended by the Bank Holding Company Act believes that prospective clients should be alerted Amendments of 1970 to delete the requirement to the affiliation of Evensen and Applicant and also that the Board act only after a hearing and “on conditions its approval upon the requirement that the basis of the record” at such hearing. Accord­ such affiliation be clearly disclosed on all adver­ ingly, since the hearing requirements of the Ad­ tising and letterheads. In addition, in order to ministrative Procedure Act apply only to a “case obviate any possibility that Evensen will compete of adjudication required by statute to be deter­ unfairly with its other competitors, the Board mined on the record” (5 U.S.C. 554(a)), the conditions its approval upon the requirement that Board does not believe a formal trial-type hearing Evensen shall continue to offer its services on an is required where protests are filed to an applica­ explicit fee basis. tion under section 4(c)(8) of the Act. Further, a In accordance with the Congressional directive review of the 196-page transcript of the oral pre­ contained in section 4(c)(8), the Board has exam­ sentation that was held at the Federal Reserve ined the public benefits that may be expected to Bank of Minneapolis and the voluminous addi­ result from approval of the application and finds tional exhibits and briefs submitted by participants that they outweigh any “possible adverse effects”, leads the Board to conclude that the Board’s pro­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 cedures in this case met the Congressional inten­ precise terms [the Board’s] intent in permitting tion of providing “opportunity for hearing” in bank holding companies to act ‘as investment or section 4(c)(8) of the Act and did not deprive the financial adviser’ ” and that the Administrative protestants of their “due process of law” rights Procedure Act requirements of notice and public provided by the Fifth Amendment to the United participation “were not followed with respect to States Constitution. Commercial National Bank of this matter because it clarifies rather than changes Little Rock v. Board of Governors of the Federal a substantive rule”. A review of the history of Reserve System, 451 F. 2d 86 (8th Cir. 1971); this regulatory provision indicates that the re­ Kirsch v. Board of Governors of the Federal quirements of the Administrative Procedure Act Reserve System, 353 F. 2d 353 (6th Cir. 1965); for notice and public comment and hearing were and Northwest Bancorporation v. Board of Gov­ clearly followed by the Board with respect to the ernors of the Federal Reserve System, 303 F. 2d adoption of section 225.4(a) in 1971 and that the 832 (8th Cir. 1962). In addition, protestants mis­ regulation, as then adopted, would have permitted construe the Board’s Rules of Practice for Formal the activity in question. Accordingly, and for other Hearings (12 CFR 263) as authorizing subpoena reasons, the Board is of the opinion that its 1972 of witnesses. Those Rules (12 CFR 263.7) action was within the exemption provided by sec­ authorize the subpoena of witnesses only where tion 553(b) of the Administrative Procedure Act the statute, pursuant to which a formal hearing for “interpretive rules” and that prior notice and is held, authorizes subpoena of witnesses; the public participation was unnecessary. Continental Bank Holding Company Act contains no such Oil Co. v. Burns, 317 F. Supp. 194 (D. C. Del. authorization. 1970); Garelick Mfg. Co. v. Dillon, 313 F. 2d The Board has also considered protestants’ 899 (D. C. D. C. 1963); Sav-On Drugs, Inc. v. claim that they need the right of cross-examination Cunes, 12 P & F Admin. Law 2d 848 (D. C. to bring out certain information with respect to N. J. 1962). Furthermore, even assuming ar­ the application (transcript pages 157-59, and 172; guendo that the Board’s 1972 action was invalid, protestants’ Memorandum in Opposition to Appli­ protestants may not be heard to complain because cation, pages 8, 13, and 19). The Board concluded the Board has the authority to proceed with respect that such issues are either immaterial to the to applications under section 4(c)(8) “by order or Board’s decision, are not susceptible to cross-ex­ regulation” and, as indicated above, protestants amination, or have been rendered moot in light have had ample opportunity to participate in this of the Board’s conditional approval. proceeding. In sum, the Board concludes that protestants Based upon the foregoing and other consid­ were given ample opportunity to be heard, that erations reflected in the record, the Board has their views were fully considered and understood determined that the balance of the public interest by the Board in reaching its decision, that they factors the Board is required to consider under are not legally entitled to a formal trial-type hear­ section 4(c)(8) is favorable. Accordingly, the ap­ ing, and that it would have served no useful plication is hereby approved, provided; (1) Even­ purpose to hold such a hearing in connection with sen shall not make available to Applicant or its this application. other subsidiaries any information with respect to In addition, protestants question the validity of its clients not available at the same time to others; the Board’s action of June 6, 1972 (37 F.R. 11771) (2) the affiliation of Evensen and Applicant shall when it amended section 225.4(a)(5) of Regulation be clearly disclosed on all advertising and letter­ Y to, inter alia, specifically provide that bank heads; (3) Evensen shall continue to offer its holding companies may, subject to the procedures services on an explicit fee basis; (4) where Evenof section 225.4(b), “act as investment or finan­ sen-advised issues are not to be sold pursuant to cial adviser to the extent of . . . (v) providing competitive bids, Applicant and its other subsidi­ financial advice to State and local governments, aries may not participate in their sale; and (5) such as with respect to the issuance of their Evensen shall continue its practices of (i) recom­ securities’\ (Emphasis added) Prior to the mending that the purchaser of the bonds be au­ amendment, the Regulation was more generally thorized to name the paying agent; (ii) refraining worded and contained the word “including” after from participation in the selection of a depository “acting as investment or financial adviser” rather for the bond proceeds; and (iii) recommending that than the more limiting term “to the extent of”. the issuer obtain bids before selecting an interim At the time of the 1972 amendment, the Board investment outlet for bond proceeds. This order stated that its purpose was “to indicate in more is also subject to the conditions set forth in section Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 705 225.4(c) of Regulation Y and to the Board’s au­ adverse effects from consummation of this acqui­ thority to require such modification or termination sition (and I concur in their efforts to minimize of the activities of a holding company or any of such possible adverse effects). However, I dis­ its subsidiaries as the Board finds necessary to agree with my colleagues as to their conclusion assure compliance with the provisions and pur­ that the benefits to the public would outweigh such poses of the Act and the Board’s regulations and adverse effects. orders issued thereunder, or to prevent evasion In my opinion, Applicant has the financial and thereof. The transaction shall not be consummated managerial resources to commence this activity de later than three months after the effective date of novo. Further, if it is to pursue the acquisition this Order, unless such period is extended for good route, it should not be permitted to acquire the cause by the Board, or by the Federal Reserve largest independent firm in the market. Either the Bank of Minneapolis, pursuant to delegated au­ de novo route or the acquisition of a less prominent thority granted herewith. firm would have a more beneficial effect on com­ By order of the Board of Governors, effective petition for these services than is presented by the August 16, 1973. present application. As Congress has recognized: Voting for this action: Chairman Burns and Governors One of the asserted justifications for permitting bank holding Daane, Sheehan, Bucher, and Holland. Voting against this companies to engage in activities that the Board has determined action: Governor Brimmer. Absent and not voting: Governor independently to be closely related to banking, is to permit Mitchell. the introduction of new innovative and competitive vigor into (Signed) C hester B. Feldberg, those markets which could benefit therefrom. Where a bank holding company enters a market through acquisition of a major [seal] Secretary of the Board. going concern, it may not have the incentive to compete vigorously, thereby bringing the possible benefits into play, as it would immediately succeed to what it might consider Dissenting Statement of its fair share of the market. On the other hand, where a bank Governor Brimmer holding company enters a new market de novo, or through acquisition of a small firm, as opposed to acquisition of a I would deny this application. Northwest Ban­ substantial competitor, its desire to succeed in its new endeavor corporation is a well-established multi-bank hold­ is more likely to be competitive. (H. Rep. No. 1747, 91st ing company with excellent management and large Cong., 2d Sess. at page 17) financial resources. It is the second largest banking In the delicate weighing process that the Board organization in the State of Minnesota and also is compelled to undertake in an application of this controls banks in Montana, Nebraska, North Da­ kind, I do not find that the public benefits present kota, South Dakota, Wisconsin and Iowa. I share in this application are strong enough to sustain its the views of the majority that there are possible approval. ORDERS NOT PRINTED IN THIS ISSUE During August 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Banks(s) date) citation The Central Texas Financial Cor­ First National Bank in Brown- 8/16/73 38 F.R. 22676 poration, Brownwood, Texas wood, Brownwood, Texas 8/23/73 Citizens Bancshares Corporation, Citizens Trust Company, 8/2/73 38 F.R. 21529 Atlanta, Georgia Atlanta, Georgia 8/9/73 The First National Agency of Aitkin, The First National Bank of 8/20/73 38 F.R. 23016 Inc., Aitkin, Minnesota Aitkin, Aitkin, Minnesota 8/28/73 First Newton Bankshares, Inc., First National Bank, 8/23/73 38 F.R. 23559 Topeka, Kansas Newton, Kansas 9/31/73 First Wyoming Bancorporation, The First National Bank of 8/17/73 38 F.R. 22828 Kemmerer, Wyoming Kemmerer, Kemmerer, 8/24/73 Wyoming Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY—Cont. Board action Federal (effective Register Applicant Banks(s) date) citation Great Lakes Bancorp, Inc., Industrial State Bank and Trust 8/14/73 38 F.R. 22677 Kalamazoo, Michigan Co., Kalamazoo; The 8/23/73 Owosso Savings Bank, Owosso; and Alpena Savings Bank Alpena, all in Michigan Mid-America Fidelity Corporation, Ann Arbor Bank, 8/2/73 38 F.R. 21529 Ann Arbor, Michigan Ann Arbor, Michigan 8/9/73 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation ASB Investment Company, Great Lakes Bancorp, Inc., 8/14/73 38 F.R. 22676 Flint, Michigan Kalamazoo, Michigan 8/23/73 Barnett Banks of Florida, Inc., Edison National Bank in Fort 8/8/73 38 F.R. 22186 Jacksonville, Florida Myers, Fort Myers, Florida 8/16/73 First Amtenn Corporation, First National Bank of Tulla- S/3/13 38 F.R. 21824 Nashville, Tennessee homa, Tullahoma, Tennessee 8/13/73 First New Mexico Bankshare Grant County Bank 8/20/73 38 F.R. 23017 Corporation, Albuquerque, Silver City, New Mexico 8/28/73 New Mexico The Fort Worth National Corpora­ Commercial Bank & Trust Co., 8/23/73 38 F.R. 23559 tion, Fort Worth, Texas Midland, Texas 8/31/73 The Fort Worth National Corpora­ The First State Bank of Strat­ 8/16/73 38 F.R. 22823 tion, Fort Worth, Texas ford, Stratford, Texas 8/23/73 General Financial Systems, Tri-City Bank, 8/16/73 38 F.R. 22824 Riviera Beach, Florida Palm Beach Gardens, Florida 8/24/73 Great Lakes Holding Company, Great Lakes Bancorp, Inc., 8/14/73 38 F.R. 22677 Kalamazoo, Michigan Kalamazoo, Michigan 8/23/73 Hawkeye Bancorporation of Des Farmers Savings Bank, 8/23/73 38 F.R. 23560 Moines, Des Moines, Iowa Grundy Center, Iowa 8/31/73 Northwest Bancorporation, Bettendorf Bank and Trust 8/2/73 38 F.R. 21530 Minneapolis, Minnesota Company, Bettendorf, Iowa 8/9/73 and Security State Bank, Keokuk, Iowa Third National Corporation, The Union Bank, S/2/13 38 F.R. 21530 Nashville, Tennessee Pulaski, Tennessee 8/9/73 United Banks of Colorado, Inc., United Bank of Skyline, Na­ 8/16/73 38 F.R. 22826 Denver, Colorado tional Association, Denver, 8/23/73 Colorado United First Florida Banks, Inc., Davenport State Bank, 8/6/73 38 F.R. 21827 Tampa, Florida Davenport, Florida 8/13/73 United First Florida Banks, Inc., First State Bank of Lutz, 8/21/73 38 F.R. 23364 Tampa, Florida Lutz, Florida 8/29/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 707 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board actionF ederal Nonbanking Company (effective Register Applicant (or activity) date) citation Citizens and Southern Holding Citizens and Southern Mortgage 8/31/73 38 F.R. 24932 Company, Inc., Atlanta, Georgia Company Inc., and Citizens 9/11/73 and Southern Factors Inc., Atlanta, Georgia The First National Agency of Aitkin, The First National Bank of 8/20/73 38 F.R. 23016 Inc., Aitkin, Minnesota Aitkin, Aitkin, Minnesota 8/28/73 Marine Bancorporation, Triway Finance Co., 8/14/73 38 F.R. 22581 Seattle, Washington Portland, Oregon 8/22/73 Pan American Bancshares, Inc., Atico Financial Corporation, 8/16/73 38 F.R. 22831 Miami, Florida Miami, Florida 8/23/73 South Carolina National Corporation, Provident Financial Corpora- 8/16/73 38 F.R. 22825 Columbia, South Carolina tion, Sanford, North Carolina 8/23/73 Wells Fargo & Company, Wells Fargo Mortgage 8/31/73 38 F.R. 25234 San Francisco, California Company, San Francisco, 9/12/73 California ORDER UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation Mountain Bank, Mountain Trust Bank, 8/8/73 38 F.R. 22187 Roanoke, Virginia Roanoke, Virginia 8/16/73 ORDERS ISSUED BY FEDERAL RESERVE BANKS During August 1973, applications were approved 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 Board action Federal (effective Register Applicant Bank(s) Reserve Bank date) citation Midlantic Banks, Inc., Midlantic National Bank New York 8/24/73 38 F.R. 23989 Newark, New Jersey of Somerset, Ber­ 9/5/73 nards ville, New Jersey Dominion Bankshares Corporation, The First National Ex­ Richmond 8/16/73 38 F.R. 22827 Roanoke, Virginia change Bank of 9/24/73 Montgomery County, Blacksburg, Va. United Virginia Bankshares, United Virginia Bank of Richmond 8/22/73 38 F.R. 23561 Incorporated, Richmond, Virginia Charlottesville, Char­ 8/31/73 lottesville, Virginia Union Bancshares Company, The Peoples-Merchants Cleveland 8/16/73 38 F.R. 23837 Steubenville, Ohio Trust Company, 9/4/73 Canton, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation American Bancshares, Inc., Executive Bank of Fort Atlanta 8/16/73 38 F.R. 23015 North Miami, Florida Lauderdale, Fort 8/28/73 Lauderdale, Florida American Bancshares, Inc., The Seminole Bank of Atlanta 8/1/73 38 F.R. 21958 North Miami, Florida Tampa, Tampa, 8/14/73 Florida American Bancshares, Inc., University City Bank, Atlanta 8/1/73 38 F.R. 21958 North Miami, Florida Gainesville, Florida 8/14/73 Exchange Bancorporation, Inc. First Gulf Beach Bank Atlanta 8/16/73 38 F.R. 23016 Tampa, Florida and Trust Company, 8/28/73 St. Petersburg Beach, Florida Exchange Bancorporation, Inc. Madeira Beach Bank, Atlanta 8/16/73 38 F.R. 23015 Tampa, Florida Madeira Beach, 8/28/73 Florida ORDER UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank Reserve Bank date citation Peoples Bank of Stark County, The Peoples-Merchants Cleveland 8/16/73 38 F.R. 23837 Canton, Ohio Trust Co., 8/23/73 Canton, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF June 21-27, based on total deposit levels 2 weeks earlier. The marginal reserve does not apply to The Board of Governors of the Federal Reserve deposits of these types totaling less than $10 System announced the following promotions and million, which are still subject to the regular appointment to the official staff of the Division reserve requirement. of International Finance, effective September 10, The 11 per cent marginal reserve require­ 1973: ment—the regular 5 per cent plus a supplemental Helen B. Junz and George B. Henry have been 6 per cent—applies to increases in the level of promoted from Assistant Advisers to Associate affected deposits since the week ending May 16. Advisers. Since that time, commercial banks have in­ Norman S. Fieleke, Vice President and Econo­ creased their holdings of large CD’s, bank-related mist, Federal Reserve Bank of Boston, has taken commercial paper, and finance bills by about $15 a leave of absence from the Bank to accept a billion. An increase in the marginal reserve re­ temporary appointment as an Assistant Adviser. quirement to 11 per cent means that banks with Mr. Fieleke, who holds a Ph. D. degree from these deposits are required to maintain about $450 Harvard University, joined the Bank’s research million in additional reserve requirements. staff in September 1967. Member banks will be required to maintain the 11 per cent marginal reserve requirement during MARGINAL RESERVE REQUIREMENTS ON the week of October 4-10, based on deposit levels LARGE CD’S 2 weeks earlier. In a further move to curb the rapid expansion in bank credit, the Board of Governors announced AMENDMENTS TO REGULATION Q on September 7, 1973, an increase in its marginal The Board of Governors has announced two reserve requirements on large-denomination cer­ amendments to Regulation Q. Regulation Q deals tificates of deposit. with the payment of interest on deposits at Federal The action increased the marginal reserve re­ Reserve member banks. quirement from 8 per cent to 11 per cent, effective September 20. The first action, effective September 10, defines The growth this year in bank credit has been any amendment to a time deposit contract that financed in large part by bank sales of certificates results in an increase in the interest rate, or a of deposit of $100,000 and over, and similar change in the maturity of the deposit, as a with­ money market instruments. Total bank loans have drawal of funds subject to penalty. increased at a more than 20 per cent annual rate The amendment to Regulation Q would treat any since midyear and bank loans to business firms change in a time deposit contract—generally, cer­ have increased even more rapidly during this in­ tificates of deposit—that results in an increase in terval. the rate of interest to be paid, or that changes the On May 16, the Board imposed an 8 per cent maturity of the deposit, as a withdrawal before marginal reserve requirement—the regular 5 per maturity. The penalty for early withdrawal of cent plus a supplemental 3 per cent—on further deposits would therefore apply. increases in (1) time deposits in denominations of The early withdrawal penalty differs according $100,000 and over and (2) bank-related commer­ to the date on which the time deposit contract was cial paper. Similar reserve requirements were sub­ entered into: sequently applied to funds raised by banks through For time deposit contracts entered into, or the sale of finance bills. amended, or renewed after July 5, 1973 (when Banks have been required to maintain this added a new schedule of maximum interest rates on reserve requirement beginning with the week of time deposits went into effect), the penalty is Digitized for FRASER 709 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 in two parts: (a) a reduction of the rate of OVERSEAS BRANCHES OF MEMBER BANKS: interest paid to the maximum permissible pass­ ASSETS AND LIABILITIES book rate for the entire time the deposit has been Total assets of the overseas branches of member held, and (b) a loss of 3 months’ interest. banks increased by $10.4 billion, or 15 per cent, For all other time deposits, the old penalty during 1972 to a total of $77.4 billion, the Board rule applies. This states that a bank may pay of Governors announced in releasing data showing a time deposit before maturity only in an emer­ balance sheet items of overseas branches at the gency where early withdrawal is necessary to beginning and end of the year. At the end of 1972, prevent great hardship to the depositor, plus 627 branches were in operation in foreign coun­ forfeiture of up to 3 months’ accrued, unpaid tries and overseas territories, an increase of 50 interest. branches during the year. The tabulations (which are available upon re­ The second amendment, which went into effect quest) show as separate items the amounts due on September 18, relates to disclosure of the from and due to other overseas branches of the penalty provision for early withdrawal of time same bank. Omitting these offshore interoffice deposits. It requires member banks to: claims, assets of the branches increased by $17.1 1. Disclose in advertising regarding interest billion, or 31 per cent. This growth was again paid on time deposits that Federal law and regula­ principally accounted for by branches in Europe tion prohibit the payment of a time deposit prior (particularly those in London) and in the Bahamas. to maturity unless substantial interest is forfeited. Loans at overseas branches expanded by $8.6 The following language is suggested for this state­ billion, or 31 per cent, during 1972. In addition, ment: cash assets increased by $9.8 billion (48 per cent), “Federal law and regulation prohibit the pay­ again reflecting continued expansion of time ment of a time deposit prior to maturity unless placements with other banks in Eurocurrency three months of the interest thereon is forfeited markets. and interest on the amount withdrawn is reduced The data are derived from reports of condition to the passbook rate.” filed at the end of the year with the Comptroller For radio or television commercials, the fol­ of the Currency and the Federal Reserve System lowing language is suggested: and differ in certain respects from other statistical “Substantial interest penalty is required for reports covering aspects of overseas branch opera­ early withdrawal.” tions. The assets and liabilities shown are payable 2. Give to each bank customer who enters into in U.S. dollars as well as in currencies of the a time deposit contract a written statement speci­ countries where the branches are located and in fying that the customer has contracted to keep other foreign currencies. funds on deposit for a fixed period of time, and describing how the early withdrawal penalty ap­ ADMISSION OF STATE BANK TO MEMBERSHIP plies to time deposits, in the event the bank permits IN THE FEDERAL RESERVE SYSTEM payment before maturity. The following bank was admitted to membership The early withdrawal penalty subject to the in the Federal Reserve System during the period disclosure provision is in two parts—(a) a reduc­ August 16, 1973, through September 15, 1973: tion of the rate of interest paid to the maximum permissible passbook rate for the period the de­ Florida posit is held, and (b) a loss of 3 months’ interest. Bradenton.............................First Security Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication September 14 Industrial production declined 0.2 per cent in Au­ INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 gust and, at 126.2 per cent of the 1967 average, was 8.5 per cent above a year earlier. The August decline reflected a sharp curtailment in production of auto and truck assemblies due to special factors. Apart from autos and trucks, the index increased by 0.5 per cent. Auto assemblies for August were scheduled at 610,000 units—an annual rate of 10.3 million units and the same as in July—but parts shortages, plant shutdowns because of extreme heat, and some work stoppages curtailed actual production to 470,000 cars, an annual rate of 8.0 million units. In early September, output of autos and 1967 1969 1971 1973 trucks increased sharply. Output of consumer durable goods declined due F.R. indexes, seasonally adjusted. Latest figures: August. to a drop in auto production, while a rise in business equipment was slowed by the decline in truck output. Production of auto and truck as­ Exclusive of trucks, output of business equip­ semblies combined was down 23 per cent during ment rose about 1.5 per cent. The increase in total August. Production of industrial materials rose business equipment was 0.3 per cent, reflecting only slightly further. Output of household appli­ a 25 per cent drop in truck assemblies. Output ances, television sets, and furniture was main­ of construction products increased, but production tained at record levels, while production of non­ of steel, other durable goods materials, and non­ durable consumer goods advanced further. durable materials was up only marginally. Seasonally adjusted Percentage 1967 =100 change from- Industrial production 1972 1973 June to Month Year July ago ago Aug. June Julyp Aug.e Total index ......................................................................... 116.3 125.6 126.5 126.2 .7 - .2 8.5 Market groupings: Final products ................................................................ 112.6 121.2 122.1 121.0 .7 - .9 7.5 Consumer goods ....................................................... 124.3 131.8 132.3 130.3 .4 -1.5 4.8 Business equipment ................................................ 107.2 122.1 123.5 123.9 1.1 .3 15.6 Materials ......................................................................... 118.8 129.1 130.6 130.9 1.2 .2 10.2 Industry groupings: Manufacturing ................................................................ 115.4 125.7 126.2 125.7 .4 - .4 8.9 Durable goods ........................................................... 109.7 123.1 123.4 122.2 .2 -1.0 11.4 Nondurable goods ................................................... 123.6 129.3 130.3 130.7 .8 .3 5.7 Mining and utilities ..................................................... 124.8 127.7 129.1 130.6 1.1 1.2 4.6 pPreliminary. eEstimated. Digitized for FRASER 711 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 Member bank reserves, Federal Reserve Bank credit, and related items A 7 Federal funds—Major reserve city banks A 8 Reserve Bank interest rates A 9 Reserve requirements A 10 Maximum interest rates; margin requirements A 11 Open market account A 12 Federal Reserve Banks A 14 Bank debits A 15 U.S. currency A 16 Money stock A 17 Bank reserves; bank credit A 18 Commercial banks, by classes A 24 Weekly reporting banks A 29 Business loans of banks A 30 Demand deposit ownership A 31 Loan sales by banks A 31 Open market paper A 32 Interest rates A 35 Security markets A 36 Stock market credit A 37 Savings institutions A 39 Federally sponsored credit agencies A 40 Federal finance A 42 U.S. Government securities A 45 Security issues A 48 Business finance A 49 Real estate credit A 54 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 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 (annual flows through H1 1973; assets and liabilities through 1972) 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 A 104 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 I, II, S Sources of funds u Uses of funds III, IV Quarters * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Semiannually Issue Page Annually—Continued Issue Page Banking offices: Flow of funds: Analysis of changes in number Aug. 1973 A-96 Assets and liabilities: On, and not on, Federal Reserve 1961-72 ............................... Sept. 1973 A-71.14—A-71.28 Par List, number ................. Aug. 1973 A-97 Flows: 1966-H1 1973 .................... Sept. 1973 A-70—A-71.13 Annually Bank holding companies: List, Dec. 31, 1971 ............... June 1972 A-98 Banking offices and deposits of Income and expenses: group banks, Dec. 31, 1972 June 1973 A-102—A-104 Federal Reserve Banks ........... Feb. 1973 A-98—A-99 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-lll 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 □ SEPTEMBER 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 Bought r u H e n p e d l u e d r r ­ Loans Float 2 as O F se t . h R ts e . r 3 Total 4 stock ce R rt i i g fi h c t a s te r s e t o a n u n c t y d ­ ­ Total out­ chase ing right agree­ ment Averages of daily figures 1939—Dec.. 2,510 2,510 83 2,612 17,518 2,956 1941—Dec.. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec.. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec.. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec.. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—Dec.. 52,529 52,454 75 765 3,251 56,610 10.367 6,810 1969—Dec.. 57,500 57,295 205 1,086 3,235 2,204 64,100 10.367 6,841 1970—Dec.. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—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 3.113 1,180 83,880 10.410 400 8,538 Aug. *. 76,653 76,475 178 2.144 2,547 1.018 82,427 10.410 400 8,549 Week ending— 1973—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 18.. 77,264 76,821 443 1,720 3,874 1,183 84,113 10.410 400 8.537 25.. 77,243 76,853 390 2,081 3,317 1,244 83,955 10.410 400 8,540 Aug. 1.. 77,889 77,405 484 2,095 2,288 1,278 83,649 10.410 400 8,539 8.. 76,916 76,916 2,006 2,700 1,299 82,974 10.410 400 8,543 15.. 75,989 75,989 1,914 2,886 1,282 82,120 10.410 400 8,546 22*. 76,368 76,129 239 2,135 2,677 772 82,015 10.410 400 8,549 29*. 76,839 76,539 300 2,558 2,075 748 82,301 10.410 400 8,554 End of month 1973—June. . 76,471 8 76,471 1,770 2,048 1,135 81,490 10.410 400 8,531 July. . , 78,821 7 77,750 1,071 2,225 2,171 1,307 84,656 10.410 400 8,546 Aug.*. 77,953 7 76,984 969 2,847 1,566 750 83,200 10.410 400 8,568 Wednesday 1973—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 4. 79,148 7 76,787 2,361 2,999 2,523 1,065 85,909 10.410 400 8.537 11. 74,173 8 74,173 2,304 4,395 1,165 82,094 10.410 400 8.537 18. 77,361 7 76,777 584 1,673 4,646 1,210 84,957 10.410 400 8.537 25. 76,877 8 76,591 286 2,032 3,604 1,272 83,870 10.410 400 8.543 Aug. 1*. 78,546 7 77,747 799 1,378 3,324 1,351 84,751 10.410 400 8,540 8*. 74,287 8 74,287 1,429 3,124 1,363 80,251 10.410 40Q 8.544 15*. 74,066 8 74,066 2,530 3,922 770 81,334 10.410 400 8,548 22*. 76,594 8 76,016 '578' 3,036 3,156 752 83,637 10.410 400 8,552 29*. 75,966 8 75,966 3,465 2,311 797 82.585 10.410 400 8,557 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

SEPTEMBER 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 Cur­ reserves, Other reserves Period or date r c t c e u i i i n o n l r c n a ­ y ­ T h c i u r o n a e r g s l a y d h s s ­ ­ T u re r a y s­ with F F e .R i o g r . n ­ Banks c O o F a u t . c h R n ­ e t . r s3 c b a F i a p l l . n i i i R a t t d i a ­ e . l s 3 B F W a . n R it k h . s c r C e a o n n u i c d n r y ­ 6 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. 62.726 319 2,025 171 604 2,324 27,454 5,694 33,148 .1972--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 27,156 6,274 33.542 ...........July 68,394 344 1,674 300 838 2,877 27,359 6.294 33.765 ............Aug." Week ending— 67,220 398 3,026 264 656 2,882 25,906 6,140 32,218 .1973—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 27.452 6,159 33,723 ..........18 68,267 331 3.168 405 780 2,780 27,576 6.139 33.827 ..........25 68,051 324 2,928 407 818 2,903 27,567 6,372 34,051 .Aug. 1 68,311 334 2,773 275 816 2,957 26,859 6,484 33,455 68,619 347 1,413 314 878 2,704 27,201 6,514 33.827 . 15 68,463 353 919 348 884 2,826 27,581 5,899 33.592 .22 p 68,208 345 1.649 286 782 2,944 27.453 6,253 33,818 . 29 v End of month 67,771 369 4,039 334 717 2,783 24,818 6,227 31,157 .June 68,223 323 2,865 280 821 3,005 28,495 6,372 34,979 .July 68,362 343 259 760 3.086 28.921 6,349 35,382 . Aug." Wednesday 67,654 397 1,324 253 642 2,896 27,306 6,140 33,618 .1973—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 29,297 6,227 35,636 • July 4 68,882 365 4,241 269 689 2,620 24,375 6,465 30,952 ..........11 68,637 343 3,005 257 782 2,737 28,543 6,159 34,814 ..........18 68,262 330 3,032 277 766 2,803 27,753 6,139 34,004 ..........25 68,259 331 2,281 250 : 778 2,994 29,208 6,372 35,692 • Aug. 1" 68,672 352 2,302 285 ; 827 2,644 24,523 6,484 31,119 8 v 68,773 354 * 409 : 808 2,747 27,602 6,514 34,228 15p 68,450 356 1,968 277 ; 772 2,846 28,330 5,899 34,341 22 p 68,444 346 1,431 257 1 740 3,082 27,652 6,253 34,017 29 » 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, I960; all allowed included are (beginning with first statement week of quarter): Ql, $279 thereafter. Beginning with Jan. 1963, figures are estimated except for million; Q2, $172 million; 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 □ SEPTEMBER 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 Reserves Borrowings New York City City of Chicago Other qu R ir e e ­ d Excess1 Total s S o e n a a ­ l Excess Bo in r g ro s w­ Excess Bo in r g ro s w­ T Ig O S W- ..... .... 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 8 232 29 18,527 756 87 29 19 4 100 40 22,267 452 454 41 111 15 67 92 24,915 345 238 18 40 8 50 80 26,766 455 765 100 230 15 90 180 27,774 257 1,086 56 259 18 6 321 28,993 272 321 34 25 7 42 28 31,164 165 107 25 35 1 -35 42 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 33,199 343 2,051 124 144 135 22 67 -23 994 33.538 227 2,144 163 34 109 -5 53 5 ,227 32,897 242 363 1 144 -13 72 112 33,003 130 287 -1 39 15 -23 118 33,072 254 382 36 76 -13 49 136 32,782 40 348 -75 79 12 -7 174 32,751 227 477 85 86 -10 -19 271 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 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 9 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 -89 963 31,817 401 1,664 64 62 200 34 728 31,595 2 1,700 67 -78 31 -1 -102 698 32,121 181 1,930 71 92 262 -24 -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 33,262 461 1,720 117 232 -2 13 10 856 33,793 34 2,081 128 -150 50 56 24 -26 ,165 33,552 499 2,095 141 266 12 -5 ,222 33,381 74 2,006 158 -40 90 24 41 -68 134 33,511 316 1,914 148 24 50 -3 54 21 154 33,558 34 2,135 163 -20 172 5 36 -87 216 33,673 145 2,558 185 -41 137 -19 68 41 406 ^ov. 15, 1972, includes $450 million of parallel the previous “Reserve city” and “Coi tively . Banks are allowed to waive penalties (hence the series are continuous over time). •n with bank adaptation to Regulation J . Beginning 1973, allowable deficiencies Note.—Monthly and weekly data are ave ithin statement week of quarter): Ql, $279 the month or week, respectively. Beginning s are 2 million. estimated except for weekly averages. ?nation of banks as reserve city banks Borrowings at F.R. Banks: Based on closin has been based on size of bank (net Effective Apr. 19, 1973, the Board’s Regul lend- 30 million), as described in the Bulletin ing by Federal Reserve Banks, was revised to hown here as “Large” and “All other” to meet the seasonal borrowing needs of thei Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F t f i b e r n u N a d a n t n n e e e d t s r r k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e u o v c r i g f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c o b P u h a f y a u n n s i r k n e e ­ s g s t s o b S e a f l a n l l n i e k n e s g s t d L ea o t l o a e n r s s3 de f r B i r a o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 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 Aug. 1 . 269 253 7,003 -6,987 47.5 14,106 7,013 4,747 9,269 2,266 1,379 564 815 8. 152 361 7,477 -7,687 52.3 14,166 6,689 4,715 9,451 1,974 1,867 460 1,407 15. 85 299 8,401 -8,614 58.0 14,242 5,841 4,659 9,583 1 ,183 2,240 503 1,737 22. -29 250 8,015 -8,294 55.8 14,068 6,052 4,431 9,637 1,622 1 ,829 475 1 ,354 29. -45 365 6,319 -6,730 42.2 13,394 7,075 4.649 8,745 2,426 1 ,560 391 1.169 8 in New York City 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 Aug. 1 . 115 2,377 -2,262 38.1 4,376 2,000 1,264 3,112 736 638 274 364 8. 51 90 2,276 -2,315 39.1 4,104 1 ,829 1 ,437 2,667 392 860 268 592 15. 27 36 2,664 -2,673 44.9 4,051 1,386 1,223 2,828 164 854 352 502 22. 109 3,450 -3,559 59.1 4,550 1,100 1,033 3,517 67 935 283 652 29. -63 64 2,555 -2,681 44.4 3,928 1 .376 1 ,208 2,720 165 811 258 553 38 outside New York City 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 28.......... 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 Aug. 1.......... 155 253 4,627 -4,725 53.9 9,640 5,013 3,483 6,157 1 ,530 741 291 451 8.......... 102 271 5,202 -5,372 61.3 10,062 4,860 3,278 6,784 1 ,582 1,007 192 815 15.......... 58 263 5,736 -5,941 66.8 10,191 4,455 3,436 6,755 1,019 1 ,386 151 1,235 22.......... -29 141 4,565 -4,736 53.6 9,517 4,952 3,398 6,120 1,555 895 192 702 29.......... 17 301 3,765 -4,048 45.8 9,467 5.702 3,441 6,026 2,261 748 133 615 5 in City of Chicago 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 Aug. 1.......... 14 43 1,312 -1,341 85.7 2,391 1,079 915 1,476 164 489 489 8.......... 42 1,975 — 1 933 122.6 2,767 793 672 2,095 121 493 493 15.......... 3 43 1,947 -1,987 121.0 2,686 739 653 2,033 86 504 504 22.......... -26 1,735 -1 700 109.7 2,411 676 572 1,839 104 492 492 29.......... -9 43 1 ,618 -1,670 103.8 2,348 729 644 1 ,704 86 512 512 33 others 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 Aug. 1.......... 140 210 3,314 -3,384 47.0 7,249 3,934 2,568 4,681 1,366 253 291 -38 8.......... 60 271 3,227 -3,439 47.9 7,295 4,067 2,606 4,689 1,462 514 192 322 15.......... 55 220 3,789 -3,954 54.5 7,506 3,717 2,783 4,722 933 882 151 731 22.......... -4 141 2,831 -2,976 41.1 7,107 4,276 2,826 4,281 1,451 403 192 211 29.......... 26 258 2,146 -2,379 32.9 7,119 4,973 2,797 4,322 2,176 236 133 103 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 □ SEPTEMBER 1973 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b);1 last par. Sec. 13 3 Federal Reserve Bank A R u a 1 g t 9 e . 7 3 3 o 1 n , Eff d e a c t t e ive Pre r v at i e ous A R u a 1 g t 9 e . 7 3 3 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 7 3 3 o 1 n , Ef d fe a c t t e ive Pre r v at i e ous Boston............................................. 71/2 Aug. 23, 1973 7 8 Aug. 23, 1973 71/2 49i/2 Aug. 23, 1973 9 New York....................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 9 Philadelphia.................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 9 Cleveland........................................ 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 9 Richmond........................................ 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 49i/2 Aug. 14, 1973 9 Atlanta............................................ 71/2 Aug. 16, 1973 7 8 Aug. 16, 1973 71/2 49Vi Aug. 16, 1973 9 Chicago........................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 49i/2 Aug. 14, 1973 9 St. Louis.......................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 49i/2 Aug. 14, 1973 9 Minneapolis.................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 W 2 Aug. 14, 1973 9 Kansas City.................................... 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 m 49i/2 Aug. 14, 1973 9 Dallas.............................................. 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 49i/2 Aug. 14, 1973 9 San Francisco................................. 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 49i/2 Aug. 14, 1973 9 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers’ acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 7*4 percent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)- Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954, IVz I1/2 1959—Mar. 6. 21/2-3 3 1970—Nov. 11.................... 534-6 6 16. 3 3 13.................... 5%-6 534 1955—Apr. 1 1 4 5 . . . . . . . . . . . . . . . . . . . . . . . . 11/2-134 H 1% /2 J M un ay e 2 1 9 2 . . 3 31 -3 /2 1 /2 3 3 1 1 / / 2 2 Dec. 16 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 5 2 3 -5 4 3/4 5 5 3 34 4 May 2............ 134 m Sept. 11. 31^-4 4 4.................... 5Vi-5 % 51/2 Aug. 4............ IV4-2V4 134 18. 4 4 11.................... 51/2 51/2 1 1 1 9 9 9 5 5 5 6 7 8 — — — S N A A N D A Ja e o u p o u e n p g v c g r v t . . . . . . . . 2 2 2 2 1 1 3 1 1 2 1 5 9 9 0 4 3 2 3 2 8 1 3 5 2 . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 2 2 1 3 2 3 1 3 3 3 % 3 / 4 / / / 4 2 2 3 3 3 2 4 4 1 - - - - - - - % % - / - - 2 3 2 3 2 3 4 3 3 2 3 1 1 V 1 % 1 / / / / 4 2 4 4 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 1 3 1 1 V 3 1 / / / / / 4 4 a 2 2 4 2 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 3 4 0 5 7 — — — — — J J N S A N D A u u e u o o e p l n p y c g v v r e t . . . . . . 2 2 3 2 1 1 1 2 1 1 1 9 6 4 0 7 0 0 3 4 2 6 7 7 3 4 . . . . . . . . . . . . . . . 3 3 4 4 3 4 3 1 V 3 / 4 1 4 4 3 3 4 3 2 i 1 1 1 - - / i - - - - - / / 2 / 3 / 3 4 4 4 4 2 2 2 2 4 - 1 i 1 1 1 4 / / / / / 2 2 2 2 2 4 3 3 4 4 3 4 4 3 3 3 4 4 4 4 1 1 1 1 1 V 1 1 / / / / / / / 2 2 4 2 2 2 2 2 1 1 9 9 7 7 1 3 — — J J F D N J M F u a a e e e o n l n b a b y c v . . r . . . . . 2 2 2 1 1 2 1 1 1 2 1 1 1 1 1 8 2 9 9 5 3 9 3 6 2 4 7 1 6 3 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘ 5 5 5 4 4 4 5 4 1 1 3 V 3 5 a / / 4 4 4 5 4 4 5 5 5 4 2 2 1 3 1 - - - - 1 3 3 - / - - / / 5 5 5 5 4 4 5 4 2 2 4 / 4 1 1 i 3 3 1 - - / / / 4 5 5 4 4 4 2 2 4 5 5 5 5 4 4 5 5 5 5 5 4 4 5 5 5 1 1 1 1 1 1 3 3 3 V / / / / / / 4 4 4 4 2 4 4 2 2 i Mar. 2 7 . 4 .. ....... ,2 2 3 1/ ^ 4 - - 3 3 2 21 % /4 1968—Mar. 2 1 2 5 , , 41/ 5 2-5 4 5 1/2 May 4................... 5V 5 i- 3/ 5 4 34 5 5 1 34 /2 Apr. 2 1 1 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 l% 1/ 2 4 1 - - / 2 2 4 3 % /4 2 2 1 1 1 3 / 4 / 4 4 A A p u r g . . 2 1 1 6 9 6 , , 5 5 ^4 51 - - 5 /2 5 1 1/ /2 2 5 5 5 1 1 % / / 2 2 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 34 6 - - 6 61/2 6 6 61/2 S A M e u a p g y t . . 2 1 1 9 3 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 1 % V 2 4 - - 2 2 2 2 1 1 3 % 4 Dec. 2 3 1 0 0 8 , 51/ 5 5 4 1 V - / 5 a 2 1/2 5 5 5 1 1 V / / 2 2 a A Ju u ly g . 2 1 1 3 2 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 6 7 1 - i/ / 7 2 2 Vi 6 m 7 7 1 1 / / 2 2 Oct. 24.......... 2 -21/2 2 1969—Apr. 4 51/2-6 6 Nov. 7.......... 21/2 21/2 6 6 In effect Aug. 31, 1973 .... m 71/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 2-10 10-100100-400 Over Sav­ Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 5 5 6 9 In effect 1972—Nov. 9.. 10 12 7 161/2 171/2 83 83 85 Jan. 1, 1963. I6I/2 12 Nov. 16. 13 1966—July 14, 21... 1973—July 19.. IOI/2 121/2 131/2 18 Sept. 8, 15... 1967—Mar. 2......... 31/2 31/2 In effect Mar. 16......... 3 3 Aug. 31, 1973 9 IO1/2 121/2 131/2 18 1968—Jan. 11, 18... 16i/2 17 12 121/2 1969—Apr. 17......... 17 17% 121/2 13 1970—Oct. 1............ Present legal requirement: Minimum 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 character of business of a reserve city bank, and the presence of the head city banks and the second to the change at country banks. For changes office of such a bank constitutes designation of that place as a reserve prior to 1963 see Board’s Annual Reports. city. Cities in which there are F.R. Banks or branches are also 2 (a) Demand deposits subject to reserve requirements are gross de­ reserve cities. Any banks having net demand deposits of $400 million or mand deposits minus cash items in process of collection and demand less are considered to have the character of business of banks outside of balances due from domestic banks. reserve cities and are permitted to maintain reserves at ratios set for banks (b) Requirement schedules are graduated, and each deposit interval not in reserve cities. For details, see Regulation D and appropriate sup­ applies to that part of the deposits of each bank. plements and amendments. (c) Since Oct. 16, 1969, member banks have been required under 5 Reserve city banks. Regulation M to maintain reserves against foreign branch deposits com­ 6 Except as noted below, member banks are subject to an 8 per cent puted on the basis of net balances due from domestic offices to their foreign marginal reserve requirement against increases in the aggregate of (a) branches above a specified base and against foreign branch loans to U.S. outstanding time deposits of $100,000 and over, (b) outstanding funds residents, which until June 21,1973, were also maintained above a specified obtained by the bank through issuance by a bank’s affiliate of obliga­ base. The reserve-free base relating to net balances due from domestic tions subject to the existing reserve requirements on time deposits, and banks to foreign branches is being reduced gradually beginning July 5, (c) funds from sales of finance bills. The 8 per cent requirement applies 1973, and will be eliminated by April 1974. The applicable reserve per­ to balances above a specified base, but is not applicable to banks that centage, originally 10 per cent, was increased to 20 per cent on Jan. 7,1971, have obligations of these types aggregating less than $10 million. This and effective June 21, 1973, was reduced to 8 per cent. Regulation D im­ requirement became effective for (a) and (b) on June 21, 1973—except poses a similar reserve requirement on borrowings above a specified base that for the period June 21 to August 30, 1973, (a) includes only single­ from foreign banks by domestic offices of a member bank. The reserve-free maturity time deposits—and for (c) on July 12, 1973. For details, see base related to this type of borrowings is being reduced gradually and will Regulation D and appropriate supplements and amendments. be eliminated by April 1974. For details, see Regulations D and M and 7 The 16l/i 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 7(b) and 2(c) above. 9 For changes effective Sept. 20, 1973, see “Announcements.” 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ serve cities, and on the same date requirements for reserves against net Note.—All required reserves were held on deposit with F.R. Banks demand deposits of member banks were restructured to provide that each June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member member bank will maintain reserves related to the size of its net demand banks were allowed t"> count part of their currency and coin as reserves; deposits. The new reserve city designations are as follows: A bank having effective Nov. 24, 1960, they were allowed to count all as reserves. For net demand deposits of more than $400 million is considered to have the 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 □ SEPTEMBER 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 4 4 4 41/2 4i/2 41/2 5 Other time deposits:1 Multiple maturity:2 4 4 4 41/2 41/2 4i/2 5 5 5 5 5 5 5 51/2 I year to— 2 years.................................................................................. 5 5 5 51/2 51/2 51/2 2Vi years.............................................................................. 6 2 years and over...................................................................... 5 5 5 5% 53/4 534 2 Vi years and over................................................................... 6 Vi 4 years and over (minimum denomination of $1,000)............. (3) Single maturity: Less than $100,000 : 30—89 days............................................................................... 51/! 5 5 5 5 5 5 90 days—1 year......................................................................... 5% 5 5 5 5 5 5 Vi 1 year to— 2 years.................................................................................. 5% 5 5 51/2 51/2 51/2 2 Yi years ........................................................................... 6 2 years and over ................................................................... 5% 5 5 5Va 53/4 5Va 2Vi years and over ................................................................. 61/2 4 years and over (minimum denomination of $1,000)............ (3) $100,000 and over: 30—59 days............................................................................... 5Vt 5Vi 5% 61/4 (4) 9 60 0 — -1 8 7 9 9 d d a a y y s s . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 V V i i 5 51 % /2 6 5Va 6 61 ^ /2 ( 6 4 3 ) /4 (4) 180 days—1 year....................................................................... 5Vi 5Vi 61/4 7 7 (4) 1 year or more......................................................................... 5Vi 5 Vi 61/4 7i/2 71/2 (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 2Vi 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) 1937—Nov. 1 1945—Feb. 4 40 50 1945—Feb. 5 July 4, 50 50 July 5 1946—Jan. 20, 75 75 1946—Jan. 21 1947—Jan. 31 . 100 100 1947—Feb. 1 1949—Mar. 29 75 75 1949—Mar. 30 1951—Jan. 16 50 50 1951—Jan. 17 1953—Feb. 19, 75 75 1953—Feb. 20 1955—Jan. 3. 50 50 1955—Jan. 4 Apr. 22, 60 60 Apr. 23 1958—Jan. 15 70 70 1958—Jan. 16 Aug. 4, 50 50 Aug. 5 Oct. 15 70 70 Oct. 16 1960—July 27, 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5 50 50 1963—Nov. 6 1968—Mar. 10, 70 70 1968—Mar. 11 June 7 70 50 70 June 8 1970—May 5, 80 60 80 1970—May 6 1971—Dec. 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

SEPTEMBER 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 Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c p ha u s r e ­ s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f r m t r s i p , ty ­ c p ha u s r e ­ s G sa r l o e s s s m E s a h x t o i u c f r r h t i s . ty tions 1972—July. 2,753 3,286 2,753 3,286 Aug. 1,390 1,752 432 1,274 1,752 432 -1,089 79 Sept. 9,369 8,673 850 9,369 8,673 850 Oct., 2,795 2,425 150 2,678 2,425 150 42 *35* Nov. 2,638 2,880 351 2,638 2,880 300 360 -411 Dec. 5,083 4,640 135 5,083 4,640 -135 1973—Jan.. 3,060 1,735 3,060 1,735 Feb. 6,275 5,216 200 6,079 5,216 200 25 -1,408 61 3,476 Mar. 3,510 2,201 200 3,510 2,201 200 Apr. 3,685 2,101 51 3,478 2,101 51 ’50’ i27 May 1,822 1,728 600 1,822 1,728 600 i ,316 -i'3i6* June 5,904 4,848 163 5,677 4,848 163 17 123 July. 5,071 3,900 60 5,045 3,900 60 27 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal agency acceptances (U.S. Govt. Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s s G e it c o ie u v s r t ­ . r O ig u h t t ­ R a m c g h e e r p a n e s u e t e s r ­ ­ r O i n g u e h t t t ­ , m r a c e g h n e p r a e n e u s t t e r s e ­ ­ , change1 1972—July 1,736 1,736 -533 -26 i —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 1 -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 I973—jan 9 719 8,928 2,116 48 11 23 2,197 Feb.. 79 -2,068 32 2,774 3,034 599 -18 -28 -3 95 644 Mar 6,024 5,4781,656 -14 61 -1 -66 1,636 Apr.. 19 11 5,664 5,978 1,218 1 -19 — 65 7 -36 1,106 May 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 July 7,651 6,686 2,076 168 106 -12 78 2,416 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d io o d f Total s P t o e u rl n in d g s s A ch u i s l t l r in ia g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1969—Dec............. 1,967 1,575 1 « 199 60 125 1 3 4 1970—Dec............. 257 154 * * 98 1 * 4 1971—Dec............. 18 3 3 * 2 1 8 1972—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 3 Feb............. 4 * * * * 1 3 Mar............. 4 * * * * 1 3 Apr............. 4 * * * * 1 3 M ay........... 4 * * * * 1 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ SEPTEMBER 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 Aug. 29 Aug. 22 Aug. 15 Aug. ! Aug. 1 Aug. 31 July 31 Aug. 31 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...................................................... 307 312 307 308 305 309 307 327 Loans: Member bank borrowings.............. 3,465 3,036 2,530 1,429 1,378 2,847 2.225 1 .092 Other................................................ Acceptances: Bought outright............................... 48 47 54 66 Held under repurchase agreements. 37 78 30 Federal agency obligations: Bought outright................................ 1,597 1.614 1,614 1.614 1.614 1,597 1.617 1 .076 Held under repurchase agreements. 24 76 263 106 74 U.S. Govt, securities: Bought outright: Bills........................... 33,567 33,600 31,299 31,871 35,331 34,585 35,331 29.814 Certificates—Special. 351 Other.. Notes......................... 37,374 37,374 37,374 37,138 37,138 37,374 37,138 36,703 Bonds....................... 3,428 3,428 3,428 3,664 3,664 3,428 3,664 3,511 Total bought outright..................... 1-274.369 1-274,402 1-272,452 1-272,673 i 76,133 i 75,387 i 76,133 i 70,028 Held under repurchase agreements. 554 723 706 965 712 Total U.S. Govt, securities. 74,369 74,956 72,452 76,856 76,093 77,098 70,740 Total loans and securities................... 79,477 79,729 76.642 75,764 80,076 80.884 81,178 73,078 Cash items in process of collection... *7,755 *8,877 *11,645 *8,666 *9,525 *6,197 8,328 9.976 Bank premises..................................... 210 210 209 208 207 210 207 164 Other assets: Denominated in foreign currencies. 4 4 15 19 32 5 4 34 All other........................................... 583 538 546 1,136 1,112 535 1,096 576 Total assets. *99,039 *100,373 *100,067 *96,804 *101,960 *98,843 101,823 94,858 Liabilities F.R. notes.......................................... 60,433 60,459 60,778 60,681 60.248 60,338 60,200 55,120 Deposits: Member bank reserves.................. *27,652 *28,330 *27,602 *24,523 *29,208 *28,921 28,495 28,227 U.S. Treasurer—General account. 1,431 1,968 * 2.302 2.281 848 2,866 1,727 Foreign........................................... 257 277 409 285 250 259 280 192 Other: All other..................................... 3 740 3 772 3 808 3 827 3 778 3 760 3 820 592 Total deposits. *30,080 *31,347 *28,819 *27,937 *32,517 *30,788 32,461 30,738 Deferred availability cash items............. 5.444 5,721 7,723 5,542 6,201 4,631 6,157 6,580 Other liabilities and accrued dividends. 1,058 917 909 944 1,035 968 587 Total liabilities........................................ *97,015 *98,444 *98,229 *95,058 *99,910 *96,792 99,786 93,025 Capital accounts Capital paid in.............................................................. 827 826 826 825 824 827 824 778 Surplus.......................................................................... 793 793 793 793 793 793 793 742 Other capital accounts................................................. 404 310 219 128 433 431 420 313 Total liabilities and capital accounts.......................... *99,039 *100,373 *100,067 *96,804 *101,960 *98,843 101,823 94,858 Contingent liability on acceptances purchased for foreign correspondents............................................ 518 518 504 502 498 522 496 287 Marketable U.S. Govt, securities held in custody for foreign and international accounts...................... 28,215 28,335 28,244 28,833 29,003 28,043 29,026 30,337 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)..................... 64,512 64,559 64,513 64,345 64,244 64,616 64,257 59,088 Collateral held against notes outstanding: 2,415 2,415 2,365 2,295 2,295 2,415 2,295 1,945 U.S. Govt, securities.................................................. 63,690 63,690 63,540 63,420 63,375 63,690 63,375 58,365 66,105 66,105 65,905 65,715 65,670 66,105 65,670 60,310 i 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

SEPTEMBER 1973 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 1973 (In millions of dollars) Total Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a i a t n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account...................... 10,303 423 2,182 613 849 1,004 543 1,463 377 202 343 418 1 .886 Special Drawing Rights certificate account.............................................. 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks................... 1,302 167 276 61 61 110 242 59 36 33 46 77 134 Other cash............................................ 309 16 23 5 32 37 41 36 21 6 38 14 40 Loans: Secured by U.S. Govt, and agency obligations............................. 1,683 127 196 157 149 173 201 287 40 29 90 59 175 Other....................................... 1,164 65 344 10 73 120 216 20 101 68 147 Acceptances: Bought outright........................ 47 47 Held under repurchase agreements 37 37 Federal agency obligations: Bought outright............................ 1,597 73 430 86 119 113 82 259 58 30 61 68 218 Held under repurchase agreements 263 263 U.S. Govt, securities: Bought outright........................ 175,387 3,431 20,304 4,073 5,624 5,339 3,851 12,217 2,729 1,438 2,878 3,229 10.274 Held under repurchase agreements 706 706 Total loans and securities............ 80,884 3,696 22,327 4,326 5,892 5,698 4,254 12,979 2,847 1,497 3,130 3,424 10.814 Cash items in process of collection. 7,595 270 1,304 359 323 855 792 1.035 326 360 566 462 943 Bank premises.................................. 210 37 7 8 27 14 15 17 14 34 17 12 8 Other assets: Denominated in foreign currencies 5 2 2 1 1 i All other................................... 535 25 143 24 38 38 33 77 17 19 20 22 79 Total assets. 101,543 4,657 26,357 5,419 7,256 7,792 5,942 15,737 3,653 2,158 4,175 4,443 13,954 Liabilities F.R. notes............................................ 61,640 3,138 15,349 3,809 4,890 5,464 3,171 10,318 2,422 1,103 2,428 2,357 7,191 Deposits: Member bank reserves..................... 28,921 1,048 8,349 1,150 1,641 1,351 1,881 3,948 811 652 1,124 1.560 5,406 U.S. Treasurer—General account.. 848 62 201 30 77 60 41 98 51 17 12 7 192 Foreign.............................................. 259 11 3 69 13 23 13 18 40 9 6 11 14 32 Other: All other5...................................... 760 4 646 18 2 16 12 23 3 2 5 7 22 Total deposits. 30,788 1,125 9,265 1,211 1,743 1,440 1,952 4,109 874 677 1.152 1,588 5.652 Deferred availability cash items......... 6,029 267 919 248 377 649 630 839 254 313 474 352 707 Other liabilities and accrued dividends 1,035 43 296 48 68 121 48 147 33 20 36 39 136 Total liabilities.................... 99,492 4,573 25,829 5,316 7,078 7,674 5,801 15,413 3,583 2,113 4,090 4,336 13,686 Capital accounts Capital paid in............. 827 33 209 41 74 45 61 130 28 20 35 45 106 Surplus........................... 793 34 207 39 72 42 55 124 27 18 33 43 99 Other capital accounts. 431 17 112 23 32 31 25 70 15 7 17 19 63 Total liabilities and capital accounts.. 101,543 4,657 26,357 5,419 7,256 7,792 5,942 15,737 3,653 2,158 4,175 4,443 13,954 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 522 22 4 139 25 47 27 36 81 18 12 22 28 65 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 64,616 3,324 16.245 3,873 5,089 5.668 3,426 10.555 2,558 1 .155 2.567 2.534 7,622 Collateral held against notes out­ standing : Gold certificate account.................. 2,415 250 350 350 605 700 155 5 U.S. Govt, securities....................... 63,690 3,110 16,450 3,700 4,850 5,120 3,600 10,100 2,480 1,200 2,600 2,580 7,900 Total collateral. 66,105 3,360 16,450 4,050 5,200 5,725 3,600 10,800 2,635 1,200 2,600 2,585 7,900 1 See note 8 on p. A-5. 4 After deducting $383 million participations of other Federal Reserve 2 After deducting $3 million participations of other Federal Reserve Banks. Banks. 5 See note 5 on p. A-4. 3 After deducting $190 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 □ SEPTEMBER 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 Aug. 29 Aug. 22 Aug. 15 Aug. 8 Aug. 1 Aug. 31 July 31 Aug. 31 3,465 3,036 2,530 1,429 1,378 2,847 2,224 1,091 Within 15 days.......................................................... 3,351 2,939 2,467 1,353 1,314 2.749 2,160 1,090 16 days to 90 days...................................................... 114 97 63 76 64 98 64 1 91 days to 1 year........................................................ Acceptances—T otal........................................................ 46 99 46 48 152 84 132 96 13 67 11 12 113 47 94 48 16 days to 90 days...................................................... 33 32 35 36 39 37 38 48 91 days to 1 year........................................................ U.S. Government securities—Total.............................. 74,369 74,956 72,452 72,673 76,856 76,093 77,098 70,740 Within 15 days1.......................................................... 3,959 5,337 3,232 3,780 6,456 3,982 4,874 3,212 16 days to 90 days...................................................... 18,285 18,026 16,361 16,209 17,468 19.995 19,291 14,497 91 days to 1 year........................................................ 18,894 18,362 19,628 14,742 14,990 18,886 14,991 20,556 Over 1 year to 5 years................................................ 22,171 22,171 22,171 26,982 26,982 22,170 26,982 24,859 Over 5 years to 10 years............................................ 9,358 9,358 9,358 9,358 9,358 9,358 9,358 6,102 Over 10 years.............................................................. 1,702 1,702 1,702 1,602 1.602 1.702 1,602 1,514 Federal agency obligations—Total............................... 1,597 1,638 1,614 1,614 1,690 1,860 1,723 1,150 Within 15 days 1.......................................................... 30 46 17 76 293 108 109 16 days to 90 days...................................................... 7 30 35 52 52 7 52 30 91 days to 1 year....................................................... 379 372 372 372 372 379 373 117 Over 1 year to 5 years................................................ 622 631 631 630 630 622 630 519 Over 5 years to 10 years............................................ 307 307 307 308 308 307 308 227 Over 10 years.............................................................. 252 252 252 252 252 252 252 148 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 S o M 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 t 2 h S 6 e A r ’s 1972—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.r............................. 15,471.7 6,855.4 3,652.6 8,616.3 4,963.7 94.0 224.0 98.4 64.3 51.2 Feb.r........................... 16,049.4 7,227.0 3,787.3 8,822.4 5,035.0 97.8 238.0 102.7 65.9 52.0 Mar.r........................... 15,932.6 6,844.8 3,855.9 9,087.8 5,231.9 96.9 228.3 104.0 67.6 53.8 Apr.r........................... 15,999.5 6,297.5 3,873.0 9,072.1 5,199.1 95.9 228.9 102.3 66.4 52.7 Mayr........................... 16,431.6 7,177.0 3,906.1 9,254.6 5,348.5 97.7 235.1 103.4 67.2 53.5 16,620.6 7,244.6 4,034.9 9,396.0 5,361.1 99.8 245.0 107.2 68.6 54.0 Julyr............................. 17,215.3 7,381.4 4,278.8 9,833.9 5,555.1 102.5 247.5 111.6 71.2 55.7 1 Excludes interbank and U.S.'Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 51 2 52 55 510 520 Total $50 $100 $500 $1,000 $5,000 $10,000 1939. 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950. 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1959. 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960. 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 . 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965. 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968. 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 1970. 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 1971. 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 4 1972--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 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 July........... 68,223 45,564 7,542 2,440 135 3,301 9,602 22,544 22,659 6,116 16,130 188 219 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 *nd 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 July 31, against Treasury F.R. Banks 1973 gold cash Banks and certificates and Agents July June July Agents 31 30 31 Gold.................................... 10,410 (10,303) 107 Gold certificates................. (10,303) 210.302 1 Federal Reserve notes........ 64,258 i 28 4,057 60,072 59,664 54,771 Treasury currency—Total. . 8,546 88 307 8,151 8,107 7,664 Dollars............................. 767 18 39 710 705 638 Fractional coin............... 7,167 67 268 6.832 6,793 6,414 United States notes........ 323 2 320 320 320 In process of retirement3 289 289 289 292 Total—July 31, 1973....... 483,214 (10.303) 323 10.302 4,366 68,223 June 30, 1973....... 482,595 (10.303) 369 10.302 4,153 67,771 July 31, 1972........ 477,422 (10.303) 337 10.302 4,348 62.435 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 □ SEPTEMBER 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mo Mz Mi M2 Mz 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—Aug............................... 248.6 508.4 791.6 245.5 505.1 788.3 Sept............................... 250.1 512.1 799.0 248.7 510.4 796.9 Oct................................ 251.6 516.4 807.0 251.2 515.2 805.2 Nov............................... 252.7 519.8 813.6 254.3 518.7 811.2 Dec............................... 255.5 525.1 822.0 262.9 530.3 826.5 1973—Jan................................ 255.4 527.9 828.7 262.6 534.1 834.6 Feb................................ 256.7 530.5 834.9 254.0 527.8 831.6 Mar............................... 256.6 532.6 839.7 254.1 531.4 838.8 Apr............................... 258.2 536.2 r845.6 259.5 539.5 849.8 May.............................. 260.5 540.6 852.0 256.0 538.2 r850.2 June.............................. 263.2 545.3 r859.4 261.2 544.7 r859.9 July............................... r264.3 J'547.6 r863.4 >■263.2 r546.6 >-863.6 Aug.P........................... 264.0 550.6 866.3 260.8 547.1 862.7 Week ending— Aug. 1....................... 263.8 548.4 260.9 545.4 8....................... 263.6 549.1 261.5 546.9 15....................... 264.4 550.3 262.2 548.0 22v..................... 264.9 552.1 261.2 547.9 29 p..................... 263.2 550.8 258.3 545. 3 Note.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. M\: Averages of daily figures for (1) demand deposits of commercial Mz\ M2 plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see “Revision of the Money Stock Meas­ commercial banks. ures and Member Bank Reserves and Deposits” on pp. 61—79 of the Feb. Mu Averages of daily figures for Mi plus savings deposits, time de­ 1973 Bulletin. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Non­ Non­ Govt, bank bank depos­ week Cur­ De­ Time and savings thrift Cur­ De­ Time and savings thrift its 3 rency mand deposits institu­ rency mand deposits institu­ depos­ tions 2 depos­ tions 2 its its CD’s 1 Other Total Other Total 1969—De c 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—De c 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—De c 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—Au g 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 61.7 280.1 341.8 311.4 58.7 197.3 58.8 282.2 340.9 r312.0 8.4 June 59.4 203.9 62.0 282.0 344.1 r314.1 59.4 201.8 59.3 283.4 342.7 r315.2 6.9 July........ r59.5 r204.9 r64.5 r283.3 r347.7 *■315.8 59.9 r203.2 62.3 r283.5 r345.8 r316.9 r6.3 Aug.P 59.7 204.3 67.0 286.6 353.6 315.7 60.0 200.8 68.4 286.2 354.6 315.7 4.0 Week ending— Aug. 1 . 59.3 204.5 65.5 284.6 350.2 59.4 201.5 64.9 284.6 349.5 6.0 8. 59.9 203.7 66.2 285.5 351.7 60.4 201.0 66.6 285.5 352.0 4.8 15. 59.6 204.8 67.3 286.0 353.2 60.3 201.9 68.2 285.8 353.9 3.7 22v 59.7 205.2 67.4 287.2 354.6 60.0 201.2 69.1 286.6 355.7 3.9 29p 59.7 203.5 67.5 287.6 355.1 59.4 198.8 69.8 287.1 356.9 3.4 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above, mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non- Total bor- Re­ Avail­ Demand Demand rowed quired able2 Time Time Total and U.S. Total and U.S. S.A. N.S.A. savings Private Govt. savings Private Govt. 1969-—Dec___ 27.96 26.70 27.73 25.34 287.7 150.4 131.9 5.3 291.2 149.7 136.9 4.6 307.7 311.1 1970—Dec.... 29.12 28.73 28.91 26.98 321.3 178.8 136.0 6.5 325.2 178.1 141.1 6.0 332.9 336.8 1971-—Dec.... 31.21 31.06 31.06 28.91 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972-—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 32.33 30.17 32.08 29.86 421.1 261.8 153.4 5.8 422.3 260.5 154.9 6.8 426.2 427.5 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__ 32.46 *■30.80 32.21 r30.51 428.9 267.4 156.4 5.1 426.3 265.9 154.8 5.7 434.5 431.9 July.. .. r33.57 r32.33 33.30 r31.32 r431.2 r270.4 r157.3 3.4 r429.9 *•268.5 M56.2 5.1 r437.7 r436.4 Aug.p. . 33.91 32.00 33.74 31.97 436.7 275.5 157.0 4.2 433.7 276.5 154.0 3. 1 443.9 440.8 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 I 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. ments1 Total1 loans Plus Treas­ Other3 ments 1 Total1 loans Plus Treas­ Other 3 sold2 Total loans ury sold2 Total loans ury sold2 sold2 1968—Dec. 31___ 390.6 258.2 95.9 61.0 71.4 400.4 264.4 98.4 64.5 71.5 1969—Dec. 314 ... 402.1 279.4 283.3 105.7 108.3 51.5 71.2 412.1 286.1 290.0 108.4 111.0 54.7 71.3 1970—Dec. 31___ 435.9 292.0 294.9 109.6 111.7 58.0 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31___ 485.7 320.6 323.4 115.5 117.1 60.7 104.5 497.9 328.3 331.1 118.5 120.1 64.9 104.7 1972—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. 31p. . . 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. 28p... 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 59.7 118.7 590.8 414.7 418.4 146.7 148.9 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 Aug. 29*... 610.9 433.7 438.5 154.9 157.8 56.6 120.6 606.8 431.9 436.7 152.7 155.6 53.9 121.0 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. For a 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 □ SEPTEMBER 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, S> 82 44,349 15,952 23 7,173 14,278 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,C) 65 105,921 30,241 219 8,950 14,011 1947—Dec. 31 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-—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*.. 627,280 452,100 55,520119,660 96,130 755,040 612,350 28,580 5,750 6,680 225,630 345,710 52.410 54,380 14.067 Aug. 29*.. 633,110 458,200 53.910121,000 92,370 758,440 612,200 26,390 6,540 3,420 221,840 354,010 52,980 54.780 14.067 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-—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... 489,240 360.813 39,331 89,096 82,091 597,607 478,417 27,121 5,121 5,423 175.351 265,401 48,761 42,539 5.706 Aug. 29*.. 494,196 365,947 38,233 90,016 78,475 600,202 478,274 24,976 5,911 2,701 172,078 272,608 49,283 42.806 5.706 Large member banks: New York City:8,9, 10 1Q41—TW 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-—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. 21... 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 Aug. 29... 80,338 66,610 4,095 9,633 20,095 108,141 78,925 12,092 3,558 310 28,185 34.780 12,368 8,220 13 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 assets 3 and Demand ings counts banks l U.S. capital Total3 Treas­ Other ac­ De­ Time Time5 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. 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—Aug. 30............ 19,200 14,701 1,455 3,044 2,880 23,128 17,147 1,487 196 68 6,226 9,170 2,985 1,850 9 Sept. 27............ 19,270 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. 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. 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. 28............ 22,660 17,980 1,470 3,210 3,092 26,821 19,854 1,326 266 461 6,439 11,362 3,910 1,878 9 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 Aug. 29............ 25,400 20,676 1 ,322 3.402 3,569 30,358 22,272 1 ,355 499 86 6,725 13.607 4.647 1.941 9 Other large member: 8,9 1Q41—TW 11______ 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 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 i8,484 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—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. 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 Aug. 29............ 181,404 140,150 11,573 29,681 29,551 221.043 171,726 8.467 1,459 1 .051 60,607100.142 23,670 15,239 156 All other member: *,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. 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—Aug. 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. 189,164 121,498 23,512 44,154 28,205 224,720 194,272 3,485 395 2,509 76,158111,725 5,242 16,000 5,521 Nov. 29............ 191,533 123,590 23,756 44,187 24,989 224,472 194,565 3,014 395 2,390 76,235112,531 5,379 16,089 5,523 Dec. 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. 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. 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 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.......... 205,657 137,060 21,938 46,659 25,910 239,796 205,480 3,178 395 2,205 77,281122,421 8,490 17,217 5,528 Aug. 29 p.......... 207,054 138,511 21,243 47,300 25,260 240,660 205,351 3,062 395 1,254 76,561124,079 8,598 17,406 5,528 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS □ SEPTEMBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) 1 Loans and investments Deposits | Total assets— j Classification by Securities Total Interbank3 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 G U o .S vt . . Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,(5 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13, \ 383 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664, 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—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 28,398 3,033 9,062 217,641 291,850 32,828 49,623 13,669 Dec. 31.. 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Mar. 28.. 606,852 428,235 178,617 89,402 724,105 594,805 25,721| 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 46j634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—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 14,134 2,285 6,866 127,001 195,056 30,336 30,924 4.607 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,'4 11 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—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 1971—Dec. 31.. 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—June 30.. 105,895 75,047 10,450 20,398 26.248 138,021 111,705 11,595 879 1,935 43,965 53,331 8,936 10,645 1,108 Dec. 31.. 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 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 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262j 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 709I 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 786I 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 12,092 123,970i 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 i 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 : 1,796i 52,876 i 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

SEPTEMBER 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 s i n n s m i d s f u e ic F r m a a D n t b i c I o e C e r n s h b i y p Total Loa l ns T U re . S S a e s . c ­ urit O ie t s h 2 er a C ss a e s t h s3 c b T a i a l a l o p i n i 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 o p u c t i n ­ a ta t l s l N ba b u o n e m f k r s ­ ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941 Dec. 31.......... 1,457 455 761 241 763 2,283 1,872 329 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 Dec. 31.......... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1971—Dec. 31........ 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—June 30........ 4,192 3,230 274 688 1,220 5,884 3,153 384 81 21 1,409 1,258 386 494 206 Dec. 31........ 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 Total nonmember: 1941 Dec. 31.......... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31...... 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.......... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1963—Dec. 20.......... 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—Dec. 31.......... 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965-Dec. 31.......... 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1967—Dec. 30.......... 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31.......... 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 7 .... 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 Dec. 31.......... 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 1971—Dec. 31........ 111,674 69,411 17,297 24,966 13,643 129,100112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972 June 30........ 120,510 76,357 16,550 27,603 13,042 137,658 119,145 1,472 397 1,453 46,631 69,192 1,462 10,759 8,161 Dec. 31........ 133,198 85,325 18,313 29,559 16,562 154,085 134,091 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 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. i960, 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 □ SEPTEMBER 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans i Investments b c C a a l n l a l k s d s a a o n te d f l i T o n a a v o n n e t d a s s t l 1 ­ f s F e u o e r n l a d d d l - , s Total C m c o i e a m r l ­ ­ A cu g l r - i- o p s r u e r c c c F a u h r o r a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s R e e s a ­ l Ot i t h n o e - r, Other U s .S ec . u T ri r t e i a e s s u 6 ry S l a o t n a c d a te l Other ments etc.2 3, 4 a i n n d ­ t a u l r- 5 b T ro o ­ tate v d id i- - 5 Bills s g e o c v u t ­ . r s i e ti c e u s ­ 5 d tr u ia s l ­ k an er d s ot T h o ers Banks Others uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1969—Dec. 31 io 422,728 9,928286,750108,44310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1972—Dec. 31.599,36726,662388,593 132,701 14,314 11,3164,491 6,58523,40298,38287,232 10,17167,028 89,50427,579 All insured: 1941_Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 ,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 io419,746 9,693284,945107,685 10.314 5,6443,991 2,425 14,89069,66963,008 7,31954,399 58,84011,869 1972—Dec. 31.594,50225,584385,941 131,422 14,28711,1654,460 6,11523,27798,20486,91210,09966,679 89,17327,125 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 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1969—Dec. 31 io337,613 7,356235,63996,0956,187 5,408 3,286 2,258 14,03553,20748,388 6,77639,833 47,2277,558 1972—Dec. 31.466,169 19,961309,969 112,110~ ,49510,8633,870 5,78322,02673,131 64,4909,201 48,715 69,640 17,884 1973—Mar. 28.472,546 19,090322,778 New York City:n 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,503 28,189 3.695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 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: i1 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1969—Dec. 31 io 14,365 215 10,556 6,444 50 337 262 186 1,219 842 862 354 1,564 1,837 192 1972—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 35120,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io121,628 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:11 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 io141,286 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 4521,040 455 2,56539,26235,4582,22024,830 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 10911,318 2,179 1,219 7,920 1,078 625 1969—Dec. 3110 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

