Federal Reserve Bulletin, 1973-10

Federal Reserve Bulletin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) COVER. Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In reproducing the photograph, the blue color is printed as a "line conversion" without tones and the brown is overprinted in a light-value, continuous-tone halftone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 10 • VOLUME 59 • OCTOBER 1973 713 Balance of Payments Adjustment Since 1971 724 Changes in Time and Savings Deposits at Commercial Banks, April-July 1973 731 New Series for Large Manufacturing Corporations 734 Statement to Congress 739 Record of Policy Actions of the Federal Open Market Committee 746 Law Department 777 Announcements 778 Industrial Production Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 72 International Statistics A 96 Board of Governors and Staff A 98 Open Market Committee and Staff; Federal Advisory Council A 99 Federal Reserve Banks and Branches A 100 Federal Reserve Board Publications A 103 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Joseph R. Coyne Robert Solomon Ralph C. Bryant Kenneth B. Williams Lyle E. Gramley Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Balance of Payments Adjustment Since 1971 It has become increasingly evident in recent months that the basic accounts of the U.S. balance of payments have been improving markedly since the bad years of 1971 and 1972. The basic balance—the balance on current account and long-term capital—had deteriorated sharply in the first half of 1971. After the changes UNITED STATES: BASIC BALANCE in exchange rates that year, which culminated in the Smithsonian ANNUAL RATES, BILLIONS OF DOLLARS • 0 realignment in December 1971, inflows of long-term capital recovered strongly in 1972. However, the current account continued to worsen until about the middle of 1972; the trade deficit reached a peak in the fourth quarter. Since early this year, both the 1 M B| 553I long-term capital account and the current account have shown mmin favorable changes. The inflow of foreign capital for direct invest- •19•70 •• ment purposes and particularly for purchases of U.S. securities has continued to grow. And a very sharp rise in the value of exports Seasonally adjusted data. SOURCE: U.S. Dept. of Commerce. began early this year. Much of the improvement in exports—and in the balance of exports and imports—must be attributed to the sharp, worldwide rise since late last year in prices of agricultural commodities, of which the United States is a major supplier. Some further part of the improvement is due to the marked cyclical strengthening of demand in other industrial countries that occurred during 1972, an upturn which—except in Canada—lagged considerably behind that in the United States. Finally, some of the improvement in the U.S. trade balance reflects the reactions of producers and consumers here and abroad to the Smithsonian realignment and to subsequent further changes in exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN • OCTOBER 1973 The 10 per cent devaluation of the U.S. dollar in February 1973, coupled with the further market appreciation of important European currencies against the dollar at that time and again in the late spring and early summer, has contributed appreciably to the rise in U.S. dollar prices of internationally traded foodstuffs and materials. This rise in prices currently is helping to raise the dollar value of U.S. exports more than that of imports. Longer-run effects of this year's exchange-rate changes upon the relative competitive positions of producers of finished manufactures here and abroad will undoubtedly take some further time to work themselves out fully. This article examines some of the recent changes in the balance of payments positions of other countries—to find the counterpart of the economic adjustments that have improved the U.S. position. Attention is directed mainly to elements of the basic accounts. OVER-ALL Analysis of balance of payments positions in the period under PAYMENTS POSITIONS review is unusually difficult because the exchange rates for many currencies are floating. If all rates were floating perfectly freely, payments positions would be fully reflected in changes in exchange rates. Since, in fact, there has been considerable official intervention in the exchange markets, the over-all payments positions—comprising the basic position plus flows of short-term capital—are reflected in changes in both reserves and exchange rates. What the change in reserves would have been in a particular country TABLE 1 CHANGES IN TOTAL OFFICIAL RESERVES AND IN AVERAGE EXCHANGE RATES Reserve changes in billions of SDR's; exchange rate changes in per cent 1972 1973 CCuummuullaattiivvee Jan.-June July-Dec. Jan. -Aug. CCCooouuunnntttrrryyy Exchange Exchange Exchange Exchange Reserves rates Reserves rates Reserves rates Reserves rates Germany 3.8 .4 .8 .6 7.8 22.0 12.4 23.2 Belgium .3 .7 0 1.2 .7 7.7 1.0 9.7 France .9 5.1 .6 0 .6 8.5 2.1 14.0 Netherlands .5 -.3 .4 .4 .2 9.9 1.1 10.0 Japan .3 3.2 2.3 2.0 -2.8 2.4 -.2 7.8 United Kingdom .8 -1.3 -2.0 -8.2 .6 -5.7 -.6 -14.6 Italy -.4 0 -.3 1.5 0 -9.1 -.7 -7.7 Canada .4 -.9 -.2 -.3 — .4 -10.9 -.2 -12.8 United States -3.6 -3.6 -6.5 1.9 -7.8 -13.0 -17.9 -14.5 NOTE.—The official reserves data for all countries except arising from the devaluation of the U.S. dollar in February. the United States are for changes in SDR (Special Drawing For the United States, the SDR equivalent value of official Rights) equivalent value of total gross official reserves as reserve transactions, excluding SDR allocations, is used. published by the International Monetary Fund, including gold, The average exchange-rate changes are based on offer rates SDR's, reserve positions in the IMF, and official foreign in New York, weighted by the shares of each country in the exchange holdings, but excluding the SDR allocation of Jan- total 1972 trade of the Group of Ten countries plus Switzerland; uary 1972; published reserve changes in January-August 1973 changes are expressed as a percentage of the daily exchange are increased by 9.21 per cent of the end-February dollar value rates in the last month of the previous period. of foreign exchange reserves to offset changes in SDR valuation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS ADJUSTMENT 715 if its exchange rate had been held constant—or, conversely, what the exchange rate would have been if there had been no intervention—cannot be ascertained. For example, as shown in Table 1, the fact that Germany's official reserves have increased by almost SDR 8 billion during the first 8 months of this year, while the exchange rate for the German mark has appreciated 22 per cent relative to other major currencies, implies that Germany has a stronger balance of payments position than either of those two indicators would have suggested by itself. Moreover, these indicators do not tell us what part, if any, short-term capital flows are playing. Similarly, the combination of changes in reserves and in exchange rates suggests that the over-all payments positions of Belgium, France, and the Netherlands have all remained very strong this year, though not so strong as that of Germany. In contrast, in Italy, Canada, and the United States the exchange rate has depreciated and official reserves have declined since the beginning of the year, indicating weak over-all payments positions. However, for the United States, the position has improved recently with the exchange rate stabilizing and net reserves increasing. Reserves and exchange rates give ambiguous evidence on the payments positions of Japan and the United Kingdom. The yen has appreciated further, but Japan's reserves have fallen sharply. In the United Kingdom, reserves have increased, but there has been a significant further depreciation of the sterling exchange rate. To get a better view of underlying trends and adjustments, individual elements of the basic balances should be examined. Short-term capital flows, which are generally excluded from the basic balance, reflect primarily exchange-rate expectations and changes in relative monetary conditions; in contrast, underlying movements in most elements of the basic balance—though certainly not all elements—are influenced primarily by changes in relative costs. BASIC BALANCE Trends in the basic balances of some major industrial countries DEVELOPMENTS are shown in Table 2. France, Italy, the United Kingdom, and Japan have experienced pronounced changes from surplus toward deficit in their basic balances since the first half of 1971, while the basic balance surpluses of Germany, Belgium, and the Netherlands have persisted or increased. The basic surplus of Canada remained large last year, but has turned to deficit this year. These developments are the net resultant of a variety of factors. In part they reflect the first stages of the economic adjustments promoted by the exchange-rate realignments that have occurred since May 1971. But the developments have also reflected essentially short-run factors, some global in scale and in impact, but others peculiar to individual countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN • OCTOBER 1973 Perhaps the most important of the short-run factors for the United States and other industrial countries has been the upswing in aggregate domestic demand in Europe and Japan. The cyclical upswing had begun earlier in the United States and Canada than it had in the rest of the industrial world. Whereas by the spring of 1973 the boom in the United States and Canada was beginning to slow, the upswing gathered strength in Europe and Japan only in the second half of 1972. Thus, through most of 1972 relative TABLE 2 BASIC BALANCES OF MAJOR INDUSTRIAL COUNTRIES In billions of SDR's; at annual rates 1971 1972 1973 Country Jan.-June July-Dec. Jan.-June July-Dec. Jan.-June France1 0 1.0 -.4 -.3 -1.0 Italy2 1.1 .4 -1.1 -1.5 -2.8 United Kingdom3 6.5 7.4 -3.3 0 .5 Japan 3.4 6.1 1.2 2.7 -7.4 Germany 2.0 2.5 5.7 2.4 2.5 Belgium .5 .4 .2 .5 4.7 Netherlands -.1 .7 .3 .5 .4 Canada 1.1 .5 .6 1.4 -.3 United States5 -8.8 -10.4 -10.4 -7.8 -3.0 1 Basic balance of metropolitan France with the rest of the world including franc-zone countries. 2Balance on nonmonetary transactions, that is, including identified short-term capital flows other than Italian banks' and also errors and omissions. 3 Balance on current account and identified investment and other capital transactions (including "capital transfers"), that is, including identified short-term capital flows and changes in foreign countries' exchange reserves held in sterling. 4First quarter only. 5U.S. data are seasonally adjusted. NOTE.—Data are converted from local currencies into SDR's on a quarterly basis, using average dollar exchange rates provided by the IMF. For this purpose: $1 = SDR 1.0 in 1971; $1 = SDR 0.921053 in 1972; $1 = SDR 0.875 in the first quarter of 1973; and $1 = SDR 0.828948 in the second quarter of 1973. Data are from IMF, Organization for Economic Cooperation and Development, and national sources. cyclical conditions tended to increase the U.S. deficit and West European surpluses and to delay the shrinkage in Japan's surplus; in contrast, cyclical conditions in 1973 are tending to have the opposite effects. Generally strong demand in the industrial countries also increased their combined trade deficit with the nonindustrial countries in 1972; demand for products of the latter group of countries was strong, while the nonindustrial countries' own demand for imports was relatively low because of low earnings in 1971. This year exports from the industrial countries have been increasing sharply, as demand in the nonindustrial countries has responded to previous rises in export earnings; but imports from the nonindustrial countries increased even more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS ADJUSTMENT 717 As a result of the worldwide strength of demand coupled with EXPORT PRICES RATIO SCALE, 1970=100 supply problems for certain commodities and some stockpiling in anticipation of future price rises, there has been a striking upsurge in the prices of internationally traded goods. This upsurge, which is apparent especially in the prices of food and raw materials, has played an important part in improving the payments balances not only of some of the less developed countries but also of the United States. These price rises have caused the terms of trade—that is, the ratio of export unit values to import unit values—to move differently for different countries. The terms of trade of countries that export foodstuffs and raw materials have tended to improve. On the other hand, the terms of trade of countries that import a Data are expressed in U.S. dollars. large volume of food or raw materials have tended to deteriorate; Price indexes for basic commodities; unit value index for manufactured the United Kingdom is a prime example. goods. SOURCE: United Nations. Two other general factors should be mentioned. One, affecting mainly the industrial countries, is the terms-of-trade effect that tends to follow a change in exchange rates. That is, the local-currency prices of a devaluing country's imports tend to rise with the currency depreciation. This occurs before the volume of imports falls and causes a transitory increase in the value of imports. Meanwhile the local-currency prices of exports of finished manufactures may be slower to rise. Correspondingly, the local-currency prices of a revaluing country's imports tend to fall more quickly than the volume of its imports rises. The other factor is the expectation of future changes in exchange rates. The speculative flows that are induced by such expectations show up not only in the form of short-term capital flows, but also in virtually every component of the balance of payments, as buyers and sellers of goods and services and of financial assets adjust the timing of their transactions. It is not possible to quantify the effects of this time-shifting on the basic accounts, but the effects in 1971, 1972, and 1973 have surely been substantial. Much of the recent variation in payments experience may be JAPAN: BASIC BALANCE AND SOME MAJOR COMPONENTS of limited long-run significance, in view of the sharp rises in ANNUAL RATES, BILLIONS OF DOLLARS agricultural prices, the transitory influences of exchange-rate TRADE BALANCE changes, and the effects of expectations of rate changes. Nevertheless, evidence of the far-reaching economic adjustments that BASIC BALANCE exchange-rate changes were intended to promote is beginning to emerge. This is apparent particularly in Japan and in the United LONG-TERM CAPITAL Kingdom. TT Japan. Japan's basic balance decreased from a surplus of $0.7 billion in the first half of 1972 to a deficit of $4.2 billion in the first half of this year. This reflected a large and increasing net outflow of long-term capital, and even more significantly, a sharp '71 '72 73 '71 '72 '73 '71 '72 '73 drop in the trade surplus. DATA ARE FOR FIRST HALF OF YEAR ONLY. From mid-1971 to early this year, the Japanese trade surplus SOURCE: Bank of Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN • OCTOBER 1973 fluctuated around an annual rate of about $9 billion, but the surplus fell to an annual rate of only $3% billion (seasonally adjusted) in the period March through August. This decline has resulted primarily from changes in the volume of trade measured in constant prices. Compared with an average annual rate of increase of 18 per cent from 1963 to 1971, the volume of exports rose only 7 per cent in 1972, and in the first 6 months of 1973 was about 9 per cent higher than a year earlier. A substantial part of the slowdown may be attributable to a loss of competitiveness in some markets following the revaluations of the yen. For example, Japanese exports to the United States have risen only slowly in dollar value terms this year, and in yen terms and in volume terms they may have actually fallen. On the other hand, Japanese exports to Western Europe—against whose currencies the Japanese yen appreciated relatively little—have expanded very fast. This shift in the geographic pattern of trade represents, to some extent, a response to the changes in relative profit opportunities implied by the exchange-rate realignment; but it may also reflect a conscious effort by Japanese exporters to limit market penetration in the jaran United States, as they complied with the expressed desire of the IMPORTS AND INDUSTRIAL PRODUCTION RATIO SCALE, 1965= 160 Japanese Government to reduce exports to this country. A further and temporary element in the leveling of U.S. imports from Japan 140 may be a rundown of inventories of Japanese goods in this country that had been built up at the end of 1972. i2o The volume of imports has risen rapidly in recent months, but the total increase has been no greater than in previous upswings, apparently suggesting that Japan's recent import performance re- 100 fleets mainly cyclical forces. However, because about three-quarters 140 of Japan's imports consist of foodstuffs and industrial materials, the sharp increase in imports of manufactured goods has been 120 obscured. The rise in the volume of imports of manufactured goods—which were about one-third higher in the first 4 months 100 of this year than in the same period last year—suggests that the _ appreciation of the yen, coupled with trade liberalization, is begin- SOURCE: Bank of Japan. HING to have some effect. Japan's deficit on services and transfers remained unchanged at about $1.5 billion in the first half of both 1972 and 1973, as increases in income on investments—associated with rising interest rates—offset higher payments for travel and shipping. With the sharp drop in the trade surplus, the current-account surplus was reduced from $2.2 billion in the first half of 1972 to only $200 million in the first half of 1973. Net long-term capital outflows increased rapidly in the first half of this year, to $4.4 billion from $1.5 billion and $3.0 billion, respectively, in the first and second halves of 1972; some of the outflows were in response to official encouragement, and some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS ADJUSTMENT 719 reflected the unwinding of speculative positions, but the appreciation of the yen had an impact of a more enduring nature as well. United Kingdom. The other country whose statistics give some evidence of important economic adjustments is the United Kingdom, where exchange-rate policy has been directed toward improving the current-account balance. On the surface, the United Kingdom's current-account position has deteriorated since 1971. A large part of this deterioration has been associated, however, with the strong growth of the British economy and the sensitivity UNITED KINGDOM: TERMS OF TRADE IJo of imports to growth in that country. The deterioration also reflects a sharp worsening of the terms 130 of trade. In the period June-August 1973 import unit values 120 averaged 23 per cent higher than in the second half of 1972, whereas export unit values averaged only 10 per cent higher. In 110 volume terms, imports were up 11 per cent in that period, but exports were up 16 per cent. 100 The fact that the volume of exports has recently been growing 90 so rapidly, in spite of the economic boom in the United Kingdom, — and the fact that export orders are high, suggests that there has unit values are expressed in sterling. b een some impact from the downward float of sterling since SOURCE: U.K. Central Statistical r ° Office. mid-1972. The British surplus on services and transfers has remained fairly steady at an annual rate of about 700 million pounds, although net British contributions to the budget of the European Communities (EC) have reduced the surplus slightly. With the sharp deterioration in the trade account, the current account has moved from a small surplus in 1972 to a deficit of more than 700 million pounds, or about $1.7 billion, in the first three quarters of this year. The current-account deficit was more than offset in the first half of 1973 by net inflows on investment and other capital accounts totaling nearly 700 million pounds, most of it in the second quarter. Overseas investment in the United Kingdom, including investment connected with North Sea oil and gas, was particularly strong. Foreign borrowing by the U.K. public sector, amounting to $847 million in the first half of this year (and an additional $919 million AND MAJOR COMPONENTS feliLiflHS gp mm MARKS from July to September), has constituted another major part of the total capital inflow. Germany. In contrast to Japan and the United Kingdom, there is relatively little evidence that over-all adjustment has taken place in Germany. The major development in the German balance of payments picture this year has been the unexpectedly huge surplus SERVICES & TRANSFERS 2 on the merchandise trade account—more than offsetting the in- 4 creasing deficit on services and transfers. The current-account f • •HI V 6 surplus for the first 8 months of 1973 was 2.8 billion marks (or 1970 1971 1972 '73 over $1 billion) compared with a deficit of 1.9 billion marks in Seasonally adjusted data. SOURCE: German Federal Bank. the same period last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN • OCTOBER 1973 With exports rising 20 per cent in German mark value and with imports rising only 14 per cent, the German trade surplus in the first 8 months of this year was 19.0 billion marks, compared with 11.4 billion marks in the same period last year. The absence of severe capacity constraints in Germany may be one reason why the exchange-rate realignments have thus far failed to have the desired impact on German trade. Despite very rapid growth in real output in the latter part of 1972 and early this year, capacity utilization rates are below the peak levels reached in the previous cycle, suggesting that German exporters can continue to exploit such nonprice advantages as speedy deliveries and, by the same token, that German consumers and producers have not had to rely on foreign sources of supply. Speculative buying of German goods, in expectation of further mark revaluations, seems to have boosted German export sales and orders late last year and early this year. Moreover, the sharp increase in Germany's trade surplus with the Sino-Soviet countries accounted for almost one-fifth of the total increase in Germany's trade surplus—a development essentially unrelated to market forces. And it must also be recognized that the effective revaluation of the mark in some of Germany's European export markets has been quite small; although the incentive is still provided for consumers and producers in these markets to switch to lower-priced goods from devaluing countries, the absence of significant price changes for German goods may have GERMANY: SERVICES AND TRANSFERS ^ i M H S L T! increased the time-lag before the switch actually occurs. The deficit on services and transfers has been expanding very rapidly since the revaluation of the mark in 1969, and the trend appears to be continuing this year—though the increment to the deficit may be somewhat smaller than it was last year. The enormous rise in the deficit on services and transfers is in large part 20 attributable to rapid increases in German travel expenditures abroad and in remittances of foreign workers. From 1968 to 1972 the deficit on services and transfers combined climbed 11.5 billion mTofIL ™dailadTustmentefo; marks to 19.0 billion marks; of that increase, the net travel account remittances in 1973 was made by deficit rose 5.5 billion marks, while foreign workers' remittances F.R. staff. SOURCE: German Federal Bank. increased 4.5 billion marks. There have been net inflows of long-term capital to Germany this year, except for a largely seasonal outflow in January. In the first 6 months of this year, despite the existence of capital controls, the net inflow was 1.9 billion marks, of which more than 700 million marks came in June. This year's inflow, which is probably overstated in the sense that some part of those flows classified as long-term capital were surely speculative, is considerably smaller than the extraordinary inflow of almost 11 billion marks in the first half of 1972. In March of that year, German authorities introduced a deposit requirement