SEPTEMBER 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 s B w F e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w d n e n i o c s t k e t ­ h i s s c 7 ju p m s o a d a t s d e e n i ­ ­ d t d s 8 m D e I s n o t t ­ i e c r 7 b e a F i n g o k n r­ 9 G U o . v S t . . S g l a o o t n c a v d a t t e l . c C c h o f a e e i e f n e r r f c d d i t s k ­ i ’ ­ s, IPC I b n a t n e k r­ G P U S a o o a n . s v S v d t t . ­ a . l S g l a o o t n c a v d a t t e l . IPC3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s etc. ings Total:3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1969—Dec. 31io.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 1972—Dec. 31... 26,070 8,666 32,185212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 60637,161277,683 38,08352,658 All insured: 1941_Dec. 31. . .. 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 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 60637,086276,13837,55652,166 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 46828,553211,12436,35741,228 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 30,1219,951 8,112 Ci 1 ty 9 4 o 1 f — C D hi e c c a . g 3 o: 1 1 . 1 . .. 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 9,2373,008 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. 31 io.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1972—Dec. 31... 10,085 2,114 4,688 52,813 10,426 707 3,860 3,854 3,075 64,447 1,173 181 11,811 74,449 19,39214,687 1973—Mar. 28 . . . 10,958 2,124 3,694 48,856 7,762 639 3,767 3,421 2,336 54,882 1,196 17512,810 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. 31 io.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 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 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1969—Dec. 31 io 1,644 8,383 38,644 1,112 222 940 4,284 1,416 33,420 126 25 3,269 41,135 965 7,931 1972—Dec. 31 2,084 12,789 53,658 1,449 446 1,851 5,044 2,182 47,180 633 138 8,608 66,559 1,726 11,429 7 Beginning with 1942, excludes reciprocal bank balances. parallel the previous “Reserve city” and “Country” categories, respectively 8 Through 1960 demand deposits other than interbank and U.S. (hence the series are continuous over time). Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Note.—Data are for all commercial banks in the United States; member Govt., less cash items in process of collection. banks in U.S. possessions were included through 1968 and then excluded. 9 For reclassification of certain deposits in 1961, see note 6, p. 589, For the period June 1941—June 1962 member banks include mutual May 1964 Bulletin. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports and one through June 1962. Those banks are not included in all insured or (including figures for all bank-premises subsidiaries and other significant total banks. majority-owned domestic subsidiaries) and (2) reporting of figures for A small noninsured member bank engaged exclusively in trust business total loans and for individual categories of securities on a gross basis—that is treated as a noninsured bank and not as a member bank for the period is, before deduction of valuation reserves. See also notes 1 and 6. June 30, 1969—June 30, 1970. 11 Beginning Nov. 9,1972, designation of banks as reserve city banks for Comparability of figures for classes of banks is affected somewhat by reserve-requirement purposes has been based on size of bank (net demand changes in F.R. membership, deposit insurance status, and the reserve deposits of more than $400 million), as described in the Bulletin for classifications of cities and individual banks, and by mergers, etc. July 1972, p. 626. Categories shown here as “Large” and “All other” For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ SEPTEMBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. * Other To brokers For pur chasing and dealers or carrying; securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury trial U.S. U.S. and se­ curi- Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1972 Aug. 2............. 298,432 11,804 10,692 682 252 178 85,307 2,595 892 7,631 176 2,724 6,400 9,879 9............. 297,297 11,523 10,326 718 300 179 85,016 2,590 750 7,249 165 2,733 6,377 9,908 16............. 298,465 12,069 11,073 583 259 154 85,261 2,593 862 7,176 165 2,719 6,314 10,043 23............. 298,912 12,171 10,278 1,496 216 181 85,158 2,589 970 7,074 185 2,730 6,184 10,167 30............. 297.748 10,757 9,872 489 226 170 85,011 2,575 849 7,108 184 2,783 6,284 10,243 1973 July 4............. 346,465 12,567 11,422 755 247 143 105,676 3,251 381 5,451 210 2,900 8,939 16,723 11............. 347,751 11,615 9,877 1,285 225 228 106,303 3,260 2,157 5,569 208 2,910 8,660 16,381 18............. 347,605 13,922 12,738 887 150 147 106,673 3,253 523 5,193 209 2,953 8,655 16,398 25............. 346,922 12,412 11,005 972 119 316 106,892 3,259 766 5,305 204 2,946 8,749 16,367 Aug. 1*........... 349,072 12,773 11,532 872 130 239 107,557 3,256 659 5,305 189 2,977 9,691 16,805 8*........... 352,538 15,352 12,035 2,587 225 505 108,084 3,295 1,164 5,299 189 2,997 9,425 16,858 15*........... 355,591 15,375 12,019 2,839 233 284 108,137 3,312 1,482 5,255 188 2,999 9,645 16,975 22*........... 350,383 13,326 11,528 1,369 160 269 > 107,896 3,304 830 5,002 181 2,960 8,879 16,962 29*........... 350,428 13,416 12,000 1,011 131 274 1 106,957 3,289 1,311 5,199 193 2,928 8,823 16,981 New York City 1972 Aug. 2............. 62,620 1,196 1,177 24,232 30 733 4,935 41 652 1,791 2,590 9............. 62,070 1,142 1,059 68 24,105 30 651 4,609 41 652 1,792 2,592 16............. 62,084 975 970 24,095 30 750 4,511 41 648 1,783 2,694 23............. 62,635 1,356 1,220 24,170 39 836 4,417 41 650 1,684 2,748 30............. 62,067 985 954 24,168 40 727 4,448 40 652 1,781 2,742 1973 July 4............. 73,669 2,255 2,227 30,010 71 296 3,113 47 654 2,763 5,490 11............. 74,775 1,217 1,201 30,322 73 2,062 3,242 46 648 2,536 5,259 18............. 74,305 2,921 2,831 30,462 73 441 2,937 44 679 2,504 5,293 25............. 73,544 1,688 1,667 30,583 73 585 3,059 43 674 2,635 5,374 Aug. 1*........... 75,088 2,656 2,617 30,800 75 567 3,025 38 688 3,113 5,674 8*........... 75,245 2,289 2,191 31,081 78 1,085 3,011 43 693 2,877 5,688 15*........... 76,451 1,878 1,777 15 30,958 79 1,367 3,067 44 686 3,077 5,643 22*............ 74,051 1,359 1,246 30,879 76 727 2,901 43 682 2,672 5,657 29*........... 74,329 1,447 1,359 30,336 75 1,200 3,103 41 681 2,631 5,678 Outside New York City 1972 Aug. 235,812 10,608 9,515 682 252 159 61,075 2,565 159 2,696 135 2,072 4,609 7,289 235,227 10,381 9,267 718 232 164 60,911 2,560 99 2,640 124 2,081 4,585 7,316 236,381 11,094 10,103 583 259 149 61,166 2,563 112 2,665 124 2,071 4,531 7,349 236,277 10,815 9,058 1,364 216 177 60,988 2,550 134 2,657 144 2,080 4,500 7,419 235,681 9,772 8,918 489 226 139 60,843 2,535 122 2,660 144 2,131 4,503 7,501 1973 July 272,796 10,312 9,195 729 247 141 75,666 3,180 85 2,338 163 2,246 6,176 11,233 272,976 10,398 8,676 1,269 225 228 75,981 3,187 95 2,327 162 2,262 6,124 11,122 273,300 11,001 9,907 798 150 146 76,211 3,180 82 2,256 165 2,274 6,151 11,105 273,378 10,724 9,338 956 119 311 76,309 3,186 181 2,246 161 2,272 6,114 10,993 Aug. 1*. 273,984 10,117 8,915 837 130 235 76,757 3,181 92 2,280 151 2,289 6,578 11,131 8*. 277,293 13,063 9,844 2,491 225 503 77,003 3,217 79 2,288 146 2,304 6,548 11,170 15*. 279,140 13,497 10,242 2,785 218 252 77,179 3,233 115 2,188 144 2,313 6,568 11,332 22*. 276,332 11,967 10,282 1,303 160 222 > 77,017 3,228 103 2,101 138 2,278 6,207 11,305 29*. 276,099 11,969 10,641 960 131 237 i 76,621 3,214 111 2,096 152 2,247 6,192 11,303 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ WEEKLY REPORTING BANKS A 25 LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Investments U.S. Treasury securities Notes and bonds maturing— Wednesday For­ All Certif­ eign other Total Bills icates govts.2 Within 1 to After 1 yr. 5 yrs. 5 yrs. Large banks— Total 1972 1,029 16,777 25,770 3,268 5,328 14.489 2,685 .........................Aug. 2 1,050 16,657 25,466 3,072 5,308 14,415 2,671 .................................. 9 1,043 16,774 25,246 2,997 4,281 14,860 3,108 ..................................16 1,034 16,621 25,417 3,131 4,529 14.489 3,268 ..................................23 1,078 16,511 25,651 3,566 4,581 14,324 3.180 ..................................30 1973 50, 1.241 20,438 23,825 4,152 4,151 12,755 2,767 .........................July 4 50, 1,248 20,536 23,613 4,059 4,146 12,665 2,743 ...................................11 50, 1,201 20,321 23,137 3,585 4,083 12,723 2,746 ...................................18 50, 1,224 19,945 22,732 3,133 4,153 12,713 2,733 ...................................25 51, 1,230 20,366 22,301 2,954 4,055 12,615 2,677 .........................Aug. 1* 51, 1,236 19,993 22,151 2,902 4,094 12,550 2,605 ................................... 8p 51, 1,233 20,353 23,018 4,116 3,858 12,354 2,690 ...................................\5p 51, 1,214 19,899 22,491 3,780 3,854 12,213 2,644 ...................................22p 51, 1.241 20,141 22,000 3,424 3.834 12.117 2.625 ...................................29 p New York City 1972 4, 626 3,381 4,851 881 1,349 2,464 157 .........................Aug. 2 4, 634 3,353 4,76C 733 1.369 2,477 181 ................................... 9 4, 627 3,406 4,546 703 878 2,551 414 ..................................16 4, 632 3,350 4,697 839 912 2,470 476 ..................................23 4. 661 3,284 4,877 1.209 917 2.328 423 ...................................30 1973 5, 662 4,317 3,953 1,153 569 1,597 634 .........................July 4 5, 676 4,493 3,859 1,125 579 1,572 583 ...................................11 5, 621 4,301 3,774 1,( 548 1,560 578 ...................................18 5, 625 3,974 3,742 1,003 584 1,576 579 ...................................25 5, 628 4,330 3,516 859 611 1,519 527 .........................Aug. \p 5, 613 4.109 3,460 805 649 1,523 483 .................................. 8* 5, 598 4,266 3,995 1,175 728 1,569 523 ..................................15 p 5, 599 4,004 4,017 1,274 632 1,587 524 ...................................22^ 5, 621 4.109 3.856 1.100 618 1.633 505 ..................................29 v Outside New York City 1972 38, 403 13,396 20,919 2,387 3,979 12,025 2,528 .........................Aug. 2 38, 416 13,304 20,706 2,339 3,939 11,938 2,490 ................................... 9 38. 416 13,368 20,700 2,294 3,403 12,309 2,694 ...................................16 38; 402 13,271 20,720 2,292 3,617 12,019 2,792 ...................................23 38. 417 13,227 20,774 2,357 3,664 11,996 2,757 ..................................30 1973 44 579 16,121 19,872 2,999 3,582 11,158 2,133 .........................July 4 44 572 16,043 19,754 2,934 3,567 11,093 2,160 ...................................II 45 580 16,020 19,363 2,497 3,535 11,163 2,168 ...................................18 45 599 15,971 18,990 2,130 3,569 11,137 2,154 ...................................25 45 602 16,036 18,785 2,095 3.444 11,096 2,150 .........................Aug. 1 p 45 623 15,884 18,691 2,097 3.445 11,027 2,122 .................................. 8* 635 16,087 19,023 2,941 3,130 10,785 2,167 ...................................15^ 615 15,895 18,474 2,506 3,222 10,626 2,120 ...................................22* 620 16,032 18,144 2,324 3,216 10,484 2,120 ..................................29 p Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

’ORTING BANKS □ SEPTEMBER 1973 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continu (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re­ Bal­ of State corp. stock, in serves Cur­ ances and and process with rency with political securities of F.R. and do­ liab Total subdivisions collec­ Banks coin mestic iti< tion banks Tax Certif. war­ All of All rants3 other partici­ other5 pation4 54,192 8,946 37,276 1.568 6,402 30,039 21,966 3,651 8,389 380 54,361 9,081 37,285 1.569 6,426 27,030 21,326 3,686 8,112 375 54,394 9,267 37,182 1,541 6,404 29,385 21,532 3,703 8,505 379 54,446 9,179 37,347 1,547 6,373 26,076 19,877 3,851 8,334 374 54,380 9,104 37,273 1,496 6,507 27,023 21,457 3,950 8,554 376 55,503 7,926 37,990 1,633 7,954 36,642 22,910 3,751 10,065 441 55,701 7,925 37,949 1,743 8,084 29,886 18,306 4,211 9,221 430 55,457 7,743 37,811 1,769 8,134 30,117 21,789 4,169 9,913 434 56,048 7,954 37,965 1,831 8,298 28,829 20,903 4,249 10,058 432 55,970 7,973 37,998 1,847 8,152 31,657 22,549 4,043 11,457 440 55,998 7,944 38,033 1,958 8,063 27,495 18.452 3,954 10,423 434 56,725 8,103 38,467 1,924 8,231 30,329 20,707 4,085 9,980 443 56,234 7,781 38,341 1,948 8,164 26,710 21,592 4,184 10,220 434 56,331 7,713 38,179 1,993 8.446 26,183 21.452 4,395 8,716 433 9,258 2,869 5,212 286 891 10,276 4,442 435 2,772 86, 9,306 2,868 5,271 285 882 9,485 5,239 435 2,779 85; 9.527 3,072 5,270 278 907 8,915 5,191 434 3,054 85; 9.528 3,031 5,326 264 907 8,558 4,684 438 3,115 84 9,268 2,910 5,159 271 928 9,554 5,287 459 3,099 85 8,538 2,013 4,673 368 1,484 11,702 6,652 468 4,206 103 8,769 2,090 4,722 434 1,523 9,698 5,098 491 4,025 100 8,684 2,108 4,607 443 1,526 9,364 7,171 478 4,554 102 8,908 2,304 4,627 464 1,513 10,788 6,389 478 4,817 102 8,746 2,232 4,588 508 1,418 10,879 5,653 483 5,273 104, 8,725 2,173 4,574 605 1,373 9,568 5,185 486 4,972 102; 9,261 2,359 4,876 570 1.456 8,999 5,428 498 4,609 103; 8,972 2,243 4,793 575 1,361 8.317 6,585 488 5,076 10i; 8,901 2,202 4.619 624 1.456 8.698 5,867 511 4,011 101 44,934 6,077 32,064 1,282 5,511 19,763 17,524 3,216 5,617 294 45,055 6,213 32,014 1.284 5,544 17,545 16,087 3,251 5,333 289 44,867 6,195 31,912 1,263 5,497 20,470 16,341 3,269 5,451 293 44,918 6,148 32,021 1,283 5,466 17,518 15,193 3,413 5,219 289 45,112 6,194 32,114 1,225 5,579 17,469 16,170 3,491 5,455 290 46,965 5,913 33,317 1,265 6,470 24,940 16,258 3.283 5,859 337 46,932 5,835 33,227 1,309 6,561 20,188 13,208 3,720 5,196 329 46,773 5,635 33,204 1,326 6,608 20,753 14,618 3,691 5,359 331 47,140 5,650 33,338 1,367 6,785 18,041 14,514 3,771 5,241 329; 47,224 5,741 33,410 1,339 6,734 20,778 16,896 3,560 6,184 336, 47,273 5,771 33,459 1.353 6,690 17,927 13,267 3,468 5,451 332, 47,464 5,744 33,591 1.354 6,775 21,330 15,279 3,587 5,371 339, 47,262 5,538 33,548 1,373 6,803 18,393 15,007 3,696 5,144 332, 47,430 5,511 33,560 1.369 6,990 17,485 15,585 3,884 4,705 332, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 147,378 104,095 6,744 4,472 20,957 747 953 2,959 6,451 152,111 57,892 67,564 18,334 2,474 5,375 140,911 101,382 5,994 3,401 20,140 700 800 2,926 5,568 152,984 57,924 68,458 18,331 2,433 5,371 ......................... 9 143,100 104,684 6,261 1,981 20,195 688 774 2,984 5,533 153,472 57,901 68,933 18,297 2,480 5,394 .........................16 138,860102,011 5,806 2,048 19,350 632 715 2,719 5,579 154,459 57,867 69,792 18,458 2,501 5,368 .........................23 140,450 102,374 6,038 1,715 20,357 682 864 2,999 5,421 155,495 57,827 70,796 18,488 2,542 5,335 .........................30 1973 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 4 153,096 110,682 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 ..........................11 153,340 111,502 6,089 3,215 21,083 783 1,076 3,292 6,300 181,811 57,999 89,445 21,325 4,487 7,967 ..........................18 150,989 106,783 6,013 3,945 21,008 738 1,003 3,685 7,814 183,778 57,641 91,262 21,731 4,597 7,960 ..........................25 157,605 111,528 6,901 3,010 22,749 857 1,135 3,539 7,886 185,434 57,345 92,791 21,978 4,715 8,050 147,750 105,985 6,060 1,404 22,495 874 951 3,667 6,314 187,307 57,136 94,404 22,193 4,951 8,118 ......................... 8* 154,094 112,546 6,717 2,222 21,482 824 998 3,380 5,925 188,819 56,809 96,021 22,207 5,252 8,060 .........................15* 144,371 106,331 5,676 1,820 19,724 792 819 3,556 5,653 190,039 56,612 96,913 22,544 5,430 8,102 .........................22* 143,516 105.635 5,703 1,816 19,076 728 891 3,527 6,140 190,774 56,299 97,917 22,674 5,422 8,060 .........................29* New York City 1972 38,806 22,651 352 832 8,641 398 810 2,116 3,006 26,023 5,695 13,987 2,183 1,243 2,831 36,860 21,716 357 633 8,617 369 653 2,032 2,483 26,182 5,696 14,343 2,060 1,186 2,813 ......................... 9 36,504 22,336 460 253 8,040 348 633 2,112 2,322 26,395 5,699 14,527 2,043 1,234 2,809 .........................16 35,912 22,043 381 315 7,965 319 558 1,873 2,458 26,819 5,702 14,901 2,097 1,246 2,787 .........................23 37,256 22,169 363 274 8,983 349 674 2,153 2,291 27,268 5,673 15,384 2,070 1,280 2,775 .........................30 1973 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 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 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 .........................18 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 44,216 24,608 432 528 10,878 449 976 2,503 3,842 34,262 5,147 19,943 2,093 3,072 3,939 40,932 22,139 441 128 11,588 479 770 2,663 2,724 34,725 5,119 20,239 2,027 3,280 3,991 ......................... 8* 41,860 24,665 570 466 10,350 429 832 2,399 2,149 35,043 5,075 20,335 2,128 3,466 3,978 .........................15* 38,418 22,545 401 230 9,418 448 657 2,543 2,176 34,817 5,036 19,945 2,222 3,511 4,044 .........................22* 38,340 22,342 327 295 8,933 383 728 2,518 2,814 35,150 4,991 20,405 2,148 3,517 4,037 .........................29* Outside New York City 1972 108,572 81,444 6,392 3,640 12,316 349 143 843 3,445 126,088 52,197 53,577 16,151 1,231 2,544 104,051 79,666 5,637 2,768 11,523 331 147 894 3,085 126,802 52,228 54,115 16,271 1,247 2,558 .......................... 9 106,596 82,348 5,801 1,728 12,155 340 141 872 3,211 127,077 52,202 54,406 16,254 1,246 2,585 .........................16 102,948 79,968 5,425 1,733 11,385 313 157 846 3,121 127,640 52,165 54,891 16,361 1,255 2,581 .........................23 103,194 80,205 5,675 1,441 11,374 333 190 846 3,130 128,227 52,154 55,412 16,418 1,262 2,560 .........................30 1973 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 3,986 112,446 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 ..........................11 111,862 87,291 5,765 2,564 10,951 369 184 1,032 3,706 148,642 52,752 70,284 19,434 1,713 3,951 ..........................18 108,652 84,168 5,710 3,208 10,498 347 277 976 3,468 150,149 52,445 71,810 19,685 1,685 4,003 ..........................25 113,389 86,920 6,469 2,482 11,871 408 159 1,036 4,044 151,172 52,198 72,848 19,885 1,643 4,111 106,818 83,846 5,619 1,276 10,907 395 181 1,004 3,590 152,582 52,017 74,165 20,166 1,671 4,127 ......................... 8* 112,234 87,881 6,147 1,756 11,132 395 166 981 3,776 153,776 51,734 75,686 20,079 1,786 4,082 .........................15* 105,953 83,786 5,275 1,590 10,306 344 162 1,013 3,477 155,222 51,576 76,968 20,322 1,919 4,058 105,176 83,293 5,376 1,521 10,143 345 163 1,009 3,326 155,624 51,308 77,512 20,526 1,905 4,023 .........................29* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS o SEPTEMBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed- Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits11 ties of pur­ F.R. ties, Secur­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed io to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1972 Aug. 2...................... 30,164 1,200 1,494 15,440 4,171 28,514 206,437 286,399 91,910 38,227 24,067 14,160 1,829 9...................... 31,162 111 1,530 14,933 4.166 28,547 205,802 285,629 90,340 38,936 24,862 14,074 1,250 16...................... 31,997 439 1,486 15,810 4,168 28,489 206,425 286,065 91,539 39,401 25,254 14,147 1,778 23...................... 30,285 809 1,555 15,661 4.167 28,537 207,339 287,202 91,386 40,312 26,047 14,265 1,845 30...................... 29,623 1,178 1,479 15,182 4,183 28,606 206,401 286,432 91,355 41,212 26,835 14,377 1,262 1973 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 17,219 4.492 30,631 253,022 331,616 98,925 61,878 41,625 20,253 2,146 25...................... 38,743 1,299 4,512 17,558 4,495 30,651 253,787 332,567 97,207 63,766 43,122 20,644 2,092 Aug. 1 *.................... 38,677 698 4,356 18,775 30,854 256,139 334,410100,189 64,901 43,950 20,951 2,226 8*.................... 40,418 826 4,556 18,624 30,878 259,184 337,333 96,356 66,570 45,198 21,372 2,276 15*.................... 39.747 1,959 4,715 18,426 30,816 260,664 340,407 100,061 68,179 46,480 21,699 1,900 22*.................... 38,374 2,282 5,286 18,858 30,790 256,814 335,539 96,117 69,103 47,140 21,963 2,440 29*.................... 36,886 2,546 5,619 18,794 4,553 30,732 256,706 335,037 96,441 69,835 48,082 21,753 2,793 New York City 1972 Aug. 2...................... 6,324 511 371 5,805 1,224 7.202 46,934 61,043 19,057 13.304 8,827 4,477 1,446 9...................... 8,032 275 335 5,320 1,221 7.202 46,464 60,530 18,125 13,542 9,243 4,299 973 16...................... 7,755 37 339 5,686 1,222 7,188 46,579 60,652 19,296 13,830 9,498 4,332 1,448 23...................... 6,962 570 354 5,837 1,227 7,183 46,718 60,943 19,074 14.304 9,947 4,357 1,543 30...................... 6,794 482 316 5,277 1,235 7,258 46,516 60,661 18,445 14,678 10,354 4,324 931 1973 July 4...................... 9,628 539 1,793 6,312 1,284 7.778 57,581 70,072 20,360 19,367 12,748 6,619 1,512 11...................... 9,001 807 1,876 6,346 1,275 7,772 59,685 72,313 20.931 19,475 12,744 6,731 1,354 18...................... 10,517 2,131 6,609 1 ,279 7,741 57,787 70,245 21,331 19,725 13,072 6,653 1,669 25...................... 9,318 257 2,125 6,282 1,282 7,723 57,905 70,555 20,302 20,209 13,362 6,847 1,470 Aug. 1 p.................... 7,963 2,080 7,212 1,288 7,798 59,025 71,287 21.931 20,676 13,634 7,042 1,657 8*.................... 8,954 15 2,057 7,114 1,294 7,808 59,706 71,891 19,648 21,064 13,881 7,183 1,701 15*.................... 8,925 265 2,041 6,771 1,293 7,801 60,249 73,505 22,045 21,406 13,933 7,473 1,329 22*.................... 9,303 837 2,456 7,008 1,296 7.779 58,579 71,568 20,453 21,196 13,610 7,586 1,779 29*.................... 8,396 527 2,606 7,025 1,302 7,734 58,934 71,691 20,414 21,589 14,084 7,505 2,327 Outside New York City 1972 Aug. 2...................... 23,840 689 1,123 9,635 2.947 21,312 159,503 225,356 72,853 24,923 15,240 9,683 383 9...................... 23,130 502 1,195 9,613 2.945 21,345 159,338 225,099 72,215 25,394 15,619 9,775 277 16...................... 24,242 402 1,147 10,124 2.946 21,301 159,846 225,413 72,243 25,571 15,756 9,815 330 23...................... 23,323 239 1,201 9,824 2,940 21,354 160,621 226,259 72,312 26,008 16,100 9,908 302 30...................... 22,829 696 1 ,163 9,905 2.948 21,348 159,885 225,771 72,910 26,534 16,481 10,053 331 1973 July 4...................... 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 10,610 3.213 22,890 195.235 261,371 77,594 42,153 28,553 13,600 477 25...................... 29,425 1,042 2,387 11,276 3.213 22,928 195,882 262,012 76,905 43,557 29,760 13,797 622 Aug. 1 *.................... 30,714 698 2,276 11,563 3,236 23,056 197,114 263,123 78,258 44,225 30.316 13,909 569 8*.................... 31,464 811 2,499 11,510 3.239 23,070 199,478 265,442 76,708 45,506 31.317 14,189 575 15*.................... 30,822 1,694 2,674 11,655 3,238 23,015 200,415 266,902 78,016 46,773 32,547 14,226 571 22*.................... 29,071 1,445 2,830 11,850 3.240 23,011 198.235 263,971 75,664 47,907 33,530 14,377 661 29*.................... 28,490 2,019 3,013 11,769 3,251 22,998 197,772 263,346 76,027 48,246 33,998 14,248 466 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- Industry 1973 1973 1973 1972 1973 1972 Aug. Aug. Aug. Aug. Aug. 1st 2nd 29 22 15 8 1 Aug. July June II I IV half half Durable goods manufacturing: Primary metals................................. 1,995 2,010 1,999 2,005 1,999 -4 -39 15 -102 122 20 20 -79 Machinery........................................ 6,349 6,430 6,498 6,382 6,265 53 240 351 645 808 496 1,453 395 Transportation equipment.............. 2,513 2,497 2,474 2,278 2,245 253 102 32 32 -173 64 -258 Other fabricated metal products. .. 2,269 2,284 2,319 2,291 2,269 -41 48 104 267 236 -24 503 57 Other durable goods........................ 3,907 3,924 3,889 3,866 3,867 122 9 140 323 549 -13 872 69 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,706 3,788 3,780 3,756 3,708 -50 332 85 -194 171 640 -23 827 Textiles, apparel, and leather.......... 3,634 3,661 3,678 3,614 3,575 85 125 166 275 455 -351 730 -166 Petroleum refining........................... 1,250 1,233 1,246 1,243 1,250 62 4 -7 218 10 211 -14 Chemicals and rubber..................... 2,633 2,662 2,652 2,641 2,610 31 -64 53 63 746 -9 809 -262 Other nondurable goods................. 2,132 2,114 2,131 2,150 2,111 29 49 46 157 203 -65 360 30 Mining, including crude petroleum and natural gas........................... 4,010 4,010 4,073 4,115 4,078 -119 169 -5 331 -33 331 25 Trade: Commodity dealers................. 1,284 1,304 1,296 1,300 1,270 12 18 -136 -603 63 481 -540 622 Other wholesale....................... 5,210 5,261 5,307 5,300 5,336 -113 102 35 183 384 61 567 216 Retail........................................ 6,090 6,166 6,247 6,299 6,270 -53 51 120 457 635 166 1,092 473 Transportation..................................... 5,932 6,036 5,999 5,993 5,994 -30 78 143 283 11 235 294 -42 Communication................................... 2,050 2,161 2,131 2,159 2,172 -84 17 -29 79 179 147 258 424 Other public utilities........................... 4,678 4,751 4,735 4,829 4,810 -49 180 262 670 291 531 961 939 Construction........................................ 5,800 5,799 5,815 5,773 5,718 104 104 196 624 304 38 928 364 Services................................................. 10,383 10,374 10,355 10,329 10,271 166 88 248 455 542 558 997 494 All other domestic loans..................... 8,056 8,112 8,129 8,087 8,078 214 253 106 782 972 168 1,754 239 Bankers’ acceptances........................... 1,227 1,275 1,371 1,456 1,421 -105 -65 93 76 -230 302 -154 100 Foreign commercial and industrial loans.............................................. 4,174 4,261 4,195 4,384 4,449 -267 3 -6 -22 580 414 558 491 Total classified loans........................... 89,282 90,113 90,319 90,250 89,766 154 1,862 1,991 4,443 7,602 3,599 12,045 4,944 Total commercial and industrial loans of large commercial banks.......... *106,957*107,896*108,137p108,084^107,557 65 1,896 2,202 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 Aug. July June May Apr. Mar. Feb. Jan. Dec. 1st 29 25 27 30 25 28 28 31 27 II I IV III half 1 Durable goods manufactur- Primary metals................... 1,294 1,293 1,328 1,314 1 ,315 1 ,335 1,307 1,336 1 .268 -7 67 -35 -67 60 Machinery.......................... 2,640 2,664 2,641 2,560 2,555 2,313 2,305 2,271 2,154 328 159 249 -49 487 Transportation equipment. 1,226 1,193 1,189 1,168 1.180 1,174 1,217 1,246 1,205 15 -31 -102 -52 -16 Other fabricated metal products......................... 846 861 869 833 842 785 765 751 720 84 65 41 4 149 Other durable goods.......... 1,730 1.720 1,690 1,592 1 .614 1,520 1,464 1.348 1.239 170 281 51 6 451 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,405 1,410 1,393 1 ,372 1 ,355 1,350 1,325 1,304 1,234 43 116 155 153 159 Textiles, apparel, and leather............................. 1,021 1,003 969 942 978 892 843 781 723 77 169 12 57 246 Petroleum refining............. 925 947 876 885 858 842 778 781 698 34 144 19 -15 178 Chemicals and rubber....... 1,494 1,486 1,481 1,441 1,459 1.479 1.439 1,359 1 ,153 2 326 -6 -65 328 Other nondurable goods. . 1,069 1,050 1,063 1,063 1,108 1,100 1,062 1,005 894 -37 206 -24 46 169 Mining, including crude pe­ troleum and natural gas. 2,921 3,022 2,846 2,908 2,895 2,872 2,823 2.896 2.685 -26 187 6 12 161 Trade: Commodity dealers.. 115 178 123 139 136 150 131 132 121 -27 29 14 — 2 2 Other wholesale........ 1,149 1,118 1,066 1,051 1,068 1,055 1,008 982 894 11 161 30 -19 172 Retail......................... 2,136 2,066 2,006 1,979 1,947 1,823 1,763 1,698 1,592 183 231 148 146 414 Transportation....................... 4,287 4,255 4,305 4,161 4,202 4,234 4,285 4,257 4,180 71 54 94 -219 125 Communication..................... 835 814 785 760 738 746 770 755 682 39 64 121 64 103 Other public utilities............. 2,671 2,548 2,409 2,328 2,343 2,234 2,245 2,060 1,975 175 259 287 282 434 Construction.......................... 2,000 2,009 1,896 1,852 1,800 1,709 1,665 1,661 1,558 187 151 8 142 338 Services................................... 4,645 4,568 4,562 4,402 4,417 4,339 4,184 4,120 4,026 223 313 164 143 536 All other domestic loans .... 2,458 2,389 2,201 2,180 2,061 1,871 1,785 1,711 1.597 330 274 43 131 604 Foreign commercial and in­ dustrial loans.................. 2,292 2,497 2,585 2,647 2,410 2,567 2,327 2,355 2,366 18 201 223 105 219 Total loans............................. *39,159*39,091 *38,283*37,577*37,281 *36,390 35,491 34,809 32,964 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 □ SEPTEMBER 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 17.1 85.3 49.0 1.6 9.6 162.5 Sept................................................................................. 17.0 88.0 51.4 1.4 10.0 167.9 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................ 18.3 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 Sept................................................................................. 17.9 91.5 57.5 1.2 9.7 177.9 18.5 98.4 58.6 1.3 10.7 187.5 1972—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 Dec................................................................................. 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar................................................................................. 18.6 102.8 65.1 1.7 11.8 200.0 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—July................................................................................. 14.3 58.5 26.1 1.3 6.0 106.3 Aug................................................................................. 13.6 57.4 26.0 1.3 5.7 104.0 Sept................................................................................. 13.7 59.0 26.2 1.3 6.2 106.4 Oct.................................................................................. 14.1 60.0 26.2 1.3 6.1 107.8 Nov................................................................................. 14.5 60.5 26.7 1.3 6.2 109.2 Dec................................................................................. 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 May................................................................................ 13.8 59.1 26.9 1.9 6.4 108.0 June................................................................................ 14.2 60.8 27.1 1.9 6.3 110.2 July''............................................................................... 14.8 61. 1 27.3 1.9 6.5 111.7 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 i 371 346 313 318 State member.... 95 79 71 72 All nonmember........ 197 177 177 All member............ 482 419 381 385 Insured .................. 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

SEPTEMBER 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 By type of loan By type of loan Total Commercial Commercial and All other and AH other industrial industrial 1973—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 Aug. 1 4,119 2,542 1 ,577 1,694 294 1 ,400 8 4,142 2,506 1 ,636 1,795 380 1 ,415 15 4,526 2,786 1 ,740 1,792 381 1,411 22 4,602 2,708 1 ,894 1 ,738 327 1 ,411 29 4,742 2,895 1 ,847 1,749 323 1.426 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 196 5 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 197 0 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 197 1 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—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 July. 35,463 1,207 7,954 3,307 22,995 7,693 2,254 1,803 452 54 496 4,888 2,222 2,954 2,517 1 As reported by dealers; includes finance company paper as well as Note.—Back data available from Financial Statistics Division, Federal other commercial paper sold in the open market. Reserve Bank of New York. 2 As reported by finance companies that place their paper directly with investors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 INTEREST RATES □ SEPTEMBER 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. 5-51/8-514- 1972—Sept. 4. 5i4-5%- 1973—June 8........... 7%- Mar. 17. 71/2 17. 434-5-514- 5. 5%- 19........... 7%--734 June 9, 8% 24. 45/8-434-5- 11. 5%--55/8 25........... 734- 31. 41^-434.-5 25. 5%-_55/8_ 1970—Mar. 25, 534 July 2........... 734H-8 Sept. 21, 71/2 Feb. 28. 43/8-4%- 3........... 734-8- Nov. 12, 71/4 434- Oct. 2. 5%--534 9........... 8-814- 23, 7 Mar. 13. 4%-434- 4. 5%-53/4- 17............ 81/4--8% Dec. 22, 6% 23. 434- 11. 534- 18........... 8i4-8%- 27. 43/4-^%—5 16. 534--57/8 23........... 8% 1971—Jan. 6, 6% 30........... 8 %-8 34- 15, 614 Apr. 3. 434--5 Nov. 6. 534- 18, 6 5. 5- 20. 534--57/8 Aug. 6............ 83/4-9- Feb. 16. 534 17. 5--514 7............ 9- Mar. 11, 51/4-5% Dec. 26. 534 b-6 13............ 9-914 ■ 19, 5!/4 May 1. 5--51/8-514 27. 534-6- 21............ 9i4«-9%- 30. 5- 22............ 9%- Apr. 23. 5^-5% 1973—Jan. 4. 28............ 9%--934- May 11, 5% June 12. 5--5i/8 29 93/4- July 6. 5 %-6 26. 5-51/4- Feb. 2. 6--614 7. 6 14. 6- Oct. 20. 53/4 July 3. 514--53/8 26. 6--6 V4 10. 514--53/8- 27. 61/4- Nov. 1. 534--55/8 5% 4. 5%--55/8 17. 5i/4--5% Mar. 19, 614--634 8. 51/2" 31. 51/4--53/8- 26, 6%. 22, 53/8-51/2- 5% 29, 5i4-5%- Aug. 11, 514--53/8 Apr. 18 6%-634. 14, 51/4- 19. 634- Dec. 6, 514-53/8- 21, 5i4«-53/8 5%- 25, 514.-53/^ Mav 4, 634--7 2 31 7, 5 51 i4 4 - - 5%- 29 51 5 4 % -53/8- 24 7, 7 7 m- -l 14 5%- 25, 7-714- Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime rate keyed to money market variables. - denotes the predominate prime rate,” this table shows only the “large-business prime rate,” which is the rate quoted by commercial banks to large businesses. 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

SEPTEMBER 1973 □ INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers’ eral 3-month bills5 6-month bills5 9- to 12-month issues Period placed accept­ funds 3- to 5directly, ances, rate3 year 90-119 4- to 6- 3- to 6- 90 days 1 Rate Market Rate Market 1-year issues7 days months months2 on new yield on new yield bill (mar­ Other 6 issue issue ket yield) 5 1966. 5.55 5.42 5.36 5.11 4.881 4.86 5.082 5.06 5.07 5.17 5.16 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.22 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.67 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1972—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 Aug.. 10.26 10.21 8.90 10.18 10.50 8.672 8.67 8.700 8.65 8.32 8.82 7.75 Week ending- 1973—May 5. 7.13 7.13 6.75 7.00 7.43 6.278 6.24 6.575 6.56 6.60 6.74 6.79 12. 7.13 7.13 6.75 7.00 7.60 6.136 6.07 6.431 6.42 6.49 6.68 6.76 19. 7.23 7.28 6.75 7.13 7.81 6.179 6.22 6.456 6.48 6.49 6.72 6.76 26. 7.38 7.38 6.95 7.33 8.06 6.452 6.56 6.748 6.78 6.78 6.98 6.82 June 2. 7.53 7.53 7.13 7.41 7.95 6.694 6.91 6.864 6.99 6.93 7.13 6.79 9. 7.80 7.83 7.25 7.75 8.43 7.133 7.07 7.210 7.09 6.94 7.20 6.72 16. 7.90 7.90 7.50 7.88 8.17 7.129 7.15 7.172 7.16 6.94 7.19 6.70 23. 8.10 8.03 7.50 8.05 8.55 7.263 7.25 7.255 7.27 7.02 7.25 6.74 30., 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 7., 8.75 8.75 7.84 8.94 10.21 7.987 7.94 8.011 7.95 7.71 7.96 7.15 14. 8.98 8.90 8.08 9.00 9.52 7.991 7.78 8.019 7.86 7.65 8.09 7.29 21. 9.28 9.15 8.13 9.05 10.22 7.967 8.03 8.023 8.17 7.97 8.40 7.48 28. 9.70 9.60 8.13 9.50 10.58 8.114 8.17 8.272 8.35 8.34 8.73 7.76 Aug. 4., 9.95 9.88 8.33 9.85 10.57 8.320 8.30 8.476 8.43 8.40 8.94 8.02 11., 10.15 10.05 8.65 10.15 10.39 8.486 8.70 8.650 8.79 8.44 9.13 8.16 18., 10.28 10.25 8.80 10.25 10.39 8.976 8.88 8.943 8.78 8.34 8.91 7.80 25., 10.30 10.25 8.98 10.25 10.52 8.910 8.71 8.856 8.57 8.25 8.61 7.50 Sept. 1. 10.48 10.45 9.00 10.25 10.79 8.668 8.62 8.577 8.58 8.22 8.53 7.35 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 □ SEPTEMBER 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend / Earnings/ rating group price ratio price ratio Period United Total 1 States ( t l e o r n m g ) ­ Total1 Aaa Baa New ce R n e tl ­ y Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1963................... 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964................... 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965................... 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966................... 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967................... 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968................... 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 1969................... 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 1970................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.51 1971................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 1972................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—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. U 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—Jan......... 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 Aug........ 6.81 5.51 5.26 5.80 8.36 8.22 8.04 7.68 8.53 7.91 8.32 8.06 7.43 3.16 Week ending— 1973—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 Aug. 4. . 6.90 5.63 5.40 5.90 8.31 8.28 7.88 7.53 8.33 7.72 8.19 7.89 7.43 3.06 11 . . 6.97 5.63 5.40 5.90 8.52 8.32 7.97 7.61 8.43 7.83 8.28 7.96 7.39 3.11 18.. 6.83 5.64 5.20 5.85 8.30 8.16 8.06 7.71 8.54 7.94 8.34 8.06 7.35 3.19 25.. 6.74 5.42 5.20 5.75 8.29 8.21 8.12 7.77 8.61 7.99 8.36 8.14 7.48 3.27 Sept. 1.. 6.62 5.35 5.10 5.60 8.24 8.12 7.73 8.67 7.97 8.40 8.17 7.50 3.17 Number of issues2............ 12 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ only, based on Thurs. figures; from Moody’s Investor Service. (3) Cor­ arately. Because of a limited number of suitable issues, the number porate: Rates for “New issue” and “Recently offered” Aaa utility bonds of corporate bonds in some groups has varied somewhat. As of Dec. are weekly averages compiled by the Board of Governors of the Federal 23, 1967, there is no longer an Aaa-rated railroad bond series. Reserve System. Rates for seasoned issues are averages of daily figures 2 Number of issues varies over time; figures shown reflect most recent from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; eamings/price ratios are as of end of period. Note.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on eight median yields for a sample of non- Bonds: Monthly and weekly yields are computed as follows: (1) U.S. callable issues—12 industrial and 2 public utility; common stock ratios Govt.: Averages of daily figures for bonds maturing or callable in 10 years on the 500 stocks in the price index. Quarterly earnings are seasonally or more; from Treasury Dept. (2) State and local govt.: General obligations adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share 1 Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are 2 Series revised beginning Jan. 1973; hence data are not strictly com­ computed as follows: U.S. Govt, bonds, derived from average market parable with earlier figures. yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived from average yields as Note.—Compiled by Federal Home Loan Bank Board in cooperation computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- with Federal Deposit Insurance Corporation. Data are weighted averages year bond; Wed. closing prices. Common stocks, derived from com­ based on probability sample survey of characteristics of mortgages ponent common stock prices. Average daily volume of trading, normally originated by major institutional lender groups (including mortgage conducted 5 days per week for 5 Vi hours per day, or 21 Vi hours per week. companies) for purchase of single-family homes. Data exclude loans for In recent years shorter days and/or weeks have cut total weekly trading refinancing, reconditioning, or modernization; construction loans to to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- homebuilders; and permanent loans that are coupled with construction Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- loans to owner-builders. Series beginning 1965, not strictly comparable 22i/2; 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

SEPTEMBER 1973 □ SECURITY MARKETS A 35 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer­ (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941_43=10) (Dec. 31, 1965 = 50) Stock Ex­ change ( G t l U e o o r . n m v S g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l 1 NYSE AMEX 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 197 1 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4,234 197 2 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 27.00 16,487 4,447 1972—Aug.... 69.55 84.2 65.8 111.01 124.35 43.28 54.66 61.07 67.25 48.97 36.87 78.27 26.85 15,522 3,807 Sept.... 68.06 83.4 65.6 109.39 122.33 42.37 55.36 60.05 65.72 46.49 37.82 78.41 25.23 12,314 2,774 Oct....... 68.09 85.3 65.5 109.56 122.39 41.20 56.66 59.99 65.35 44.95 38.93 79.64 25.87 14,427 3,014 Nov---- 69.87 87.1 65.9 115.05 128.29 42.41 61.16 62.99 68.29 47.50 41.81 84.57 26.18 20,282 4,286 Dec.... 68.68 87.1 66.0 117.50 131.08 45.23 61.73 64.26 69.96 48.44 42.28 83.45 26.50 18,146 4,775 1973—Ja n 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 25.35 18,752 4,046 Feb___ 64.09 86.1 65.5 114.16 128.50 40.80 57.52 61.52 67.67 42.34 39.95 74.47 25.34 16,753 3,690 Mar---- 63.59 84.1 65.2 112.42 126.05 39.29 55.94 60.15 66.20 40.92 39.13 72.32 24.59 15,564 2,966 Apr.. .. 64.39 85.7 64.9 110.27 123.56 35.88 55.34 58.67 64.41 40.57 38.97 69.42 24.02 13,900 2,981 May. .. 63.43 86.1 64.7 107.22 119.95 36.14 55.43 56.74 62.22 36.66 39.01 65.33 23.12 15,329 3,043 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 Aug.. . . 58.71 82.2 61.0 103.80 116.75 33.76 50.14 55.33 61.09 33.48 35.40 68.26 23.03 14.761 1 ,796 Week ending— 1973—Aug. 4 58.01 81.4 61.7 107.49 120.89 35. 12 51.93 57.27 63.20 35.03 36.75 70.65 23.40 12,053 2,272 11 57.51 81.5 60.6 105.84 119.10 34.48 50.77 56.44 62.42 34.27 35.78 69.44 23.28 12,406 1.957 18 58.60 81.9 60.8 102.81 115.64 33.60 49.73 54.80 60.55 33.11 35.02 67.24 22.98 11,842 1,687 25 59.22 82.6 60.9 101.31 113.88 32.85 49.42 53.99 59.53 32.44 34.94 66.60 22.81 10,763 1 .533 Sept. 1 60.17 83.7 61.1 103.52 116.44 33.44 50.03 55.17 60.90 33.35 35.22 68.61 22.89 11.978 1 ,650 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c n t o r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & i s M (y a e t a u r r s i ) ty L c p r ( a o e p r t n i a e i c t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o a s a u . r n n s o ) t f 1965....................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966....................... 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967....................... 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968....................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970....................... 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971....................... 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1972....................... 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1972—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 June............ 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 75.5 33.4 24.7 24'2 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT □ SEPTEMBER 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—July.. 8,924 7,945 979 7,660 910 248 53 1,772 1,285 403 1,842 Aug.. 9,092 8,060 1,032 7,780 961 246 54 1,800 1,298 384 1,733 Sept.. 9,091 8,083 1,008 7.800 937 248 54 1.871 1,255 380 1,677 Oct... 9,024 8,081 943 7.800 872 250 53 1,875 1,351 389 1,708 Nov.. 9,068 8,166 902 7,890 831 249 52 1.871 1,396 390 1,828 Dec.. 9,045 8,180 865 7,900 798 254 50 1,896 1,528 414 1,957 1973—Jan... 8,840 7,975 865 7,700 796 249 48 1,940 1,484 413 1,883 Feb... 8,620 7,753 867 7,480 800 248 50 1,954 1,508 431 1,770 Mar.. 8,344 7,465 879 7,197 813 244 48 1,917 1,566 442 1,719 Apr.. 8,165 7,293 872 7,040 804 232 49 1,969 1,482 389 1,536 May. 7,650 6,784 866 6,540 802 224 47 2,010 1,502 413 1,564 June., 7,287 6,416 871 6,180 800 215 53 1,964 396 1,472 July.. 6,243 6,010 216 379 1,542 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 i f 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 o l l a l l n i l o a c r n e s s lars) i 34.4 55.2 11.4 5,930 1972—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 July...................... 35.9 46.7 17.4 5,740 July.. 6,080 5.8 8.8 17.7 22.7 25.3 19.7 Note.—Special miscellaneous accounts contain credit balances that 1 See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d e po­ Cash O as t s h e e ts r g li T e a a t n o b i n e e t i d s a l r i a l ­ l D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 reserve accts. 3 or 3-6 6-9 Over Total less 9 1965 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967............... 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968............... 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969............... 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970................ 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 1971............... 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19724............. 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1972—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 June... 70,586 3,943 3,290 1,123 22,588 1,799 2,252 105,582 95,614 2,653 7,314 1,711 1,020 573 1,378 4,683 July... 71,168 3,798 3,138 1,091 22,683 1,576 2,212 105,666 95,264 3,047 7,355 1,626 906 636 1,367 4,535 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross-oforganizations and nonguaranteed issues of U.S. Govt, agencies. valuation-reserves basis. The data differ somewhat from balance sheet 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits data previously reported by National Assn. of Mutual Savings Banks accumulated for payment of personal loans” were excluded from “Time which were net of valuation reserves. For most items, however, the dif­ deposits” and deducted from “Loans” at all commercial banks. These ferences are relatively small. changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30. Note.—NAMSB data; figures are estimates for all savings banks in 3 Commitments outstanding of banks in New York State as reported to the United States and differ somewhat from those shown elsewhere in the Savings Banks Assn. of the State of New York. Data include building the Bulletin; the latter are for call dates and are based on reports filed loans beginning with Aug. 1967. with U.S. Govt, and State bank supervisory agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other End of period assets Total United State and Foreign 1 Total Bonds Stocks gages estate loans assets States local 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,*24 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 1972p 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--May r........................... 229,213 11,198 4,597 3,356 3,245 106,491 82,911 23,580 75,363 7,089 17,434 11,638 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 Oct............................... 235,972 11,132 4,396 3,347 3,389 111,616 86,874 24,742 75,952 7,229 17,854 12,189 Nov.............................. 237,971 11,193 4,459 3,356 3,378 113,066 87,425 25,641 76,207 7,272 17,922 12,311 Dec.............................. 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 12,720 1973--Jan............................... 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 May............................. 243,589 11,434 4,538 3,384 3,512 115,897 90,314 25,583 77,400 7,545 18,533 12,780 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 □ SEPTEMBER 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r 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 ro B o w n o e e r­ d y4 p L ro o i c a n e n s s s Other ou a p t t s e e t r a n i n o d d d o i s n f g 1967.................................. 121,805 9.180 3,442 7,788 143,534 124,493 9,916 4,775 2.257 2,093 3,042 1968.................................. 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2; 449 2,427 3,631 1969.................................. 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 1970.................................. 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 1971.................................. 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 1972—July....................... 191,642 24,497 11,942 228,081 194,770 14,900 7,216 5,997 5,198 12,147 Aug....................... 194,955 24,321 12,125 231,401 196,571 15,432 7,512 6,100 5,786 12,143 Sept....................... 197,881 24,102 12,277 234,260 199,966 14,991 8,080 6,119 5,104 12,175 Oct........................ 200,554 24,648 12,457 237,659 202,012 15,485 8,327 6,086 5,749 12,226 Nov....................... 203,266 24,750 12,689 240,705 203,889 15,992 8,503 6,067 6,254 12,274 Dec........................ 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 11,578 1973—Jan........................ «208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 12,469 Feb........................ 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 6,766 13,538 Mar....................... 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 14,508 Apr........................ 216,250 23,943 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...................... 222,801 23,362 18,038 264,201 222,183 16,315 12,766 6,770 6,167 14,776 July*..................... 225,507 22,749 18.433 266,689 221,961 16,669 14.288 6,710 7,061 13,750 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 Ad­ Cash Mem­ Deben­ Loans Loans v m a t n e o c m e ­ s I m nv e e n s ts t­ p a o d n s e i d ­ ts B n a o o n n te d d s s po b d s e e i r ­ ts C s a to p c it k al M l g o a a o g n r e s t­ n t a u o n r t e e d s s c a o t o i t v o p e e s r­ D t e u b re e s n­ co a d u n is n d ­ ts D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 1967. 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968, 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972-—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 July. . 12,365 2,126 103 11,213 1,183 2,035 21,772 20,843 2,811 2,365 6,981 6,745 10,256 9,377 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

SEPTEMBER 1973 □ FEDERALLY SPONSORED CREDIT A A G ISSUES OF FEDERALLY SPONSORED AGENCIES, JULY 31, Amount Cou­ Amount moui (millions Agency, and date of issue pon (millions Agency, and date of issue tillioi of dollars) and maturity rate of dollars) and maturity lolla Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 450 Debentures: 2/1/73 - 8/1/73............... 578 600 3/10/70 -9/10/73.......... 8. 10 300 10/1/70 - 10/1/73.......... 100 300 6/10/71 -9/10/73.......... 6.13 350 4/2/73 - 10/1/73............. 560 250 12/10/70 - 12/10/73. . . 5.75 500 5/1/73 - 11/1/73............. 259 300 8/10/71 - 12/10/73........ 7.15 500 6/4/73 - 12/3/73.............. 410 300 12/11/72 - 12/10/73 ... 6.00 200 7/2/73 - 1/2/74............... 458 700 12/1/71 - 3/11/74........ 5.45 400 178 4/10/70 - 3/11/74........ 7.75 350 400 8/5/70 - 6/10/74......... 7.90 400 Federal intermediate 221 11/10/71 - 6/10/74........ 5.70 350 credit banks 1.000 9/10/69 - 9/10/74........ 7.85 250 Debentures: 250 2/10/71 - 9/10/74.......... 5.65 300 11/1/72 - 8/1/73.............. 545 400 5/10/71 - 12/10/74........ 6.10 250 12/4/72-9/4/73.............. 551 265 9/10/71 - 12/10/74........ 6.45 450 1/2/73 - 10/1/73.............. 631 300 11/10/70 - 3/10/75___ 7.55 300 2/1/73 - 11/1/73.............. 559 700 10/12/71 - 3/10/75. ... 6.35 600 3/1/73 - 12/3/73.............. 544 500 4/12/71 -6/10/75.......... 5.25 500 4/2/73 - 1/2/74................ 660 350 10/13/70 - 9/10/75___ 7.50 350 7/1/71 - 1/2/74................ 212 600 3/12/73 -9/10/75.......... 6.80 650 5/1/73 -2/4/74............... 695 300 3/10/72 - 12/10/75___ 5.70 500 6/4/73 - 3/4/74............... 664 500 3/11/71 - 3/10/76.......... 5.65 500 7/2/73 -4/1/74............... 421 200 6/12/73 - 3/10/76.......... 7.13 400 1/4/71 - 7/1/74.............. 224 600 6/10/71 -6/10/76.......... 6.70 250 5/1/72 - 1/2/75................ 240 300 2/10/72 - 6/10/76.......... 5.85 450 1/3/72-7/1/75................ 302 300 11/10/71 - 9/10/76........ 6.13 300 3/1/73 - 1/5/76............... 261 350 6/12/72-9/10/76.......... 5.85 500 7/2/73 - 1/3/77............... 236 200 7/12/71 - 12/10/76........ 7.45 300 200 12/11/72- 12/10/76___ 6.25 500 Federal land banks 200 2/13/62 - 2/10/77........ 41/z 198 Bonds: 9/11/72- 3/10/77.......... 6.30 500 2/20/63 - 2/20/73-78... 148 12/10/70 - 6/10/77___ 6.38 250 4/20/70 - 10/22/73........ 300 5/10/71 -6/10/77.......... 6.50 150 10/23/72 - 10/23/73....... 462 9/10/71 -9/12/77.......... 6.88 300 7/20/72 - 1/21/74.......... 450 150 7/10/73 - 12/12/77........ 7.25 500 2/20/72 - 2/20/74.......... 155 200 6/12/73 - 6/12/78.......... 7.15 600 10/20/70 - 4/22/74........ 354 350 10/12/71 - 12/11/78. . . 6.75 300 9/15/72 -4/22/74............ 350 140 6/12/72-9/10/79.......... 6.40 300 10/21/71 - 7/27/74........ 326 150 12/10/71 - 12/10/79. . . 6.55 350 4/20/71 - 10/21/74.......... 300 150 2/10/72 - 3/10/80.......... 6.88 250 2/20/70 - 1/20/75.......... 220 2/16/73 - 7/31/80.......... 5.19 1 4/23/73 - 1/20/75............ 300 2/16/73 - 7/31/80.......... 3.18 9 4/20/65 - 4/21/75.......... 200 1/16/73 - 10/30/80........ 5.47 5 7/20/73 -4/21/75............ 289 12/11/72 - 12/10/80.... 6.60 300 2/15/72 -7/21/75............ 425 6/29/72- 1/29/81.......... 6.15 156 7/20/71 - 10/20/75.......... 300 3/12/73 - 3/10/81.......... 7.05 350 4/20/72 - 1/20/76............ 300 4/18/73 -4/10/81.......... 6.59 26 2/21/66 - 2/24/76.......... 123 1,294 3/21/73 - 5/1/81............ 4.50 18 1/22/73 - 4/20/76............ 373 3/12/73 - 5/1/81............ 5.77 2 7/20/66 - 7/20/76.......... 150 250 1/21/71 - 6/10/81........ 7.25 250 4/23/73 - 10/20/76.......... 450 200 9/10/71 -9/10/81.......... 7.25 250 7/20/73 - 7/20/77........... 550 248 6/28/72 - 5/1/82............ 5.84 58 10/27/71 - 10/20/77.... 300 250 2/10/71 - 6/10/82.......... 6.65 250 5/2/66 - 4/20/78............ 150 9/11/72 - 9/10/82.......... 6.80 200 7/20/72 - 7/20/78.......... 269 3/11/71 - 6/10/83.......... 6.75 200 2/20/67- 1/22/79............ 285 250 6/12/73 - 6/10/83.......... 7.30 300 9/15/72-4/23/79............ 235 53 11/10/71 -9/12/83........ 6.75 250 10/23/72 - 10/23/79........ 400 6 4/12/71 - 6/11/84.......... 6.25 200 1/22/73 - 1/21/80............ 300 72 12/10/71 - 12/10/84. . . 6.90 250 7/20/73 - 7/21/80............ 250 35 3/10/72 - 3/10/92........ 7.00 200 2/23/71 -4/20/81............ 224 81 6/12/72-6/10/92.......... 7.05 200 4/20/72-4/20/82............ 200 200 4/23/73 -4/20/82............ 239 by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERAL FINANCE □ SEPTEMBER 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public ; Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays i deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes3 ing ing S is p s e u c e ia s l Other balance 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 -2,122 1972—Jan.-June... 115,549 120,319 -4,850 3,130 -150 4,010 1,089 -2,114 389 1,028 8,377 July-Dee---- 106,061 118,586 -12,525 22,037 876 *-6,239 -861 17,386 r956 *-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—July.............. *-15,210 *18,501 r3,291 5,123 9 1 ,409 -6 3,730 -1,129 -1,732 -3,300 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 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 July.............. 18,121 22,627 -4,486 862 9 1 ,258 325 -713 -5,398 -544 -743 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S i p s G I s e n u c o v e i v a s 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 e c s i s a : 3 l E p T h u q b o e b u y l t l d a a i l l c s: s c p p o G r o N r i n o p v o s v s a w o t . t . — r e - e 6 d 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—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 51,325 July............. 2,867 4,203 108 7,178 459,003 11,118 102,996 23,968 825 342,332 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

SEPTEMBER 1973 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Total Em tax p e lo s y a m n e d n t Excise Cus­ E a s n ta d te M r i e s ­ c. W he i l t d h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s co P n ay tr ­ ibut S io el n f- s1 e in U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 2 t N ot e a t l taxes toms gift ceipts3 roll empl. taxes Fiscal year: 1970.................................... 193,74377,41626,23613,24090,41235,037 2,20837,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 1971.................................... 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 1972.................................... 208,64983,20025,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,91415,477 3,287 5,436 3,633 1973*.................................. 232,19298,09727,03121,867 103,26138,989 2,893 52,499 2,371 6,064 3,61264,546 16,272 3,175 4,898 3,944 Half vear: 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................ 115,46944,75120,090 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*7.............. 126,131 52,03821,24721,179 52,10623,674 1,43430,006 2,206 3,627 1,83937,679 8,028 1,625 2,566 1,888 Month: 1972—July......................... '15,210 '7,055 548 245 '7,358 1,258 187 3,727 260 289 '4,278 1,442 237 334 '491 Aug.......................... 18,213 8,175 362 157 8,380 855 190 5,367 1,175 307 6,849 1,351 278 423 266 Sept......................... 22,183 7,305 3,794 9511,005 5,289 324 3,529 145 63 302 4,038 1,327 237 316 295 Oct........................... 14,738 7,187 469 61 7,595 1,287 323 3,225 15 210 311 3,759 1,387 281 409 343 Nov......................... 16,748 8,425 257 69 8,613 853 294 4,044 637 287 4,969 1,452 284 487 383 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 JuneP....................... 28,504 9,171 3,747 59712,321 8,927 188 4,542 145 106 291 5,085 1,397 261 317 384 July.......................... 18,121 8,487 681 354 8,814 1,552 202 4,608 382 346 5,336 1,538 276 398 409 Budget outlays Com. Gen­ Na­ Nat­ Com­ mun. Educa­ eral Intra- Period tional Intl. Space Agri­ ural merce deve­ tion Health Vet­ Inter­ Gen­ reve­ govt. Total de­ affairs re­ cul­ and lop. and and erans est eral nue trans­ fense search ture transp. and man­ wel­ govt. shar­ ac­ hous­ power fare ing tions 4 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 r3,786 3,422 '7,061 r3,759 11,197 r4,216 10,198 '81,536 '10,747 '20,584 r4,i -7,858 197 3 246,603 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 19745................... 268,665 81,074 3,811 3,135 5,572 3,663 11,580 4,931 10,110103,709 11,732 24,672 6,025 6,035 -9,131 Half year: 1971—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 r2,034 1,645 1,062 1,807 r5,167 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 62,617 -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—Jul y 18,502 r5,049 313 289 2,397 -821 827 529 764 '6,165 884 '1,696 '613 ' — 251 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 62,617 -2,474 1973—Ja...............n 23,630 6,633 82 271 994 -1,053 1,546 483 808 8,130 1,157 1,777 586 2,514 -297 Feb............ 20,227 6,265 280 241 431 230 567 368 904 7,907 1,046 2,002 374 9 -397 Mar........... 20,806 6,963 323 301 -77 310 1,072 270 786 7,565 1,064 2,097 462 -329 Apr........... 22,306 6,417 237 265 368 324 793 243 788 8,058 1,114 2,120 409 i j 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 July........... 22,607 4,878 308 278 2,011 942 2,104 911 777 7,792 1,099 2,184 563 1,495 -850 1 Old-age, disability, and hospital insurance (including premiums for 5 Estimates presented in the Jan. 1974 Budget Document. Breakdowns do uninsured effective July 1, 1973, as provided for in Public Law 92-603), not add to totals because special allowances for contingencies, and Federal and Railroad Retirement accounts. pay increase (excluding Department of Defense), totaling $1,750 million 2 Supplementary medical insurance premiums (including premiums for fiscal 1974, are not included. for disabled effective July 1, 1973, as provided for in Public Law 92-603), 6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments and Federal employee retirement contributions. of $2,600 million for fiscal 1972. 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ ous receipts. Note.—Half years may not add to fiscal year totals due to revisions in 4 Consists of Government contributions for employee retirement and series that are not yet available on a monthly basis. 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 □ SEPTEMBER 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p d g u e r b b o l t s i s c 1 Total Total Bills Ma C r c e k a r e t t e i t f a s i b ­ le Notes Bonds 2 b C v i o b e o n r l n e d t­ ­ s Total N 3 on F m is o s a r u r e e k i s g e t n 4 a ble b S o in a n g v d s ­ s i S ss p u e e c s ia 5 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 2.4 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 1.5 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—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 Aug. 461.8 353.8 262.4 101.8 118.7 42.0 2.3 89.1 27.9 60.3 106.1 1 Includes non-interest-bearing debt (of which $619 million on August 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 31, 1973, was not subject to statutory debt limitation). Treasury foreign series and foreign currency series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign-currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t i s h s e c e s 2 . ­ r funds bonds securities 1939—Dec................ 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1965—Dec................ 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec................ 329.3 65.9 44.3 219.2' 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec................ 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 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 25. O' 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—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 51.1* 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 54.2r 16.5' 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 18.6r 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 July............... 459.0 125.0 77.1 256.9 55.5 2.2 5.3 13.0 27.9 59.7 16.5 59.7 17.1 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r 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—June 30........................................................ 262,971 122,803 100,061 22,742 88,223 31,111 14,477 6,357 July 31........................................................ 262,708 122,602 99,860 22,742 88,223 31,108 14,456 6,318 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—June 30................................................ 20,081 1,656 386 1,270 7,129 5,369 4,319 1,609 July 31................................................ 20,422 1,703 415 1,288 7,278 5,468 4,343 1,630 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—June 30................................................ 75,022 37,106 34,246 2,860 26,956 9,358 1,417 184 July 31................................................ 77,098 38,501 35,483 3,018 27,595 9,374 1 ,419 208 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—June 30................................................ 167,868 84,041 65,429 18,612 54,138 16,384 8,741 4,564 July 31................................................ 165,188 82,398 63,962 18,436 53,350 16,266 8,694 4,480 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—June 30........................................ 45,139 14,561 6,812 7,749 24,884 4,728 792 175 July 31........................................ 43,101 12,470 4,953 7,517 24,840 4,716 817 259 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—June 30........................................ 2,351 490 229 261 1,063 373 276 149 July 31........................................ 2,236 418 174 244 1,028 371 270 150 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—June 30........................................ 4,932 731 212 519 1,030 1,271 1,319 581 July 31........................................ 5,034 836 324 512 1,030 1,267 1,326 575 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—June 30........................................ 4,599 3,287 1,426 1,861 1,170 91 39 12 July 31........................................ 5,212 3,536 1,388 2,148 1,509 103 52 13 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—June 30........................................ 2,674 712 310 402 1,135 534 214 80 July 31........................................ 2,567 608 223 385 1,138 529 214 78 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—June 30........................................ 10,406 5,904 4,996 908 1,949 1,016 1,095 441 July 31........................................ 10,114 5,748 4,601 1,147 2,003 922 1 ,065 376 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—June 30........................................ 97,767 58,356 51,444 6,912 22,907 8,371 5,006 3,126 July 31......................................... 96,924 58,782 52,299 6,483 21,802 8,358 4,950 3,029 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,609 commercial banks, 479 mutual savings Ownership. banks, and 739 insurance companies combined; (2) about 50 per cent by Data complete for U.S. Govt, agencies and trust funds and F.R. Banks the 463 nonfinancial corporations and 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 504 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 □ SEPTEMBER 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—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 All 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 July.............................. 2,993 2,330 367 226 72 581 632 982 798 700 Week ending— 1973—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 Aug. 1....................... 3,388 2,318 661 277 132 587 768 1,085 948 570 8....................... 3,073 1,978 729 208 158 521 826 950 111 476 15....................... 3,671 2,829 634 148 61 695 760 1,128 1,088 951 22....................... 3,298 2,453 601 178 67 452 964 925 957 862 29....................... 3,566 2,558 811 148 50 588 1,032 1,150 796 610 1 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 e - a 5 rs y 5 e — ar 1 s 0 y O e 1 v a 0 e rs r a s G e g t c e o ie u n v s c r 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 ns o r 1 a­ o A th l e l r 1972—July................ 3,253 3,626 -146 -216 -11 356 1972—July............ 3,055 753 496 820 986 Aug................ 3,905 3,370 41 130 363 404 4,021 1,356 580 927 1,158 Sept................ 4,386 4,374 -83 -58 153 408 4,379 1,633 599 705 1,442 Oct................. 3,333 3,452 -29 -132 41 543 3,055 1,227 406 490 932 Nov................ 4,522 4,113 335 8 66 834 Nov............ 4,198 1,538 617 709 1,334 Dec................ 4,973 4,903 73 -41 37 556 4,848 1,695 808 944 1,399 1973—Jan................. 4,744 4,959 -53 -259 97 281 1973—Jan............. 4,520 1,346 794 932 1,449 Feb................. 3,394 3,365 -9 -1 39 202 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 July............... 1,901 2,062 -250 -43 131 511 July........... 2,826 725 544 510 1 .047 Week ending— Week ending— 1973—June 6........ 3,369 3,315 -299 76 276 745 1973—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 21... 3,180 986 689 462 1,042 July 4 , , , 2,595 2,636 -234 23 171 620 July 4... 3.423 875 743 481 1.324 11 2,034 2,120 -244 28 131 686 11 . .. 3.177 803 705 545 1.124 18 2,017 2,129 -215 -56 158 676 18. .. 2.937 749 722 556 910 25........ 1,772 1,937 -237 -87 158 364 25. .. 2.547 704 428 509 906 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 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. Sept. 6, 1973. 4.301 Jan. 31,1974.... 1,701 Dec. 31, 1974.. ...5% 2,102 Nov. 15, 1973 •41/8 4,336 Sept. 13, 1973. 4,303 Feb. 7, 1974___ 1,802 Feb. 15, 1975.....sy4 4,015 Feb. 15, 1974 .41/8 2,466 Sept. 19, 197 3 f 2,017 Feb. 12, 1974.... 1,801 Feb. 15, 1975.....57/8 1,222 May 15, 1974 .4% 2,849 Sept. 20, 1973. 4.302 Feb. 14, 1974. .. . 1,807 Apr. 1, 1975.....1% 8 Nov. 15, 1974, •37/s 1,214 Sept. 25, 1973. 1,801 Feb. 21, 1974.... 1,801 May 15, 1975 ...57/8 1,776 May 15, 1975-85.AVa 1,203 Sept. 27, 1973. 4,310 Feb. 28, 1974. .. . 1,800 May 15, 1975., , 6 6,760 June 15, 1978--83.• 3V4 1,488 Oct. 4, 1973. 4.301 Mar. 12, 1974___ 1,790 Aug. 15, 1975..,...57/s 7,679 Feb. 15, 1980, .4 2,577 Oct. 11, 1973. 4.301 Apr. 9, 1974.... 1.802 Oct. 1, 1975..,...1% 30 Nov. 15, 1980, .31/2 1,897 Oct. 18, 1973. 4.301 May 7, 1974.... 1 ,800 Nov. 15, 1975..,, . .7 3,115 Aug. 15, 1981 .7 807 Oct. 23, 1973. 1,802 June 4,1974___ 1,801 Feb. 15, 1976..,...6% 3,739 Feb. 15, 1982, • 6Ys 2,702 Oct. 25, 1973. 4.301 July 2,1974___ 1,802 Feb. 15, 1976.....57/8 4,945 Aug. 15, 1984, •63/8 2,353 Nov. 1, 1973. 4.301 Aug. 27, 1974. .. . 1 ,805 Apr. 1, 1976,., ••I Vi 27 May 15, 1985, .314 968 Nov. 8, 1973. 4.303 May 15, 1976..,...5% 2,802 Nov. 15, 1986, .61/8 1,216 Nov. 15, 1973. 4,193 May 15, 1976..,...61/2 2,697 Aug. 15, 1987--92..414 3,716 Nov. 20, 1973. 1,802 Aug. 15, 1976..,...7% 4,194 Feb. 15, 1988--93..4 235 Nov. 23, 1973. 4,202 Aug. 15, 1976 ,...61/2 3,883 May 15, 1989--94.• 41/s 1 ,487 Nov. 29, 1973. 4,204 Oct. 1, 1976,, ...n/z 11 Feb. 15, 1990, •3 Vi 4,101 Dec. 6, 1973. 1,707 Nov. 15, 1976..,...614 4,325 Feb. 15, 1993 •6% 627 Dec. 13, 1973. 1.701 Feb. 15, 1977.., , ,8 5,163 Aug. 15, 1993 .71/2 926 Dec. 18, 1973. 1,800 Treasury notes Apr. 1,1977, , ,• • 1 Vi 5 Feb. 15, 1995, .3 895 Dec. 20, 1973. 1.701 Oct. 1, 1973..........IVi 30 Aug. 15, 1977...■ ..7% 4,919 May 15, 1993--98..7 692 Dec. 27, 1973. 1.701 Feb. 15, 1974........7% 2,960 Oct. 1, 1977. .. • •IVi 17 Nov. 15, 1998, .31/2 3,215 Jan. 3,1974.. 1.701 Apr. 1, 1974..........UA 34 Feb. 15, 1978 , ,,...6% 8,389 Jan. 10,1974.. 1.702 May 15, 1974........iy4 4,334 Apr. 1, 1978 • • 1 Vi 15 Jan. 15, 1974. 1,804 Aug. 15, 1974........55/s 10,284 Nov. 15, 1978.... .6 8,207 Convertiblebonds Jan. 17,1974.. 1.701 Sept. 30, 1974........6 2,060 Aug. 15, 1979, ....614 4,559 Investment Series B Jan. 24,1974.. 1.702 Oct. 1, 1974..........1% 42 Nov. 15, 1979.....65/8 1,604 Apr. 1, 1975-80..234 2,275 Nov. 15, 1974........5V4 5,442 May 15, 1980.....67/8 7,265 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a . v S 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 on ­ b R r a i o d n a g d d e s s i U tie ti s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1964. 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966. 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967., 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968., 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969. 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 1970. 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971. 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972—June.. 2,270 989 1,064 209 8 246 1,226 799 2,000 347 150 533 393 576 July. . 1,805 1,322 481 2 647 467 690 1,796 327 121 223 154 971 Aug.. 1,966 820 1,138 8 468 897 600 1,931 444 111 429 162 784 Sept.. 1,726 663 803 257 4 298 1,016 414 1,609 238 107 590 270 404 Oct.. . 2,200 1,662 533 5 487 689 1,025 2,147 444 162 409 52 1,082 Nov.. 1,862 1,147 711 5 425 572 866 1,762 312 215 365 56 814 Dec... 1,797 872 653 268 4 147 754 895 1,507 351 21 204 332 599 1973—Jan... 1,974 1,149 822 3 602 454 919 1,845 369 215 418 117 727 Feb.r. 1,499 768 731 1 47 561 891 1,398 365 63 406 10 553 Mar.r 2,451 1,227 916 303 6 613 914 924 2,194 373 153 497 347 823 Apr. r 1,818 866 944 9 159 732 925 1,752 305 12 448 88 900 May r 1,921 820 1,093 8 291 926 703 1,906 299 232 428 222 723 June r 2,072 984 823 261 4 189 1,054 828 2,064 533 101 603 334 494 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 □ SEPTEMBER 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, allissues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 al Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1964.................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965.................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966.................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967.................... 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968.................... 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969.................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1970..................... 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 1971..................... 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972—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....... 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 558 May r....... 11,219 3,353 3,442 1,870 17 2,537 1,722 1,049 673 187 627 June......... 7,821 559 1,760 2,046 53 3,456 2,646 1 ,307 1 ,338 216 595 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r la c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 196 4 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 196 5 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 196 6 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 196 7 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 196 8 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 196 9 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 197 0 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 197 1 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1972—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. 772 22 237 139 91 1 150 369 258 743 228 May 260 12 30 143 237 361 404 355 19 351 230 June 387 25 107 90 183 1,047 486 303 29 310 181 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ­ 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 * & 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—July. . 398 424 -26 56,932 3,219 53,713 Aug... 391 582 -191 58,186 3,375 54,811 1961............... 2,951 1,160 1,791 22,789 980 21,809 Sept... 310 442 -132 57,193 3,395 53,798 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 Oct.. . 384 411 -27 57,525 3,719 53,806 1963............... 2,460 1,504 952 25,214 1,341 23,873 Nov... 387 645 -258 59,854 3,549 56,305 Dec.. . 449 619 -170 59,831 3,035 56,796 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Feb... 327 530 -203 54,083 3,375 50,708 Mar... 519 531 -12 53,377 3,774 49,603 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Apr... 300 452 -120 50,837 3,837 46,464 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 May.. 285 446 -161 48,588 4,154 44,434 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 June.. 303 349 -46 48,127 4,164 43,963 July. . 364 357 -7 50,933 4,594 46,339 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 □ SEPTEMBER 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 fi t i t e s s d ­ co c a n a t l s p i l o o u i n t w m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r n b 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 ­ ances 1 ances 1 1966............... 84.2 34.3 49.9 20.8 29.1 39.5 1971—II 85.5 38.4 47.1 25.1 22 0 59 8 1967............... 79.8 33.2 46.6 21.4 25.3 43.0 III.... 87.0 38.0 49.0 25.2 23.7 61.‘ 0 IV. ... 86.9 36.4 50.6 24.9 25.7 62.1 1968............... 87.6 39.9 47.8 23.6 24.2 46.8 1969................ 84.9 40.1 44.8 24.3 20.5 51.9 1972—1 92.8 40.6 52.2 25.7 26. 5 63.4 1970................ 74.0 34.8 39.3 24.7 14.6 56.0 II 94.8 41.4 53.4 25 9 27. 5 66^2 1971................ 85.1 37.4 47.6 25.1 22.5 60.4 III.... 98.4 42.9 55.6 26.2 29.4 66! 0 1972................ 98.0 42.7 55.4 26.0 29.3 65.9 IV. ... 106.1 45.9 60.3 26.4 33.9 68.0 1973—1......... 119.6 52.7 66.9 26.9 40.0 69.3 IIP.... 130.1 57.5 72.6 27.3 45.2 70.8 i Includes depreciation, capital outlays charged to current accounts, and Note,—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF 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 1968................................ 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 1969................................ 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—11......................... 185.6 481.8 45.6 8.7 4.4 197.9 191.8 33.4 296.2 7.0 196.0 10.8 82.4 Ill....................... 185.3 484.6 46.5 7.1 4.2 201.0 193.5 32.3 299.3 6.8 196.7 11.5 84.3 IV....................... 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971—1........................... 192.0 494.1 48.5 7.8 4.2 201.3 198.5 33.8 302.1 6.1 195.7 13.7 86.6 II......................... 196.5 498.2 51.1 7.7 3.9 203.3 199.2 33.1 301.7 5.3 195.8 12.4 88.3 Ill....................... 200.9 507.2 52.4 7.8 3.9 206.5 201.6 34.9 306.3 5.0 197.4 13.8 90.1 IV....................... 204.9 516.7 55.3 10.4 3.5 207.5 203.1 36.8 311.8 4.9 202.8 14.5 89.7 1972—1........................... 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 202.5 15.7 93.3 II......................... 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 204.0 13.4 96.8 Ill....................... 219.3 545.5 57.3 7.6 2.9 222.5 215.2 39.8 326.2 4.7 207.6 15.0 98.9 IV....................... 224.3 561.1 60.3 9.7 3.4 228.9 218.2 40.7 336.8 4.0 216.9 16.7 99.2 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 Commu­ Total Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er nications Other1 A (S . . R A . . ) 1969......................... 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970......................... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971 ............... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972 ....................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 I9732 ................... 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