on borrowing by residents from nonresidents, diverting capital inflows into heavy purchases of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS ADJUSTMENT 721 German long-term fixed-interest securities. Such purchases were greatly reduced after controls on such transactions were imposed at the end of June 1972. Canada. Canada's basic balance has turned from surplus in recent years to a small deficit in the first half of 1973, as net long-term capital inflows this year are running at only half last year's rate. However, the reduction in the long-term capital inflow reflects primarily transactions in securities, which have tended to fluctuate considerably. In contrast to the long-term capital account, the current account has improved this year. The deficit for the first half of 1973 was Canadian $500 million at a seasonally adjusted annual rate, down from Canadian $680 million in 1972. A higher deficit on services and transfers was more than offset by an increase in the surplus on merchandise trade. The increasing trade surplus in 1973 reflects steeply rising prices for primary commodities exported by Canada, as well as increasingly favorable cyclical factors. The rapid expansion of Canadian demand that began early in 1971, before foreign demand for Canadian exports had gained strength, caused the trade surplus to decline following the record surplus in 1970; but the strong demand this year in foreign countries has tended to improve the Canadian trade position. However, rapid increases in private investment expenditures in Canada have continued to push up imports. The appreciation of the Canadian dollar in 1970 seems to have had the effect of reducing the Canadian trade balance; however, subsequent appreciations of major foreign currencies other than the U.S. dollar are working to offset this effect. Other industrial countries. In the EC countries, other than in the United Kingdom, only in Italy and France has the basic balance moved from a surplus in 1971 to a sizable deficit. The Italian deficit would have been still larger in the absence of large-scale "compensatory" borrowing by the state-controlled institutions, undertaken to offset official reserve losses. For Italy the deterioration reflects primarily an increased trade deficit. Exports and imports have both been seriously affected throughout this period by strikes. In 1973, imports have soared because of the revival of economic activity and speculative purchases in anticipation of a depreciation of the lira. Recorded foreign exchange receipts from tourism and workers' remittances through domestic banking channels have been depressed, because the inconvertibility of illegally exported Italian banknotes since June 1972 has led to a discount market for banknotes outside the country. Accordingly, statistics for the current account do not pick up the improvement that has probably taken place in these categories. In France, the trade surplus has remained very strong, even though some industries—notably the aerospace industry—may be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN • OCTOBER 1973 suffering from the devaluation of the dollar, but the deficit on services and transfers has increased markedly since 1971. The surplus on tourism, which had been increasing up to 1971, has since leveled off and may have fallen this year. Net receipts from dividends and interest have been falling since 1970. The deficit on net transfers has increased sharply since 1970, reflecting in large part higher workers' remittances. A small surplus on long-term capital account in 1971 has been replaced by sizable and increasing net outflows beginning in 1972. The basic balances of Belgium and the Netherlands have changed relatively little since 1971 and have remained strong, in part because the United States—against whose currency these countries revalued theirs the most—is not a major trading partner. The strength of the basic balance—and especially of the current account—of the Netherlands enabled the Dutch Government to revalue the guilder by a further 5 per cent in September. This revaluation was an attempt to mitigate some of the upward price pressures in that country, which have been exacerbated by the successive revaluations of the German mark. Nonindustrial countries. The upsurge of commodity prices and of demand in industrial countries for the products of nonindustrial countries has greatly improved the trade position of the latter from the cyclical low of 1971. In 1972 the trade balance of the OECD countries with the less developed countries deteriorated by $2.75 billion and in 1973 so far by a further $2 billion (annual rate). It is virtually impossible to disentangle the effects of the exchangerate changes on the export proceeds of the less developed countries from those of the worldwide cyclical upswing. There is no doubt, however, that some of the increase in commodity prices is related to the exchange-rate realignment. A rough estimate might attribute about one-fourth of the rise since 1971 in commodity prices—expressed in dollars—to changes in exchange rates and three-fourths to the cyclical upswing and unusual supply conditions. Because of the very large increase in commodity prices, the terms of trade for a majority of the primary producing countries have swung in their favor despite the high inflation rates in industrial countries and the effective devaluation of the currencies of most of the nonindustrial countries. But the growing upswing in demand in the less developed countries has begun to cut into the improvement of their trade balances. Indeed, a significant part of the improvement in the U.S. trade balance since 1972 is with these countries. On the other hand, the trade balance of the European countries as a group with the less developed areas has continued to deteriorate, suggesting that cyclical factors combined with the exchange-rate changes have given the United States some competitive advantage in the nonindustrial world. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS ADJUSTMENT 723 SUMMARY AND i summary, what can be said about the extent to which exchangen CONCLUSIONS rate changes have been promoting fundamental shifts in the pattern of international payments in other countries as a counterpart to such shifts in the U.S. balance of payments? On trade account, significant shifts have occurred in the United Kingdom and in Japan. The United Kingdom has wanted to improve its current account and has allowed the pound to float downward relative to most major currencies. The volume of U.K. exports has been rising quite rapidly, while the volume of imports seems to be rising less than the pressure of demand in the United Kingdom would have otherwise implied. Japan, on the other hand, revalued its currency upward in order to promote a reduction in its export surplus. There has evidently been both a slowdown in the rate of increase of total Japanese exports in volume terms and a switch in the geographic pattern of Japanese exports from the United States to Western Europe. Imports of manufactured goods into Japan also seem to be responding recently to the change in relative costs. In Germany, where the currency appreciation has been greatest, there is relatively little evidence of basic adjustment. Statistics on services and transfers are less complete, but there are some indications of a response to the exchange-rate changes at least on the part of tourists. The number of foreign visitors to the United States has increased markedly this year, but shifts in the travel accounts of other countries are difficult to ascertain. On long-term capital account a very large increase in outflows from Japan has been recorded. Equally significant for the long-run future are the reports from several countries that considerable amounts of direct investment are being planned in the now relatively low-cost devaluing countries. If allowance is made for adjustment lags, the emerging evidence supports the view that adjustment is indeed taking place. This should become increasingly clear over time, so long as future economic developments do not undo the changes in relative costs resulting from the changes in exchange rates that have taken place over the past 2V2 years. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits at Commercial Banks April-July 1973 According to the July 31, 1973, survey of time July, 65 to 85 per cent of all insured banks—the and savings deposits (STSD),1 a large number percentage varied with the particular deposit of commercial banks increased the interest rates category—had adjusted their rates upward to the paid on time and savings deposits soon after new ceilings (Table 1). In addition, a significant the Board of Governors and the Federal Deposit number of banks indicated that they expected Insurance Corporation (FDIC) raised ceiling to raise rates on consumer-type deposits subserates on these deposits effective July 1. Prior quent to the survey date—mainly to the new to the change in regulatory ceilings, a substan- ceilings (Table 2). tial majority of banks had been paying the old Average offering rates on large-denomination ceiling rates on all categories of savings and time deposits increased more than 2 percentage consumer-type time deposits. By the end of points between April and July, as banks bid competitively for additional funds in markets where short-term interest rates were rising NOTE.—Martha Strayhorn Scanlon of the Board's sharply. Until mid-May, offering rates on CD's Division of Research and Statistics prepared this article. with maturities of 90 days and over had been 1 Previous surveys of time and savings deposits at all member banks were conducted by the Board of Gover- constrained by Regulation Q ceilings; but folnors in late 1965, in early 1966, and quarterly beginning lowing suspension of these ceilings in May, in 1967. Beginning in 1968 the surveys expanded to rates on these longer-term CD's quickly adprovide figures for all insured commercial banks and were conducted jointly by the Board of Governors and justed upward in line with other market rates. the Federal Deposit Insurance Corporation. The results The structure of deposit flows at banks during of earlier surveys have appeared in BULLETINS for 1966-73, the most recent being July 1973, pp. 493-500. the 3 months ending July 31 reflected continued TABLE 1 REGULATION Q CEILING CHANGES AND PERCENTAGE OF ISSUING BANKS PAYING NEW CEILING RATES ON SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS By bank size as of July 31, 1973 Regulation Q Percentage of issuing banks at new Q ceilings 1 ceilings MMMaaatttuuurrriiitttyyy With total deposits of: OOlldd NNeeww TToottaall Less than $100-$500 $500 million $100 million million or more Savings 4.5 5.0 64.1 64.2 64.5 54.7 Time deposits in denominations of less than $100,000 maturing in: Less than 1 year 5.0 5.5 66.2 65.9 72.3 69.3 1 to 2 Yi years (2) 6.0 66.0 65.6 74.5 73.5 2l/i to 4 years (2) 6.5 85.8 86.0 85.9 80.1 1 See Table 3 for number of issuing banks. 2 5.5 per cent for deposits of 1 to 2 years and 5.75 per cent for deposits of 2 years or more. MEMO.—A significant number of banks in the STSD sample expected to make rate changes to the new Q ceilings effective after the survey date. Their responses are summarized in Table 2 and are not included here. 724 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE 2 SAMPLE BANKS REPORTING CHANGES IN INTEREST RATES OFFERED ON VARIOUS CLASSES OF TIME AND SAVINGS DEPOSITS, IPC, TO BE EFFECTIVE AFTER THE SURVEY DATE, JULY 31, 1973 Number of banks in sample that reported changes Rates to be increased to Q ceiling 44 yyeeaarrss oorr oovveerr ddeennoommiinnaattiioonnss ooff $$11,,000000 ttoo $$110000,,000000 FFFeeedddeeerrraaalll RRReeessseeerrrvvveee NNNooo... ooofff Denomination less than $100,000 dddiiissstttrrriiicccttt bbbaaannnkkksss rrreee--ssspppooonnndddiiinnnggg SSaavviinnggss Less than 1 to 2Vt 2 Vi to 4 New Increased Decreased 1 year years years offering rates rates Member banks: Boston 12 5 7 7 3 3 New York 47 23 25 22 16 5 6 1 Philadelphia 24 6 10 13 6 8 Cleveland 27 12 7 11 7 7 Richmond 17 14 7 8 6 3 3 Atlanta 32 2 18 16 14 6 1 Chicago 53 20 23 27 17 8 1 St. Louis 12 6 5 5 3 3 Minneapolis 21 12 14 14 6 3 1 Kansas City 7 5 4 3 2 1 1 Dallas 11 2 5 7 2 1 San Francisco... 21 4 11 11 9 5 3 Member total 284 111 136 144 91 53 6 11 Nonmember total.. 124 81 92 99 78 15 1 Total reporting 408 192 228 243 169 68 6 12 pressure from high yields on competing money year on which banks were allowed to pay higher market instruments as well as the impact of the rates. adjustments in the regulatory rate ceilings. On Even after ceilings were raised on savings and balance, total time and savings deposits of indi- small-denomination time deposits, these rates viduals, partnerships, and corporations (IPC) remained below those that savers could earn on expanded at a slightly slower pace than in the Treasury bills and other market securities. January-April period, although faster than in the However, a new consumer deposit category was same period a year earlier. More than 80 per created when the Board of Governors and the cent of the most recent growth was in negotiable FDIC suspended ceiling rates on deposits of and nonnegotiable certificates of deposit (CD's) $1,000 or more with a maturity of 4 years or in denominations of $100,000 or more, as in- more. Banks quickly began to issue these new vestors found the high rates the banks were 4-year deposits at advertised rates that varied offering on these instruments relatively attrac- from 6.5 to 9 per cent, with most banks offering tive. between 7 and 7.5 per cent. As a result, a In contrast, passbook savings accounts ex- sizable volume of deposits was attracted into panded at the slowest rate since the fourth the new 4-year accounts; some of these inflows quarter of 1970—a period of restrictive mone- no doubt reflected shifts out of savings deposits tary policy in which banks and other financial and other short-term time deposits. More deinstitutions experienced substantial outflows of tailed information on the 4-year deposits will these deposits. Small-denomination time depos- be given later. its also grew at a slow pace between April and July. Deposits subject to the lowest ceiling rates CHANGES IN RATE CEILINGS (that is, with maturities of less than a year) Subsequent to the April 30 survey, the Federal actually experienced large outflows, but these Reserve and the FDIC made two major changes outflows were offset by somewhat larger inflows in rate ceilings that affected not only the rate into accounts with maturities of greater than a structure but also the deposit flows at insured 725 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN • OCTOBER 1973 banks. The first change occurred on May 16 maturity ranges for small-denomination deposits when the agencies suspended all ceiling limita- and to obtain information on the 4-year deposits tions on rates that banks may pay on time not subject to ceiling restriction. Consequently, deposits in denominations of $100,000 or the maturity categories reported in the July more.2 Ceiling rates that had been in effect prior STSD do not conform strictly to those of preto the change had placed constraints on rates vious surveys. that banks could pay on large-denomination time deposits; ceilings on negotiable CD's with CONSUMER-TYPE TIME AND maturities of 30 to 89 days had been suspended SAVINGS ACCOUNTS in June 1970. Following the July increase in the ceiling rate The second change, effective July 1, into 5 per cent, approximately 60 per cent of all creased the ceiling rates that insured commercial insured commercial banks raised their passbook banks may pay on passbook savings deposits savings rate to this level as of July 31 (Table and on small-denomination time deposits; ceil- 3). However, a sizable number of banks— ings were suspended entirely on deposits in including many of the large ones—continued to denominations of more than $1,000 but less than pay a lower rate, apparently hoping to keep $100,000 with maturities of 4 years or more. In down interest costs on savings deposits, which subsequent rulings, banks were required to limit often account for a large proportion of a bank's issuance of such long-maturity instruments to total deposits and which generally are held by an amount not exceeding 5 per cent of their total less interest-sensitive depositors than other time time and savings deposits. In coordinated acdeposits. Less than 50 per cent of the savings tions, the FDIC and the Federal Home Loan deposits at large banks (those with total deposits Bank Board—which have regulatory authority of $100 million and over) were yielding deposiover rates paid by mutual savings banks and tors the maximum rate on July 31, in comparisavings and loan associations, respecson with almost 70 per cent at smaller banks tively—announced similar changes in ceiling (total deposits of less than $100 million). During rates payable by these institutions. The new the April-July period, large banks experienced maximum permissible rates for insured coma small net outflow of savings deposits, while mercial banks, together with the earlier ceilings, small banks showed a slight increase. are shown on page A-10 of this BULLETIN; Accompanying the moderation in savings de- Table 1 contains a summary of these rate posit growth, there was a large decline in changes. small-denomination time deposits with maturi- As a result of these regulatory changes, the ties of less than 1 year. Although close to 70 STSD was modified to conform to the new per cent of the issuing banks were paying the new ceiling rate of 5.5 per cent on these depos- 2 At the same time for member banks a supplementary its, savers still found this rate low relative to reserve requirement of 3 per cent was placed on the those on longer-maturity time deposits and amount by which the sum of time deposits in denomimarket securities. The sharper decline in 1-year nations of $100,000 or more, finance bills, and funds channeled from bank affiliates exceeded the sum of these deposits was at large banks, whose depositors liabilities in the week ended May 16 (or $10 million, generally are relatively sensitive to competitive whichever is greater). [On September 20, the supplerates on other market securities. mentary requirement was raised to 6 per cent.] NOTE TO TABLE 3: NOTE.—The most common interest rate for each instrument refers While rate ranges of Va or Vi of a percentage point are shown in to the basic stated rate per annum (before compounding) in effect on this and other tables, the most common rate reported by most banks the survey date that was generating the largest dollar volume of de- was the top rate in the range; for example, 4.00, 4.50, etc. Some posit inflows. If the posted rates were unchanged during the 30-day deposit categories exclude a small amount of deposits outstanding in period just preceding the survey date, the rate reported as the most a relatively few banks that no longer issue these types of deposits and common rate was the rate in effect on the largest dollar volume of are not included in the number of issuing banks. deposit inflows during the 30-day period. If the rate changed during Figures may not add to totals because of rounding. that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 727 TABLE 3 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON APRIL 30 AND JULY 31,1973, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over July Apr. July Apr. July Apr. July Apr. July Apr. July Apr. 31 30 31 30 31 30 31 30 31 30 30 31 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits: Issuing banks 13,554 13,508 12,833 12,788 772222 772200 123,034 122,936 48,443 47,789 74,592 75,147 Percentage distribution by most common rate paid on new deposits: Total 100 100 100 100 100 100 100 100 100 100 100 100 3.50 or less 3.5 3.9 3.6 4.0 1.8 2.4 1.3 1.5 1.5 1.6 1.2 1.4 3.51-4.00 11.1 16.8 11.1 16.9 11.9 14.3 9.8 12.9 7.5 12.4 11.2 13.2 4.01-4.50 21.1 79.3 21.0 79.1 23.8 83.3 32.6 85.6 22.9 86.0 39.0 85.4 4 51-5.00 6644..22 6644..33 6622..55 5566..33 6688..11 4488..66 Time deposits in denominations of less than $100,000: Maturities less than 1 year: 13,170 13,044 12,446 12,316 723 728 43,154 46,633 21,067 21,984 22,088 24,649 Percentage distribution by most common rate paid on new deposits : Total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less .7 3.1 .8 3.1 .4 2.1 .2 2.0 .1 1.1 .2 2.9 4.51 5.00 32.2 96.9 32.5 96.9 26.7 97.9 27.4 98.0 27.9 98.9 26.9 97.1 5 01-5.50 6677..11 6666..77 7733..00 7722..44 7722..00 7722..99 Maturities of 1 up to 2Vi years: Issuing banks 13,152 n.a. 12,437 n.a. 715 n.a. 49,068 n.a. 32,493 n.a. 16,574 n.a. Percentage distribution by most common rate paid on new deposits : Total 100 n.a. 100 n.a. 100 n.a. 110000 n.a. 100 n.a. 100 n.a. 4 4 . . 5 5 0 1 - o 5 r . 0 l 0 e ss O 2 ) . 0 n n . . a a . . O) 2 .0 n n . . a a . . 0) .7 n n. . a a . . (1> .8o n n . . a a . . 0) 1.1 n n . . a a . . 0) .3 n n . . a a . . 5.01-5.50 17.7 n.a. 18.0 n.a. 12.5 n.a. 11.1 n.a. 12.8 n.a. 7.6 n.a. 5.51-6.00 8800..44 8800..00 8866..77 8888..11 8866..11 9922..11 Maturities of 2Vi years to 4 years: Issuing banks 8,180 n.a. 7,552 n.a. 628 n.a. 9,425 n.a. 4,912 n.a. 4,512 n.a. Percentage distribution by most common rate paid on new deposits : Total 100 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 5.00 or less .4 n.a. .3 n.a. 1.3 n.a. .2 n.a. 0) n.a. .4 n.a. 5.01-5.50 .6 n.a. .6 A4L .6 n.a. .5 H.8L .7 n.a. .3 n.a. 5.51-6.00 13.2 n.a. 13.1 n.a. 13.4 n.a. 29.9 n.a. 34.8 n.a. 24.5 n.a. 6.01-6.50 8855..88 8855..99 8844..66 6699..44 6644..55 7744..77 Maturities of 4 years and over (minimum denomination of $1,000): Issuing banks 5,299 n.a. 4,740 n.a. 559 n.a. 3,259 n.a. 1,340 n.a. 1,919 n.a. Percentage distribution by most common rate paid on new deposits: Total 100 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 100 n.a. 5.50 or less .6 n.a. .5 n.a. 1.1 n.a. .6 n.a. 1.0 n.a. .3 n.a. 5.51-6.00 2.0 n.a. 1.8 n.a. 3.6 n.a. 4.0 n.a. •i n.a. 6.5 n.a. 6.01-6.75 3.5 3.2 6.3 4.1 7.5 1.7 6.76-7.00 56.1 56.8 50.4 38.7 39.4 38.3 7.01-7.50 32.3 32.1 34.0 43.1 39.9 45.3 7.51-8.00 5.1 5.3 3.6 6.4 10.9 3.3 8.01-8.50 .3 «« .2 11..11 2.8 .3 44..66 8.51 or more 00)) .2 ..44 i Less than .05 per cent, n.a. Not available. For NOTE, see p. 726. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN • OCTOBER 1973 TABLE 4 SMALL-DENOMINATION TIME DEPOSITS WITH ORIGINAL MATURITY OF 4 YEARS OR MORE WITH MINIMUM DEPOSITS OF $1,000: FREQUENCY DISTRIBUTION OF INTEREST RATES BEING PAID, AND AMOUNT OUTSTANDING All insured commercial banks by size as of July 31, 1973 Amounts in millions of dollars, not seasonally adjusted Total deposits (in millions of dollars) of banks Total Less than 100 100-500 500 or more RRaattee ccllaassss ((ppeerr cceenntt)) No. of Amount No. of Amount No. of Amount No. of Amount banks banks banks banks Total banks 13,889 3,272 13,165 1,340 546 754 178 1,177 Banks not issuing* 8,590 13 8,425 126 39 13 5,299 3,259 4,740 1,340 420 754 139 1,164 31 20 25 13 4 3 2 3 5.51 to 6.00 105 132 85 8 14 68 6 56 6.01 to 6.50 106 122 77 9,263 21 26 8 4 6.51 to 7.00 3,053 1,273 2,766 536 214 265 73 472 7.01 to 7.25 536 366 461 117 55 83 21 166 7.26 to 7.50 1,176 1,039 1,062 418 89 185 25 436 7.51 to 8.00 272 208 251 145 18 55 2 8 8.01 to 8.50 17 3,592 11 4 5 69 1 19 8.51 to 8.75 8 76 to 9 00 2 6 2 5 MEMO: Average issuing rate (per cent) 7.208 7.233 7.211 7.179 * Includes those banks that are no longer issuing. In contrast, consumer-type time deposits with LARGE-DENOMINATION maturities of greater than a year increased by TIME DEPOSITS more than $5.1 billion during the 3-month survey period. Apparently a large proportion of this Outstanding large negotiable CD's continued to increase stemmed from growth in the new 4- expand rapidly—by 19 per cent—between April year deposits and may have reflected shifts out and July, following a record increase in the of lower-yielding passbook and time deposits. previous 3-month period. In the 6 months after As of July 31, 38 per cent of all insured banks January 31, the volume of outstanding CD's were offering the new 4-year certificates and had (IPC) increased by $15.5 billion, which acoutstanding deposits in an amount slightly less counted for over half of the increase in total than $3.3 billion (Table 4). On the basis of data IPC time and savings deposits during that from a sample of large banks, it has been period. Almost all the increase in outstanding estimated that approximately $600 million in CD's occurred at the large banks, which—in 4-year time deposits were outstanding at all an environment of unusually strong loan deinsured banks prior to the July 1 change in mand—were aggressive bidders for these funds. Regulation Q ceiling rates. This suggests that Accompanying rapidly rising rates on Treasury during the month of July banks issued about securities and other money market instruments $2.6 billion of the new 4-year certificates, which during the survey period, these larger instituaccounted for more than 50 per cent of the total tions increased offering rates on the majority of increase in consumer-type time deposits with their certificates to levels above 9 per cent, maturities greater than a year during the April- considerably higher than the 6 per cent rate July survey period. The average of the most prevalent at the end of April. common rates offered on these deposits was 7.2 Smaller banks have been much less aggresper cent, with small banks offering a slightly sive in the CD market—paying rates considhigher rate on average than the large banks. erably less than those of the larger institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 729 Rates offered on large CD's by banks with total in the most recent survey period as the average deposits under $100 million in July averaged offering rate on these instruments increased 7.5 per cent compared with 9.3 per cent for from 6.4 per cent to 8.4 per cent. As with larger banks. negotiable CD's, large banks paid higher rates Large-denomination time deposits other than on, and experienced a much larger increase in, negotiable CD's also expanded at a rapid pace these deposits than did the smaller institutions. TABLE 5 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JULY 31, 1973 Time deposits in denominations of— Less than $100,000 $100,000 or more Savings All and time small Maturing in— Bank location and size of bank and denom- Savings (total deposits in millions of dollars) savings ination Nonnedeposits time 4 years 4 years Nego- gotiable deposits Total or more or more tiable CD's Less 1 up to 2Vt years | (in de- (in de- CD's and open than 2Vi years up to nomina- nomina- accounts 1 year 4 years tions of tions of less than $1,000 or | $1,000) more) All banks: All size groups 6.1 5.2 4.7 5.8 5.4 5.9 6.3 6.2 7.2 9.1 8.4 Less than 10 5.4 5.3 4.6 5.7 5.3 5.8 6.2 6.5 7.3 6.9 7.4 10-50 5.5 5.3 4.8 5.8 5.4 5.9 6.2 6.1 7.2 7.5 7.4 50-100 5.5 5.2 4.8 5.8 5.4 5.9 6.4 6.2 7.2 7.6 7.3 100-500 5.7 5.1 4.7 5.7 5.4 5.9 6.2 5.8 7.2 8.4 8.1 500 and over 6.8 5.1 4.7 5.8 5.4 5.9 6.4 6.2 7.2 9.4 8.8 Banks in— Selected large SMSA's1 All size groups 6.4 5.1 4.7 5.8 5.4 5.9 6.3 6.2 7.2 9.3 8.6 Less than 10 5.3 5.2 4.7 5.7 5.3 5.8 6.0 5.4 7.9 6.9 8.0 10-50 5.4 5.2 4.8 5.8 5.4 5.9 6.4 5.8 7.2 7.7 7.3 50-100 5.4 5.2 4.8 5.8 5.4 5.9 6.4 6.2 7.3 7.4 7.1 100-500 5.8 5.1 4.7 5.7 5.3 5.9 6.2 5.9 7.2 8.5 8.1 500 and over 6.8 5.1 4.7 5.8 5.4 5.9 6.4 6.2 7.2 9.4 All other SMSA's: All size groups 5.6 5.1 4.6 5.7 5.4 5.9 6.2 6.5 7.3 8.5 8.0 Less than 10 5.0 4.9 5.7 5.2 5.8 5.9 6.5 7.2 6.8 7.5 10-50 5.4 5.3 5.8 5.3 5.9 6.3 5.1 7.3 7.7 7.5 50-100 5.5 5.2 5.8 5.4 5.9 6.4 6.5 7.4 8.1 8.0 100-500 5.6 5.1 5.7 5.9 6.3 6.4 7.2 8.1 8.0 500 and over 6.0 4.9 5.7 5.3 5.8 6.2 6.5 7.2 9.1 8.5 Banks outside SMSA's: All size groups 5.5 5.4 4.8 5.8 5.4 5.9 6.2 5.8 7.2 7.4 7.6 Less than 10 5.4 5.4 4.7 5.7 5.3 5.8 6.3 6.5 7.2 7.0 7.0 10-50 5.5 5.4 4.8 5.8 5.4 5.9 6.2 6.3 7.3 7.1 7.5 50-100 5.4 5.2 4.8 5.7 5.3 5.9 6.4 5.7 6.9 7.9 6.8 100-500 5.5 5.2 4.7 5.7 5.3 5.9 6.2 5.1 7.4 8.0 7.8 500 and over 6.0 5.4 5.0 5.8 5.5 6.0 6.5 6.0 7.0 7.5 9.8 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of population in the 1970 Census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-Troy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland Norfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D. C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Beraadino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Youngstown-Warren NOTE.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. For Table 6 see page 730. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN • OCTOBER 1973 TABLE 6 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, OCT. 1972—JULY 1973 Number of issuing banks Amount (in millions of dollars) PPeerrcceennttaaggee cchhaannggee iinn ddeeppoossiittss TTTyyypppeee ooofff dddeeepppooosssiiittt 1972 1973 1972 1973 ((qquuaarrtteerrllyy rraattee)) Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Jan 31- Apr. 30- Apr. 30, 1973 July 31, 1973 Total time and savings deposits 13,567 13,589 13,813 13,847 268,734 275,611 291,216 305,031 5.7 4.7 Savings 13,175 13,252 13,508 13,554 119,686 121,453 122,936 123,034 1.2 .1 Time deposits in doniminations of less than $100,000—total 13,392 13,396 13,571 13,626 96,636 100,280 103,944 105,611 3.7 1.6 Accounts with original maturity OnfI Less than 1 year 12,643 12,798 13,044 13,170 46,091 46,693 46,633 43,154 -.1 -7.5 1 up to 2Vi years 1 n.a. n.a. n.a. 13,152 n.a. n.a. n.a, 49,068 2% up to 4 years 1 n.a. p.a. n.a. 8,180 n.a. n.a. n.a. 9,425 4 years and over:1 In denominations of less than $1,000 n.a. n.a. n.a. 339 n.a. n.a. n.a. 692 6.9 9.0 In denominations of $1,000 or more n.a. n.a. n.a. 5,300 n.a. n.a. n.a. 3,272 All maturities: Open accounts— Passbook or statement form 2 3,384 3,518 3,626 3,821 27,410 28,637 29,065 30,290 1.5 4.2 Time deposits in denominations of $100,000 or more 6,255 6,131 6,275 6,708 46,009 48,206 58,212 69,809 20.8 19.9 Negotiable CD's 3,195 3,098 3,226 3,336 33,330 35,065 42,511 5500,,661188 21.2 19.1 Nonnegotiable CD's and open account 3,725 3,690 3,738 3,869 12,679 13,141 15,701 19,191 19.5 22.2 Christmas savings and other special funds 7,969 8,257 8,606 8,771 6,403 5,672 6,124 6,584 8.0 7.5 n.a. Not available. Corporation. For Jan. 31, Apr. 30, and July 31, 1973, the in- 1 Maturity categories were changed to conform with the change in formation was reported by a probability sample of all insured com- Regulation Q that went into effect July 1, 1973. mercial banks; for Oct. 31, 1972, the data for member banks were 2 Includes time deposits, open account, issued in passbook, state- reported by virtually all such banks and for insured nonmember ment, or other forms that are direct alternatives for regular savings banks by the same sample of these banks reporting in earlier surveys. accounts. Most of these are believed to be in accounts totaling less Some deposit categories include a small amount of deposits outthan $100,000. The figures shown on this line are included above in standing in a relatively few banks that no longer issue these types of dethe appropriate maturity category. posits and are not included in the number of issuing banks. Dollar NOTE.—Data were compiled jointly by the Board of Governors of amounts may not add to totals because of rounding. the Federal Reserve System and the Federal Deposit Insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Series for Large Manufacturing Corporations The Board of Governors is resuming its quar- according to their current industrial grouping, terly reporting on sales, profits, and dividends as determined by the Securities and Exchange of large manufacturing corporations, a series Commission. that was discontinued in 1970. The new series, Data are compiled from reports made by which differs from its predecessor both concep- companies to their stockholders and to the Setually and in the income items presented, will curities and Exchange Commission. Because of be published quarterly in the Board's statistical wide variations in the information found in these release "Sales, Revenue, Profits, and Dividends public reports, definitions of items in the series of Large Manufacturing Corporations" and in the are fairly broad. Data for the individual compastatistical section of the BULLETIN. nies reflect the basis of consolidation used by The new series includes three-fourths of the each company, and they include foreign as well 200 largest manufacturers in the United States. as domestic operations. Included are all public manufacturing corpora- The new series is similar in many respects tions with sales of $700 million or more for to the earlier series for 177 corporations, which which a consistent set of data could be con- was suspended when consistent data for an structed. A few companies with sales from $500 appreciable number of the companies could no million to $700 million are included in order longer be compiled because of changes in corto obtain increased representation in a particular porate structures and accounting procedures.1 industry. Two-thirds of the companies in the earlier series The 170 companies in the new series account are also included in the new series, and industry for about 45 per cent of the sales, 60 per cent coverage—while somewhat higher now—is of the profits, and 50 per cent of the assets of substantially comparable. Earnings data have the more than 200,000 manufacturing corpora- similarly been adjusted to obtain inter-company tions in this country. However, since sales vol- comparability by eliminating the effect of (1) ume was one of the criteria used in selecting all charges and credits that affect surplus and the companies, and sales volume is so much reserves rather than income, (2) tax credits, and more concentrated in some industries than in (3) other items not primarily related to the others, the series provides greater coverage for current reporting period. those industries. For example, companies in the Unlike the previous series—which attempted motor vehicle and petroleum groups account for to cover only manufacturing operations—the more than 90 per cent of total sales and profits new series covers revenues and income from in these industries. In contrast, some other in- all sources including manufacturing and nondustries, particularly textiles, paper, and build- manufacturing operations, equity in earnings of ing materials, have rather limited repre- nonconsolidated subsidiaries, and investment sentation. In order to avoid discontinuities, and other nonoperating income. The new item companies are classified for the entire period on total revenue provides a means for measuring the growing diversification of these large companies. Income taxes also differ in that now they NOTE.—This series was developed by Eugenie Malinclude State and local government and foreign linson and Margaret H. Pickering. Quarterly data for 1969 and 1970, technical notes, taxes in addition to Federal income taxes. and a listing of the companies included in the series The other new item added to the series is are available upon request from Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, xThe previous series was last published in the June D.C. 20551. 1972 BULLETIN, p. A-50. 731 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN • OCTOBER 1973 after-tax profits as reported by the individual comparable figures for all domestic nonfinancial companies. Inasmuch as tabulations of such data corporations (national-income basis) and for the are widely available in the financial press and manufacturing component thereof were 7 and are thus available for prompt analysis, it has 6.5 per cent, respectively. Before-tax profits of been decided to include a similar series here these large manufacturers also grew at a 7.5 per for comparison with the adjusted after-tax prof- cent rate as compared with 4.3 and 5.2 per cent its series. It should be noted, however, that the for all nonfinancial and manufacturing, respecunadjusted data are likely to give a misleading tively. Profit margins too were higher for these impression of short-term trends in earnings. For large companies—10.7 per cent, or more than example, the significant drop in unadjusted twice the margins for all companies. profits for machinery companies in the third Part of these differences reflect the treatment quarter of 1971 and the absolute decline in of foreign earnings. For example, the data for unadjusted profits for metal manufacturers in the large companies include such earnings, whereas fourth quarter of 1971 (shown in the accompa- the national-income aggregate excludes them. nying table) are in each case attributable to a Since the repatriated earnings from the rest of write-off of discontinued operations by a single the world have become substantial in recent company. years, this definitional difference can explain a Although, because of definitional differences, portion of both the lower margin and the it is difficult to make a direct comparison of differential rates of the growth in earnings for these new data with such universe estimates of the national-income series. On the other hand, sales and profits as those in the national-income the FTC data include foreign earnings; but even accounts or the Federal Trade Commission's so, this series exhibits slower growth rates and Quarterly Financial Report, some broad conclu- smaller profit margins than the new Federal sions can be drawn: Reserve series. This would suggest that com- According to the new data, the performance pany size and type of industry are also influenof large manufacturing companies has been tial factors whose interaction can be studied with slightly but consistently better than that of the these new data; such studies are not possible manufacturing sector as a whole. Sales of the with the FTC series, however, because those large companies increased at an average annual data are not cross-classified by size and industry rate of 7.5 per cent over the period 1969-72; group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEW SERIES FOR LARGE MANUFACTURING CORPORATIONS 733 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1971 1972 1973 Industry 1969 1970 1971 1972 III IV III IV Total (170 corps.): Sales 299,533 305,370 334,957 371,946 85,857 80,916 87,214 88,349 93,853 89,550 100,194 102,457 Total revenue 303,257 309,532 339,134 376,604 86,979 82,017 88,317 89,452 95,271 90,803 101,078 103,912 Profits before taxes 34,311 29,266 35,771 41,164 9,443 7,893 9,709 9,715 10,467 8,978 12,003 12,643 Profits after taxes 18,830 16,556 19,146 21,753 5,081 4,293 5,031 5,212 5,674 4,936 5,931 6,763 Memo: PAT unadj.1 18,335 16,436 18,020 21,233 4,987 3,950 4,373 5,162 5,687 4,490 5,894 6,739 Dividends 9,962 10,024 10,104 10,538 2,504 2,509 2,581 2,538 2,598 2,525 2,877 2,670 Nondurable goods industries (86 corps.):2 Sales 138,621 147,808 160,973 176,329 40,120 40,188 41,887 42,254 43,395 43,865 46,815 47,252 Total revenue 140,837 150,312 163,448 178,915 40,828 40,928 42,382 42,930 44,273 44,689 47,023 48,245 Profits before taxes 17,404 16,935 19,900 21,799 4,836 4,940 5,438 5,043 4,998 5,278 6,479 6,471 Profits after taxes 10,223 9,649 10,490 11,154 2,574 2,672 2,672 2,673 2,682 2,852 2,946 3,398 Memo: PAT unadj.1 9,529 9,591 10,085 10,859 2,513 2,625 2,409 2,625 2,625 2,574 3,035 3,348 Dividends 5,386 5,560 5,664 5,780 1,399 1,417 1,442 1,447 1,430 1,427 1,476 1,513 Durable goods industries (84 corps.):3 Sales 160,912 157,562 173,985 195,618 45,737 40,727 45,327 46,095 50,458 45,685 53,379 55,205 Total revenue 162,420 159,220 175,686 197,690 46,151 41,090 45,935 46,522 50,999 46,115 54,055 55,667 Profits before taxes 16,907 12,332 15,871 19,365 4,607 2,953 4,271 4,673 5,469 3,697 5,524 6,172 Profits after taxes 8,607 6,908 8,656 10,599 2,506 1,621 2,359 2,539 2,992 2,083 2,984 3,365 Memo: PAT unadj.1 8,806 6,845 7,935 10,374 2,475 1,325 1,964 2,537 3,062 1,916 2,859 3,392 Dividends 4,577 4,464 4,440 4,758 1,105 1,092 1,139 1,091 1,168 1,097 1,401 1,157 Selected industries: Food and kindred prod. (28 corps.): Sales 28,962 31,966 34,584 37,624 8,617 8,717 9,073 8,824 9,229 9,531 10,039 9,847 Total revenue 29,341 32,393 35,090 38,091 8,758 8,831 9,206 8,941 9,371 9,665 10,115 9,996 Profits before taxes 2,845 3,122 3,372 3,573 846 898 863 794 880 940 960 890 Profits after taxes 1,364 1,571 1,714 1,845 426 453 446 414 454 486 490 470 Memo: PAT unadj.* 1,266 1,540 1,644 1,805 423 448 386 408 452 492 452 453 Dividends 764 812 862 893 215 216 218 221 222 223 227 237 Chemical and allied prod. (22 corps.) : Sales 29,961 31,086 33,005 36,638 8,345 8,344 8,432 8,779 9,167 9,099 9,593 10,153 Total 30,308 31,490 33,388 37,053 8,424 8,423 8,574 8,868 9,265 9,196 9,723 10,519 Profits before taxes 4,123 3,863 4,123 4,853 1,027 1,060 1,031 1,172 1,184 1,216 1,280 1,487 Profits after taxes 2,180 2,111 2,290 2,672 574 580 586 652 667 683 669 838 Memo: PAT unadj.1 2,206 2,137 2,167 2,671 560 573 494 649 626 684 712 834 Dividends 1,262 1,298 1,332 1,395 331 336 342 337 341 340 378 371 Petroleum refining (15 corps.): Sales 56,411 61,360 68,534 74,662 16,907 16,805 18,007 18,269 18,169 18,298 19,925 19,924 Total revenue 57,770 62,826 69,903 76,133 17,351 17,291 18,154 18,695 18,756 18,837 19,845 20,339 Profits before taxes 8,490 8,509 10,835 11,461 2,556 2,590 3,138 2,684 2,433 2,628 3,717 3,514 Profits after taxes 5,630 5,158 5,624 5,562 1,351 1,421 1,418 1,384 1,270 1,398 1,509 1,760 Memo: PAT unadj.1 4,987 5,131 5,519 5,325 1,325 1,396 1,390 1,356 1,273 1,119 1,578 1,737 Dividends 2,836 2,917 2,952 2,992 723 734 755 763 742 741 746 777 Primary metals and prod. (23 corps.): Sales 30,460 30,769 31,441 34,359 9,275 144 7,335 7,848 8,886 8,525 9,099 9,646 Total revenue 30,928 31,288 31,808 34,797 9,365 232 7,445 7,931 8,984 8,629 9,253 9,746 Profits before taxes 2,721 2,072 1,517 1,969 749 52 254 386 581 413 589 618 Profits after taxes 1,544 1,316 969 1,195 441 50 189 247 372 274 302 383 Memo: PAT unadj. i 1,731 1,371 561 1,109 441 41 -213 260 465 128 256 397 Dividends 890 913 739 653 197 180 162 162 161 162 168 198 Machinery (27 corps.): Sales 44,858 46,486 49,206 55,615 12,200 12,170 13,368 12,939 13,796 13,862 15,018 14,828 Total revenue 45,314 47,028 49,846 56,348 12,368 12,317 13,561 13,102 13,993 14,050 15,203 14,997 Profits before taxes 5,281 4,885 5,277 6,358 1,296 1,290 1,453 1,416 1,550 1,583 1,810 1,705 Profits after taxes 2,593 2,566 2,884 3,522 715 702 806 781 854 870 1,017 933 Memo: PAT unadj. i 2,596 2,477 2,560 3,388 691 435 786 774 848 865 902 931 Dividends 1,165 1,327 1,450 1,497 364 364 366 373 374 375 375 402 Motor vehicles and equipment (9 corps.): Sales 53,996 48,905 61,481 70,653 16,096 13,621 16,109 17,273 18,953 14,703 19,725 21,616 Total revenue 54,248 49,108 61,804 71,139 16,156 13,670 16,308 17,353 19,105 14,735 19,946 21,710 Profits before taxes 5,315 2,153 5,648 6,955 1,688 <j96 1,598 2,017 2,290 628 2,019 2,716 Profits after taxes 2,644 1,306 2,948 3,626 875 385 831 1,037 1,186 343 1,060 1,405 Memo: PAT unadj.i 2,638 1,301 2,952 3,640 870 381 849 1,034 1,178 337 1,091 1,429 Dividends 1,750 1,434 1,433 1,762 356 359 359 359 439 365 599 365 1 Profits after taxes (PAT) as reported by the individual companies. In of returns, allowances, and discounts, and exclude excise taxes paid dicontrast to other profits data in the series, these figures reflect company rectly by the company. Total revenue data include, in addition to sales, variations in accounting treatment of special charges and credits. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not NOTE—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 BULLETIN, p. A-50. 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Statement to Congress Statement by George W. Mitchell, Vice Chair- The Board of Governors over the years has man, Board of Governors of the Federal Re- consistently opposed such proposals. It is unserve System, before the Committee on Banking derstandable that some members of Congress and Currency, House of Representatives, Oc- and the public have wondered at this since the tober 3, 1973. GAO enjoys a well-deserved reputation for competence and integrity. I submit to you today, Mr. Chairman and members of the committee, however, that we perceive serious problems 1 welcome the opportunity you have afforded with this proposal. Our objections stem from me to discuss H.R. 10265, a bill that would a basic concern about the optimal functioning amend the Federal Reserve Act in various re- of the Nation's money and banking system. spects. With your permission I would like to briefly Section 1 of the bill would authorize the sketch in the background on this subject. General Accounting Office (GAO) to conduct Congress created the GAO in 1921—8 years an annual audit of the Board of Governors, the after passing the Federal Reserve Act—to pro- Federal Reserve Banks, and their branches. In vide the legislative branch with audit authority so doing the Comptroller General would be over the receipt, disbursement, and application accorded access to such records, including of public funds. For the next 12 years, the Board reports of examinations of member banks, as of Governors, but not the Federal Reserve he finds necessary for the conduct of the audits. Banks and branches, came under the GAO's The Comptroller General would be required to scrutiny. During this time the accounts of the submit a report of each audit to Congress. Board were carefully checked by GAO. Section 2 of the bill would extend the author- In 1933, however, Congress deliberately ity of the Reserve Banks to purchase obligations voted to remove the Board from the jurisdiction of the United States directly from the Treasury. of the GAO. The purpose, as described in the The Banks are currently permitted to purchase report of the Senate Banking and Currency up to $5 billion of U.S. Government obligations Committee, was to "leave to the Board the in this manner, but this authority expires on determination of its own internal management October 31. policies." This action, we believe, resulted Section 3 of the bill would raise by $60 from a judgment that noninterference with the million the ceiling on expenditures that the internal management of the Federal Reserve Federal Reserve System may undertake for the would in the long run provide better monetary construction and renovation of branch bank and credit policies. buildings. Naturally, the audit function did not cease The Board supports the objectives of Sections with the termination of the GAO's annual audits 2 and 3; I shall comment on these provisions of the Board. For some years audit teams from briefly at the end of my statement. nearby Federal Reserve Banks performed the As we understand Section 1, the Comptroller audit of the Board's books, but in 1952 the General would be granted broad authority to Board, using the discretion Congress provided, look into the financial and operational aspects voted to hire nationally recognized public acof the Federal Reserve System. The GAO would counting firms to perform this function in order be unrestricted in the conduct of the audit, and to assure an independent oversight of the would thus have the authority to review and Board's administrative activities. This arrangeevaluate all aspects of Federal Reserve activi- ment has continued to this day. Meanwhile, year ties. in and year out the Board's own examiners 734 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