SEPTEMBER 1973 □ REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm h O ol t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c i i f a a l m p il r y o p a e n r d t ies5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ t F u i t i n c n i 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 i t n 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 in t in i s o a t n i n ­ s . 1 O h e o t r h l s d er ­ Total t F u i t n in i s o a t n i n ­ s . 1 O h e t o r h l s d er ­ w u F V n r H i d A t A e te - r n - - t C v io 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—I.... 459.0 361.8 33.6 63.6 31.8 10.1 21.6 427.2 283.6 234.4 49.2 143.6 117.3 26.3 111.0 316.2 II. .. 471.1 372.0 35.2 63.9 31.9 9.7 22.2 439.3 290.9 240.7 50.2 148.3 121.6 26.7 114.4 324.9 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—Ip. . . 579.6 463.1 47.2 j 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, PH A, 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 Multifamily1 underwritten Con­ E pe n r d i o o d f Total F i i n c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i 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 1965.................................. 212.9 73.1 42.0 31.1 139.8 1966.................................. 223.6 76.1 44.8 31.3 147.6 1 1 1 1 9 9 9 9 6 6 6 6 7 8 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 5 6 9 8 0 4 8 0 . . . . 1 0 0 6 2 2 2 2 5 2 1 3 0 3 3 6 . . . . 8 7 2 6 4 4 3 4 0 6 7 3 . . . . 3 8 9 4 4 4 4 3 0 7 3 7 . . . . 3 3 2 9 2 3 3 31 9 7 4 . . . . 5 7 7 0 9 9 8 8 . . . . 2 8 7 2 1 1 1 9 9 9 6 6 6 9 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 3 6 8 5 6 6 0 1 . . . . 1 8 2 2 9 9 7 8 7 0 9 4 . . . . 9 2 2 4 5 5 4 5 4 0 7 9 . . . . 5 9 6 4 3 3 3 3 5 3 7 2. . . . 5 3 8 7 1 1 1 1 5 7 6 8 6 6 6 2 . . . . 1 9 8 6 1969................. 319.0 265.0 54.0 52.2 41.3 10.8 1970................ 338.2 277.1 61.1 58.0 45.8 12.2 1971—11........................... 290.9 100.4 62.8 37.6 190.5 1971— I 11 l . l . _ .. _ .. _ ... 3 3 5 6 3 4 . . 1 0 2 2 9 89 8 . . 9 4 6 63 5 . . 2 6 6 62 4 . . 1 3 4 5 9 0 . . 2 4 1 1 2 3 . . 9 9 I IV ll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 0 99 7. .7 8 1 1 0 0 2 5 . . 9 2 6 6 5 4 . . 7 4 3 39 8 . . 5 5 2 1 0 9 2 6 . .8 6 IV........ 374.7 306.1 68.6 66.8 52.0 14.9 1972—1............................. 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 Ill.......................... 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. . 3 9 1 1 6 6 . . 6 0 IVp....................... 346.1 112.9 68.2 44.7 233.1 IV........ 422.5 347.9 74.6 76.4 59.1 17.3 1973—1p........................... 353.9 1973—1*........ 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 ta v l e n d ti e o b n t a l, o u fi t g s u ta r n es d i a n r g e , de fi r g 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 □ SEPTEMBER 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings Residential Residential End of period Other Other Total non­ Total non­ Farm FHA- VA- Con­ farm VA- Con­ farm Total in­ guar­ ven­ Total guar­ ven­ sured anteed tional sured anteed tional 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 7,342 114 197 0 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—1. . 74,424 46,343 7,971 2,595 35,777 23,595 4,486 58,680 50,553 16,157 12,010 22,386 8,014 113 II. 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 8,174 107 Ill 79,936 50,280 8,246 2,806 39,228 25,500 4,156 60,625 51,989 16,216 12.033 23,740 8,561 75 IV. 82,515 52,004 8,310 2,980 40,714 26,306 4,205 61.978 53,027 16,141 12,074 24,812 8,901 50 1972—1.. 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62.978 53,733 16,184 12,144 25,405 9,195 50 II. 90,114 56.782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 9,586 60 Ill 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV. 99,314 62.782 8,495 3,203 51,084 31,751 4,781 67.556 57,140 16,013 12,622 28,505 10,354 62 1973—1.. 103,314 65,192 33,060 5,062 68,920 58,169 10,683 i Includes loans held by nondeposit trust companies but not bank Note.—Second and fourth quarters. FDIC series for all commercial trust depts. and mutual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H ur A e - d a g n V u t A a ee r - - 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 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—June'.................................... 684 620 46 20 554 64 75,404 69,822 10,408 4,847 54,567 5,582 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 May...................................... 774 694 22 21 651 80 77,400 71,721 9,627 4,549 57,545 5,679 June............. ..................... 1,101 1,009 24 2.7 758 90 77,914 72,187 9,544 4,524 58,119 5,727 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

SEPTEMBER 1973 □ REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total o N f 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 ) d o f ( o th a f m o L d u o o o s a l u a l n a n n r t d s ) s ( C p in o e r t n r 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 e o r r - o a v t a c a i e n o l n - u t e ) C (p a t e p i r o it n a c 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 196 8 2,569 3,244.3 1,263 7.66 22/11 73.6 9.0 1.30 9.5 196 9 1,788 2,920.7 1,633 8.69 21/8 73.3 9.6 1.29 10.2 197 0 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 197 1 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.2 9 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 May, 246 399.6 1,624 8.48 23/4 76.0 9.5 1.26 9.8 June, 268 683.2 2,549 8.55 23/0 75.4 9.5 1.29 9.8 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) Members1 Ad­ Repay­ deposits Period vances ments (end of New Total Short­ Long­ period) Period home Home FHA- VA- Con­ term 1 term 2 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 1966......................... 3,804 2,866 6,935 5,006 1,929 1,036 1967......................... 1,527 4,076 4,386 3,985 401 1,432 1965. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968......................... 2,734 1,861 5,259 4,867 392 1,382 1966. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969......................... 5,531 1,500 9,289 8,434 855 1,041 1967. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1968 , 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1970......................... 3,256 1,929 10,615 3,081 7,534 2,331 1969. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1971......................... 2,714 5,392 7,936 3,002 4,934 1,789 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. 39,472 6,835 18,811 174,385 13,798 10,848 149,739 1972—July............. 285 222 6,138 1,990 4.148 1,497 Aug.............. 406 249 6,295 2,083 4,212 1,442 1972--July... 4,572 743 2,515 191,642 15,153 12,606 163.883 Sept............. 631 189 6,736 2,307 4,429 1,443 Aug... 5,379 803 3,087 194,955 15,263 12,892 166,800 542 233 7,045 2,440 4,605 1,334 Sept... 4,689 739 2,587 197,881 15,342 13,098 169,441 Nov............. 445 246 7,245 2,520 4,725 1,371 Oct___ 4,522 761 2,423 200,554 15,378 13,334 171,842 Dec.............. 984 251 7,979 2,961 5,018 2,104 Nov... 4,393 714 2,307 203,266 15,490 13,544 174,232 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 Feb.............. 415 302 7,944 2,774 5,170 1,321 1973--Jan.... 3,702 590 1,970 208,132 29,581 178,551 Mar............. 764 288 r8,421 2,975 5,446 1,290 Feb.. . 3,710 614 2,019 210,260 29,751 180,509 1,187 178 r9,429 3,450 5,979 1,142 Mar... 4,990 887 2,685 213,259 30,045 183,214 May............ 915 187 10,156 3,428 6,728 1,261 Apr... 4,989 886 2,762 216,250 30,182 186,068 June............ 1,093 104 11,145 4,016 7,129 1,380 May. . r5,477 931 3,141 219,500 30,296 189,204 July............. 1,373 153 12,365 4,583 7,782 1,164 June r. 5,738 903 3,469 222,801 30,381 192,420 July... 5,024 841 3,062 225,507 30,276 195,231 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. not shown separately. 2 Includes shares pledged against mortgage loans; beginning 1966, also Note.—FHLBB data. includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ SEPTEMBER 1973 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans Mortgage Mortgage Mortgage home loans holdings transactions commitments E pe n r d i o o d f ( p d e u r r io in d e ) Date of auction M am or o t u g n a t g s 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 FHA- VA- Made Out (short­ (short­ Total su in re ­ d a g n u t a ee r­ d ch P a u s r e ­ s Sales d p u er r i i o n d g st i a n n g d­ Offered ce A p c te ­ d c m o te m e r n m m ts i ) t­ Offered ce A p c te ­ d c m o te m e r n m m ts i ) t­ 1 1 1 9 9 9 6 6 6 7 8 9 1 5 7 0 , , , 5 1 9 2 6 5 2 7 0 5 4 7 , , , 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 9 4 2 0 4 1 0 4 12 2 6 1 , , . 6 6 7 9 3 3 6 2 0 3 1 , , 5 2 5 8 3 01 7 9 In m do il l l l i a o r n s s of per I n cent In m do il l l l i a o r n s s of per I n c ent 197 0 15,502 11,071 4,431 5,078 8,047 5,203 1 1 9 9 7 7 2 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 7 . . 7 7 9 9 1 1 i4,624 5,112 3 3 , , 5 6 7 8 4 4 2 3 1 3 3 6 4,986 5,694 1972—Dec. 26 108.7 66.3 7.69 1972-July... 18,740 14,013 4,714 258 3 515 6,471 1973—Feb. 2 6 0.... 110.3 71.6 7.73 100.9 62.9 7.89 A Se u p g t . . . . . . 1 19 9 , , 2 02 9 3 5 1 14 4 , , 1 3 8 8 8 0 4 4 , ,8 88 1 8 6 4 4 0 2 1 7 4 7 6 5 6 5 6 6 , , 4 3 5 0 1 9 21 66.0 49.6 7.92 Oct. . . 19,438 14,462 4,939 265 887 6,654 Mar. 5.... 170.8 107.7 7.75 D N e o c v . . . . . . 1 1 9 9 , , 7 6 9 1 1 9 1 1 4 4 , , 6 55 2 8 4 5 5 , , 1 0 1 1 2 6 3 3 0 1 7 5 12 6 1,0 3 8 8 6 8 6 5 , , 5 4 6 4 2 0 1 6 9.... 297.3 168.7 7.81 60.3 44.3 7.95 1973-Jan.... 19,982 14,743 5,170 225 29 392 6,943 21 86.8 56.4 8.02 Feb.. . 20,181 14,872 5,223 218 493 6,911 Apr. 2. ... 234.6 145.9 7,86 A M p a r r . . . .. . 2 2 0 0 , , 5 7 7 9 1 1 1 15 5 , , 2 3 0 8 1 9 5 5 , , 2 2 5 69 9 3 1 2 7 6 4 1,2 9 1 3 1 4 8 8 , , 1 7 6 4 5 2 1 3 6.... 216.6 190.7 7.89 111.9 81.6 8.11 J M J u u a l n y y e . . . . . . . 2 2 2 1 1 1 , , , 4 0 7 1 8 7 3 6 2 1 1 1 5 5 5 , , , 5 8 7 8 6 7 1 8 7 5 5 5 , , , 3 4 5 1 3 7 1 5 4 3 5 5 3 1 1 0 6 6 1 1 1 1 , , , 1 1 1 9 8 0 1 0 2 9 9 9 , , , 3 7 8 7 1 5 8 9 2 3 17 0.... 261.2 185.9 7.92 1 1 2 1 8 1 . . 9 0 8 8 8 8 . . 4 2 8 8. . 2 1 3 7 May 14.... 258.3 187.7 7.96 117.6 84.4 8.31 28.... 212.4 140.0 8.00 113.3 74.0 8.39 Note.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. June 11 . . . 184.5 142.2 8.04 110.1 74.1 8.44 G M N or M tg A ag . e M h o o r ld tg in a g g s e i c n o c m lu m de i t l m oa e n n s ts u m se a d d t e o d b u a r c i k n g b o th n e d p is e s r u i e o s d g i u n a c r lu an d t e e e s d o m by e 25. . . 199.3 118.7 8.09 95.0 69.4 8.51 multifamily and nonprofit hospital loan commitments in addition to 1- to July 9.... 539.0 244.8 8.38 108.0 72.5 8.67 4-family loan commitments accepted in FNMA’s free market auction 23.... 351.4 181.4 8.54 119.0 61.7 8.79 system, and through the FNMA-GNMA Tandem Plan (Program 18). Aug. 6.... 458.5 201.9 8.71 154.3 77.4 8.98 20. . . 525.0 223.8 8.95 171.3 77.2 9.27 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 GOVERNMENT NATIONAL MORTGAGE ment fees and FNMA stock purchase and holding requirements. Since ASSOCIATION ACTIVITY 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. (In millions of dollars) GNMA MORTGAGE-BACKED SECURITY PROGRAM Mortgage Mortgage Mortgage holdings transactions commitments (during (In millions of dollars) End of period) period Made Out Pass-through securities Total sured 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 Period B s o o n ld ds Applications Securities received issued 196 7 3,348 2,756 592 860 1,045 1,171 196 8 4,220 3,569 651 1,089 867 1,266 196 9 4,820 4,220 600 827 615 1,131 197 0 1,126.2 452.4 1,315.0 197 0 5,184 4,634 550 621 897 738 197 1 4,373.6 2,701.9 300.0 197 1 5,294 393 197 2 3,854.5 2,661.7 197 2 5.113 1972—July. 135.5 145.8 1972-July.. 5,301 Aug. 548.3 140.3 Aug.. 5,405 Sept. 192.0 130.9 Sept.. 5,278 Oct.. 237.8 164.1 Oct... 5,203 Nov. 226.4 138.2 Nov.. 5,152 Dec. 440.9 299.8 Dec.. 5.113 1973—Jan.. 515.7 323.3 1973-Jan.. 5,117 Feb.. 167.2 216.8 Feb.. 4,984 Mar. 339.4 139.9 Mar.. 4,663 Apr. 467.8 >•182.1 Apr.. 4,439 May 563.3 338.8 May. 3,980 June 243.1 315.3 June. 3,908 July. 215.7 384.7 July.. 4,156 Note.—GNMA data. Under the Mortgage-Backed Security Program, ven N t o io t n e a .— l lo G a N ns M . D A a d ta a t p a r . io T r o t t a o l S h ep o t ld . i 1 n 9 g 6 s 8 i r n e c l l a u t d e e t o a S sm pe a c l i l a l a m A o ss u is n t t a n o c f e c a o n n d ­ p G a N ss M -th A r o g u u g a h r a a n n te d e s b o th n e d - t t im yp e e l y s e p c a u y r m it e ie n s t , o w f h p i r c i h n c a ip re a l b a a n c d k e i d n te b r y e s a t o p n o o b l o t o h f Management and Liquidating portfolios of former FNMA and include mortgages insured by FHA or Farmers Home Admin, or guaranteed by mortgages subject to participation pool of Government Mortgage Liquida­ VA and issued by an approved mortgagee. To date, bond-type securities tion Trust, but exclude conventional mortgage loans acquired by former have been issued only by FNMA and FHLMC. FNMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ REAL ESTATE CREDIT A 53 HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL (In per cent) LOANS MADE (In millions of dollars) Primary market Secondary (conventional loans) market FHA-insured VA-guaranteed Period F (e H ff L ec B ti B ve s r e a r t ie e s ) ( H s F e H U rie A D s ) o i n n Y s F i u e H r l e d A d - Period Mortgages Pro­ P e r r o ty p­ Mortgages New Existing New l h n o o e a m w ns e - Total h N om ew es h is o E t m i x n ­ e g s jects 1 m pr i e m o n v ­ t e s ­ 2 Total J 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 1,776 196 8 6.97 7.03 7.12 7.21 1966............. 7,320 1,729 4,366 583 641 2,600 980 1,618 196 9 7.81 7.82 7.99 8.29 1967............. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 197 0 8.44 8.35 8.52 9.03 1968............. 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 197 1 7.74 7.67 7.75 7.70 1969............. 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 197 2 7.60 7.52 7.64 7.52 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—July.. 900 261 374 218 47 675 183 492 Oct.. 7.62 7.57 7.70 7.57 Aug.. 1,018 310 440 201 67 776 224 552 Nov. 7.64 7.57 7.70 7.57 Sept.. 949 245 340 287 77 758 212 546 Dec. 7.66 7.59 7.70 7.56 Oct... 862 255 343 170 94 720 204 516 Nov.. 1,001 261 331 312 97 790 246 544 1973—Jan.. 7.68 7.68 7.70 7.55 Dec.. 964 190 245 444 85 715 220 495 Feb. 7.70 7.72 7.75 7.56 Mar. 7.68 7.69 7.80 7.63 1973—Jan... 834 254 324 197 59 681 218 463 Apr. 7.71 7.70 7.90 7.73 Feb.r 710 162 235 197 52 592 187 405 May 7.71 7.77 7.95 7.79 Mar.r 969 195 268 262 65 596 185 411 June 7.79 7.79 8.05 7.89 Apr. r 620 151 223 440 74 621 187 434 July. 7.84 7.84 8.40 8.19 May r 462 158 228 172 81 634 198 436 June. 644 153 229 122 61 646 182 464 July.. 551 143 250 201 66 666 204 462 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 o e n n n a ­ ­ l c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g s O t i a n u n g t d ­ ­ 1966................. 3.40 2.54 .54 .32 .36 1967................. 3.47 2.66 .54 .27 .32 1968................. 3.17 2.43 .51 .23 .26 1970.................... 325 325 325 1969................. 3.22 2.43 .52 .27 .27 1971 .................. 968 821 147 778 64 182 1970................. 3.64 2.67 .61 .36 .33 1972..................... 1,790 1,503 287 1,298 408 198 1971................. 3.93 2.82 .65 .46 .46 1972................. 4.65 3.42 .78 .45 .48 1972—June 1,415 1,344 71 194 97 117 313 July......... 1,475 1,374 100 74 11 75 298 1971_I........... 3.21 2.26 .56 .39 .40 Aug......... 1,498 1,394 104 107 75 109 263 II.......... 3.27 2.36 .53 .38 .38 Sept......... 1,545 1,408 137 66 13 136 318 II I 3.59 2.54 .62 .43 .41 Oct.......... 1,631 1,439 192 102 9 189 371 I V 3.93 2.82 .65 .46 .46 Nov......... 1,744 1,491 253 128 10 89 293 Dec.......... 1,790 1,503 287 143 87 93 198 1972—1........... 3.16 2.21 .58 .37 .50 II......... 3.27 2.38 .53 .36 .48 1973—Jan.......... 1,761 1,517 244 76 99 142 226 II I 3.82 2.74 .65 .43 .52 Feb.......... 1,677 1,535 142 76 150 166 300 IV i... J \4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . . 7 7 9 8 . . 4 45 6 . . 5 48 0 A M p a r r . . . . . . . . . . . . . . . . . . . 1 1 , , 7 7 1 8 8 4 1 1 , , 5 6 8 4 9 6 1 1 2 3 8 8 1 1 1 2 9 6 6 5 8 1 1 14 9 1 3 2 3 9 43 5 May........ 1,906 1,695 211 147 17 187 344 1973—j........... 3.63 2.52 .68 .43 June........ 2,029 1,716 313 154 21 159 316 II......... 3.84 2.81 .64 .39 Note.—FHLMC data. Data for 1970 include only the period beginning 1 First line is old series; second line is new series. Nov. 26 when the FHLMC first became operational. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings in­ Note.—Mortgage Bankers Association of America data from clude loans used to back bond issues guaranteed by GNMA. Commitment data reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ cover the conventional and Govt.-underwritten loan programs. ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 CONSUMER CREDIT □ SEPTEMBER 1973 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1940. 8,338 5,514 2,071 1,827 371 1,245 2,824 800 1,471 553 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950. 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955. 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960. 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 1965. 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 1966. 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 1967. 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 7,070 5,727 1968. 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 1969. 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 1970. 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 1971 . 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 1972. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1972--July................................. 145,214 117,702 41,603 35,470 5,797 34,832 27,512 11,235 7,644 8,633 Aug................................. 147,631 119,911 42,323 36,188 5,950 35,450 27,720 11,411 7,717 8,592 Sept................................. 148,976 121,193 42,644 36,745 6,049 35,755 27,783 11,541 7,693 8,549 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 152,968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 8,716 Dec.................................. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973- 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 Feb.................................. 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 9,568 Mar................................. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 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 July................................. 169,148 138,212 49,352 42,575 6,845 39,440 30,936 12,968 8,479 9.489 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “Other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 Note.—Consumer credit estimates cover loans to individuals for house- and Bulletins for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Finance Mis­ Auto­ Other Total mercial compa­ Credit cellaneous Total mobile retail banks nies 1 unions lenders 1 dealers 2 outlets 1940................................................................... 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 2,462 1,776 745 910 102 19 686 28 658 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 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 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 12,866 102,064 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 13,925 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1972—July........................................................ 117,702 104,132 55,688 30,065 15,910 2,469 13,570 248 13,322 Aug....................................................... 119,911 106,146 56,846 30,464 16,278 2,558 13,765 251 13,514 Sept....................................................... 121,193 107,278 57,566 30,650 16,439 2,623 13,915 253 13,662 Oct........................................................ 122,505 108,405 58,266 30,970 16,556 2,613 14,100 257 13,843 124,325 109,673 58,878 31,427 16,742 2,626 14,652 259 14,393 Dec........................................................ 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1973—Jan......................................................... 127,368 111,690 60,148 32,177 16,847 2,518 15,678 263 15,415 Feb........................................................ 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 15,063 Mar....................................................... 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 Apr........................................................ 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 July...................................................... 138,212 122,479 66,065 35,020 18,517 2,877 15,733 293 15,440 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with “Other retail outlets.” cellaneous lenders include savings and loan associations and mutual savings banks. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 V 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 1965............... 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 1966............... 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 1967............... 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 1968 ........... 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 1969............... 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5.775 174 12,485 1970 ............. 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 1971............... 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 1972............... 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—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 July.. 66,065 18,439 12,023 6,629 5,603 5,815 3,774 13,782 35,020 11,365 3,132 4,103 733 15,687 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 1 1 9 94 4 0 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 , , 8 20 2 3 4 6 6 3 7 6 4 1 7 6 2 4 1 1 , , 6 47 1 1 2 8 55 4 3 5 1 1 1 9 9 9 6 6 6 7 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 8 0 , , , 3 2 2 1 8 1 5 6 9 3 3 3, , , 4 6 0 1 7 3 1 8 6 4 6 5 9 5 8 8 8 4 1,0 9 9 8 3 8 5 3 0 4 4 3 , , , 7 3 8 9 3 2 9 6 2 1955................ 1 9 6 3 , , , 7 9 1 6 2 7 8 3 4 2 3 1 , , , 6 5 8 3 7 8 5 6 4 2 6 3 4 2 6 5 3 7 4 4 3 , , ,2 5 8 9 7 9 1 3 9 4 2 7 1 3 6 6 6 2 3 1 , , , 1 3 5 2 3 8 7 7 0 1 1 9 9 6 6 8 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 3 , , 7 7 1 2 7 2 4 4 , , 9 2 4 3 1 8 7 9 7 5 1 1 1 1 , ,2 4 1 4 5 3 6 5, ,3 4 8 9 7 3 1 1 9 9 6 6 5 6 . . . . . . . .. .. . . . . .. . . .. . . . . .. .. . . . . . 1 1 9 8 , , 9 9 9 9 4 0 6 6 , , 6 9 9 46 0 1,0 9 2 81 6 5 5, , 8 7 1 2 2 4 7 8 0 7 6 4 4 5 , , 8 3 8 3 9 6 1 1 9 9 7 7 0 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 17 5 , , 0 0 2 8 1 8 5 5 , , 1 7 1 4 6 7 1 1 , , 1 4 7 7 7 2 1 1 , ,9 8 3 0 0 0 7 6 , ,9 8 9 7 5 2 1967................. 2 2 1 3 , , 3 0 5 2 5 5 7 8 , , 4 3 7 7 8 4 1 1, , 1 0 5 8 8 0 5 6, , 0 9 4 6 1 6 1 1 , ,0 22 2 7 9 5 6 , , 7 3 2 0 7 0 1972................................... 19,511 6,598 1,690 2,160 9,063 24,041 8,553 1,194 5,936 1,437 6,921 1972—July....................... 18,379 6,204 1,589 2,062 8,524 25,099 8,469 1,206 6,163 1,805 7,456 Aug....................... 18,836 6,353 1,628 2,113 8,742 1971................. 27,099 9,316 1,269 6,397 1,953 8,164 Sept....................... 19,062 6,421 1,645 2,144 8,852 30,232 10,857 1,399 7,055 1,947 8,974 D O N e c o c t v . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 9 9 9 , , , 5 1 3 1 6 6 1 8 9 6 6 6 , , , 4 5 5 6 9 3 1 8 5 1 1 1 , , , 6 6 6 7 5 9 5 6 0 2 2 2 , , , 1 1 1 6 6 5 5 7 0 9 8 8 , , , 0 9 8 6 9 9 3 3 5 1972—J A S u e u l p g y t — . . . . . . 2 2 2 7 7 7 , , , 7 5 7 8 1 2 3 2 0 1 1 9 0 0 , , , 9 1 0 0 6 5 5 3 0 1 1 1 , , , 3 3 3 3 5 7 5 8 6 5 5 5 , , , 6 6 6 1 6 7 3 4 6 2 2 1 , , , 0 0 9 4 8 8 1 0 0 8 8 8 , , , 6 5 5 3 4 9 3 9 2 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 A M p a r y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 0 0 , ,5 1 9 9 9 0 6 6 , , 8 9 2 66 0 1 1 , , 7 7 4 8 8 5 2 2 , , 2 21 5 6 0 9 9 , , 5 4 9 0 8 6 1973—Jan.. .. 29,859 10,825 1,379 6,402 1,955 9,298 J J u u n ly e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 , , 0 3 8 9 4 4 7 7 , , 1 2 3 3 5 2 1 1 , ,8 8 2 5 8 3 2 2, , 3 2 3 9 8 4 9 9 , , 9 8 7 2 1 7 A F M e p a r b r — . . . . . . . . 2 3 2 9 0 9 , , , 9 4 6 4 6 2 5 3 9 1 1 1 1 1 0 , , , 0 2 9 3 8 7 9 7 4 1 1 1 , , , 4 4 4 6 4 2 6 9 0 5 6 5 , , , 8 1 7 2 2 3 5 9 5 1 1 1 , , , 8 9 9 1 7 0 1 7 7 9 9 9 , , , 7 5 7 4 6 0 8 7 3 May... 30,746 11,359 1,458 6,387 1,932 9,610 lan N eo o u t s e .— len O d t e h rs e . r M fin is a c n e c ll i a a n l e l o e u n s d e le rs n d c e o rs n s i i n s c t lu o d f e c s r a e v d i i n t g u s n a i n o d n s lo a a n n d a m ss i o s c c i e a l­ ­ J J u ul n y e . . . . . . 3 3 1 0 , , 0 9 6 3 5 6 1 1 1 1 , , 4 5 9 2 1 0 1 1 , , 4 4 7 7 7 0 6 6 , , 4 5 2 4 4 4 2 2 , , 0 01 5 1 5 9 9 , , 4 5 8 2 9 0 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 □ SEPTEMBER 1973 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.i N.S.A.. S.A.i N.S.A. S.A.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—July.. 11,687 11.833 3,298 3,480 4,684 4,544 328 358 3,377 3,451 Aug.. 12,484 13,166 3,491 3,696 4,990 5,094 371 431 3,632 3,945 Sept.. 11,953 11,535 3,368 3,110 4,772 4,695 340 360 3,473 3,370 Oct.. 12,404 12,337 3,504 3,663 4,971 4,831 335 347 3,594 3,496 Nov.. 12,846 12,806 3,620 3,505 5,118 5,202 327 321 3,781 3,778 Dec.. 12,627 13,643 3,763 3,195 4,876 6,171 351 280 3,637 3,997 1973—Jan... 13,304 11,923 4,006 3,393 5,282 4,949 329 259 3,687 3,322 Feb.. 13,434 11,214 3,972 3,407 5,245 4,252 364 300 3,853 3,255 Mar.. 13,852 13,681 4,001 4,164 5,349 5,169 406 377 4,096 3,971 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 July.. 14,518 14,812 3,930 4.177 5,901 5,753 433 472 4,254 4.410 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—July.. 10,593 10,496 2,917 2,896 4,249 4,115 279 278 3,148 3,207 Aug.. 10,841 10,957 2,896 2,976 4,395 4,376 270 278 3,280 3,327 Sept.. 10,667 10,253 2,873 2,789 4,303 4,138 263 261 3,228 3,065 Oct... 10,908 11,025 3,041 3,145 4,354 4,360 263 272 3,250 3,248 Nov.. 11,128 10,986 3,023 2,993 4,444 4,354 271 271 3.390 3,368 Dec.. 10,964 10,636 2,977 2,740 4,341 4,155 263 253 3,383 3,488 1973—Jan... 11,355 11,887 3,097 3,169 4,649 5,077 267 267 3,342 3,374 Feb.. 11,437 10,623 3,145 2,943 4,627 4,409 275 254 3.390 3,017 Mar.. 11,808 12,265 3,225 3,371 4,755 5,013 286 288 3,542 3,593 Apr.. 12,061 12,014 3,218 3,233 4,963 4,888 294 292 3,586 3,601 May. 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 July.. 12,551 12,618 3,333 3,374 5,145 5,031 309 315 3,764 3,898 Net change in credit outstanding 2 196 5 8,198 3,502 2,150 158 2,388 196 6 5,352 1,573 2,249 105 1,425 196 7 3,183 -214 1,657 167 1,573 196 8 8,317 3,152 2,237 231 2,697 196 9 9 360 2,579 3,687 374 2,720 197 0 4 959 -343 3,152 457 1,693 197 1 9,231 3,480 2,888 343 2,520 197 2 16,037 5,465 5,727 788 4,057 1972—July.... 094 1,337 381 584 435 429 49 80 229 244 Aug---- 643 2,209 595 720 595 718 101 153 352 618 Sept.... 286 1,282 495 321 469 557 77 99 245 305 Oct....... 496 1,312 463 518 617 471 72 75 344 248 Nov---- 718 1,820 597 512 674 848 56 50 391 410 Dec.... 663 3,007 786 455 535 2,016 88 27 254 509 1973—Ja..........n 949 36 909 224 633 -128 62 -8 345 -52 Feb.... 997 591 827 464 618 -157 89 46 463 238 Mar___ 044 1,416 776 793 594 156 120 89 554 378 Apr.. .. 404 1,647 604 868 600 490 71 80 129 209 May. .. 991 2,509 728 1,040 587 655 84 133 592 681 June... 612 2,487 509 1,031 550 757 100 147 453 552 July.... 967 2,194 597 803 756 722 124 157 490 512 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

SEPTEMBER 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.i N.S.A. S.A. 1 N.S.A. S.A.i N.S.A. S.A.i S.A.i 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—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 July.. 14,518 14,812 5,952 6.232 3,824 3.931 2,110 2,233 2,632 2.416 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—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 July.. 12,551 12,618 5,120 5,166 3,312 3,278 1 ,770 1,923 2,349 2,251 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 —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 —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 July................................. 1,967 2,194 832 1,066 512 653 340 310 283 165 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. □ SEPTEMBER 1973 MARKET GROUPINGS (1967 = 100) 1967 1972 1972r 1973 pro­ aver­ Grouping p ti o o r n ­ age July Aug. Sept. Oct. Nov. I Dec. Jan. Feb. Mar. Apr. Mayr Juner July Total index. 100.0 115.2 115.1 116.3 117.6 119.2 120.2 121.1 122.2 123.4 123.7 124.1 124.8 125.6 126.5 Products, total.................. 62.21 113.8 113.3 114.7 115.6 117.3 118.6 119.1 120.7 121.5 121.7! 122.0 122.9 123.3 124.1 Final products............... 48.95 111.9 111.6 112.6 113.6 115.3 116.3 116.8 118.6 119.3 119.6 120.0 120.8 121.2 122.1 Consumer goods.... 28.53 123.6 123.3 124.3 125.2 127.0 127.4 127.7 129.8 130.2 130.8 130.9 131.8 131. 132.3 Equipment................ 20.42 95.5 95.3 96.3 97.7 98.9 100.7 101.5 102.9 104.1 104.1 104.7 105.7 106.3 107.8 Intermediate products. 13.26 121.1 119.8 122.3 122. 124.7 127.6 127.7 128.4 129.5 129.4 129.3 130.5 131.1 131.5 Materials........................... 37.79 117.4 117.8 118.8 120.9 122.3 122.8 124.4 124.5 126.7 127.0 127.7 128.3 129.1 130.6 Consumer goods Durable consumer goods.................... 7.86 125.7 124.5 124.9 125.7 129.1 131.0 135.0 136.0 137.8 140.4 140.5 141.5 141.7 142.7 Automotive products..................... 2.84 127.7 125.3 126.0 125.4 132.3 138.3 142.9 138.6 141.7 144.1 141.7 142.6 142.6 144.8 Autos............................................ 1.87 112.7 108.2 109.5 109.6 118.9 126.6 133.9 130.2 131.5 130.8 128.1 129.8 132.6 134.0 Auto parts and allied goods... .97 156.5 158.0 158.1 155. 158.0 160.6 160.0 155.0 161.4 169.9 167.5 167.0 161.9 165.6 Home goods................................ 5.02 124.5 124.1 124.3 125. 127.3 126.9 130.5 134.5 135.8 138.3 139.8 140.9 141.2 141.3 Appliances, TV, and radios. 1.41 124.6 121.6 118.6 123.0 124.1 121.7 133.3 140.7 137.8 143.0 149.7 148.0 147.7 146.3 Appliances and A/C... .92 144.5 138.5 139.9 142.8 147.9 141.9 151.1 153.2 153.8 156.9 157.6 157.8 154.7 153.5 TV and home audio.... .49 87.5 89.9 78.6 86.1 79.4 83.9 99.9 117.4 108.0 116.8 135.0 129.6 134.3 132.8 Carpeting and furniture.... 1.08 132.6 132.3 136.4 134.5 137.6 137.6 139.0 142.1 145.0 145.7 146.7 147.8 148.1 151.4 Misc. home goods................. 2.53 121.0 121.8 122.4 123.6 124.7 125.2 125.3 127.5 130.9 132.7 131.4 134.0 134.7 134.1 Nondurable consumer goods............. 20.67 122.8 122.8 124.1 124.9 126.2 126.0 125.0 127.4 127.3 127.1 127.2 128.0 127.9 128.4 Clothing........................................... 4.32 122.8 110.4 112.0 113.5 113.5 114. 112.2 115.1 115.2 115.4 114.5 114.2 115.8 Consumer staples........................... 16.34 109.7 126.1 127.3 127.9 129.5 128.9 128.4 130.7 130.5 130.3 130.6 131.7 131.1 iii .8 Consumer foods and tobacco. 8.37 117.5 116.7 118.4 118.3 119.5 119.9 119.1 121.1 121.5 120.9 121.0 120.9 120.4 121.7 Nonfood staples........................... 7.98 135.3 135.9 136.6 138.1 140.0 138.3 138.1 140.9 140.0 140.1 140.7 143.1 142.4 142.5 Consumer chemical products. 2.64 144.6 144.7 145.9 147.6 149.1 145.1 143.9 148.8 149.9 151.1 151.5 154.9 152. 153.3 Consumer paper products___ 1.91 114.8 115.6 115.1 115.6 118.6 119.3 119.3 119.1 119.4 118.7 119.0 121.7 120.7 121.0 Consumer fuel and lighting.. 3.43 139.5 140.5 141.1 143.2 144.7 143.7 144.1 147.1 144.0 143. 144.4 145.6 146.2 146.2 Residential utilities.............. 2.25 147. 148.5 149.4 152.2 153.0 152.5 153.6 156.5 154.4 153.5 152.3 152.1 152.5 153.2 Equipment Business equipment....................... 12.74 106.1 105.5 107.2 109.6 111.6 113.4 114.4 116.9 118.2 118.6 119.6 121.3 122.1 123.5 Industrial equipment............... 6.77 102.5 102.4 104.0 107.9 109.1 110.4 111.5 113.0 114.5 115.6 117.4 119.1 119.6 120.0 Building and mining equip.. 1.45 104 106.0 106.9 108.1 108.3 108.7 112.3 113.0 115.1 116.0 118.1 118.8 119.4 119.7 Manufacturing equipment.. 3.85 92.7 93.2 96.1 99.1 101.0 102.6 102.5 104.7 106.1 107.5 109.4 112.0 112.5 113.0 Power equipment................. 1.47 125.6 122.3 122.4 130.9 131.2 132.9 134.1 134.6 135.5 137.1 137.6 138.2 138.4 138.6 Commercial, transit, farm eq.. 5.97 110.3 109.1 110.9 111.6 114.4 116.6 117.6 121.4 122.4 121.9 122.2 123.7 125.0 127.2 Commercial equipment.... 3.30 118.4 118.6 120.4 122.4 123.9 125.5 126.5 128.8 129.9 130.6 131.3 131.6 133.3 134.4 Transit equipment............... 2.00 96.8 92.5 93.0 92.9 96. 101.9 101.7 110.0 111.8 110.2 107.5 109. 109.7 109.0 Farm equipment................... .67 110.5 111.2 117.7 114.7 120.3 116.3 120.0 118.3 117.6 114.6 120.9 126.5 129.3 145.7 Defense and space equipment. 7.68 77.9 78.3 78.1 77.6 77.9 79.6 80.1 79.8 80.6 80.1 80.0 79.7 80.2 81.8 Military products................. 5.15 80.1 80.6 80.1 79.3 19 A 81.5 81. 81.0 82.0 81.5 81.0 80.1 80.1 82.2 Intermediate products Construction products........... 5.93 120. 118.0 121.2 122.9 125.6 130.0 128.7 129.6 130.3 130.7 132.2 132.2 133.0 133.5 Misc. intermediate products. 7.34 121.3 121.3 123.0 122.8 123.9 125.9! 126.9 127.4 128.9 128.3 127.0 129.2 129 129.9 Materials I Durable goods materials.... 20.91 113.5 113.0 114.5 118.1 120.2 121.4 123.5 124.1 126.6 127.6 127.9 128.6 129.5 130.9 Consumer durable parts. 4.75 113.8 113.2 115.5 118.1 119.0 120.5 123.6 123.9 125.4 125.9 129.0 125.7 128.0 130.0 Equipment parts.............. 5.41 99.3 100.2 100.1 103.1 107.5 109.7 112.0 111.6 113.0 114.6 113.8 118.0 117.7 120.0 Durable materials nec... 10.75 120.6 119.4 121.2 125.5 127.2 127.7 129.2 130.6 134.2 134.9 134.7 135.3 136.1 136.9 Nondurable goods materials............ 13.99 122.5 124.0 124.7 124.6 125.3 124.6 126.4 126.3 127.7 127.1 128.5 128.9 129.6 130.9 Textile, paper, and chem. mat.. 8.58 129.2 131.0 132.5 132.0 132.9 132.9 136.0 136.0 136.5 136.3 138.8 139.4 140.1 142.2 Nondurable materials n.e.c....... 5.41 111.9 112.6 112.3 112.7 113.3 111.8 111.4 110.9 113.9 112.7 112.2 112.3 112 112.9 Fuel and power, industrial............ 2.89 120.9 122.8 121.1 124.5 123.2 122.6 119.5 120.6 122.7 122.6 122.1 122.9 124.8 126.1 Supplementary groups Home goods and clothing. 9.34 117.7 117.8 118.6 120.1 120.9 121.1 122.0 125.5 126.3 127.6 128.1 128.6 129.6 129.5 Containers............................. 1.82 129.7 131.1 130.8 134.0 133.2 134.1 135.0 137.1 138.8 145.2 139.1 138.0 142 135.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 412.8 418.7 421.7 430.0 435.7 437.3 442. 445.7 446.9 446.2 449.7 451.1 452.4 Final products............. 317.8 322.2 324.8 331.6 334.7 336.3 340.5 342.7 343.9 343.7 346.6 347.5 348.5 Consumer goods... 224.4 227.1 228.2 233.1 234.4 235.9 237.6 238.2 239.5 238.9 241.1 241.2 241.3 Equipment................ 93.4 95.0 96.4 98.5 100.2 100.6 103.0 104.6 104.5 104 105.6 106.3 107.4 Intermediate products. 95.1 96.7 96.9 98.3 100.8 101.3 102.2 103.0 102.7 102.3 103.1 103.5 104.2 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r Juner July Manufacturing.......................................... 88.55 114.0 114.3 115.4 117.0 118.5 119.5 120.4 121.4 122.7 123.4 123.8 124.9 125.7 126.1 Durable................................................. 52.33 108.4 108.8 109.7 111.6 113.8 115.3 116.3 117.5 118.7 119.9 120.6 121.8 123.1 123.^ 36.22 122.1 122.5 123.6 124.8 125.2 125.6 126.2 127.0 128.4 128.6 128.4 129.3 129.3 130.: Mining and utilities................................ 11.45 124.1 124.0 124.8 126.5 126.6 126.7 126.1 127.3 128.0 127.3 126.6 127.0 127.7 129.1 Mining................................................... 6.37 108.8 108.6 108.8 110.8 110.2 109.7 108.2 108.5 110.2 109.5 109.0 109.1 109.8 111.* Utilities................................................. 5.08 143.4 143.3 144.9 146.4 147.1 148.2 148.5 151.0 150.5 149.6 148.7 149.5 150.3 151.: Durable manufactures 12.55 113.9 114.7 115.3 118.8 121.3 122.6 124.0 124.3 125.4 125.8 127.3 128.1 130.0 129 A Primary metals.................................... 6.61 113.1 115.1 114.3 119.7 122.1 122.9 125.4 123.1 124.7 123.5 125.8 126.1 127.0 127.: Iron and steel, subtotal................. 4.23 107.1 108.1 108.1 114.7 118.4 119.2 120.0 118.6 120.0 117.5 119.7 119.8 119.9 120. < Fabricated metal products............... 5.94 114.8 114.3 116.6 118.0 120.4 122.2 122.3 125.7 126.2 128.4 128.9 130.3 133.6 132.< 32.44 103.5 103.7 104.6 106.0 108.2 110.1 111.2 112.5 113.7 115.1 115.7 117.3 118.5 118.! Machinery............................................ 17.39 107.5 108.4 109.7 111.8 114.0 115.7 116.8 118.4 119.1 121.4 122.6 124.7 126.4 126.1 Nonelectrical machinery............... 9.17 105.7 107.0 109.8 111.7 113.5 115.3 114.4 116.3 117.3 119.0 121.5 124.0 125.6 125.1 Electrical machinery...................... 8.22 109.6 109.9 109.5 112.0 114.7 116.1 119.6 120.8 121.2 123.9 123.8 125.4 127.4 127.( Transportation equipment............... 9.29 99.0 97.7 98.1 99.5 102.7 105.0 106.6 107.6 110.0 110.3 110.0 111.0 112.2 112.! 4.56 123.1 120.2 121.0 122.9 128.7 132.3 135.9 139.3 141.5 141.0 140.1 140.9 143.3 144.- Aerospace and misc. trans. eq... 4.73 75.8 76.0 76.1 77.2 77.6 78.7 78.3 77.1 79.7 80.8 81.1 82.2 82.2 82.i 2.07 120.2 121.7 122.7 124.3 125.0 125.1 126.6 130.1 131.9 133.8 134.7 138.9 139.1 139. Ordnance, private and Govt............ 3.69 86.0 86.6 86.5 84.8 85.2 87.3 87.8 87.0 87.6 87.1 86.4 85.4 86.8 88.: Lumber, clay, and glass......................... 4.44 120.0 120.0 121.0 121.9 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 129.1 130.. Lumber and products....................... 1.65 122.4 122.5 121.8 123.6 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.5 126.7 128. Clay, glass, and stone products----- 2.79 118.6 118.6 120.4 120.9 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.6 131.: Furniture and miscellaneous.................. 2.90 122.7 123.7 126.2 126.6 126.9 126.6 127.7 130.3 132.8 133.4 133.1 136.0 135.7 134.- Furniture and fixtures....................... 1.38 113.5 115.5 116.4 116.7 117.6 118.5 120.3 119.1 122.3 122.8 123.8 126.5 126.4 126.. Miscellaneous manufactures............ 1.52 131.1 131.0 135.1 135.6 135.4 134.0 134.5 140.5 142.4 143.0 141.6 144.5 144.4 141.' Nondurable manufactures Textiles, apparel, and leather............... 6.90 108.1 109.0 109.7 111.2 112.1 113.0 113.2 113.4 114.4 114.6 114.0 113.3 114.4 113. Textile mill products......................... 2.69 117.4 118.7 120.8 121.1 123.2 125.7 124.2 125.3 126.1 127.1 126.1 127.2 Ml.9 127.: Apparel products................................ 3.33 105.7 106.0 106.8 108.3 109.5 110.1 111.1 112.3 112.6 112.4 111.7 110.0 110.8 .88 88.9 90.1 86.5 91.6 88.0 85.9 87.4 81.3 85.1 85.0 86.8 83.0 86.6 84.: Paper and printing.................................. 7.92 116.1 117.0 117.6 117.7 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 122.8 123.. Paper and products............................ 3.18 128.2 131.0 130.5 130.1 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 135.0 136.. Printing and publishing..................... 4.74 107.9 107.6 108.7 109.4 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 114.7 114.: Chemicals, petroleum, and rubber.... 11.92 137.8 138.5 140.0 142.2 141.6 142.0 143.8 145.5 146.3 146.3 147.9 150.2 149.6 151.- Chemicals and products................... 7.86 139.6 140.0 141.3 144.8 143.9 143.2 144.7 146.4 147.2 146.8 147.8 150.2 150.0 151.: Petroleum products........................... 1.80 120.6 120.5 121.0 121.3 123.8 124.4 125.5 127.3 124.1 123.5 126.9 128.5 129.5 128.: Rubber and plastics products.......... 2.26 145.5 147.8 150.6 149.8 148.4 151.5 154.7 157.1 160.4 163.4 165.1 166.8 164.4 170. Foods and tobacco.................................. 9.48 117.6 117.0 118.3 118.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 121.5 120.2 121a Foods.................................................... 8.81 118.6 118.5 119.0 119.8 119.0 119.4 119.7 120.5 122.9 121.8 121.3 122.4 121.0 122. < Tobacco products............................... .67 103.7 96.7 108.5 103.0 111.8 112.5 102.5 107.9 110.3 118.1 112.9 111.2 108.1 Mining Metal, stone, and earth minerals.......... 1.26 107.3 101.9 106.8 110.6 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.8 117.1 Metal mining....................................... .51 120.9 109.8 118.6 124.8 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.0 121.6 129.< Stone and earth minerals................. .75 98.1 96.8 98.5 101.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.8 105.2 110. Coal, oil, and gas.................................... 5.11 109.2 110.3 109.3 110.8 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.3 109.3 no.: Coal....................................................... .69 104.2 109.0 97.8 105.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 106.4 109.- Oil and gas extraction....................... 4.42 110.0 110.5 lll.l 111.8 111.5 110.0 108.2 107.7 109.1 107.9 108.3 108.4 109.8 110. - Utilities Electric...................................................... 3.91 149.4 149.5 151.3 153.1 154.2 155.2 155.6 159.1 158.3 157.4 156.2 156.8 158.1 159.: 1.17 123.4 1 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. □ SEPTEMBER 1973 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ 1972 1972r 1973 Grouping p ti o o r n ­ a a v g e e r­ July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r Juner July 100.0 115.2 109.9 116.4 121.6 122.7 120.4 117.3 118.9 123.6 124.6 124.5 125.6 128.9 122.3 Products, total......................................... 62.21 113.8 109.6 116.1 121.8 121.9 118.5 114.2 116.6 120.6 121.8 121.2 122.4 127.1 121.4 Final products...................................... 48.95 111.9 107.0 113.7 119.9 119.7 116.1 112.0 115.3 119.1 120.0 118.9 120.0 124.9 118.6 Consumer goods............................. 28.53 123.6 117.5 127.3 134.3 133.2 126.8 120.2 125.3 129.2 130.8 129.2 130.3 136.3 127.9 20.42 95.5 92.3 94.8 99.8 100.8 101.1 100.5 101.4 104.9 105.0 104.6 105.5 109.0 105.5 Intermediate products....................... 13.26 121.1 119.1 125.1 128.9 130.1 127.5 122.2 121.2 126.1 128.5 129.6 131.4 135.2 131.7 Materials.................................................. 37.9 117.4 110.3 117.0 121.3 124.0 123.5 122.5 122.8 128.6 129.2 129.9 130.9 131.9 123.9 Consumer goods Durable consumer goods......................... 7.86 125.7 107.6 119.5 133.9 140.2 134.8 125.1 133.3 140.6 143.5 141.3 142.7 147.5 129.4 Automotive products......................... 2.84 127.7 93.5 108.0 137.2 147.0 141.9 123.9 138.5 149.1 151.5 147.6 147.4 154.4 127.3 Autos................................................. 1.87 112.7 61.0 78.4 120.6 135.6 132.9 109.8 134.8 144.6 143.9 135.8 138.2 148.5 108.5 Auto parts and allied goods........ .97 156.5 155.8 164.9 169.2 168.9 159.0 150.9 145.7 157.7 166.0 170.2 165.0 165.8 163.3 Home goods........................................ 5.02 124.5 115.5 126.0 132.0 136.3 130.8 125.8 130.3 135.8 138.9 137.7 140.1 143.6 130.6 Appliances, TV, and home audio. 1.41 124.6 109.1 112.3 127.7 142.7 129.1 122.0 139.7 142.6 149.0 148.2 148.5 147.3 128.6 Appliances and A/C.................. .92 144.5 134.1 129.1 143.5 164.9 143.5 134.6 153.7 157.0 166.2 165.6 166.1 163.4 148.3 TV and home audio.................. .49 87.5 62.2 80.9 98.2 101.2 102.2 98.4 113.6 115.7 116.9 115.4 115.7 117.1 91.9 Carpeting and furniture................ 1.08 132.6 114.4 138.4 139.6 139.7 140.8 140.0 141.0 150.2 149.1 146.1 146.3 150.3 131.0 2.53 121.0 119.5 128.3 131.1 131.3 127.6 121.9 120.4 125.9 129.0 128.2 132.7 138.6 131.6 Nondurable consumer goods.................. 20.67 122.8 121.2 130.2 134.4 130.6 123.7 118.4 122.2 124.9 126.0 124.6 125.6 132.0 127.3 Clothing................................................ 4.32 109.7 98.8 116.5 119.5 118.0 112.5 103.0 105.9 116.6 120.0 119.3 115.3 122.2 Consumer staples................................ 16.34 126.2 127.1 133.8 138.3 133.9 126.7 122.5 126.5 127.1 127.6 126.0 128.3 134.6 ‘ i 33 * i Consumer foods and tobacco.... 8.37 117.5 115.8 124.2 128.9 125.9 119.3 111.6 113.8 117.0 118.4 117.8 120.7 124.5 120.6 Nonfood staples.............................. 7.98 135.3 138.9 143.8 148.2 142.2 134.4 134.0 139.9 137.8 137.2 134.7 136.2 145.3 146.3 Consumer chemical products.. 2.64 144.6 146.9 149.1 162.4 157.4 145.0 133.8 139.9 140.2 147.3 146.9 154.0 162.0 155.6 Consumer paper products........ 1.91 114.8 116.2 121.2 122.8 124.9 118.5 113.2 112.4 116.2 115.5 117.8 117.0 124.1 124.8 Consumer fuel and lighting... 3.43 139.5 145.3 152.2 151.4 140.1 135.1 145.8 155.3 148.0 141.6 134.6 133.2 144.3 151.2 Residential utilities................ 2.25 147.8 154.9 165.1 163.5 146.4 139.4 154.5 168.5 160.1 151.8 140.4 135.5 148.7 159.8 Equipment Business equipment.................................. 12.74 106.1 101.4 105.4 113.1 114.5 113.7 112.0 114.4 119.6 119.8 119.7 121.1 126.0 120.5 Industrial equipment......................... 6.77 102.5 99.5 103.5 110.3 111.2 111.2 110.6 111.6 116.4 116.8 116.8 117.9 122.3 116.9 Building and mining equip........... 1.45 104.8 101.7 106.5 112.1 111.7 113.0 114.3 112.0 118.6 117.2 115.7 115.6 120.5 116.0 Manufacturing equipment........... 3.85 92.7 89.9 94.7 100.2 102.0 102.3 101.7 103.4 108.9 109.6 109.3 111.4 115.5 109.0 Power equipment........................... 1.47 125.6 122.3 123.7 134.8 134.6 132.9 130.2 132.7 133.9 135.3 137.3 137.1 141.8 138.6 Commercial, transit, farm eq........... 5.97 110.3 103.5 107.6 116.2 118.3 116.5 113.6 117.6 123.3 123.2 122.9 124.7 130.3 124.5 Commercial equipment................. 3.30 118.4 120.4 122.4 128.1 126.0 125.2 122.3 123.0 127.8 126.9 129.1 131.6 139.3 137.8 Transit equipment.......................... 2.00 96.8 78.2 85.2 95.0 104.0 104.6 99.2 108.1 114.8 114.9 110.8 112.0 113.8 102.5 .67 110.5 95.2 101.0 120.8 123.2 109.0 113.2 118.9 126.2 129.7 128.2 128.6 134.9 124.7 Defense and space equipment................ 7.68 77.9 77.2 77.2 77.7 78.0 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.8 80.7 Military products................................ 5.15 80.1 80.0 79.5 79.2 79.1 81.7 82.4 81.2 81.9 81.8 80.8 80.3 81.4 81.6 Intermediate products Construction products........................... 5.93 120.8 117.3 121.8 127.3 131.0 128.3 121.9 120.5 128.0 131.9 135.0 136.4 140.2 132.7 Misc. intermediate products................. 7.34 121.3 120.5 127.7 130.2 129.3 126.9 122.5 121.7 124.5 125.7 125.2 127.4 131.1 130.9 Materials 20.91 113.5 104.9 111.5 118.8 121.3 121.0 121.8 121.6 128.8 130.7 131.2 132.2 133.7 124.6 Consumer durable parts................... 4.75 113.8 99.2 108.5 118.2 120.5 122.1 126.8 126.8 129.3 129.4 130.0 128.8 130.9 119.6 5.41 99.3 93.6 97.7 104.1 107.2 108.7 111.0 110.8 114.7 117.5 117.4 118.7 120.2 114.2 Durable materials n.e.c..................... 10.75 120.6 113.1 119.7 126.4 128.7 126.7 125.1 124.7 135.7 137.9 138.7 140.6 141.7 132.1 Nondurable goods materials................... 13.99 122.5 117.3 124.3 124.7 128.2 127.1 123.9 124.5 129.2 128.2 129.4 130.7 131.0 123.7 Textile, paper, and chem. mat.......... 8.58 129.2 121.7 131.4 131.9 135.7 135.6 131.8 133.7 139.6 139.0 140.9 142.2 142.1 132.1 Nondurable materials n.e.c.............. 5.41 111.9 110.2 113.0 113.2 116.4 113.7 111.4 110.0 112.8 111.2 111.1 112.6 113.4 110.5 Fuel and power, industrial................... 2.89 120.9 115.6 121.3 123.5 123.3 123.6 120.3 122.6 124.5 123.2 122.3 122.7 123.4 119.2 Supplementary groups Home goods and clothing..................... 9.34 117.7 107.8 121.6 126.2 127.8 122.3 115.3 119.0 126.9 130.2 129.2 128.6 133.7 118.9 Containers................................................ 1.82; 129.7 127.3 134.6 136.9 141.3 133.3 125.0 129.4 140.5 142.6 139.4 140.9 146.7 131.1 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1967 1972 1972r 1973 pro­ aver­ Grouping p ti o o r n ­ age July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r Juner July Manufacturing, total............................... 88.55 114.0 107.8 114.6 120.3 122.2 120.0 116.3 117.6 123.2 124.6 124.7 125.8 129.0 120.8 Durable................................................. 52.33 108.4 101.2 106.3 113.5 116.4 115.3 113.3 114.9 121.0 122.5 122.4 123.2 126.1 117.6 Nondurable.......................................... 36.22 122.1 117.4 126.6 130.2 130.6 126.7 120.6 121.5 126.3 127.7 128.0 129.5 133.3 125.5 11.45 124.1 125.1 130.4 131.2 126.5 123.8 125.2 128.6 127.5 125.0 122.7 123.6 128.3 130.3 Mining................................................... 6.37 108.8 106.3 109.9 111.7 111.3 110.6 109.2 107.0 109.2 107.6 108.5 110.7 111.2 109.1 Utilities................................................. 5.08 143.4 148.7 156.1 155.8 145.5 140.5 145.4 155.7 150.6 146.8 140.5 139.9 149.9 156.9 Durable manufactures Primary and fabricated metals............. 12.55 113.9 105.4 110.0 117.4 121.1 120.3 120.5 120.4 130.0 132.1 131.7 131.2 132.1 120.2 Primary metals.................................... 6.61 113.1 101.9 107.3 115.4 119.4 117.1 118.9 118.5 131.3 133.8 133.9 131.7 130.4 114.1 Iron and steel, subtotal................. 4.23 107.1 98.7 101.4 108.3 113.4 110.9 114.2 112.3 125.8 128.3 128.5 125.8 121.1 111.9 Fabricated metal products............... 5.94 114.8 109.2 113.1 119.7 123.0 123.9 122.3 122.6 128.5 130.1 129.3 130.7 133.9 126.9 32.44 103.5 95.9 100.3 108.6 111.3 110.6 109.0 111.8 116.0 117.1 116.7 117.9 121.5 114.3 17.39 107.5 102.8 106.8 114.7 117.1 115.0 114.6 116.9 121.8 123.3 123.5 124.9 129.1 122.1 Nonelectrical machinery............... 9.17 105.7 103.5 106.8 113.6 114.3 113.1 112.5 114.0 121.2 122.2 122.3 124.0 129.1 123.9 Electrical machinery...................... 8.22 109.6 102.0 106.8 116.0 120.3 117.1 117.0 120.2 122.4 124.5 124.8 125.9 129.1 120.1 Transportation equipment............... 9.29 99.0 81.2 88.6 102.1 107.2 108.0 103.2 108.7 113.5 114.0 112.8 113.4 116.3 104.7 Motor vehicles and parts............. 4.56 123.1 88.1 102.7 127.4 137.5 138.3 129.2 142.6 148.6 147.3 144.9 145.6 151.2 129.2 Aerospace and misc. trans. eq. .. 4.73 75.8 74.6 75.0 77.8 78.0 78.9 78.1 76.0 79.6 82.0 81.8 82.4 82.7 81.1 Instruments.......................................... 2.07 120.2 121.7 125.3 129.5 128.9 126.5 125.3 126.3 128.1 131.5 130.5 137.5 142.0 139.4 Ordnance, private and Govt............ 3.69 86.0 85.9 85.5 84.5 84.6 87.4 88.2 87.5 87.9 87.8 86.4 85.6 87.2 87.5 Lumber, clay, and glass......................... 4.44 120.0 119.4 126.4 127.3 130.9 124.5 115.4 115.3 123.2 127.2 130.9 132.8 135.2 129.4 Lumber and products....................... 1.65 122.4 120.7 126.1 129.0 133.0 124.8 111.9 115.6 128.4 130.5 131.3 128.6 132.4 125.9 Clay, glass, and stone products___ 2.79 118.6 118.6 126.5 126.3 129.7 124.3 117.5 115.1 120.1 125.3 130.7 135.3 136.9 131.5 2.90 122.7 114.5 127.5 131.0 131.1 131.3 127.6 126.1 134.3 133.9 132.4 132.5 137.5 125.3 Furniture and fixtures....................... 1.38 113.5 100.4 115.7 117.9 118.8 122.1 121.5 121.6 128.7 127.3 124.2 123.0 125.6 111.8 Miscellaneous manufactures............ 1.52 131.1 127.3 138.2 142.9 142.2 139.6 133.2 130.2 139.4 139.9 139.9 141.2 148.4 137.7 Nondurable manufactures Textiles, apparel, and leather............... 6.90 108.1 95.8 114.1 115.2 115.3 112.0 103.9 106.4 115.4 118.2 116.9 113.8 119.8 101.1 2.69 117.4 103.3 125.2 123.9 125.7 125.1 117.0 117.8 126.1 129.6 128.7 129.1 133.7 110.7 Apparel products................................ 3.33 105.7 94.3 111.1 114.3 113.0 108.2 98.7 103.9 113.7 116.3 115.6 110.0 117.2 Leather and products........................ .88 88.9 78.1 91.3 92.0 92.1 86.5 83.3 80.6 88.7 89.9 85.8 81.3 87.1 73.3 Paper and printing.................................. 7.92 116.1 113.3 121.1 122.5 126.3 122.3 113.8 113.2 118.7 120.4 121.4 122.8 125.7 121.4 Paper and products........................... 3.18 128.2 119.9 130.2 128.4 137.9 133.7 123.6 130.2 137.5 138.9 137.6 138.5 138.4 128.6 Printing and publishing..................... 4.74 107.9 108.8 114.9 118.6 118.5 114.7 107.3 101.7 106.0 107.9 110.6 112.2 117.1 116.6 Chemicals, petroleum, and rubber........ 11.92 137.8 134.5 140.3 145.9 145.6 143.0 140.3 141.1 144.8 145.6 147.6 150.6 153.6 146.7 Chemicals and products................... 7.86 139.6 138.5 142.4 148.6 146.8 143.2 139.5 140.5 143.8 145.0 148.8 152.2 155.1 149.6 Petroleum products........................... 1.80 120.6 124.1 126.0 126.0 125.8 124.3 125.2 123.9 120.9 119.5 121.3 127.0 132.6 131.7 Rubber and plastics products.......... 2.26 145.5 129.0 144.6 152.5 157.2 157.0 155.0 156.8 167.3 168.3 164.4 164.0 165.1 148.5 Foods and tobacco.................................. 9.48 117.6 115.2 123.0 127.7 126.4 120.5 113.8 114.9 117.4 118.1 117.1 120.0 123.8 119.7 Foods.................................................... 8.81 118.6 117.4 123.5 129.1 126.9 121.0 115.9 115.4 117.7 118.1 117.8 120.7 124.4 121.4 Tobacco products............................... .67 103.7 86.3 116.7 109.4 120.4 113.4 86.0 107.7 113.5 118.3 108.0 110.1 115.6 Mining Metal, stone, and earth minerals.......... 1.26 107.3 104.7 112.1 116.9 114.4 110.8 108.7 103.4 105.7 109.0 116.4 125.7 125.3 120.1 Metal mining....................................... .51 120.9 116.7 128.4 133.5 123.2 115.0 115.0 114.0 120.6 118.7 127.2 143.4 144.0 135.0 Stone and earth minerals................. .75 98.1 96.6 100.9 105.6 108.5 107.9 104.4 96.2 95.5 102.4 109.0 113.6 112.6 109.9 Coal, oil, and gas.................................... 5.11 109.2 106.7 109.4 110.4 110.5 110.5 109.3 107.9 110.1 107.2 106.5 107.0 107.7 106.4 Coal....................................................... .69 104.2 89.3 104.2 107.9 107.8 104.9 98.0 98.0 104.2 104.3 101.7 102.9 101.7 89.6 Oil and gas extraction....................... 4.42 110.0 109.4 110.2 110.8 110.9 111.4 111.1 109.5 111.0 107.6 107.2 107.7 108.7 109.0 Utilities Electric...................................................... 3.91 149.4 156.5 166.0 165.4 152.0 145.3 151.6 165.1 158.5 153.8 145.4 144.6 157.5 166.6 1.17 123.4 i * 1 Note.—Pages A-5 8 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 □ SEPTEMBER 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices * facturing 2 In­ Ca­ Market dustry pacity Con­ N ri o c n u a l­ g­ Period Total Products i u n t t i m i o l n i f z g a . ­ st t r io u n c­ t e u m ra ­ l T re o t t a a i l l Whole­ 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 g u u r­ ­ o = ( u 1 1 9 tp 0 6 u 0 7 ) t tr c a o c n ts ­ T m p o e lo t n a y t l — ­ i p m E lo m en y ­ t ­ P ro a l y ls ­ sales3 s C um on e ­ r m c s o o a d m le it ­ y Total sumerEquip­ goods ment 195 4 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 87.6 195 5 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 87.8 195 6 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 90.7 195 7 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 93.3 195 8 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 94.6 195 9 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 94.8 196 0 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 94.9 196 1 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 94.5 196 2 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 94.8 196 3 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 94.5 196 4 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 94.7 196 5 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 96.6 196 6 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 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 197 0 106.7 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93.9 116.3 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1972—July. . 115.1 113.3 111.6 123.3 95.3 119.8 117.8 114.3 1 155.0 110.4 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 j 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 J 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 r131.8 r105.7 r130.5 r128.3 124.9 \ '83.4 173.0 114.4 101.7 144.9 160 131.5 133.4 June.. '125.6 r123.3 121.2 r131.8 r106.3 '131.1 '129.1 '125.7 J 183.0 '114.7 '102.1 145.3 157 132.4 136.7 July.. M26.5 124.1 '122.1 r132.3 '107.8 r 131.5 '130.6 '126.2 '114.7 '101.8 '146.6 163 132.7 134.9 Aug.P 126.2 123.4 121.0 130.3 108.1 132.5 130.9 125.7 115.1 101.8 147.3 163 142.7 ‘ 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Dept, of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. Latest figure is final. value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Note.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1973 Type of ownership and 1971 1972 type of construction 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 '2,230 2,121 '2,195 '2,281 '2,366 '2,318 '2,226 '2,399 '2,233 '2,209 '2,129 '1,939 '1,838 '2,030 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly some totals are not strictly comparable with those prior to 1968. To im­ data exceed annual totals because adjustments—negative—are made in prove comparability, earlier levels may be raised by approximately 3 per accumulated monthly data after original figures have been published. cent for total and private construction, in each case, and by 8 per cent for Private housing units authorized are Census Bureau series for 14,000 residential building. reporting areas with local building permit systems; 1971 data are for 13,000 reporting areas. Note.—Dollar value of construction contracts as reported by the F. W. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d C v e o a v n & t e i s l o e o n r p ­ ­ Other 2 Total Indus­ Com­ b O u t i h l e d r ­ Other ment trial mercial ings l 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 4,822 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 4,832 197 1 109,238 79,367 43,268 36,099 5,423 11,619 5,437 13,620 29,871 901 10,658 2,095 4,820 197 2 123,836 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—Aug. 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. 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.. 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. 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. 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.r 135,455 101,753 59,112 42,641 5,292 15,001 6,002 16,346 33,702 1,221 1,999 Feb.1 136,104 103,816 61,219 42,597 5,180 14,873 6,145 16,399 32,288 1,422 1,712 Mar. 138,055 104,426 61,240 43,186 5,479 15,071 6,179 16,457 33,629 1,303 2,490 Apr. 135,851 103,291 59,851 43,440 5,287 15,473 6,282 16,398 32,560 1,158 1,675 May 136,928 104,579 59,849 44,730 5,338 16,118 6,251 17,023 32,349 1,277 2,291 June 136,231 105,286 60,036 45,250 5,928 15,704 6.383 17,235 30,945 1,135 1,870 Julyr 138,553 106,619 60,084 46,535 6,108 16,259 6,568 17,600 31,934 1,375 1,679 Aug. 139,158 107,106 60,098 47,008 18,072 32,052 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data; monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R.) Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 196 3 . 1,603 261 328 591 430 1,012 5!89 1,635 1,603 32 292 221 71 151 196 4 . 1,529 254 340 578 357 970 108 450 1,561 1,529 32 264 205 59 191 196 5 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 196 6 1,165 206 288 472 198 778 61 325 1,196 1,165 31 195 158 37 217 196 7 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 196 8 1,508 227 369 618 294 900 81 527 1,546 1,508 38 283 227 56 318 196 9 1,467 206 349 588 324 814 85 571 1,500 1,467 33 284 233 51 413 197 0 1,434 218 294 612 310 813 85 536 1,469 1,434 35 482 421 61 401 197 1 2,052 264 434 869 486 1,151 120 781 2,084 2,052 32 621 528 93 497 197 2 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 22 475 371 104 576 1972—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. 2,123 292 387 809 554 1,202 131 790 205 205 27 18 9 62 May 2,413 267 595 999 552 1,271 162 980 234 234 29 18 11 57 June 2,093 344 468 837 444 1,117 128 848 200 200 27 19 8 57 July. 2,176 221 486 1,067 402 1,249 148 779 201 201 1 8 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT □ SEPTEMBER 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T o ( s o N t p t i a u t .S u l l t a . n A i t o o i . o n ) n n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e . r l ) Total Total E In m c n u p o lt l n u o a r y a g e l r d i 1 ­ In U pl n o e y m ed ­ U (p n e e m r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ 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—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 Aug.................. 148,565 56,129 90,958 88,651 84,434 80,991 3,443 4,217 4.8 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ T ti li o r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1967............................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969............................................................... 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 1970............................................................... 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971............................................................... 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 1972............................................................... 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 SEASONALLY ADJUSTED 1972—Aug................................................... 73,016 18,975 603 3,544 4,487 15,762 3,940 12,382 13,323 Sept.................................................. 73,268 19,069 606 3,551 4,507 15,794 3,953 12,403 13,385 Oct.................................................... 73,584 19,210 608 3,561 4,540 15,839 3,969 12,451 13,406 Nov.................................................. 73,835 19,312 608 3,524 4,549 15,911 3,981 12,497 13,453 Dec................................................... 74,002 19,402 607 3,459 4,558 15,946 3,991 12,537 13,502 1973—Jan.................................................... 74,252 19,463 610 3,498 4,574 16,013 3,995 12,621 13,478 Feb.................................................... 74,715 19,586 612 3,594 4,580 16,114 4,014 12,682 13,533 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.................................................. 75,526 19,856 629 3,654 4,597 16,262 4,049 12,820 13,659 July**................................................ 75,515 19,798 631 3,679 4,599 16,273 4,047 12,831 13,657 Aug.p................................................ 75,807 19,811 633 3,688 4,614 16,346 4,066 12,921 13,728 NOT SEASONALLY ADJUSTED 1972—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 19,586 603 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.................................................. 76,308 20,002 642 3,837 4,661 16,335 4,089 12,999 13,743 Julyp................................................ 75,404 19,724 644 3,933 4,654 16,241 4,112 12,985 13,111 Aug.p............................................... 75,743 19,969 647 3,994 4,656 16,273 4,123 13,024 13,057 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

SEPTEMBER 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 Aug. June July p Aug.^ Aug. June July^ Aug.^ 13,884 14,614 14,564 14,564 14,023 14,739 14,460 14,686 7,972 8,573 8,560 8,587 7,953 8,665 8,508 8,557 Ordnance and accessories.......................................... 97 98 99 98 97 98 98 98 Lumber and wood products...................................... 529 542 540 542 547 561 556 561 Furniture and fixtures................................................. 411 436 432 434 415 436 422 437 Stone, clay, and glass products................................ 530 555 557 555 545 569 568 571 Primary metal industries............................................ 992 1,052 1,050 1,061 991 1,074 1,063 1,060 Fabricated metal products........................................ 1,056 1,126 1,127 1,127 1,053 1,136 1,109 1,124 Machinery..................................................................... 1,246 1,380 1.377 1,401 1,227 1,391 1,367 1,380 Electrical equipment and supplies........................... 1,240 1,389 1,393 1,380 1,238 1,389 1,373 1,377 1,260 1,348 1,339 1,344 1,217 1,360 1,316 1,294 Instruments and related products........................... 279 306 305 307 280 307 304 308 Miscellaneous manufacturing industries................ 332 344 341 338 343 344 333 349 Nondurable goods................................................................. 5,912 6,041 6,004 5,977 6,070 6,074 5,952 6,129 Food and kindred products...................................... 1,168 1,165 1,160 1,129 1.290 1,156 1,189 1,246 Tobacco manufactures............................................... 57 63 63 59 64 56 55 66 Textile-mill products................................................... 874 900 900 893 877 911 886 896 Apparel and related products................................... 1,164 1.175 1.139 1.158 1,173 1,187 1,093 1,166 Paper and allied products.......................................... 540 557 556 558 545 565 556 563 Printing, publishing, and allied industries............. 657 664 662 657 654 663 658 655 Chemicals and allied products.................................. 580 599 605 603 584 605 607 608 Petroleum refining and related industries............... 117 118 118 118 121 121 122 122 492 544 546 550 494 547 538 551 263 257 255 252 269 263 248 258 i 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 Aug. June JulyP Aug.*1 Aug. June Julyp Aug.'’ Aug. June July*1 Aug.p Total.......................................................................... 40.6 40.6 40.8 40.6 154.28 165.24 165.24 165.24 3.80 4.04 4.07 4.07 Durable goods.......................................................... 41.3 41.4 41.5 41.4 166.04 179.31 177.98 178.40 4.04 4.30 4.32 4.33 Ordnance and accessories............................. 42.6 41.9 42.5 41.8 174.66 177.66 179.76 179.74 4.10 4.22 4.28 4.30 Lumber and wood products........................ 41.2 40.9 40.7 41.0 137.86 149.82 146.16 149.14 3.33 3.61 3.60 3.62 Furniture and fixtures.................................... 40.5 40.1 40.0 39.5 126.28 131.30 129.10 131.20 3.08 3.25 3.26 3.28 Stone, clay, and glass products................... 41.9 42.2 42.3 42.0 167.90 177.64 178.93 178.50 3.96 4.17 4.21 4.20 Primary metal industries.............................. 41.6 41.9 42.4 42.4 194.64 209.81 211.92 216.58 4.69 4.96 5.01 5.12 Fabricated metal products........................... 41.2 41.5 41.5 41.3 164.79 178.08 175.11 175.12 3.99 4.24 4.24 4.23 Machinery........................................................ 42.2 42.5 42.3 42.5 178.07 191.70 188.52 190.71 4.26 4.50 4.51 4.53 Electrical equipment and supplies.............. 40.5 > 40.1 40.1 40.0 149.04 154.35 152.86 156.00 3.68 3.83 3.86 3.90 Transportation equipment........................... 41.4 41.9 42.4 42.3 190.28 214.63 213.03 208.98 4.71 5.05 5.06 5.06 Instruments and related products............... 40.6 40.5 40.8 40.5 149.88 155.90 156.35 155.96 3.71 3.84 3.87 3.87 Miscellaneous manufacturing industries... 39.4 38.9 38.9 38.7 122.36 127.53 125.57 127.20 3.08 3.27 3.27 3.27 Nondurable goods.................................................... 39.7 39.6 39.6 39.4 138.80 145.67 146.89 146.89 3.47 3.66 3.70 3.70 Food and kindred products......................... 40.3 40.1 40.3 40.4 146.01 153.95 155.47 157.44 3.57 3.82 3.82 3.84 Tobacco manufactures.................................. 37.8 37.8 37.8 39.7 129.79 150.14 150.78 150.32 3.38 3.91 4.01 3.73 Textile-mill products...................................... 41.3 40.8 41.0 40.7 113.02 119.48 117.62 119.14 2.73 2.90 2.89 2.92 Apparel and related products..................... 36.0 36.0 35.9 35.5 94.74 99.28 98.64 99.52 2.61 2.75 2.74 2.78 Paper and allied products............................. 43.0 42.7 42.6 42.4 171.50 178.05 180.20 181.05 3.97 4.16 4.23 4.25 Printing, publishing, and allied industries. 37.9 37.8 37.7 37.6 171.07 177.37 177.66 178.04 4.49 4.68 4.70 4.71 Chemicals and allied products.................... 41.8 42.0 42.0 42.2 175.55 187.77 187.26 188.13 4.23 4.46 4.48 4.49 Petroleum refining and related industries . 41.8 41.7 42.4 42.5 207.48 220.08 226.61 225.46 4.94 5.24 5.27 5.28 Rubber and misc. plastic products............. 41.3 40.7 40.9 40.6 150.28 153.38 155.09 154.66 3.63 3.75 3.82 3.80 Leather and leather products....................... 38.9 38.1 38.0 38.1 105.03 108.36 107.42 107.06 2.70 2.80 2.79 2.81 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 □ SEPTEMBER 1973 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h m n ip e e r - ­ F c a o o u n i a e d l l l t e r G a i l n c e a i c d s t ­ y o n F i p a n i n u e s g h d r r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ s r tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55*. 1 62!4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79! 1 90! 1 87‘.3 87‘.8 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1972—July................. 125.5 124.2 129.5 f119.2 140.7 117.7 120.3 121.1 121.1 120.3 126.3 132.7 120.0 123.0 125.8 Aug................. 125.7 124.6 129.9 fl19.6 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 Sept................ 126.2 124.8 130.1 119.9 141.5 118.0 120.5 121.6 123.1 121.0 126.8 133.1 120.5 123.7 126.2 Oct.................. 126.6 124.9 130.4 120.3 141.8 118.1 120.9 121.8 124.3 121.2 127.2 133.9 120.8 124.0 126.4 Nov................ 126.9 125.4 130.8 120.5 142.0 119.3 122.2 122.1 125.0 121.4 127.4 134.1 121.0 124.1 126.4 Dec................. 127.3 126.0 131.2 121.0 142.6 119.4 122.5 122.3 125.0 121.3 127.5 134.4 121.5 124.0 126.5 1973—Jan.................. 127.7 128.6 131.4 121.5 142.6 120.7 124.1 122.2 123.0 121.0 127.8 134.9 121.8 124.1 126.7 Feb................. 128.6 131.1 132.0 122.1 142.9 127.2 124.5 122.6 123.6 121.1 128.1 135.3 122.4 124.3 127.1 Mar................ 129.8 134.5 132.3 122.6 143.2 127.8 125.0 123.0 124.8 121.5 128.6 135.8 123.1 124.5 127.6 Apr................. 130.7 136.5 132.8 123.0 143.6 128.3 125.5 123.6 125.8 122.6 129.2 136.2 123.8 125.2 128.2 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 July................ 132.7 140.9 134.2 124.3 145.2 131.7 125.5 125.0 125.8 124.8 130.3 137.3 125.3 126.2 129.5 f 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 Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ c f f e P o a e s n o r e s o d d d e s ­ d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b 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 c e s, . t­ e c M a q e h n r u i a y n d i ­ p ­ ­ F t e u u t r r c e n . , i­ N t m m al o i l e n i n ­ c ­ ­ T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o 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 * ioo.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—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 1973—Jan...................... 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 128.2 114.1 115.8 Feb..................... 126.9 150.9 137.0 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 128.4 114.2 117.1 Mar.................... 129.7 160.9 141.4 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 129.0 114.5 117.9 Apr..................... 130.7 160.6 139.8 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 130.0 114.9 118.6 May................... 133.5 170.4 145.0 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 130.5 115.1 119.5 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 Aug.................... 142.7 213.3 166.2 127.4 125.2 143.0 142.9 111.0 113.1 178.8 123.3 133.7 122.3 115.9 130.0 115.1 121.0 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967= 100) 1972 1973 1972 1973 Group Group Aug. June July Aug. Aug. July Aug. Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 138.9 197.5 187.8 162.2 Pulp, paper and products, excluding Grains...................................................... 99.8 178.6 157.2 266.4 building paper and board............ 114.4 122.4 122.7 123.7 Livestock................................................. 148.1 193.8 199.3 243.3 Woodpulp............................................ 111.5 122.4 130.8 133.3 Live poultry............................................ 106.8 184.5 189.5 269.7 Wastepaper.......................................... 138.9 187.6 187.6 187.6 Plant and animal fibers........................ 120.6 177.7 186.4 228.5 Paper..................................................... 116.7 122.5 121.8 121.5 Fluid milk............................................... 122.0 133.3 133.3 143.4 Paperboard.......................................... 106.0 116.7 116.7 116.7 Eggs.......................................................... 99.3 159.4 155.2 209.6 Converted paper and paperboard... 114.3 121.5 121.5 123.2 Hay and seeds........................................ 115.9 299.9 187.4 293.6 Building paper and board........... 107.2 111.7 112.2 112.8 Other farm products............................. 134.6 148.1 151.9 150.4 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 115.3 125.9 125.5 136.2 Meat, poultry, and fish........................ 132.3 164.9 169.7 198.3 Iron and steel.................................. 128.6 135.9 135.9 136.0 Dairy products....................................... 118.6 127.5 127.1 131.3 Steelmill products.......................... 130.2 134.3 134.3 134.3 Processed fruits and vegetables.......... 120.2 127.9 127.7 129.3 Nonferrous metals......................... 116.8 135.0 135.9 137.9 Sugar and confectionery..................... 121.3 131.0 131.1 135.7 Metal containers............................ 130.9 135.7 135.6 135.5 Beverages and beverage materials. . . 118.9 121.4 121.1 121.2 Hardware......................................... 120.7 124.0 124.5 124.5 Animal fats and oils............................. 124.0 221.3 227.4 428.9 Plumbing equipment..................... 120.2 126.2 126.3 126.4 Crude vegetable oils.............................. 104.1 168.8 169.7 284.6 Heating equipment........................ 119.2 120.7 120.9 120.7 Refined vegetable oils........................... 107.5 164.8 164.8 164.8 Fabricated structural metal products 122.5 126.9 127.1 127.8 Vegetable oil end products................. 121.5 137.4 137.2 161.6 Miscellaneous metal products---- 124.7 128.7 129.1 130.9 Miscellaneous processed foods........... 113.9 119.9 123.4 128.5 Manufactured animal feeds................. 111.7 257.8 197.0 261.8 Textile products and apparel: Machinery and equipment: Cotton products.................................... 122.8 141.3 144.6 147.3 Agricultural machinery and equip... 122.8 125.4 125.5 125.5 Wool products....................................... 101.1 131.3 132.1 134.9 Construction machinery and equip. 126.1 131.3 130.9 131.4 Manmade fiber textile products.... 108.7 122.9 123.1 123.7 Metalworking machinery and equip 120.8 125.6 125.8 125.8 Apparel.................................................... 115.1 118.8 118.8 119.3 General purpose machinery and Textile housefurnishings...................... 109.9 111.5 111.5 112.2 equipment.......................................... 123.0 127.2 127.4 127.4 Miscellaneous textile products........... 121.4 126.0 124.2 124.3 Special industry machinery and equipment......................................... 124.0 130.0 130.2 131.7 Hides, skins, leather, and products: Electrical machinery and equip........ 110.6 112.7 112.7 112.7 Miscellaneous machinery................... 120.8 124.4 124.4 124.7 Hides and skins...................................... 243.0 241.6 246.3 261.6 Leather..................................................... 140.6 156.4 156.8 157.5 Footwear................................................. 126.5 129.3 129.5 129.7 Other leather products......................... 118.7 129.0 129.2 130.6 Furniture and household durables: Fuels and related products, and power: Household furniture.......................... 117.8 123.3 123.2 123.6 Commercial furniture....................... 119.8 130.6 130.6 132.2 Coal......................................................... 191.5 215.1 214.0 214.4 Floor coverings.................................. 98.8 102.7 102.7 102.7 Coke......................................................... 155.3 167.2 167.2 167.2 Household appliances....................... 107.7 107.4 107.7 109.0 Gas fuels................................................. 114.3 128.0 128.7 130.4 Home electronic equipment............. 92.4 91.6 91.6 92.0 Electric power....................................... 122.1 128.4 129.0 129.1 Other household durable goods. . . 126.8 131.0 130.8 130.8 Crude petroleum.................................... 114.7 125.3 125.8 125.8 Petroleum products, refined............... 110.7 146.6 146.1 145.9 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals.............................. 101.3 103.0 103.4 103.5 Flat glass.............................................. 122.8 122.2 117.9 117.9 Prepared paint........................................ 118.3 121.0 121.0 121.0 Concrete ingredients.......................... 128.1 131.6 131.7 131.7 Paint materials...................................... 105.2 113.0 114.9 115.7 Concrete products......................... 126.1 132.3 132.3 132.3 Drugs and pharmaceuticals................. 103.3 104.4 104.4 104.3 Structural clay products excluding Fats and oils, inedible.......................... 121.4 263.6 263.2 273.2 refractories...................................... 117.5 123.8 123.8 123.9 Agricultural chemicals and products. 92.0 95.0 96.7 95.9 Refractories......................................... 129.6 136.3 136.3 136.3 Plastic resins and materials................. 88.2 92.7 93.1 93.3 Asphalt roofing.................................. 131.2 136.6 136.3 136.3 Other chemicals and products........... 113.5 118.0 118.1 118.2 Gypsum products.............................. 116.1 124.1 122.9 122.5 Glass containers................................. 136.4 141.6 137.1 137.4 Rubber and plastic products: Other nonmetallic minerals............. 127.1 129.5 128.1 128.0 Rubber and rubber products............. 114.3 118.0 118.5 118.9 Crude rubber...................................... 98.7 112.8 115.8 118.1 Tires and tubes.................................. 109.7 110.4 110.4 110.4 Transportation equipment:l Miscellaneous rubber products---- 122.1 125.2 125.4 125.4 Plastic construction products (Dec. Motor vehicles and equipment. 118.5 118.9 119.0 119.0 1969 = 100)...................................... 93.3 93.9 93.8 94.0 Railroad equipment..................... 130.2 134.8 134.8 135.2 Unsupported plastic film and sheeting (Dec. 1970=100).............................. 98.3 101.1 100.8 100.8 Laminated sheets, high pressure (Dec. 1970=100)............................... 97.9 97.7 98.7 98.1 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition.................................... 114.5 117.5 117.6 117.8 Lumber.................................................... 164.1 214.8 209.6 210.8 Tobacco products.............................. 117.5 122.5 122.5 122.5 Millwork................................................. 130.0 147.7 148.3 148.3 Notions................................................ 111.7 114.5 113.1 113.6 Plywood.................................................. 135.9 154.9 138.0 140.1 Photographic equipment and supplies 107.0 108.4 108.5 108.5 Other wood products............................ 126.8 151.9 152.9 153.2 Other miscellaneous products.... 117.6 127.0 129.5 129.5 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 □ SEPTEMBER 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 II III IV I II 1 1 103.1 55.6 124.5 284.8| 864.2 930.3 977.11,055.51,155.21,142.41,166.51,199.2 1,212.51,272.0 101.4 57.2 120.1 278.0, 857.1 922.5 972.61,049.41,149.11,136.91,157.81,191.01,237.81,267.5 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 719.2 734.11 752.6 119.4 795.6 9.2 3.5 9.6 30.5 84.0 90.8 91.3 103.6 117.4 115.1 120.2 122.9 132.21 132.8 37.7 22.3 42.9 98.1 230.8 245.9 263.8 278.7 299.9 297.9 302.3 310.7 322.2j 330.3 Services............................................................... 30.3 20.1 28.1 62.4 221.3 j 242.7 262.6 284.9 309.2 306.2 311.6 319.0 325.0 332.6 16.2 1.4 17.9 54.1 126.0 139.0 136.3 153.2 178.3 174.7 181.5 189.4 194.5 198.2 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| 193.7 10.6 2.4 9.5 27.91 88.8 98.5\ 100.6 104.4 118.2 116.3 118.3 124.3 130.9 134.1 Structures.................................................. 5.0 .9 2.9 9.2 30. 3; 34.2j 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 86.9 Residential structures.................................. 4.0 .6 3.9 19.4 30.11 32.6 31.2 42.7 54.0 52.8 54.5; 56.9 59.0; 59.6 3.8 .5 3.7 18.6 29.5j 32.0 30.7 42.2 53.5 52.3 53.9! 56.4 58.4| 59.1 Change in business inventories............... 1.7 -1.6 4.5 6.8 7. l! 7.8 4.5 6.1 6.0 5.5 8.7 8.2 4.6 4.5 1.8 -1.4 4.0 6.0 I 6.9 7.7 ! 4,3 4.5 5.6 4.8 8.41 7'9 4.4 4.4 1.1 .4 1.3 1.8 2.5 1.9| 3.6 .8 -4.6 -5.7 -3.8 -3.5 .0 2.8 Exports............................................................... 7.0 2.4 5.9 13.8; 50.6 55.5i 62.9 66.3 73.5 69.9 74.01 79.7 89.71 97.2 5.9 2.0 4.6 12.0 48. Ii 53.6 59.3 65.5 78.1 75.6 77.7 83.2 89.7j 94.4 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! 275.3 1.3 2.0 16.9 18.4 98.8 98.8 96.2 98.1 104.4 106.7 102.3 102.7 105.5i 107.3 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 2 Other............................................................... 3.1 4.3 20.5 20.4 ’ 21.6 26.5 30.1 30.1 30.4 30.3 31.2 33 1 State and local.................................................. 7.2 6.0 7.9 19.5 100.8, 111.2 123.3 136.2 150.5 147.5 152.4 158.0 163.0 168.0 | Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 706.6 725.6; 722.5 745.4 790.7 785.6 796.7 812.3 829.3 834.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, (generally the July issue) and the Aug. adjusted totals at annual rates. For back data and explanation of series, 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1972 1973 1929 1933 1941 1950 1968 1969 1970 1971 1972 Item II III IV I Up National income.................................................... 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.61,015.01,039.4 Compensation of employees............................... 51.1 29.5 64.8 154.6 514.6 566.0 603.9 644.1 707.1 699.6 713.1 731.2 757.4 774.9 Wages and salaries........................................... 50.4 29.0 62.1 146.8 464.9 509.7 542.0 573.8 627.3 620.8 632.5 648.7 666.7 682.3 Private............................................................ 45.5 23.9 51.9 124.4 369.2 405.6 426.9 449.7 493.3 488.4 497.5 510.9 525.1 538.7 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 Government civilian.................................... 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 92.6 Employer contributions for social in­ surance ....................................................... .1 .1 2.0 4.0 24.3 27.8 29.7 33.7 39.0 38.7 39.3 40.2 47.4 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 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 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 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 88.0 91.5 98.8 104.3 109.0 10.0 1.0 17.7 42.6 87.6 84.9 74.0 85.1 98.0 94.8 98.4 106.1 119.6 130.1 1.4 .5 7.6 17.8 39.9 40.1 34.8 37.4 42.1 41.4 42.9 45.9 52.7 57.5 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 72.6 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 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 24.2 20.5 14.6 22.5 29.3 27.5 29.4 33.9 40.0 45.2 Inventory valuation adjustment.................... .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.8 -4.9 -6.9 -6.7 -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

SEPTEMBER 1973 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 II III IV I Up I 1 Gross national product........................................ 103.1 55.6 124.5 284.8 864.2 930.3 977.11,055.51,155.21,142.41,166.51,199.21,242.51,272.0 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 74.5 81.6 87.3 93.8 102.4 103.6 102.3 105.1 106.9 109.1 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 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 .7 .6 .4 1.5 -2.7 -6.1 -6.4 -3.4 -1.5 -1.0 1.6 0.2 1.1 1.9 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 .4 Equals: National income..................................... 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.61,015.01,039.4 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 98.8 104.3 109.0 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 90.9 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 96.4 107.3 108.8 110.8 Net interest paid by government and I consumers.............................................. 2.5 1.6 2.2 7.2 26.1 28.7i 31.0 31.0 32.7 32.6 32.9 33.7 34.7 36.1 Dividends................................................... 5.8 2.0 4.4 8.8 23.6 24.3i 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 96.0 227.6 688.9 750.91 808.3 863.5 939.2 926.1 943.7 976.1 996.61,019.0 Less: Personal tax and nontax payments___ 2.6 1.5 3.3 20.7 97.9 116.5 116.6 117.5 142.2 140.7 142.8 147.4 145.1 149.3 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 591.0 634.4 691.7 746.0 797.0 785.4 800.9 828.7 851.5 869.7 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 551.2 596.2I 635.5 685.8 747.2 739.5 755.1 774.3 801.5 818.7 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5| 719.2 734.1 752.6 779.4 795.6 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 eigners................................................ .3 .2 .2 .5 .8 .9! 1.0 1.0 1.0 .9 1.0 1.1 .9 1.0 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 51.0 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.9 571.6 579.3 595.1 603.9 604.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1972 1973 Item 1971 1972 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June JulyP Total personal income............................ 863.5 939.2 935.2 944.4 951.3 967.0 977.6 983.6 989.1 997.4 1,003.31,011.61,018.71,026.61,033.9 Wage and salary disbursements........... 573.3 627.8 627.0 632.6 638.7 643.8 648.4 654.0 661.7 667.2 671.1 677.6 682.0 688.2 692.9 Commodity-producing industries. . 206.3 226.0 224.4 227.4 230.1 232.8 235.0 236.8 239.2 242.2 243.5 245.9 248.3 251.7 253.5 Manufacturing only........................ 160.5 175.9 174.9 177.0 179.3 181.6 183.8 185.6 187.1 189.6 190.6 192.9 194.7 197.0 198.2 Distributive industries....................... 138.3 151.5 151.6 152.4 153.6 155.2 155.6 157.2 158.7 159.3 160.6 162.2 163.2 164.5 165.3 Service industries................................ 104.7 116.1 117.2 117.6 118.8 119.2 119.8 121.3 122.9 124.1 124.9 126.4 126.8 127.7 129.0 Government......................................... 123.9 134.2 133.8 135.1 136.2 136.7 138.1 138.7 140.9 141.6 142.2 143.1 143.7 144.4 145.0 Other labor income................................ 36.6 40.7 40.9 41.3 41.6 42.0 42.3 42.7 43.0 43.3 43.6 43.9 44.2 44.5 44.8 Proprietors’ income................................ 68.7 74.2 73.3 74.3 74.6 75.9 77.5 77.9 80.1 80.6 81.0 81.0 81.5 81.9 82. 1 Business and professional................. 51.9 54.0 54.0 54.5 54.3 55.1 55.1 55.6 56.1 56.3 56.4 56.8 57.1 57.3 57.6 Farm..................................................... 16.8 20.2 19.3 19.8 20.3 20.8 22.4 22.3 24.0 24.3 24.6 24.2 24.4 24.6 24.5 Rental income......................................... 24.5 24.1 24.4 25.2 25.1 25.1 24.7 24.9 24.8 24.8 24.6 24.3 24.6 24.9 25.0 Dividends................................................. 25.1 26.0 26.1 26.3 26.2 26.3 26.3 26.5 26.8 26.9 27.0 27.3 27.3 27.4 27.6 Personal interest income....................... 73.0 78.0 78.3 78.5 78.9 79.6 80.4 81.1 81.9 82.6 83.4 84.5 85.7 86.5 87.6 Transfer payments.................................. 93.2 103.0 100.6 101.3 101.4 109.7 113.7 112.6 112.5 113.8 114.5 115.3 115.9 116.0 117.2 Less: Personal contributions for social insurance.......................................... 30.9 34.7 35.4 35.0 35.2 35.4 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 Nonagricultural income.......................... 839.8 911.5 908.6 917.3 923.6 938.8 947.7 953.6 957.4 965.3 970.9 979.5 986.4 994.21,001.4 Agricultural income................................ 23.7 27.7 26.6 27.1 27.7 28.2 29.9 30.0 31.8 32.1 32.4 32.0 32.2 32.4 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

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR THE YEAR 1972 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest of U.S. All State the Govt. Mone­ Pvt. sectors Discrep­ Natl, Sector House­ Busi­ and local Total world Total credit tary Coml. nonbank ancy savings holds ness govts. agencies auth. banking finance and invest­ Transaction ment category U S U U S U S 1 Gross saving...................... 191.2 102.3 299.4 8.4 -19.1 9.1 3.7 5.2 297 2 Capital consumption. . 105.9 . 87.6 193.4 2.7 1.3 1.4 . 196. 3 Net saving (1-2)........... 85.3 14.8 5.9 105.9 8.4 6.4 2.4 3.8 101. Gross investment (5 + 10)........... 206.4 87.4 . 291.9 20.1 11.4 5.1 6.0 294.6 Private capital expenditures. ... 157.8 . 133.3 . 291.1 . 4.6 . 2.5 . 2.1 . 295.7 . Consumer durables................ 117.4 . 117.4 . 117.4 . Residential construction.... 34.3 . 19.3 . 53.6 . .4 . .4 54.0 . Plant and equipment............. 6.1 . 108.0 . 114.0 . 4.2 . 1.7 . 118.2 . Inventory change.................... 6.0 . 6.0 . 6.0 . 10 Net financial investment (11-12). 48.6 46.0 -1.8 . .8 . 11.4 20.1 6.8 . .1 .1 2.6 3.9 -1.1 11 Financial uses 117.5 33.2 11.0 161.7 19.4 .9 191.4 6.6 2.1 78.3 . 104.5 373.4 12 Financial sources. 68.9 79.1 7.9 6.5 2.0 75.6 374.5 13 Gold, SDR’s, and official fgn. exchange .6 -.2 -.4 . -.4 14 Treasury currency and SDR ctfs.......... .7 . 15 Demand deposits and currency............... 12.8 . 1.8 . 14.8 . 1.9 20.4 4.0 16.4 1.8 . 17.2 20. 16 Private domestic..................................... 12.8 , 1.8 . 14.8 . 1.9 18.4 4.4 14.0 1.8 . 16.7 18. 17 U.S. Government.................................... .4 -.3 .7 -1.0 18 Foreign..................................................... 1.5 -.1 1.6 1.5 1. 19 Time and savings accounts....................... 75.8 . 3.1 6.8 . 85.7 . 2.6 . 42.3 .3 46.4 88.7 20 At commercial banks............................. 29.8 . 3.1 6.8 . 39.7 . 2.6 42.3 42.3 -.1 ....... 42.3 21 At savings institutions........................... 46.0 . 46.0 . 46.4 .4 46.4 46.4 22 Life insurance reserves 7.3 . .1 7.2 7.2 7.3 23 Pension fund reserves......... 20.7 . 3.2 17.6 17.6 20.7 24 Interbank items.................... 2.0 .4 3.0 2.0 25 Corporate shares................. -5.9 . 10.4 .1 12.0 12.0 26 Credit market instruments..................... 8.9 4.6 59.5 2.0 12.3 15.4 135.0 8.4 3.8 2.3 17.3 156.4 26.4 6.0 69.7 4.3 80.5 182.5 182. 27 U.S. Government securities............... 4.4 . -2.4 2.1 . . 4.1 8.4 . . * 17.4 11.1 6.2 -1.4 6.5 5.7 . 23.6 23 28 State and local obligations................. 1.3 . 1.0....... -.2 11.9 2.1 11.9 9.8 . 6.3 . 3.5 . 11.9 29 Corporate and foreign bonds............ 4.9 . .... 12.2 4.9 12.2 15.2 6.9 1.7 13.5 20.1 30 Home mortgages................................. -2.2 38.4 .... 1.2 -2.2 39. -.6 -.1 43.5 1.2 4.3 . 9.0 . 30.2 40.7 31 Other mortgages.................................. .2 1.4 .... 26.2 27.6 .4....... 27.6 .5 2.4 . 7.8 . 17.4 28.1 32 Consumer credit.................................. 19.2 2. 6 19.2 16.5 . 10.1 . 6.4 . 19.2 33 Bank loans n.e.c................................... 2.9 .... 16.5 19.4 2.4 28.5 6.8 28.5 5.9 28.5 34 Other loans........................................... 1 3.3 3.4 5.0 .4 4.2 4.9 -.2 3.8 2.5 10.4 35 Security credit......................................... . 1 4. 8.7 4.8 . 4.1 8.9 8, 36 To brokers and dealers................... . 1 3.9 3.9 . 4.1 4.1 4 37 To others............................................. . 4. 4.8 . 4.8 4. 38 Taxes payable. .6 .5 .... 1.0 39 Trade credit... 19.8 13.4 14.5 -.8 -. 20.0 14. 40 Equity in noncorporate business........ -5.0 . -5.0 -5. 41 Miscellaneous claims............................ 2.7 5 5.6 .1 6.0 16.2 3.1 9.3 2.3 17.5 20. 42 Sector discrepancies (1-4)............................ -15.2....... 15.0 . 1.0 . -2.3 -1.5....... -.8 . 3.0 . 5.1 A 70 FLOW OF FUNDS □ SEPTEMBER 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FLOW OF FUNDS □ SEPTEMBER 1973 A 71.1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1972 1973? Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 HI H2 HI Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................... 67.7 82.2 94.6 91.4 97.5 146.7 166.1 134.7 158.7 144.8 187.6 191.0 1 2 Excluding equities..................................................... 66.9 80.0 95.9 88.0 92.6 135.0 156.1 123.8 146.1 134.4 178.1 183.1 2 3 U.S. Government............................................................ 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 22.7 28.4 12.4 22.2 15.4 3 4 Public debt securities.................................................. 2.3 8.9 10.3 -1.3 12.9 26.0 13.9 24.2 27.8 10.5 17.2 14.1 4 5 Budget agency issues.................................................. 1.3 4.1 3.1 -2.4 -.1 -.5 3.4 -1.6 .5 1.9 4.9 1.3 5 6 All other nonfinancial sectors........................................ 64.1 69.2 81.2 95.0 84.7 121.2 148.8 112.0 130.4 132.4 165.5 175.6 6 7 Corporate equity shares............................................. .8 2.2 -1.4 3.4 4.9 11.7 10.0 10.9 12.6 10.4 9.5 7.9 7 8 Debt instruments................................................... 63.3 67.0 82.6 91.6 79.8 109.5 138.8 101.1 117.8 122.0 155.9 167.7 8 9 Debt capital instruments........................................... 38.9 45.7 50.6 50.6 57.7 83.2 92.4 79.5 86.9 87.3 97.6 86.8 9 10 State and local government securities............. 5.6 7.8 9.5 9.9 11.3 16.6 11.9 17.9 15.4 12.0 11.9 7.3 10 11 Corporate and foreign bonds.......................... 11.0 15.9 14.0 13.0 20.6 19.7 13.2 22.3 17.2 14.4 12.0 8.2 11 12 Mortgages............................................................. 22.3 22.0 27.1 27.7 25.7 46.8 67.3 39.3 54.3 60.9 73.7 71.4 12 13 Home mortgages.............................................. 11.7 11.5 15.1 15.7 12.8 26.0 39.7 20.6 57.5 35.6 43.7 41.6 13 14 Other residential.............................................. 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.5 9.1 9.1 11.5 12.2 14 15 Commercial....................................................... 5.7 4.7 6.4 5.3 5.3 10.0 14.8 8.5 11.5 13.5 16.0 14.6 15 16 Farm.................................................................. 1.8 2.3 2.2 1.9 1.8 2.0 2.6 1.7 2.3 2.7 2.5 2.9 16 17 Other private credit..................................................... 24.4 21.3 32.0 41.0 22.1 26.3 46.4 21.1 30.9 34.7 58.4 80.9 17 18 Bank loans n.e.c.................................................. 10.7 9.5 13.1 15.3 6.4 9.3 21.8 5.1 13.5 14.2 29.7 52.5 18 19 Consumer credit.................................................. 6.4 4.5 10.0 10.4 6.0 11.2 19.2 8.9 13.6 15.8 22.5 24.7 19 20 Open-market paper............................................ 1.0 2.1 1.6 3.3 3.8 -.9 -1.6 -1.0 -.8 -.3 -2.8 -4.3 20 21 Other..................................................................... 6.2 5.1 7.2 12.0 5.9 6.6 7.0 8.7 4.6 5.0 9.0 8.0 21 22 By borrowing sector......................................................... 64.1 69.2 81.2 95.0 84.7 121.2 148.8 112.0 130.4 132.4 165.5 175.6 22 23 Debt instruments....................................................... 63.3 67.0 82.6 91.6 79.8 109.5 138.8 101.1 117.8 122.0 155.9 167.7 23 24 Foreign.......................................................................... 1.6 4.0 2.9 2.9 3.0 5.7 3.8 5.3 6.1 3.4 4.3 10.7 24 25 State and local governments..................................... 6.3 7.9 9.8 10.7 11.4 17.0 12.3 17.9 16.1 11.9 12.7 7.3 25 26 Households................................................................... 22.6 19.0 29.6 32.2 22.9 38.3 63.2 30.0 46.6 55.6 70.8 71.2 26 27 Nonfinancial business................................................ 32.8 36.0 40.2 45.9 42.5 48.5 59.5 47.9 49.0 51.1 68.2 78.5 27 28 Farm........................................................................... 3.1 3.6 2.8 3.2 3.2 4.1 4.9 4.0 4.2 4.4 5.3 5.7 28 29 Nonfarm noncorporate............................................ 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 8.1 9.5 11.6 13.1 29 30 Corporate.................................................................. 24.3 27.4 31.8 35.4 33.9 35.7 44.2 34.6 36.8 37.2 51.2 59.7 30 31 Corporate equities....................................................... .8 2.2 -1.4 3.4 4.9 11.7 10.0 10.9 12.6 10.4 9.5 1.9 31 32 Foreign...................................................................... -.3 .1 .2 .5 .1 * -.4 .4 -.3 -.2 —. 6 -.9 32 33 Nonfinancial corporations.................................... 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 33 Totals incuding equities 34 Foreign...................................................................... 1.3 4.0 3.1 3.3 3.0 5.7 3.4 5.7 5.8 3.2 3.7 9.8 34 35 Nonfinancial business............................................ 33.9 38.2 38.7 48.8 47.3 60.2 69.9 58.4 61.9 61.8 78.3 87.2 35 36 Corporate............................................................. 25.4 29.6 30.3 38.3 38.8 47.4 54.6 45.1 49.7 47.9 61.3 68.4 36 37 Memo: U.S. Govt, cash balance totals net of changes in U.S............................................................. -.4 1.2 -1.1 .4 2.8 3.2 .5 -.2 6.6 -3.0 4.0 3.8 37 38 Total funds raised........................................................... 68.1 81.1 95.7 91.0 94.7 143.5 165.6 134.9 152.1 147.8 183.6 187.1 38 39 By U.S. Government................................................. 4.0 11.8 14.5 -4.0 10.0 22.3 16.8 22.9 21.7 15.4 18.1 11.6 39 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1.......................................... 190.6 188.1 207.6 226.7 224.2 252.5 291.1 246.3 258.7 279.9 302.3 324.0 1 2 Capital consumption 2............................................... 118.5 128.4 140.4 154.3 166.0 179.0 193.4 175.8 182.2 190.3 196.6 205.7 2 3 Net physical investment............................................ 72.2 59.7 67.2 72.4 58.2 73.5 97.7 70.5 76.6 89.7 105.7 118.3 3 4 Net funds raised.......................................................... 56.5 57.3 68.3 81.0 70.2 98.5 133.1 88.4 108.5 117.4 149.1 158.5 4 5 Excess net investment 3.............................................. 15.7 2.4 -1.1 -8.6 -12.0 -25.0 -35.4 -17.9 -32.0 -27.7 -43.5 -40.2 5 Total business ; 6 Total capital outlays............................................j 96.4 93.4 97.9 108.9 108.0 116.6 133.3 115.8 117.3 127.4 139.3 145.7 6 7 Capital consumption................................................... 54.2 58.5 63.2 69.5 74.6 80.3 87.6 78.8 81.7 86.2 88.9 92.8 7 8 Net physical investment.............................................1 42.3 35.0 34.7 39.4 33.5 36.3 45.8 37.0 35.5 41.2 50.4 52.9 8 9 Net debt funds raised.................................................j 32.8 36.0 40.2 45.9 42.5 48.5 59.5 47.9 49.0 51.1 68.2 78.5 9 10 Corporate equity issues.............................................. 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 10 11 Excess net investment 3.............................................. 8.4 -3.2 -4.0 -9.4 -13.8 -23.9 -24.1 -21.4 -26.4 -20.6 -27.9 -34.3 11 Corporate business 12 Total capital outlays............................................ 76.5 71.4 75.0 83.7 84.0 86.7 100.7 86.5 87.0 96.0 105.4 108.4 12 13 Capital consumption................................................... 38.2 41.5 45.1 49.8 53.6 57.7 62.8 56.7 58.7 61.8 63.8 66.6 13 14 Net physical investment............................................. 38.3 29.9 29.9 33.9 30.4 29.1 37.8 29.8 28.3 34.1 41.5 41.8 14 15 Net debt funds raised.......................................... 24.3 27.4 31.8 35.4 33.9 35.7 44.2 34.6 36.8 37.2 51.2 59.7 15 16 Corporate equity issues.............................................. 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 16 17 Excess net investment 3.............................................. 12.9 .3 -.4 -4.4 -8.4 -18.3 -16.8 -15.3 -21.4 -13.7 -19.8 -26.7 17 Households 18 Total capital outlays............................................ 94.2 94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.3 18 19 Capital consumption.................................................. 64.3 69.9 77.2 84.8 91.4 98.7 105.9 97.0 100.4 104.1 107.7 112.9 19 20 Net physical investment............................................ 29.9 24.7 32.5 33.0 24.7 37.2 51.9 33.5 41.0 48.5 55.3 65.4 20 21 Net funds raised.......................................................... 22.6 19.0 29.6 32.2 22.9 38.3 63.2 30.0 46.6 55.6 70.8 71.2 21 22 Excess net investment 3.............................................. 7.3 5.7 2.9 .8 1.8 -1.1 -11.3 3.5 -5.6 -7.1 -15.6 -5.8 22 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 Note.—Data revised for all periods. Full statements for sectors and sponsored credit agencies are excluded as borrowing by financial institu­ transaction types are available on a quarterly basis and annually for tions. Such issues are in U.S. Government securities on p. A-71.2, line 11. flows and for amounts outstanding. Requests for these statements should Corporate share issues are net cash issues by nonfinancial and foreign be addressed to the Flow of Funds Section, Division of Research and corporations. Mortgages exclude loans in process. Open market paper is Digitized foSrt aFtiRstAicsS, EBRoa rd of Governors of the Federal Reserve System, Wash­ commercial paper issued by nonfinancial corporations plus bankers’ http://fraseirn.sgttolonu, iDs.fCe.d, .2o0r5g5/1 . acceptances. Federal Reserve Bank of St. Louis