scrutinized the Federal Reserve Banks. In recent pany the Board's examiners in their examination years their techniques have been reviewed by of one of the Reserve Banks each year. This outside accountants. provides an external evaluation of the adequacy Before describing our present audit proce- and effectiveness of the examination procedures in detail, I should like to refer to the types dures. of audit work that we understand GAO con- In addition to the annual examination by the ducts. I should add that, although the distinc- Board's examiners, the operations of each Retions may seem to be clear from a conceptual serve Bank are audited by the Bank's internal standpoint, they tend to overlap in practice. auditing staff on a year-round basis under the The audit of narrowest scope is termed by direction of a resident general auditor. He is the GAO as an audit of financial operations and responsible to the Bank's board of directors, legal compliance. This is an audit of financial through its chairman and its audit committee, transactions, accounts, and reports, and of and his selection is approved by the Board of compliance with applicable laws and regula- Governors. He is thus independent of the Bank's tions. operating management. Each year the Board's A second category of audit relates to effi- examiners review thoroughly the resident audit ciency of operation. Policies, procedures, and programs at all the Reserve Banks to see that transactions are examined to evaluate how well the coverage is adequate and the procedures the agency carries out its programs and activities effective. and how well it uses its financial, property, and Thus the auditing controls set up by the personnel resources. Federal Reserve begin with on-site auditors— The third category of audit deals broadly with independent of management—who review daily program results—the extent to which desired operations, security procedures, and conformresults or benefits are being achieved and ance with System standards. Their constant whether the objectives established by Congress presence provides continuous auditing and are being met. timely action. For its part, the Federal Reserve System has The follow-up of the on-site activity is made developed formal audit and examination proce- by the Board's examiners in their examinations dures that are extremely thorough. The accounts of the Reserve Banks. These examinations are of the Board of Governors are audited each year backed up by an "over-the-shoulder" inspecby a competent outside accounting firm of certi- tion by the outside auditors of the work of the fied public accountants. Each accounting firm Board's examiners in examining a typical Reperforms audits for five successive years and is serve Bank. This is to add current expertise over then replaced by another topflight firm. Last year a broad range of accounting problems and authe audit was conducted by Touche Ross & Co.; diting developments to that of the Board's exthe preceding year it had been conducted by aminers. Lybrand, Ross Bros. & Montgomery, thus end- The system taken all together is thoroughly ing a 5-year cycle. The audit report is repro- adequate and may even seem redundant. If one duced in the Board's Annual Report, and copies were to review audit findings and recomof the report are furnished to this committee and mendations over the years, I doubt if he could to the Senate Committee on Banking, Housing come to any other conclusion. Over the years and Urban Affairs. most of the potential problems have been dealt Each Federal Reserve Bank and branch is with by resident auditors, and at no time in examined at least once each year by the Board's history has the internal auditing program of the staff of field examiners. The examination in- Reserve Banks been stronger than it is today. cludes a comprehensive review of each Bank's But thoroughness is necessary because the expenditures to determine if they are properly Federal Reserve Banks deal in the most fungible controlled and of a nature appropriate for a of all commodities—money—and in astro- Reserve Bank. The outside accounting firm re- nomical quantities. The Reserve Banks handle tained to audit the Board is engaged to accom- an annual flow of coin and currency of 27.8 735 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN • OCTOBER 1973 billion pieces, having a value of $53.2 billion. independent auditor performs this function; in The checks passing through the System each other cases it is handled by a separate division year on their way to becoming someone else's under the Reserve Bank President. In either money total 9.8 billion items and $3.7 trillion. event, Reserve Bank operations are exposed to The wire transfers are limited in number—only a continuous review and evaluation- by an ex- 11 million were handled last year—but they tradepartmental unit. moved $17 trillion. To perform these functions Again paralleling the external arrangements with a minimum loss or defalcation requires a for audits of financial transactions, the Board comprehensive control and audit system. No has a Division of Federal Reserve Bank Operasystem is perfect, but ours has worked well, tions that reviews the management and operaas the record shows. tional efficiency of the various facets of Reserve In recent years, the term "audit" has been Bank operations. Many of these audits are a broadened, as the GAO concepts indicate, to vehicle for sharing valuable experience among include a variety of objectives and techniques. Federal Reserve Banks on such matters as check I think it is clear from the description of Federal or money handling equipment and procedures. Reserve audit activities that I have given thus System committees of technicians provide still far that I have focused on what is generally another arrangement for reaching the results called an audit of financial transactions. Such sought by an audit of operations. These coman audit of the Federal Reserve Banks covers: mittees have provided much of the leadership (a) the system of recordkeeping and account- and know-how for developing many innovations ing control over money, checks, and securities in various operations pertaining to securities coming into and going out of the Reserve handling (book entry), currency sorting, and Banks, as well as their expenses, earnings, check and wire transfers. assets, and liabilities; Finally, some of the Reserve Banks have used (b) the compliance with basic standards—in the services of private consulting firms to review this case Federal law, and regulations and the adequacy and efficiency of their operations. directives of the Board of Governors; and Such external reviews have been productive in (c) the availability of periodic reports sum- evaluating the kinds of operations to which the marizing the financial data in a manner that consultant brings a special expertise. However, reveals the volume of work, relevant costs, and we have not found them to be very helpful when the net earnings (or losses) from operations. addressed to operations that are essentially I have spoken in detail about items (a) and unique to the Federal Reserve. (b) but have given little attention to (c). The Stating our position at the cost-benefit level, reason is that our release of data about Federal the results from internal audits of operations Reserve operations on a daily, weekly, monthly, have been much more productive than external quarterly, annual, and ad hoc basis is enormous. audits. This seems to be due to the fact that Frequently, as you know, members of the a large sector of Federal Reserve Bank opera- Board testify fully at congressional hearings on tions has a limited counterpart in public or the policies and activities of the Federal Reserve private institutions, either in character or scale. System. The Board reports promptly and fully As a result, "outside" experts do not get much to special congressional inquiries—particularly beyond the learning stage in their audits of these inquiries by congressional committees involving operations. the System's operations, policies, and expendi- If the audit proposed in Section 1 were to tures. be confined to an audit of financial operations Over the years, however, the System's audits and legal compliance, some—but not all—of the have evolved considerably beyond the basic Board's traditional objections would be reaudit of financial transactions that I have de- moved. However, the Board is convinced that scribed. The System now has in place the ca- its present audit arrangements are more than pacity to conduct reviews of management and adequate. A GAO audit limited to financial of operational efficiency. In some Banks the transactions and legal compliance would be a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 737 duplication of the audit now performed by an probability, that an audit by GAO would in time outside public accounting firm for the Board and generate pressures for the Federal Reserve Sysby the Board itself for the Reserve Banks. tem to dilute or compromise its best monetary In a sense Congress has designated the Board or credit judgment to short-run rather than of Governors as its "GAO" for purposes of long-run interests. The structure created by the reviewing the operations of the Reserve Banks. framers of the Federal Reserve Act more than The Board reports directly to Congress and 60 years ago, however unique and unconvenalways stands ready to provide any information tional, has turned out to be remarkably adapt- Congress seeks about expenditures by the Sys- able to the U.S. economy and remarkably tem. If still another arm of Congress were responsive to its long-run interests. This strucdirected to audit the Reserve Banks, this would, ture combines the advantages of regional at a minimum, diffuse audit responsibility, and units—the 12 Federal Reserve Banks—with the would have a low benefit yield in relationship central oversight and coordination of the Board. to the cost. Furthermore, it is obvious that the opponents In any event, there are some critical informa- of a monetary authority with the independence tional constraints that should be imposed. They the Congress has long given the Federal Reserve include exemption of examination reports of would view this action as the opening wedge member banks, certain transactions conducted in a series of legislative measures by which they with and on behalf of foreign central banks, and would hope to make monetary and credit policy sensitive information about open market and responsive to short-run political and economic discount operations. (Much of the information pressures. They would ask Congress to take in the latter two categories becomes available further steps to place the Board either directly with a lag.) A high degree of confidentiality under an executive branch agency or perhaps in these areas is essential for the conduct of under day-to-day congressional control, how- Federal Reserve functions; granting GAO ever that might be accomplished. But Congress access to these records could pose problems in has, in our view, wisely avoided this possible assuring this confidentiality. line of development by continuing to place If the audit were to go beyond a basic finan- responsibility for internal management on the cial audit, and GAO typically does so in the Board itself. course of its ordinary audit activities, the objec- The unique character of the System, as contions of management and policy critiques by ceived by the Congress, lies in the engagement GAO would be inconsistent with the long-es- of both the public and private sector, in all its tablished congressional policy that has insulated regional variety, in the effort to serve the diverse the Federal Reserve from such pressure. In the economic interests of production, trade, agrisensitive area of monetary policy, Congress has culture, finance, and consumption. The Federal vested decision-making responsibility exclu- Reserve uses its regional links with the various sively in the Federal Reserve, and has estab- sectors of the economy as channels for activalished safeguards to ensure that the System will tion and response to monetary and credit measexercise professional—and entirely inde- ures. The arrangement has evolved into a senspendent—judgment. We believe this arrange- ing device of considerable value. ment should continue as long as it serves the The System's blending of public and private long-run interest of the public. elements, and its balance between central over- Also, as in the case of the audit of financial sight and regional initiative, could be endantransactions, the broader GAO audits would be gered if audits were to be conducted by GAO. duplicative of the kind of audit functions that This is not said in a spirit of criticism of the I have just described. Reviews of management staff of GAO, but rather as a reflection of our and operational efficiency are now an integral concern for the institutional diversity of the part of the System's audit activities, both at the Federal Reserve. Where differences were en- Reserve Banks and at the Board. countered between the way the Reserve Banks There is moreover the clear possibility, even function and the prevailing Federal Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN • OCTOBER 1973 practice, the Government auditors might well construction and renovation of Reserve Bank support the latter, whether or not the end result branch buildings. This is the dollar figure conwould prove superior. For our part, it would tained in a bill that the Senate passed in Febrube difficult for the System to resist over the years ary 1972. In February of this year Chairman a constant pressure to conform. A gradual Burns wrote to the distinguished chairman of process of erosion could begin that might well this committee outlining a program of branch spell the end of the Reserve Banks as we know building expenditures totaling $71.45 million as them today. We have serious doubts, moreover, the Board's best estimate of its most pressing whether the final outcome of such a process needs through 1977. This would include funds would yield public benefits that could match for construction of new branch buildings in those flowing from the present structure. Baltimore, Charlotte, Omaha, and Los Angeles. Construction of these buildings is urgently needed. As our population grows and moves, * * * * * it is necessary to increase the quantity of our With regard to Section 2, we support the services. While technological improvements in amendment to Section 14(b) of the Federal the method of handling many Federal Reserve Reserve Act extending the authority of the Fed- operations have helped to stem the need for eral Reserve Banks to purchase U.S. obligations additional space, increases in the volume of directly from the Treasury. Timely use of this operations have more than offset the savings. authority—for example, during periods imme- In the decade 1963-72 checks collected by the diately preceding tax-payment dates—can avoid Federal Reserve increased 117 per cent, coin the creation of unnecessary financial strains that operations increased 93 per cent, and currency might occur if the Treasury were required to operations, 56 per cent. Construction of the draw heavily on its accounts at such times. branch buildings we are planning will help the There is no doubt the existence of the authority System to continue to cope with the needs of permits more economical cash management, the public in our expanding economy. As of and it also assures the immediate availability today, due to cost increases, the construction of funds in the event of a national emergency. program we outlined to Chairman Patman in Section 3 of H.R. 10265 would raise by $60 February will cost $76.2 million. We recommillion the ceiling on expenditures that the mend that the dollar limitation in Section 10 Federal Reserve System may undertake for the be increased by that amount. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 17, 1973 Domestic policy directive The information reviewed at this meeting suggested that growth in 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, had grown at a much less rapid pace in the second quarter. Staff projections continued to suggest that growth would moderate further in the second half of the year. Retail sales declined in June, according to the advance report, and in the second quarter as a whole they were about the same as in the first quarter. Industrial production continued to rise in June—reflecting further gains in output of business equipment and industrial materials—but the advance was somewhat less rapid in the second quarter than in the first. Nonfarm employment again rose substantially in June, but as in April and May, the pace of expansion was much less rapid than it had been earlier in the year. The unemployment rate declined to 4.8 per cent after having been 5.0 or 5.1 per cent for 6 months. The advance in average hourly earnings of production workers on nonfarm payrolls, which had been moderate in the first quarter of the year, was more rapid in the second quarter. Wholesale prices of both industrial commodities and farm and food products rose sharply further from mid-May to mid-June, prior to the imposition of the price freeze announced by the President on June 13. The increase in the total wholesale price index during the first half of the year was extraordinarily large. In May the consumer price index continued to rise at about the high average rate prevailing in the first 4 months of the year; increases in retail prices were widespread and were particularly large among foods. The latest staff projections for the second half of 1973 were similar to those of 4 weeks earlier. The anticipated expansion in business fixed investment, although substantial, was much less rapid than in the first half of the year. Moreover, it was expected that residential construction outlays would decline appreciably; that 739 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN • OCTOBER 1973 business inventory investment would increase less rapidly than in the second quarter; and that growth in personal consumption expenditures would be well below the pace in the first half. U.S. merchandise exports continued to expand in May, but imports rose sharply—in large part because of increases in import prices—and the trade balance slipped back into deficit after having been in small surplus in April. However, the average deficit for the 2 months was substantially below that in the first quarter of 1973, which in turn was much lower than the deficit in the fourth quarter of 1972. Since the June 18-19 meeting of the Committee, the exchange rate for the dollar had declined sharply further against those continental currencies that were floating jointly against the dollar; the decline had been most severe in the 2 weeks after June 26—when the U.S. trade deficit for May was announced—and in the week ending July 6 trading was characterized by large and erratic movements in rates. Subsequently, the dollar recovered somewhat on the basis of market expectations of official intervention to support the dollar. On July 10 the System announced that its swap arrangements with other central banks had been increased by substantial amounts. Throughout the period, the dollar had been firm against the currencies of Canada, the United Kingdom, and Japan—countries that account for the bulk of U.S. foreign trade. At U.S. commercial banks, both total loans and holdings of securities changed little in June after having expanded sharply in May, as indicated by data for the last Wednesday of each month; over the 2 months the average rate of growth was relatively high. The rate of expansion in business loans in June, although substantial, was well below that earlier in the year. Banks raised the prime rate applicable to large corporations from IV2 per cent in early June to 8V4 per cent by early July. Growth in the narrowly defined money stock (M^,1 which had accelerated in April and May, stepped up somewhat further in June. Although inflows of time and savings deposits other than large-denomination CD's slackened, growth in the broadly defined money 1Private demand deposits plus currency in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 741 stock (M )2 remained at the relatively high rate recorded in May. 2 Expansion in the outstanding volume of large-denomination CD's slowed sharply, but growth in the bank credit proxy3 remained relatively fast. Over the first half of the year, M M , and the l9 2 proxy grew at annual rates of around 6, 7.5, and 14 per cent, respectively.4 Inflows of savings to nonbank thrift institutions, which had picked up in May, remained relatively strong in June, despite continuing advances in market interest rates. In early July, ceilings were removed from interest rates on consumer-type time deposits of at least $1,000 having maturities of 4 years or more—at commercial banks as well as at nonbank thrift institutions. At the same time maximum rates that could be paid on time and savings deposits with shorter maturities were raised. Mortgage interest rates generally continued to rise. System open market operations since the meeting on June 18-19 had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with somewhat slower growth in monetary aggregates over the months immediately ahead than appeared to be indicated for the first half of the year. 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 8 to 11.5 per cent in the June-July period, while avoiding unduly sharp changes in money market conditions. Soon after the June meeting, available data suggested that in the June-July period RPD's would grow at an annual rate above the range that the Committee had specified and that M would grow x at a rate in excess of an acceptable range. Data that became available after the July 4 holiday continued to suggest excessive strength in RPD's and the monetary aggregates in the June-July period, even though money market conditions had continued to tighten, and on Friday, July 6, a majority of Committee members concurred in a recommendation by the Chairman that money market 2 Mi plus commercial bank time and savings deposits other than large-denomination CD's. 3Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 4Growth 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