A 71.2 FLOW OF FUNDS □ SEPTEMBER 1973 3. DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors................................................. 66.9 80.0 95.9 88.0 92.6 135.0 156.1 123.8 146.1 134.4 178.1 183.1 1 By public agencies and foreign 2 Total net advances........................................................... 11.9 11.3 12.2 15.8 28.0 41.3 16.9 38.6 44.0 19.7 14.1 43.6 3 U.S. Government securities...................................... 3.4 6.8 3.4 .9 15.7 33.4 7.3 32.9 34.0 12.7 2.0 21.4 4 Residential mortgages................................................ 2.8 2.1 2.8 4.6 5.7 5.7 5.2 4.2 7.1 6.2 4.3 4.7 5 FHLB advances to S&L’s......................................... .9 -2.5 .9 4.0 1.3 -2.7 * -5.5 .2 -2.4 2.5 7.8 6 Other loans and securities......................................... 4.8 4.9 5.1 6.3 5.2 4.9 4.3 7.1 2.7 3.2 5.4 9.7 By agency— 7 U.S. Government........................................................ 4.9 4.6 4.9 2.9 2.8 3.2 2.3 4.3 2.2 1.5 3.1 .6 8 Sponsored credit agencies......................................... 5.1 -.1 3.2 9.0 9.9 2.8 6.0 -1.4 7.0 7.5 4.5 18.9 9 Federal Reserve........................................................... 3.5 4.8 3.7 4.2 5.0 8.8 .2 8.4 9.3 4.5 -4.1 11.7 9 10 Foreign.......................................................................... -1.6 2.0 .3 -.3 10.3 26.4 8.4 27.3 25.5 6.2 10.6 12.4 10 11 Agency borrowing not in line 1................................... 4.8 -.6 3.5 8.8 8.2 4.3 6.2 .9 7.7 7.4 5.0 17.6 11 Private domestic funds advanced 12 Total net advances........................................................... 59.8 68.1 87.2 80.9 72.8 98.0 145.4 86.1 109.9 122.1 169.0 157.1 13 U.S. Government securities...................................... 5.4 5.7 13.3 4.6 5.4 -3.5 16.3 -9.2 2.1 7.1 25.3 11.7 14 Municipal securities.................................................... 5.6 7.8 9.5 9.9 11.3 16.6 11.9 17.9 15.4 12.0 11.9 7.3 15 Corporate and foreign bonds................................... 10.3 16.0 13.8 12.5 20.0 19.5 13.2 22.1 16.8 14.2 12.1 6.9 16 Residential mortgages................................................ 12.0 13.0 15.5 15.7 12.8 29.1 44.6 24.8 33.4 38.4 50.8 49.1 17 Other mortgages and loans...................................... 27.4 23.1 35.9 42.2 24.6 33.7 59.5 25.0 42.3 47.9 71.4 90.0 18 Less: FHLB advances................................................ .9 -2.5 .9 4.0 1.3 -2.7 -5.5 .2 -2.4 2.5 7.8 Private financial intermediation 19 Credit market funds advanced by private financial institutions................................................................. 45.4 63.5 75.3 54.9 74.9 111.4 150.2 112.2 110.6 130.1 170.5 172.7 19 20 Commercial banking.................................................. 17.5 35.9 38.7 18.2 35.1 50.6 69.7 53.2 48.0 56.9 82.7 87.0 20 21 Savings institutions..................................................... 7.9 15.0 15.6 14.5 16.9 41.5 48.7 45.4 37.5 48.4 48.9 49.2 21 22 Insurance and pension funds.................................... 15.5 12.9 14.0 12.3 17.3 14.1 16.0 12.5 15.7 14.1 17.8 21.6 22 23 Other finance............................................................... 4.5 -.3 7.0 9.9 5.7 5.3 15.8 1.2 9.4 10.6 21.0 14.8 23 24 Sources of funds............................................................... 45.4 63.5 75.3 54.9 74.9 111.4 150.2 112.2 110.6 130.1 170.5 172.7 24 25 Private domestic deposits.......................................... 22.5 50.0 45.9 2.6 63.2 90.8 97.8 107.7 73.9 97.2 98.6 92.9 25 26 Credit market borrowing.......................................... 3.2 -.4 8.5 19.1 -.4 9.2 20.2 2.6 15.9 16.4 24.0 37.1 26 27 Other sources............................................................... 19. 13.9 21.0 33.3 12.1 11.3 32.2 1.9 20. 16.5 47.9 42.6 27 28 Foreign funds......................................................... 3.7 2.3 2.6 9.3 -8.5 -3.2 5.1 -7.2 5.5 4.7 3.1 28 29 Treasury balances................................................. -.5 .2 -.2 2.9 2.2 .7 -.8 5.3 -3.6 5.1 -1.4 29 30 Insurance and pension reserves........................... 13.6 12.0 11.4 10.4 13.1 9.6 11.3 7.7 11.5 8.4 14.1 16.0 30 31 Other.net............................................................... 3.0 -.6 7.2 13.5 4.5 2.7 15.1 2.2 3.2 6.3 24.0 25.0 31 Private domestic nonfinancial investors 32 Direct lending in credit markets............................... 17.6 4.2 20.3 45.0 -2.4 -4.2 15.4 -23.5 15.2 8.3 22.5 21.6 33 U.S. Government securities.................................... 8.2 -1.4 8.0 16.8 -8.3 -13.0 4.1 -22.4 -3.5 -3.3 11.5 13.9 34 Municipal securities.................................................. 2.6 -2.5 -.2 8.7 -1.1 -.1 2.1 -2.7 2.6 .9 3.4 5.4 35 Corporate and foreign bonds................................. 2.1 4.6 4.7 7.4 10.1 8.2 4.9 8.6 7.7 4.5 5.2 .2 36 Commercial paper..................................................... 2.3 1.9 5.8 10.2 -4.4 -.6 3.7 -7.3 6.0 6.7 .8 1.2 37 Other.............................................................................. 2.3 1.7 2.1 2.0 1.4 1.3 .6 .3 2.3 -.4 1.7 .8 38 Deposits and currency.................................................. 24.4 52.1 48.3 5.4 66.6 94.2 102.2 110.6 77.9 102.6 102.0 99.0 39 Time and savings accounts..................................... 20.3 39.3 33.9 -2.3 56.1 81.2 85.7 92.6 69.8 88.8 82.6 92.7 40 Large negotiable CD’S........................................ -.2 4.3 3.5 -13.7 15.0 7.7 8.7 3.4 12.0 2.1 15.3 27.2 41 Other at commercial banks................................ 13.3 18.3 17.5 3.4 24.2 32.9 31.0 44.0 21.9 38.9 23.2 27.8 42 At savings institutions.......................................... 7.3 16.7 12.9 8.0 16.9 40.6 46.0 45.3 35.9 47.8 44.1 37.7 43 Money......................................................................... 4.1 12.8 14.5 7.7 10.5 13.0 16.5 17.9 8.1 13.8 19.4 6.4 43 44 Demand deposits................................................... 2.1 10.6 12.1 4.8 7.1 9.6 12.1 15.1 4.1 8.4 16.0 .3 44 45 Currency................................................................. 2.0 2.1 2.4 2.8 3.5 3.4 4.4 2.8 3.9 5.5 3.4 6.1 45 46 Total of credit market instr., deposits, and currency 42.0 56.3 68.7 50.5 64.2 90.0 117.7 87.1 93.0 111.0 124.5 120.6 46 47 Public support rate (in per cent)........................... 17.9 14.1 12.7 18.0 30.2 30.6 10.8 31.2 30.1 14.6 7.9 23.8 48 Private fin. intermediation (in per cent).............. 75.9 93.2 86.4 67.9 102.8 113.7 103.3 130.3 100.7 106.6 100.9 109.9 49 Total foreign funds................................................... 2.1 4.3 2.9 9.1 1.8 23.2 13.5 20.1 26.3 11.6 15.3 15.4 Corporate equities not included above 1 Total net issues........................................ 4.6 5.3 5.1 9.5 9.5 14.7 12.0 13.0 16.3 12.4 11.5 2 Mutual fund shares............................ 3.7 3.0 5.8 4.8 2.6 1.2 -.6 .3 2.1 -.8 -.4 3 Other equities...................................... .9 2.3 -.7 4.7 6.9 13.5 12.6 12.7 14.2 13.3 12.0 4 Acquisitions by financial institutions, 6.0 9.1 10.8 12.2 11.4 19.2 15.6 23.4 15.0 17.6 13.6 5 Other net purchases............................... 1.4 -3.8 -5.8 -2.7 -1.9 -4.6 -3.6 -10.4 1.3 -5.1 -2.1 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of page A-71.1. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3 Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.3 4. SECTOR STATEMENTS OF SAVINGS AND INVESTMENT (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Households, personal trusts, and nonprofit organizations 1 Personal income............................................................... 587.2 629.3 688.9 750.9 808.3 863.5 939.2 849.7 877.3 918.4 959.9 1007.9 1 2 Less: Personal taxes & nontaxes............................ 75.4 83.0 97.9 116.5 116.6 117.5 142.2 114.0 121.1 139.3 145.1 146.9 2 3 Equals: Disposable personal income......................... 511.9 546.3 591.0 634.4 691.7 746.0 797.0 735.7 756.2 779.1 814.8 861.0 3 4 Less: Personal outlays............................................... 479.3 506.0 551.2 596.2 635.5 685.8 747.2 674.4 697.2 729.7 764.7 809.8 4 5 Equals: Personal saving, NIA basis........................... 32.5 40.4 39.8 38.2 56.2 60.2 49.7 61.3 59.0 49.4 50.1 51.2 5 6 Plus: Credits from Govt, insur.1............................ 5.6 5.5 6.2 6.6 8.8 9.7 10.5 9.9 9.5 10.3 10.7 10.4 6 7 Capital gains dividends 2............................... 1.3 1.7 2.5 2.5 .9 .8 1.4 .6 .9 1.2 1.7 1.5 7 8 15.2 12.4 16.7 16.2 10.6 16.0 23.6 15.2 16.9 21.4 25.9 32.1 8 9 Equals: Net saving......................................................... 54.6 60.0 65.0 63.6 76.4 86.7 85.3 87.0 86.3 82.2 88.3 95.3 9 10 Plus: Capital consumption...................................... 64.3 69.9 77.2 84.8 91.4 98.7 105.9 97.0 100.4 104.1 107.7 112.9 10 11 Equals: Gross saving..................................................... 118.9 129.9 142.2 148.5 167.9 185.4 191.2 184.0 186.8 186.3 196.0 208.2 11 12 Gross investment.............. ............................................ 129.4 134.7 144.5 144.9 168.2 188.5 206.4 187.5 189.5 200.5 212.1 223.7 12 13 Capital expend, (net of sales)................................... 94.2 94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.3 13 14 Residential construction........................................ 18.9 17.0 21.1 22.0 19.6 26.8 34.3 24.0 29.7 33.3 35.3 39.4 14 15 Consumer durable goods...................................... 70.8 73.1 84.0 90.8 91.3 103.5 117.4 101.0 106.0 113.3 121.5 132.7 15 16 4.5 4.5 4.5 5.1 5.3 5.6 6.1 5.5 5.7 6.0 6.1 6.2 16 17 Net finan. investment.................................................. 35.2 40.1 34.8 27.1 52.1 52.6 48.6 57.1 48.1 47.9 49.1 45.4 17 18 Net acquis, of financial assets................................ 58.4 63.5 68.2 56.7 74.2 94.3 117.5 89.8 98.9 112.0 122.8 112.4 18 19 Deposits and credit market instruments 3........... 41.9 48.5 54.3 42.6 . 54.3 72.1 97.5 72.8 71.3 94.5 100.4 91.6 19 20 Demand deposits and currency....................... 3.9 11.2 12.3 1.5 9.5 10.9 12.8 15.5 6.3 12.5 12.9 4.5 20 21 Time and savings accounts............................... 20.5 34.8 30.3 6.0 44.4 70.5 75.8 80.8 60.1 78.3 73.4 82.2 21 22 At commercial banks..................................... 13.2 18.1 17.4 -2.0 27.5 29.8 29.8 35.5 24.2 30.5 29.2 44.5 22 23 At savings institutions................................... 7.3 16.7 12.9 8.0 16.9 40.6 46.0 45.3 35.9 47.8 44.1 37.7 23 24 Credit market instruments................................ 17.5 2.5 11.7 35.1 .5 -9.3 8.9 -23.5 5.0 3.7 14.1 4.9 24 25 7.8 1.3 5.5 12.2 -7.7 -12.7 4.4 -22.9 -2.6 1.5 7.1 1.5 25 26 State and local oblig...................................... 3.6 -2.2 -.8 9.6 -.5 -.9 1.3 -3.3 1.6 .2 2.4 4.8 26 27 Corporate and foreign bonds...................... 2.1 4.6 4.7 7.4 10.1 8.2 4.9 8.6 7.7 4.5 5.2 .2 27 28 Commercial paper.......................................... 2.7 -2.1 .7 4.8 -1.5 -3.9 .4 -5.2 -2.5 -.8 1.6 .2 28 29 1.3 .9 1.5 1.1 .1 .1 -2.0 -.7 .8 -1.8 -2.3 -1.9 29 30 Investment company shares.............................. 3.7 3.0 5.8 4.8 2.6 1.2 -.6 .3 2.1 -.8 -.4 -2.2 30 31 Other corporate shares...................................... -4.8 -7.5 -13.7 -9.0 -5.2 -6.6 -5.2 -10.9 -2.3 -6.0 -4.4 -5.2 31 32 Life insurance reserves....................................... 4.7 5.1 4.6 5.0 5.2 6.2 7.3 6.0 6.3 6.8 7.9 7.8 32 33 Pension fund reserves........................................ 14.7 14.6 15.5 15.8 19.1 22.1 20.7 22.1 22.1 19.8 21.6 23.4 33 34 Net investment in noncorp. business............. -3.2 -3.8 -2.2 -2.8 -3.6 -3.4 -5.0 -3.6 -3.2 -4.9 -5.0 -4.8 34 35 Security credit...................................................... .2 2.2 2.1 -1.8 -.9 .5 .1 .7 .3 .1 .1 -.9 35 36 Miscellaneous....................................................... 1.2 1.5 1.8 2.1 2.6 2.3 2.7 2.3 2.3 2.6 2.7 2.8 36 37 Net increase in liabilities........................................ 23.2 23.4 33.4 29.7 22.1 41.7 68.9 32.7 50.8 64.1 75.7 67.0 37 38 Credit market instruments................................ 22.6 19.0 29.6 32.2 22.9 38.3 63.2 30.0 46.6 55.6 70.8 71.2 38 39 Home mortgages............................................. 12.7 10.4 14.6 16.1 12.5 24.1 38.4 18.3 30.0 34.7 42.1 40.9 39 40 Other mortgages.............................................. 1.3 1.2 1.1 1.3 1.4 1.2 1.4 1.1 1.3 1.4 1.4 1.4 40 41 Instalment cons, credit.................................. 5.4 3.2 8.3 9.4 5.0 9.2 16.0 6.9 11.5 14.2 17.9 22.0 41 42 Other consumer credit................................... 1.0 1.4 1.7 1.0 1.1 2.0 3.1 2.0 2.0 1.6 4.6 2.7 42 43 Bank loans n.e.c.............................................. .3 1.6 2.2 1.5 .5 .4 2.9 .3 .5 2.4 3.4 2.4 43 44 Other loans 4................................................... 2.0 1.3 1.7 3.0 2.6 1.4 1.3 1.5 1.3 1.4 1.3 1.9 44 45 -.1 3.7 2.9 -3.4 -1.8 2.6 4.7 1.8 3.4 7.5 1.8 -5.2 45 46 Trade debt............................................................ .3 .4 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 46 47 Miscellaneous....................................................... .4 .3 .4 .4 .4 .3 .5 .3 .3 .5 .6 .5 47 48 Discrepancy (11-12)....................................................... -10.5 -4.8 -2.3 3.5 -.4 -3.2 -15.2 -3.5 -2.8 -14.2 -16.1 -15.5 48 Memoranda: Net physical investment: (A) Residential construction 49 Expenditures..................................................................... 18.9 17.0 21.1 22.0 19.6 26.8 34.3 24.0 29.7 33.3 35.3 39.4 49 50 Less: Capital consumption...................................... 7.4 7.8 8.3 8.7 9.0 9.4 10.2 9.3 9.5 10.3 10.1 10.4 50 51 Home mortgages.............................................. 12.7 10.4 14.6 16.1 12.5 24.1 38.4 18.3 30.0 34.7 42.1 40.9 51 52 Equals: Excess net investment.................................... -1.1 -1.2 -1.8 -2.8 -1.9 -6.7 -14.3 -3.7 -9.7 -11.7 -16.9 -11.8 52 (B) Consumer durables 53 Expenditures.................................................................... 70.8 73.1 84.0 90.8 91.3 103.5 117.4 101.0 106.0 113.3 121.5 132.7 53 54 55.6 60.7 67.4 74.6 80.7 87.5 93.8 85.8 89.1 91.9 95.7 100.5 54 55 Equals: Net investment................................................. 15.2 12.4 16.7 16.2 10.6 16.0 23.6 15.2 16.9 21.4 25.9 32.1 55 56 Less: Consumer credit.............................................. 6.4 4.5 10.0 10.4 6.0 11.2 19.2 8.9 13.6 15.8 22.5 24.7 56 57 Equals: Excess net investment.................................... 8.8 7.9 6.7 5.9 4.5 4.8 4.5 6.3 3.3 5.6 3.3 7.4 57 (C) Nonprofit plant plus equipment 58 Expenditures..................................................................... 4.5 4.5 4.5 5.1 5.3 5.6 6.1 5.5 5.7 6.0 6.1 6.2 58 59 Less: Capital consumption...................................... 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.8 1.8 1.9 2.0 2.0 59 60 Nonprofit mortgages...................................... 1.3 1.2 1.1 1.3 1.4 1.2 1.4 1.1 1.3 1.4 1.4 1.4 60 61 2.0 1.9 1.9 2.2 2.2 2.6 2.7 2.6 2.6 2.7 2.7 2.8 61 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.4 FLOW OF FUNDS □ SEPTEMBER 1973 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 Category 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Nonfinancial business—Total 1 Income before taxes 1.................................. 139.1 136.2 142.4 139.5 128.2 138.5 151.2 137.0 140.0 146.4 156.0 169.4 1 2 Gross saving.................................................. 77.1 78.3 79.9 80.4 80.3 92.4 102.3 89.4 95.5 99.0 105.3 107.8 2 3 Gross investment.......................................... 68.9 72.5 71.5 77.0 74.6 79.5 87.4 77.4 81.5 90.6 83.9 98.5 4 Capital expenditures............................. 96.4 93.4 97.9 108.9 108.0 116.6 133.3 115.8 117.3 127.4 139.3 145.7 5 Fixed investment...................................... 81.6 85.2 90.9 101.1 103.5 110.5 127.3 108.5 112.5 123.7 130.9 140.7 6 Business plant + equipment............. 75.5 77.2 82.0 90.5 92.0 94.8 108.0 93.3 96.2 105.1 110.8 121.5 7 1-4 family residential construction 2 -.7 2.0 1.1 . 1 .9 2.9 2.1 3.3 2.6 2.3 1.9 2. 1 8 Other residential................................... 6.8 6.1 7.8 10.4 10.6 12.8 17.2 11.9 13.7 16.4 18.1 17.2 9 Change in inventories............................. 14.8 8.2 7.1 7.8 4.5 6.1 6.0 7.3 4. 3.6 8.4 5.0 10 Net financial investment............................... -27.6 -21.0 -26.4 -31.9 -33.4 -37.1 -46.0 -38.4 -35.7 -36.8 -55.4 -47.2 11 Financial uses of funds, net................. 13.7 18.0 30.6 30.2 12.8 25.2 33.2 21.8 28.5 29.9 36.5 54.1 12 Financial sources of funds, net............ 41.2 39.0 57.0 62.2 46.2 62.3 79.1 60.3 64.3 66.7 91.9 101.3 13 Corporate share issues........................ 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 14 Credit market instruments................. 32.8 36.0 40.2 45.9 42.5 48.5 59.5 47.9 49.0 51. 1 68.2 78.5 15 Corporate bonds.............................. 10.2 14.7 12.9 12.0 19.8 18.8 12.2 21.2 16.4 12.6 11.8 7.5 16 Home mortgages............................. -1.0 1.1 .4 -.4 .3 1.9 1.2 2.3 1.6 .9 1.6 .7 17 Other mortgages............................... 9.3 9.4 10.9 10.8 11.6 19.5 26.2 17.6 21.5 23.9 28.5 28.4 18 Bank loans n.e.c............................... 10.8 8.2 11.2 14.4 5.9 6.3 16.5 3.5 9.2 9.9 23.4 43.2 19 Other loans........................................ 3.4 2.7 4. 9.2 4.9 1.9 3.4 3.3 .5 3.8 3.0 -1.3 20 Trade debt............................................. 10.2 9.0 17.4 18.5 5.2 3.6 13.4 .5 6.8 11.2 15.6 12.4 21 Other liabilities..................................... -2.9 -8.2 1.0 -5.2 -6.3 -1.5 -4.2 1.4 -4.5 -6.3 -2. 1 1.6 22 Discrepancy (2-3)........................................ 8.3 5.9 8.4 3.4 5.7 13.0 15.0 12.0 13.9 8.5 21.4 9.3 Farm business 4 1 New income 1................................................................... 16.1 14.8 14.7 16.7 16.9 16.8 20.2 16.8 16.9 19.7 20.8 24.9 1 2 * -.1 * * * * * -. 1 * * -. 1 -. 1 2 3 Capital consumption...................................................... 5.3 5.7 6.2 6.6 6.4 6.8 7.4 6.7 7.0 7.4 7.5 8.0 3 4 Corporate..................................................................... .2 .3 .3 .3 .4 .4 .4 .4 .4 .4 .4 .4 4 5 Noncorporate............................................................... 5.1 5.5 6.0 6.2 6.0 6.5 7.0 6.3 6.6 7.0 7. 1 7.6 5 6 Current surplus-gross saving 5.................................... 5.3 5.7 6.2 6.5 6.4 6.8 7.4 6.6 7.0 7.4 7.4 8.0 6 7 Gross investment............................................................. 5.3 5.7 6.2 6.5 6.4 6.8 7.4 6.6 7.0 7.4 7.4 8.0 7 8 Capital expenditures................................................ 5.8 7.3 6.3 6.6 7.0 8.6 8.6 8.3 8.9 7.8 9.3 9.8 8 9 Plant and equipment.................................................. 5.4 6.0 5.7 5.9 6.3 6.5 7.6 6.6 6.4 6.7 8.4 9.1 9 10 Residential construction............................................ .5 .6 .5 .6 .5 .6 . 6 .5 .6 .6 .6 .5 10 11 -.2 .7 . 1 . 1 .2 1.6 .4 .3 1.9 .5 .3 .2 11 12 Net financial investment.................................................. -.5 -1.6 -.1 -.1 -.7 -1.8 -1.2 -1.7 -1.9 -.5 -1.9 -1.8 12 13 Net increase in financial assets.................................... .2 .4 .6 .5 .6 . 7 .6 .7 .7 .6 .6 .7 13 14 Demand deposits and currency........................... . 1 .2 . 1 . 1 . I . 1 . 1 . 1 . 1 . 1 . 1 14 15 .2 .3 .4 .4 .5 .6 .5 .6 .6 .5 .5 .6 15 16 .2 .2 .3 .4 .4 .5 .4 .5 .5 .4 .4 .4 16 17 Equity in sponsored agencies 6........................ * * . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 .2 17 18 Net increase in liabilities............................................... .7 2.0 .7 .6 1.3 2.5 1.8 2.4 2.6 1.1 2.6 2.6 18 19 3.1 3.6 2.8 3.2 3.2 4. 1 4.9 4.0 4.2 4.4 5.3 5.7 19 20 1.8 2.3 2.2 1.9 1.8 2.0 2.6 1.7 2.3 2.7 2.5 2.9 20 21 Bank loans n.e.c.................................................. .9 .7 .4 .6 .8 1.3 1.8 1.2 1.5 1.1 2.5 1.9 21 22 Other loans........................................................... .4 .6 .2 .6 .6 .7 .5 1.1 .4 .6 .3 .9 22 23 U.S. Government............................................ * .2 -. 1 * -. 1 * * * . 1 -.1 .2 -.1 23 24 FICB + banks for cooperatives............... .4 .5 .2 .6 .7 .7 .4 1.1 .2 .7 .2 1.0 24 25 Trade debt................................................................ .9 .8 .3 .7 1.0 1.2 1.0 1.1 1.3 .8 1.2 .8 25 26 Proprietor net investment 8.................................. -3.3 -2.5 -2.4 -3.2 -2.9 -2.8 -4.0 -2.7 -2.9 -4.1 -4.0 -3.9 26 Nonfarm noncorporate business 1 53.8 56.4 58.9 60.0 60.3 62.6 63.7 62.2 63. 1 62.3 65. 1 66.4 1 2 Capital consumption...................................................... 10.7 11.2 11.9 13.1 14.6 15.8 17.3 15.5 16.1 17.0 17.6 18. 1 2 3 Current surplus-gross saving 5.................................... 10.7 11.2 11.9 13.1 14.5 15.8 17.5 15.5 16.1 17.0 17.6 18. I 3 4 10.7 11.2 11.9 13.1 14.5 15.8 17.5 15.5 16.1 17.0 17.6 18. 1 4 5 Capital expenditures................................................ 14.1 14.7 16.6 18.6 16.9 21.2 24.1 21.0 21.4 23.6 24.7 27.5 5 6 13.5 14.5 16.1 17.6 18.3 21.7 25.3 21.1 22.3 24.7 25.9 26.5 6 7 Plant + equipment................................................. 9.1 9.3 9.8 10.6 10.6 11.5 12.2 11.2 11.7 12.1 12.3 13.0 7 8 5.1 4.5 5.9 7.3 7.5 9.1 12.3 8.5 9.6 11.7 12.9 12.7 8 9 -.6 .7 .3 -.3 .2 1.2 .8 1.4 1.0 .9 .7 .8 9 10 Change in inventories................................................ .6 .2 .5 1.0 -1.4 -.5 -1.2 -. 1 -.9 -1.1 -1.3 1.0 JO 11 -3.5 -3.6 -4.7 -5.4 -2.4 -5.5 -6.6 -5.6 -5.3 -6.6 -7.0 -9.4 1 1 12 .8 .8 1.0 1.3 1.3 1.5 1.8 1.5 1.5 1.3 2.3 1.7 12 13 Demand deposits and currency........................... 13 14 .5 .4 .5 .6 .6 .7 1.1 .7 .7 .5 i.6 .9 14 15 .4 .4 .5 .7 .7 .8 .7 .8 .8 .7 .7 .8 15 16 4.3 4.4 5.6 6.7 3.7 6.9 8.4 7.0 6.8 7.8 9.3 11.0 16 17 Credit market instruments.................................... 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 8.1 9.5 11.6 13.1 17 18 Mortgages............................................................. 2.4 3.7 3.4 3.8 4.9 8.0 9.2 7.9 8.1 8.1 10.4 10.3 18 19 -.5 .6 .2 -.2 .2 1.0 .6 1.1 .8 .4 .8 .4 19 20 Multifamily...................................................... 2.4 2.8 2.7 3.6 4.3 6.2 7.3 6.0 6.3 6.5 8.1 8.6 20 21 .4 .3 .5 .4 .4 .9 1.3 .7 1.0 1.2 1.5 1.3 21 22 1.3 .6 1.1 2.1 -.6 .2 .7 * .4 1.2 .6 .6 22 23 Other loans 7....................................................... 1.7 .6 1.0 1.5 1.0 .5 .4 1.4 -.5 .2 .6 2.2 23 24 -1.2 .8 -.1 -1.1 -.9 -1.2 -1.1 -1.4 -.9 -.9 -1.2 -1.1 24 25 Proprietor net investment 8.................................. .1 -1.3 .2 .5 -.7 -.6 -.9 -.9 -.3 -.8 -1.1 -.9 25 Digitized for FRASNEoRte .—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Nonfinancial corporate business 1 Profits before tax............................................................. 71.1 66.1 72.2 67.9 55.7 64.0 74.2 63.1 64.9 71.1 77.2 96.3 1 2 — Profits tax accruals..................................................... 30.0 28.3 34.0 33.6 27.5 29.6 34.9 30.1 29.0 33.6 36.2 46.3 2 3 — Net dividends paid...................................................... 18.1 18.8 20.8 20.7 20.0 20.2 21.1 20.2 20.3 21.2 21.1 21.3 3 4 — Undistributed profits.................................................. 22.9 19.0 17.5 13.6 8.3 14.2 18.1 12.9 15.5 16.5 19.7 28.6 4 5 -f Foreign branch profits............................................... 1.8 2.1 2.5 2.5 2.3 2.9 3.5 2.8 3.1 3.1 3.9 4.7 5 6 +Investment valuation adjustment............................. -1.8 -1.1 -3.3 -5.1 -4.8 -4.9 -6.9 -5.0 -4.8 -6.7 -7.1 -18.2 6 7 +Capital consumption allowance............................... 38.2 41.5 45.1 49.8 53.6 57.7 62.8 56.7 58.7 61.8 63.8 66.6 7 8 — Gross internal funds................................................... 61.2 61.5 61.7 60.7 59.4 69.9 77.5 67.3 72.4 74.7 80.3 81.7 8 9 Gross investment (10+15)............................................ 52.9 55.6 53.3 57.3 53.7 56.9 62.5 55.3 58.5 66.2 58.9 72.4 9 10 Capital expenditures................................................ 76.5 71.4 75.0 83.7 84.0 86.7 100.7 86.5 87.0 96.0 105.4 108.4 10 11 Fixed investment......................................................... 62.1 64.1 68.6 76.9 78.4 81.8 93.9 80.4 83.2 91.8 96.0 104.6 11 12 Plant and equipment.............................................. 61.1 61.9 66.5 74.0 75.1 76.8 88.2 75.5 78.1 86.3 90.1 99.4 12 13 Residential construction........................................ 1.1 2.3 2.1 2.9 3.3 4.9 5.7 4.9 5.0 5.5 5.9 5.2 13 14 14.4 7.3 6.4 6.7 5.7 5.0 6.8 6.1 3.8 4.2 9.4 3.8 14 15 Net financial investment.................................................. -23.6 -15.8 -21.7 -26.4 -30.3 -29.8 -38.2 -31.2 -28.5 -29.7 -46.5 -36.0 15 16 Financial uses offunds, net........................................ 12.6 16.8 29.0 28.4 11.0 23.0 30.7 19.7 26.3 28.0 33.5 51.7 16 17 Liquid assets............................................................. -3.7 4.8 8.0 2.3 -1.1 10.6 5.1 7.3 13.8 6.0 4.2 21.6 17 18 Demand deposits and currency....................... .3 1.5 1.7 2.6 .4 .7 * 1.0 .4 -1.2 1.3 1.5 18 19 Time deposits....................................................... -1.4 2.1 .4 -2.4 1.7 3.6 3.1 5.4 1.8 4.7 1.5 5.1 19 20 U.S. Government securities............................. -1.2 -2.5 .3 -2.3 .3 2.0 -2.4 2.1 2.0 -6.0 1.3 13.0 20 21 Commercial paper.............................................. -.2 4.2 4.2 4.0 .5 2.4 1.7 -1.6 6.5 3.4 * -.3 21 22 Security RP’s 9.................................................... -.2 -.2 .9 1.4 -3.4 .8 1.6 -.5 2.1 4.1 -.8 1.3 22 23 State and local obligations................................ -1.0 -.3 .5 -1.0 -.6 1.0 1.0 1.0 1.0 1.0 1.0 1.0 23 24 Consumer credit...................................................... .5 .3 * .3 .7 .6 1.6 .4 .8 .8 2.4 1.8 24 25 Trade credit.............................................................. 12.0 8.3 18.6 22.7 7.1 5.6 19.8 5.0 6.2 16.5 23.0 19.5 25 26 Miscellaneous assets............................................... 3.7 3.5 2.4 3.0 4.2 6.2 4.3 7.0 5.5 4.8 3.9 8.8 26 27 Foreign direct investment 10............................ 3.0 2.7 1.1 2.2 3.6 3.8 1.4 4.1 3.4 .7 2. 1 6.5 27 28 Foreign currencies.............................................. .1 .1 .5 -.4 -.4 1.4 1.8 1.8 1.0 2.9 .6 1.1 28 29 Insurance receivables.......................................... .6 .7 .8 1.1 .9 1.0 1.2 1.0 1.1 1.1 1.2 1.1 29 30 Equity in Federally sponsored agencies......... * * * . 1 .1 * * * * * * * 30 31 Financial sources of funds, net.................................. 36.2 32.6 50.7 54.8 41.3 52.8 68.9 50.8 54.8 57.8 80.0 87.6 31 32 Net funds raised in markets................................. 25.4 29.6 30.3 38.3 38.8 47.4 54.6 45.1 49.7 47.9 61.3 68.4 32 33 Net new share issues.......................................... 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 8.7 33 34 Debt instruments................................................ 24.3 27.4 31.8 35.4 33.9 35.7 44.2 34.6 36.8 37.2 51.2 59.7 34 35 Corporate bonds 10........................................ 10.2 14.7 12.9 12.0 19.8 18.8 12.2 21.2 16.4 12.6 11.8 7.5 35 36 Mortgages......................................................... 4.2 4.5 5.7 4.6 5.2 11.4 15.6 10.3 12.6 14.0 17.3 15.9 36 37 Home mortgages........................................ -.5 .6 .2 -.2 .2 1.0 .6 1.1 .8 .4 .8 .4 37 38 Multifamily mortgage............................... .7 .8 .7 1.2 1.5 2.6 3.0 2.5 2.7 2.6 3.3 3.6 38 39 Commercial mortgages.............................. 4.0 3.1 4.8 3.7 3.6 7.9 12.0 6.7 9.1 10.9 13.1 11.9 39 40 Bank loans n.e.c.............................................. 8.6 6.9 9.7 11.6 5.7 4.8 13.9 2.3 7.2 7.6 20.2 40.7 40 41 Open-market paper........................................ 1.0 1.5 1.6 2.7 2.6 -1.5 -.5 -1.8 -1.1 1.1 -2.2 -5.3 41 42 Finance company loans................................ -.1 -.3 1.7 4.3 .4 1.9 2.8 2.2 1.5 1.8 3.8 1.0 42 43 U.S. Government loans................................ .4 .2 .2 . 1 .3 .2 .2 .3 .2 . 1 .4 -.1 43 44 Profit tax liability................................................ .2 -4.7 2.9 -3.3 -3.7 2.0 .6 4.7 -.7 -1.0 2.3 5.5 44 45 Trade debt............................................................ 10.6 7.4 17.2 19.0 5.2 3.6 13.5 .8 6.4 11.3 15.7 12.7 45 46 Miscellaneous liabilities.................................... . 1 .3 .3 .8 1.0 -. 1 .2 .3 -.5 -.4 .7 .9 46 47 Discrepancy...................................................................... 8.3 5.9 8.4 3.4 5.7 13.0 15.0 12.0 13.9 8.5 21.4 9.3 47 48 Memo—net trade credit................................................ 1.4 .9 1.4 3.8 1.9 2.0 6.3 4.2 -.1 5.2 7.3 6.8 48 49 Profits tax payments....................................................... 30.5 32.3 31.8 37.0 31.3 27.8 :4.o 26.7 28.8 34.0 34.1 39.7 49 Per cent ratios: 50 Effective tax rate......................................................... 42.2 42.8 47.0 49.5 49.4 46.2 47.1 47.7 44.8 47.3 46.9 48.1 50 51 Capital outlays/internal funds.................................. 125.1 116.2 121.6 137.8 141.4 124.1 1-9.9 128.5 120.1 128.5 131.3 132.7 51 52 Credit market borrowing/capital expenses............ 31.7 38.5 42.4 42.3 40.4 41.1 43.9 40.0 42.3 38.7 48.6 55.1 52 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.6 FLOW OF FUNDS □ SEPTEMBER 1973 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973^ Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI State and local governments-—General funds 1 1 Tax receipts...................................................................... 65.8 72.0 82.0 92.1 102.3 113.8 128.8 110.4 117. 1 125.6 131.9 139.0 1 2 Social insurance and grants received.......................... 19.4 21.5 25. 1 27.6 32.7 38.5 48.4 37.4 39.7 45.4 51.3 52.5 2 3 Purchases of goods and services.................................. 79.0 89.4 100.8 111.2 123.3 136.2 150.5 133.3 139.2 145.9 155.2 165.8 3 4 Net interest and transfers paid.................................... 4.9 5.7 6.7 7.8 9.9 12.0 13.5 11.8 12.2 13.4 13.6 13.3 4 5 Net surplus, NIA basis................................................... 1.3 -1.6 -.3 .7 1.8 4.0 13.1 2.7 5.4 11.8 14.5 12.5 5 6 Less: retirement credit to households........................ 4.2 4.1 4.8 5.1 6.3 6.8 7.3 7.0 6.6 7.4 7.1 7.4 6 7 Equals: gross saving....................................................... -3.0 -5.6 -5.2 -4.4 -4.5 -2.8 5.9 -4.3 -1.3 4.4 7.4 5.0 7 8 Net financial investment.................................................. -2.8 -4.8 -4.5 -9.4 -5.2 -13.5 -1.8 -14.5 -12.5 -2.8 -.8 -1.7 8 9 Net acquisition of financial assets............................... 3.9 3.8 6.0 1.8 6.6 4.0 11.0 3.9 4.2 9.7 12.4 6.2 9 10 Total deposits and currency................................. 2.1 3.6 3.0 -4.5 8.4 6.2 8.6 5.7 6.7 8.3 8.9 6.7 10 11 Demand deposits and currency....................... .8 1.2 -.2 1.4 -1.6 -1.0 1.8 -.7 -1.2 2.5 1.1 1.3 11 12 Time deposits....................................................... 1.3 2.4 3.2 -5.9 10.0 7.2 6.8 6.4 7.9 5.8 7.8 5.4 12 13 Credit market instruments.................................... 1.6 -. 1 2.3 6.9 -1.0 -2.4 2.0 -2.0 -2.9 .9 3.1 -.9 13 14 U.S. Government securities............................. 1.7 -. 1 2.2 6.9 -1.0 -2.2 2.1 -1.6 -2.9 1.2 3.1 -.5 14 15 Direct................................................................. 2.3 -.5 -.5 3.5 -.4 -1.2 1.4 -.6 -1.8 .9 1.9 -.9 15 16 U.S. Government agency securities............ -.6 .4 2.7 3.3 -.6 -1.1 .7 -1.0 -1.1 .3 1.2 .4 16 17 State and local securities ............................ * * . 1 * - .2 - .2 — .4 ♦ —. 3 * — .4 17 18 Home mortgages............................................ * * . 1 -. 1 * * * * * * * 18 19 .2 .3 .7 -.6 -.9 .3 .5 .2 .4 .5 .5 .4 . 19 20 Net increase in liabilities............................................... 6.8 8.6 10.4 11.2 11.8 17.6 12.9 18.5 16.6 12.5 13.3 7.9 20 21 Credit market borrowing...................................... 6.3 7.9 9.8 10.7 11.4 17.0 12.3 17.9 16. 1 11.9 12.7 7.3 21 22 State and local obligations............................... 5.6 7.8 9.5 9.9 11.3 16.6 11.9 17.9 15.4 12.0 11.9 7.3 22 23 Short-term........................................................ .7 1.8 . 1 2.8 2.3 2.4 -1.0 3.3 1.5 -.8 -1.2 -3. 1 23 24 Other................................................................. 5.0 5.9 9.4 7.2 9.0 14.2 12.9 14.6 13.8 12.7 13. 1 10.4 24 25 U.S. Government loans.................................... ! .6 .2 .3 .7 . 1 .4 .3 . 1 .7 -. 1 .8 * 25 26 Trade debt................................................................ 1 *5 .6 .6 .5 .4 .6 .6 .5 .6 .6 .6 .6 26 27 ! -.1 -.9 -.7 5.0 .7 10.7| 7.7 10.2! 11.2 7.2 8.2 6.8 27 1_______ I ; U.S. Government 2 1 Total receipts, NIA basis..............................................j 142.5 151.2 175.0 197.3 192.0 198.9 228.7 196.2 201.5 224. 1 233.2 257.7 1 2 Personal taxes...............................................................! 61.7 67.5 79.7 94.8 92.2 89.9 107.9 87.4 92.4 106.1 109.7 109.7 2 3 Corporate profits tax accruals.................................. 32. 1 30.7 36.7 36.6 31.0 33.3 37.8 33.7 33.0 36.3 39.3 48.7 3 4 Indirect taxes................................................................ 15.7 16.3 18.0 19.0 19.3 20.4 19.9 20.5 20.3 19.7 20.1 20.9 4 5 Insurance receipts........................................................ 33.0 36.7 40.7 46.9 49.5 55.2 63.0 54.6 55.8 62.0 64.1 78.4 5 6 Total expenditures, NIA basis...................................... 142.8 163.6 181.5 189.2 203.9 221.0 244.6 216.7 225.4 240.5 248.7 260.3 6 7 Goods and services..................................................... 77.8 90.7 98.8 98.8 96.2 98.1 104.4 96.4 99.7 106.4 102.5 106.0 7 8 Grants and donations................................................. 29.0 30.7 34.1 37.2 45.1 47.0 47.8 47.9 46.0 46.1 49.6 47.7 8 9 Net interest.................................................................... 9.5 10.2 11.7 13.1 14.6 13.6 13.5 13.9 13.4 13.4 13.5 15.2 9 10 Insurance benefits........................................................ 26.4 32.0 36.9 40.0 48.1 62.4 78.8 58.5 66.3 74.7 83.0 91.4 10 11 Net surplus, NIA basis................................................... -.2 -12.4 -6.5 8.1 -11.9 -22.2 -15.9 -20.5 -23.9 -16.3 -15.4 -2.6 11 12 Less: Insurance credits to households 3..................... 1.4 1.4 1.3 1.6 2.5 2.9 3.2 2.9 2.9 2.9 3.6 3.0 12 13 Equals: Gross saving...................................................... -1.6 -13.8 -7.8 6.5 - 14.4 -25. 1-19. 1-23.4 -26.8 -19.2 -19.0 -5.6 13 14 Net financial investment.................................................. -.8 -12.8 -8.4 6.1 -15.2 -25.0 -20.1 -24.2 -25.8 -18.9 -21.4 -6.6 14 15 Net acquisition of financial assets................................ 5.4 2.9 7.4 3.7 t 7 4.1 .9 2.6 5.5 — 4.2 5.9 13.2 15 16 Demand deposits and currency........................... -. 1 1.0 -1.7 1.1 2. 5 3.3 -1.0 .4 6.2 -4.5 2.6 4.3 16 17 Credit market instruments.................................... 4.9 4.6 4.9 2.9 2.8 3.2 2.3 4.3 2.2 1.5 3.1 .6 17 18 Agency securities ^............................................. 1.3 -. 1 . 1 -1.3 - . 1 * * * * * * 18 19 .8 .9 1.1 .7 .3 * -.2 .1 * -.2 -.3 -2.4 19 20 Other loans........................................................... 2.8 3.8 3.7 3.5 2.6 3.2 2.6 4.2 2.2 1.7 3.4 3.0 20 21 Excess of tax accruals over receipts................... -.7 -4.4 1.7 -2.6 -2.3 1.3 .5 2.8 -.2 -1.2 2.2 8.1 21 22 Other financial assets 5.......................................... 1.3 1.8 2.5 2.2 -2.3 -3.8 -1.0 -4.9 -2.7 * -1.9 .2 22 23 Net increase in liabilities................................................ 6.2 15.7 15.9 -2.5 15.9 29.1 21.0 26.8 31.3 14.6 27.3 19.8 23 24 U.S. Government securities................................. 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 22.1 28.4 12.4 22.2 15.4 24 25 Savings bonds—households............................. .7 .9 .4 -.4 .3 2.4 3.3 2.4 2.4 3.4 3.2 3.7 25 26 1.7 8.0 9.9 -.9 12.6 23.6 10.6 21.8 25.4 7.1 14. 1 10.4 26 27 1.3 4.1 3.1 -2.4 -. 1 -.5 3.4 -1.6 .5 1.9 4.9 1.3 27 28 1.4 1.4 1.3 1.6 2.5 2.9 3.2 2.9 2.9 2.9 3.6 3.0 28 29 Other liabilities 7..................................................... 1.2 1.3 1.1 - .4 .6 .6 .4 1.2 . 1 -.6 1.6 1.3 29 30 -.8 -1.0 . 6 .4 .8 -. 1 1.0 .8 -1.0 -.3 2.4 .9 30 31 Memo: Corp. tax receipts, net.................................... 32.8 35.1 35.0 39.2 33.4 32.0 37.3 30.8 33.2 37.5 37. 1 40.5 31 Federally sponsored credit agencies8 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 1 2 5. / 3.2 9.2 10.8 3.4 6.6 -.6 7.4 8.1 5.2 18.9 2 3 * * * * * . 1 * * . 1 -. 1 * * 3 4 5.1 -. 1 3.2 9.0 9.9 2.8 6.0 -1.4 7.0 7.5 4.5 18.9 4 5 1.0 * -. 1 -.2 1.7 -1.5 -1.4 -1.9 -1.1 1.8 -4.6 .2 5 6 1.9 1.1 1.6 3.9 5.4 5.6 5.5 4.1 7. 1 6.3 4.7 7. 1 6 7 .7 .7 .5 .6 .5 .7 1.2 .7 .8 .9 1.5 1.9 7 8 1.6 -1.8 1.2 4.8 2.3 -2.0 .8 -4.2 .2 -1.4 3.0 9.8 8 9 .2 .2 . 1 .2 .3 * .3 .2 -.2 .3 .3 1.0 9 10 .4 .5 .2 .6 .7 .7 .4 1.1 .2 .7 .2 1.0 10 11 To S & L’s (FHLB)............................................ .9 -2.5 .9 4.0 1.3 -2.7 * -5.5 .2 -2.4 2.5 7.8 11 12 -. 1 * * . 1 1.0 .6 .6 .8 .3 .6 .6 * 12 13 Net increase in liabilities.................................................... 5.0 -.2 3.2 9.1 10.8 3.3 6.5 -.7 7.3 7.9 5.0 18.6 13 14 4.8 -.6 3.5 8.8 8.2 4.3 6.2 .9 1.1 7.4 5.0 17.6 14 15 5.1 -.6 3.2 9.1 8.2 4.3 6.2 .9 1.1 7.4 5.0 17.6 15 16 U.S Government loans ................................ -.2 1 .2 -.3 16 17 .2 .5 -.3 .4 2.5 -1.0 .3 -1.6 -.3 .5 * 1.0 17 18 * . 1 . 1 . 1 * -. 1 * * -.1 -.1 -.2 18 Digitized for FRASER http://fraser.stlouisNfeodtf..o—rgD/ ata revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.1 3. Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) j 1971 1972 1973 ? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI i 1 Monetary authorities1 1 Current surplus................................................................ * * * * * -.1 .1 -.1 -.1 .1 .1 .1 I 2 Net acquisition of financial assets................................ 4.2 4.9 3.6 4.2 5.3 8.3 2.1 6.9 9.7 4.7 -.5 9.6 2 3 Gold and foreign exchange 2.................................... -.3 -.5 -1.2 -.1 -1.4 -.8 -.4 -1.1 -.6 -1.1 .3 -.4 3 4 Treas. currency and SDR ctfs.................................. .7 .5 .2 .1 .7 .5 .7 .5 .4 .9 .5 .4 4 5 .3 .1 .9 * .8 .1 -.4 -.6 .8 .8 -1.5 -1.3 5 6 F.R. loans to domestic banks.................................. .1 * * * .2 -.3 1.9 -.4 -.2 -.4 4.3 -.9 6 7 Credit market instruments........................................ 3.5 4.8 3.7 4.2 5.0 8.8 .2 8.4 9.3 4.5 -4.1 11.7 7 8 U.S. Government securities.................................. 3.5 4.8 3.8 4.2 5.0 8.6 .3 8.4 8.9 4.9 -4.2 11.8 8 9 Net increase in liabilities................................................ 4.2 4.8 3.6 4.1 5.3 8.3 2.0 6.9 9.8 4.6 -.6 9.5 9 10 Member bank reserves............................................... 1.3 1.3 .8 .2 2.1 3.6 -2.1 2.3 5.0 1.0 -5.2 -.4 10 11 Vault cash of coml. banks 3...................................... .6 .5 1.3 .1 -.3 .5 1.1 1.9 -.9 -1.0 3.2 -1.7 11 Demand deposits and currency 12 Due to U.S. Government...................................... .2 .9 -1.0 .5 -.4 .9 -.3 .5 1.3 .7 -1.3 4.8 12 13 Due to rest of the world 4.................................... .2 * .1 -.1 * .1 -.1 .1 .2 -.3 .1 .1 13 14 Currency outside banks......................................... 2.0 2.1 2.4 2.8 3.5 3.4 4.4 2.8 3.9 5.5 3.4 6.1 14 15 Other.............................................................................. -.1 .1 .1 .5 .4 -.2 -1.0 -.7 .3 -1.2 -.8 .6 15 Commercial banking 5 1 Current surplus................................................................ 2.5 2.3 3.0 3.7 3.3 2.8 3.7 2.5 3.2 3.5 3.9 5.1 1 2 Plant and equipment....................................................... 1.0 1.0 1.3 1.9 2.1 2.3 2.5 2.2 2.5 2.5 2.5 2.5 2 3 Net acquisition of financial assets................................ 21.3 40.9 46.3 22.0 45.2 58.5 78.3 65.2 51.8 73.3 83.4 95.9 3 4 Demand deposits and currency................................ * .1 * * .1 .1 .2 .1 .1 .2 .1 * 4 5 Total bank credit......................................................... 18.1 37.4 40.1 17.2 36.6 51.4 74.6 52.9 49.8 63.2 86.2 81.8 5 6 Credit market instruments.................................... 17.5 35.9 38.7 18.2 35.1 50.6 69.7 53.2 48.0 56.9 82.7 87.0 6 7 U.S. Government securities.............................. -3.1 9.4 3.3 -10.0 10.4 6.9 6.5 10.9 3.0 6.3 6.6 -5.5 7 8 -3.4 6.5 2.1 -9.7 6.9 3.1 2.4 8.2 -2.0 2.2 2.5 -10.7 8 9 Agency issues................................................... .3 2.9 1.2 -.3 3.5 3.8 4.1 2.7 5.0 4.1 4.0 5.3 9 10 Other securities and mortgages....................... 7.1 14.6 15.5 5.6 13.9 23.8 24.8 27.5 20.2 25.3 24.4 16.8 10 11 State and local obligations............................ 2.3 9.1 8.6 .2 10.7 12.6 6.3 17.4 7.8 7.8 4.8 -.9 11 12 Corporate bonds............................................. .1 .8 .3 -.1 .8 1.3 1.7 1.5 1.1 1.9 1.6 .1 12 13 Home mortgages............................................. 2.4 2.5 3.5 3.0 .9 5.7 9.0 4.7 6.7 8.0 10.0 9.7 13 14 Other mortgages.............................................. 2.3 2.2 3.2 2.4 1.6 4.2 7.8 3.8 4.7 7.6 8.0 8.0 14 15 Other credit except security.............................. 13.5 11.9 20.0 22.7 10.7 19.8 38.4 14.8 24.8 25.3 51.8 75.7 15 16 Consumer credit.............................................. 2.6 2.4 5.7 4.7 2.9 6.7 10.1 6.0 7.4 8.5 11.7 12.1 16 17 Bank loans n.e.c.............................................. 9.8 7.5 15.7 17.6 5.8 12.4 28.5 8.3 16.4 17.2 40.1 65.9 17 18 Open-market paper........................................ 1.1 2.0 -1.4 .5 2.0 .8 -.2 .5 1.0 -.4 * -2.3 18 19 Corporate equities................................................... . 1 . 1 . 1 * . 1 * . 1 . 1 -.1 .3 19 20 Security credit.......................................................... .6 1.5 1.3 -1.1 1.4 .8 4.8 -.3 1.9 6.1 3.4 -5.2 20 21 Vault cash and member bank reserves................... 1.9 1.8 2.0 .3 1.8 4.1 -1.0 4.2 4.1 * -2.0 -2.2 21 22 Other interbank claims............................................... * 1.0 .7 1.6 1.7 1.7 1.4 6.2 -2.9 8.4 -5.5 13.8 22 23 Miscellaneous assets................................................... 1.2 .7 3.4 2.8 5.0 1.2 3.1 1.7 .7 1.5 4.7 2.4 23 24 Net increase in liabilities................................................ 20.1 39.1 44.4 20.1 43.5 56.3 75.6 63.2 49.4 70.7 80.7 92.3 24 25 Demand deposits, net................................................. 1.6 12.0 13.3 4.9 11.2 13.0 16.4 15.1 10.9 7.6 25.3 .5 25 26 U.S. Government.................................................... -.5 .2 -.2 * 2.9 2.2 .7 -.8 5.3 -3.6 5.1 -1.4 26 27 Other 6....................................................................... 2.1 11.8 13.5 4.9 8.3 10.8 15.6 16.0 5.6 11.2 20.2 1.9 27 28 Time deposits............................................................... 13.3 23.9 20.7 -9.5 38.0 41.4 42.3 48.3 34.4 42.9 41.8 58.9 28 29 Large negotiable CD’s........................................... -.6 4.7 3.1 -12.5 15.2 8.7 9.8 4.9 12.5 2.1 17.4 30.2 29 30 Other at commercial banks................................. 13.8 19.1 17.4 2.9 22.4 32.4 33.0 43.2 21.6 40.4 25.7 28.1 30 31 At foreign banking agencies................................. * .1 .2 .2 .4 .3 -.5 .2 .3 .3 -1.3 .6 31 32 .3 . 1 .9 * .8 .1 -.4 -.6 .8 .8 -1.5 -1.3 32 33 Borrowing at Federal Reserve banks..................... .1 * * * .2 -.3 1.9 -.4 -.2 -.4 4.3 -.9 33 34 Other interbank claims............................................... * 1.0 .7 1.6 1.7 1.7 1.4 6.2 -2.9 8.4 -5.5 13.8 34 35 Credit market debt 7................................................... * .1 1.3 6.1 -4.9 3.3 4.8 .2 6.4 8.0 1.6 9.9 35 36 Profit tax liabilities...................................................... * -.1 -.1 .1 .3 * -.2 -.2 .2 -.4 * .8 36 37 Miscellaneous liabilities............................................. 5.0 2.3 7.6 16.9 -3.7 -2.7 9.3 -5.4 -.1 3.9 14.7 10.6 37 38 Liabilities to foreign affiliates............................... 2.9 .7 2.3 7.9 -6.9 -4.1 .9 - 8.0 -.2 1.5 .4 -.5 38 39 Other.......................................................................... 2.0 1.6 5.3 8.9 3.2 1.3 8.4 2.6 .1 2.4 14.4 11.2 39 40 Discrepancy...................................................................... .2 -.4 -.1 * -.5 -1.7 -1.5 -1.7 -1.8 -1.7 -1.2 -.9 40 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.8 FLOW OF FUNDS □ SEPTEMBER 1973 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1 1971 1972 1973? 1 Category 1966 1967 1968 1969 i 1970 1971 1972 HI H2 HI H2 HI 1 Commercial banks 1 Current surplus................................................................ 2.5 2.3 3.0 3.7 3.3 2.8 3.7 2.5 3.2 3.5 3.9 5.1 1 2 1.0 1.0 1.3 1.9 2.1 2.3 2.5 2.2 2.5 2.5 2.5 2.5 2 3 Net acquisition of financial assets................................. 20.3 39.8 43.5 13.6 38.0 56.6 77.3 59.4 53.7 73.9 80.8 82.1 3 4 Total bank credit......................................................... 17.5 36.8 39.6 11.6 34.7 51.1 73.5 53.8 48.4 65.6 81.6 77.8 4 5 Credit market instruments.................................... 17.0 35.3 38.3 12.7 33.3 50.3 68.8 54.1 46.5 59.5 78.4 82.3 5 6 U.S. Government securities.............................. -3.1 9.2 3.2 -10.1 10.5 7.0 6.0 11.2 2.9 6.2 5.6 -5.6 6 7 -3.4 6.3 2.0 -9.8 7.0 3.2 2.1 8.5 -2.1 2.1 2.0 -10.8 7 8 Agency issues.................................................. .3 2.9 1.2 -.3 3.5 3.8 3.9 2.7 5.0 4.1 3.6 5.1 8 9 Other securities and mortgages....................... 7.0 14.3 15.5 5.3 13.6 23.9 25.3 27.6 20.1 25.9 24.7 16.6 9 10 State and local obligations........................... 2.3 9.0 8.6 .2 10.5 12.8 7.1 17.7 7.9 8.4 5.9 -.9 10 11 Corporate bonds............................................. .1 .8 .3 -.1 .8 1.3 1.4 1.5 1.1 1.9 .9 .1 11 12 Home mortgages............................................ 2.4 2.4 3.5 3.0 .7 5.6 9.0 4.5 6.6 8.0 10.0 9.7 12 13 Other mortgages............................................. 2.3 2.2 3.2 2.3 1.6 4.2 7.8 3.9 4.6 7.7 7.9 7.7 13 14 Other credit except security.............................. 13.1 11.8 19.5! 17.5 9.1 19.4 37.6 15.3 23.5 27.4 48.0 71.3 14 15 Consumer credit.............................................. 2.6 2.4 5.7 4.7 2.9 6.7 10.1 6.0 7.4 8.5 11.7 12.1 15 16 Bank loans n.e.c.............................................. 9.3 7.3 15.3 12.3 4.2 11.9 27.7 8.8 15.0 19.3 36.4 61.5 16 17 Open-market paper........................................ 1.1 2.0 -1.4 .5 2.0 .8 -.2 .5 1.0 -.4 * -2.3 17 18 Security credit.......................................................... .5 1.5 1.3 -1.1 1.4 .8 4.7 -.3 1.9 6.1 3.3 -4.5 18 19 Interbank claims.......................................................... 2.0 1.8 2.1 .4 2.0 4.0 1.5 3.8 4.2 7.2 -4.1 4.1 19 20 Vault cash and member bank reserves............... 1.9 1.8 2.0 .3 1.8 4.1 -1.0 4.2 4.1 * -2.0 -2.2 20 21 Deposits at foreign banking agencies................. * * *! • I .2 -.1 2.5 -.3 .1 7.2 -2.1 6.3 21 22 Miscellaneous assets................................................... .9 1.3 1.9 1.6 1.3 1.5 2.2 1.8 1.2 1.1 3.3 .1 22 23 Net increase in liabilities................................................ 19.1 38.1 41.7 11.8 36.3 54.4 74.6 57.5 51.3 71.3 78.2 78.5 23 24 Demand deposits, net................................................ 1.6 11.9 12.3 4.6 4.6 13.4 19.8 8.7 18.1 14.3 25.5 -.4 24 25 U.S. Government.................................................... -.5 .2 _, *> * 2.9 2.2 .7 -.8 5.3 -3.6 5.1 -1.4 25 26 Other.......................................................................... 2.1 11.6 1215 4.6 1.7 11.2 19.1 9.6 12.7 17.9 20.4 1.0 26 27 Time deposits............................................................... 13.3 23.8 20.6 -9.7 37.6 41.1 42.8 48.1 34.1 42.5 43.1 58.3 27 28 Large negotable CD’s............................................. -.6 4.7 3.1 -12.5 15.2 8.7 9.8 4.9 12.5 2.1 17.4 30.2 28 29 Other.......................................................................... 13.8 19.1 17.4 2.91 22.4 32.4 33.0 43.2 21.6 40.4 25.7 28.1 29 30 Interbank liabilities..................................................... .3 1.0 1.6! 1.6i 2.5 1.6 .5 5.6 -2.4 1.6 -.7 5.4 30 31 Federal Reserve float.............................................. .3 .1 .91 * .8 .1 -.4 -.6 .8 .8 -1.5 -1.3 31 32 Borrowing at Federal Reserve banks................. . 1 * * * .2 -.3 1.9 -.4 -.2 -.4 4.3 -.9 32 33 Demand deposits of foreign bank agencies.... .1 .9 .7i .8i 1.2 1.3 -1.2 4.5 -1.9 -.4 -2.0 2.0 33 34 Time deposits of foreign bank agencies............. . 1 * .3 . 1 .7 —. 3 34 35 Loans from affiliates............................................... .6 .1 .3 - .4 .8 - .2 -.3 - .5 .4 35 36 Loans from foreign bank agencies...................... -.i . 1 *! .1 .1 . 1 .2 1.2 -.9 1.9 -1.6 5.4 36 37 Corporate bonds......................................................... . i .3 .31 •1i * .7 1.1 1.0 .4 1.1 1.0 .1 37 38 Corporate stock........................................................... l * * -.1 *! .1 .2 .5 .4 * .5 .5 * 38 39 Security RP’s................................................................I _. 2 _ .2 1 .0 1.6i -3.3 1.1 1.7 -.1 2.2 5.2 -1.7 4.7 39 40 Profit tax liabilities...................................................... * - J 1 .1! . .3 * -.2 -.2 .2 -.4 * .8 40 41 Miscellaneous liabilities.............................................S 4.1 1.4 6.1i 13.51 -5.6 -3.7 8.4 -6.0 -1.3 6.5 10.5 9.6 41 42 Liabilities to foreign branches..............................i 2.7 .2 1.8 6.8; -7.2 -4.8 .5 -8.3 -1.2 1.1 -.1 .2 42 43 Other..........................................................................1 1.4 1.2 4.3: 6-7 1.5 1.1 8.0 2.3 -.1 5.4 10.5 9.4 43 ! 44 Discrepancy...................................................................... . 2 -.4 - . 11 -.5 -1.7 -1.5 -1.7 -1.8 -1.7 -1.2 -.9 44 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.9 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Domestic affiliates of commercial banks 1 4.5 -.9 .2 -.6 1.0 - .6 -1.4 .1 2.2 1 ? 3.9 -1.0 -. 1 -.2 .2 — .4 -1.1 .6 1.8 2 3 .6 . 1 .3 -.4 .8 - .2 -.3 - .5 .4 3 4 4.5 -.9 .2 - .6 1.0 — .6 -1.4 .1 2.2 4 5 4.2 -1.9 — .4 .7 -1.2 .5 * 1.3 3.3 5 6 .3 1.0 .6 -1.3 2.3 -1.1 -1.4 -1.2 -1.1 6 Edge Act corporations and agencies of foreign banks 1 Net acquisitions of financial assets............................... .7 .7 2.5 2.7 7.7 1.2 1.2 4.9 -2.4 1.2 1.1 10.2 1 2 Credit market instruments........................................ .4 .4 .4 1.3 2.7 .1 .8 -1.5 1.8 -1.5 3.2 2.4 2 3 U S. Government securities.................................. -.1 .1 * * -.1 -.2 .3 -.4 * .2 .4 -.1 3 4 State and local government securities................. * .1 -.1 * .2 -.2 -.9 -.4 * -.7 -1.0 -.1 4 5 Corporate bonds..................................................... * * * .3 * * * .6 * 5 6 Bank loans n.e.c...................................................... .4 .1 .4 1.3 2.6 .5 1.1 -.7 1.8 -1.0 3.2 2.6 6 7 Open-market paper................................................ 7 8 Corporate equities....................................................... .1 .1 .1 * . 1 * . 1 . 1 -.1 .3 8 9 Security credit.............................................................. .1 . 1 .2 - .8 9 10 Demand deposits at commercial banks................. .1 .9 .7 .8 1.2 1.3 -1.2 4.5 -1.9 - .4 -2.0 2.0 10 11 Time deposits at commercial banks....................... .1 * .3 . 1 .7 - .3 11 12 Loans to banks............................................................ -.1 .1 * .1 .1 .1 .2 1.2 -.9 1.9 -1.6 5.4 12 13 Miscellaneous assets................................................... .2 -.7 1.4 .3 3.5 -.4 .8 .6 -1.3 1.0 .7 1.5 13 14 Net increase in liabilities................................................ .7 .7 2.5 2.7 7.7 1.2 1.2 4.9 -2.4 1.2 1.1 10.2 14 15 Demand deposits in money supply......................... * .1 1.0 .3 6.6 -.4 -3.4 6.4 -7.2 -6.7 -.1 .8 15 16 Time deposits............................................................... * .1 .2 .2 .4 .3 -.5 .2 .3 .3 -1.3 .6 16 17 Deposits of banks....................................................... * * * . 1 .2 -.1 2.5 -.3 .1 7.2 -2.1 6.3 17 18 Loans from banks................................................... .1 * .1 .2 .1 1.6 .8 .1 3.2 1.2 .5 1.8 18 19 Miscellaneous liabilities............................................. .6 .5 1.2 1.9 .4 -.2 1.7 -1.4 1.1 -.8 4.1 .8 19 20 Due to foreign affiliates......................................... .3 .5 .5 1.2 .2 .7 .4 .3 1.0 .4 .4 -.8 20 21 Other.......................................................................... .3 * .7 .8 .2 - .9 1.2 -1.8 .1 -1.2 3.7 1.5 2! Banks in U.S possessions 1 Net acquisitions of financial assets............................... .3 .3 .3 1.1 .5 .5 .5 -.2 1.2 -.4 1.4 1.3 1 2 Demand deposits and currency............................... * .1 * * .1 .1 .2 .1 .1 .2 .1 * 2 3 Credit market instruments........................................ .1 .1 .1 .2 .1 .3 .3 .4 .2 * .6 .5 3 4 U.S. Government securities.................................. * * * * * .2 .2 .1 .2 -.1 .6 .2 4 5 State and local Government securities............... * * * * * * . 1 .1 -.1 .2 * * 5 6 Corporate bonds..................................................... * * * * * * * * * * 6 7 Mortgages................................................................. .1 .1 * .2 .1 A .2 .1 * .1 .3 7 8 Home mortgages................................................ * .1 * * .1 .1 .2 * * * * 8 9 Commercial mortgages...................................... * * * .1 * * * .1 -.1 .1 .3 9 10 Miscellaneous assets................................................... .1 .1 A .9 .3 .1 -.7 .8 —. 6 .7 .8 10 11 Net increase in deposit liabilities.................................. .3 .3 .3 1.1 .5 .5 .5 -.2 1.2 -.4 1.4 1.3 11 Notf.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

71.10 FLOW OF FUNDS □ SEPTEMBER 1973 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Private nonbank financial institutions—Total 1 Current surplus................................................................ 1.6 1.3 .2 -.1 1.7 4.1 5.2 3.8 4.4 5.2 5.2 5.6 1 2 Physical investment (life insurance)............................ .5 .6 1.1 1.2 1.2 1.9 2.1 1.6 2.1 1.9 2.2 3.0 2 3 Net acquisition of financial assets................................ 35.6 43.2 52.4 45.9 55.2 85.6 104.5 87.7 83.6 101.5 107.6 99.2 3 4 Demand deposits and currency............................... -.3 .7 .9 -.4 1.0 .8 1.8 .8 .9 .2 3.3 1.9 4 5 Time deposits (MSB).................................................. * * * -.1 .2 .2 -. 1 .2 .1 .1 -.2 -.4 5 6 Svgs. and loan shares (Cr. union)........................... -.4 .2 -.2 -. 1 .1 .2 .4 .2 .2 .3 .5 .6 6 7 Corporate shares......................................................... 5.9 9.0 10.7 12.2 11.3 19.3 15.4 23.4 15.1 17.3 13.6 12.4 7 8 Credit market instruments........................................ 27.9 27.6 36.6 36.7 39.8 60.8 80.5 59.0 62.6 73.2 87.7 85.7 8 9 U.S. Government securities................................. .3 -2.3 2.1 -2.2 3.3 2.5 5.7 2.3 2.6 4.2 7.3 3.3 9 10 State and local obligations................................... .7 1.2 1.2 1.0 1.8 4.1 3.5 3.2 5.0 3.3 3.7 2.8 10 11 Corporate and foreign bonds............................... 9.0 11.9 9.8 6.9 12.2 14.9 13.5 17.2 12.7 14.5 12.4 10.3 11 12 Home mortgages..................................................... 5.2 8.0 8.6 8.6 7.6 18.4 30.2 16.2 20.6 25.6 34.9 30.4 12 13 6.7 6.7 7.2 7.6 10.1 14.1 17.4 13.2 15.0 15.9 18.8 19.8 13 14 Consumer credit...................................................... 2.7 1.5 3.8 4.8 1.8 3.3 6.4 1.9 4.7 6.0 6.9 9.9 14 15 Other loans............................................................... 3.2 .6 3.8 9.9 3.1 3.5 3.8 5.0 2.1 3.7 3.8 9.2 15 16 Security credit.............................................................. * 3.2 2.8 -3.5 -1.3 2.5 3.9 1.9 3.1 6.9 1.0 -5.5 16 17 Trade credit.................................................................. .2 .3 .3 .4 .5 .3 .3 .3 .3 .3 .3 .3 17 18 Miscellaneous assets................................................... 2.2 2.1 1.3 .8 3.6 1.6 2.3 1.9 1.4 3.2 1.3 4.3 18 19 Net increase in liabilities................................................ 36.1 45.0 53.2 48.8 55.0 82.8 100.6 83.2 82.3 95.6 105.6 97.8 19 20 Time and savings accounts....................................... 6.9 17.0 12.7 7.9 17.0 40.8 46.4 45.6 36.1 48.1 44.7 38.3 20 21 Insurance and pension reserves............................... 18.1 18.2 18.8 19.2 21.8 25.4 24.8 25.2 25.5 23.7 25.9 28.1 21 22 Corporate equities...................................................... 3.8 3.1 6.5 6.1 4.5 2.7 1.5 1.7 3.7 1.5 1.4 * 22 23 Credit market instruments........................................ 3.2 -.5 7.1 13.0 4.7 6.2 15.9 2.8 9.6 8.9 22.9 27.2 23 24 Finance company bonds....................................... .8 1.0 .8 1.7 3.0 4.2 5.8 4.2 4.2 5.6 6.1 3.5 24 25 Mortgage loans in process................................... -.9 1.0 .2 * .6 2.0 1.2 2.8 1.2 1.1 1.2 .6 25 26 .2 .2 . 1 . 1 .5 . 1 .1 .5 .5 .7 26 27 Bank loans n.e.c...................................................... -1.1 -2.0 2.4 2.1 -.6 1.4 5.9 3.2 -.4 1.9 10.0 11.6 27 28 Other loans............................................................... 4.5 -.5 3.5 8.9 1.5 -1.5 2.5 -7.4 4.4 -.2 5.3 10.8 28 29 Open-market paper............................................ 3.5 2.0 2.6 4.9 .2 1.2 2.5 -1.9 4.2 2.2 2.8 3.0 29 30 FHLB loans......................................................... .9 -2.5 .9 4.0 1.3 -2.7 * -5.5 .2 -2.4 2.5 7.8 30 31 Security credit.............................................................. .8 3.2 3.5 -3.0 1.0 1.1 4.1 .6 1.7 5.5 2.7 -6.5 31 32 Taxes payable............................................................... * -.1 .2 . 1 .2 -.1 .3 * -.3 .2 .4 .6 32 33 Miscellaneous liabilities............................................. 3.4 4.2 4.5 5.4 5.9 6.7 7.6 7.4 6.0 7.7 7.5 10.2 33 34 Discrepancy...................................................................... 1.6 2.5 -.2 1.6 .3 -.6 -.8 -2.3 1.1 -2.6 1.0 1.1 34 Savings and loan associations 1 Current surplus........................................ .9 .9 1.0 1.0 1.0 1.0 .9 .9 1.0 .9 .9 .9 2 Net acquisition of financial assets 4.6 9.7 9.7 9.3 14.1 30.1 37.3 31.7 28.5 35.9 38.6 40.0 3 Demand deposits and currency i. . . -.5 -.3 -.4 -.2 .3 .5 .6 .4 .6 .3 .9 .3 4 Credit market instruments............... 4.2 9.2 10.2 9.9 11.6 29.4 36.5 31.1 27.6 34.3 38.6 36.8 5 U.S. Government securities........ .4 1.6 .7 .3 1.2 5.2 4.3 8.9 1.5 4.8 3.8 2.3 6 Home mortgages........................... 2.9 6.0 7.2 7.7 7.2 17.9 24.7 15.9 20.0 22.3 27.1 25.8 7 Other mortgages............................... .9 1.5 2.1 1.8 3.0 6.1 7.3 6.2 6.0 7.0 7.6 8.6 8 Consumer credit............................. * . 1 . 1 .2 .3 . 1 .2 . 1 . 1 .2 .2 .2 9 Miscellaneous financjal transactions .9 .9 1 -.4 2.2 .2 .2 .2 .3 1.3 -.9 2.9 10 Net increase in liabilities......................... 4.0 9.3 8.9 8.4 13.3 28.9 35.6 30.9 26.9 34.3 36.9 38.0 11 Savings shares..................................... 3.6 10.6 7.4 3.9 10.9 28.1 32.8 31.4 24.8 34.2 31.4 27.6 12 Credit market instruments............... .1 -1.7 1.1 4.1 1.8 * 2.0 -2.0 2.0 -.8 4.8 8.3 13 Mortgage loans in process.......... -.9 1.0 .2 * .6 2.0 1.2 2. 1.2 1.1 1.2 .6 14 Bank loans n.e.c............................. .1 -. 1 .1 .1 -.1 .7 .7 .7 .4 1.1 -.1 15 FHLB advances.............................. .9 -2.5 .9 4.0 1.3 -2.7 -5.5 .2 -2.4 2.5 7.8 16 Miscellaneous liabilities.................... .4 .4 .4 .4 .6 .8 1.5 . 1 .9 .6 1.9 17 Memo—FHLB loans less deposits . .. .9 -2.9 .9 4.4 -2.1 -5.0 -2.3 2.9 7.9 Mutual savings banks 1 Current surplus............................................... .2 .1 .2 .3 .3 .4 .4 .3 .4 .4 .4 .5 2 Net acquisitions of financial assets............... 2.8 5.4 4.6 3.1 4.7 10.4 11.0 12.8 8.0 12.6 9.4 9.5 3 Demand deposits and currency............... . I * . 1 * .3 * * * .7 .1 4 Time deposits.............................................. * -.1 .2 .2 -. 1 .2 . 1 .1 -.2 -.4 5 Corporate shares........................................ .2 .3 .2 .3 .5 .6 .4 .5 .8 .5 .6 6 Credit market instruments....................... 2.6 5.0 4.1 2.9 3.8 9.5 9.4 11.6 7.3 11.0 7.7 9.1 7 U.S. Government securities................. -.5 -.3 -.2 -.5 .2 .4 .3 .2 .5 .1 .5 * 8 State and local Government securities -.1 * * * * .2 .5 .2 .1 .5 .5 .4 9 Corporate bonds.....................:............ .3 2.1 1.3 .3 1.3 4.3 2.8 6.9 1.8 4.3 1.3 .4 10 Home mortgages.................................... 1.6 1.8 1.4 1.4 .9 1.3 3.0 .9 1.7 2.4 3.6 3.6 11 Other mortgages..................................... 1.1 1.4 1.4 1.3 .9 2.7 2.6 2.5 3.0 2.4 2.7 2.1 12 Consumer credit..................................... .1 .1 .1 .1 .1 .1 .3 .1 .1 .5 * .4 13 Other loans 2.......................................... .1 * . 1 .3 .3 .5 -.1 .8 . 1 .7 -1.0 2.3 14 Miscellaneous assets.................................. .1 . 1 .3 * .3 .3 .8 .6 .1 .7 .9 * 15 Savings deposits.............................................. 2.6 5.1 4.2 2.6 4.4 9.9 10.2 11.2 8.5 10.4 10.0 6.8 16 Miscellaneous liabilities................................ .1 . 1 .2 .1 .1 .2 .2 .4 . 1 .6 Credit unions 1 Net acquisitions of financial assets .8 1.2 1.1 1.4 1.7 2.9 3.4 2.9 3.5 3.3 3.8 2 Demand deposits and currency. * .1 * .2 . 1 .1 .1 .2 .1 * 3 Savings and loan shares............. -.4 .2 -.2 1 .1 .2 .4 .2 .3 .5 .6 4 Credit market instruments........ 1.1 .9 1.3 1.6 1.5 2.6 2 2.6 3.1 2.6 3.2 5 U.S. Government securities.. .1 . 1 -.2 .4 .6 1.1 .9 .3 .4 6 Home mortgages..................... .1 * * .1 .1 * .1 .1 .1 7 Consumer credit...................... .9 .7 1.3 1.7 1.0 1.8 2.1 1.5 2.1 2.2 2.8 8 Credit union shares......................... 1.2 1.1 1.4 1.7 2.9 3.4 2.9 3.5 3.3 3.8 Digitized for FRASER Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.1 3. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.11 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual races; in billions of dollars) 1971 1972 1973 ^ Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Life insurance companies 1 Current surplus................................................................ 1.1 .8 .6 .9 .8 .9 1.6 .9 1.0 1.5 1.7 1.9 1 2 Physical investment......................................................... .5 .6 .7 .8 1.0 1.4 1.0 1.3 1.6 .8 1.1 1.3 2 3 Net acquisition of financial assets................................ 8.2 8.7 9.8 9.2 9.9 12.7 14.8 12.6 12.7 14.6 15.0 16.7 3 4 Demand deposits and currency............................... * * .1 * .1 * .1 .1 -.1 .2 * .3 4 5 Corporate shares......................................................... .3 1.0 1.4 1.7 2.0 3.6 3.5 3.9 3.3 4.2 2.8 3.2 5 6 Credit market instruments........................................ 7.7 7.4 7.7 6.7 7.0 8.1 10.1 7.7 8.6 9.1 11.1 12.2 6 7 U.S. Government securities.................................. -.4 -.3 -.1 -.3 .1 -.2 -.2 -.3 * .1 -.6 .5 7 8 State and local obligations.................................... -.4 -.1 .2 * .1 .1 * .1 * * * .1 8 9 Corporate bonds..................................................... 2.4 3.8 3.9 1.5 1.5 5.5 7.2 3.9 7.1 6.6 7.8 5.1 9 10 Home mortgages..................................................... .6 -.5 -.7 -1.1 -1.3 -2.1 -2.1 -1.9 -2.2 -2.7 -1.5 -1.8 10 11 Other mortgages...................................................... 4.0 3.4 3.2 3.1 3.6 3.2 4.0 2.7 3.7 3.3 4.6 3.7 11 12 1.5 1.0 1.2 3.4 3.0 1.6 1.4 3.3 -.1 1.9 .9 4.6 12 13 Miscellaneous assets................................................... .2 .3 .6 .9 .8 .9 1.0 .9 .9 1.0 1.0 1.0 13 14 Net increase in liabilities................................................ 8.0 9.1 9.2 9.3 10.2 13.3 14.7 13.0 13.6 14.1 15.4 16.5 14 15 Life insurance reserves............................................... 4.6 5.0 4.6 4.9 5.1 6.1 7.2 5.9 6.3 6.7 7.8 7.7 15 16 Pension fund reserves................................................. 2.1 2.6 2.9 2.9 3.3 5.2 4.6 4.9 5.4 4.8 4.5 5.1 16 17 1.2 1.6 1.5 1.4 1.7 2.1 2.9 2.2 2.1 2.7 3.1 3.7 17 18 Discrepancy...................................................................... .3 .6 -.7 .2 .1 .2 .6 .1 .3 .2 1.0 .5 18 Private pension funds 1 Net acquisition of financial assets 3............................. 7.2 6.6 6.4 6.3 7.1 7.3 5.7 7.3 7.3 4.8 6.6 7.9 1 2 Demand deposits and currency............................... * .4 .3 * .2 -.2 .2 -.3 * -.6 .9 .3 2 3 Corporate shares......................................................... 3.7 4.6 4.7 5.4 4.6 8.9 7.1 10.6 7.2 8.2 6.0 5.2 3 4 Credit market instruments........................................ 2.6 .7 1.1 .6 2.4 -1.6 -1.3 -3.2 * -2.5 -.1 2.4 4 5 U.S. Government securities.................................. -.5 -.6 .4 -.2 .2 -.3 1.0 -.7 A .5 1.4 .9 5 6 Corporate bonds..................................................... 2.5 1.1 .6 .6 2.1 -.7 -1.6 -1.8 .5 -2.2 -1.0 2.1 6 7 .6 .2 * .1 .1 —. 6 -.7 -.7 -.5 -.8 -.5 -.5 7 8 .9 .8 .4 .3 * . 1 -.2 .1 * -.2 -.2 * 8 State and local Government employee retirement funds 2 1 Ne D t e a m cq a u n is d i t d io e n p o o s f i t f s i n a a n n d c ia c l u r a r s e s n et c s y 3 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. .1 2 4. . 1 1 4. .1 8 - 5 .1 .1 6. .1 3 - 6 .1 .8 7.3 * 7.0 * - 6 . . 2 6 - 7 . . 3 4 7. . 1 3 - 7 .1 .4 2 1 3 Corporate shares......................................................... .5 .7 1.3 1.8 2.1 3.2 3.0 2.9 3.5 2.9 3.0 3.8 3 4 Credit market instruments........................................ 3.7 3.3 3.4 3.4 4.0 3.7 4.3 4.1 3.3 4.8 3.8 3.7 4 5 6 S U t . a S t . e G an o d v e l r o n c m al e o n b t l s i e g c a u ti r o it n i s e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -.1 .2 - -. . 1 8 .5 * - -. . 1 3 - - . . 7 3 -1 -. . 2 2 - - . . 2 2 -2.3 * - - . . 1 4 -.3 * - -. . 1 3 -. . 6 1 5 6 7 Corporate bonds..................................................... 2.8 3.7 2.6 3.1 4.2 4.8 4.8 6.2 3.4 5.3 4.3 4.1 7 8 .8 .5 .4 .6 .8 .3 -.1 .2 .4 -.2 -.1 .1 8 Other insurance companies 1 Current surplus................................................................ .5 .4 .1 -.1 .8 2.0 2.6 1.6 2.3 2.6 2.6 2.7 1 2 Net acquisition of financial assets................................. 2.1 2.0 3.1 2.9 5.5 6.6 6.2 6.3 7.0 5.7 6.7 6.5 2 3 Demand deposits and currency............................... * * . 1 * . 1 . 1 . 1 . 1 . 1 . 1 .1 . 1 3 4 Corporate shares......................................................... .4 .3 .8 1.0 1.0 2.5 3.0 2.0 2.9 2.5 3.4 2.9 4 5 Credit market instruments........................................ 1.5 1.4 1.9 1.6 3.9 3.8 2.9 3.8 3.7 2.8 3.0 3.3 5 6 U.S. Government securities.................................. -.4 -.7 -.2 — .5 .1 -.4 -.4 -.4 -.4 -.6 -.2 -.5 6 7 1.3 1.4 1.0 1.2 1.5 3.9 3.3 3.7 4.1 3.4 3.2 3.3 7 9 8 Commercial mortgages.......................................... . 6 * .7 * 1.2 * .8 * 2.3 * .3 * -.1 * . 6 * * * -.1 * -.1 * .4 * 9 8 10 .2 .3 .3 .4 .5 .3 .3 .3 .3 .3 .3 .3 10 11 Net increase in liabilities................................................ 1.9 2.2 2.7 3.9 3.9 4.1 4.4 4.1 4.0 4.4 4.4 4.5 11 12 Corporate equities....................................................... .1 .1 .2 .5 .4 .6 .6 .6 .6 .6 .6 .6 12 13 * * * . 1 .1 -.1 .1 * -.2 . 1 . 1 .2 13 14 1.8 2.1 2.5 3.3 3.4 3.6 3.7 3.5 3.6 3.7 3.7 3.8 14 15 .2 .6 -.2 .9 -.8 -.6 .8 -.5 -.7 1.2 .3 .7 15 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.12 FLOW OF FUNDS □ SEPTEMBER 1973 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI 1 Current surplus of group. -1.1 -1.0 -1.8 -2.2 -1.1 -. 1 -.3 * -. 1 -.2 -.5 -.4 1 Finance companies 1 Net acquisition oi financial assets. 2.3 .7 5.2 8.1 .9 4.4 11.0 4.1 4.7 7.6 14.4 10.3 1 2 Demand deposits and currency .2 . 1 . 1 . 1 .2 .3 .3 .3 .3 .3 .3 .3 2 3 Home mortgages....................... -.6 .4 .6 .3 . 1 1.1 4.1 1.3 .8 2.7 5.6 2.0 3 4 Consumer credit......................... 1.6 .5 2.3 2.8 .5 1.3 3.8 .2 2.4 3.2 4.4 6.5 4 5 Other loans (to business)......... 1.1 -.3 2.2 5.0 .1 1.8 2.8 2.3 1.3 1.5 4.2 1.6 5 6 Net increase in liabilities............... 3.1 1.2 5.7 8.4 1.7 4.2 9.1 3.0 5.5 5.1 13.1 12.1 6 7 Corporate bonds........................ .8 1.0 .8 1.6 2.5 3.8 5.4 3.4 4.2 5.0 5.9 3.0 7 8 Bank loans n.e.c......................... -1.2 -1.8 2.3 1.9 -1.1 * 3.6 1.5 -1.4 .2 7. 1 6.6 8 9 Open-market paper................... 3.5 2.0 2.6 4.9 .2 .4 * -1.9 2.7 -.1 .2 2.5 9 Real estate investment trusts 1 .4 .3 .2 .4 1.1 .3 .5 1.1 1.2 1.7 1 o . 1 . 1 . 1 . 1 .4 . l .2 .4 .4 .6 2 3 .2 .2 .2 .3 .8 .2 .3 .7 .8 1.2 3 4 .3 1.0 2.4 2.6 5.4 2.4 2.8 5.4 5.3 7.0 4 5 * . 1 .5 .7 1.2 .7 .8 1.6 .7 1.2 5 6 Multifamily mortgages.............................................. . 1 .3 .6 .7 1.9 .7 .7 1.4 2.4 2.9 6 7 Commercial mortgages.............................................. . 1 .4 1.0 1.1 1.8 1.0 1.1 1.9 1.6 2.4 7 8 Miscellaneous assets................................................... . 1 . 1 .3 * .5 . 1 * .4 .6 .4 8 9 Financial sources of funds.............................................. .7 1.3 2.7 3.0 6.5 2.8 3.2 6.5 6.5 8.7 9 10 Corporate equities....................................................... .4 .8 1.4 .9 1.5 .8 1.0 1.7 1.3 1.6 10 11 Credit market instruments........................................ .3 .5 1.2 2.0 4.8 1.9 2.1 4.6 5.0 6.9 11 12 Mortgages................................................................. .2 .2 . 1 . 1 .5 . 1 . 1 .5 .5 .7 12 13 Multifamily residences...................................... . 1 . 1 * * .2 * * .2 . 1 .2 13 14 Commercial mortgages...................................... . 1 .2 . 1 . 1 .3 . 1 . 1 .3 .3 . 5 14 15 Corporate bonds..................................................... . 1 .5 .4 .4 .8 . 1 .6 .2 . 5 15 16 Bank loans n.e.c...................................................... . 1 .2 .6 .7 1.5 1.0 .4 1.2 1.8 5.2 16 17 Commercial paper.................................................. .8 2.5 1.6 2.3 2.6 . 5 17 18 Miscellaneous liabilities............................................. * * . 1 . 1 .2 . 1 . 1 .2 . 1 .2 18 Open-end investment companies 1 Current surplus................................................................ -1.2 -1.5 -2.2 -2.2 -.9 -.6 -1.2 -.4 -.8 -.9 -1.4 -1.4 1 2 Net acquisition of financial assets................................. 2.5 1.5 3.6 2.6 1.7 .6 -1.8 -.1 1.3 -1.7 -1.8 -3.6 2 3 Demand deposits and currency............................... * .2 . 1 -.1 * . 1 * .2 .1 * . 1 .6 3 4 Corporate shares......................................................... 1.0 1.9 2.5 1.7 1.2 .4 -1.8 1.7 -.8 -1.6 -2.0 -3.7 4 5 Credit market instruments........................................ 1.5 -.5 .9 .9 .5 * * -2.0 2.0 -.1 .1 -.6 5 6 U.S. Government securities................................. .6 -.5 .2 -.5 .2 -.3 . 1 -.4 -.2 * .2 .8 6 7 Corporate bonds..................................................... .4 * .4 .2 .7 .6 .2 -.2 1.5 .2 . 1 -2.2 7 8 Commercial paper.................................................. .5 * .3 1.2 -.4 -.3 -.3 -1.4 .7 -.3 -.3 .8 8 9 Net share issues 4............................................................ 3.7 3.0 5.8 4.8 2.6 1.2 -.6 .3 2.1 -.8 -.4 -2.2 9 Security brokers and dealers 1 Net acquisition of financial assets................................. .9 3.4 3.8 -3.1 .8 1.3 4.3 .7 1.9 5.7 3.0 -6.2 1 2 Demand deposits and currency............................... .1 .2 .5 -. 1 -.3 * * * .1 * * * 2 3 Corporate equity shares............................................ . 1 .4 -.2 .4 . 1 . 1 .1 1.8 -1.5 .4 -. 1 .4 3 4 Credit market instruments........................................ .8 -.3 .6 .1 2.3 -1.4 .2 -2.9 .2 -1.5 2.0 -1.2 4 5 U.S. Government securities................................. .7 -.8 .8 * 1.7 -1.6 .2 -3.8 .6 -1.4 1.8 -1.2 5 6 State and local Government securities............... * * * -.2 .6 . 1 -. 1 -.9 1.1 -.5 .3 -.4 6 8 7 Corporate and foreign bonds............................... .1 * 3. . 2 4 - 2 . . 2 8 -3. . 5 4 -1. . 3 1 2. .1 5 3. . 9 1 1 1. . 8 9 -1 3 . . 5 1 6. . 9 4 - 1 . . 0 1 -5. . 5 4 8 7 9 Net increase in liabilities—security credit................... .8 3.2 3.5 -3.0 1.0 1.1 4.1 .6 1.7 5.5 2.7 -6.5 9 10 From banks................................................................ .6 .8 1.0 -1.0 1.9 .7 3.9 -.2 1.6 5.4 2.5 -5.5 10 11 Customer credit balances.......................................... .2 2.3 2.4 -2.0 -1.0 .5 .2 .8 . 1 .1 .2 -1.0 11 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. For other notes see p. A-71.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.13 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973? Category 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Rest of the world 1 Net U.S. exports............................................................. 5.3 5.2 2.5 1.9 3.6 .8 -4.6 2.2 -.6 -5.6 -3.6 .9 1 2 U.S. exports................................................................. 43.4 46.2 50.6 55.5 62.9 66.3 73.5 66.5 66.0 70.1 76.8 92.4 2 3 U.S. imports................................................................. 38.1 41.0 48.1 53.6 59.3 65.5 78.1 64.4 66.6 75.7 80.4 91.6 3 4 Transfer receipts from United States......................... 2.8 3.0 2.9 2.9 3.2 3.6 3.7 3.3 3.9 3.8 3.7 3.2 4 5 Current account balance (4-1) 1................................. -2.4 -2.2 .4 1.0 -.4 2.8 8.4 1.2 4.4 9.4 7.3 2.3 5 6 Net financial investment.................................................. -2.0 -1.2 .9 3.4 .8 13.6 11.4 8.7 18.5 10.0 12.9 10.2 6 7 Net acquisition of financial assets............................... 3.3 7.6 8.5 10.3 5.9 22.7 19.4 18.1 27.3 17.0 21.7 23.3 7 8 Gold and SDR’s 2.................................................. .6 1.2 1.2 -1.0 .8 1.3 .6 1.8 .9 1.1 * * 8 9 U.S. demand deposits and currency................... .4 .3 .6 .3 .2 .3 1.5 . 1 .5 2.1 .9 -.2 9 10 Time deposits........................................................... .3 1.2 -.3 1.1 -1.7 .5 2.6 .7 .4 1.9 3.4 3.8 10 11 U.S. corporate shares............................................ -.3 .7 2.1 1.6 .7 .8 2.3 .2 1.5 1.7 2.8 2.9 11 12 Credit market instruments.................................... -1.6 2.0 .3 -.3 10.3 26.4 8.4 27.3 25.5 6.2 10.6 12.4 12 13 U.S. Government securities............................. -2.4 2.1 -.5 -1.8 9.1 26.3 8.4 26.4 26.2 6.1 10.7 9.5 13 14 U.S. corporate bonds 3..................................... .6 -.1 .2 .5 .7 .3 * .2 .3 .2 -. 1 1.3 14 15 Acceptances......................................................... .2 * .6 1.0 .5 -.2 -. 1 .7 -1.1 -. 1 * 1.6 15 16 Security credit.......................................................... * .1 .3 -.2 -.1 * . 1 . 1 -.2 * . 1 * 16 17 Trade credit.............................................................. .5 .4 .9 .8 1.4 . 1 .8 -.5 .7 .7 .9 1.2 17 18 Bank liabilities to foreign affiliates..................... 2.9 .7 2.3 7.9 -6.9 -4. 1 .9 -8.0 -.2 1.5 .4 -.5 18 19 Direct investment in United States..................... . 1 .3 .3 .8 1.0 -. 1 .2 .3 -.5 -.4 .7 .9 19 20 Unallocated.............................................................. .4 .7 .7 -.8 .3 -2.6 2. 1 -3.8 -1.3 2.2 1.9 2.9 20 21 Financial sources off unds, net.................................... 5.3 8.8 7.6 6.9 5.1 9.1 7.9 9.4 8.8 7.1 8.8 13.2 21 22 Official U.S. foreign exchange............................. * 1.1 2.1 .3 -2.5 -1.7 -.2 -1.6 -1.8 . 1 -.4 -.5 22 23 Foreign corporate shares...................................... -.3 . 1 .2 .5 .1 * -.4 .4 -.3 -.2 -.6 -.9 23 24 Credit market instruments.................................... 1.6 4.0 2.9 2.9 3.0 5.7 3.8 5.3 6.1 3.4 4.3 10.7 24 25 Corporate bonds................................................. .7 1.2 1.1 1.0 .9 .9 1.0 1.1 .8 1.8 .2 .7 25 26 Bank loans n.e.c.................................................. -.4 -.3 -.2 -.6 * 2.6 2.4 1.4 3.9 1.9 2.9 6.9 26 27 Other loans 4....................................................... 1.2 3.0 2.1 2.4 2.1 2.1 .4 2.9 1.4 -.3 1.1 3.1 27 28 * .2 .2 -.2 * * . 1 * * .1 . 1 * 28 29 Trade debt................................................................ .3 .5 .4 .8 1.0 .5 .6 .6 .5 .2 .9 -.6 29 30 U.S. Government equity in IBRD, IDA, IFC, IADB, ADB..................................................... .1 .1 .2 .2 .3 .3 .2 .3 .2 .3 .3 30 31 Foreign currency held in United States............ .4 -.1 .5 -.5 .5 1.4 3.6 1.7 1.0 4.2 2.9 1.1 31 32 U.S. direct investment abroad 3.......................... 3.0 2.7 1.1 2.2 3.6 3.8 1.4 4.1 3.4 .7 2.1 6.5 32 33 Unallocated 5........................................................... .2 .2 .2 .7 -.7 -.8 -1.2 -1.2 -.4 -1.6 -.8 -3.5 33 34 Discrepancy...................................................................... -.4 -1.0 -.5 -2.3 -1.2 -10.8 -3.1 -7.5 -14. 1 -.6 j -5.6 -7.9 34 Note.—Data revised for all periods; 1973 HI based on preliminary and incomplete information. Notes to Table 4 Households ondary market operations only), and mortgage pools issuing GNMA- 1 Imputed saving associated with growth of government life insurance guaranteed securities. and retirement reserves. 2 From open-end investment companies. Banking 3 Excludes corporate equities. 1 Federal Reserve System plus those Treasury accounts included in 4 Policy loans, hypothecated deposits, and U.S. Govt, loans to nonprofit “Member Bank Reserves, Federal Bank Credit, and Related Items” organizations. (p. A-4). Excludes Exchange Stabilization Fund, which is in U.S. Govt, accounts. Business 2 Includes F.R. holdings of foreign currencies. On Special Drawing 1 Excludes imputed rental income from owner-occupied houses. Rights, see notes 5 and 7 to Governments table. SDR certificates as assets 2 Change in work in process. of the Federal Reserve are on line 4 of this table. 3 After inventory valuation adjustment. 3 Includes vault cash of nonmember banks. 4 Includes corporate farms. 4 IMF deposits are net in line 3. 5 Noncorporate net income is treated as payment in full to proprietors 5 Combined statement for all commercial banks as reported on p. in the household sector. Gross saving consists of capital consumption A-20, their domestic affiliates as reported on p. A-31 for loans sold and allowances plus, in farm business, corporate farm retained profits. commercial paper issued, Edge Act corporations, U.S. agencies of 6 Shares in FICB’s, Banks for Coops, and land banks. foreign banks, and banks in U.S. possessions overseas. The figures 7 Loans from U.S. Govt., commercial loans from finance companies, consolidate commercial banks, but claims between commercial banks and bankers’ acceptances. and the other groups included in the sector are shown in both lending 8 Includes earnings retained in business; see note 5 above. and borrowing in the statement. 9 Loans to commercial banks. 6 Net of F.R. float, shown separately in line 31. 10 Foreign investment excludes amounts financed by bond issues 7 Net issues of bonds and equities, commercial paper of bank affiliates, abroad, and bond issues outside the U.S. are excluded from financial borrowings from nonbank lenders in security RP’s, and bank loans to sources of funds above. foreign banking agencies. Governments Nonbank finance 1 Retirement funds are on p. A-71.11. 1 Excludes deposits at FHLB, which are included in Miscellaneous, 2 Unified budget basis for all years. Excludes sponsored agencies line 9. shown below. 2 Federal funds and other loans to commercial banks. 3 Govt, life insurance, employee retirement, and R.R. retirement 3 Used as a measure of net increase in liabilities to households. programs. 4 Includes retained capital gains dividends. 4 Securities of sponsored credit agencies only. 5 Mainly official foreign exchange and IMF position of Treasury. Rest of the world Includes net purchases of Special Drawing Rights, which are assets of 1 The current balance is shown here from the viewpoint of the rest of the Exchange Stabilization Fund. 1970-72 allocations of SDR’s are ex­ the world and is thus opposite in sign from U.S. balance of payments cluded, however, from these tables on transactions. Includes trade credit statements and U.S. national income accounts. Excludes capital trans­ (advances and prepayments) to corporate business. fers to U.S., for SDR allocations. 6 Loan participation certificates and securities issued by Export-Import 2 Net purchases of gold and Special Drawing Rights from the U.S. only. Bank, GNMA, CCC, Federal Housing Administration, Postal Service, Excludes acquisitions of gold from outside the U.S. Also excludes 1970-72 and TVA. Includes mortgage liabilities of Defense Dept, and Coast Guard allocations of SDR’s. and Farmers Home Administration insured notes. 3 Net of U.S. issues in foreign markets to finance U.S. investment 1 Includes net sales of SDR certificates to Federal Reserve System. abroad. 8 Home loan banks, land banks, intermediate credit banks, banks for 4 Bankers’ acceptances and loans from U.S. Government. cooperatives, Federal National Mortgage Association (before 1969, sec­ 5 Errors and omissions in U.S. balance of payments statement. Digitized for FRANSOERTE .—Quarterly figures and background informa- the Flow of Funds Section, Board of Governors of the tion concerning these tables are available on request to Federal Reserve System, Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1972 (Amounts outstanding in billions of dollars) (A) All sectors Private domestic nonfinancial sectors Financial sectors Rest U.S. State of the Government Federally Private Total1 Discrepancies Sector Households Business and local Total world Total sponsored Monetary Commercial nonbank governments credit authority banks finance agencies Transaction category A L A L A L A L A L A L A L A L A L A L A L A L A t siccptv 2413.1 470 9 86 7 2970.7 182.1 97.7 1870.3 56.9 ......... 96.4 655.0 ......... 1061.9 5120.8 13.9 1 2 Total liabilities....................... 590.0 814 4 186.1 1590 5 168 2 396 4 1755.2 55.8 ......... 95.9 618.3 985.1 3910.3 2 3 Gold 43.5 ......... 2.0 . ... 10.4 ......... 10.4 ......... 55.9 3 4 Official foreign exchange.. ....................2 * .2 ......... .2 ......... .2 .2 4 5 IMF position......................... ......... .5 .5 -.1 ......... -.1 ......... .5 .5 5 6 Treasury currency................. ......... 7.0 8.7 ......... 8.7 ......... 8.7 7.0 -1.7 6 7 Demand dep. and currency 156.5 ......... 55.3 14.6 226.3 . . 8.0......... 13.3 ......... 17.0 281.4 .2 ......... ......... 60.4 .7 220.9 16.1 264.6 281.4 16.8 7 8 Private domestic............... 156 5 55.3 14.6 226.3 . . . 17.0 260.3 .2 ......... ......... 57.9 .7 202.5 16.1 243.3 260.3 17.0 8 9 U S Government 13.3 ......... ......... 13.1 ......... 2.2 ......... 10.9 13.3 13.1 -.3 9 IO Pnrpi an 8.0 ......... ......... 8.0 ....................4 7.6 8.0 8.0 10 11 Time and savings accounts 568 6 20 2 37 2 625.9 9.8 .6 1.1 637.4 ......... 316.8 1.1 320.6 637.4 637.4 11 12 At commercial banks.... 248 6 20 2 37 2 306.0 9.8 .6 .4 316.8 ......... 316.8 .4 ......... 316.8 316.8 12 13 At savings institutions.. . 319 9 319.9 .7 320.6 .7 320.6 320.6 320.6 13 14 Life insurance reserves........ 143 7 143.7 ......... 7.5 136.2 ......... 136.2 143.7 143.7 14 15 Pension fund reserves.......... 309 2 309.2 ......... 33.5 275.6 ......... 275.6 309.2 309.2 15 49.3 49.3 6.0 34.3 43.3 14.9 49.3 49.3 ......... 16 1 7 Pnmnrafp charp'c 2 967 3 967.3 ......... 26.0 ......... 235.0 59.8 .6 234.4 59.8 1228.3 59.8 17 231.5 560.1 65.9 602.8 32.5 178.6 329.9 1341.5 61.0 61.7 61.6 344.7 1453.3 158.0 54.3 49.4 71.2 566.1 13.1 761.8 95.5 1905.8 1905.8 18 19 U.S. Govt, securities 3... 92.2 7 0 28 4 127 6 54.4 .. * 343.3 210.6 49.4 1.3 49.4 71.1 90.0 ......... 48.2 ......... 392.7 392.7 19 20 State & local govt, oblig. . 46.0 4 2 1.9 173.0 52.1 173.0 120.9 ......... 89.1 ......... 31.8 173.0 173.0 20 91 JPr fan KnnHc 54 8 198 3 54.8 198.3 2.4 16.2 194.8 37.6 5.7 4.1 189.1 33.5 252.1 252.1 21 99 T-TntYtp mnrtqqope 9.8 334.8 6 2 2 2 12.0 341.0 5.1 1.3 331.5 6.2 25.2 ......... 57.0 ......... 249.3 6.2 348.6 348.6 22 OI OtVipr mnrtQJiQPQ 27.5 23.1 195 9 27.5 219.0 4.2 188.5 1.2 11.4 ......... 42.3 ......... 134.7 1.2 220.2 220.2 23 OA Pnnciitnpr prpHit 157 6 28 6 28.6 157.6 129.0 70.6 ......... 58.3 ......... 157.6 157.6 24 9^ IJonV Insns n p p 21 0 147 4 ......... 168.4 ......... 11.2 203.8 24.1 203.8 2.9 21.2 203.8 203.8 25 9^ Otlipr 1.1 23.6 26.2 55.0 ......... 5 5 27.3 84.2 4.1 34.3 52.3 74.2 39.5 16.4 ......... .1 7.5 6.1 50.3 33.3 157.9 157.9 26 9*7 rrPfiit 5.0 17.7 5.0 17.7 .4 .4 32.2 19.4 18.5 ......... 13.6 19.4 37.5 37.5 27 28 To brokers and dealers. . 5 0 5.0 .4 14.0 19.4 14.0 ......... ......... 19.4 19.4 19.4 28 X9Qy T1fUv .n.t..h..p..f.Q............................... 17 7 ......... 17.7 .4 18.1 4.5 ......... 13.6 18.1 18.1 29 IA Tqypc navahlp . . . 14.0 2.5 ... . 2.5 14.0 10.9 ......... ......... 2.7 ....................2 ......... 1.8 13.4 16.7 3.3 30 11 TfflHp pfpHit 4 . 6 2 215.2 183.1 7.5 215.2 196.9 6.7 7.3 4.0 3.4 5.0 ......... 5.0 230.9 207.5 -23.4 31 19 MicppllanpniK . . . 31.3 6.0 114.4 14.5 145.7 20.5 26.8 98.2 4.6 .3 58.3 135.4 2.5 6.4 1.0 25.8 51.8 30.0 76.1 235.4 254.4 19.0 32 For notes see facing page. A 71.14 FLOW OF FUNDS n SEPTEMBER 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, December 31, 1972—Continued (Amounts outstanding in billions of dollars) (B) Private nonbank financial institution i State and Real Savings Mutual Life Private local govt, Other estate Open-end Security Sector Total and loan savings Credit insurance pension retirement insurance Finance investment investment brokers assns. banks unions cos. funds funds cos. cos. trusts cos. and dealers Transaction category A L A L A L A L A L A L A L A L A L A L A L A L 1 Total assets................................... 1061.9 243.6 100.6 21.7 ......... 231.8 152.3 71.8 ......... 64.6 78.0 ......... 11.7 59.8 ......... 26 1 1 . 985 1 228 2 93 6 21 7 216.3 152.3 71 8 41 8 70 9 9 1 19 8 19 6 ^ 3 Demand deposits and currency 16.1 .......... 2.8 .......... 1.3 ___ 1.0 .......... 1.9 .......... 1.8 .......... .5 .......... 1.6 ........ 3.2 .......... .9 ......... 1 1 3 4 Time and savings accounts.. . . 1.1 320.6 207.3 .4 91.6 .7 21.7 4 65 A A t t c sa o v m in m g e s r i c n ia s l t i b tu a t n io k n s. s . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 .. 3 .. 2 .. 0 .. . . 6 . . 207.3 .4 91.6 .7 21.7 5 6 87 L Pe if n e s i i o n n su f r u a n n d c e r e re se se rv rv e e s. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 7 3 5 6 . . 6 2 . . . .. . 1 5 3 1 6 . . 6 2 .. .. 152.3 .......... 71.8 87 9 Corporate shares3...................... 234.4 59.8 3.6 .......... 26.4 .......... 111.8 .......... 14.2 .......... 20.5 .......... 51.7 59.8 6.2 .......... 9 1 1 1 0 Othe U r . c S r . e d G it o v m t, k t s . e i c n u s r t i r t . i . e .. s .. . . . . . . . . . . . . . . . . . . 7 4 6 8 1 .8 2 . 9 . 5 . . . 5 21 8 9 5 2 . .3 5 . . . . . . . . . . . . . . . . . . . 2 2 0 . . 2 0 .......... 19 3 2 . . 8 4 .. . . . . . . . . . . . . . . . . 3 3 4. . 1 7 . . . . . . . . . . . . . . . . . . . 5 5 7 . . 1 1 . .. . . . . . . . . . . . . . . . . 3 3 7 . .2 5 53 0.6 .. ..... 16.174.8 70.6 10.6 8.8 7 2 25..10 1 1 1 0 1 13 2 H C St o o a r m t p e e . & a m n l o d o r c t f a g g l a n g g . o e b v s o . t . . n . .. d s .. s e .. . . c . . . . s . . . . . . . . . . . . . 2 1 4 3 8 1 9 9 . .1 3 8 ... 3 .. 6 . 3 . . . . 2 . 5 167.6 6.2 4 1 1 5 . . . 7 9 4 . . . . . . . . . . . . . . . . . . . . . .9 .......... 8 2 3 6 2 . . . 3 8 5 . . . . . . . . . . . . . . .. . . . . . . . . . . . 27 3 .0 4 .. . ... . ... . .. 43 1 .7 4 ......... 14 2 8 5 .0 8 ....... 11.1 32.1 2 6 .. 1 . 4 5 1 . . 2 . . . 2 9 ......... 1 1 1 3 4 2 15 Other mortgages................. 134.7 1.2 38 8 25.9 .......... 54.9 .......... 7.0 .......... 2 8.0 1.2 . . . 15 1 1 6 7 C Ba o n n k su l m oa e n r s c n re .e d . i c t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.3 ... 2 ... 1 .. . . 2 2.4 ...... 1 .. . . 9 . 1.5 ......... 16.9 . . 37.5 16.4 ......... 3.0 . . ... . ... . ... 1 1 7 6 18 Other loans.......................... 50.3 33.3 s o 9] 2 26.1 22.1 3 2 1 4 18 19 Security credit.............................. 13.6 19.4 13.6 19.4 19 20 To brokers and dealers......... 19 4 .......... 19.4 20 21 Other.......................................... 13 6 13.6 .......... 21 22 Taxes payable.............................. 1 8 3 8 .3 .3 ....................2 22 23 Trade credit.................................. 5.0 5.0 . ......................23 24 Miscellaneous.............................. 30.0 76.1 10.2 4.6 3.0 2.0 11.1 27.7 4.6 .......... 41 5 1.1 .3 ................24 i 1 Excess of total assets over liabilities consists of gold (row 3) and corporate shares (row 17) other budget (CCC, Export-Import Bank, GNMA, TVA, FHA) and by sponsored credit agencies in than investment co. shares less total discrepancies (row 1), which are not included in sector assets. Financial sectors, and loan participation certificates. Postal savings system deposits are included 2 Assets shown at market value; nonbank finance liability is redemption value of shares of open- in line 32. end investment companies. No specific liability is attributed to issuers of stocks other than open- 4 Business asset is corporate only. Noncorporate trade credit is deducted in liability total to con­ end investment companies for amounts outstanding. form to quarterly flow tables. 3 Includes savings bonds other nonmarketable debt held by the public, issues by agencies in the SEPTEMBER 1973 □ FLOW OF FUNDS A 71.15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.16 FLOW OF FUNDS □ SEPTEMBER 1973 6. SUMMARY OF CREDIT MARKET DEBT OWED BY NONFINANCIAL SECTORS1 (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Debt outstanding, by type and sector 1 Total credit market debt owed by nonfinancial sectors 789.0 842.6 900.6 967.5 1037.6 1102.8 1181.61276.9 1363.9 1456.8 1591.41747.8 1 2 U.S. Government........................................................... 243.1 250.2 254.1 260.4 262.2 265.8 278.8 292.2 288.6 301.4 327.4 344.7 2 3 240.7 246.9 251.0 256.4 257.7 260.0 268.9 279.2 278.0 290.8 316.9 330.8 3 4 Budget agency securities 2......................................... 2.5 3.3 3.2 4.0 4.5 5.8 9.9 13.0 10.6 10.5 10.5 13.9 4 5 All other nonfinancial sectors............................. 545.9 592.4 646.5 707.1 775.4 837.0 902.8 984.7 1075.3 1155.41264.01403.1 5 6 385.2 417.8 453.4 490.6 530.0 568.9 613.4 663.7 713.3 771.5 854.5 947.5 6 7 State and local govt, securities............................. 75.9 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.5 161.1 173.0 7 8 Corporate and foreign bonds............................... 86.1 91.7 96.6 101.6 108.0 118.6 133.5 147.3 159.3 180.5 200.7 214.5 8 9 223.2 244.9 269.9 296.1 321.7 344.4 366.3 393.2 420.9 446.6 492.7 560.0 9 10 150.0 162.7 177.9 193.5 208.9 220.6 232.1 247.1 262.8 275.6 301.3 341.0 10 11 23.0 25.8 29.0 33.6 37.2 40.3 43.9 47.3 52.0 57.8 66.6 76.9 11 1 2 36.4 41.1 46.2 50.0 54.5 60.1 64.8 71.3 76.6 81.9 91.9 106.7 12 n 13.9 15.2 16.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 32.9 35.4 13 14 Other private credit.................................................... 160.7 174.6 193.0 216.5 245.5 268.1 289.4 321.0 362.0 383.9 409.5 455.6 14 15 59.7 64.4 70.7 79.8 93.8 104.6 114.1 127.2 142.5 148.8 158.1 179.6 15 16 58.0 63.8 71.7 80.3 89.9 96.2 100.8 110.8 121.1 127.2 138.4 157.6 16 17 Open market paper................................................ 3.8 3.8 3.9 4.5 4.2 5.2 7.4 9.0 12.3 16.1 15.2 13.6 17 18 39.3 42.6 46.8 51.9 57.6 62.1 67.2 74.0 86.0 91.9 97.8 104.9 18 19 545.9 592.4 646.5 707.1 775.4 837.0 902.8 984.7 1075.3 1155.41264.01403.1 19 20 25.4 27.7 30.9 36.6 39.4 40.2 43.1 45.8 47.6 51.1 57.3 61.7 20 21 State and local governments.................................... 77.3 83.2 89.1 95.4 103.1 109.3 117.3 127.2 137.9 149.3 166.3 178.6 21 22 Households................................................................... 231.6 252.4 277.1 305.0 333.3 354.8 373.8 403.8 435.8 458.8 496.8 560.1 22 23 Nonfinancial business................................................ 211.6 229.1 249.3 270.1 299.7 332.7 368.6 407.9 454.0 496.3 543.7 602.8 23 24 Corporate....................................................................... 162.6 174.7 187.8 200.7 221.2 245.4 272.9 303.9 339.4 373.3 408.2 452.1 24 25 27.4 30.6 35.1 40.4 46.2 51.6 56.5 62.1 69.5 74.7 83.4 93.8 25 26 21.6 23.9 26.4 29.0 32.3 35.8 39.2 41.9 45.1 48.3 52.0 56.9 26 Holdings of credit market claims 3 1 Total credit market debt claims against nonfinancial 789.0 842.6 900.6 967.5 1037.6 1102.8 1181.61276.9 1363.9 1456.8 1591.4 1747.8 1 Holdings held by public agencies and foreign— 2 82.4 89.8 96.3 104.1 112.8 124.2 135.2 146.8 161.6 190.1 231.0 248.1 2 3 41.3 44.9 48.7 52.2 55.9 59.3 66.1 69.5 70.4 86.1 119.5 126.9 3 4 Residential mortgages................................................ 8.4 8.5 7.2 7.1 7.4 10.2 12.3 15.1 19.7 25.5 31.1 36.3 4 5 FHLB advances to S & L’s...................................... 2.7 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 5 6 Other loans plus securities........................................ 30.0 32.9 35.6 39.5 43.4 47.7 52.4 56.9 62.2 67.9 72.5 76.9 6 By agency— 7 28.3 30.8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.3 61.6 7 8 12.1 13.7 15.3 16.0 18.3 23.4 23.3 26.5 35.6 45.4 48.2 54.3 8 9 Federal Reserve........................................................... 28.9 30.9 33.8 37.2 41.0 44.5 49.3 53.0 57.2 62.2 71.0 71.2 9 10 13.0 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.5 61.0 10 11 Agency debt not in line 1.............................................. 8.6 10.1 11.5 12.1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 11 Private domestic holdings— 12 715.2 762.8 815.8 875.5 938.9 997.6 1064.8 1152.0 1232.9 1305.6 1403.5 1549.1 12 13 U.S. Govt, securities................................................... 208.8 213.5 215.1 218.3 218.2 223.6 229.3 242.6 247.3 252.6 249.6 265.9 13 14 75.9 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.5 161.1 173.0 14 15 Corporate and foreign bonds.................................. 85.5 91.0 95.9 100.7 107.3 117.3 132.5 146.4 158.9 178.8 198.4 212.0 15 16 Residential mortgages................................................ 166.0 181.8 201.5 221.9 240.5 252.5 265.4 281.0 296.7 309.5 338.3 382.9 16 17 Other mortgages and loans...................................... 181.7 198.8 221.2 247.1 278.7 305.3 328.2 364.0 406.3 430.8 464.1 523.3 17 18 Less—FHLB advances............................................... 2.7 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 18 Private financial intermediation— 19 Credit market claims held by private fin. inst............. 534.3 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.51066.2 1177.7 1327.9 19 20 Commercial banking.................................................. 212.9 231.9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.1 20 21 Savings institutions..................................................... 121.1 135.1 152.5 168.7 183.0 191.3 206.2 221.7 236.0 252.8 294.3 342.9 21 22 Insurance and pension funds.................................... 169.7 181.0 192.7 205.5 219.1 234.6 247.5 261.6 273.9 291.1 305.2 321.2 22 23 Other finance............................................................... 30.5 34.3 37.9 43.1 49.3 53.8 53.5 60.4 70.9 76.6 81.9 97.7 23 24 Sources of funds................................................................... 534.3 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.5 1066.21177.71327.9 24 25 Domestic deposits....................................................... 305.1 335.5 366.6 401.5 439.9 461.2 511.0 556.9 559.6 622.8 713.6 811.4 25 26 Credit market debt..................................................... 24.9 28.8 35.0 40.6 48.5 51.7 51.3 59.7 79.2 78.9 88.1 108.6 26 27 Other sources............................................................... 204.2 218.0 231.0 247.4 264.0 284.1 298.0 318.9 352.7 364.6 375.9 407.8 27 28 Foreign funds........................................................... 9.8 10.3 11.8 14.3 15.0 18.7 21.0 23.6 32.9 24.5 21.2 26.3 28 29 Treasury balances................................................... 5.9 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 29 30 Insurance and pension reserves............................ 140.9 150.0 159.6 170.5 181.5 195.7 206.5 216.9 228.5 241.9 250.0 259.5 30 31 Other, net................................................................. 47.6 50.5 53.0 56.0 61.9 64.6 65.4 73.5 86.3 90.3 94.5 111.1 31 Private domestic nonfinancial investors— 32 Credit market claims........................................................... 205.8 209.3 218.2 226.6 235.1 252.4 255.7 276.2 320.7 318.2 314.0 329.9 32 33 U.S. Govt, securities.................................................. 103.4 104.9 109.4 110.5 113.4 121.7 120.3 128.2 145.0 136.7 123.5 127.6 33 34 Municipal securities.................................................... 37.2 36.3 38.1 40.5 43.1 45.7 43.1 42.9 51.2 50.0 50.0 52.1 34 35 Corporate and foreign bonds................................... 11.3 11.2 11.2 11.8 13.4 15.2 19.0 23.8 31.1 41.2 49.5 54.8 35 36 Commercial paper....................................................... 3.0 3.8 4.6 6.9 8.4 10.7 12.6 18.4 28.6 24.2 23.6 27.3 36 37 Other.............................................................................. 50.9 53.1 54.9 56.8 56.7 59.0 60.7 62.8 64.7 66.1 67.4 68.1 37 38 Deposits and currency......................................................... 335.4 366.4 400.1 436.6 477.1 500.4 552.3 600.6 606.1 672.8 767.0 869.3 38 39 Time and savings accounts....................................... 194.2 222.3 251.0 280.1 312.8 332.0 371.2 405.0 402.8 459.0 540.2 625.9 39 40 Large negotiable CD’s............................................... 3.1 5.8 9.2 11.4 15.0 14.8 19.1 22.6 8.9 23.9 31.6 40.3 40 41 Other at commercial banks...................................... 76.6 89.0 99.2 110.2 126.2 138.3 156.6 174.1 177.6 201.7 234.7 265.7 41 42 At savings institutions................................................ 114.5 127.6 142.7 158.4 171.6 178.9 195.5 208.3 216.3 233.3 273.9 319.9 42 43 Money............................................................................ 141.2 144.0 149.0 156.5 164.3 168.3 181.1 195.6 203.3 213.8 226.8 243.4 43 44 Demand deposits.................................................... 111.0 113.2 115.6 121.4 127.1 129.2 139.8 151.9 156.7 163.8 173.4 185.5 44 45 Currency................................................................... 30.2 30.8 33.4 35.1 37.2 39.2 41.3 43.7 46.6 50.0 53.4 57.9 45 46 Total of credit market instruments, deposits, and currency..................................................................... 541.2 575.6 618.2 663.2 712.2 752.7 808.1 876.8 926.8 991.1 1081.1 1199.1 46 47 Public holdings as per cent of total............................ 10.4 10.7 10.7 10.8 10.9 11.3 11.4 11.5 11.9 13.0 14.5 14.2 47 48 Private fin. intermediation (in per cent)..................... 74.7 76.3 77.5 78.8 80.1 79.9 80.8 81.2 80.4 81.7 83.9 85.7 48 49 Total foreign funds......................................................... 22.8 24.7 26.8 30.2 30.9 33.0 37.0 39.7 47.8 50.2 73.7 87.2 49 1 Excludes corporate equities both as assets and as liabilities. Digitized for FRAS2E InRc ludes U.S. Govt, liability for home mortgages not in U.S. Govt, securities on p. A-71.17. 3 For notes see p. A-71.2. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.17 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1961 1962 1963 1964 1965 1966 1967 j 1968 1969 1970 1971 1972 Demand deposits and currency 1 Money supply................................................................... 154.6 158.5 163.8 172.2 180.5 184.7 198.6 214.6 222.3 234.0 248.3 268.3 1 2 Domestic sectors......................................................... 151.5 155.2 160.3 168.0 176.1 180.0 193.5 208.9 216.3 227.9 241.9 260.3 2 3 Households............................................................... 76.1 78.4 81.7 86.5 94.2 98.1 109.4 121.7 123.3 132.8 143.7 156.5 3 4 Nonfinancial business............................................ 46.0 46.4 46.5 47.0 47.4 47.7 49.3 51.2 53.8 54.3 55.1 55.3 4 5 Corporate............................................................. 27.7 28.0 28.3 28.6 28.9 29.2 30.7 32.4 34.9 35.2 35.9 36.0 5 6 Nonfarm noncorporate..................................... 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 6 7 Farm...................................................................... 5.8 5.9 5.7 5.9 6.0 6.0 6.1 6.3 6.4 6.5 6.6 6.8 7 8 State and local governments................................ 8.8 9.4 10.9 12.5 12.1 13.0 14.1 13.9 15.3 13.7 12.8 14.6 8 9 Financial sectors..................................................... 10.3 11.2 11.2 11.5 11.8 11.6 12.4 13.3 13.0 14.0 15.0 17.0 9 10 Mail float.................................................................. 10.3 9.9 9.9 10.4 10.5 9.5 8.3 8.8 10.9 13.0 15.3 17.0 10 11 Rest of the world........................................................ 3.1 3.2 3.5 4.2 4.4 4.8 5.1 5.7 6.0 6.2 6.5 8.0 11 12 6.8 8.1 7.8 7.9 7.0 6.6 7.7 6.5 7.0 9.5 12.7 13.1 12 13 Total assets....................................................................... 161.4 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.4 13 14 Net banking system liability........................................... 161.4 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.4 14 15 Monetary authorities.................................................. 31.4 32.1 34.9 36.8 38.8 41.2 44.2 45.7 48.9 52.0 56.4 60.4 15 16 Commercial banking.................................................. 130.0 134.5 136.7 143.4 148.6 150.1 162.2 175.4 180.4 191.6 204.6 220.9 16 Time deposits and savings accounts 1 197.8 226.5 256.1 286.5 319.7 338.8 379.6 412.9 411.5 466.5 548.7 637.4 1 2 Commercial banking liability................................... 83.0 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 2 3 Households............................................................... 67.3 79.9 89.4 101.1 115.9 127.9 146.0 163.4 161.5 189.0 218.8 248.6 3 4 Corporate business................................................. 6.9 8.4 10.8 10.8 13.1 11.7 13.8 14.2 11.8 13.5 17.1 20.2 4 5 5.5 6.5 8.1 9.8 12.2 13.5 15.9 19.1 13.2 23.2 30.4 37.2 5 6 U.S. Government.................................................... .3 .3 .3 .3 .3 .2 .3 .4 .2 .5 .5 .6 6 7 Mutual savings banks............................................ .2 .2 . 1 .2 .2 .2 .2 .2 .1 .3 .5 .4 7 8 2.9 3.4 4.3 5.4 6.0 6.3 7.6 7.3 8.4 6.7 7.2 9.8 8 9 Savings institutions liability...................................... 114.8 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.2 320.6 9 Liabilities: 10 Savings and loan associations......................... 70.9 80.2 91.3 101.9 110.4 114.0 124.5 131.6 135.5 146.4 174.5 207.3 10 11 Mutual savings banks........................................ 38.3 41.3 44.6 48.8 52.4 55.0 60.1 64.5 67.1 71.6 81.4 91.6 11 12 5.6 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 12 Assets: 13 Households........................................................... 114.5 127.6 142.7 158.4 171.6 178.9 195.5 208.3 216.3 233.3 273.9 319.9 13 14 .3 .4 .4 .5 .4 . 1 .3 . 1 * . 1 .3 .7 14 U.S. Government securities1 1 250.1 258.4 263.9 270.5 274.2 282.9 295.4 312.1 317.6 338.8 369.1 392.7 1 2 Included in public debt.............................................. 240.7 246.9 251.0 256.4 257.7 260.0 268.9 279.2 278.0 290.8 316.9 330.8 2 3 46.4 46.9 48.0 49.0 49.6 50.2 51.1 51.5 51.1 51.4 53.8 57.1 3 4 Direct excluding savings bonds........................... 194.2 200.0 202.9 207.4 208.1 209.8 217.8 227.7 226.8 239.4 263.0 273.7 4 5 98.9 99.8 101.1 105.8 108.8 110.2 118.9 119.4 128.4 133.8 130.4 143.5 5 6 Other direct.......................................................... 95.3 100.2 101.9 101.6 99.3 99.5 98.9 108.3 98.4 105.6 132.7 130.1 6 7 Other budget issues.................................................... 1.0 1.5 1.4 2.2 2.6 4.0 8.2 11.3 9.1 9.0 9.0 12.5 7 8 Sponsored agency issues 2........................................ 8.5 10.0 11.5 11.9 13.8 18.9 18.4 21.6 30.6 38.9 43.2 49.4 8 9 Total holdings, by sector................................................ 250.1 258.4 263.9 270.5 274.2 282.9 295.4 312.1 317.6 338.8 369.1 392.7 9 10 U.S Government (agency sec )............................... * * * * 1.4 1.3 1.4 . 1 * * * 10 11 1.4 1.8 2.2 1.8 1.9 2.9 2.9 2.7 2.5 4.2 2.7 1.3 11 12 Federal Reserve System............................................ 28.9 30.8 33.6 37.0 40.8 44.3 49.1 52.9 57.2 62.1 70.8 71.1 12 13 Short-term marketable.......................................... 18.3 20.7 25.6 28.2 31.9 36.5 39.2 32.6 37.6 38.5 39.5 41.2 13 14 10.6 10.1 8.0 8.8 8.9 7.8 9.9 20.4 19.5 23.7 3.7 28.7 14 15 Agency issues........................................................... .6 1.2 15 16 11.0 12.3 12.9 13.4 13.2 10.8 12.9 12.4 10.6 19.7 46.0 54.4 16 17 Short-term marketable.......................................... 7.1 9.2 8.7 8.5 7.6 6.7 7.6 5.9 3.7 11.5 25.4 27.7 17 18 3.9 3.1 4.2 4.9 5.6 4.1 5.3 6.5 7.0 8.2 20.6 26.7 18 19 103.4 104.9 109.4 110.5 113.4 121.7 120.3 128.2 145.0 136.7 123.5 127.6 19 20 46.4 46.9 48.0 49.0 49.6 50.2 51.1 51.5 51.1 51.4 53.8 57.1 20 21 Direct excluding savings bonds........................... 52.3 53.1 55.6 55.4 56.4 59.8 57.2 61.5 72.1 61.2 50.3 50.1 21 22 Short-term marketable...................................... 31.4 32.3 33.9 31.3 34.0 35.0 33.9 39.8 52.2 38.9 28.9 30.4 22 23 Other direct.......................................................... 20.9 20.8 21.7 24.1 22.4 24.8 23.4 21.7 19.9 22.3 21.4 19.7 23 24 Agency issues........................................................... 4.6 5.0 5.7 6.0 6.8 10.0 9.7 12.6 19.8 21.7 17.2 17.1 24 25 .2 .6 1.5 2.2 2.6 2.1 2.4 2.2 3.3 25 26 70.2 71.4 68.5 68.8 66.0 62.9 72.3 75.5 65.5 75.9 83.6 90.0 26 27 Short-term marketable.......................................... 33.4 27.7 24.0 28.2 26.2 21.4 26.9 28.5 24.2 30.0 25.0 30.5 27 28 33.8 39.4 39.8 35.4 34.0 35.4 36.4 36.8 31.4 32.5 40.6 37.6 28 29 2.9 4.4 4.7 5.2 5.8 6.1 9.0 10.2 9.9 13.4 17.9 22.0 29 30 Nonbank finance......................................................... 35.2 37.1 37.2 39.0 38.8 39.1 36.8 38.9 36.7 40.0 42.5 48.2 30 31 7.4 8.1 7.0 7.8 7.5 8.6 8.6 9.9 8.6 10.9 8.9 12.5 31 32 26.0 26.8 27.8 28.4 28.1 26.6 23.9 22.9 20.3 18.7 19.3 17.4 32 33 1.9 2.2 2.4 2.8 3.3 3.9 4.4 6.1 7.8 10.4 14.3 18.3 33 34 Memo: Held by private domestic nonfinancial banks, 208.8 213.5 215.1 218.3 218.2 223.6 229.3 242.6 247.3 252.6 249.6 265.9 34 1 Where not shown separately, loan participations are included with sector in flow of funds accounts. They are included in credit market debt agency issues. of financial institutions. 2 These issues are outside the budget and outside the U.S. Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.18 FLOW OF FUNDS □ SEPTEMBER 1973 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 State and local government securities 1 Total liability of State and local govts......................... 75.9 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.5 161.1 173.0 1 2 Short-term.................................................................... 3.7 3.7 4.1 4.9 5.5 6.2 8.0 8.1 10.9 13.3 15.7 14.7 2 3 Long-term..................................................................... 72.2 77.5 82.8 88.0 94.8 99.8 105.7 115.1 122.2 131.2 145.4 158.3 3 4 Total assets....................................................................... 75.9 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.5 161.1 173.0 4 5 Households................................................................... 32.0 31.0 32.0 34.6 36.4 40.0 37.7 37.0 46.1 45.6 44.7 46.0 5 6 Corporate business..................................................... 2.4 2.7 3.8 3.7 4.6 3.6 3.3 3.8 2.8 2.2 3.2 4.2 6 7 State and local governments, general funds......... 2.8 2.6 2.3 2.2 2.2 2.1 2.1 2.2 2.2 2.3 2.1 1.9 7 8 Commercial banking.................................................. 20.5 26.2 30.1 33.7 38.9 41.2 50.3 58.9 59.5 70.2 82.8 89.1 8 9 Mutual savings banks................................................ .7 .5 .4 .4 .3 .3 .2 .2 .2 .2 .4 .9 9 10 Life insurance companies.......................................... 3.9 4.0 3.9 3.8 3.5 3.1 3.0 3.2 3.2 3.3 3.4 3.3 10 11 Other insurance companies...................................... 9.1 9.9 10.6 11.0 11.3 12.6 14.1 15.1 16.3 17.8 21.7 25.0 11 12 State and local governments, retirement funds... 4.3 3.8 3.3 2.9 2.6 2.5 2.4 2.4 2.3 2.0 1.9 1.7 12 13 Brokers and dealers.................................................... .3 .5 .5 .7 .5 .5 .5 .5 .4 .9 1.0 .9 13 Corporate and foreign bonds 1 Total liabilities................................................................. 96.5 102.4 109.0 116.6 125.7 137.2 153.4 168.3 182.0 206.3 231.5 252.1 1 2 Corporate business. . . *............................................ 80.0 84.5 88.4 92.4 97.8 108.0 122.7 135.6 147.6 167.3 186.1 198.3 2 3 .2 .8 1.6 1.7 2.0 2.2 2.3 2.4 3 1 4.1 3 4 Finance companies..................................................... 10.4 10.7 12.2 14.3 16.1 16.9 17.9 18.8 20.3 22.9 26.7 32.1 4 5 REITS........................................................................... . 1 .6 1.0 1 4 5 6 Rest of the world........................................................ 6.2 7.2 8.2 9.2 10.2 10.5 10.8 11.7 11.7 13.2 14.6 16.2 6 7 Total assets....................................................................... 96.5 102.4 109.0 116.6 125.7 137.2 153.4 168.3 182.0 206.3 231.5 252.1 7 8 Households................................................................... 11.3 11.2 11.2 11.8 13.4 15.2 19.0 23.8 31.1 41.2 49.5 54.8 8 9 Commercial banking.................................................. .9 .8 .8 .9 .8 .9 1.7 2.0 1.9 2.7 4.0 5.7 9 10 Mutual savings banks................................................ 3.6 3.5 3.2 3.1 2.9 3.2 5.3 6.6 6.9 8.3 12.6 15.4 10 11 Life insurance companies.......................................... 50.7 53.2 56.0 58.3 61.1 63.5 67.3 71.2 72.7 74.1 79.6 86.8 11 12 Private pension funds................................................ 16.9 18.1 19.6 21.2 22.7 25.2 26.4 27.0 27.6 29.7 29.0 27.4 12 13 State and local governments, retirement funds... 8.8 10.7 12.8 15.0 17.4 20.2 23.9 26.5 29.6 33.8 38.6 43.4 13 14 Other insurance companies...................................... 1.7 2.1 2.0 2.4 3.0 3.6 4.3 5.5 6.3 8.6 8.9 8.8 14 15 Brokers and dealers.................................................... .4 .6 .8 .9 1.2 1.3 1.7 1.5 1.8 1.9 2.1 2.2 15 16 Investment companies................................................ 1.6 1.6 1.8 2.1 2.6 2.9 3.0 3.4 3.6 4.3 4.9 5.1 16 17 .6 .7 .7 .9 .7 1.3 .9 .9 .4 1.7 2.3 2.4 17 Corporate equities 1 Total at market value..................................................... 574.0 505.7 597.0 662.1 749.0 682.6 869.5 1027.6 909.7 902.4 1060.3 1228.3 1 2 Open-end investment co. shares.............................. 22.9 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 55.6 59.8 2 3 Other............................................................................. 551.1 484.4 571.8 633.0 713.8 647.8 824.8 974.9 861.4 854.8 1004.7 1168.5 3 4 Market value of holdings............................................... 574.0 505.7 597.0 662.1 749.0 682.6 869.5 1027.6 909.7 902.4 1060.3 1228.3 4 5 501.7 437.8 514.5 566.0 636.7 575.9 731.5 860.6 748.9 732.3 845.2 967.3 5 6 Mutual savings banks................................................ .9 1.0 1.2 1.3 1.4 1.5 1.7 1.9 2.2 2.5 3.0 3.6 6 7 Commercial banking.................................................. . 1 . 1 . 1 . 1 .2 .2 .3 .4 .4 .5 .5 .6 7 8 Life insurance companies.......................................... 6.3 6.3 7.1 7.9 9.1 8.8 10.9 13.2 13.7 15.4 20.5 26.4 8 9 Private pension funds................................................ 22.9 21.9 27.7 33.5 40.7 39.5 51.1 61.4 61.6 67.2 88.6 111.8 9 10 State and local governments, retirement funds... .6 .8 1.0 1.3 1.6 2. 1 2.8 4.1 5.9 8.0 11.2 14.2 10 11 Other insurance companies...................................... 9.3 8.6 10.0 11.4 12.0 11.0 13.0 14.6 13.3 13.2 16.6 20.5 11 12 Open-end investment companies............................. 20.3 18.3 22.1 25.6 30.9 28.9 39.2 46.1 40.9 39.7 47.5 51.7 12 13 Brokers and dealers.................................................... .2 .4 .9 1.2 1.8 2.1 3.6 5.7 4.8 4.8 5.9 6.2 13 14 Rest of the world........................................................ 11.8 10.3 12.5 13.8 14.6 12.6 15.5 19.6 18.1 18.7 21.3 26.0 14 Total mortgages 1 Total mortgage debt........................................................ 226.2 248.6 274.3 300.1 325.8 347.4 370.2 397.5 425.3 451.7 499.9 568.7 1 2 Savings and loan associations................................. 1.6 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.1 6.2 2 3 1>. 5 1.7 1.8 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.4 1.3 3 4 REITS ....................................................................... .2 .4 .5 .7 1.2 4 5 Private nonfinancial sectors..................................... 223.2 244.9 269.9 296.1 321.7 344.4 366.3 393.2 420.9 446.6 492.7 560.0 5 6 226.2 248.6 274.3 300.1 325.8 347.4 370.2 397.5 425.3 451.7 499.9 568.7 6 7 33.5 34.5 34.8 35.1 34.3 35.7 36.6 38.1 39.2 39.3 39.3 37.3 7 8 State and local governments, general funds......... 2.0 2.1 2.2 2.2 2.1 2.1 2.2 2.2 2.2 2.1 2.2 2.2 8 9 6.1 6.3 5.8 5.7 5.6 6.4 7.3 8.4 9.1 9.5 9.5 9.3 9 10 FNMA and land banks............................................ 5.7 5.9 5.4 5.7 6.8 9.4 11.1 13.3 17.8 23.6 29.9 36.6 10 11 30.4 34.5 39.4 44.0 49.7 54.4 59.0 65.7 70.7 73.3 82.5 99.3 11 12 68.8 78.8 90.9 101.3 110.3 114.4 121.8 130.8 140.2 150.3 174.4 206.4 12 13 Mutual savings banks................................................ 29.1 32.3 36.2 40.6 44.6 47.3 50.5 53.5 56.1 57.9 62.0 67.6 13 14 .4 .5 .5 .5 .6 .6 .7 .7 .7 .8 .8 .9 14 15 Life insurance companies.......................................... 44.2 46.9 50.5 55.2 60.0 64.6 67.5 70.0 72.0 74.4 75.5 77.3 15 16 Private pension funds................................................ 1.6 1.9 2.2 2.7 3.3 3.9 4.1 4.1 4.2 4.3 3.7 3.0 16 17 State and local governments, retirement funds... 1.9 2.2 2.6 3.1 3.7 4.5 5.0 5.4 6.0 6.8 7.1 7.0 17 18 Other insurance companies...................................... .2 . 1 . 1 . 1 . 1 . 1 .2 .2 .2 .2 .2 .2 18 19 2.2 2.7 3.5 3.9 4.5 3.9 4.3 4.9 5.7 5.9 7.0 11.1 19 20 REITS .............................................. .2 1.1 3.2 5.8 10.6 20 Bank loans not elsewhere classified 1 66.3■ 72.2 80.1 89.8 106.2 115.9 123.4 139.1 157.2 162.9 175.2 203.8 1 2 47.9 51.9 57.1 62.1 74.4 85.2 93.4 104.6 119.1 125.0 131.3 147.3 2 3 Households................................................................... 8.1 8.6 9.0i 10.4 11.8 12.1 13.7 15.9 17.2 17.7 18.1 21.0 3 4 3.7 3.9 4.5 7.3 7.7 7.3 7.0 6.8 6.2 6.2 8.8 11.2 4 5 Financial sectors......................................................... 6.1 7.8 9.5 10.0i 12.4 11.3 9.3 11.9 14.6 14.1 17.1 24.1 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.19 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1961 1962 1963 1964 1 1965 1966 1967 1968 1969 1970 1971 1972 Credit market debt claims 1 Credit market debt owed by— 789.0 842.6 900.6 967.5 1037.61102.8 1181.61276.9 1363.9 1456.81591.41747.8 1 243.1 ?50 2 254.1 260.4 262.2 265.8 278.8 292.2 288.6 301.4 327.4 344.7 2 3 25.4 11 1 30.9 36.6 39.4 40.2 43.1 45.8 47.6 51.1 57.3 61.7 3 4 520.5 564 7 615.6 670.4 736.0 796.8 859.7 938.9 1027.7 1104.4 1206.7 1341.5 4 5 77.3 83 2 89.1 95.4 103.1 109.3 117.3 127.2 137.9 149.3 166.3 178.6 5 6 231.6 ?5? 4 277.1 305.0 333.3 354.8 373.8 403.8 435.8 458.8 496.8 560.1 6 7 162.6 174 7 187.8 200.7 221.2 245.4 272.9 303.9 339.4 373.3 408.2 452.1 7 8 Nonfarm noncorp. business.................................. 27.4 30.6 35.1 40.4 46.2 51.6 56.5 62.1 69.5 74.7 83.4 93.8 8 9 Farm business.......................................................... 21.6 73,9 26.4 29.0 32.3 35.8 39.2 41.9 45.1 48.3 52.0 56.9 9 10 33.5 38 9 46.5 52.6 62.7 70.7 69.6 81.6 109.9 117.8 131.3 158.0 10 11 8.6 10 1 11.5 12.1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 11 P 4.4 5 6 7.6 7.8 8.7 8.7 7.0 8.2 12.3 14.1 14.1 16.1 12 1 3 20.4 23.1 27.2 31.2 36.5 39.6 40.8 46.5 55.4 57.0 61.2 70.6 13 14 REITS............................................................................ .3 .8 1.9 3.9 8.8 14 15 .2 1.4 3.3 3.2 3.3 4.6 6.3 3.0 4.8 7.6 15 16 4.2 2.3 2.0 2.6 16 17 * * * .1 .1 .1 .1 .2 .3 .4 2.1 2.9 17 18 822.5 881 4 947.1 1020.1 1100.3 1173.51251.3 1358.51473.81574.61722.71905.8 18 Held by— IQ 205.8 ?09 3 218.2 226.6 231.5 252.4 255.7 276.2 320.7 318.2 314.0 329.9 19 *>0 149.5 149 5 154.3 160.9 165.9 183.1 184.7 196.5 231.1 231.5 222.2 231.5 20 ?1 5.5 5,9 6.3 6.6 7.1 7.6 8.0 8.5 9.1 9.7 10.4 11.4 21 31.9 33.8 36.8 38.6 38.9 36.8 38.2 44.1 46.6 44.1 51.0 54.4 22 ?3 19.0 ?0 0 20.9 20.4 23.3 24.8 24.8 27.1 33.9 33.0 30.5 32.5 23 14 28.3 30 8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.3 61.6 24 ?5 575.3 677 0 681.7 742.7 811.6 864.8 932.9 1015.01084.31173.9 1297.01453.3 25 ?6 12.1 13 7 15.3 16.0 18.3 23.4 23.3 26.5 35.6 45.4 48.2 54.3 26 ~>1 28.9 30.9 33.8 37.2 41.0 44.5 49.3 53.0 57.2 62.2 71.0 71.2 27 ?8 212.9 ?31 9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.1 28 ?9 210.9 229.7 247.3 269.9 298.3 314.1 349.5 387.7 401.0 434.3 484.6 553.4 29 30 Bank affiliates........................................................... 3.9 3.0 2.8 2.6 30 31 Foreign banking agencies...................................... 1.8 1.9 1.7 1.8 2.0 2.4 2.8 3.2 4.5 7.2 7.3 8.1 31 32 Banks in U.S. possessions.................................... .3 .4 .5 .5 .6 .7 .9 1.0 1.2 1.3 1.6 1.9 32 33 Private nonbank finance............................................ 321.3 350.4 383.1 417.2 451.4 479.7 507.2 543.7 580.8 620.5 681.3 761.8 33 34 Savings and loan assns........................................... 75.6 85.9 99.2 110.2 119.8 124.4 133.4 143.3 153.2 164.7 194.1 230.6 34 35 Mutual savings banks............................................ 40.6 43.6 47.0 51.2 54.9 57.6 62.6 66.9 69.8 73.5 83.0 92.3 35 36 Credit unions........................................................... 4.9 5.6 6.3 7.2 8.2 9.4 10.2 11.5 13.1 14.6 17.2 20.0 36 37 Life insurance companies...................................... 110.9 116.9 123.3 130.2 137.7 145.4 152.8 160.5 167.2 174.2 182.3 192.4 37 38 Other insurance companies.................................. 16.5 17.8 18.6 19.4 20.5 22.0 23.5 25.4 27.0 30.9 34.6 37.5 38 39 Private pension funds............................................ 21.3 23.0 25.2 27.5 29.6 32.2 33.0 34.0 34.6 37.0 35.4 34.1 39 40 State and local governments rtr. funds............. 21.1 23.2 25.6 28.3 31.3 34.9 38.3 41.7 45.1 49.1 52.8 57.1 40 41 Finance companies................................................. 26.1 28.6 33.1 37.1 42.8 44.9 45.5 50.6 59.2 59.9 64.0 74.8 41 42 REITS........................................................................ .2 1.1 3.2 5.8 10.6 42 43 Open-end investment cos....................................... 2.3 2.6 2.7 3.0 3.8 5.4 4.8 5.8 6.7 7.2 7.2 7.2 43 44 Security brokers and dealers................................ 2.1 3.1 2.1 2.9 2.7 3.5 3.2 3.8 3.9 6.3 4.9 5.1 44 45 Rest of the world............................................................. 13.0 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.5 61.0 45 Total claims and their relation to total financial assets 1 Total credit market debt........................................ 822.5 881.4 947.1 1020.1 1100.31173.5 1251.31358.5 1473.8 1574.61722.71905.8 1 Other debt forms— 2 Foreign exchange......................................................... 1.8 1.2 1.2 1.2 1.6 1.6 2.8 4.8 5.1 2.6 .9 .7 2 3 Treasury currency....................................................... 2.7 2.8 2.8 2.8 3.1 4.0 4.6 5.1 5.3 6.0 6.4 7.0 3 4 Deposits at finan. insts............................................... 359.2 393.1 427.7 466.7 507.2 530.1 585.9 634.0 640.8 710.1 809.7 918.8 4 5 Banking system....................................................... 244.4 265.2 284.6 307.7 335.1 351.2 390.1 425.6 424.4 476.7 535.4 598.2 5 6 Demand dep. and currency.............................. 161.4 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.4 6 7 Time and svgs. deposits.................................... 83.0 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 7 8 Savings institutions................................................. 114.8 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.2 320.6 8 9 Insurance and pension reserves................................ 192.1 201.6 219.3 238.6 259.7 274.2 300.7 326.4 342.0 367.4 408.1 452.9 9 10 U.S. Government.................................................... 21.5 22.6 23.9 25.3 26.7 28.1 29.5 30.8 32.4 34.9 37.8 41.0 10 11 Insurance sector....................................................... 170.6 179.0 195.4 213.3 232.9 246.1 271.2 295.6 309.6 332.5 370.3 411.9 11 12 Security credit.............................................................. 13.1 13.9 16.7 16.8 18.0 18.7 25.8 32.3 25.7 24.9 28.7 37.5 12 13 Trade debt..................................................................... 84.0 89.3 97.3 105.1 118.1 130.2 141.4 160.3 180.6 187.2 191.8 207.5 13 14 Profit taxes payable..................................................... 16.5 18.0 19.2 20.4 22.1 22.3 17.4 20.4 17.3 14.2 16.0 16.7 14 15 Miscellaneous............................................................... 98.0 102.9 110.6 120.6 131.0 144.8 157.6 175.4 206.0 218.8 229.4 254.4 15 16 Interbank claims.......................................................... 24.1 25.5 24.6 26.0 26.6 28.9 31.6 35.3 37.2 41.7 47.3 49.3 16 17 Investment co. shares................................................. 22.9 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 55.6 59.8 17 18 Total debt above.............................................................. 1637.1 1750.91891.62047.52222.72363.12563.72805.12982.1 3195.03516.53910.3 18 Add—Financial assets not included in borrowing: 19 Other corporate shares.............................................. 551.1 484.4 571.8 633.0 713.8 647.8 824.8 974.9 861.4 854.8 1004.7 1168.5 19 20 Gold............................................................................... 41.1 41.5 42.3 43.0 43.2 43.2 41.6 40.9 41.0 44.7 48.1 55.9 20 Deduct—floats not included in assets: 21 Demand dep.—U.S. Govt......................................... -.3 * .1 -.4 . 1 -.2 -.6 -.1 -.7 -.7 -.8 -.3 21 22 Other.............................................................................. 10.3 9.9 9.9 10.4 10.5 9.5 8.3 8.8 10.9 13.0 15.3 17.0 22 23 Trade credit.................................................................. -8.5 -8.3 -7.1 -7.9 -9.6 -11.4 -10.8 -12.3 -17.7 -19.3 -19.1 -23.4 23 Deduct—liabilities not allocated as assets: 24 Treasury currency....................................................... -2.7 -2.7 -2.6 -2.4 -2.4 -2.2 -2.0 -1.7 -1.5 -1.6 -1.6 -1.7 24 25 Tax liabilities............................................................... 2.6 3.2 2.4 2.3 2.7 3.3 2.6 3.2 3.3 3.4 3.6 3.3 25 26 Miscellaneous............................................................... 3.6 2.3 2.3 2.6 4.4 5.1 5.0 7.2 16.9 14.2 14.6 19.0 26 27 Totals allocated to sectors as assets............................. 2224.32272.32500.92718.82974.23050.03427.53815.93873.44085.44557.25120.8 27 1 Excludes corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.20 FLOW OF FUNDS □ SEPTEMBER 1973 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Households, personal trusts, and nonprofit organizations 1 Total financial assets....................................................... 1116.2 1090.4 1218.3 1328.9 1463.61459.1 1692.5 1905.6 1852.1 1917.1 2145.42413.1 1 2 Deposits and credit market instruments 1................... 407.4 435.4 468.1 507.0 547.6 588.0 635.6 689.9 732.2 786.6 858.6 956.5 2 3 Demand deposits and currency............................... 76.1 78.4 81.7 86.5 94.2 98.1 109.4 121.7 123.3 132.8 143.7 156.5 3 4 Savings accounts......................................................... 181.8 207.5 232.1 259.5 287.5 306.8 341.5 371.7 377.8 422.3 492.7 568.6 4 5 At commercial banks............................................. 67.3 79.9 89.4 101.1 115.9 127.9 146.0 163.4 161.5 189.0 218.8 248.6 5 6 At savings institutions............................................ 114.5 127.6 142.7 158.4 171.6 178.9 195.5 208.3 216.3 233.3 273.9 319.9 6 7 Credit market instruments........................................ 149.5 149.5 154.3 160.9 165.9 183.1 184.7 196.5 231.1 231.5 222.2 231.5 7 8 U.S. Govt, securities.............................................. 72.7 72.8 76.3 79.3 81.8 89.6 90.8 96.3 108.5 100.8 87.8 92.2 8 9 Savings bonds...................................................... 46.4 46.9 48.0 49.0 49.6 50.2 51.1 51.5 51.1 51.4 53.8 57.1 9 10 Short-term marketable...................................... 10.6 10.2 12.6 11.8 14.4 15.5 14.2 22.7 34.6 21.1 10.6 12.0 10 11 Other direct.......................................................... 13.5 13.1 12.8 14.9 13.2 14.9 15.1 11.9 9.8 12.6 11.4 11.5 11 12 Agency issues....................................................... 2.2 2.6 2.9 3.7 4.6 9.0 10.3 10.2 13.0 15.7 12.0 11.6 12 13 State and local obligations.................................... 32.0 31.0 32.0 34.6 36.4 40.0 37.7 37.0 46.1 45.6 44.7 46.0 13 14 Corporate and foreign bonds............................... 11.3 11.2 11.2 11.8 13.4 15.2 19.0 23.8 31.1 41.2 49.5 54.8 14 15 Mortgages................................................................. 33.5 34.5 34.8 35.1 34.3 35.7 36.6 38.1 39.2 39.3 39.3 37.3 15 16 Commercial paper................................................... * .1 .1 * * 2.8 .6 1.4 6.1 4.6 .7 1.1 16 17 Corporate equities....................................................... 501.7 437.8 514.5 566.0 636.7 575.9 731.5 860.6 748.9 732.3 845.2 967.3 17 18 Investment company shares.................................. 22.9 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 55.6 59.8 18 19 Other corporate shares.......................................... 478.9 416.6 489.3 536.9 601.5 541.1 686.8 807.9 700.6 684.7 789.5 907.5 19 20 Life insurance reserves............................................... 88.6 92.4 96.6 101.1 105.9 110.6 115.4 120.0 125.0 130.3 136.4 143.7 20 21 Pension fund reserves................................................. 103.5 109.2 122.7 137.5 153.8 163.6 185.2 206.4 217.0 237.2 271.7 309.2 21 22 Security credit.............................................................. 1.2 1.2 1.5 1.7 2.5 2.7 4.9 7.0 5.2 4.4 4.9 5.0 22 23 Miscellaneous assets................................................... 13.8 14.3 14.8 15.7 17.0 18.2 19.8 21.6 23.8 26.3 28.7 31.3 23 24 Total liabilities................................................................. 243.1 264.0 291.1 319.2 348.7 370.8 394.2 427.9 457.5 479.6 521.0 590.0 24 25 Credit market instruments........................................ 231.6 252.4 277.1 305.0 333.3 354.8 373.8 403.8 435.8 458.8 496.8 560.1 25 26 Home mortgages..................................................... 147.7 160.4 175.1 191.1 206.3 219.0 229.4 244.0 260.1 272.5 296.4 334.8 26 27 Other mortgages...................................................... 10.1 11.0 12.0 13.1 14.2 15.5 16.7 17.8 19.1 20.5 21.7 23.1 27 28 Instalment consumer credit................................... 43.9 48.7 55.5 62.7 70.9 76.2 79.4 87.7 97.1 102.1 111.3 127.3 28 29 Other consumer credit........................................... 14.1 15.1 16.3 17.6 19.0 20.0 21.4 23.0 24.0 25.1 27.1 30.2 29 30 Bank loans n.e.c..................................................... 8.1 8.6 9.0 10.4 11.8 12.1 13.7 15.9 17.2 17.7 18.1 21.0 30 31 Other loans............................................................... 7.7 8.5 9.2 10.1 11.0 11.9 13.3 15.3 18.3 20.9 22.3 23.6 31 32 Security credit.............................................................. 6.7 6.6 8.6 8.4 9.1 9.0 12.7 15.6 12.2 10.4 13.1 17.7 32 33 Trade credit.................................................................. 2.2 2.4 2.5 2.8 3.0 3.3 3.7 4.2 4.7 5.2 5.7 6.2 33 34 Deferred and unpaid life insurance premiums.... 2.5 2.7 2.9 3.0 3.3 3.7 3.9 4.3 4.7 5.1 5.4 6.0 34 Nonfinancial business—Total 1 Total financial assets...................................................... 223.5 236.2 252.3 268.1 290.9 306.3 325.9 358.8 391.8 407.4 435.4 470.9 1 2 Demand deposits and currency............................... 46.0 46.4 46.5 47.0 47.4 47.7 49.3 51.2 53.8 54.3 55.1 55.3 2 3 Time deposits............................................................... 6.9 8.4 10.8 10.8 13.1 11.7 13.8 14.2 11.8 13.5 17.1 20.2 3 4 Credit market instruments........................................ 37.4 39.8 43.0 45.3 .45.9 44.4 46.2 52.6 55.7 53.8 61.3 65.9 4 5 Trade credit.................................................................. 88.0 92.6 98.8 107.0 121.0 133.0 141.3 160.0 182.7 189.8 195.4 215.2 5 6 Miscellaneous assets................................................... 45.2 49.1 53.2 58.0 63.5 69.4 75.3 80.8 87.9 96.0 106.5 114.4 6 7 Total liabilities................................................................. 307.8 330.9 360.7 389.2 433.5 477.4 518.4 578.8 640.9 686.3 739.7 814.4 7 8 Credit market instruments........................................ 211.6 229.1 249.3 270.1 299.7 332.7 368.6 407.9 454.0 496.3 543.7 602.8 8 9 Corporate bonds..................................................... 80.0 84.5 88.4 92.4 97.8 108.0 122.7 135.6 147.6 167.3 186.1 198.3 9 10 Home mortgages..................................................... 2.3 2.4 2.7 2.4 2.6 1.6 2.7 3.2 2.7 3.1 5.0 6.2 10 11 63.2 71.1 80.1 89.5 98.6 108.3 117.5 128.2 139.0 150.6 169.7 195.9 11 12 Bank loans n.e.c...................................................... 47.8 51.9 57.1 62.1 74.3 85.2 93.3 104.5 119.1 124.9 131.2 147.4 12 13 Other loans............................................................... 18.3 19.3 21.0 23.7 26.4 29.7 32.4 36.4 45.6 50.5 51.7 55.0 13 14 Trade debt, net............................................................ 73.9 78.2 85.9 92.8 104.9 115.2 124.2 141.6 159.9 165.2 168.9 183.1 14 15 Other liabilities............................................................ 22.4 23.6 25.5 26.4 29.0 29.4 25.6 29.3 27.0 24.7 27.0 28.5 15 i Excludes corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.21 8. SECTOR STATEMENTS OR FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Farm business 1 Total financial assets....................................................... 7.7 7.9 7.8 8.2 8.5 8.7 9.1 9.6 10.2 10.8 11.5 12.1 1 2 Demand deposits and currency............................... 5.8 5.9 5.7 5.9 6.0 6.0 6.1 6.3 6.4 6.5 6.6 6.8 2 3 Miscellaneous assets................................................... 1.9 2.0 2.1 2.3 2.5 2.7 3.0 3.3 3.8 4.3 4.8 5.3 3 4 Insurance receivables.............................................. 1.7 1.7 1.9 2.0 2.2 2.3 2.6 2.8 3.2 3.6 4. 1 4.6 4 5 Equity in sponsored agencies............................... .2 .2 .3 .3 .3 .4 .4 .5 .6 .6 .7 .8 5 6 Total liabilities................................................................. 25.5 28.4 31.5 34.5 38.4 42.8 47.1 50.0 53.9 58.1 63.0 68.9 6 7 Credit market instruments........................................ 21.6 23.9 26.4 29.0 32.3 35.8 39.2 41.9 45.1 48.3 52.0 56.9 7 8 Mortgages................................................................. 13.9 15.2 16.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 32.9 35.4 8 9 Bank loans n.e.c...................................................... 5.3 6.1 6.7 7.0 7.7 8.6 9.3 9.7 10.3 11.2 12.5 14.3 9 10 Other loans............................................................... 2.3 2.6 2.9 3.1 3.5 3.9 4.5 4.7 5.3 5.9 6.7 7.1 10 11 U.S. Government................................................ .7 .7 .8 .9 .9 .9 1.1 1.0 1.0 1.0 1.0 l.l 11 12 FICB and banks for coops............................... 1.7 1.8 2.1 2.2 2.5 2.9 3.4 3.7 4.3 5.0 5.7 6.1 12 13 Trade debt.................................................................... 3.9 4.5 5.1 5.5 6.1 7.0 7.8 8.1 8.8 9.7 11.0 12.0 13 Nonfarm noncorporate business 1 21.3 21.8 22.3 23.0 23.7 24.5 25.4 26.3 27.6 28.9 30.4 32.2 1 2 Demand deposits and currency............................... 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 2 3 5.5 5.9 6.3 6.6 7.1 7.6 8.0 8.5 9.1 9.7 10.4 11.4 3 4 3.2 3.3 3.5 3.8 4.1 4.4 4.8 5.3 6.0 6.7 7.5 8.2 4 5 Insurance receivables.............................................. 3.1 3.3 3.5 3.7 4.0 4.3 4.7 5.2 5.8 6.5 7.3 8.0 5 6 . 1 .1 . 1 . 1 . 1 . 1 . 1 . 1 .2 .2 .2 .2 6 7 29.5 32.7 36.8 41.7 46.8 51.0 56.7 62.2 68.4 72.7 80.3 90.4 7 8 Credit market instruments........................................ 27.4 30.6 35.1 40.4 46.2 51.6 56.5 62. 1 69.5 74.7 83.4 93.8 8 9 15.6 17.8 20.6 24.0 27.1 29.5 33.2 36.7 40.4 45.3 53.3 62.6 9 10 1.2 1.2 1.4 1.2 1.3 .8 1.4 1.6 1.4 1.5 2.5 3.1 10 11 Multifamily........................................................... 11.8 13.6 15.8 19.1 21.8 24.2 27.0 29.7 33.3 37.7 43.8 51.1 11 12 2.6 3.0 3.4 3.7 4.0 4.5 4.8 5.3 5.8 6. 1 7.0 8.4 12 13 Bank loans n.e.c...................................................... 4.2 4.5 5.2 5.7 6.6 8.0 8.6 9.7 11.8 11.2 11.4 12.1 13 14 7.7 8.3 9.3 10.8 12.4 14.1 14.7 15.8 17.2 18.2 18.7 19.1 14 15 2.1 2.1 1.7 1.3 .6 -.6 .2 . 1 -1.0 -2.0 -3.1 -3.4 15 16 15.9 15.7 15.3 15.2 14.6 13.9 15.1 13.9 13.4 12.9 12.1 11.8 16 17 Trade receivables.................................................... 13.8 13.6 13.6 13.9 14.0 14.5 15.0 13.9 14.4 14.8 15.2 15.1 17 Corporate nonfinancial business 1 194.5 206.5 222.2 237.0 258.7 273.0 291.5 322.8 354.0 367.7 393.6 426.6 1 2 56.5 59.6 64.2 65.1 67.8 64.1 68.8 76.7 78.9 77.8 88.4 93.5 2 3 Demand deposits and currency........................... 27.7 28.0 28.3 28.6 28.9 29.2 30.7 32.4 34.9 35.2 35.9 36.0 3 4 Time deposits........................................................... 6.9 8.4 10.8 10.8 13.1 11.7 13.8 14.2 11.8 13.5 17.1 20.2 4 5 U.S. Govt, securities.............................................. 16.5 16.8 16.7 15.2 12.7 11.5 8.9 9.3 7.0 7.3 9.4 7.0 5 6 Open market paper................................................ 3.0 3.7 4.6 6.3 6.7 6.5 10.7 14.8 18.9 19.4 21.8 23.5 6 7 Security R.P.’s......................................................... .6 1.7 1.5 1.3 2.2 3.6 .2 1.1 2.7 7 8 2.4 2.7 3.8 3.7 4.6 3.6 3.3 3.8 2.8 2.2 3.2 4.2 8 9 9.9 10.6 11.6 12.9 13.2 13.7 14.0 14.0 14.3 15.0 15.6 17.1 9 10 88.0 92.6 98.8 107.0 121.0 133.0 141.3 160.0 182.7 189.8 195.4 215.2 10 11 40.1 43.8 47.5 51.9 56.9 62.3 67.4 72.2 78.1 85.1 94.2 100.9 11 12 34.7 37.2 40.7 44.4 49.2 53.9 58.3 61.6 66.6 73.0 79.6 83.3 12 13 Foreign currencies.................................................. .2 .8 .7 1.1 .8 .9 1.1 1.6 1.3 .9 2.3 4.1 13 14 5.1 5.7 6.0 6.4 6.8 7.3 8.0 8.8 9.9 10.8 11.9 13.0 14 15 . 1 . 1 .1 . 1 .1 .1 . 1 .2 .2 .3 .4 .4 15 16 252.9 269.9 292.3 313.0 348.3 383.6 414.6 466.6 518.6 555.5 596.4 655.2 16 17 162.6 174.7 187.8 200.7 221.2 245.4 272.9 303.9 339.4 373.3 408.2 452.1 17 18 80.0 84.5 88.4 92.4 97.8 108.0 122.7 135.6 147.6 167.3 186.1 198.3 18 19 36.0 40.5 45.4 49.0 52.8 57.1 61.6 67.2 71.8 77.0 88.5 104.1 19 20 1.2 1.2 1.4 1.2 1.3 .8 1.4 1.6 1.4 1.5 2.5 3.1 20 21 11.2 12.2 13.2 14.5 15.3 16.1 16.9 17.5 18.7 20.2 22.8 25.8 21 22 23.6 27.1 30.8 33.3 36.2 40.2 43.3 48.1 51.8 55.3 63.2 75.2 22 23 38.4 41.3 45.2 49.4 60.1 68.6 75.5 85.2 97.0 102.6 107.4 120.9 23 24 1.5 1.6 1.3 1.5 1.2 2.2 3.7 5.3 8.0 10.6 9.1 8.6 24 25 5.9 5.6 6.3 7.0 7.6 7.5 7.2 9.0 13.3 13.7 15.6 18.4 25 26 .9 1.1 1.2 1.4 1.7 2.0 2.2 1.7 1.8 2.1 1.6 1.8 26 27 15.0 15.9 17.5 18.0 20.2 20.4 15.6 18.5 15.2 11.5 13.3 14.0 27 28 67.9 71.7 79.1 86.0 98.1 108.7 116.2 133.4 152.2 157.5 161.1 174.5 28 29 7.4 7.6 7.9 8.4 8.8 9.1 9.9 10.8 11.8 13.3 13.7 14.5 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.22 FLOW OF FUNDS □ SEPTEMBER 1973 8. SECTOR STATEMENTS OR FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 | 1967 1968 1969 1970 1971 1972 State and local governments-—General funds 1 1 Total financial assets....................................................... 34.7 37.3 41.5 44.6 49.6 53.5 57.3 63.3 65.0 71.6 75.7 86.7 1 2 Demand deposits and currency............................... 8.8 9.4 10.9 12.5 12.1 13.0 14.1 13.9 15.3 13.7 12.8 14.6 2 3 Time deposits............................................................... 5.5 6.5 8.1 9.8 12.2 13.5 15.9 19.1 13.2 23.2 30.4 37.2 3 4 Credit market instruments........................................ 19.0 20.0 20.9 20.4 23.3 24.8 24.8 27.1 33.9 33.0 30.5 32.5 4 5 U.S. Government securities................................. 14.2 15.3 16.4 16.0 18.9 20.6 20.5 22.7 29.5 28.6 26.3 28.4 5 6 Direct..................................................................... 13.3 14.5 15.4 15.2 18.1 20.4 19.8 19.3 22.9 22.5 21.3 22.7 6 7 Agency issues....................................................... .9 .8 1.0 .8 .9 .2 .7 3.3 6.7 6.1 5.0 5.7 7 8 State and local obligations................................... 2.8 2.6 2.3 2.2 2.2 2.1 2.1 2.2 2.2 2.3 2.1 1.9 8 9 Home mortgages..................................................... 2.0 2.1 2.2 2.2 2.1 2.1 2.2 2.2 2.2 2.1 2.2 2.2 9 10 Taxes receivable........................................................... 1.4 1.5 1.7 1.9 2.1 2.3 2.5 3.2 2.5 1.7 2.0 2.5 10 11 Total liabilities................................................................. 80.0 86.0 92.2 98.7 106.7 113.5 122.1 132.6 143.8 155.6 173.2 186.1 11 12 Credit market instruments........................................ 77.3 83.2 89.1 95.4 103.1 109.3 117.3 127.2 137.9 149.3 166.3 178.6 12 13 State and local obligations.................................... 75.9 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.5 161.1 173.0 13 14 Short-term............................................................ 3.7 3.7 4.1 4.9 5.5 6.2 8.0 8.1 10.9 13.3 15.7 14.7 14 15 Other..................................................................... 72.2 77.5 82.8 88.0 94.8 99.8 105.7 115.1 122.2 131.2 145.4 158.3 15 16 Other loans (U.S. Government).......................... 1.5 2.0 2.2 2.5 2.8 3.4 3.6 4.0 4.7 4.8 5.2 5.5 16 17 Trade debt.................................................................... 2.7 2.8 3.0 3.3 3.7 4.2 4.8 5.4 5.9 6.4 6.9 7.5 17 U.S. Government 1 Total financial assets....................................................... 56.3 60.3 63.9 68.3 71.2 75.5 78.9 85.9 89.6 91.0 95.2 97.7 1 2 Gold and official U.S. foreign exchange............... 1.9 1.2 1.2 1.0 1.1 .9 1.3 3.3 4.7 3.6 2.1 2.6 2 3 Demand deposits and currency............................... 7.2 8.1 7.7 8.3 6.9 6.8 8.3 6.6 7.7 10.2 13.5 13.3 3 4 Time deposits............................................................... .3 .3 .3 .3 .3 .2 .3 .4 .2 .5 .5 .6 4 5 Credit market instruments........................................ 28.3 30.8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.3 61.6 5 6 Sponsored credit agency issues............................ * * * * 1.4 1.3 1.4 .1 * * * 6 7 Home mortages....................................................... 4.4 4.5 4.1 4.0 3.9 4.5 5.2 6.0 6.1 6.0 5.7 5.1 7 8 Other mortgages..................................................... 1.7 1.7 1.7 1.7 1.7 1.9 2.1 2.4 3.0 3.5 3.8 4.2 8 9 Other loans............................................................... 22.2 24.5 26.3 29.2 32.0 34.3 38.0 41.3 44.7 47.2 49.8 52.3 9 10 To rest of the world........................................... 13.8 14.9 16.0 17.5 19.0 19.8 22.3 24.4 26.5 27.8 29.6 31.1 10 11 To others.............................................................. 8.4 9.6 10.4 11.7 13.0 14.5 15.7 16.9 18.2 19.5 20.1 21.2 11 12 Taxes receivable........................................................... 12.5 13.3 15.1 16.2 17.4 16.7 12.3 14.0 11.4 9.1 10.4 10.9 12 13 Trade credit.................................................................. 1.8 2.0 2.5 2.7 3.1 4.4 5.8 6.4 7.3 6.6 4.9 4.0 13 14 Miscellaneous assets................................................... 4.4 4.6 4.9 4.8 4.7 4.4 4.3 4.1 4.2 4.4 4.5 4.6 14 15 Total liabilities................................................................. 271.8 280.0 285.1 292.4 296.4 303.2 319.1 334.4 332.0 346.7 375.5 396.4 15 16 Credit market instruments........................................ 243.1 250.2 254.1 260.4 262.2 265.8 278.8 292.2 288.6 301.4 327.4 344.7 16 17 Savings bonds.......................................................... 46.4 46.9 48.0 49.0 49.6 50.2 51.1 51.5 51.1 51.4 53.8 57.1 17 18 Short-term marketable.......................................... 98.9 99.8 101.1 105.8 108.8 110.2 118.9 119.4 128.4 133.8 130.4 143.5 18 19 Other direct.............................................................. 95.3 100.2 101.9 101.6 99.3 99.5 98.9 108.3 98.4 105.6 132.7 130.1 19 20 Agency issues........................................................... . 1 . 1 .2 .2 .2 .3 .5 1.9 1.6 1.9 2.5 4.5 20 21 Loan participations................................................ .9 1.4 1.2 2.0 2.4 3.7 7.7 9.4 7.5 7.1 6.5 8.0 21 22 Home mortgages..................................................... 1.5 1.7 1.8 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.4 1.3 22 23 Trade debt.................................................................... 3.4 3.7 3.6 3.4 3.9 4.5 5.1 5.1 4.8 4.2 3.5 3.4 23 24 Treasury currency liability........................................ 2.7 2.8 2.8 2.8 3. 1 4.0 4.6 5.1 5.3 6.0 6.4 7.0 24 25 Life insurance reserves.................................................. 6.5 6.6 6.8 6.9 7.0 7.1 7.2 7.2 7.3 7.4 7.4 7.5 25 26 Retirement fund reserves.......................................... 15.0 16.0 17.2 18.4 19.7 21.0 22.3 23.6 25.1 27.5 30.4 33.5 26 27 Miscellaneous liabilities............................................. 1.0 .8 .7 .6 .6 .8 1.0 1.2 .9 .3 .3 .3 27 Federally sponsored credit agencies 2 1 Total financial assets....................................................... 12.7 14.3 15.8 16.5 18.8 23.8 23.7 27.0 36.1 46.9 50.3 56.9 1 2 Demand deposits and currency............................... .2 .2 - .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 2 3 Credit market instruments........................................ 12.1 13.7 15.3 16.0 18.3 23.4 23.3 26.5 35.6 45.4 48.2 54.3 3 4 U.S. Government securities.................................. 1.4 1.8 2.2 1.8 1.9 2.9 2.9 2.7 2.5 4.2 2.7 1.3 4 5 Mortgages................................................................. 5.7 5.9 5.4 5.7 6.8 9.4 11.1 13.3 17.8 23.6 29.9 36.6 5 6 Home (FNMA)................................................... 2.9 2.8 2.1 2.0 2.5 4.4 5.5 7.2 11.0 16.1 20.9 25.2 6 7 Multifamily (FNMA)........................................ > * * * * * * * * * .3 1.1 2.3 7 8 Farm (FLB)......................................................... 2.8 3.1 3.3 3.7 4.3 5.0 5.6 6.1 6.7 7.2 7.9 9. 1 8 9 Other loans............................................................... 5.0 6. 1 7.7 8.5 9.6 11.1 9.3 10.5 15.3 17.6 15.6 16.4 9 10 To coops (BC)..................................................... .7 .7 .8 1.0 1.1 1.3 1.5 1.6 1.7 2.0 2.0 2.3 10 11 1.7 1.8 2. 1 2.2 2.5 2.9 3.4 3.7 4.3 5.0 5.7 6. 1 11 12 To S & L’s (FHLB)............................................ 2.7 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 12 13 Miscellaneous assets................................................... .3 .4 .3 .3 .3 .3 .3 .3 .3 1.3 1.8 2.5 13 14 Total liabilities................................................................. 12.1 13.7 15.1 15.7 18.0 23.0 22.8 26.1 35.2 46.0 49.3 55.8 14 15 Credit market instruments........................................ 8.6 10.1 11.5 12. 1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 15 16 Agency securities.................................................... 8.5 10.0 11.5 11.9 13.8 18.9 18.4 21.6 30.6 38.9 43.2 49.4 16 17 U.S. Government loans........................................ . 1 . 1 . 1 .3 . 1 * .3 17 18 3.5 3.6 3.6 3.7 3.8 4.0 4.4 4.2 4.5 7.1 6.1 6.4 18 19 Deposits at FHLB’s............................................... 1.2 1.2 1.2 1.2 1.0 1.0 1.4 1.4 1.0 2.3 1.8 1.5 19 20 Capital subscriptions.............................................. 1.8 1.9 1.9 1.9 2.0 2.3 2.4 2.2 2.4 2.7 2.8 3.1 20 21 Other......................................................................... .5 .5 .5 .5 .7 .6 .6 .6 1.1 2.0 1.5 1.7 21 1 Employee retirement funds are on page A-71.26. operatives, and Federal land banks. These agencies are privately owned 2 This group consists of Federal home loan banks, Federal National and are excluded from U.S. Government budget accounts as of 1969 Mortgage Association, Federal intermediate credit banks, banks for co- and from U.S. Government figures in these accounts for all years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.23 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Monetary authorities 1 Total financial assets...................................... 53.6 55.3 57.5 60.8 63.1 67.3 72.1 75.8 80.0 85.2 93.5 96.4 1 2 Gold and foreign exchange1..................... 16.8 16.0 15.6 15.6 14.3 14.0 13.5 12.4 12.3 10.9 10.1 10.5 2 3 Treasury currency and SDR certificates. 5.4 5.4 5.4 5.2 5.4 6.2 6.6 6.8 6.8 7.5 8.0 8.7 3 4 F.R. float...................................................... 2.3 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4.3 4.3 4.0 4 5 F.R. loans to domestic banks................. .1 * * .2 .1 .2 .1 .2 .2 .3 * 2.0 5 6 Credit market instruments....................... 28.9 30.9 33.8 37.2 41.0 44.5 49.3 53.0 57.2 62.2 71.0 71.2 6 7 U.S. Govt, securities.............................. 28.9 30.8 33.6 37.0 40.8 44.3 49.1 52.9 57.2 62.1 70.8 71.1 7 8 Short-term marketable...................... 18.3 20.7 25.6 28.2 31.9 36.5 39.2 32.6 37.6 38.5 39.5 41.2 8 9 Other direct.......................................... 10.6 10.1 8.0 8.8 8.9 7.8 9.9 20.4 19.5 23.7 30.7 28.7 9 10 Agency issues...................................... .6 1.2 10 11 Acceptances............................................. . 1 A .2 .1 .2 .2 .2 .1 . 1 .1 .3 .1 11 12 Bank loans n.e.c...................................... * * * * * 12 13 Total liabilities.................................... 53.6 55.2 57.3 61.2 63.6 67.8 72.6 76.2 80.4 85.6 94.0 95.9 13 14 Vault cash of commercial banks. 3.7 4.5 4.3 4.5 4.9 5.5 5.9 7.2 7.3 7.0 7.5 8.7 14 15 Member bank reserves................. 17.4 17.5 17.0 17.9 18.4 19.8 21.1 21.9 22.1 24.2 27.8 25.6 15 16 Demand deposits and currency. 31.4 32.1 34.9 36.8 38.8 41.2 44.2 45.7 48.9 52.0 56.4 60.4 16 17 U.S. Government..................... .9 1.0 1.2 1.4 1.4 1.6 2.5 1.5 2.0 1.6 2.5 2.2 17 18 Foreign...................................... .3 .3 .2 .3 .2 .4 .4 .5 .4 .3 .5 .4 18 19 Currency outside banks......... 30.2 30.8 33.4 35.1 37.2 39.2 41.3 43.7 46.6 50.0 53.4 57.9 19 20 Taxes payable............................... .1 .1 .1 .7 .2 .2 .2 .2 .2 .2 .2 .2 20 21 Other.............................................. 1.0 1.0 1.0 1.3 1.3 1.2 1.2 1.3 1.8 2.2 2.1 1.0 21 Commercial banking 2 Total financial assets....................... 247.7 269.3 287.5 313.5 343.5 363.7 404.6 450.8 473.0 518.2 576.7 655.0 1 Demand deposits and currency. .1 .1 .1 .2 .1 .2 .2 .2 .3 .4 .5 .7 2 Total bank credit 3...................... 220.1 240.0 258.6 281.8 310.4 327.4 364.8 404.9 422.6 459.2 510.6 585.2 3 Credit market instruments.. . 212.9 231.9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.1 4 U.S. Govt, securities 4. . . . 70.2 71.4 68.5 68.8 66.0 62.9 72.3 75.5 65.5 75.9 83.6 90.0 5 Short-term direct............. 33.4 27.7 24.0 28.2 26.2 21.4 26.9 28.5 24.2 30.0 25.0 30.5 6 Other direct...................... 33.8 39.4 39.8 35.4 34.0 35.4 36.4 36.8 31.4 32.5 40.6 37.6 7 Agency issues................... 2.9 4.4 4.7 5.2 5.8 6.1 9.0 10.2 9.9 13.4 17.9 22.0 8 9 Other securities and mortgages. 51.8 61.5 70.4 78.6 89.4 96.5 111.0 126.6 132.2 146.2 169.3 194.2 9 10 State and local obligations... 20.5 26.2 30.1 33.7 38.9 41.2 50.3 58.9 59.5 70.2 82.8 89.1 10 11 Corporate bonds..................... .9 .8 .8 .9 .8 .9 1.7 2.0 1.9 2.7 4.0 5.7 11 12 Home mortgages..................... 20.0 22.1 24.9 27.2 30.4 32.8 35.3 38.8 41.4 42.3 48.0 57.0 12 13 Other mortgages...................... 10.4 12.3 14.5 16.8 19.3 21.6 23.7 26.9 29.3 30.9 34.5 42.3 13 14 Other credit exc. security. 91.0 99.0 110.7 124.9 145.6 157.9 169.8 189.8 213.0 223.6 243.4 281.9 14 15 Consumer credit............ 21.4 23.7 27.2 31.0 35.7 38.3 40.6 46.3 51.0 53.9 60.6 70.6 15 16 Bank loans n.e.c............ 66.3 72.2 80.1 89.8 106.2 115.9 123.4 139.1 157.2 162.9 175.2 203.8 16 17 Open-market paper.... 2.5 2.4 2.5 3.1 2.7 3.7 5.8 4.4 4.9 6.9 7.7 7.5 17 18 Hypothecated deposits. .8 .8 .8 1.0 1.1 18 19 Corporate equities................. .1 .1 .1 .1 .2 .2 .3 .4 .4 .5 .5 .6 19 20 Security credit......................... 7.0 8.0 9.0 9.4 9.3 9.9 11.3 12.7 11.5 13.0 13.8 18.5 20 21 Vault cash....................... 3.7 4.5 4.3 4.5 4.9 5.5 5.9 7.2 7.3 7.0 7.5 8.7 21 22 Member bank reserves. 17.4 17.5 17.0 17.9 18.4 19.8 21.1 21.9 22.1 24.2 27.8 25.6 22 23 Other interbank claims. .6 .6 .7 .9 .9 .9 1.9 2.6 4.2 5.9 7.6 9.0 23 24 Miscellaneous assets. . . 5.9 6.5 6.8 8.3 8.8 10.0 10.7 14.1 16.5 21.5 22.7 25.8 24 25 Total liabilities................. 228.4 248.6 267.0 291.2 320.0 339.0 378.2 422.7 443.8 487.2 543.3 618.3 25 26 Demand deposits, net. 130.0 134.5 136.7 143.4 148.6 150.1 162.2 175.4 180.4 191.6 204.6 220.9 26 27 U.S. Government... 5.9 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 27 28 Other......................... 124.0 127.4 130.1 136.9 143.1 145.2 156.9 170.4 175.3 183.7 194.4 210.1 28 29 Time deposits.............................. 83.0 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 29 30 Large negotiable CD’s......... 3.2 6.2 9.9 12.6 16.3 15.7 20.3 23.5 10.9 26.1 34.8 44.5 30 31 Other at commercial banks. , 79.5 92.1 102.7 114.6 130.9 143.6 162.8 180.2 183.2 205.6 238.0 271.1 31 32 At foreign banking agencies. .3 .3 .4 .4 .5 .5 .6 .8 1.0 1.4 1.7 1.2 32 33 Federal Reserve float.................... 2.3 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4.3 4.3 4.0 33 34 Borrowing at F.R. banks............. .1 * * .2 . 1 .2 .1 .2 .2 .3 * 2.0 34 35 Other interbank claims................. .6 .6 .7 .9 .9 .9 1.9 2.6 4.2 5.9 7.6 9.0 35 36 Credit market debt........................ * * .3 1.5 3.4 3.3 3.4 4.8 10.9 5.8 8.9 13.1 36 37 Taxes payable................................. .6 1.1 .6 .8 .7 .7 .6 .5 .6 1.0 .9 .7 37 38 Miscellaneous liabilities............... 11.7 10.8 13.1 14.3 16.4 21.4 23.7 31.2 49.0 45.2 42.5 51.8 38 39 Liabilities to foreign branches. 3.8 3.7 4.0 4.6 4.7 7.6 8.3 10.6 18.6 11.6 7.6 8.5 39 40 Other............................................ 8.0 7.1 9.1 9.7 11.8 13.8 15.3 20.6 30.4 33.6 34.9 43.3 40 1 Monetary gold stock and F.R. holdings of foreign currencies. Ex­ possessions. Edge Act corporations and agencies of foreign banks appear change Stabilization Fund holdings of gold and foreign exchange are together in these tables as “foreign banking agencies.” in U.S. Govt, account, p. A-71.22. 3 Gross of bad debt reserves. 2 Consists of chartered commercial banks, their domestic affiliates, 4 At par value. Edge Act corporations, agencies of foreign banks, and banks in U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.24 FLOW OF FUNDS □ SEPTEMBER 1973 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Commercial banks 1 Total financial assets........................................ 242.7 264.0 281.6 306.2 336.4 355.5 395.4 438.9 452.7 490.7 547.2 624.5 1 2 Total bank credit.......................................... 217.1 237.0 255.2 278.3 306.8 323.2 360.0 399.5 411.7 446.4 497.5 571.0 2 3 Credit market instruments..................... 210.9 229.7 247.3 269.9 298.3 314.1 349.5 387.7 401.0 434.3 484.6 553.4 3 4 U.S. Govt, securities........................... 69.5 70.8 67.9 68.2 65.3 62.2 71.5 74.7 64.6 75.1 82.9 88.8 4 5 Direct.................................................. 66.6 66.4 63.2 63.0 59.5 56.2 62.5 64.5 54.7 61.7 64.9 67.0 5 6 Agency issues.................................... 2.9 4.4 4.7 5.2 5.8 6.1 9.0 10.2 9.9 13.4 17.9 21.8 6 7 Other securities and mortgages........ 51.5 61.1 70.0 78.1 88.8 95.8 110.1 125.7 131.1 144.8 168.0 193.3 7 8 State and local oblig........................ 20.3 26.0 30.0 33.5 38.7 41.0 50.0 58.6 59.2 69.6 82.4 89.5 8 9 Corporate bonds.............................. .9 .8 .8 .9 .8 .9 1.6 1.9 1.9 2.7 3.9 5.3 9 10 Home mortgages.............................. 20.0 22.0 24.7 27.0 30.1 32.5 34.9 38.3 40.9 41.8 47.3 56.3 10 11 Other mortgages.............................. 10.4 12.3 14.4 16.7 19.2 21.5 23.6 26.8 29.1 30.7 34.3 42. I tl 12 Other credit excluding security......... 89.8 97.8 109.4 123.6 144.1 156.1 167.9 187.4 205.4 214.4 233.7 271.3 12 13 Consumer credit............................... 21.4 23.7 27.2 31.0 35.7 38.3 40.6 46.3 51.0 53.9 60.6 70.6 13 14 Bank loans n.e.c............................... 65.2 71.1 79.0 88.6 104.9 114.2 121.6 136.8 149.6 153.7 165.7 193.3 14 15 Open-market paper.......................... 3.2 3.0 3.2 3.9 3.6 3.6 5.7 4.3 4.8 6.7 7.5 7.3 15 16 Security credit........................................... 6.2 7.3 7.9 8.4 8.5 9.0 10.5 11.8 10.7 12.1 12.9 17.6 16 17 Interbank claims........................................... 21.1 22.1 21.4 22.4 23.3 25.3 27.1 29.1 29.5 31.5 35.5 37. 1 17 18 Vault cash and member bank reserves. 21.1 22.0 21.3 22.4 23.3 25.2 27.0 29. 1 29.4 31.2 35.3 34.3 18 19 Deposits at foreign banking agencies. . . 1 . 1 . 1 * * . 1 . 1 . 1 . 1 .3 .2 2.8 19 20 Miscellaneous assets.................................... 4.5 4.9 5.0 5.5 6.2 7. 1 8.3 10.2 11.4 12.7 14.2 16.4 20 21 Total liabilities........................................................... 223.4 243.3 261.1 283.9 312.8 330.8 369.0 410.7 423.5 459.6 513.8 587.9 21 22 Demand deposits, net.......................................... 128.7 133.3 135.6 141.5 147.0 148.6 160.5 172.8 177.4 182.0 195.4 215.2 22 23 U.S. Government............................................. 5.9 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 23 24 Other................................................................... 122.8 126.2 129.0 135.0 141.5 143.6 155.2 167.8 172.3 174.1 185.2 204.3 24 25 Time deposits......................................................... 82.7 98.3 112.6 127.2 147.2 159.3 183.1 203.7 194.1 231.7 272. 315.6 25 26 Large negotiable CD’s.................................... 3.2 6.2 9.9 12.6 16.3 15.7 20.3 23.5 10.9 26.1 34.8 44.5 26 27 Other................................................................... 79.5 92.1 102.7 114.6 130.9 143.6 162.8 180.2 183.2 205.6 238.0 271.1 27 28 Interbank liabilities.............................................. 3.0 3.5 3.2 3.6 3.2 3.5 4.5 6.1 7.7 10.2 11.7 12.2 28 29 F.R. float............................................................ 2.3 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4:3 4.3 4.0 29 30 Borrowing at F.R. banks............................... .1 * * .2 . 1 .2 .1 .2 .2 .3 * 2.0 30 31 Demand deposits of fgn. banking agencies . .5 .5 .5 .5 .7 .7 1.6 2.3 3.1 4.4 5.6 4.4 31 32 Time deposits of fgn. banking agencies .... . 1 .1 .4 32 33 Loans from affiliates........................................ .6 .7 1.0 .6 33 34 Loans from foreign banking agencies.......... .2 .2 .3 .2 .4 .5 .6 .8 34 35 Corporate bonds................................................... 1.6 1.7 2.0 2.2 2.3 2.4 3.1 4.1 35 36 Security RP’s......................................................... 1.7 1.5 1.3 2.3 4.0 .7 1.7 3.5 36 37 Profit tax liabilities............................................... .6 1.1 .6 .7 .7 .6 .5 .6 1.0 .9 .7 37 38 Miscellaneous liabilities...................................... 8.3 7.1 8.9 9.4 11.4 15.5 17.0 23.0 37.4 31.8 28.2 36.6 38 39 Liabilities to foreign branches....................... 1.0 .9 1.0 1.1 1.4 4.0 4.2 6.0 12.8 5.7 .9 1.4 39 40 Other................................................................... 7.3 6.3 7.9 8.3 10.1 11.5 12.7 17.0 24.6 26.1 27.2 35.2 40 Domestic affiliates of commercial banks 1 Total financial assets....................................................... 4.5 3.6 3.8 3.2 2 Bank loans n.e.c.......................................................... 3.9 3.0 2.8 2.6 3 Loans to affiliate banks............................................. .6 .7 1.0 .6 4 Total liabilities................................................................. 4.5 3.6 3.8 3.2 5 Commercial paper issues.......................................... 4.2 2.3 2.0 2.6 6 Miscellaneous liabilities............................................ .3 1.3 1.9 .6 Edge Act corporations and agencies of foreign banks 1 Total financial assets...................................................... 4.2 4.4 4.,8 6.0 5.8 6.5 7.3 9.8 12.5 20.1 21.4 22.5 1 2 Credit market instruments........................................ 1.8 1.9 1..7 1.8 2.0 2.4 2.8 3.2 4.5 7.2 7.3 8.1 2 3 U.S. Govt, securities.............................................. .5 .5 .4 .4 .5 .5 .6 .6 .6 .5 .3 .6 3 4 State and local govt, obligations......................... . 1 .2 . 1 . 1 . 1 . 1 .2 .2 .2 .4 .2 -.7 4 5 Corporate bonds..................................................... * * * * * * * * * * * .3 5 6 1.1 1.0 1.. 1 1.2 1.3 1.7 1.8 2.3 3.6 6.2 6.7 7.8 6 7 Open-market paper................................................ . 1 .2 . 1 . 1 .1 . 1 . 1 .1 . 1 . 1 . 1 . 1 7 8 Corporate equities...................................................... . 1 . 1 . 1 . 1 .2 .2 .3 .4 .4 .5 .5 .6 8 9 .9 .7 i!. 1 1.1 .8 .9 .9 .9 .9 .9 .9 .9 9 10 Demand deposits at commercial banks................. .5 .5 .5 .5 .7 .7 1.6 2.3 3. 1 4.4 5.6 4.4 10 11 Time deposits at commercial banks....................... . 1 . 1 .4 11 12 Loans to banks........................................................... .1 .1 .1 .3 .2 .2 .3 .2 .4 .5 .6 .8 12 13 Miscellaneous assets................................................... .9 1.2 i.3 2.2 2.0 2.2 1.5 2.9 3.2 6.7 6.4 7.2 13 14 4.2 4.4 4.8 6.0 5.8 6.5 7.3 9.8 12.5 20.1 21.4 22.5 14 15 1.2 1.2 1. 1 1.8 1.6 1.5 1.7 2.7 3.0 9.6 9.2 5.8 15 16 Time deposits............................................................... .3 .3 .4 .4 .5 .5 .6 .8 1.0 1.4 1.7 1.2 16 17 . 1 . 1 . 1 * * . 1 . 1 . 1 . 1 .3 .2 2.8 17 18 Loans from banks...................................................... * * * . 1 .1 . 1 . 1 .2 .3 .4 2.1 2.9 18 19 2.6 2.7 3.2 3.7 3.6 4.3 4.8 6.0 7.9 8.4 8.2 9.9 19 20 Due to foreign affiliates......................................... 2.7 2.8 3.0 3.5 3.3 3.6 4.1 4.6 5.7 6.0 6.7 7.1 20 21 1 1 . 1 .2 .3 .7 .7 1.4 2.2 2.4 1.6 2.8 21 Banks in U.S. possessions 1 Total financial assets...................................................... .8 .9 1.1 1.3 1.3 1.6 1.9 2.2 3.3 3.8 4.3 4.8 1 2 Demand deposits and currency............................... . 1 . 1 . 1 .2 . 1 .2 .2 .2 .3 .4 .5 .7 2 3 .3 .4 .5 .5 .6 .7 .9 1.0 1.2 1.3 1.6 1.9 3 4 U.S. Govt, securities.............................................. . 1 . 1 .2 . 1 . 1 .2 .2 .2 .2 .3 .4 .6 4 5 State and local government obligations............ * * . 1 . 1 . 1 . 1 . 1 .2 .2 .2 .2 .3 5 6 * * * * * * . 1 . 1 . 1 . 1 . 1 . 1 6 7 .1 .2 .2 .3 A .4 .5 .5 .7 .8 .9 .9 7 8 .4 .5 .5 .6 .6 .7 .8 1.0 1.8 2.1 2.1 2.1 8 9 .8 .9 1.1 1.3 1.3 1.6 1.9 2.2 3.3 3.8 4.3 4.8 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.25 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1967 1968 1970 1971 1972 Private nonbank financial institutions—Total 1 Total financial assets........................................ 409.4 437.6 485.7 533.6 585.5 611.2 674.4 740.8 770.2 822.7 931.8 1061.9 1 2 Demand deposits and currency................. 9.9 10.8 10.9 11.1 11.5 11.3 12.0 12.9 12.5 13.5 14.3 16.1 2 3 Time deposits (Mutual savings banks).. . .2 .2 .1 .2 .2 .2 .2 .2 . 1 .3 .5 .4 3 4 Savings and loan shares (Credit unions). .3 .4 .4 .5 .4 .1 .3 .1 * .1 .3 .7 4 5 Corporate shares........................................... 60.3 57.4 69.9 82.1 97.5 93.8 122.2 147.1 142.3 150.9 193.3 234.4 5 6 Credit market instruments......................... 321.3 350.4 383.1 417.2 451.4 479.7 507.2 543.7 580.8 620.5 681.3 761.8 6 7 U.S. Government securities................... 35.2 37.1 37.2 39.0 38.8 39.1 36.8 38.9 36.7 40.0 42.5 48.2 7 8 State and local obligations..................... 18.2 18.8 18.7 18.7 18.3 19.0 20.2 21.4 22.4 24.2 28.3 31.8 8 9 Corporate and foreign bonds................ 83.7 89.7 96.3 103.0 110.8 119.8 131.8 141.6 148.5 160.7 175.6 189.1 9 10 Home mortgages...................................... 112.3 123.3 137.4 150.3 162.2 167.8 175.6 184.1 193.2 200.6 219.1 249.3 10 11 Other mortgages....................................... 36.2 42.1 49.3 57.1 64.9 71.7 78.4 85.6 93.2 103.3 117.4 134.7 11 12 Consumer credit....................................... 21.1 23.6 26.6 29.7 34.0 36.7 38.2 42.0 46.8 48.6 51.9 58.3 12 13 Other loans................................................ 14.6 15.7 17.5 19.4 22.3 25.6 26.2 30.0 39.9 43.0 46.5 50.3 13 14 Security credit............ 4.7 4.6 6.1 5.6 6.0 6.0 9.2 12.0 8.5 7.2 9.7 13.6 14 15 Trade credit................ 2.0 2.2 2.3 2.5 2.6 2.9 3.2 3.5 3.9 4.4 4.7 5.0 15 16 Miscellaneous assets. 10.6 11.7 12.8 14.3 15.8 17.4 20.1 21.4 22.2 25.9 27.7 30.0 16 17 Total liabilities.................................. 370.1 396.7 441.2 485.9 534.3 561.4 620.1 680.3 713.7 764.7 864.8 985.1 17 18 Time and savings accounts.... 114.8 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.2 320.6 18 19 Insurance and pension reserves. 170.6 179.0 195.4 213.3 232.9 246.1 271.2 295.6 309.6 332.5 370.3 411.9 19 20 Investment company shares.... 22.9 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 55.6 59.8 20 21 Credit market instruments......... 24.9 28.8 34.7 39.1 45.1 48.3 47.9 55.0 68.4 73.1 79.3 95.5 21 22 Finance company bonds........ 10.4 10.7 12.2 14.3 16.1 16.9 17.9 18.8 20.4 23.5 27.7 33.5 22 23 Mortgage loans in process.. . 1.6 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.1 6.2 23 24 Other mortgages....................... .2 .4 .5 .7 1.2 24 25 Bank loans n.e.c....................... 6.6 7.8 9.4 10.0 12.3 11.2 9.2 11.7 14.3 13.7 15.1 21.2 25 26 Other loans............................... 6.3 8.3 10.6 12.6 14.5 19.0 18.4 21.9 30.8 32.3 30.8 33.3 26 27 Open market paper............. 3.6 4.8 5.8 7.3 8.5 12.0 14.1 16.6 21.5 21.7 22.9 25.4 27 28 FHLB loans......................... 2.7 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 28 28 Security credit............................... 6.3 7.2 8.0 8.4 8.7 9.6 12.7 16.2 13.2 14.2 15.3 19.4 29 30 Taxes payable............................... .8 .9 .9 .9 1.1 1.1 1.0 1.2 1.3 1.5 1.5 1.8 30 31 Miscellaneous liabilities............. 29.9 31.7 33.8 36.2 39.2 42.5 46.9 51.2 56.6 62.4 68.5 76.1 31 Savings and loan associations 1 Total financial assets....................... 82.1 93.6 107.6 119.4 129.6 133.9 143.5 152.9 162.1 176.2 206.3 243.6 1 2 Demand deposits and currency., 2.1 2.7 2.8 2.8 2.9 2.3 2.0 1.6 1.4 1.7 2.2 2.8 2 3 Credit market instruments........ 75.6 85.9 99.2 110.2 119.8 124.4 133.4 143.3 153.2 164.7 194.1 230.6 3 4 U.S. Government securities. . 5.7 6.0 7.0 7.6 8.2 8.6 10.1 10.9 11.1 12.3 17.5 21.8 4 5 Home mortgages..................... 62.4 69.8 79.1 87.2 94.2 97.4 103.3 110.3 117.9 125.0 142.9 167.6 5 6 Other mortgages....................... 6.4 9.0 11.9 14.2 16.1 17.0 18.5 20.5 22.3 25.4 31.5 38.8 6 7 Consumer credit....................... 1.1 1.1 1.2 1.3 1.4 1.4 1.5 1.6 1.8 2.1 2.2 2.4 7 8 Miscellaneous assets................... 4.4 5.0 5.5 6.3 6.9 7.2 8.1 8.0 7.6 9.8 10.0 10.2 8 9 Total liabilities.................................. 76.4 87.1 100.4 111.5 120.9 124.8 134.0 142.6 150.9 164.2 192.6 228.2 9 10 Savings shares............................... 70.9 80.2 91.3 101.9 110.4 114.0 124.5 131.6 135.5 146.4 174.5 207.3 10 11 Credit market instruments......... 4.4 5.6 7.6 7.8 8.7 8.7 7.0 8.2 12.3 14.1 14.1 16.1 11 12 Mortgage loans in process.. . 1.6 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.1 6.2 12 13 Bank loans n.e.c....................... .2 .2 .2 .3 .5 .5 .4 .5 .5 .4 1.1 1.9 13 14 Borrowing from FHLB.......... 2.7 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 14 15 Taxes payable............................... * * .1 .1 .1 .1 .1 .1 .1 .1 .2 .3 15 16 Miscellaneous liabilities............. 1.1 1.2 1.4 1.6 1.7 2.1 2.4 2.7 3.0 3.6 3.9 4.6 16 17 Memo: FHLB loans less deposits 1.5 2.3 3.6 4.1 5.0 5.9 3.0 3.9 8.2 8.3 6.1 6.4 17 Mutual savings banks 1 Total financial assets..................... 42.8 46.1 49.7 54.2 58.2 61.0 66.4 71.2 74.2 79.0 89.6 100.6 1 2 Demand deposits and currency .8 .8 .8 .8 .8 .8 .8 .8 .9 1.0 .9 1.3 2 3 Time deposits.............................. .2 .2 . 1 .2 .2 .2 .2 .2 .1 .3 .5 .4 3 4 Corporate shares....................... .9 1.0 1.2 1.3 1.4 1.5 1.7 1.9 2.2 2.5 3.0 3.6 4 5 Credit market instruments.... 40.6 43.6 47.0 51.2 54.9 57.6 62.6 66.9 69.8 73.5 83.0 92.3 5 6 U.S. Government securities. 6.6 6.7 6.5 6.5 6.2 5.7 5.4 5.2 4.7 4.9 5.2 5.5 6 7 State and local obligations.. .7 .5 .4 .4 .3 .3 .2 .2 .2 .2 .4 .9 7 8 Corporate bonds.................... 3.6 3.5 3.2 3.1 2.9 3.2 5.3 6.6 6.9 8.3 12.6 15.4 8 9 Home mortgages................... 20.0 22.1 24.7 27.4 30.1 31.7 33.5 35.0 36.4 37.3 38.6 41.7 9 10 Other mortgages.................... 9.1 10.2 11.5 13.2 14.6 15.7 17.0 18.4 19.7 20.6 23.3 25.9 10 11 Consumer credit..................... .2 .3 .3 .4 .5 .6 .8 .9 1.0 1.1 1.2 1.5 11 12 Other loans.............................. .3 .4 .3 .4 .3 .5 .4 .5 .8 1.2 1.6 1.5 12 13 Miscellaneous assets................. .4 .5 .7 .7 .8 1.0 1.1 1.4 1.3 1.7 2.2 3.0 13 14 Savings deposits............................. 38.3 41.3 44.6 48.8 52.4 55.0 60.1 64.5 67.1 71.6 81.4 91.6 14 15 Miscellaneous liabilities................ .8 .8 .9 1.0 1.1 1.1 1.3 1.4 1.6 1.7 1.8 2.0 15 Credit unions 1 Total financial assets..................... 5.6 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 1 Demand deposits and currency., .4 .4 .4 .5 .5 .6 .7 .7 .6 .8 .8 1.0 2 Savings and loan shares............ .3 .4 .4 .5 .4 .1 .3 .1 * .1 .3 .7 3 Credit market instruments 4.9 5.6 6.3 7.2 8.2 9.4 10.2 11.5 13.1 14.6 17.2 20.0 4 U.S. Government securities. .2 .2 .3 .3 .3 .5 .5 .5 .3 .8 1.6 2.2 5 Home mortgages................... .4 .5 .5 .5 .6 .6 .7 .7 .7 .8 .8 .9 6 Consumer credit..................... 4.3 4.9 5.5 6.3 7.3 8.3 9.0 10.3 12.0 13.0 14.8 16.9 7 Credit union shares. 5.6 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.26 FLOW OF FUNDS □ SEPTEMBER 1973 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 | 1964 1965 1966 1967 1968 1969 1970 1971 1972 Life insurance companies 1 Total financial assets....................................................... 122.8 129.2 136.9 144.9 154.1 161.7 172.1 182.9 190.9 200.5 214.7 231.8 1 2 Demand deposits and currency............................... 1.4 1.5 1.5 1.5 1.5 1.5 1.6 1.7 1.6 1.8 1.8 1.9 2 3 Corporate shares......................................................... 6.3 6.3 7.1 7.9 9.1 8.8 10.9 13.2 13.7 15.4 20.5 26.4 3 4 Credit market instruments........................................ 110.9 116.9 123.3 130.2 137.7 145.4 152.8 160.5 167.2 174.2 182.3 192.4 4 5 U.S. Govt, securities.............................................. 6.1 6.2 5.9 5.6 5.1 4.7 4.5 4.4 4.1 4.2 4.0 3.8 5 6 State and local obligations................................... 3.9 4.0 3.9 3.8 3.5 3.1 3.0 3.2 3.2 3.3 3.4 3.3 6 7 Corporate bonds..................................................... 50.7 53.2 56.0 58.3 61.1 63.5 67.3 71.2 72.7 74.1 79.6 86.8 7 8 Home mortgages.................................................... 25.6 26.4 27.3 28.5 29.6 30.2 29.8 29.0 28.0 26.7 24.6 22.5 8 9 Other mortgages..................................................... 18.6 20.5 23.2 26.6 30.4 34.4 37.8 40.9 44.1 47.7 50.9 54.9 9 10 Other loans............................................................... 5.9 6.6 7.0 7.4 8.0 9.5 10.5 11.8 15.2 18.2 19.8 21.2 10 11 Miscellaneous assets................................................... 4.3 4.6 4.9 5.3 5.7 6.0 6.9 7.5 8.3 9.2 10.1 11.1 11 12 Total liabilities................................................................. 114.2 120.3 126.8 134.0 141.9 149.9 159.0 168.1 177.5 187.7 201.0 216.3 12 13 Life insurance reserves.............................................. 82.1 85.8 89.9 94.2 98.9 103.5 108.2 112.9 117.8 122.9 129.0 136.2 13 14 Pension fund reserves................................................ 20.3 21.6 23.3 25.3 27.3 29.4 32.1 35.0 37.9 41.2 46.4 51.6 14 15 Taxes payable............................................................... .4 .4 .4 .6 .5 .6 .5 .6 .7 .8 .8 .8 15 16 Miscellaneous liabilities............................................ 11.5 12.4 13.2 14.0 15.2 16.4 18.2 19.7 21.1 22.8 24.9 27.7 16 Private pension funds 1 Total financial assets....................................................... 46.3 47.3 55.4 63.9 73.6 75.8 89.4 101.4 102.5 110.8 130.5 152.3 1 2 Demand deposits and currency............................... .7 .7 .8 .9 .9 .9 1.3 1.6 1.6 1.8 1.6 1.8 2 3 Corporate shares......................................................... 22.9 21.9 27.7 33.5 40.7 39.5 51.1 61.4 61.6 67.2 88.6 111.8 3 4 Credit market instruments........................................ 21.3 23.0 25.2 27.5 29.6 32.2 33.0 34.0 34.6 37.0 35.4 34.1 4 5 U.S. Govt, securities.............................................. 2.8 3.1 3.4 3.6 3.6 3.1 2.5 2.9 2.8 3.0 2.7 3.7 5 6 Corporate bonds..................................................... 16.9 18.1 19.6 21.2 22.7 25.2 26.4 27.0 27.6 29.7 29.0 27.4 6 7 Home mortgages.................................................... 1.6 1.9 2.2 2.7 3.3 3.9 4.1 4.1 4.2 4.3 3.7 3.0 7 8 Miscellaneous assets................................................... 1.5 1.7 1.7 2.0 2.3 3.2 4.0 4.4 4.7 4.7 4.8 4.6 8 State and local government retirement funds 1 Total financial assets....................................................... 21.9 24.3 26.9 29.9 33.2 37.4 41.5 46.4 51.4 57.7 64.5 71.8 1 2 Demand deposits and currency............................... .3 .3 .3 .3 .3 .4 .5 .6 .5 .6 .5 .5 2 3 Corporate shares......................................................... .6 .8 1.0 1.3 1.6 2.1 2.8 4.1 5.9 8.0 11.2 14.2 3 4 Credit market instruments........................................ 21.1 23.2 25.6 28.3 31.3 34.9 38.3 41.7 45.1 49.1 52.8 57.1 4 5 U.S. Govt, securities.............................................. 6.1 6.5 6.8 7.3 7.5 7.8 7.0 7.4 7. 1 6.4 5.2 5.1 5 6 Short-term marketable...................................... .4 .4 .4 .3 .4 .4 .5 .5 .7 .8 .6 .8 6 7 Other direct......................................................... 5.5 5.7 6.1 6.6 6.7 6.7 5.7 5.6 4.8 4.0 3.4 3.1 7 8 Agency issues...................................................... .3 .4 .3 .4 .5 .7 .8 1.4 1.6 1.6 1.2 1.1 8 9 State and local obligations................................... 4.3 3.8 3.3 2.9 2.6 2.5 2.4 2.4 2.3 2.0 1.9 1.7 9 10 Corporate bonds..................................................... 8.8 10.7 12.8 15.0 17.4 20.2 23.9 26.5 29.6 33.8 38.6 43.4 10 11 Mortgages................................................................. 1.9 2.2 2.6 3.1 3.7 4.5 5.0 5.4 6.0 6.8 7.1 7.0 11 Other insurance companies 1 Total financial assets...................................................... 29.2 30.1 32.4 34.7 36.5 37.2 40.9 44.9 45.5 49.9 57.4 64.6 1 2 Demand deposits and currency............................... 1.4 1.5 1.4 1.4 1.3 1.3 1.3 1.4 1.3 1.4 1.5 1.6 2 3 Corporate shares......................................................... 9.3 8.6 10.0 11.4 12.0 11.0 13.0 14.6 13.3 13.2 16.6 20.5 3 4 Credit market instruments........................................ 16.5 17.8 18.6 19.4 20.5 22.0 23.5 25.4 27.0 30.9 34.6 37.5 4 5 U.S. Govt, securities.............................................. 5.6 5.7 5.9 6.0 6.0 5.6 4.9 4.7 4.2 4.3 3.9 3.5 5 6 9.1 9.9 10.6 11.0 11.3 12.6 14.1 15.1 16.3 17.8 21.7 25.0 6 7 Corporate bonds..................................................... 1.7 2.1 2.0 2.4 3.0 3.6 4.3 5.5 6.3 8.6 8.9 8.8 7 8 Commercial mortgages.......................................... .2 .1 . 1 . 1 . 1 .1 .2 .2 .2 .2 .2 .2 8 9 Trade credit................................................................. 2.0 2.2 2.3 2.5 2.6 2.9 3.2 3.5 3.9 4.4 4.7 5.0 9 10 16.7 17.4 18.4 19.6 21.2 23.0 25.1 27.5 30.9 34.4 38.0 41.8 10 11 Policy payables............................................................ 16.5 17.2 18.3 19.6 21.1 22.9 25.0 27.5 30.8 34.2 37.8 41.5 11 12 .1 .1 .1 * .1 . 1 .1 .1 .1 .2 .2 .3 12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ FLOW OF FUNDS A 71.27 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Finance companies 1 Total financial assets..................... 28.0 30.6 34.9 38.9 44.8 47.1 47.7 52.9 61.6 62.5 67.0 78.0 2 Demand deposits and currency 1.9 2.0 1.8 1.8 2.0 2.1 2.2 2.3 2.4 2.7 2.9 3.2 3 Home mortgages....................... 2.2 2.7 3.5 3.9 4.5 3.9 4.3 4.9 5.7 5.9 7.0 11.1 4 Consumer credit......................... 15.5 17.3 19.6 21.6 24.8 26.4 26.9 29.2 32.0 32.4 33.7 37.5 5 Other loans (to business)......... 8.4 8.6 10.0 11.6 13.5 14.6 14.3 16.5 21.5 21.6 23.3 26.1 6 Total liabilities................................ 20.7 23.4 27.4 31.4 36.7 39.8 41.0 46.7 55.6 57.3 61.5 70.9 7 Corporate bonds........................ 10.4 10.7 12.2 14.3 16.1 16.9 17.9 18.8 20.3 22.9 26.7 32.1 8 Bank loans n.e.c......................... 6.4 7.6 9.2 9.7 11.8 10.7 8.8 11.2 13.5 12.4 12.5 16.4 9 Open market paper................... 3.6 4.8 5.8 7.3 8.5 12.0 14.1 16.6 21.5 21.7 22.1 22.1 10 Taxes payable............................. .3 .3 .3 .2 .3 .2 .2 .2 .2 .3 .3 .3 Real estate investment trusts 1 Physical assets........................ .4 .7 .9 1.4 2.5 1 2 Multifamily structures___ .1 .2 .3 .4 .8 2 3 Nonresidential structures. .2 .5 .6 .9 1.7 3 4 Total financial assets........ .3 1.3 3.8 6.4 11.7 4 5 Home mortgages........... * .2 .7 1.4 2.6 5 6 Multifamily mortgages. .1 .4 1.0 1.8 3.7 6 7 Commercial mortgages. .1 .5 1.5 2.6 4.4 7 8 Miscellaneous assets. . . .1 .2 .6 .6 1.1 8 9 Total liabilities......................... .3 .8 2.1 4.1 9.1 9 10 Credit market instruments. .3 .8 1.9 3.9 8.8 10 11 Mortgages......................... .2 .4 .5 .7 1.2 11 12 Multifamily................... .1 .1 .2 .2 .4 12 13 Commercial.................. .1 .3 .4 .5 .8 13 14 Corporate bonds......... .1 .6 1.0 1.4 14 15 Bank loans n.e.c.......... .1 .2 .8 1.5 3.0 15 16 Commercial paper. ... .8 3.2 16 17 Miscellaneous liabilities. * * .1 .2 .3 17 Open-end investment companies 1 Total financial assets..................... 22.9 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 55.6 59.8 1 2 Demand deposits and currency .3 .3 .4 .4 .5 .5 .7 .8 .7 .7 .9 .9 2 3 Corporate shares........................ 20.3 18.3 22.1 25.6 30.9 28.9 39.2 46.1 40.9 39.7 47.5 51.7 3 4 Credit market instruments.... 2.3 2.6 2.7 3.0 3.8 5.4 4.8 5.8 6.7 7.2 7.2 7.2 4 5 U.S. Govt, securities............. .7 .7 .7 .8 .8 1.4 .9 1.1 .7 .9 .6 .7 5 6 Corporate bonds.................... 1.6 1.6 1.8 2.1 2.6 2.9 3.0 3.4 3.6 4.3 4.9 5.1 6 7 Open market paper............... * .3 .2 .1 .5 1.0 1.0 1.2 2.4 2.1 1.7 1.4 7 Security brokers and dealers 1 Total financial assets....................................................... 7.7 8.7 9.7 10.4 11.2 12.3 17.0 23.0 18.6 19.3 21.6 26.1 1 2 Demand deposits and currency............................... .7 .6 .7 .7 .7 .8 1.0 1.5 1.4 1.1 1.1 1.1 2 3 Corporate shares......................................................... .2 .4 .9 1.2 1.8 2.1 3.6 5.7 4.8 4.8 5.9 6.2 3 4 Credit market instruments........................................ 2.1 3.1 2.1 2.9 2.7 3.5 3.2 3.8 3.9 6.3 4.9 5.1 4 5 U.S. Govt, securities.............................................. 1.3 2.0 .7 1.4 1.1 1.7 1.0 1.8 1.7 3.4 1.8 2.0 5 6 State and local obligations.................................... .3 .5 .5 .7 .5 .5 .5 .5 .4 .9 1.0 .9 6 7 Corporate bonds..................................................... .4 .6 .8 .9 1.2 1.3 1.7 1.5 1.8 1.9 2.1 2.2 7 8 Security credit.............................................................. 4.7 4.6 6.1 5.6 6.0 6.0 9.2 12.0 8.5 7.2 9.7 13.6 8 9 Total liabilities................................................................. 6.3 7.2 8.0 8.4 8.8 9.7 12.9 16.4 13.3 14.3 15.4 19.6 9 10 Security credit.............................................................. 6.3 7.2 8.0 8.4 8.7 9.6 12.7 16.2 13.2 14.2 15.3 19.4 10 11 From banks.............................................................. 4.1 5.2 5.3 5.5 5.3 5.8 6.6 7.7 6.7 8.6 9.3 13.1 11 From agencies of foreign banks.......................... .9 .7 1.1 1.1 .8 .9 .9 .9 .9 .9 .9 .9 12 Customer credit balances...................................... 1.3 1.3 1.6 1.8 2.7 2.9 5.3 7.7 5.7 4.7 5.2 5.4 13 Taxes payable............................................................... .1 * .1 .1 .1 .1 .2 .2 .1 .2 .1 .2 14 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.28 FLOW OF FUNDS □ SEPTEMBER 1973 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Rest of the world 1 70.1 71.7 78.4 84.4 88.0 89.6 98.0 107.9 115.6 125.2 153.2 182.1 1 2 Gold............................................................................... 24.2 25.4 26.7 27.5 29.4 30.0 29.5 30.0 29.2 32.8 36.8 43.5 2 3 U.S. demand deposits................................................ 3.1 3.2 3.5 4.2 4.4 4.8 5.1 5.7 6.0 6.2 6.5 8.0 3 4 U.S. time deposits....................................................... 2.9 3.4 4.3 5.4 6.0 6.3 7.6 7.3 8.4 6.7 7.2 9.8 4 5 U.S. corporate shares................................................. 11.8 10.3 12.5 13.8 14.6 12.6 15.5 19.6 18.1 18.7 21.3 26.0 5 6 Credit market instruments........................................ 13.0 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.5 61.0 6 7 U.S. Govt, securities.............................................. 11.0 12.3 12.9 13.4 13.2 10.8 12.9 12.4 10.6 19.7 46.0 54.4 7 8 .6 .7 .7 .9 .7 1.3 .9 .9 .4 1.7 2.3 2.4 8 9 Other loans............................................................... 1.4 1.4 1.4 1.6 2.0 2.2 2.2 2.8 3.8 4.3 4.1 4.1 9 10 Security credit.............................................................. .1 .1 .1 .1 .2 .2 .3 .6 .4 .3 .3 .4 10 11 Trade credit.................................................................. .8 .8 .8 .8 1.0 1.4 1.8 2.7 4.4 5.8 5.9 6.7 11 12 Miscellaneous assets................................................... 14.2 14.0 15.5 16.5 16.6 20.0 22.1 25.9 34.3 29.1 22.8 26.8 12 13 U.S. bank liabilities to foreign affiliates............ 3.8 3.7 4.0 4.6 4.7 7.6 8.3 10.6 18.6 11.6 7.6 8.5 13 14 Direct investment in U.S...................................... 7.4 7.6 7.9 8.4 8.8 9.1 9.9 10.8 11.8 13.3 13.7 14.5 14 15 Other......................................................................... 3.0 2.7 3.5 3.6 3.1 3.4 3.9 4.5 3.9 4.2 1.5 3.8 15 16 Total liabilities................................................................. 70.2 75.7 82.0 93.9 101.4 107.2 116.2 126.1 134.9 143.3 155.9 168.2 16 17 Official U.S. foreign exchange and net IMF position..................................................................... 1.8 1.2 1.2 1.2 1.6 1.6 2.8 4.8 5.1 2.6 .9 .7 17 18 Credit market instruments........................................ 25.4 27.7 30.9 36.6 39.4 40.2 43.1 45.8 47.6 51.1 57.3 61.7 18 19 Bonds......................................................................... 6.2 7.2 8.2 9.2 10.2 10.5 10.8 11.7 11.7 13.2 14.6 16.2 19 20 Bank loans n.e.c...................................................... 3.7 3.9 4.5 7.3 7.7 7.3 7.0 6.8 6.2 6.2 8.8 11.2 20 21 Other loans............................................................... 15.5 16.7 18.2 20.2 21.5 22.3 25.3 27.3 29.7 31.7 33.9 34.3 21 22 Security debt................................................................. .1 .1 .1 .1 .1 .1 .3 .5 .3 .3 .3 .4 22 23 Trade debt..................................................................... 1.9 2.2 2.2 2.8 2.7 3.0 3.5 3.9 5.2 6.2 6.7 7.3 23 24 Miscellaneous liabilities............................................. 40.9 44.6 47.5 53.1 57.6 62.2 66.5 71.0 76.6 83.2 90.7 98.2 24 25 U.S. capital subscription to IBRD, IDA, etc___ 1.0 1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.7 1.9 2.2 2.5 25 26 U.S. direct investment abroad 2.......................... 34.7 37.2 40.7 44.4 49.2 53.9 58.3 61.6 66.6 73.0 79.6 83.3 26 27 Foreign currency held by U.S.............................. 3.5 4.2 4.5 4.8 4.3 4.0 4.1 4.6 4.2 4.7 6.1 9.6 27 28 Other.......................................................................... 1.7 2.1 1.2 2.7 2.8 3.0 2.8 3.3 4.1 3.6 2.8 2.8 28 i Excludes U.S. issues in foreign markets to finance U.S. investment 2 Excludes investment financed by bond issues in foreign markets, abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.29 International statistics start on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 Line Credits+, debits — 1970 1971 1972 I II III IV IV 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 -39,788 -45,466 -55,681 -13,475 -13,313 -13,935 -14,958 -16,280 4 Military transactions, net.............................................................. -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 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 10 581 739 850 204 202 209 237 237 11 Balance on goods and services 3............................................................ 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 -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 -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 1,030 -115 160 -361 183 178 160 247 22 -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 25 526 216 492 -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 private capital flows, net....................... -482 -2,347 -1,637 -535 310 -430 -982 -1,420 28 -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 -3,851 -21,965 -13,882 -3,188 -2,307 -4,531 -3,851 -6,871 34 -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 Reported by U.S. banks............................................... -99 -566 -742 -637 246 * -274 -77 -1,295 37 351 -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 87 -465 810 53 281 154 322 15 42 -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- -810 -551 399 221 27 34 117 1,202 45 Nonliquid liabilities to foreign official reserve agencies re- 535 341 189 280 -2 78 -167 -44 46 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 2,152 381 35 64 -245 134 82 233 50 389 1,350 153 -1 185 -15 -16 -13 Memoranda: 51 Transfers under military grant programs (excluded from 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 434 498 (6) (6) (6) (6) (6) (6) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYIViENTS-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 Includes fees and royalties 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) 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 5,869 3,254 3,832 4,565 5.762 450 -259 -491 106 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 1.... 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 □ SEPTEMBER 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 III IV Western Europe: Austria.................................. -82 -55 -100 -25 Belgium................................ -40 -83 -58 -110 France................................... —5 i8 -405 -884 -6oi 600 325 -129 -473 Germany, Fed. Rep. of. . , -225 500 Ireland................................... -1 -2 -2 -52 41 Italy....................................... 200 -80 -85 -209 -76 Netherlands......................... -60 -35 -19 -50 -25 Spain...................................... -130 -32 -180 51 Switzerland........................... -81 -50 -2 -30 -50 -25 -50 -175 United Kingdom................ '329 618 150 80 -879 -835 Bank for Intl. Settlements. 200 Other...................................... -35 -49 16 -47 11 -29 -13 Total. -399 -1,299 -659 -980 -669 969 -204 -796 Canada ----- 200 150 50 Latin American republics: Argentina ....................... -1 -25 -25 -28 Brazil................................. 25 -1 -23 Colombia.......................... 29 -1 Venezuela.......................... -25 Other.................................. -13 -40 -29 -80 -5 Total. 32 56 17 -41 -65 -54 -131 -5 Asia: Iraq................. -10 -4 -42 Japan............... -56 Lebanon......... -11 -95 -35 Malaysia......... -34 -10 Philippines. .. 25 -1 9 40 -4 -2 Saudi Arabia. -50 Singapore----- -81 -30 Other............... -13 -75 -91 39 -3 -3 Total................... 12 3 -24 -86 -44 -366 42 -213 All other......................... -36 -7 -16 -22 3-166 3-68 -1 -81 Total foreign countries. -392 -1 ,322 -608 -1,031 -1,118 957 4-631 -845 -3 Intl. Monetary Fund5.. 6-225 177 22 -3 10 -156 -22 -544 Grand total -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -867 -547 1 Includes purchase from Denmark of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 2 Includes purchase from Kuwait of $25 million. by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 3 Includes sales to Algeria of $150 million in 1967 and $50 million in first withdrawal ($17 million) was made in June 1968 and the last with­ 1968. drawal ($144 million) was made in Feb. 1972. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Treasury to the IMF. The country data include U.S. gold sales to various countries securities. IMF repurchased $400 million in Sept. 1970 and the remaining in connection with the IMF quota payments. Such U.S. sales to countries $400 million in Feb. 1972. and resales to the United States by the IMF total $548 million each. 6 Payment to the IMF of $259 million increase in U.S. gold subscription 5 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in if needed. Under appropriate conditions, the United States could pur­ IMF operations. Does not include transactions in gold relating to gold chase additional amounts equal to its quota. deposit or gold investment (see Table 6). 5 Includes $259 million gold subscription to the IMF in June 1965 for 2 Positive figures represent purchases from the IMF of currencies of a U.S. quota increase, which became effective on Feb. 23, 1966. In figures other members for equivalent amounts of dollars; negative figures repre­ published by the IMF from June 1965 through Jan. 1966, this gold sub­ sent repurchase of dollars, including dollars derived from charges on scription was included in the U.S. gold stock and excluded from the purchases and from other net dollar income of the IMF. The United reserve position. States has a commitment to repurchase within 3 to 5 years, but only to 6 Includes $30 million of Special Drawing Rights. the extent that the holdings of dollars of the IMF exceed 75 per cent of 7 Represents amount payable in dollars to the IMF to maintain the the U.S. quota. Purchases of dollars by other countries reduce the U.S. value of IMF holdings of U.S. dollars. commitment to repurchase by an equivalent amount. 3 Includes dollars obtained by countries other than the United States Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. from sales of gold to the IMF. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 4 Represents the U.S. gold tranche position in the IMF (the U.S. 1966, to $6,700 million in Dec. 1970, and to $7,274 million in May 1972 as quota minus the holdings of dollars of the IMF), which is the amount a result of the change in par value of the U.S. dollar. Under the Articles of that the United States could purchase in foreign currencies automatically Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e c C u r r i r e o e t r i s i e n b g 5 n ­ l n e ­ p R I o e M s s i i n e t F i r o 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 Aug.... 13,124 10,488 10.410 234 444 1.958 1961... 18,753 16,947 16,889 116 1,690 Sept.... 13,217 10,487 10.410 323 449 1.958 1962... 17,220 16,057 15,978 99 1,064 Oct.... 13,313 10,487 10,410 414 454 1,958 1963... 16,843 15,596 15,513 212 1,035 Nov__ 13,307 10,487 10,410 403 459 1,958 1964... 16,672 15,471 15,388 432 769 Dec.... 13,151 10,487 10,410 241 465 1,958 1965... 15,450 6 13,806 613,733 781 6 863 1973 1966... 14,882 13,235 13,159 1,321 326 Jan.... 13,054 10,487 10,410 140 469 1,958 1967... 14,830 12,065 11,982 2,345 420 Feb.... 12,926 10,487 10,410 8 473 1,958 1968... 15,710 10,892 10,367 3,528 1,290 Mar. .. 12,931 10,487 10,410 8 478 1,958 1969... 716,964 11,859 10,367 7 2,781 2,324 Apr.... 12,904 10,487 10,410 8 460 1,949 May... 12,916 10.487 10.410 16 464 1.949 1970... 14,487 11,072 10,732 629 1,935 851 June. .. 12,914 10.487 10.410 8 470 1.949 1971... 812,167 10,206 10,132 8 276 585 1,100 July. . . 12,918 10,487 10,410 8 474 1,949 19729.. 13,151 10,487 10,410 241 465 1,958 Aug---- 12,923 10,487 10,410 8 479 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 fend of Deriod) U.S. U.S. transactions with IMF Transactions by reserve other countries position Period with IMF in IMF P s t u a d io y b o n m o s ll c s f a e r r i n i s n p t s ­ by s g N I a o M l e l e d t s F 1 T t c f i r c o u o a i r r n e n e r s s s i e g a n 2 i n c n ­ ­ I i d M n o c F i l o n l a m n rs e e t P d u o rc l o l h a f a r s s e 3 s pu d r o R c i l h n l e a a ­ r s s es c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957................................ 2,063 600 — 45 -2,670 827 775 775 28 1,975 1958—1963................................ 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966................................ 776 1,640 45 —723 6 1,744 4,834 94 5326 1967............................................ 20 -114 — 94 4,740 92 420 1968............................................ -84 20 -806 -870 3,870 75 1,290 1969............................................ 22 19 -1,343 268 -1 ,034 2,836 55 2,324 1970............................................ 1,155 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—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 Aug................................. -5 — 5 6,795 93 479 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. □ SEPTEMBER 1973 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid ties to End IMF Nonmar­ Liquid non­ pe o ri f od Total a a c t f r r g t i r a i s o o o n i l m n n d s g s ­ ! Total t p l S i i t e o a h e s r b r o t m i e r r l e t i d ­ ­ ­ M T U a a r b e r .S a k le s . e . t ­ N v k o e e U c n r t o a t . m i S n b b . ­ l a l e e r­ n v k T b o e e U o r n r t e t n a . c i S a b d b o s . l l s n . e e ­ m r l O e i a a a a t b r b d h k l i i e e l e l i r y t ­ ­ a t m o l b b i e a a t r c i r b o n e o c i k s a i m l a s d i­ l ­ 6 t p l S i i t o e a h e s r b r o t m i e r r l e t i d ­ ­ ­ M T U a a r b e r .S l a k e s . e . t ­ o a m g n r t i i g o d a o n a r n n t y r n i e a , e i ­ l ­ ­ by bonds Treas. and ties5 by bonds zations8 ba i n n k s no a t n e d s 3 bo an n d ds notes4 ba i n n k s not a e n s d 3 •7 U.S. notes U.S. 1962 9, 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 2,195 1963 9, / \ 2 2 6 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 5 2 9 5 1 1 2 2 . . 4 4 6 6 7 7 1 1, , 1 2 8 1 3 7 7 7 0 0 3 3 6 63 3 9 9 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3. . 0 04 4 6 6 3 3 5 4 1 1 1 1, , 9 9 6 6 5 0 1964 9, / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , . 7 78 9 6 0 1 13 3 , , 2 22 2 4 0 1 1 . . 1 1 2 2 5 5 1 1 . . 0 0 7 7 9 9 2 2 0 0 4 4 1 1 5 5 8 8 7 7 , , 2 3 7 0 1 3 3 3, , 7 7 5 3 3 0 3 3 , , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 . . 7 7 2 2 2 2 1965, 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9, / \3 3 1 1 , , 0 1 2 4 0 5 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 8 4 9 1 6 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 9 0 05 6 1967 9, \ ( 3 3 5 5 , , 6 8 6 19 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 2 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 1 1 1 , , 0 2 8 0 5 9 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 6 9 7 1 7 1968 9, J \3 3 8 8, ,4 6 7 8 3 7 1 1 . . 0 0 3 3 0 0 1 17 7 , , 3 40 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 51 1 8 8 2 2 . . 3 3 4 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 . .4 4 4 44 4 4 6 6 0 5 9 7 7 2 2 2 5 1969 9, io \ / 4 4 5 5 , , 9 7 1 55 4 1 1 . . 0 0 1 1 9 9 io 1 i5 5 , , 9 9 7 98 5 1 1 1 1 , , 0 0 5 77 4 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 . . 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , , 0 9 6 3 4 9 5 5 2 2 5 5 6 6 6 5 3 9 1970—Dec. 9, f47,009 566 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 /67,681 544 51,209 39,679 1.955 6,060 3,371 144 10,262 4,138 3,691 447 1,528 1971—Dec. ii \67,808 544 50,651 39,018 1.955 6,093 3,441 144 10,949 4,141 3,694 447 1.523 1972—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.r 82,372 61,127 40,045 4,834 12.098 3.651 499 14,776 4,745 4,322 423 1,724 Dec.r. 82,900 61,520 39,994 5,236 12,108 3,639 543 14,802 4,952 4,527 425 1,626 1973—Jan.r. 82,073 60,797 38,535 5,798 12,110 3,780 574 14,793 4,891 4,466 425 1,592 Feb.r. 87,870 68,475 45,413 6,377 12,110 3.627 948 12,809 4,967 4,595 372 1,619 Mar. r. i290,878 1271,331 46,924 6,917 1212,128 3,617 1,745 12,952 4,959 4,583 376 1,636 Apr.. . 1390,596 70,748 45,949 6.934 12.245 3,631 1,989 13,070 5,148 4,749 399 1,630 May. . 92,103 70,902 46,099 6.934 12.245 3.628 1,996 14,296 5,146 4,762 384 1,759 June?. 92,210 70,661 45,673 6.934 12.245 3.805 2,004 14,520 5,320 4,937 383 1,709 July?. 93,101 70,878 45,988 6.934 12.245 3,705 2,006 15,429 5,249 4,875 374 1,545 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