742 FEDERAL RESERVE BULLETIN • OCTOBER 1973 conditions should be permitted to tighten to a greater extent than had been contemplated at the June meeting. The Federal funds rate, which had been about 8% per cent in the days before the June meeting, was close to 9% per cent during most of the week preceding this meeting, and in the last few days it had risen further. In the 4 weeks ending July 11, member bank borrowings averaged about $1,965 million, up from about $1,855 million in the preceding 5 weeks. As money market conditions continued to firm in the inter-meeting period and private credit demands remained strong, short-term interest rates rose sharply further—in general to levels close to or above the peaks of late 1969 and early 1970. Other policy actions also affected market attitudes and developments. On June 29 reserve requirements on all but the first $2 million of net demand deposits at member banks were increased by Vi percentage point, applicable to average deposits in the week beginning July 5, and Federal Reserve discount rates were raised % percentage point, to 7 per cent, effective July 2. The market rate on 3-month Treasury bills rose from 7.20 per cent on the day before the June meeting to a peak of 7.98 per cent in early July, and on the day before this meeting it was 7.85 per cent. Over the whole period, increases in rates on bank CD's and other private instruments were larger than those for Treasury bills. In long-term markets, interest rates in general advanced considerably, despite continuation of moderate demands for funds in the capital markets. Although the over-all volume of new public offerings of corporate and of State and local government bonds rose somewhat in June, the volume for the second quarter as a whole was low for that season of the year, and a moderate decline was in prospect for July. The Treasury was expected to announce on July 25 the terms of its mid-August refunding. Of the maturing issues, $4.5 billion were held by the public. The Committee agreed that the economic situation and prospects called for slower growth in monetary aggregates over the months immediately ahead than had occurred on average in 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 recorded in the second quarter—in response to the anticipated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 743 moderation in GNP growth and to the sharp rise in short-term interest rates that had occurred in recent months. Because of the rise in short-term market rates, moreover, net expansion in consumer-type time and savings deposits at commercial banks was expected to slow appreciably despite the increase in rate ceilings announced in early July. As a consequence, it was anticipated that banks would attempt to expand the outstanding volume of largedenomination CD's; the increase in these issues in the July-August period was expected to remain relatively large. The staff analysis suggested that a relatively rapid rate of growth in RPD's in the July-August period—at an annual rate in a range of 1 W2 to \3V2 per cent—would be consistent with slower growth in the monetary aggregates over the months immediately ahead than had occurred in the first half of the year. The analysis also 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. The Committee decided that operations should be directed at fostering RPD growth during the July-August period at an annual rate within a range of 1W2 to 13V2 per cent, while avoiding unduly sharp changes in money market conditions. The members also agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments, of the forthcoming Treasury financing, 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 inconsistencies appeared to be developing among the Committee's various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting, including recent developments in industrial production, employment, and retail sales, suggests that growth in economic activity moderated in the second quarter from the exceptionally rapid pace of the two preceding quarters. Increases in employment were relatively substantial, how- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 FEDERAL RESERVE BULLETIN • OCTOBER 1973 ever, and in June the unemployment rate dropped below 5 per cent. Wage rates advanced at a faster pace during the second quarter than earlier in the year. In the months immediately preceding the price freeze imposed in mid-June, the rise in prices of both industrial commodities and farm and food products remained extraordinarily rapid. The U.S. merchandise trade balance worsened in May as import prices rose sharply further, but the trade deficit remained well below the first-quarter average. In foreign exchange markets, the jointly floating continental European currencies rose sharply further against the dollar in early July. After the first week in July, the dollar recovered somewhat on the basis of market expectations of official intervention. On July 10 the Federal Reserve announced substantial increases in its swap arrangements with other central banks. Both the narrowly and more broadly defined money stock rose sharply in May and June, although inflows of consumer-type time and savings deposits slackened somewhat in the latter month. Expansion in bank credit continued at a substantial pace. Since mid-June both short- and long-term market interest rates have advanced considerably further, with the sharpest increases in the short-term sector. On June 29 increases were announced in Federal Reserve discount rates, from 6Vi to 7 per cent, and in member bank reserve requirements; on July 5 ceiling interest rates were increased on time and savings deposits at commercial banks and other thrift institutions. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to abatement of inflationary pressures, a more sustainable rate of advance in economic activity, and progress toward equilibrium in the country's balance of payments. To implement this policy, while taking account of international and domestic financial market developments and the forthcoming Treasury financing, the Committee seeks to achieve bank reserve and money market conditions consistent with slower growth in monetary aggregates over the months immediately ahead than occurred on average in the first half of the year. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Holland, Mayo, Morris, and Sheehan. Vote against this action: Mr. Francis. Absent and not voting: Mr. Mitchell. Mr. Francis dissented from this action not because he disagreed with the objectives of the policy adopted by the Committee but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 745 because he believed that—as had proved to be the case following other recent meetings—the objectives would not be achieved because of the constraint on money market conditions. Subsequent to the meeting it appeared that in the July-August period the annual rate of growth in RPD's and in the monetary aggregates might exceed acceptable ranges, even though money market conditions had continued to tighten. On August 3, 1973, the available members—with the exception of Messrs. Bucher and Sheehan—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. 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 about 90 days after the meeting and are subsequently published in the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions SECURITIES CREDIT BY PERSONS OTHER THAN and operation of security devices to discourage BANKS, BROKERS, OR DEALERS robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons The Board of Governors has amended Regula- who commit such acts. tion G to delete the ''single credit rule" in § 207.4(a)(2)(i) and substitute the provision that AMENDMENT TO REGULATION P each extension of credit pursuant to that section may be treated separately. Effective November 1, 1973, the Board has AMENDMENT TO REGULATION G amended Appendix A of its Regulation P (12 CFR Effective October 29, 1973 § 207.4(a)(2)(i) is 216) to read as follows: amended to read as follows: APPENDIX A SECTION 207.4—MISCELLANEOUS MINIMUM STANDARDS FOR SECURITY PROVISIONS DEVICES (a) Stock option and employee stock pur- In order to assure realization of maximum perchase plans. formance capabilities, all security devices utilized * * * * * by a bank should be regularly inspected, tested, and serviced by competent persons. Actuating (2) * * * devices for surveillance systems and robbery (i) Each such credit extended to any officer or alarms should be operable with the least risk of employee pursuant to this subparagraph (2) in detection by unauthorized persons that can be connection with the exercise of rights under one practicably achieved. or more plans or with the periodic exercise of (1) Surveillance systems, (i) General. Surrights under a single plan, when such credits shall veillance systems should be: be outstanding at the same time, may be treated (A) equipped with one or more photographic, separately from any other credit extended pursuant recording, monitoring, or like devices capable of to this subparagraph (2) and shall be treated reproducing images of persons in the banking separately from any other credit extended pursuant office with sufficient clarity to facilitate (through to sections 207.1(c), (d) and (g) of this part: photographs capable of being enlarged to produce Provided, That the collateral with respect to each a one-inch vertical head-size of persons whose individual credit extended pursuant to such plan images have been reproduced) the identification or plans shall be identified with, and shall have and apprehension of robbers or other suspicious loan value only with respect to, such individual persons; credit. (B) reasonably silent in operation; and (C) so designed and constructed that necessary MINIMUM SECURITY DEVICES AND PROCEDURES services, repairs or inspections can readily be FOR FEDERAL RESERVE BANKS AND STATE MEMBER BANKS made. Any camera used in such a system should be capable of taking at least one picture every 2 The Board of Governors has amended Regula- seconds and, if it uses film, should contain enough tion P to clarify standards with which each Federal unexposed film at all times to be capable of Reserve Bank and each State member bank must operating for not less than 3 minutes, and the film comply regarding the installation, maintenance, should be at least 16mm. 746 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

(ii) Installation and operation of surveillance (C) safeguarded against accidental transmission systems providing surveillance of other than of an alarm; walk-up or drive-in teller's stations or windows. (D) equipped with a visual and audible signal Surveillance devices for other than walk-up or capable of indicating improper functioning of or drive-in teller's stations or windows should be: tampering with the system; and (A) located so as to reproduce identifiable (E) equipped with an independent source of images of persons either leaving the banking office power (such as a battery) sufficient to assure conor in a position to transact business at each such tinuously reliable operation of the system for at station or window; and least 24 hours in the event of failure of the usual (B) capable of actuation by initiating devices source of power. located at each teller's station or window. (ii) Burglary alarm systems. A burglary alarm (iii) Installation and operation of surveil- system should be provided for each banking office. lance systems providing surveillance of walk-up Burglary alarm systems should be: or drive-in teller's stations or windows. Sur- (A) capable of detecting promptly an attack on veillance devices for walk-up or drive-in teller's the outer door, walls, floor, or ceiling of each stations or windows should be located in such a vault, and each safe not stored in a vault, in which manner as to reproduce identifiable images of currency, negotiable securities, or similar valupersons in a position to transact business at each ables are stored when the office is closed, and any such station or window and areas of such station attempt to move any such safe; or window that are vulnerable to robbery or lar- (B) designed to transmit to the police, either ceny. Such devices should be capable of actuation directly or through an intermediary, a signal indiby one or more initiating devices located within cating that any such attempt is in progress; and or in close proximity to such station or window. for banking offices at which the police ordinarily Such devices may be omitted in the case of a cannot arrive within 5 minutes after an alarm is walk-up or drive-in teller's station or window in actuated, designed to actuate a loud sounding bell which the teller is effectively protected by a bul- or other device that is audible inside the banking let-resistant barrier from persons outside the sta- office and for a distance of approximately 500 feet tion or window. However, if the teller is vulnera- outside the banking office; ble to larceny or robbery by members of the public (C) safeguarded against accidental transmission who enter the banking office, the teller should have of an alarm; access to a device to actuate a surveillance system (D) equipped with a visual and audible signal that covers the area of vulnerability or the exits capable of indicating improper functioning of or to the banking office. tampering with the system; and (2) Robbery and burglary alarm systems. (E) equipped with an independent source of (i) Robbery alarm systems. A robbery alarm power (such as a battery) sufficient to assure consystem should be provided for each banking office tinuously reliable operation of the system for at at which the police ordinarily can arrive within least 80 hours in the event of failure of the usual 5 minutes after an alarm is actuated; all other source of power. banking offices should be provided with appro- (3) Walk-up and drive-in teller's stations or priate devices for promptly notifying the police windows. Walk-up and drive-in teller's stations that a robbery has occurred or is in progress. or windows contracted for after February 15, Robbery alarm systems should be: 1969, should be constructed in such a manner that (A) designed to transmit to the police, either tellers are effectively protected by bullet-resistant directly or through an intermediary, a signal (not barriers from robbery or larceny by persons outside detectable by unauthorized persons) indicating that such stations or windows. Such barriers should be a crime against the banking office has occurred of glass at least 13/ inches in thickness,1 or of 16 or is in progress; material of at least equivalent bullet-resistance. (B) capable of actuation by initiating devices Pass-through devices should be so designed and located at each teller's station or window (except constructed as not to afford a person outside the walk-up or drive-in teller's stations or windows station or window a direct line of fire at a person in which the teller is effectively protected by a inside the station. bullet-resistant barrier and effectively isolated from persons, other than fellow employees, inside a banking office of which such station or window may be a part); ^Footnotes appear at end of Appendix A.) 747 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN • OCTOBER 1973 (4) Vaults, safes, safe deposit boxes, night (iii) Safe deposit boxes. Safe deposit boxes depositories, and automated paying or receiv- used to safeguard customer valuables should be ing machines. Vaults, safes (if not to be stored enclosed in a vault or safe meeting at least the in a vault), safe deposit boxes, night depositories, above-specified minimum protection standards. and automated paying or receiving machines, in (iv) Night depositories. Night depositories any of which currency, negotiable securities, or (excluding envelope drops not used to receive similar valuables are to be stored when banking substantial amounts of currency) contracted for offices are closed, should meet or exceed the after February 15, 1969, should consist of a restandards expressed in this section. ceptacle chest having cast or welded steel walls, (i) Vaults. A vault is defined as a room or top, and bottom, at least 1 inch in thickness; a comqrtment that is designed for the storage and steel door at least W2 inches in thickness, with safekeeping of valuables and which has a size and a combination lock; and a chute, made of steel shape which permits entrance and movement that is at least 1 inch in thickness, securely bolted within by one or more persons. Other asset storage or welded to the receptacle and to a depository units which do not meet this definition of a vault entrance of strength similar to the chute. Alternawill be considered as safes. Vaults contracted for tively, night depositories should be so designed after November 1, 1973,2 should have walls, floor, and constructed as to afford at least equivalent and ceiling of reinforced concrete at least 12 inches burglary resistance.5 Each depository entrance in thickness.3 The vault door should be made of (other than an envelope drop slot) should be steel at least 3V£ inches in thickness, or other drill equipped with a lock. Night depositories should and torch resistant material, and be equipped with be equipped with a burglar alarm and be designed a dial combination lock, a time lock, and a sub- to protect against the 4'fishing" of a deposit from stantial lockable day-gate. Electrical conduits into the deposit receptacle, and to protect against the the vault should not exceed 1V2 inches in diameter "trapping" of a deposit for extraction. and should be offset within the walls, floor, or (v) Automated paying or receiving machines. ceiling at least once so as not to form a direct Except as hereinafter provided, cash dispensing path of entry. A vault ventilator, if provided, machines (automated paying machines), including should be designed with consideration of safety those machines which also accept deposits (autoto life without significant reduction of the strength mated receiving machines) contracted for after of the vault wall to burglary attack. Alternatively, November 1, 1973, should weigh at least 750 vaults should be so designed and constructed as pounds empty, or be securely anchored to the to afford at least equivalent burglary resistance.4 premises where located. Cash dispensing machines (ii) Safes. Safes contracted for after February should contain, among other features, a storage 15, 1969, should weigh at least 750 pounds empty, chest having cast or welded steel walls, top, and or be securely anchored to the premises where bottom, at least one inch in thickness, with a located. The body should consist of steel, at least tensile strength of at least 50,000 pounds per 1 inch in thickness, either cast or fabricated, with square inch. Any doors should be constructed of an ultimate tensile strength of 50,000 pounds per steel at least equivalent in strength to the storage square inch and be fastened in a manner equal chest and be equipped with a combination lock to a continuous XA inch penetration weld having and with a relocking device that will effectively an ultimate tensile strength of 50,000 pounds per lock the door if the combination lock is punched. square inch. The door should be made of steel The housing covering the cash dispensing opening that is at least IV2 inch in thickness, and at least in the storage chest and the housing covering the equivalent in strength to that specified for the mechanism for removing the cash from the storage body; and the door should be equipped with a chest, should be so designed as to provide burglary combination lock, or time lock, and with a re- resistance at least equivalent to the storage chest locking device that will effectively lock the door and should also be designed to protect against the if the combination lock or time lock is punched. "fishing" of cash from the storage chest. The cash One hole not exceeding Vi inch diameter may be dispensing control and delivering mechanism (and, provided in the body to permit insertion of electri- when applicable, cash deposit receip mechanism) cal conductors, but should be located so as not should be protected by steel, at least V2 inch in to permit a direct view of the door or locking thickness, securely attached to the storage chest. mechanism. Alternatively, safes should be con- A cash dispensing machine which also receives structed of materials that will afford at least deposits should have a receptacle chest having the equivalent burglary resistance. same burglary resistant characteristics as that of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 749 a cash dispensing storage chest and should be clear and conspicuous notice that Federal law and designed to protect against the fishing and trapping regulation prohibit the bank from paying a time of deposits. Necessary ventilation for the auto- deposit before maturity unless certain interest is mated machines should be designed so as to avoid forfeited, and (2) the bank customer shall be given, significantly reducing the burglary resistance of the at the time that a time deposit is made, a disclosure machines. The cash dispensing machine should statement which makes it clear that the customer also be designed so as to be protected against has contracted to leave his funds on deposit for actuation by unauthorized persons, should be pro- the stated maturity and which describes how the tected by a burglar alarm, and should be located early withdrawal penalty applies to time deposits in a well-lighted area. Alternatively, cash in the bank, in the event the bank, notwithstanding dispensing machines should be so designed and the contract provisions, permits payment before constructed as to afford at least equivalent burglary maturity. resistance.6 A cash dispensing machine which is used inside a bank's premises only during bank business hours, and which is empty of currency AMENDMENT TO REGULATION Q and coin at all other times, should at least provide Effective September 18, 1973, Regulation Q is safeguards against "jimmying," unauthorized amended in the following respects: opening of the storage chest door, and against 1. Section 217.4 is amended by redesignating actuation by unauthorized persons. paragraph (e) as paragraph (f) and by adding a new paragraph (e) to read as follows: FOOTNOTES SECTION 217.4—PAYMENT OF TIME *It should be emphasized that this thickness is merely bullet-resistant and not bulletproof. DEPOSITS BEFORE MATURITY 2 Vaults contracted for previous to this date should be constructed in conformance with all applicable specifications then in effect. (e) Disclosure of early withdrawal penalty. 3The reinforced concrete should have: two grids of #5 (%" diameter) deformed steel bars located in horizontal and vertical At the time a depositor enters into a time deposit rows in each direction to form grids not more than 4 inches contract with a member bank, the bank shall on center; or two grids of expanded steel bank vault mesh provide a written statement of the effect of the placed parallel to the face of the walls, weighing at least 6 pounds per square foot to each grid, having a diamond pattern penalty prescribed in paragraph (d) of this section, not more than 3" x 8"; or two grids of any other fabricated which shall (1) state clearly that the customer has steel placed parallel to the face of the walls, weighing at least contracted to keep his funds on deposit for the 6 pounds per square foot to each grid and having an open area not exceeding 4 inches on center. Grids are to be located stated maturity, and (2) describe fully and clearly not less than 6 inches apart and staggered in each direction. how such penalty provisions apply to time deposits The concrete should develop an ultimate compression strength of at least 3,000 pounds per square inch. in such bank, in the event the bank, notwith- 4Equivalent burglary-resistant materials for vaults do not standing the contract provisions, permits payment include the use of a steel lining, either inside or outside a before maturity. Such statements shall be exvault wall, in lieu of the specified reinforcement and thickness pressly called to the attention of the customer. of concrete. Nonetheless, there may be instances, particularly where the construction of a vault of the specified reinforcement 2. Section 217.6 is amended by redesignating and thickness of concrete would require substantial structural paragraphs (e), (f), and (g) as (f), (g), and (h) modification of an exisiting building, where compliance with the specified standards would be unreasonable in cost. In those and by adding a new paragraph (e) to read as instances, the bank should comply with the procedure set forth follows: in section 216.3(c) of Regulation P. 5 Equivalent burglary-resistant materials for night deposi- SECTION 217.6—ADVERTISING OF INTERtories include the use of one-fourth inch steel plate encased in 6 inches or more of concrete or masonry building wall. EST ON DEPOSITS 6 Equivalent burglary-resistant materials for cash dispensing machines include the use of 3/s inch thick nickel stainless steel meeting American Society of Testing Materials (ASTM) Designation A 167-70, Type 304, in place of 1 inch thick steel, (e) Penalty for early withdrawals. Any adverif other criteria are satisfied. tisement, announcement, or solicitation relating to INTEREST ON DEPOSITS interest paid by a member bank on time deposits shall include clear and conspicuous notice that The Board of Governors has amended its Regu- Federal law and regulation prohibit the bank from lation Q to provide that (1) any advertisement, allowing payment of a time deposit before maturity announcement, or solicitation relating to interest unless substantial interest is forfeited. Such notice paid on time deposits by member banks include may state that, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 FEDERAL RESERVE BULLETIN • OCTOBER 1973 Federal law and regulation prohibit the payment of a time or solicitation made by television or radio, the deposit prior to maturity unless three months of the interest required notice of penalty may be stated in a form thereon is forfeited and interest on the amount withdrawn is reduced to the passbook rate. such as "Substantial interest penalty is required With respect to any advertisement, announcement, for early withdrawal." BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF sion of financial services. The Board has pre- BANK HOLDING COMPANY ACT viously reviewed each of Applicant's nonbanking D. H. BALDWIN COMPANY, activities and, under a Board determination of June CINCINNATI, OHIO 14, 1973,1 found that all of Applicant's activities relating to the musical instruments business were ORDER APPROVING ACQUISITION OF BANK commenced prior to June 30, 1968, have been D. H. Baldwin Company, Cincinnati, Ohio, a engaged in continuously since that date, and apbank holding company within the meaning of the pear to be eligible for retention on the basis of Bank Holding Company Act, has applied for the grandfather privileges. Applicant has committed Board's approval under § 3(a)(3) of the Act (12 itself to divestiture of its electronic interests (not U.S.C. 1842(a)(3)) to acquire indirectly 89 per related to the music business) with reasonable cent or more of the voting shares of North Denver speed and in any event by December 31, 1980. Bank of Denver, Denver, Colorado ("Bank"), Certain of Applicant's interests in the financial through the direct acquisition of all of the voting services field are located within the Denver Standshares of Nordenco, Inc., Denver, Colorado ard Metropolitan Statistical Area (SMSA) and re- ("Nordenco"). Nordenco is a one bank holding quire, in connection with the instant proposal, a company owning approximately 89 per cent of the further analysis to that recently undertaken in the voting shares of Bank and no other assets except Board's § 4(a)(2) review. These interests are, a general insurance agency whose business will specifically, Applicant's ownership of Empire be discontinued prior to consummation of the Savings and Loan Association, Denver, Colorado proposed acquisition. The proposed acquisition of ("Empire"), and National Farmers Union Service Nordenco is treated herein as the proposed acqui- Corporation ("NFU"), also located in Denver. sition of the shares of Bank. Both Empire and NFU were acquired after June Notice of the application, affording opportunity 30, 1968, and under the provisions of § 4 of the for interested persons to submit comments and Act, Applicant's interests in each must be reduced views, has been given in accordance with § 3(b) to less than 5 per cent of the outstanding voting of the Act. The time for filing comments and views shares by December 31, 1980, unless the Board has expired, and the Board has considered the approves retention of such interests prior to that application and all comments received in light of date. In its consideration of the instant application, the factors set forth in § 3(c) of the Act (12 U.S.C. the Board reviewed each of Applicant's nonbank- 1842(c)). ing activities in the Denver SMSA to determine Applicant controls the Central Bank and Trust whether acquisition of Bank would have an anti- Company, Denver, Colorado ("Central Bank"), competitive or other adverse effect on the operawhose deposits of $331 million represent 5.6 per tions of those companies, or vice versa. cent of the total commercial bank deposits held Empire, with total assets of $252 million, ranks by Colorado banks and rank it as the fifth largest as the fourth largest savings and loan association banking organization in the State. (All banking in the Denver banking market and in Colorado. data are as of December 31, 1972, and reflect Empire's headquarters and 8 of its 12 branches acquisitions and formations approved through Au- are located within the Denver SMSA. In terms gust 31, 1973.) The acquisition of Bank (deposits of time and savings deposits, Empire accounts for of $26 million) would increase Applicant's share approximately $170 million, or 5.3 per cent of of State deposits to 6.0 per cent and would not the total time and savings deposits held by all 63 alter its rank among banking organizations in Col- commercial banks and 17 thrift institutions in the orado. market. Combined with Central Bank's time and Applicant is a diversified corporation engaged savings deposits of approximately $150 million, in three principal areas of activity: the manufacture and sale of musical instruments; the manufacture and sale of electronic components, and the provi- M973 Federal Reserve BULLETIN 536. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 751 Applicant controls 10 per cent of all such deposits deposits and 14.5 per cent of its savings deposits in the market. Acquisition of Bank would add from Bank's service area. Approximately 3 per $14.9 million, or 0.5 per cent to the total time cent of Central Bank's installment loans and 1.6 and savings deposits held by Applicant. In the area per cent of its residential mortgage loans are also of mortgage lending, Central Bank and Empire derived from Bank's service area. However, Bank combined originated approximately $76 million in has not been competing actively for loans or demortgages secured by real estate in 1972, of which posits from its primary service area due to its $60.6 million2 were loans secured by 1-4 family limited capital position. Thus, it appears that residences. This represented approximately 8 per whatever significance may be accorded the overlap cent of all mortgage loan originations on 1-4 between Bank's primary service area and that of family homes in the Denver SMS A in 1972. Ac- Central Bank is attenuated by Bank's inability to quisition of Bank, whose mortgage originations on compete aggressively for loans and deposits as 1-4 family homes totalled $30,000 in 1972, or less well as the activity of major downtown competithan 0.1 per cent of all such loans in the Denver tors in the northwest section of Denver. Accordmarket, would not add appreciably to Applicant's ingly, it does not appear that Applicant's acquisipresent market share, nor have an adverse interface tion of Bank would result in any significant adverse with the present activities of Applicant. effects on competition. NFU is an insurance holding company which A total of 63 banks compete in the Denver owns National Farmers Union Life Insurance banking market, with the top three banking orga- Company ($29.4 million in assets), National nizations controlling 52.5 per cent of total I.P.C. Farmers Union Property and Casualty Company market deposits. Six of the ten largest banking ($26.2 million in assets), and National Farmers organizations in the market are multibank holding Union Standard Insurance ($2.2 million in assets). companies and control over one-third of the area NFU's life insurance company is one of 462 life banks and 71 per cent of the area total I.P.C. insurance companies operating in the State of deposits. Applicant's one bank, Central Bank, is Colorado. It had $24.6 million of ordinary life the fourth largest banking organization in this insurance (including group life) in force as of market with 8.5 per cent of area total I.P.C. December 31, 1971, representing but 0.2 per cent deposits. However, the deposits of the top three of all such insurance in force in Colorado. The banking organizations are 2.4, 2.1, and 1.5 times other two insurance companies owned by NFU are the deposit size of Central Bank. It does not appear both relatively small multiple line insurance com- that consummation of the proposed acquisition panies in the State.3 Acquisition of Bank would would improve Applicant's market position matenot, in the Board's judgment, have an adverse rially nor lead to an undue concentration of bankinterface with, nor increase to any measurable ing resources. Rather, approval of the proposed extent, Applicant's present insurance underwriting transaction, and expansion of Applicant from a business in the Denver banking market4 or in the one-bank to a multibank holding company, should State of Colorado. provide a base from which Applicant can grow Bank (deposits of $26 million) is the third into a more effective competitor in the Denver largest of four competing banks in or near its banking market and with the major holding comprimary service area in the northwest section of panies having statewide operations. Denver and is approximately three miles from There is no evidence indicating that the major Central Bank, located in downtown Denver. It banking needs of the Denver SMSA are not being appears that direct competition between Central met by the existing institutions. However, Bank's Bank and Bank is mitigated by industrial conges- inadequate capital structure has not permitted it tion between the two institutions, although each to seek new business. It has not been active in competes to a limited degree for demand and time mortgage lending since 1970; virtually all of its deposits and for certain loans. Central Bank investments consist of U.S. Treasury or Federal derives approximately 12 per cent of its demand agency obligations. Bank received temporary assistance through the formation of Nordenco in 2Total originations of $60.6 million were divided between 1970, when its parent purchased Bank's $1.5 Central Bank's originations of $21.2 million and those of million capital debenture. Despite these efforts, Empire, which amounted to $39.4 million. Bank's capital position remains inadequate and its 3The companies' policies, as those of the National Farmers financial condition is unsatisfactory. Applicant has Union Life Insurance Company, are concentrated in the States committed itself to inject $2 million in equity of Montana, Minnesota, North Dakota, and South Dakota. capital in Bank which should permit Bank to 4Consisting of Adams, Arapahoe, Denver and Jefferson Counties. compete more actively in its service area for de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 FEDERAL RESERVE BULLETIN • OCTOBER 1973 posits and loans. Thus, banking factors, as well between Applicant's banking and nonbanking as considerations relating to the convenience and subsidiaries which the above-stated undertakings needs of the communities to be served, lend strong impose, and the volume, scope, and nature of weight for approval of the application. In addition, Applicant's activities, it appears that acquisition the financial and managerial resources of Applicant of Bank would not lead to conflicts of interest, and its subsidiaries, including those of Central unfair competition, unsound banking practices, or Bank, appear generally satisfactory. Applicant an undue concentration of resources. Nor would proposes to inject an additional $3 million in consummation of the proposal cause an adverse equity capital in Central Bank. The Board con- interface between the grandfathered activities of cludes that the future prospects of all appear fa- Applicant and the Bank to be acquired. The provorable. posal does not, in the Board's judgment, add In its consideraion of this matter, the Board significantly to Applicant's share of demand dehas taken into account certain undertakings made posits, time and savings deposits, mortgage lendby Applicant to assure the Board that its operations ing or insurance business in the Denver banking as a multi-bank holding company, should this market or in the State of Colorado. It is the Board's application be approved, will not be misused to judgment that the proposed transaction would be the detriment of its competitors, or to customers in the public interest and that the application or suppliers of its nonbanking subsidiaries. These should be approved. undertakings are: On the basis of all relevant facts contained in 1. Neither Baldwin nor any of its nonbank the record and in light of the factors set forth in affiliates will borrow money from or sell loans to § 3(c) of the Act, the application is approved for a Baldwin bank. the reasons summarized above. The transaction 2. No Baldwin bank will lend money to, pur- shall not be consummated (a) before the thirtieth chase loans from or accept deposits from any calendar day following the effective date of this person known by the bank to be a customer or Order or (b) later than three months after the supplier of Baldwin or of a Baldwin nonbank effective date of this Order unless such period is subsidiary. extended for good cause by the Board or by the 3. No Baldwin bank will deny credit to a cre- Federal Reserve Bank of Kansas City pursuant to ditworthy piano or organ manufacturer or dealer. delegated authority. 4. Baldwin and its nonbank subsidiaries will not By order of the Board of Governors, effective borrow from unaffiliated banks under terms which September 28, 1973. require maintenance by Baldwin banks of unusual Voting for this action: Vice Chairman Mitchell and Goverbalances with the lending institution. nors Daane, Sheehan, Bucher, and Holland. Voting against 5. Baldwin banks will not, in connection with this action: Governor Brimmer. Absent and not voting: Chairman Burns. lending transactions, sell credit life, health or accident policies, homeowners insurance, auto- (Signed) CHESTER B. FELDBERG, mobile insurance, or any other kind of insurance [SEAL] Secretary of the Board. policy issued by an insurance company which is a Baldwin affiliate. All such policies will be those D. H. BALDWIN COMPANY, of unaffiliated insurance companies. CINCINNATI, OHIO 6. Baldwin banks will not sell loans (including ORDER APPROVING ACQUISITION OF BANKS AND but not limited to real estate loans) to Baldwin MERGER WITH BANK HOLDING COMPANIES or any of its nonbank subsidiaries, except for loans which have been criticized by an examining D. H. Baldwin Company, Cincinnati, Ohio, a agency. bank holding company within the meaning of the 7. Baldwin and its subsidiaries will not make Bank Holding Company Act, has applied for the any charges to the banks of fees of management. Board's approval under § 3(a)(3) of the Act (12 8. Fees charged the banks for data processing, U.S.C. 1842(a)(3)) to acquire direct or indirect audit, rent and other payments from the banks to ownership of a majority of the voting shares of Baldwin and its subsidiaries will be at rates cus- (1) First National Bank of Grand Junction, Grand tomary in arms length transactions. Junction, Colorado, (2) First National Bank of 9. No transaction which would constitute a Glen wood Springs, Glenwood Springs, Colorado, violation of section 106 of the Bank Holding (3) First National Bank in Aspen, Aspen, Colo- Company Amendments of 1970 shall be permitted rado, and (4) First National Bank North, Grand to occur. Junction, Colorado. At the same time, Applicant Given the strictures on intercorporate transactions has applied for the Board's approval under § Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 753 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to merge in this market ranks as the twentieth largest bankwith First Western Slope Corporation, Grand ing organization in the State and is presently under Junction, Colorado ("FWS"), a registered bank contract agreement for purchase by a Colorado holding company owning approximately 56 per bank holding company. The third largest bank in cent of the outstanding shares of First National the market is controlled by the second largest Bank of Grand Junction, and 20 per cent of the banking organization in Colorado, while two of outstanding shares of First National Bank in the area banks are rural banks located 10 and 12 Aspen; and to acquire a majority of the voting miles, respectively, from Grand Junction. Grand shares of First McKinley Corporation, Glenwood Junction Bank is located approximately 250 miles Springs, Colorado ("FMC"), a registered bank west of Denver in the Western Slope area of holding company owning 50.8 per cent of the Colorado, and little competition exists between it outstanding shares of First National Bank of and Applicant's two Denver-based banks. As of Glenwood Springs and 20 per cent of the out- early 1973, Central Bank derived only 2.5 per cent standing shares of First National Bank in Aspen. of its demand deposits and less than 1 per cent The proposed merger with FWS and the proposed of its savings deposits from the Grand Junction acquisition of FMC are treated herein as the area, while North Denver Bank derived less than proposed acquisition of shares of First National $300 in both demand and savings deposits from Bank of Grand Junction, First National Bank of the Grand Junction area. Glenwood Springs, and First National Bank in Applicant's two nonbanking institutions based Aspen. in Colorado, Empire Savings and Loan Associa- Notice of receipt of the applications, affording tion ("Empire") and National Farmers Union an opportunity for interested persons to submit Service Corporation ("NFU"), both located in comments and views, has been given in accor- Denver, offer but minimal competition to either dance with § 3(b) of the Act. The time for filing Grand Junction Bank or to the commercial banks comments and views has expired. The Board has in Mesa County. As of February 28, 1973, Empire considered the applications and all comments re- held only $18,000 in mortgage loans from Mesa ceived in the light of the factors set forth in § County and derived only $47,000 in time deposits 3(c) of the Act (12 U.S.C. 1842(c)), and finds from the Grand Junction area. NFU's insurance that: companies held but two loans in Mesa County, Applicant controls the Central Bank and Trust totaling $120,000. The Board concludes that con- Company, Denver, Colorado ("Central Bank"), summation of the proposed acquisition would not and North Denver Bank of Denver, Denver, Col- result in the elimination of substantial existing orado ("North Denver Bank"),1 whose combined competition between Applicant's banking and deposits of $357 million represent 6.0 per cent nonbanking financial subsidiaries and Grand Juncof the total commercial bank deposits held by tion Bank. It does not appear that Applicant would Colorado banks, and rank it as the fifth largest gain a dominant market position through the banking organization in the State. (All banking proposed acquisition, as total deposits of the secdata are as of December 31, 1972, and reflect ond largest bank in the market are only $2 million acquisitions and formations approved through Au- less than those of Grand Junction Bank. In addigust 31, 1973.) The acquisition of First National tion, the annual average growth rate of Grand Bank in Grand Junction (deposits of $41 million), Junction Bank's IPC deposits between 1967 and First National Bank of Glenwood Springs (deposits 1972 was less than that of either the second or of $33 million), First National Bank in Aspen third largest area banks. (deposits of $11 million), and First National Bank Given the slow growth of the Grand Junction North (deposits of $1 million) would increase economy, it appears unlikely that Applicant might Applicant's share of State deposits to 7.47 per cent enter the Grand Junction market de novo or and its rank among banking organizations in Col- through acquisition of a smaller bank. The popuorado would remain unchanged. lation per banking office for Grand Junction (5,- First National Bank of Grand Junction ("Grand 042) is well below the State average (9,046). Junction Bank") is the largest of six banks in the Although Empire can branch anywhere in Colo- Grand Junction banking market (approximated by rado,2 it does not appear that consummation of Mesa County), and the eighteenth largest banking organization in Colorado. The second largest bank 2Under the provisions of § 4 of the Act, Applicant's interests in Empire, as well as NFU, must be reduced to less than 5 1 Board approval of D. H. Baldwin Company's acquisition per cent of the outstanding voting shares by December 31, of North Denver Bank was granted in a companion Order 1980. (See Board determination of June 14, 1973; 1973 Federal issued this same date. Reserve BULLETIN 536). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN • OCTOBER 1973 the proposal would result in the elimination of approximately 1.7 per cent of its demand deposits substantial future competition between any of Ap- and 1.8 per cent of its commercial loans from the plicant's banking or nonbanking subsidiaries and Denver SMSA. Central Bank has a moderate Grand Junction Bank. amount of commercial loans from Aspen Bank's First National Bank of Glenwood Springs service area attributable both to its correspondent ("Glenwood Springs Bank") is the larger of two business and the heavy demand from Denver parbanks in Glenwood Springs and the largest of four ties for loanable funds to develop the Aspen area. banks in its service area.3 The competing bank The Board concludes that approval of the proposed in Glenwood Springs is a subsidiary of another acquisition would not eliminate any significant bank holding company and not available for ac- competition between Aspen Bank and Applicant's quisition. Acquisition of a bank in Rifle or Car- banking or nonbanking subsidiaries. Similarly, bondale, while within the service area of Glen- consummation of the proposed acquisition would wood Springs Bank, would not allow Applicant eliminate little significant competition with Glento be an effective competitor in the Glenwood wood Springs Bank inasmuch as Aspen Bank Springs market. Applicant's present banking sub- derives only 1 per cent of its demand deposits and sidiaries, located approximately 170 miles distant 0.8 per cent of its savings deposits from the service in Denver, offer but minimal competition to Glen- area of Glenwood Springs Bank, while Glenwood wood Springs Bank. Central Bank derives ap- Springs Bank derives approximately 3.6 per cent proximately $80,000 in demand and savings de- of its demand deposits and 5.6 per cent of its posits from the service area of Glenwood Springs savings deposits from Aspen Bank's primary Bank, while Empire derives approximately $59,- service area. 000 of savings deposits from this area. It is esti- First National Bank North ("North Bank") is mated that Glenwood Springs Bank derives ap- the smallest of six banks in the Grand Junction proximately 1.2 per cent of its demand and savings banking market, and derives no deposits or loans deposits from the Denver SMSA. The Board con- from the Denver SMSA. A close affiliation exists cludes that consummation of the proposed acqui- between North Bank and Grand Junction Bank by sition of Glenwood Springs Bank would not elim- reason of the two institution's common shareinate any significant direct competition between holders , and it is unlikely that this affiliation would Applicant's banking or nonbanking subsidiaries be severed in the near future. Moreover, absent and Glenwood Springs Bank. its affiliation, the prospects for profitable opera- Moreover, consummation of the proposal would tions of an independent North Bank appear to be not eliminate any significant direct competition poor. North Bank obtained its charter in May with Grand Junction Bank, located 90 miles dis- 1972, and did not open for business until Detant, or with First National Bank in Aspen, located cember of that year. It appears that North Bank's approximately 40 miles southeast of Glenwood profitability and competitive impact in the market Springs. These distances effectively preclude the area is dependent upon a significant amount of banks in Grand Junction and Aspen as convenient support from a larger banking organization. The alternatives to residents in Glenwood Springs. Board is satisfied in the instant application that Inasmuch as the Western Slope is not a single the charter of Norh Bank was not sought by its banking market and each of the banks proposed organizers for speculative purposes, and that no to be acquired are located in separate banking profit will be derived from the owners' investment markets, the Board concludes that consummation in North Bank's stock. The Board concludes that of the proposed acquisition of Glenwood Springs consummation of the proposed acquisition of Bank would not eliminate significant future com- North Bank will eliminate no significant existing petition between Applicant's banking or nonbank- competition nor foreclose substantial future coming subsidiaries and Glenwood Springs Bank. petition between any of Applicant's banking or First National Bank in Aspen ("Aspen Bank") nonbanking subsidiaries and North Bank. The is the smaller of two banks in the Aspen banking Board further concludes that competitive considmarket (approximated by Pitkin County). The erations are consistent with approval for each of larger bank is an affiliate of a banking chain and the foregoing applications. unavailable for acquisition. Aspen Bank derives There is no evidence indicating that the major banking needs of the areas served by Grand Junction Bank, Glenwood Springs Bank, Aspen Bank, or North Bank are not being met by existing Approximated by the City of Glenwood Springs and its institutions serving these markets. However, upon environs, and including the communities of Newcastle, Silt, Rifle, Carbondale and Basalt. consummation of these proposed acquisitions, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 755 Applicant should be able to provide more effective My views with respect to the continuation of competition to the major bank holding companies D. H. Baldwin Company's nonbanking activities in the State as it broadens and improves its banking have been previously set forth in my dissenting services throughout Colorado. Each of the four statement to the Board's determination of June 14, banks to be acquired are likely to benefit from their 1973, wherein all of Applicant's activities relating ability to draw upon a pool of qualified manpower to the musical instrument business were accorded for their management. In addition, each may be indefinite grandfather privileges (1973 Federal expected to benefit from the provision of