SEPTEMBER 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 • Canada A re m p L u a e b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 1967................................................................................................. 18,194 10,321 1,310 1,582 4,428 250 303 1968 3............................................................................................. /17,407 8,070 1,867 1,865 5,043 259 303 \17,340 8,062 1,866 1,865 4,997 248 302 1969 3............................................................................................. /4 15,975 4 7,074 1,624 1,888 4,552 546 291 \ 15,998 7,074 1,624 1,911 4,552 546 291 1970 3............................................................................................. /23,786 13,620 2,951 1,681 4,713 407 414 123,775 13,615 2,951 1,681 4,708 407 413 1971 5............................................................................................. /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972—July..................................................................................... 59,416 36,370 4,446 1,393 14.727 572 1,908 Aug..................................................................................... 60,606 36,612 4.463 1,420 15,352 652 2,107 Sept..................................................................................... 60,075 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.r.................................................................................. 61,520 34,197 4,279 1,731 17.573 777 2,963 1973—Jan.r................................................................................... 60.797 34,146 4,201 1,728 17,034 673 3,015 Feb. »•.................................................................................. 68,475 40,773 4,290 1.895 17,907 809 2,801 Mar.r................................................................................. 6 71.331 6 45.229 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.................................................................................... 70i902 46,641 4,104 1,903 14,417 940 2,897 June?.................................................................................. 70,661 46,942 4,111 1,990 13,725 992 2,901 July?.................................................................................. 70,878 47,009 4,043 2,070 13,684 928 3.144 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 organizations6 Payable in dollars Deposits IMF End of period Total 1 Total Deposits b T i r ll U e s a .S s a u . n r d y s O t h e t o r h m r e t r ­ P r f e o a c n y r i u e n c a r i i b g ­ e l n s e in m g v o e e l n s d t t ­ 5 Total Demand Time2 b T i c l r c U e l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t r o b h m r e . 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............ 1 f4 4 1 1, , 7 7 6 1 1 9 4 4 1 1, , 3 3 5 9 1 3 1 1 5 5 , ,7 79 8 5 5 5 5 , , 9 9 6 2 1 4 1 1 4 4 , , 1 1 2 2 3 3 5 5 , , 5 5 1 1 9 4 3 36 68 8 4 4 0 0 0 0 8 8 2 2 0 0 6 69 9 1 1 5 5 9 9 2 2 1 1 1 1 3 3 8 8 1 1 /55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 1971 8........... \55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 1972—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.r 60,653 60,111 7,011 5,378 32,774 14,948 543 1,511 95 241 380 794 Dec.r 60,736 60,239 8,288 5,628 31,850 14,473 496 1,412 86 201 326 800 1973—Jan.r. 59,173 58,648 7,452 5,532 30,134 15,530 526 1,379 118 171 279 811 Feb.r. 64,234 63,722 7,786 5,594 36,538 13,803 513 1,417 133 143 303 838 Mar.r 65,883 65,335 7,606 5,610 37,966 14,153 548 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. 66,747 66,175 8,374 5,700 35,965 16,136 572 1,589 147 118 148 1,177 June?, 66,739 66,089 9,118 5,814 34,951 16,206 650 1,608 155 133 189 1,131 July?. 67,808 67,211 8,987 5,872 34,556 17,796 597 1,516 206 113 116 1,080 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. □ SEPTEMBER 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 End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e a l r s a t . t e s S i a f s u . n i 3 r ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ P f r o e a c n r y i u e c n a i r i b g ­ e l n s e Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O l t h i e a t o r h b m r e t . ­ 4 r c P u f r a o r y r e i e a n n i b c g l i n e es 1969......................... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 J40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 148 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 148 19718....................... J53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 158 \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972—July.............. 56,028 7,219 4,485 32,738 11,106 481 39,777 1,521 2,377 32,655 3,054 170 Aug.r........... 57,563 6,566 4,600 33,573 12,368 455 40,611 1,308 2,412 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.r........... 59,323 8,203 5,427 31,523 13,674 496 39,994 1,589 2,876 31,453 3,905 171 1973—Jan.r............ 57,794 7,333 5,361 29,855 14,720 526 38,535 1,405 2,875 29,779 4,304 171 Feb.r , 62,817 7,653 5,450 36,235 12,965 513 45,413 1,756 2,841 36,147 4,497 172 Mar.r.......... 64,459 7,492 5,477 37,687 13,254 548 46,924 1,543 2,832 37,620 4,757 172 Apr............... 63,768 7,999 5,541 36,219 13,425 584 45,949 1,714 2,916 36,137 4,996 9187 May............. 65,157 8,227 5,583 35,817 14,959 572 46,099 1,723 2,933 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 July?........... 66,292 8,781 5,758 34,440 16,716 597 45,988 1,934 3,183 34,360 6,322 189 To banksii 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 m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 c c e a r t t e if s i­ liab.4 Demand Time2 c c e a r t ti e f s i­ liab.4 1969.......................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 ...................... (21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 121,208 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 96 274 228 114,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972—July.............. 16,251 11,816 3,877 285 5 7,649 4,123 1,821 1,822 77 402 311 Aug.r........... 16,951 12,626 3,555 336 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.r........... 19,329 14,477 4,659 525 5 9,287 4,527 1,954 2,026 65 481 325 1973—Jan.r............ 19,260 14,438 4.155 415 7 9,861 4,467 1,773 2,070 69 555 355 Feb.r........... 17,405 12,467 4,084 483 5 7,895 4,596 1,813 2,127 83 573 341 Mar.r.......... 17,535 12,576 4,144 518 5 7,909 4,583 1,805 2,127 63 588 376 Apr............... 17.820 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 July?............ 20,303 15,021 4,957 432 8 9,624 4,874 1,890 2,143 72 769 408 1 Data exclude “holdings of dollars” of the IMF. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches, which were previously reported as deposits, are included in “Other.” in “Other short-term liabilities”; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities to official time certificates of deposit. See also note 8(a). institutions of foreign countries revalued to reflect market exchange rates. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of lOForeign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac­ 11 Excludes central banks, which are included in “Official institutions.” quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop­ Note.—“Short term” refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the “holdings of dollars” IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti­ 1 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