internal Reserve BULLETIN 536). I have held all along that audits and computerized customer information the opportunities for holding companies to engage programs. Additions to the capital of Grand Junc- in nonbanking activities authorized by Congress tion Bank should insure the continuation of this through the 1970 Amendments to the Act do not Bank's competitive posture in the community. In give Applicant the privilege to expand as a multiboth the Glenwood Springs and Aspen area, Ap- bank holding company and retain, in the process, plicant may be expected to meet credit demands its sizable nonbanking interests. I would require through participation loans. Applicant proposes to Applicant to decide now whether it wants to be assist both Glenwood Springs Bank and Aspen a bank holding company—and thus limit itself to Bank in the provision of trust services which are activities that the Board has determined to be presently unavailable. Considerations relating to closely related to banking—or whether it wants banking factors, as well as to the convenience and to be in the manufacturing business—and thus needs of the communities to be served, are re- cease to be a bank holding company. garded as being consistent with and lend some The anticompetitive nature of these proposals weight toward approval of the applications. It is can be seen most clearly when one notes the the Board's judgment that the proposed transac- presence of Empire Savings and Loan Association tions would be in the public interest and that the ("Empire") as an affiliate of Applicant. Ownerapplications should be approved. ship of Empire confers upon D. H. Baldwin Com- On the basis of the record, the applications are pany a significant advantage not enjoyed by any approved for the reasons summarized above. The other Colorado bank holding company. It is relatransactions shall not be consummated (a) before tively easy under Colorado law for a savings and the thirtieth calendar day following the effective loan association to establish branches wherever it date of this Order or (b) later than three months chooses. However, commercial banks are not alafter the effective date of this Order, unless such lowed to establish even a single branch in Coloperiod is extended for good cause by the Board rado. Thus, Applicant's continued operation of or by the Federal Reserve Bank of Kansas City Empire creates and maintains unfair competition pursuant to delegated authority. for commercial banks in the Denver SMSA as well By order of the Board of Governors, effective as for other multibank holding companies compet- September 28, 1973. ing on a Statewide basis. Applicant's savings and loan affiliate can offer higher rates on savings Voting for this action: Vice Chairman Mitchell and Goveraccounts than commercial banks can and thus nors Daane, Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Chair- attract many savers away from its commercial man Burns. bank competitors. Moreover, as a Colorado sav- (Signed) CHESTER B. FELDBERG, ings and loan association, Empire is permitted to [SEAL] Secretary of the Board. own and acquire raw land and engage in the ownership and development of real estate. In fact, Applicant reported in its 1972 Annual Report that DISSENTING STATEMENT OF Empire established ESL Corp., a wholly-owned GOVERNOR BRIMMER service corporation involved in both real estate I would deny each of the proposals through development and equity ownership. This activity which D. H. Baldwin Company seeks to acquire is specifically prohibited under the Board's Regufive additional banks in Colorado. As a manufac- lation Y for bank holding companies. In my judgturing conglomerate, Applicant is now a one-bank ment (and the Board majority shares this view), holding company possessing substantial financial real estate development is not an appropriate acresources in the Denver SMS A. Approval of each tivity for banks or bank holding companies. Conof these proposed acquisitions will add unduly to sequently, it should be denied to any subsidiary those resources in the Denver banking market. As of a bank holding company, irrespective of the a multibank holding company, its influence would fact that such subsidiary is a savings and loan be extended throughout Colorado as well. association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN • OCTOBER 1973 With respect to Applicant's acquisition of North FIRST ALABAMA BANCSHARES, INC., Denver Bank, there are additional anticompetitive BIRMINGHAM, ALABAMA factors upon which the application should be de- ORDER APPROVING ACQUISITION OF BANK nied. As the majority correctly notes, Central Bank derives 12 per cent of its demand deposits and First Alabama Bancshares, Inc., Birmingham, 14.5 per cent of its savings deposits from Bank's Alabama, a bank holding company within the service area. The balances involved are significant meaning of the Bank Holding Company Act, has when compared to those of Bank in that area. In applied for the Board's approval under § 3(a)(3) Bank's primary service area, Central Bank derives of the Act (12 U.S.C. 1842(a)(3)) to acquire the $7.21 million of savings deposits, $4.63 million successor by merger to First National Bank of of certificates of deposit, and $6.74 million of Athens, Athens, Alabama ("Bank"). The bank demand deposits. Bank, on the other hand, origi- into which Bank is to be merged has no signifinates $8.99 million of savings deposits, $0.99 cance except as a means to facilitate the acquisition million of certificates of deposit, and $3.9 million of the voting shares of Bank. Accordingly, the of demand deposits over the same area. Thus, the proposed acquisition of shares of the successor competition existing between the two institutions organization is treated herein as the proposed acis substantial, and I believe the Board should deny quisition of the shares of Bank. the application on this adverse factor alone. Notice of the application affording opportunity Moreover, Central Bank has the potential to in- for interested persons to submit comments and crease this competition in the future. Its size and views has been given in accordance with § 3(b) resource strength give it the capability to increase of the Act. The time for filing comments and views the scope of its operations, while its proximity and has expired, and the Board has considered the interest in the area serviced by Bank indicate application and all comments received in light of that—in the absence of this affiliation—it is a the factors set forth in § 3(c) of the Act (12 U.S.C. reasonable likelihood that such expansion will 1842(c)). occur within Bank's service area. The Denver Applicant controls six banks with aggregate banking market is already highly concentrated. I deposits of $702.3 million, representing about would not enhance this concentration through ap- 10.5 per cent of total deposits of commercial banks proval of the proposed acquisition. in Alabama.1 Acquisition of Bank (deposits of Nor do I find North Denver Bank to be a failing $25.6 million) would not significantly increase the bank. While it may be floundering at the present concentration of banking resources in the State. time, its financial difficulties (which are not Bank is the largest of two banking organizations serious) can best be remedied through the bank located in Limestone County, which is the relevant supervisory process. In my view, it is not proper banking market, with approximately 60 per cent to use the Bank Holding Company Act as a means of the market deposits. However, the smaller to acquire banks simply because they are in finan- banking organization in the market is a branch of cial distress. Thus, for reasons more fully stated a bank which is a subsidiary of one of the largest in my dissent to the application of State Street holding companies in Alabama. It is unlikely that Boston Financial Corporation to acquire Union Applicant's acquisition of Bank would enable it National Bank (1973 Federal Reserve BULLETIN to obtain a dominant position in the market in view 526), I would look to other bank supervisory of this affiliation. Applicant's closest banking subagencies to remedy North Denver's problems. If sidiary is located to the east in Huntsville, about it were ultimately necessary to permit its acquisi- twenty miles distant. Though some residents of tion, it should be done by a means which would Limestone County commute to work in Huntsville not have such anticompetitive results. and the surrounding area, there seems to be little Since I believe D. H. Baldwin Company should overlap between the two areas for deposits and not be allowed to expand from a one-bank to a loans. Consummation of this transaction would not multibank holding company until it has determined appear to have a substantially adverse effect on the route its further expansion should take—as a existing competition. Nor does the Board find that manufacturer or as a bank holding company—I there would be a substantially adverse effect on would not permit any additional bank acquisitions future competition caused by Applicant's acquisifor this Applicant. Therefore, my dissent herein applies equally to the acquisition of the additional banks in Colorado for which Board approval was 1A11 banking data are as of December 31, 1972, and reflect holding company formations and acquisitions by the Board granted today. through July 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 757 tion of Bank, particularly in light of Alabama's incident to the subject proposal, contains a covelaws relating to branching. Applicant also has a nant not to compete which, by its terms, prohibits mortgage banking subsidiary in Huntsville. How- Bank's present directors from entering the banking ever, this subsidiary has not been active in Lime- business in Athens for a period of five years from stone County, making only one loan there during the effective date of the proposed acquisition. In the entire year of 1972. Consummation of the my view such covenants necessarily inhibit comtransaction would not eliminate substantial exist- petition and should not be sanctioned by the ing or future competition in mortgage banking. Board. The reasons underlying this conclusion are The Board concludes that competitive consid- set forth in detail in a Dissenting Statement, in erations of the application are consistent with which I was joined by Governor Brimmer, in the approval. matter of Applicant's proposed acquisition of Cit- The financial condition, managerial resources, izens Bank of Guntersville which was approved and future prospects of Applicant, its subsidiary by Board action of this date. banks, and Bank are satisfactory. Affiliation with Applicant should provide Bank with greater man- FIRST ALABAMA BANCSHARES, INC., agement depth and continuity, and this factor lends BIRMINGHAM, ALABAMA some support for approval of the application. Considerations relating to the convenience and ORDER APPROVING ACQUISITION OF BANK needs of the community to be served also lend First Alabama Bancshares, Inc., Birmingham, support for approval of the application since Ap- Alabama, a bank holding company within the plicant will enable Bank to provide an increased meaning of the Bank Holding Company Act, has range of services. In its consideration of Appli- applied for the Board's approval under § 3(a)(3) cant's proposal, the Board has noted covenants not of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 to compete given Applicant by Bank's Directors. per cent or more of the voting shares of the The covenants bind the Directors not to enter the successor by merger to Citizens Bank of Guntersbanking business in the city of Athens for a period ville, Guntersville, Alabama. The bank into which of five years. The Board finds that these provisions Bank is to be merged has no significance except are reasonable and do not constitute a bar to as a means to facilitate the acquisition of the voting approval of the application. The Board finds that shares of Bank. Accordingly, the proposed acquiconsummation of the transaction is in the public sition of shares of the successor organization is interest. treated herein as the proposed acquisition of the On the basis of the record the Application is shares of Bank. approved for the reasons summarized above. The Notice of the application, affording opportunity transaction shall not be consummated (a) before for interested persons to submit comments and the thirtieth calendar date following the effective views, has been given in accordance with § 3(b) date of this Order or (b) later than three months of the Act. The time for filing comments and views after the effective date of this Order unless such has expired, and none has been timely received. period is extended for good cause by the Board The Board has considered the application in light or by the Federal Reserve Bank of Atlanta pursuant of the factors set forth in § 3(c) of the Act (12 to delegated authority. U.S.C. 1842(c)). By order of the Board of Governors, effective Applicant, the second largest banking organi- September 21, 1973. zation in Alabama, controls six banks with aggregate deposits of $702.3 million, which represent Voting for this action: Chairman Burns and Governors 10.3 per cent of total deposits in commercial banks Daane, Bucher, and Holland. Voting against this action: Gov- in the State.1 Consummation of the proposed ernor Mitchell. Absent and not voting: Governors Brimmer and Sheehan. transaction would add .20 percentage points to Applicant's share of total commercial bank depos- (Signed) CHESTER B. FELDBERG, its in Alabama and would not change Applicant's [SEAL] Secretary of the Board. ranking among banking organizations in the State. Bank, the fifth largest of nine banks in the DISSENTING STATEMENT OF Marshall County banking market (approximated GOVERNOR MITCHELL by Marshall County, Alabama), controls 11.3 per I would disapprove the application by First Unless otherwise indicated, banking data are as of De- Alabama Bancshares, Inc., to acquire First Nacember 31, 1972, adjusted to reflect holding company acquisitional Bank of Athens. A Plan of Reorganization, tions and formations approved through July 19, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN • OCTOBER 1973 cent of total deposits in commercial banks in that DISSENTING STATEMENT OF market.2 Applicant's nearest banking subsidiary is GOVERNORS MITCHELL AND BRIMMER located at Huntsville, Alabama, approximately 40 We would disapprove the application by First miles from Bank. No meaningful competition Alabama Bancshares, Inc., to acquire Citizens exists between Bank and any of Applicant's Bank of Guntersville. A Plan of Reorganization present subsidiaries; nor does it appear likely that incident to subject proposal contains a covenant such competition will develop in the future, in not to compete which, by its terms, prohibits view of the distances involved, the number of Bank's present directors from entering the banking intervening banks, and Alabama's restrictive business in Guntersville for a period of five years branching laws. In addition, Marshall County's from the effective date of the proposed acquisition. relatively low population per bank office ratio In our view, such covenants necessarily inhibit indicates that de novo entry into the Marshall competition and should not be sanctioned by the County banking market is not a likely prospect. Board. In its consideration of Applicant's proposal the The purpose and effect of the covenant in this Board has considered the question of whether a case is to preclude the possibility that the restricted covenant not to compete contained in a proposed individuals would provide support for an alterna- Plan of Reorganization between Applicant and the tive source of commercial banking services in present directors of Bank is contrary to the stand- Guntersville in the near future. Such consequence ards respecting competition and the public interest is inherently anticompetitive. Our conclusion in which the Board is required to consider under the this respect is premised upon the limitations on Bank Holding Company Act. Having reviewed entry into commercial banking imposed by laws subject covenant and all facts of record, the Board and regulations administered by Federal and State finds that the covenant is consistent with such banking authorities. Commercial banking is a regstandards; and its presence in the record does not ulated industry in which statutory limitations on require denial of the application. entry are imposed to achieve certain public interest The financial and managerial resources and fuobjectives. These limitations, which are impleture prospects of Applicant, its subsidiaries, and mented principally through State and Federal Bank are generally satisfactory. Considerations chartering requirements, themselves inhibit comrelating to the convenience and needs of the competition. They influence fundamentally the strucmunity are consistent with approval. It is the ture and operation of commercial banking markets Board's judgment that consummation of the and temper significantly the force of those arguproposed transaction would be in the public interments traditionally advanced in the courts to justify est, and that the application should be approved. covenants in cases involving business relationships On the basis of the record, the application is where there are no regulatory barriers to entry. approved for the reasons summarized above. The A bank holding company offeror, whose bank transaction shall not be consummated (a) before purchase proposal contains such a covenant would the thirtieth calendar day following the effective have difficulty in any case in establishing to our date of this Order or (b) later than three months satisfaction that the anticompetitive effects of such after the effective date of this Order, unless such a covenant "are clearly outweighed in the public period is extended for good cause by the Board, interest by the probable effect of the transaction or by the Federal Reserve Bank of Atlanta pursuant in meeting the convenience and needs of the comto delegated authority. munity to be served." It is our view that the record By order of the Board of Governors, effective in the instant case fails to support the Board's September 21, 1973. conclusion that the subject covenant "is consistent with such standards." We would deny the appli- Voting for this action: Governors Daane, Sheehan, Bucher, and Holland. Voting against this action: Vice Chairman cation. Mitchell and Governor Brimmer. Absent and not voting: Chairman Burns. FIRST NATIONAL BOSTON CORPORATION, (Signed) CHESTER B. FELDBERG BOSTON, MASSACHUSETTS [SEAL] Secretary of the Board. ORDER APPROVING ACQUISITION OF BANK First National Boston Corporation, Boston, Massachusetts, a bank holding company within the meaning of the Bank Holding Company Act, has 2Data as of June 30, 1972. applied for the Board's approval under § 3(a)(3) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 759 of the Act (12 U.S.C. 1842(a)(3)) to acquire all The financial and managerial resources and fuof the voting shares (exclusive of directors' quali- ture prospects of Applicant and its subsidiary bank fying shares) of the successor by merger to the are satisfactory and consistent with approval. Bank Holyoke National Bank, Holyoke, Massachusetts faces a management succession problem. It is ("Bank"). The bank into which Bank is to be expected that Applicant will take steps to resolve merged has no significance except as a means to Bank's management succession problem and this facilitate the acquisition of the voting shares of factor lends some weight toward approval of the Bank. Accordingly, the proposed acquisition of application. Other considerations with respect to shares of the successor organization is treated the financial and managerial resources and future herein as the proposed acquisition of the shares prospects of Bank are consistent with approval. of Bank. Applicant proposes to offer through Bank new Notice of the application, affording opportunity and improved services, including increased interfor interested persons to submit comments and est rates on savings deposits, additional types of views, has been given in accordance with § 3(b) consumer installment loans, and automated payroll of the Act. The time for filing comments and views services. Since some of the proposed new services has expired, and the Board has considered the are not currently available in Holyoke, consumapplication and all comments received in light of mation of this proposal will increase the conventhe factors set forth in § 3(c) of the Act (12 U.S.C. ience of Holyoke residents. Accordingly, consid- 1842(c)). erations relating to the convenience and needs of Applicant, the largest banking organization and the communities to be served are consistent with bank holding company in Massachusetts, controls and lend some weight toward approval of the one bank with aggregate deposits of $2.7 billion application. It is the Board's judgment that the representing about 23 per cent of total deposits transaction is in the public interest and should be in commercial banks in the State.1 Applicant's approved. acquisition of Bank (deposits of $26.9 million) On the basis of the record, the application is would increase its share of Statewide deposits by approved for the reasons summarized above. The .2 percentage points and would not result in any transaction shall not be consummated (a) before significant increase in the concentration of banking the thirtieth calendar day following the effective resources in Massachusetts.2 date of this Order or (b) later than three months Bank is the fourth largest of fifteen commercial after the effective date of this Order, unless such banking organizations competing in the Spring- period is extended for good cause by the Board field-Chicopee-Holyoke banking market (which is or by the Federal Reserve Bank of Boston pursuant approximated by the Springfield SMS A), control- to delegated authority. ling 4 per cent of market deposits. Applicant's By order of the Board of Governors, effective closest existing subsidiary banking office is located September 4, 1973. more than 90 miles from Bank, and it appears that Voting for this action: Chairman Burns and Governors there is no significant existing competition between Brimmer, Sheehan, Bucher, and Holland. Absent and not Bank and any of Applicant's subsidiary banking voting: Governors Mitchell and Daane. offices. Due to the distance separating bank and (Signed) THEODORE E. ALLISON Applicant's existing subsidiary banking offices and [SEAL] Assistant Secretary of the Board. Massachusetts' restrictive branching laws, it appears unlikely that any significant competition FIRST NATIONAL BOSTON CORPORATION, would develop between the institutions in the BOSTON, MASSACHUSETTS future. Additionally, the three largest banks in the market control more than 76 per cent of such ORDER APPROVING ACQUISITION OF BANKS deposits and consummation of the proposal would First National Boston Corporation, Boston, have a procompetitive effect by enhancing Bank's Massachusetts, a bank holding company within the ability to compete with the larger institutions. meaning of the Bank Holding Company Act, has applied for the Board's approval under § 3(a)(3) banking data are as of June 30, 1972, adjusted to reflect of the Act (12 U.S.C. 1842(a)(3)) to acquire all holding company formations and acquisitions approved through of the voting shares of the following banks located July 31, 1973. in Massachusetts: (1) First Bank and Trust Com- 2By Order of this date, the Board approved Applicant's pany of Wellesley, Wellesley (' 'Wellesley acquisition of both First Bank and Trust Company of Wellesley Bank"); and (2) Burlington Bank and Trust Comand Burlington Bank and Trust Company, which together control 0.2 percentage points of Statewide deposits. pany, Burlington ("Burlington Bank"). 