SEPTEMBER 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. Oct. Nov.r Dec.r Jan.r Feb.r Mar.r Apr. r May June? July;' Europe: 254 279 245 272 268 267 281 292 301 297 305 Belgium-Luxembourg................................. 701 1,159 1,070 1,092 974 1,165 1,253 1,245 1.373 1,376 1 ,443 168 217 254 284 321 364 400 406 502 489 477 160 161 157 163 152 158 142 168 244 194 165 France............................................................ 3,150 4,501 4,630 4,441 4,434 4,483 5,000 5,167 5,327 5,406 5,452 Germany....................................................... 6,596 5,809 5,514 5,346 5,034 10,494 12,990 12,701 12,161 12,003 12,837 Greece............................................................ 170 195 190 238 210 224 223 175 219 219 240 Italy................................................................ 1,887 1,345 1,354 1,338 1,085 1,041 968 1,020 1,171 1,072 870 Netherlands.................................................. 270 1,460 1,442 1,468 1,356 1,762 2,532 2,543 2,427 2,369 2,029 Norway.......................................................... 685 895 960 978 973 995 1,018 1,035 1,046 1,050 1,082 Portugal......................................................... 303 379 413 416 439 498 518 502 511 499 477 Spain.............................................................. 203 230 223 256 231 222 256 250 325 334 282 Sweden........................................................... 792 1,059 1,081 1,184 1,189 1,403 1,483 1,682 1,787 1,905 1 ,951 Switzerland................................................... 3,249 3,072 2,838 2,857 2,924 2,845 2,901 2,959 3,272 3,306 3,337 T urkey........................................................... 68 71 96 97 109 94 105 118 71 75 102 United Kingdom........................................ 7,379 5,683 5,430 5,011 5,510 4,546 4,657 4,741 5,899 6,317 6,456 Yugoslavia.................................................... 34 56 98 117 82 78 58 69 73 66 66 Other Western Europe1............................ 1,391 1,428 1,479 1,483 1,464 1,502 1,619 1,772 2,159 2,335 2,832 U.S.S.R.......................................................... 14 16 10 11 14 21 14 8 9 11 18 Other Eastern Europe................................ 53 63 58 81 71 65 71 71 66 74 81 Total....................................................... 27,529 28,078 27,541 27,134 26,840 32,227 36,488 36,924 38,944 39,397 40,501 Canada............................................................... 3,441 3,969 3,799 3,484 3,889 3,325 3,290 3,618 3,816 3,306 3,401 Latin America: Argentina....................................................... 441 532 547 631 631 689 687 694 730 727 750 Bahamas 2.................................................... 656 576 576 539 290 261 198 226 496 440 768 Brazil.............................................................. 342 601 564 605 643 648 671 703 768 765 917 Chile............................................................... 191 135 135 137 132 136 143 140 138 140 134 Colombia....................................................... 188 192 185 210 210 218 184 197 218 200 200 6 6 6 6 7 7 6 7 7 10 7 Mexico........................................................... 715 671 659 831 783 800 788 853 843 925 919 Panama......................................................... 154 151 150 167 193 201 171 168 192 186 194 Peru................................................................ 164 180 183 225 176 167 172 167 170 180 190 Uruguay......................................................... 108 125 133 140 140 138 132 ; 143 150 180 128 Venezuela...................................................... 963 924 926 1,077 995 1,051 948 1,044 967 1,054 1,066 Other Latin American republics.............. 655 747 751 860 839 827 804 818 778 777 744 Netherlands Antilles and Surinam.......... 87 82 89 86 81 84 76 72 64 68 78 Other Latin America.................................. 37 55 57 44 235 237 216 243 264 651 400 Total....................................................... 4,708 4,979 4,961 5,558 5,354 5,461 5,196 1 5,477 5,785 6,303 6,494 Asia: China, People’s Rep. of (China Mainland) 39 39 39 39 39 37 49 43 44 41 38 China, Republic of (Taiwan).................... 258 590 639 675 737 783 816 831 830 843 788 Hong Kong................................................... 312 313 310 318 336 319 337 330 368 341 290 India............................................................... 89 103 107 98 115 134 114 125 145 110 144 Indonesia....................................................... 63 114 107 108 101 96 89 I 90 117 155 176 Israel............................................................... 150 127 141 177 139 146 137 144 142 161 159 Japan............................................................. 14,295 15,485 16,152 15,843 14,570 14,733 12,344 10,415 9,056 8,458 8,125 Korea............................................................. 196 218 201 192 224 210 227 214 231 226 219 Philippines..................................................... 306 382 394 438 446 453 513 520 583 558 559 Thailand......................................................... 126 143 128 171 211 187 170 166 177 175 147 Other.............................................................. 595 1,016 965 1,071 951 897 869 940 872 883 955 16,429 18,529 19,182 19,131 17,868 17,995 15,665 13,818 12,565 11,951 11,602 Africa: Egypt.............................................................. 24 23 24 24 21 28 17 1 33 67 29 29 Morocco........................................................ 9 10 11 12 9 8 13 1 9 8 11 15 South Africa................................................. 78 57 83 115 111 104 125 125 120 155 169 Zaire............................................................... 12 14 > 17 21 18 23 22 28 45 17 21 Other.............................................................. 474 595 678 768 573 728 739 798 786 904 803 Total....................................................... 597 700 814 939 733 891 917 992 1,025 1,118 1,037 Other countries: Australia........................................................ 916 2,553 2,801 3,027 3,046 2,861 2,849 2,882 2,961 2,985 3,197 All other........................................................ 42 47 46 51 65 57 54 57 60 71 61 Total....................................................... 957 2,600 2,846 3,077 3,111 2,918 2,903 2,939 3,022 3,056 3,258 Total foreign countries.................................. 53,661 58,855 59,143 59,323 57,794 62,817 64,459 63,768 65,157 65,130 66,292 International and regional: International............................................... 1,327 794 1,030 951 930 957 979 982 1,144 1,190 1,136 Latin American regional........................... 298 320 316 307 301 318 320 337 337 321 299 Other regional4............................................ 142 167 165 155 148 142 126 109 108 97 81 Total....................................................... 1,767 1,281 1,511 1,412 1,379 1,417 1,425 1,428 1,589 1,609 1,516 Grand total........................................... 55,428 60,136 60,653 60,736 59,173 64,234 65,883 65,196 66,747 66,739 67,808 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1973 9. SHORTTERM 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. jDec. Apr. Dec Apr. Other Western Europe: Other Asia—Cont.: Cyprus................................................... 7 2 2 3 9 36 20 16 39 36 Iceland................................................... 10 11 9 9 12 2 3 3 2 3 Ireland, Rep. of.................................. 29 16 15 17 22 60 | 46 60 55 55 28 ; 23 25 54 59 Other Latin American republics: 28 33 58 59 93 Bolivia................................................... 59 55 53 87 65 Ryukyu Islands (incl. Okinawa)6 39 1 29 53 Costa Rica............................................ 43 62 70 92 75 Saudi Arabia.................................. 41 79 80 344 236 90 123 91 114 104 Singapore......................................... 43 ! 35 45 77 53 Ecuador................................................ 72 57 62 121 109 Sri Lanka (Ceylon)....................... 4 4 6 5 6 80 78 83 76 86 3 4 6 4 39 Guatemala............................................ 97 117 123 132 127 161 159 185 135 98 Haiti....................................................... 19 18 23 27 25 44 42 50 58 64 19 19 32 41 32 Other Africa: Nicaragua............................................. 47 50 66 61 79 13 23 31 32 51 15 17 17 22 26 Ethiopia (incl. Eritrea)................. 12 11 29 57 75 14 10 15 20 17 6 8 11 10 28 13 9 14 23 19 Other Latin America: 21 23 25 30 31 (2) (2) (2) (2) 127 91 274 296 393 (7) British West Indies............................. 38 32 23 36 100 25 46 56 85 (7) Southern Rhodesia........................ 2 I 2 2 2 1 Other Asia: 1 1 1 5 3 3 Afghanistan.......................................... 15 19 17 25 19 Tanzania.......................................... 10 1 6 6 11 16 35 21 18 24 (7) 6 9 7 10 11 Burma.................................................... 3 10 5 2 (7) 5 3 10 7 19 Cambodia............................................. 2 5 2 3 3 14 13 7 28 (7) 67 59 88 93 114 Iraq......................................................... 7 10 9 10 (7) All other: Jordan.................................................... 3 2 2 4 4 New Zealand.................................. 22 23 27 30 34 j 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—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. r................. 1,051 600 450 94 269 88 165 68 37 134 1 32 14 Dec.r.................. 1,000 562 439 93 259 87 165 63 32 136 1 32 10 1973—Jan.r................... 1,026 599 427 74 257 96 165 61 30 127 1 30 13 Feb.r.................. 1,259 596 663 304 258 100 164 59 233 118 1 71 16 Mar.r................. 1,389 680 709 328 269 112 164 66 234 133 1 96 16 Apr...................... 1,382 669 713 329 274 111 164 68 239 128 1 98 16 May.................... 1,362 671 691 313 274 104 164 68 231 115 1 96 16 Junep................. 1,439 742 697 311 274 113 164 68 233 125 4 92 10 July^................... 1,484 756 727 311 275 141 164 68 235 145 2 93 19 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June^ July'' Europe: 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden................................. 19 17 15 35 85 85 110 135 135 135 135 135 135 49 45 45 45 45 45 45 44 43 44 43 43 42 265 280 293 308 326 327 327 276 278 300 281 280 275 Other Western Europe.............. 79 79 79 79 79 79 79 79 79 79 85 85 85 Eastern Europe....................... 5 5 5 5 5 5 5 5 5 5 5 5 5 Total.............................. 422 432 443 478 545 547 572 544 546 569 555 554 547 313 372 432 479 559 558 558 559 561 561 560 560 560 Latin America: Latin American republics........... 1 1 1 1 1 1 1 1 1 1 1 1 1 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................................... 3,125 3,310 3,481 3,756 4,003 4,380 4,867 5,421 5,961 5,978 5,978 5,977 5.977 Other Asia............................. 10 10 10 10 10 10 10 10 10 10 10 10 9 Total.............................. 3,136 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5.987 Africa...................................... 8 127 133 133 133 133 183 183 183 183 183 183 183 * * * ♦ * 25 25 25 25 25 25 25 25 Total foreign countries................. 3,886 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7.317 7.308 International and regional: International.......................... 136 176 186 186 186 186 186 176 186 176 142 72 1 Latin American regional............ 27 27 27 27 28 28 28 26 26 27 27 27 28 Total.............................. 162 203 213 213 214 214 214 202 212 202 169 100 29 Grand total...................... 4,048 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7.337 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 e y r­ 3 Italy e S r w la i n tz d ­ 196 9 43,181 1,431 32 1,129 20 135 100 4 1,750 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—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 Aug. 16,015 14,383 2,690 11.670 22 1.631 172 1 .458 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. □ SEPTEMBER 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. Oct.r Nov.r Dec. Jan. Feb. Mar. Apr. May June? July" Europe: Austria........................................ 11 15 10 8 7 13 9 9 9 12 10 Belgium-Luxembourg...................... 57 87 84 120 67 124 100 87 73 94 96 Denmark..................................... 49 52 57 59 58 59 60 63 69 69 56 Finland........................................ 135 119 123 118 127 122 131 134 140 141 134 France........................................ 263 274 272 330 275 312 424 451 447 377 438 Germany..................................... 235 287 296 321 267 414 371 345 356 382 353 Greece........................................ 30 27 27 29 34 23 29 32 19 19 28 Italy........................................... 160 177 170 255 221 271 269 288 327 326 274 Netherlands.................................. 105 104 101 108 93 152 118 129 115 109 101 Norway....................................... 67 62 62 69 62 63 70 66 67 65 79 Portugal...................................... 12 22 21 19 21 26 20 30 17 19 18 Spain.......................................... 70 229 215 207 210 236 282 238 360 387 272 Sweden........................................ 118 128 123 156 176 249 235 238 259 226 225 Switzerland................................... 145 186 150 125 187 206 152 186 190 241 212 Turkey........................................ 3 4 4 6 5 6 5 5 6 9 7 United Kingdom........................... 559 654 723 849 672 ,001 847 795 876 893 987 Yugoslavia................................... 19 18 16 22 18 20 18 20 13 12 12 Other Western Europe..................... 12 23 19 20 23 26 22 29 21 29 20 U.S.S.R....................................... 28 30 32 41 44 55 54 61 50 56 56 Other Eastern Europe...................... 37 40 38 49 47 51 52 60 69 73 84 Total..................................... 2,114 2,540 2,545 2,911 2,613 3,431 3,269 3,265 3,483 3,537 3,462 Canada........................................... 1,627 1 ,676 1 ,897 1,939 2,372 2,461 2.286 2,379 2.020 2,134 Latin America: Argentina..................................... 305 363 357 379 389 417 406 396 408 407 431 Bahamas 1.................................... 262 372 403 476 413 521 461 505 409 399 495 Brazil.......................................... 435 657 631 649 641 727 740 759 851 889 955 Chile........................................... 139 58 53 52 53 49 51 45 40 43 38 Colombia..................................... 380 384 396 418 408 412 380 401 397 411 417 Cuba........................................... 13 13 15 13 12 13 13 13 13 14 13 Mexico........................................ 934 1,126 1,168 1,202 1,202 1,213 1,320 1,343 1,343 1,394 1 ,375 Panama....................................... 125 143 177 244 219 220 212 183 190 213 223 Peru........................................... 176 138 147 145 129 136 132 143 147 169 180 Uruguay...................................... 41 36 38 40 40 38 40 36 31 34 34 Venezuela..................................... 268 361 386 383 388 385 404 401 440 452 454 Other Latin American republics.......... 374 353 368 388 393 379 369 382 383 380 372 Netherlands Antilles and Surinam....... 18 15 13 14 15 15 20 27 35 38 48 Other Latin America....................... 26 32 33 36 56 70 103 85 74 66 71 Total..................................... 3,494 4,049 4,187 4,437 4,359 4,592 4,649 4.717 4,761 4,909 5,107 Asia: China, People’s Rep. of (China Mainland) 1 1 1 1 2 2 2 2 5 3 7 China, Republic of (Taiwan)............. 109 187 201 194 205 211 231 238 216 200 193 Hong Kong.................................. 70 76 76 93 84 103 111 122 132 203 218 India........................................... 21 15 17 14 15 15 16 14 19 21 18 Indonesia..................................... 41 74 74 87 87 103 127 127 97 94 91 Israel........................................... 129 87 105 105 126 106 141 126 116 111 133 Japan.......................................... 4,280 3,715 3,998 4,158 4,081 5,277 5,568 5,663 5,536 5,756 5,756 Korea......................................... 348 302 317 296 271 288 301 331 338 347 346 Philippines.................................... 138 151 160 149 148 150 140 150 139 144 134 Thailand...................................... 172 177 183 191 184 195 205 197 194 173 188 Other.......................................... 252 244 260 300 288 335 274 296 324 354 353 Total..................................... 5,560 5,030 5,393 5,589 5,490 6,786 7,116 7,267 7.116 7,407 7.438 Africa: Egypt.......................................... 10 17 16 21 22 20 20 22 25 34 45 Morocco...................................... 4 5 4 4 6 5 7 5 4 4 5 South Africa................................. 156 134 145 143 150 155 155 151 166 163 150 Zaire........................................... 21 14 10 13 15 13 11 13 13 42 43 Other.......................................... 96 109 112 124 116 113 133 137 136 143 147 Total..................................... 288 279 286 304 309 305 325 327 343 386 389 Other countries: Australia...................................... 158 229 271 291 272 256 244 249 232 260 271 All other...................................... 28 36 36 40 50 44 47 50 47 46 40 Total..................................... 186 265 308 330 322 300 291 299 280 305 310 Total foreign countries........................ 13,269 13,840 14,413 15,468 15,032 17,787 18,111 18,161 18,362 18.564 18.839 International and regional.................... 3 6 6 3 3 3 1 2 2 1 2 Grand total............................ 13,272 13,845 14,419 15,471 15,035 17,789 18,113 18,163 18,364 18.565 18.840 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

SEPTEMBER 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in f s f L i t c i o t i u a a ­ n l s t B o a — nks1 Others C s t o t o i a o u ll n n e t d s ­ c ­ ­ f A o o a m c r f n c a a f c e o d c e p e r c s t ­ t ­ . Other Total w D e i e i t g h p n o e f s o r i s t r s ­ g c F a o u c o n o v r r i d e t m t , i i e f g s l i s . e ­ n , ­ Other tions ing eigners nance paper 1969....................................... 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 1970....................................... 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1 0*71 2 j13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 \13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1972—July........................ 14,273 13,371 5,049 164 2,779 2,106 2,703 3,227 2,392 902 516 278 108 Aug.r.................... 14,361 13,415 4,978 152 2,710 2,116 2,805 3,082 2,551 946 482 338 126 Sept.r.................... 13,930 13,042 4,980 143 2,572 2,265 2,882 2,967 2,213 888 431 330 127 Oct.r...................... 13,845 13,069 5,138 146 2,666 2,326 2,987 2,953 1,991 776 408 209 159 Nov. r.................... 14,419 13,649 5,306 157 2,700 2,448 3,130 3,129 2,085 770 412 219 139 Dec.r...................... 15,471 14,625 5,674 163 2,975 2,535 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 3,555 3,282 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 May........................ 18,364 17,511 6,935 163 3,824 2,947 3,789 3,600 3,186 854 499 237 118 June?...................... 18,565 17,742 7,257 199 4,033 3,025 3,846 3,961 2,679 823 537 140 147 July?....................... 18,840 17,969 7,012 169 3,900 2,943 3,831 3,892 3,234 872 599 151 122 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 n re ig n n ­ U K d n i o n it m g ed ­ E O u t r h o e p r e Canada Am La e t r i i n ca Japan O A t s h i e a r co o u A t n h t l e r l i r es Official Other term cies Total institu­ Banks * 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-—July. . 4,310 4,003 757 356 2,890 275 32 146 674 283 1,724 294 754 434 Aug.r, 4,394 4,079 771 398 2,910 281 34 141 671 279 1,793 288 773 448 Sept.r 4,542 4,227 796 402 3,030 282 33 128 687 291 1,866 289 802 480 Oct.r. 4,649 4,323 796 412 3,114 292 35 139 658 340 1,897 305 828 481 Nov.r 4,702 4,378 819 432 3,127 291 33 143 658 360 1,880 305 863 493 Dec.r. 1 f4 5 , , 9 0 5 2 4 0 4 4 , , 5 53 4 9 4 8 83 3 3 3 4 4 3 3 0 0 3 3 , , 2 2 8 7 2 6 4 3 3 7 6 5 4 4 0 0 1 1 4 4 5 5 7 70 0 9 4 4 4 0 0 6 6 2 1 , , 0 9 0 9 6 6 3 3 1 4 9 8 8 8 8 9 1 8 5 5 0 0 3 9 1973—Jan. 5,022 4,541 835 440 3,266 440 41 144 732 403 1,967 353 915 508 Feb.r. 5,131 4,630 840 470 3,319 449 52 135 771 434 1,986 342 928 535 Mar.r. 5,276 4,769 897 480 3,392 460 47 121 859 453 1,978 336 985 544 Apr.r. 5,419 4,923 931 514 3,477 448 49 122 912 477 2,000 337 1,028 544 May.. 5,522 5,019 932 545 3,541 456 48 131 931 511 2,001 331 1,059 558 JuneP. 5,636 5,102 965 566 3,570 489 45 129 1,016 521 1,999 311 1,099 561 July?. 5,626 5,116 957 554 3,605 456 54 128 1,029 517 1,984 310 1,122 535 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. □ SEPTEMBER 1973 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corpora2te Marketable U.S. Treas. bonds and notes 1 securities 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 ha s e s a t e le p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e s a t e le p s s u o r r ­ ch P a u s r e ­ s Sales c N h e a s t s a e le p s s u o r r ­ regional Total Official Other 1970..................................... 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971..................................... 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 1972 r.................................. 3.316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 409 1973 Jan.-July^.......... 1,463 -185 1,648 1,697 -50 11,003 7,188 3,815 956 1,333 -377 1,054 871 183 1972—July r.................... 223 1 222 224 -2 1,196 1,157 39 191 101 90 155 166 -11 Aug.r................... 413 40 373 365 9 1,502 1,223 279 129 98 30 242 179 63 Sept.r.................. 258 10 247 237 11 1,165 843 322 173 163 11 173 142 32 Oct.r.................... 356 356 340 17 1,353 1,045 309 154 207 -53 188 119 69 Nov.r.................. 395 1 395 377 18 1,927 1,295 632 136 171 -35 192 110 82 Dec r.................... 404 404 403 1 2,014 1,375 639 243 465 -222 233 178 55 1973—Jan.r.................... 562 562 562 * 1,874 1,125 750 191 323 -132 161 158 4 Feb.r.................... 515 -12 527 579 -52 1,796 1,066 731 145 144 * 194 145 49 Mar....................... 554 10 544 540 3 2,220 1,111 1,109 144 125 19 211 114 97 Apr.r.................... 31 -9 40 16 23 1.564 1,040 523 117 292 -175 121 112 9 May...................... -48 -33 -15 * -15 1,141 1,101 40 139 150 -11 137 125 12 Junep ............... -71 -69 -1 -1 1,087 899 188 125 103 22 123 111 12 JulyP.................... -79 -71 -9 -9 1,320 847 473 94 194 -99 107 107 * 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r­ y N la e n th d e s r­Sw la 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 ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e rie r s r I e n g t i l o . n & a l 1970............................ 626 58 195 128 110 -33 24 482 -9 47 85 -1 1 22 1971............................ 731 87 131 219 168 -49 71 627 -93 37 108 * -2 54 1972r......................... 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 -1 -1 86 1973—Jan.-JulyP. 1,769 182 -35 170 607 216 195 1,335 142 -42 294 -1 2 39 1972—Julyr........... 3 -6 -44 -14 56 15 -2 5 4 -25 12 * * 7 Aug.r.......... 252 60 -13 8 68 101 26 249 9 -16 4 * * 6 Sept.r. . . . 166 36 -7 15 51 56 12 16? -12 1 11 * * 3 Oct.r.......... 159 65 6 24 83 -89 19 109 8 2 29 * -1 12 Nov.r... . 490 85 44 55 61 150 53 449 13 25 -8 * -1 12 Dec.............. 350 48 -3 42 59 > 132 19 297 -1 8 42 * * 4 1973—Jan.r.......... 490 32 29 47 144 118 22 392 25 -20 85 * 1 7 Feb.r.......... 461 25 4 67 152 89 46 383 37 -10 46 * 4 Mar............. 350 35 8 47 148 21 29 288 25 5 21 * 1 10 Apr.. r.... 139 21 9 -8 53 -16 46 105 34 -10 5 * * 4 May............ -121 -2 -43 -14 -22 -39 3 -117 -7 -16 11 — 2 * 11 Junep.......... 134 2 -23 7 52 15 21 74 8 -2 55 * * -2 JulyP.......... 316 67 -19 25 80 28 28 210 19 11 71 * * 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r­ y N la e n th d e s r­Sw la 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 ro ta p l e Canada Am La e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1970............................ 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971........................... 684 15 35 -1 197 327 39 612 37 19 -2 * -21 39 1972'......................... 1,871 336 77 74 135 357 315 1,293 82 22 323 2 * 148 1973—Jan.-July* 2,046 102 * -23 199 83 413 775 69 18 966 * 11 206 1972—July............. 36 9 -4 8 41 -34 12 33 4 2 1 * * -4 A Se u p g t .. . . r ... . . . .. .. . .. . . 1 2 5 7 6 7 6 4 4 6 3 1 1 6 7 -1 2 6 4 4 8 5 0 1 6 3 2 4 1 9 0 -1 * -1 * * 1 * * -4 1 4 2 Oct.r........... 150 36 7 1 35 34 54 168 5 3 2 * * -28 Nov.r.... 142 2 30 27 -1 46 42 147 -6 1 1 * * * Dec.............. 289 56 30 * 14 49 60 210 8 3 29 1 * 38 1973—Jan.'........... 260 12 * -2 29 49. 73 161 1 6 31 ♦ * 60 Feb.............. 270 6 4 2 30 46 60 149 36 1 110 * * -26 A M p a r r . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3 5 8 9 5 4 3 5 3 2 3 -22 * - 6 7 5 -9 -3 6 1 9 5 4 8 1 9 7 8 4 16 * 4 4 6 1 2 9 3 9 * * * * -4 6 2 8 J J M u u a n ly y e * . * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 16 5 5 1 8 4 6 * 1 - - - 3 2 4 -1 * * - 7 3 6 9 - - 1 1 12 5 9 0 - 2 2 2 7 - 2 2 - 1 1 0 5 7 7 3 -1 3 1 2 * 1 * * * 10 * * -6 1 5 5 3 9 0 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 1972r.................. -651 -90 -561 492 -651 -69 -296 -66 29 Dec..................................... 349 281 1973—Jan.- 511 314 July*. .. -194 67 -261 24 -292 -65 44 * 29 June................................... 419 300 333 320 1972—July.... 79 78 1 36 23 2 -62 * 2 311 314 Aug------ 93 -1 94 50 49 -1 -5 * 2 Sept— 42 6 36 47 3 9 -24 * 1 1972—Mar.................................... 325 379 Oct.r... 16 16 * 46 -73 2 23 * 2 June................................... 312 339 Nov.r.. 47 11 36 39 -4 8 -8 * * 286 336 Dec.r.. -167 9 -176 7 -158 -26 -2 2 1 372 405 1973—Jan.r... -129 9 -138 8 -67 -70 -9 * * 1973—Mar.................................... 310 364 Feb.r. . 49 -2 51 -3 41 -16 29 * * June*................................. 315 242 Mar____ 116 23 93 24 34 8 27 * 1 Apr.. .. -166 16 -182 22 -193 -6 -5 * * May.. . -1 11 -10 -22 -13 6 6 -1 14 Note.—Data represent the money credit balances and June*.. 34 7 27 10 6 13 -13 1 9 money debit balances appearing on the books of reporting July*... -99 3 -102 -14 -100 * 9 * 2 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by Notes to Tables 21a and 21b on following pages: i Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $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

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1973 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 1970—Dec............... 47,363 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 1970—Dec............... 34,619 9,452 7.233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Dec............... 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 9,536 577 1972—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 Sept.............. 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 M ay............. 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 1,230 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 M ay............ 49,080 1,744 910 834 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 Q.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 O ct............ 27,978 2,307 25,244 4,169 16,249 4,827 427 Nov.............. 27,865 1,846 25,579 4,049 16,399 5,132 439 Dec.............. 30,381 2,146 27,787 4,326 17,976 5,485 447 1973—Jan............... 30,652 2,468 27,778 4,184 18,069 5,526 405 Feb.............. 32,746 1,814 30,423 4,568 20,219 5,637 508 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 -----v---------------------✓ 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 1,166> 7,618 4,183 3,435 117 Junec.......... 10,071 1,552 295: 1,257' 8,392 4,821 3,571 128 July.............. 10,329 1,409 110i 1,298! 8,786 4,924 3,863 134 Aug.c.......... 11,515 1,530 118i 1,413i 9,846 5,682 4,164 139 Sept.............. 11,914 1,612 221 1,391 10,150 5,929 4,221 152 Oct............... 12,017 1,739 251 1,4891 10,120 5,836 4,284 157 Nov.............. 12,330 1,586 221 1,365> 10,577 6,209 4,368 167 Dec............... 13,091 1,496 225; 1,272! 11,419 6,965 4,454 175 1973—Jan............... 13,065 1,387 182! 1,20<:1 11,496 6,754 4,742 181 Feb............... 13,559 1,461 83i 1,378! 11,86C 7,189 4,671 238 Mar.............. 13,764 1,211 9Cl 1,121 12,283 7,520 4,764 271 Apr.............. 13,653 1,407 293' 1,,1212311 11,988 6,726 5,262 258 May............. 114,687 1,498 272: l r 12,845 7,235 5,611 343 Digitized for FRASEFoRr notes see p. A-85. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners Other Offi­ Non­ Other Month-end Location and currency form branches Other cial bank Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 47, 42,812 6,426 24,829 4,180 7,377 1,967 ...............1970—Dec. .. .Total, all currencies 61, 56,124 10,773 31,081 5,513 8,756 2,098 ...............1971—Dec. 6694;, 6 5 4 9 , , 5 6 9 4 1 8 1 1 1 0 , , 0 0 6 5 9 5 3 3 6 3 , , 1 1 1 1 2 4 1 6 , . 2 6 2 4 3 9 1 9 0 , , 8 1 3 8 0 7 1 1, , 9 9 0 4 8 4 ..............1972—May 69! 64,712 11,283 35,860 7,176 10,393 2,039 .............................July 72; 67,392 11,510 37.327 7,841 10,714 2,200 74; 69,340 11,123 39,328 8,208 10,680 2,263 74; 69,198 11,204 38,470 8,236 11,287 2.342 s 16 o; 70,513 11,146 39,324 8,401 11,642 2,493 73,842 11,344 42,531 8,486 11,483 2,634 81, 75,273 11,746 42,260 9,236 12,032 2,513 .............. 1973—Jan. 87; 80,886 11,901 46,373 9.388 13,224 3,136 ..............................Febr 9 9 9 0 2 i;; 8 8 3 4 , , 3 0 4 6 5 6 1 1 2 2 , , 6 2 3 1 8 9 4 4 7 8 , , 8 5 7 2 4 0 9 9, , 5 4 3 5 8 4 1 13 3 , , 8 2 7 9 3 4 3 3, , 4 5 4 4 3 7 ; 84,612 13,241 48,536 9,331 13,505 3,791 ..............................May 4362, 32,509 4,079 19,816 3,737 4,877 1,243 ...............1970—Dec. .Payable in U.S. dollars ; 38,083 6,653 22,069 4,433 4,928 1,276 .............1971—Dec. 4447 40,754 6,648 23,603 5,170 5,333 1,058 ..............1972—May 47; 44,141 1,211 25,806 5,656 5,401 1,021 ; 43,634 7,507 24,766 5,777 5,584 1,072 .............................July 49 45,463 7,660 25,861 6,252 5,690 1,173 51 47,055 7,401 27,133 6,490 6,031 1,204 51 47,305 7,706 26,770 6,567 6,262 1,232 52 48,082 7,741 27,241 6,734 6,365 1,305 56 51,811 8,178 30,253 6,913 6,467 1,459 56 52,114 8,400 29,234 7,680 6,800 1,297 ..............1973—Jan. 60 55,815 8,783 32,024 7,809 7,200 1,609 ..............................Feb. 62 57,127 8,735 33,131 7,771 7,489 1,691 60 55,604 8,657 31,970 7,743 7,234 1,750 61 55,593 8,767 32,275 7,361 7,190 1,786 IN UNITED KINGDOM 28, 26,520 2,320 16,533 3,119 4,548 592 ...............1970—Dec. .. .Total, all currencies 34, 32,128 3,401 19,137 4,464 5,126 763 ...............1971—Dec. 36, 34,090 3,154 19,908 5,158 5,871 824 ..............1972—May 39, 37,102 3,160 22,144 5,542 6,256 903 39, 37,075 3,464 21,720 5,565 6,326 892 40, 38,165 3,423 22,236 6,007 6,499 933 42, 39,517 3,139 23,739 6,272 6,367 1,039 41, 39,225 3,060 23,001 6,309 6,854 959 41 j 39,149 2,928 22,769 6,340 7,112 969 43, 41,232 2,961 24,776 6,453 7,042 997 44, 41,933 3,277 23,959 7,285 7,412 913 .............. 1973—Jan. 48, 45,628 3,157 27,038 7,517 7,915 1,062 49, 46,750 3,164 28,119 7,388 8,078 1,088 49, 46,075 3,397 27,796 7,509 7,373 1,136 49, 45,792 3,614 27,168 7,324 7,685 1,260 23, 21,495 1,548 13,684 2,859 3,404 302 ...............1970—Dec. .Payable in U.S. dollars 24, 23,059 2,164 14,038 3,676 3,181 374 ...............1971—Dec. 25, 24,168 2,054 14,610 4,141 3,363 417 ..............1972—Mav 27, 26,017 2,070 15,874 4,560 3,513 462 27, 25,393 2,197 15,000 4,641 3,554 444 27, 25,887 2,140 15,217 4,981 3,549 467 28, 26,788 1,926 15,959 5,117 3,787 531 28, 26,759 1,942 15,597 5,216 4,004 473 28, 26,778 1,959 15,383 5,280 4,155 510 30, 29,121 2,008 17,478 5,349 4,287 536 30, 29,091 2,234 16,205 6,162 4,490 500 ..............1973—Jan. 33, 31,714 2,188 18,360 6,394 4,771 591 ..............................Feb. 33, 31,655 2,128 18,334 6,251 4,942 598 33, 30,782 2,318 17,672 6,245 4,546 533 32, 29,730 2,225 16,982 5,897 4,626 608 IN THE BAHAMAS 4, 4,183 488 2,872 823 90 ...............1970—Dec. .Total, all currencies 8, 7,557 1,649 4,784 1,124 188 ...............1971—Dec. 190,, 8 8 , , 1 9 4 4 1 2 1 1, , 8 4 0 5 9 4 5 5 , , 9 35 0 6 2 1 1 , , 2 3 3 3 1 0 1 1 4 3 4 6 1 1 0 1 , , 9,126 1,633 6,169 1,323 160 11, 10,238 1,885 6,898 1,455 156 12, 10,620 1,935 7,192 1,493 156 12, 10,793 1,928 7,415 1,450 171 11,230 1,982 7,862 1,386 166 13, 11,703 1,964 8,395 1,344 168 1 1 1 13 3 3, , , 1 1 2 1 , , 1 76 4 1 4 2 1 , , 2 87 23 5 8 8 , , 3 5 9 0 4 3 1 1 , , 5 3 2 8 7 3 2 1 3 6 0 7 ..............1973—Jan. 12,195 1,855 8,803 1,537 267 13, 12,138 1,977 8,505 1,656 389 U4, 12,938 2,195 9,259 1,483 345 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 s1 ili­ L s p i e l a u c 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 ia tu b r i i l t it y y of 1973 Apr. May June 1968 1972 1973 1.62 1.87 2.57 J S D M u e e a n p c e r t . . . 2 2 2 31 5 6 7 . . . . . . ( . . . 1 . . . . . . . . . / . . . 1 . . . . . . . . . / . . . 6 . . . . . . . . . 9 . . . . . . . . . ) 7 4 6 6 , , , , 9 1 2 0 2 0 0 3 2 9 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 6 3 7 9 8 2 4 Mar. 2 2 1 7 1 8 4 . . . . . . . . . . . . 1 1 1 1 , , , , 1 4 4 2 2 6 1 9 7 5 9 0 C Ot a m d i h n l a e l o . t r . e . n f . l . o : t i .. a h . l . l b s . o .. i . w l . i .. t . i i a . n e .. f . g s . t . e , . . . r m . c ... a . a . l . r t e . e . u . n . p r .. d i . o n . a .. r g . r t .. 3.37 3.25 3.04 May 31... 1,465 Apr. 4. . . 1,011 13.91 12.63 15.47 June 28... 1,443 11... 1,203 7.04 8.01 7.61 1969 18... 1,193 3rd....................................... 6.19 6.08 6.55 July 26. .. 1 ,345 25. .. 1,123 4th....................................... 3 44 3.60 3.96 J S D M u e e a n p c e r t . . . 2 2 2 3 5 6 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 9 3 2 4 , , , , 6 2 8 3 2 6 0 4 1 9 5 9 S A O N e u o c p g t v . t . . . 3 2 2 2 0 7 5 9 . . . . . . . . . . . . 2 1 1 1 , , , , 0 7 4 2 2 4 1 7 3 5 5 0 May 2 1 9 2 3 6 . . . . . . . . . . . . 1 1 1 1 , , , , 2 7 0 4 2 3 7 9 1 8 3 2 5 6 7 9 8 t t t t t h h h h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. . . . . 2 2 4 6 8 5 4 5 5 7 3 3. . . . . 5 5 8 4 7 5 3 5 7 7 3 3 . . . . . 0 6 9 5 8 8 7 6 2 4 Dec. 27... 1,406 30... 1,351 10th....................................... .71 .86 .54 11 th....................................... .86 .53 .36 1970 1973 June 1 6 3 . . . . . . 1,2 9 6 4 6 0 Mat 1 u 2 r t i h tie ... s ... . o ... f .. . m .... o .. r .. e ... . t . h ... a ... n ... . 1 ... .48 .35 .32 J M u a ne r. 2 24 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 , , 8 1 8 7 5 2 Jan. 1 3 0 . . . . . . 1 1 , , 1 6 2 2 1 5 2 2 0 7 . . . . . . 1 1, , 5 2 2 4 1 2 1.70 1.73 1.92 Sept. 30.................... 9,663 17... 1,419 July 3... 1,766 Dec. 30.................... 7,676 24... 1,800 11... 1,664 Total................................. 47.79 48.08 51 .27 31... 1,413 18... 2,146 1971 25... 2,086 Feb. 7... 1,391 Note.—Includes interest-bearing U.S. dollar J M u a ne r. 3 3 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 , , 8 4 5 9 8 2 4 4, , 3 5 5 0 8 0 2 1 1 4 . . . . . . 1,1 6 5 9 7 4 Aug. 8 1...... 2 2 , , 2 2 2 7 6 6 d th e e p o B s a it h s a a m n a d s d a ir n e d c t o b f o r a r l o l w o i t n h g e s r o fo f r a e l i l g b n r a b n r c a h n e c s h e in s Sept. 29................. 2,475 3,578 28... 790 15... 1,900 for which such deposits and direct borrowings Dec. 29................. 909 22... 2,440 amount to $50 million or more. 29... 2,793 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 .S c . 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 ve rm st ­ dom ments 1 ments 1 1970.................. 148 16,226 12,926 1971.................. 294 43,195 13,815 1968......................... 1,638 1,219 87 272 60 979 280 1972—Aug.. . 192 51,676 215,530 1969 2 / \ 1 1 , , 3 4 1 91 9 1,0 9 6 5 2 2 1 1 6 1 1 6 1 18 7 3 4 8 7 6 6 6 66 1 3 0 4 5 6 3 9 4 Sept... 193 50,997 15,531 1,141 697 150 173 121 372 443 Oct___ 192 51,821 15,531 D N e o c v . . . . . . 3 1 2 8 5 8 5 5 0 1 , , 9 8 3 7 4 4 1 15 5, , 5 5 3 3 0 0 1971__Dec.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 5 8 7 0 7 4 5 4 8 3 7 1973—Jan.... 310 50,118 15,526 1972—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 J A u u l g y. . . . . . 2 2 8 59 0 5 5 7 5 , ,8 0 5 5 5 4 1 1 5 5 , , 4 4 5 6 5 4 D ec. 2r... 1 f 2 1 , , 1 9 2 6 1 5 1 1 , , 4 6 4 7 6 0 1 4 6 6 9 3 3 3 0 8 7 4 68 2 7 7 0 8 2 0 4 5 8 06 5 1973—Jan. r____ 2,363 1,860 70 340 93 909 654 1 Marketable U.S. Treasury bills, certificates of in­ Feb.''. , . 2,865 2,132 136 373 225 980 1,036 debtedness, notes, and bonds and nonmarketable U.S. Mar.r____ 2,889 2,112 138 414 225 1,078 920 Treasury securities payable in dollars and in foreign Apr.r.... 2,882 2,114 115 414 238 1,027 840 currencies. May r.... 2,987 2,232 114 430 211 990 940 2 increase reflects principally change in par value of the June.......... 2,973 2,314 73 451 135 1,011 838 U.S. dollar in May 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

SEPTEMBER 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 June Sept. Dec. ir Mar.?3 June Sept. Dec. ir Mar.7’ Europe: Austria............................................. 6 2 2 2 2 16 15 20 19 14 Belgium-Luxembourg............. 108 82 75 81 80 64 63 62 63 101 Denmark........................................ 5 5 9 9 10 20 19 28 29 26 Finland............................................ 2 3 4 4 4 19 16 23 25 21 France............................................. 139 145 163 167 159 207 188 220 230 288 Germany, Fed. Rep. of.......... 104 130 144 154 145 191 200 176 194 242 Greece............................................. 5 14 24 24 28 36 30 39 35 36 Italy ................................................... 99 108 118 121 108 184 174 194 202 205 Netherlands................................... 65 79 102 110 102 66 71 78 83 96 Norway........................................... 5 5 9 14 14 17 19 17 16 17 Portugal........................................... 2 3 4 4 5 21 20 21 19 19 Spain................................................ 70 63 79 81 82 117 130 137 157 159 Sweden............................................. 13 14 12 12 22 37 45 56 57 45 Switzerland.................................... 97 119 122 105 126 59 57 79 82 86 Turkey.............................................. 3 2 3 4 3 11 8 47 47 23 United Kingdom....................... 981 943 949 989 836 990 992 1,043 1 ,068 1,370 Yugoslavia.................................... 6 5 7 7 16 10 11 12 12 14 Other Western Europe........... 2 2 2 2 2 10 11 14 12 8 3 9 3 3 9 22 47 42 41 41 Total....................................... 1,714 1,733 1,830 1,896 1,753 2,098 2,117 2,307 2,392 2,812 Canada................................................. 185 183 208 210 267 936 996 899 920 1,293 Latin America: Argentina....................................... 18 16 19 29 30 50 52 59 79 74 Brazil................................................ 22 24 35 35 42 153 163 175 169 172 Chile.................................................. 16 17 18 18 17 41 33 33 34 31 6 6 8 8 8 38 39 41 43 42 * 1 1 1 * 1 1 1 1 1 Mexico............................................. 18 21 27 27 34 143 154 180 183 197 Panama........................................... 6 5 8 8 8 22 20 19 67 74 Peru................................................... 6 5 5 5 5 32 36 40 39 36 Uruguay......................................... 3 2 6 7 5 5 7 4 5 5 17 17 17 21 23 75 74 89 92 106 Other L.A. republics............... 32 30 35 43 44 106 96 91 99 100 Bahamas 2..................................... 357 293 319 366 288 442 519 520 546 473 Neth. Antilles and Surinam. 6 9 10 10 10 10 11 12 13 12 Other Latin America............... 6 6 7 6 11 18 23 23 35 42 Total....................................... 514 453 514 584 527 1,134 1,226 1.289 1 ,404 1 ,365 Asia: China, People’s Republic of (China Mainland).......... 1 28 32 32 32 * 1 * * 1 China, Rep. of (Taiwan).... 25 26 28 27 28 45 51 67 66 61 Hong Kong................................... 11 12 12 12 12 23 22 24 32 31 India.................................................. 7 7 7 7 7 32 36 33 34 31 Indonesia........................................ 5 6 12 13 13 25 32 33 33 38 Israel................................................. 9 11 12 13 16 17 18 31 31 34 188 223 149 161 194 451 452 456 467 509 Korea................................................ 16 16 20 20 19 61 57 63 63 47 6 5 15 15 25 67 63 49 47 45 Thailand......................................... 4 5 5 5 5 15 14 15 22 25 103 112 117 152 157 174 171 201 205 190 Total....................................... 374 451 410 456 506 911 918 972 1 ,000 1,011 Africa: 1 1 25 32 37 6 7 7 16 24 South Africa................................. 37 17 7 8 6 46 45 53 52 56 1 2 1 1 12 7 7 5 8 16 31 37 59 61 69 74 64 75 79 79 71 57 92 103 124 133 122 140 156 175 Other countries: 54 46 47 46 53 97 92 94 83 81 11 11 13 13 11 18 18 20 24 25 66 57 60 59 64 116 110 114 108 106 International and regional. . .. ♦ * * * * 3 5 1 1 1 Grand total......................... 2,925 2,933 3,114 3,308 3,241 5,331 5,495 5,721 5,980 6,764 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. □ SEPTEMBER 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 1 foreign currencies End of period Payable Total P d a o y i l n l a a b r l s e cu fo rr r e i e n n ig c n ies Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w oa ith d in reporter’s 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 / 1,786 1,399 387 3,710 3,124 221 365 Dec.1........................ \ 2,124 1,654 471 4,159 3,532 244 383 1970—June........................... 2,387 1,843 543 4,457 3,868 234 355 2,512 1,956 557 4,361 3,756 301 305 Dec............................. 2,677 2,281 496 4,160 3,579 234 348 1971—Mar............................. 2,437 1,975 462 4,515 3,909 232 374 June............................ 2,375 1,937 438 4,708 4,057 303 348 Sept............................. 2,564 2,109 454 4,894 4.186 383 326 Dec.1........................ / \ 2 2 , , 7 7 6 0 3 4 2 2 , , 3 2 0 2 1 9 4 4 6 7 3 5 5 5 , , 0 18 0 5 4 4 4, , 5 4 3 6 5 7 2 31 9 8 0 2 3 4 3 7 3 1972—Mar............................. 2,844 2,407 437 5,177 4,557 318 302 June............................ 2,925 2,452 472 5,331 4,685 376 270 Sept............................. 2,933 2,435 498 5,495 4,833 432 230 Dec.1 r..................... / 1 3 3 , , 1 30 1 8 4 2 2 , . 6 8 2 1 9 7 4 49 8 1 4 5 5 , , 7 9 2 8 1 0 5 5 , . 0 3 8 1 4 0 4 3 0 8 0 2 2 2 3 8 8 8 1973—Mar."........................ 3,241 2.729 513 6,764 5,862 458 443 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 i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n ic r a 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 / 1 2 1 , , 3 72 0 5 4 2 2, , 2 3 1 6 5 3 1 15 5 2 2 4 4 3 4 3 2 4 56 9 2 6 1 1 7 77 2 7 73 7 4 3 2 88 0 1 1 4 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 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 Dec.1........................... \ 3,138 3,118 128 705 767 174 60 653 136 325 86 84 1972—Mar............................... 3,093 3.191 129 713 787 175 60 665 137 359 81 85 June.............................. 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept............................... 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 \ 3.839 3,553 179 767 937 183 62 708 133 394 80 1 1 1 1973—Mar.?)........................... 3,967 3,689 144 819 958 162 60 781 123 416 101 125 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

SEPTEMBER 1973 □ EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period A ( u d s o t l r la a r li ) a (s A c u h s il t li r n ia g) B (f e r l a g n iu c m ) C (d a o n l a la d r a ) C (ru e p y e lo e n ) D ( e k n ro m n a e r ) k (m Fin ar la k n ka d ) 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—Aug.......................................................................................... 119.11 4.3470 2.2795 101.789 15.611 14.438 24.020 19.986 119.10 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 22.341 141.58 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 Aug........................................................................................... 141.48 5.5917 2.7035 99.605 15.948 17.521 27.314 23.527 Period ( G D m e e r u a m t r s a k c n ) h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a ra ly ) J ( a y p e a n n ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la e il n d th d e ­ s r) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 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—Aug........................................................................................... 31.382 13.030 245.02 .17203 .33204 36.026 8.0000 31.158 Sept.......................................................................................... 31.318 13.016 244.10 .17199 .33209 36.110 8.0000 30.969 Oct............................................................................................ 31.184 12.806 239.48 .17145 .33221 36.063 8.0000 30.869 Nov.......................................................................................... 31.215 12.540 235.05 .17109 .33224 36.124 8.0000 30.964 Dec........................................................................................... 31.262 12.467 234.48 .17146 .33196 35.531 8.0000 30.962 1973—Jan............................................................................................ 31.288 12.494 235.62 .17079 .33136 35.523 8.0000 31.084 Feb............................................................................................ 33.273 12.910 242.75 .17421 .36041 37.679 8.0000 33.119 Mar.......................................................................................... 35.548 13.260 247.24 .17604 .38190 39.922 8.0000 34.334 Apr........................................................................................... 35.252 13.255 248.37 .16971 .37666 40.307 8.0000 33.890 May.......................................................................................... 35.841 13.340 253.05 .17100 .37786 40.333 8.0000 34.488 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 Aug........................................................................................... 41.219 13.220 247.57 .17423 .37704 43.859 8.0000 37.596 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 ra f o r n u ic d th a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S fr r w l a a n i n tz c d ­ ) ( U p K d o n i o n u it m n e g d d ­ ) 1968........................................................................................................ 111 .37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969........................................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972......................................................................................................... 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—Aug........................................................................................... 119.45 15.335 3.7211 125.28 1.5752 21.160 26.449 245.02 Sept.......................................................................................... 119.33 15.209 3.7221 125.26 1.5754 21.146 26.403 244.10 Oct........................................................................................... 119.21 15.141 3.7080 124.47 1.5750 21.078 26.332 239.48 Nov.......................................................................................... 119.45 15.144 3.7140 127.52 1.5753 21.076 26.346 235.05 Dec........................................................................................... 119.53 15.187 3.7248 127.57 1.5753 21.080 26.526 234.48 1973—Jan............................................................................................ 119.52 15.128 3.7280 127.55 1.5755 21.092 26.820 235.62 Feb............................................................................................ 126.87 16.038 3.8562 134.91 1.6355 21.935 29.326 242.75 Mar.......................................................................................... 132.21 16.954 4.1005 141.43 1.7183 22.582 31.084 247.24 Apr........................................................................................... 132.99 16.428 3.9563 141.70 1.7217 22.161 30.821 248.37 May.......................................................................................... 132.34 17.196 4.0050 141.65 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 Aug........................................................................................... 135.33 18.145 4.3243 148.52 1.7553 24.070 33.656 247.57 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 a SEPTEMBER 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Aug. 31, 1972 Rate Country 1972 1973 as of Aug. 31, Per Month 1973 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. A Ar u g s e tr n ia tin ... a ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 8 . . 0 0 J F a e n b . . 1 1 9 97 7 0 2 5.5 6.0 168..00 Belgium........................................... 4.0 Mar. 1972 4.5 5.0 5.50 6.0 6.5 6.5 Brazil................................................ 18.0 Feb. 1972 18.0 Canada............................................ 4.75 Oct. 1971 5.25 5.75 6.25 6.75 6.75 Ceylon............................................. 6.5 Jan. 1970 6.5 Chile.................................................. 7.0 Jan. 1972 7.0 C C h o i l n o a m , b R ia e . p .. . .. .. o ... f . .. ( . T .... a ... i . w .... a ... n ... ) . . .. . . . . .. . . 98..205 M M a a y y 1 1 9 9 6 7 3 1 10.5 180..50 Costa Rica..................................... 5.0 June 1966 5.0 D Ec e u n a m d a o r r k ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 . .0 0 J J a u n n . e 1 1 9 9 7 7 0 2 7.0 8.0 8 8 . . 0 0 Egypt............................................... 5.0 May 1962 5.0 El Salvador................................... 4.0 Aug. 1964 4.0 Ethiopia........................................... 6.50 Aug. 1970 6.50 Finland............................................ 7.75 Jan. 1972 9.25 9.25 France.............................................. 5.75 Apr. 1972 7.5 8.50 9.5 9.5 G G e h r a m n a a n .. y ... , . .. F ... e ... d .. . .. .. R ... e ... p .. . .. .. o ... f .. . .. . .. . .. . .. . . 38..00 J F u e l b y . 1 1 9 9 7 7 1 2 3.5 4.5 5.0 6.0 7.0 78..00 Greece.............................................. 6.5 Sept. 1969 6.5 Honduras........................................ 4.0 Feb. 1966 4.0 Iceland............................................. 56..205 Jan. 1966 5.25 I In n d d o ia n . e ... s .. i .. a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.0 J M a a n. y 1 1 9 9 7 6 1 9 7.0 76..00 Iran.................................................... 7.0 Oct. 1969 7.0 Ireland............................................. 6.19 Aug. 1972 7.19 7.44 7.44 Italy................................................... 46..00 Apr. 1972 4.0 Jamaica........................................... June 1972 7.0 7.0 Japan................................................ 4.25 June 1972 5.0 5.5 6.0 7.0 7.0 Korea............................................... 13.0 Jan. 1972 13.0 Mexico............................................. 4.5 June 1942 4.5 Morocco......................................... 3.50 Nov. 1951 3.50 N N e ew th e Z r e la a n la d n s. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46..00 M Ma a r r . . 1 1 9 9 7 72 2 3.0 4.0 5.0 6.0 6.5 66..50 Nigeria............................................. 4.50 June 1968 4.50 P N a o k r i w st a a y n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 . . 5 0 S M e a p y t. 1 19 96 7 9 2 8.0 48..50 Peru................................................... 190..50 Nov. 1959 190..50 Philippine Republic.................. June 1969 Portugal.......................................... 3.75 Feb. 1971 4.0 S 5 4.0 6.0 South Africa................................. Aug. 1972 65..05 Spain................................................ 5.0 Oct. 1971 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 58..00 T U u n r it k e e d y . K .... i . n ... g ... d ... o ... m ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96..00 S Ju e n p e t. 1 1 9 9 7 7 0 2 7.50 9.0 8.75 8 8. . 5 0 7.75 7.50 11.50 t 11.50 Venezuela....................................... 5.0 Oct. 1970 5.0 Vietnam........................................... 18.0 Sept. 1970 18.0 1 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, 4l/z 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

SEPTEMBER 1973 □ OPEN MARKET RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom Germany, Netherlands Switzer­ Fed. Rep. of land Month 3 T m r b e o i a l n l s s t u , h ry s1 D m a o d y n a - y e to y - 2 3 m P b b o r a i i l m n l n s t k , e hs3 3 T r m b ea o ill s n s u t , h ry s D m a d o y a n - y e to y - C d b r l e a e a p t a n e o r k s i s n s 4 it ’ g m Da o d y n a - e y to y5 - T 6 d r b e 0 a i a l - y l s 9 s s u 0 , 6 ry D m a o d y n a - e y to y7 - 3 T r m e b a i o ll s n s u t , h ry s D m a d o y a n - y e to y - d P is r r c i a v o t a e u te nt 6.10 197 1 3.62 3.76 6.41 55..5072 4.93 3.84 5.84 4.54 4.34 3.76 5.24 197 2 3.55 3.65 6.06 4.83 3.84 3.04 4.30 2.15 1.97 4.81 1972—Aug. 3.47 3.54 6.71 5.79 5.13 5.25 3.76 2.75 4.48 1..1710 .60 4.75 Sept. 3.57 3.52 7.18 6.44 5.27 5.25 3.89 2.75 4.83 .54 4.75 Oct.. 3.57 3.64 7.34 66..8784 5.47 5.25 5.16 3.25 6.07 1.95 2.61 4.75 Nov. 3.61 3.71 7.28 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 M Ap a r r . . 4 4 . . 2 7 8 3 c 4 4 . . 2 5 1 3 9 8 . . 7 6 6 4 7 8 . . 8 1 7 6 7 7. . 5 2 2 0 7 7. . 2 5 5 0 7 7 . .4 4 9 6 5 5. . 7 7 5 5 1 1 1 4 . . 3 8 7 4 11..5232 . . 6 7 1 7 5 5 . . 0 0 0 0 May 5.08c 4.67 8.35 7.45 86..2696 7.11 7.71 75..0750 7.40 3.88 5.00 June 5.40c 5.00 8.14 7.12 6.55 10.90 3.59 4.28 5.00 July. 5.65 c 5.28 9.06 8.35 5.89 6.25 15.78 5.58 5.65 5.00 Aug. 6.47 5.87 12.78 10.98 9.70 8.99 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers’ acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers’ allowance on Note.—For description and back data, see “International Finance,’ deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Net (+) or Net Date q K ( u U i a n o U n d g t . i j a d S t . e t o . t i d o o m n U S n ta it te e s d L S ( o f p n a o r d v e f o o ad r n) d f ( ( o p is + - r o c w ) ) u o a n u o o r d n n r d t i L n ( o c fa n e o n v d f o t o iv r n e ) qu A o in s ted Cana q da A uo U d t j . a . S t . t io o n U S n ta it t e es d C S ( a f p a n o r v a e f o a d d r a) C d f ( d o a is - o r n c w ) l a l o a a d o u r i r a n s n d n t i C n ( c a f e a n o n v a f t o d iv r a e ) basis) Canada basis 1973 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 Aug. 3.................. 10.63 8.18 2.45 -2.97 -.52 5.82 5.66 8.18 -2.52 2.64 .12 10.................. 10.76 8.76 2.00 -4.60 -2.60 5.99 5.82 8.76 -2.94 2.88 -.06 17.................. 10.78 8.47 2.31 -4.55 -2.24 6.05 5.82 8.47 -2.65 2.69 .04 24.................. 10.83 8.45 2.38 -4.88 -2.50 6.12 5.95 8.45 -2.50 2.64 .14 31.................. 10.82 8.53 2.29 -4.45 -2.16 8.38 6.00 8.53 -2.53 2.58 .05 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, Digitized for FRASER Oct. 1964 Bulletin. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 GOLD RESERVES □ SEPTEMBER 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 io o d f m to a t t a ed l M ta o r n y e­ U S n ta i t t e e s d r m es a t t e o d f geria A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world i Fund world 1965. 243,230 31,869 13,806 27,285 6 66 223 700 1,558 84 1,151 44 1966. 43,185 2,652 13,235 27,300 6 84 224 701 1,525 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 84 863 46 1969. 41,015 2,310 11,859 26,845 205 135 263 715 1,520 84 872 47 1 1 9 9 7 7 1 0 . . 4 4 1 1 , , 2 1 7 7 5 5 4 4 , , 7 3 3 39 2 1 1 1 0 , , 0 2 7 0 2 6 2 2 5 6 , . 8 2 6 3 5 5 1 19 9 1 2 1 9 4 0 0 2 2 5 3 9 9 7 72 1 9 4 1 1 , , 4 5 7 44 0 2632 7 7 9 9 1 2 4 4 7 7 1972—July.. 5,761 10,490 208 130 285 793 1,682 16 834 Aug.. 5,765 10,488 208 130 283 792 1,672 16 834 Sept.. 44,875 5.777 10.487 28,610 208 152 283 792 1,648 16 834 Oct.. 5.777 10.487 208 152 282 792 1,636 16 834 N D o e v c . . . . 44^925 5 5 . .7 8 7 3 8 0 1 1 0 0 . . 4 4 8 8 7 7 28,6io 2 2 0 0 8 8 1 1 5 5 2 2 2 28 8 1 2 7 7 9 9 2 2 1 1 , , 6 6 3 4 8 2 1126 8 8 3 3 4 4 12 1973—Jan... 5.830 10.487 208 152 281 793 1,621 834 Feb... 5.830 10.487 208 152 281 793 1,603 834 Mar.. 44,900 5.830 10.487 28,585 208 152 282 793 1.603 834 Apr.. , 5.830 10.487 208 152 281 793 1,603 834 May.. 5.826 10.487 *28^555' 208 152 281 793 1,603 834 June. . * *44 ,’875' 5.831 10.487 208 281 793 1,603 834 July*’. 5.826 10.487 208 281 793 1,603 834 I 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 De a n rk ­ Egypt l F an in d ­ m F a e n d y . , Greece \ India Iran Iraq l I a r n e d ­ (Taiwan) Rep. of 196 5 55 35 97 139 4,706 4,410 17280 281 146 110 21 56 196 6 62 26 108 93 5,238 4,292 243 130 106 23 46 196 7 81 31 107 93 5,234 4,228 130 243 144 115 25 46 196 8 81 31 114 93 3,877 4,539 140 243 158 193 79 46 196 9 82 26 89 93 3,547 4,079 130 243 158 193 39 46 197 0 82 17 64 85 3,532 3,980 117 243 131 144 16 43 197 1 14 64 85 3,523 4,077 98 243 131 144 16 43 1972—July.. 87 16 69 92 3.826 4.437 132 264 142 156 17 47 Aug.. 87 16 69 92 3.826 4.437 132 264 142 156 17 47 Sept., 87 16 69 92 3.826 4.436 132 264 142 156 17 43 Oct.., 87 16 69 92 3.826 4.436 132 264 142 156 17 42 Nov.. 87 16 69 92 3.826 4.436 132 264 142 156 17 44 Dec.. 87 16 69 92 3.826 4,459 133 264 142 156 17 43 1973—Jan.. 87 16 69 92 3.834 4.468 133 264 142 156 17 41 Feb.. 87 16 69 92 3.834 4.468 133 264 142 156 17 41 Mar. 87 1166 6699 9922 33..883344 44..446688 113333 226644 114422 115566 1177 41 Apr.. 87 92 41 May. 87 16 69 3.834 4.469 133 142 156 17 41 June. 87 16 69 3,841 4,462 133 142 156 17 41 July'' 87 16 69 3.835 4.469 142 156 17 E pe n r d i o o d f Italy Japan Kuwait a L n e o b n ­ Libya Ma si l a ay­ M c e o xi­ Mo c r o oc­ N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ 1965................................. 2,404 328 52 182 68 2 158 21 1,756 31 53 67 38 1966................................. 2,414 329 67 193 68 1 109 21 1,730 18 53 65 44 1967................................. 2,400 338 136 193 68 31 166 21 1,711 18 53 20 60 1968................................. 2,923 356 122 288 85 66 165 21 1,697 24 54 20 62 1969................................. 2,956 413 86 288 85 63 169 21 1,720 25 54 25 45 1970................................. 2,887 532 86 288 85 48 176 21 1,787 23 54 40 56 1971.................................. 2,884 679 87 322 85 58 184 21 1,909 33 55 40 67 1972—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 63 188 23 2,059 37 60 41 50 May................... 3,134 802 350 93 63 23 2,059 37 60 41 50 June.................. 3,134 802 350 93 2,063 37 60 41 40 July*................. 3,134 802 93 2’,063 37 40 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 nd ri o o d f Po g r a t l u­ A S r a a u b d ia i A So fr u ic th 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 a g vi o a ­ S I e f n o t t t r l le . ­ 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—July......................... 1,004 129 543 541 217 3,158 89 122 816 169 425 56 276 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 M ar....................... 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 ............ 1,022 131 721 542 220 3,162 89 136 425 56 199 1,022 131 724 220 3,162 89 136 425 56 205 JulyP.................... 131 734 220 3.162 89 136 425 56 204 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table, and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa North and South America Asia Other World Period produc­ tion 1 A S f o r u ic th a Ghana Zaire U S n ta it te 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 1971j>................................... 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 4.0 32.2 23.0 28.7 1972-—June...................... 94.3 21.0 6.2 .6 .7 .3 2.5 2.4 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 2.3 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 '2.4 Feb . 86.5 6.1 .5 1.8 Mar 88.5 6.3 .5 Apr .................... 86.6 6.2 86.0 6.8 June 87.6 6.4 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 BOARD OF GOVERNORS 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 Robert C. Holland J. Charles Partee, Adviser to the Board * Robert Solomon, Adviser to the Board Robert L. Cardon, Assistant to the Board Joseph R. 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 Lyle E. 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 Murray S. Wernick, Adviser Brenton C. Leavitt, Program Director for Kenneth B. Williams, 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 Eleanor J. Stockwell, Assistant Adviser Chester B. Feldberg, Secretary Stephen P. Taylor, Assistant Adviser Theodore E. Allison, Assistant Secretary Louis Weiner, Assistant Adviser Murray Altmann, Assistant Secretary Levon H. Garabedian, Assistant Director NormandR. V. Bernard, Assistant Secretary Arthur L. Broida, Assistant Secretary Elizabeth L. Carmichael, Assistant DIVISION OF INTERNATIONAL FINANCE Secretary Ralph C. Bryant, Director John E. Reynolds, Associate Director Robert F. Gemmill, Adviser Reed J. Irvine, Adviser LEGAL DIVISION Samuel I. Katz, Adviser Thomas O’Connell, General Counsel Bernard Norwood, Adviser Pauline B. Heller, Assistant General Counsel John Nicoll, Assistant General Counsel Samuel Pizer, Adviser Robert S. Plotkin, Assistant General Counsel George B. Henry, Associate Adviser Baldwin B. Tuttle, Assistant General Counsel Helen B. Junz, Associate Adviser Andrew F. Oehmann, Special Assistant to the Norman S. Fieleke, Assistant Adviser General Counsel DIVISION OF SUPERVISION AND REGULATION Frederic Solomon, Director DIVISION OF FEDERAL RESERVE BANK Brenton C. Leavitt, Deputy Director OPERATIONS Frederick R. Dahl, Assistant Director RonaldG. Burke, Director JackM. Egertson, Assistant Director E. Maurice McWhirter, Associate Director Janet O. Hart, Assistant Director Walter A. Althausen, Assistant Director John N. Lyon, Assistant Director Donald G. Barnes, Assistant Director John T. McClintock, Assistant Director Harry A. Guinter, Assistant Director Thomas A. Sidman, Assistant Director James R. Kudlinski, Assistant Director William W. Wiles, Assistant Director P. D. Ring, Assistant Director Griffith L. Garwood, Adviser Charles L. Marinaccio, Adviser On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 97 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. Min ami, Assistant Director John D. Smith, Assistant Director RichardS. Watt, Assistant Director OFFICE OF THE CONTROLLER John Kakalec, Controller John M. Denkler, Assistant Controller Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 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 Leonall 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 99 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. Mathews Carl H. Moore San Francisco....... 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi John B. 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 100 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 each. THE FEDERAL RESERVE SYSTEM. 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 101 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 (Limited supply of mimeographed copies of full address, $.85 each. 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 Parts 1 and 2) are available upon request THE REGULATION OF SHORT-TERM CAPITAL for single copies.) MOVEMENTS IN MAJOR COUNTRIES, by Rodney 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, Davis, Andersen, Kareken et al., Pierce, Fried­ CHARACTERISTICS, by James L. Kichline, P. Michael Laub, and Guy V. G. Stevens. May man, and Poole). 1971. 218 pp. $2.00 a copy; 1973. 30 pp. 10 or more sent to one address, $1.75 each. THE DETERMINANTS OF A DIRECT INVESTMENT REAPPRAISAL OF THE FEDERAL RESERVE DIS­ OUTFLOW WITH EMPHASIS ON THE SUPPLY OF COUNT MECHANISM, Vol. 1 (papers by Steering FUNDS, by Frederic Brill Ruckdeschel. June Committee, Shull, Anderson, and Garvy). 1971. 1973. 171 pp. 276 pp. Vol. 2 (papers by Boulding, Chandler, Jones, Ormsby, Modigliani, Alperstein, Meli- 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 Stackhouse, Meek, Holland and Garvy, and 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 102 FEDERAL RESERVE BULLETIN □ SEPTEMBER 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. 11 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE BONDS. ASSETS AND LIABILITIES OF FOREIGN BRANCHES Aug. 1967. 16 pp. OF U.S. BANKS. Feb. 1972. 16 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN WAYS TO MODERATE FLUCTUATIONS IN THE CON­ 1960-67. Apr. 1968. 23 pp. STRUCTION OF HOUSING. Mar. 1972. 11 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. 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 103 DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. TREASURY AND FEDERAL RESERVE FOREIGN EX­ Apr. 1973. 13 pp. CHANGE OPERATIONS, INTERIM REPORT. July 1973. 2 pp. STATE AND LOCAL BORROWING ANTICIPATIONS AND REALIZATIONS. Apr. 1973. 4 pp. BANKING AND MONETARY STATISTICS, 1972. Se­ lected series of banking and monetary statistics YIELDS ON RECENTLY OFFERED CORPORATE for 1972 only. Mar., and July 1973. 20 pp. BONDS. May 1973. 2 pp. FEDERAL FISCAL POLICY, 1965-72. June 1973. FINANCIAL DEVELOPMENTS IN THE SECOND 20 pp. QUARTER OF 1973. Aug. 1973. 11 pp. SOME PROBLEMS OF CENTRAL BANKING. June CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ 1973. 3 pp. DUSTRIES. Aug. 1973. 3 pp. OPEN MARKET OPERATIONS IN 1972. June 1973. TREASURY AND FEDERAL RESERVE FOREIGN EX­ 12 pp. CHANGE OPERATIONS. Sept. 1973. 19 pp. CHANGES IN TIME AND SAVINGS DEPOSITS AT CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­ COMMERCIAL BANKS, JANUARY-APRIL 1973. July MERCIAL BANKS. Sept. 1973. 8 pp. 1973. 8 pp. CHANGES IN BANK LENDING PRACTICES, 1972. July RATES ON CONSUMER INSTALMENT LOANS. Sept. 1973. 5 pp. 1973. 5 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo s i ” A“ xiferp eht hguohtla 59-A hguorht 4-A segap o t era secnerefeR( A 104 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1973 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 31, 33 Demand deposits—Continued Agricultural loans of commercial banks, 22, 24 Ownership by individuals, partnerships, and Arbitrage, 93 corporations, 30 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 17 Banks, by classes, 18, 22, 23, 24, 37 Turnover, 14 Federal Reserve Banks, 12 Deposits (See also specific types of deposits): Nonfinancial corporations, current, 48 Accumulated at commercial banks for payment of Automobiles: personal loans, 30 Consumer instalment credit, 54, 55, 56 Banks, by classes, 18, 23, 27, 37 Production index, 58, 59 Euro-dollars, 88 Federal Reserve Banks, 12, 13, 88 Bank credit proxy, 17 Postal savings, 23 Subject to reserve requirements, 17 Bankers’ balances, 23, 26 (See also Foreigners, claims on, and liabilities to) Discount rates (See Interest rates) Banks for cooperatives, 38 Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 48 Bonds (See also U.S. Govt, securities): Dollar assets, foreign, 75, 81 New issues, 45, 46, 47 Yields and prices, 34, 35 Branch banks: Earnings and hours, manufacturing industries, 65 Employment, 62, 64, 65 Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Euro-dollar deposits in foreign branches of U.S. banks, 88 Brokerage balances, 85 Farm mortgage loans, 49, 50 Business expenditures on new plant and equipment, 48 Business indexes, 62 Federal agency obligations, 11, 12, 13, 14 Federal finance: Business loans (See Commercial and industrial loans) Receipts and outlays, 40, 41 Treasury operating balance, 40 Capacity utilization, 62 Federal funds, 7, 22, 24, 28, 33 Capital accounts: Federal home loan banks, 38, 39, 51 Banks, by classes, 18, 23, 28 Federal Home Loan Mortgage Corporation, 53 Federal Reserve Banks, 12, 13 Federal Housing Administration, 49, 50, 51, 52, 53 Central banks, 92, 94 Federal intermediate credit banks, 38, 39 Certificates of deposit, 28 Federal land banks, 38, 39 Coins, circulation, 15 Federal National Mortgage Assn., 38, 39, 52 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 17, 22, 31 Condition statement, 12 Weekly reporting banks, 24, 29 U.S. Govt, securities held, 4, 12, 14, 42, 43 Commercial banks: Federal Reserve credit, 4, 6, 12, 14 Assets and liabilities, 17, 18, 22, 23, 24 Federal Reserve notes, 12, 13, 15 Consumer loans held, by type, 55 Federally sponsored credit agencies, 38, 39 Deposits at, for payment of personal loans, 30 Finance companies: Loans sold outright, 31 Loans, 24, 54, 55, 57 Number, by classes, 18 Paper, 31, 33 Real estate mortgages held, by type, 50 Financial institutions, loans to, 22, 24 Commercial paper, 31, 33 Float, 4 Condition statements (See Assets and liabilities) Flow of funds: Construction, 62, 63 Financial assets and liabilities, 71.14 Consumer credit: Saving and financial flows, 70 Instalment credit, 54, 55, 56, 57 Foreign: Noninstalment credit, by holder, 55 Currency operations, 11, 12, 13, 75, 81 Consumer price indexes, 62, 66 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Consumption expenditures, 68, 69 Exchange rates, 91 Corporations: Trade, 73 Profits, taxes, and dividends, 48 Foreigners: Security issues, 46, 47 Claims on, 82, 83, 88, 89, 90 Security yields and prices, 34, 35 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Cost of living (See Consumer price indexes) Currency and coin, 5, 9, 23 Gold: Currency in circulation, 5, 15, 16 Certificates, 12, 13, 15 Customer credit, stock market, 36 Earmarked, 88 Net purchases by United States, 74 Debits to deposit accounts, 14 Production, 95 Debt (See specific types of debt or securities) Reserves of central banks and govts., 94 Demand deposits: Stock, 4, 75 Adjusted, commercial banks, 14, 17, 23 Government National Mortgage Assn., 52 Banks, by classes, 18, 23, 27 Gross national product, 68, 69 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 105 Hours and earnings, manufacturing industries, 65 Production, 58-61, 62 Housing permits, 62 Profits, corporate, 48 Housing starts, 63 Real estate loans: Income, national and personal, 68, 69 Banks, by classes, 22, 25, 37, 50 Industrial production index, 58-61, 62 Delinquency rates on home mortgages, 53 Instalment loans, 54, 55, 56, 57 Mortgage yields, 35, 51, 52, 53 Insurance companies, 37, 42, 43, 50, 51 Type of holder and property mortgaged, 49-53 Insured commercial banks, 20, 22, 30 Reserve position, basic, member banks, 7 Interbank deposits, 18, 23 Reserve requirements, member banks, 9 Interest rates: Reserves: Business loans by banks, 32 Central banks and govts., 94 Federal Reserve Banks, 8 Commercial banks, 23, 26, 28 Foreign countries, 92, 93 Federal Reserve Banks, 12, 13 Money market rates, 33 Member banks, 5, 6, 17, 23 Mortgage yields, 51, 52, 53 U.S. reserve assets, 75 Prime rate, commercial banks, 32 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Time and savings deposits, maximum rates, 10 Retail credit, 54 Yields, bond and stock, 34 Retail sales, 62 International capital transactions of U.S., 76-90 International institutions, 74, 75, 92, 94 Saving: Inventories, 68 Flow of funds series, 70 Investment companies, issues and assets, 47 National income series, 68 Investments (See also specific types of investments): Savings and loan assns., 38, 43, 51 Banks, by classes, 18, 22, 25, 26, 37 Savings deposits (See Time deposits) Commercial banks, 17 Savings institutions, principal assets, 37, 38 Federal Reserve Banks, 12, 14 Securities (See also U.S. Govt, securities): Life insurance companies, 37 Federally sponsored agencies, 38, 39 Savings and loan assns., 38 International transactions, 84, 85 New issues, 45, 46, 47 Silver coin, 15 Labor force, 64 Special Drawing Rights, 4, 12, 13, 72, 75 Life insurance companies (See Insurance companies) State and local govts.: Loans (See also specific types of loans): Deposits, 23, 27 Banks, by classes, 18, 22, 24, 37 Floldings of U.S. Govt, securities, 42, 43 Commercial banks, 17, 18, 22, 24, 29, 31, 32 New security issues, 45, 46 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Ownership of securities of, 22, 26, 37 Insurance companies, 37, 50, 51 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Yields and prices of securities, 34, 35 State member banks, 20, 30 Savings and loan assns., 38, 51 Stock market credit, 36 Stocks: Manufacturers: New issues, 46, 47 Capacity utilization, 62 Yields and prices, 34, 35 Production index, 59, 62 Margin requirements, 10 Tax receipts, Federal, 41 Member banks: Time deposits, 10, 17, 18, 23, 27 Assets and liabilities, by classes, 18, 22 Treasury cash, Treasury currency, 4, 5, 15 Borrowings at Federal Reserve Banks, 6, 12 Treasury deposits, 5, 12, 13, 40 Number, by classes, 18 Treasury operating balance, 40 Reserve position, basic, 7 Reserve requirements, 9 Unemployment, 64 Reserves and related items, 4, 6, 17 U.S. balance of payments, 72 Mining, production index, 59, 61 U.S. Govt, balances: Mobile home shipments, 63 Commercial bank holdings, 23, 27 Money market rates (See Interest rates) Member bank holdings, 17 Money stock and related data, 16 Treasury deposits at Reserve Banks, 5, 12, 13, 40 Mortgages (See Real estate loans and Residential mortgage U.S. Govt, securities: loans) Bank holdings, 18, 22, 25, 37, 42, 43 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 44 Mutual savings banks, 27, 37, 42, 43, 50 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 Foreign and international holdings, 12, 81, 84, 88 National banks, 20, 30 International transactions, 81, 84 National defense expenditures, 41, 68 New issues, gross proceeds, 46 National income, 68, 69 Open market transactions, 11 Nonmember banks, 20, 22, 23, 30 Outstanding, by type of security, 42, 43, 45 Ownership, 42, 43 Open market transactions, 11 Yields and prices, 34, 35 United States notes, 15 Payrolls, manufacturing index, 62 Utilities, production index, 59, 61 Personal income, 69 Postal savings, 23 Veterans Administration, 49, 50, 51, 52, 53 Prices: Consumer and wholesale commodity, 62, 66 Weekly reporting banks, 24 Security, 35 Prime rate, commercial banks, 32 Yields (See Interest rates) )xedni siht n i dettimo s i ” A“ xiferp eht hguohtla 59-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] C hicago j Omafia* XjncimtaM *-y c*ive% Kansas City^ 'CfuirCottif V2 Oklahoma. CiUj «7^°A^anta Dallas Jiouston >an Antonio* Miami ■Drawn byH.W. QaCvin, Cart A (P THE FEDERAL RESERVE SYSTEM g) a HAWAII Legend Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ • Federal Reserve Bank Facilities Federal Reserve Bank of St. Louis