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760 FEDERAL RESERVE BULLETIN • OCTOBER 1973 Notice of the applications, affording opportunity Wellesley Bank nor Burlington Bank derives a for interested persons to submit comments and significant amount of their loans or deposits from views, has been given in accordance with § 3(b) First National's primary service area. of the Act. The time for filing comments and views Although First National is located in the same has expired, and none has been timely received. market as Wellesley Bank and Burlington Bank, The Board has considered the applications in light First National is restricted by State law from of the factors set forth in § 3(c) of the Act (12 branching into the County in which each Bank is U.S.C. 1842(c)). located. Several other independent banks are lo- Applicant, the largest banking organization and cated in both Wellesley Bank's and Burlington bank holding company in Massachusetts, controls Bank's service area and County, and it does not one bank with aggregate deposits of $2.7 billion, appear that Applicant's acquisition of either Bank representing about 23 per cent of total deposits would result in barriers to entry into those areas in commercial banks in the State.1 Consummation by other banking organizations. Further, it does of the two proposals would increase Applicant's not appear that Applicant's entry into either Bank's share of commercial bank deposits by .2 percent- market by an alternative acquisition of a small age points,2 and this would not result in a signifi- independent bank would present significantly difcant increase in the concentration of banking re- ferent competitive considerations. Although Apsources in the State. plicant has the financial and managerial resources Wellesley Bank (deposits of $8.6 million) and to enter either Wellesley Bank's or Burlington Burlington Bank (deposits of $12.8 million) are Bank's service area de novo, the Board views the the 58th and 46th largest of 69 commercial banks proposed acquisitions as "foothold" entries that in the Boston banking market, which is approxi- are tantamount to de novo entry in view of the mated by the Boston SMS A, and control, respec- small size of each Bank, both absolutely and tively, 0.1 and 0.2 per cent of market deposits. relatively. In addition, since Wellesley Bank is the Applicant's present subsidiary bank, the First Na- smallest bank in a service area where three banks tional Bank of Boston ("First National"), is lo- that are holding company subsidiaries control in cated in the Boston banking market, where it excess of 56 per cent of deposits, Applicant's controls 32.7 per cent of deposits in commercial acquisition of Wellesley Bank would likely inbanks. First National is located 10 miles from crease that Bank's competitive effectiveness. Sim- Wellesley Bank and 13 miles from Burlington ilarly, Burlington Bank controls less than 7 per Bank. Although Wellesley Bank and Burlington cent of deposits in an area where two banks that Bank are located in the same market as First are holding company subsidiaries control more National, it does not appear that a significant than 60 per cent of area deposits. Accordingly, amount of existing competition would be elimi- Applicant's acquisition of Burlington Bank would nated upon consummation of these proposals. This likely increase that Bank's ability to compete with conclusion is based, in part, upon the fact that the larger banks located in its area, particularly First National's banking business is largely in view of considerations relating to its financial wholesale in nature while the business of Welles- and managerial resources, discussed hereinafter. ley Bank and Burlington Bank, both single-office On balance, therefore, the Board finds that no banks, is a retail business. First National derives significant potential competition would be elimi- 74 per cent of its total deposits and 64 per cent nated upon consummation of these proposals. of its IPC demand deposits from accounts in excess The financial and managerial resources and fuof $100,000. First National derives less than 3.0 ture prospects of Applicant and First National are per cent, or approximately $48 million, of its total satisfactory and consistent with approval of the demand and savings deposits from Wellesley application. Wellesley Bank has experienced a Bank's primary service area. Similarly, First Na- significant growth in deposits in the past four tional derives 1.3 per cent, or about $24 million, years, yet its capital has declined. Accordingly, of its total demand and savings deposits from Applicant's assurance to provide Wellesley Bank Burlington Bank's primary service area. Neither with additional capital will enhance that Bank's financial resources and future prospects, and this consideration lends some weight toward approval. banking data are as of June 30, 1972, adjusted to reflect The financial and managerial resources and future holding company formations and acquisitions approved through July 31, 1973. prospects of Burlington Bank are considered to be 2By Order of this date, the Board approved Applicant's poor. Bank has experienced substantial loan losses acquisition of the successor by merger to the Holyoke National since 1970, its capital-to-assets ratio has declined Bank, Holyoke, Massachusetts, which controls 0.2 percentage and it is presently in need of capital. Further, in points of Statewide deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 761 view of Bank's difficulties, management is in need to ignore the adverse effects such acquisitions will of strengthening. Applicant proposes to increase have on both existing and potential competition Burlington Bank's capital by a minimum of and the resulting increase in deposit concentration $300,000 within six months of consummation and in an already highly concentrated market. to provide managerial strength to Burlington Bank. The majority states that First National does not The future prospects of Burlington Bank with compete with either Wellesley Bank or Burlington Applicant's assistance appear to be favorable, and Bank due to the wholesale nature of the former these considerations provide strong weight toward versus the retail nature of the latter. However, it approval of the application. is clear from the record that (with respect to several There is no evidence that any major banking categories of deposits under $20,000) First Naneeds of the areas served by Wellesley Bank or tional derives three to four times the volume of Burlington Bank are currently going unserved. deposits from Wellesley Bank's primary service However, Applicant proposes to offer, through area as does Wellesley Bank. Further, First Na- Wellesley Bank, investment management services tional had approximately $3.8 million in consumer for the small investor and revolving 48-month car installment loans under $20,000 from Wellesley loans which are new services not currently pro- Bank's primary service area whereas Wellesley vided in the area. Convenience and needs factors Bank had only $0.9 million in loans of that catewith respect to Wellesley Bank are consistent with gory from the same area. In Burlington Bank's and lend some weight toward approval. Applicant primary service area, First National derived $3.1 proposes to increase and improve the services million in deposits from business and individual currently offered by Burlington Bank in providing demand deposit accounts under $20,000, whereas overdraft checking, revolving 48-month car loans, Burlington Bank had $2.0 million from the same credit card and trust services. Updating Burlington category of accounts in the same area. These data Bank's services should make it more competitive amply demonstrate that Applicant's acquisition of and more responsive to the needs of its customers. either Wellesley Bank or Burlington Bank would These considerations provide weight toward ap- eliminate a significant amount of existing compeproval of the acquisition of Burlington Bank. It tition. is the Board's judgment that the proposed transac- It is clear that Applicant seeks to expand its tions are in the public interest and should be retail banking activity in both Norfolk and Midapproved. dlesex Counties. Until recently, Applicant con- On the basis of the record, the applications are sciously chose to emphasize large loans to major approved for the reasons summarized above. The corporations. Now it wants to compete more for transactions shall not be consummated (a) before consumer and small business loans. So the only the thirtieth calendar day following the effective real question concerns the way in which it can date of this Order or (b) later than three months enter these markets. Applicant is undoubtedly after the effective date of this Order, unless such preeminently capable of expanding by entering period is extended for good cause by the Board, such areas de novo. To permit the largest banking or by the Federal Reserve Bank of Boston pursuant organization in the State of Massachusetts to exto delegated authority. pand by acquisition of either Wellesley Bank or By order of the Board of Governors, effective Burlington Bank not only eliminates Applicant as September 4, 1973. a potential de novo entrant into these areas, but it also eliminates these two banks as possible Voting for this action: Chairman Burns and Governors vehicles for deconcentrating the already highly Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Governors Mitchell concentrated Boston market. Further, if the largest and Daane. banking organization in the market and the State is not required to expand de novo, it seems un- (Signed) THEODORE E. ALLISON likely any other banking organization will be so [SEAL] Assistant Secretary of the Board. limited. Accordingly, I believe that significant future competition will be eliminated by the DISSENTING STATEMENT OF Board's approval. GOVERNOR BRIMMER The Bank Holding Company Act requires the Board to deny any acquisition I would deny both applications. The Board has whose effect in any section of the country may be substantially today approved the acquisition by the dominant to lessen competition . . . unless it finds that the anticompetibanking organization in the Boston market and the tive effects of the proposed transaction are clearly outweighted in the public interest by the probable effect of the transaction State of two additional banks located in the same in meeting the convenience and needs of the community to banking market. In so doing, the Board has chosen be served. (Emphasis added.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 FEDERAL RESERVE BULLETIN • OCTOBER 1973 I find that the asserted benefits to the public to cent or more of the voting shares of The First be derived from consummation of the proposal are National Bank of Dubuque, Dubuque, Iowa mainly fictional, and they do not outweigh the ("Bank"). anticompetitive effects of the acquisition of Wel- Notice of the application, affording opportunity lesley Bank. Consequently, I interpret the Act as for interested persons to submit comments and requiring disapproval of such acquisition. The views, has been given in accordance with § 3(b) majority stresses Burlington Bank's need for fi- of the Act. The time for filing comments and views nancial and managerial support, but it does not has expired, and all those received have been consider whether such support can be obtained in considered in light of the factors set forth in § a less anticompetitive manner such as reliance on 3(c) of the Act (12 U.S.C. 1842(c)). Among the the powers of the responsible bank supervisory comments and objections was a request for a authorities. As I stated in an earlier case involving hearing. The Board decided to proceed on the basis a proposal to acquire a Massachusetts bank,1 be- of written submissions and denied the request for fore the Board can approve such an anticompeti- a hearing.1 tive acquisition, it must be demonstrated that the Applicant controls 79 banks located variously benefit to the public cannot be accomplished by in Iowa, Minnesota, Montana, Nebraska, North a less anticompetitive alternative.2 In my view, Dakota, South Dakota, and Wisconsin. Within no such showing has been made in this case. Iowa, Northwest Bancorporation controls four The Board is required by the Bank Holding banks with aggregate deposits of $485 million, Company Act to consider in each application to representing 5.8 per cent of the total commercial acquire a bank "the financial and managerial re- bank deposits in that State.2 Upon consummation sources and future prospects of . . . the banks of the acquisition of Bettendorf Bank and Trust concerned. ..." However, the Act was intended Company ($28.7 million in deposits) and Security as a "safeguard against undue concentration of State Bank ($14.3 million in deposits), Northwest control of banking activities"3 not as a substitute Bancorporation would control nearly $528 million for the bank supervisory process. The bank super- in deposits and 6.3 per cent of the total commercial visory process is the appropriate method for re- bank deposits in Iowa. Applicant is the largest solving Burlington Bank's financial and manage- banking organization and bank holding company rial difficulties. Use of the supervisory process in Iowa and acquisition of Bank ($74.6 million instead of the Bank Holding Company Act could in deposits), the tenth largest banking organization eliminate the need for these anticompetitive ac- in Iowa, would increase Applicant's share of quisitions and thereby result in greater net benefits Statewide deposits by nearly one percentage point. to the public. There is no significant existing competition be- In conclusion, the acquisition of either Welles- tween Bank and Applicant's existing and prospecley Bank or Burlington Bank would have signifi- tive banking subsidiaries. Applicant's closest cant anticompetitive effects that are not out- banking subsidiary to Bank will be located about weighed by public interest considerations. There- 78 miles south, in Bettendorf. Accordingly, the fore, I would deny both applications. Board concludes that no significant existing competition would be eliminated between Bank and Applicant's banking subsidiaries upon consumma- NORTHWEST BANCORPORATION, tion of this proposal. MINNEAPOLIS, MINNESOTA In the Board's opinion, however, approval of this application would have significantly adverse ORDER DENYING ACQUISITION OF BANK effects on potential competition with respect to the Northwest Bancorporation, Minneapolis, Min- Dubuque SMS A, the relevant banking market. nesota, a bank holding company within the mean- Bank is the second largest banking organization ing of the Bank Holding Company Act, has applied for the Board's approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire 90 per ^he principal arguments raised in the request for a hearing and in the subsequent written submissions have been previously considered by the Board in its Order effective August 2, 1973 (38 Federal Register 21530), approving the applications of *In the matter of the application of State Street Boston Northwest Bancorporation to acquire two Iowa banks, Betten- Financial Corporation, 1973 Federal Reserve BULLETIN 528 dorf Bank and Trust Company, and Security State Bank. (Dissenting Opinion). 2All banking data, unless otherwise indicated, are as of 2See U.S. v. Philadelphia National Bank, 399 U.S. 350 December 31, 1972, and reflect bank holding company forma- (1970). tions and acquisitions approved by the Board through July 31, 3S. Rep. No. 91-1084, 91st Cong., 1st Sess. 2 (1970). 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 763 in the relevant market, controlling over 26 per cent Iowa Securities Company "are not in the same of market deposits. Bank has the largest market residential mortgage loan market." However, it share of IPC deposits of under $100,000, over 28 is the Board's view that approval could, given the per cent (as of June 30, 1972). In the Dubuque structural changes taking place in mortgage lendbanking market the three largest banks together ing, eliminate significant competition in the 1-4 control about 80 per cent of market deposits. family mortgage origination market in the Dubu- Acquisition of Bank by Applicant would seem to que SMS A. Accordingly, the Board concludes that solidify this market structure and lessen the likeli- the competitive factors of this application weigh hood of the emergence of new competitive forces against approval. in that market. The financial condition and managerial re- De novo entry into the Dubuque market is a sources and future prospects of Applicant, its reasonable alternative in view of the fact that existing subsidiary banks, and Bank are satis- Dubuque is a regional center for the tri-State area factory and consistent with approval of the appli- (eastern Iowa, northwestern Illinois, and south- cation. However, these factors do not outweigh western Wisconsin), and its future prospects ap- the anticompetitive effects flowing from this propear to be favorable in view of the facts of record, posal. There is no indication in the record that including the following: Population growth in the the banking needs of the relevant market are not market; renovation of the central business district; being met. Accordingly, although considerations completion of an expansive new shopping center; relating to the convenience and needs of the comand establishment of two industrial parks, a 215- munities to be served are consistent with approval acre park near the Mississippi River and a second they do not outweigh the adverse competitive park of about 400 acres eight miles west of the effects of the proposal. It is the Board's judgment city. In light of Applicant's market extension in- that consummation of the proposed acquisition terests and capabilities for entry, and the prospects would not be in the public interest and that the of the Dubuque SMS A, the Board is of the view application should be denied. that Applicant can be viewed as one of the more On the basis of the record, the application is likely de novo entrants. Furthermore, there are, denied for the reasons summarized above. in fact, foothold means of entry into the market By order of the Board of Governors, effective which are less anticompetitive than is this pro- September 19, 1973. posal. Given the character of the Dubuque banking market, the probability of Applicant as a potential Voting for this action: Vice Chairman Mitchell and Governors Sheehan, Bucher, and Holland. Absent and not voting: entrant into such market and the opportunities for Chairman Burns and Governors Daane and Brimmer. de novo or "foothold" entry, the Board is of the (Signed) CHESTER B. FELDBERG, view that approval of this proposal would have [SEAL] Secretary of the Board. a significantly adverse effect on potential competition. CONCURRING STATEMENT OF Another factor arguing against approval of this GOVERNORS MITCHELL AND SHEEHAN application is the fact that acquisition of Bank by Applicant would eliminate the possibility that We concur in the Board's action denying Ap- Bank would develop into the lead bank of a plicant's proposal to acquire the First National regional bank holding company. It certainly would Bank of Dubuque on the grounds that consummaappear to have the managerial and financial re- tion of the proposal would have significantly adsources to so develop since it is the tenth largest verse effects on potential competition in the Dubanking organization in the State. At present, there buque area. However, we disagree with the conis no multibank holding company representation clusion that the transaction would result in the in the entire northeast section of Iowa. elimination of significant existing competition in The Department of Justice has commented on the 1 -4 family Dubuque mortgage banking market this application and recommended that it be denied as between Bank and Applicant's mortgage bankdue to the elimination of existing competition as ing subsidiary, Iowa Securities Company. between Applicant's mortgage banking subsidiary, The facts of record indicate that Bank's 1-4 Iowa Securities Company, with an office in Dubu- family mortgage loans are almost entirely convenque, and Bank. In response, Applicant contends tional loans which are not government insured. On that the residential real estate mortgage business the other hand, virtually all of Iowa Securities of Bank and Iowa Securities Company in the Company's mortgages are FHA or VA insured. Dubuque area does not constitute a substantial In our view, it is clear that Bank and Iowa Securivolume of business; and, furthermore, Bank and ties Company each serves a distinct type of cus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 FEDERAL RESERVE BULLETIN • OCTOBER 1973 tomer and provides mortgage loans of different credit by World Acceptance's consumer finance varieties and, accordingly, no meaningful present offices. Piedmont Premium provides loan financcompetition would be eliminated between the two ing for the payment of casualty insurance preinstitutions in the 1-4 family mortgage market. miums under premium service agreements. SBT, However, we find that the other anticompetitive through its ownership of all the outstanding stock effects of the proposal, which are described in the of Sunland Life Insurance Company, Phoenix, majority's statement, are not outweighed in the Arizona ("Sunland Life"), acts as reinsurer for public interest by any considerations reflected in credit life, accident and health insurance directly the record. related to extensions of credit. Such activities have been determined by the Board to be closely related ORDERS UNDER SECTIONS 3 AND 4 OF to banking (12 CFR 225.4(a)(1),(9), and (10)). BANK HOLDING COMPANY ACT Notice of receipt of the applications has been given in accordance with sections 3 and 4 of the Act, and the time for filing comments and views SOUTHERN BANCORPORATION, INC., has expired. The Board has considered the appli- GREENVILLE, SOUTH CAROLINA cations and all comments received in the light of ORDER APPROVING FORMATION OF BANK HOLD- the factors set forth in section 3(c) of the Act (12 ING COMPANY AND ACQUISITION OF WORLD AC- U.S.C. 1842(c)), and the considerations specified CEPTANCE CORPORATION, PIEDMONT PREMIUM in section 4(c)(8) of the Act (12 U.S.C. SERVICE, INC., AND SBT REAL ESTATE, INC. 1843(c)(8)). Applicant is a nonoperating corporation formed Southern Bancorporation, Greenville, South for the purpose of becoming a bank holding com- Carolina, has applied for the Board's approval pany. Bank is the sixth largest banking organiunder section 3(a)(1) of the Bank Holding Comzation in South Carolina, with deposits of approxpany Act (12 U.S.C. 1842(a)(1)), for the formaimately $118 million, and upon Board approval tion of a bank holding company through acquisiwould become the fourth largest bank holding tion of 100 per cent of the voting shares of Crecompany in the State, controlling 3.7 per cent of scent Bank and Trust Company, Greenville, South total commercial bank deposits in South Carolina.1 Carolina, the successor by merger to Southern Consummation of the proposal herein would nei- Bank and Trust Company, Greenville, South ther alter existing banking competition nor signifi- Carolina ("Bank"). The bank into which Bank cantly affect potential competition and would not is to be merged has no significance except as a result in an increase in the concentration of bankmeans to facilitate the acquisition of the voting ing resources in any relevant area. shares of Bank. Accordingly, the proposed acqui- Considerations relating to the financial and sition of shares of the successor organization is managerial resources and future prospects of Aptreated herein as the proposed acquisition of the plicant and Bank appear to be satisfactory and shares of Bank. consistent with approval. Considerations relating At the same time, Applicant has applied in to the convenience and needs of the communities separate applications for the Board's approval, involved, with respect to the acquisition of Bank, under section 4(c)(8) of the Act (12 U.S.C. are consistent with approval. It is the Board's 1843(c)(8)) and § 225.4(b)(2) of the Board's Regjudgment that consummation of the transaction ulation Y, to acquire all of the voting shares of: would be in the public interest and that the acqui- (1) Taylor Acceptance Corporation, the successor sition of Bank should be approved. by merger to World Acceptance Corporation World Acceptance has total assets of $6 million, ("World Acceptance"); (2) Paramount Premium and net loan receivables of $5.6 million, as of Service, Inc., the successor by merger to Piedmont December 31, 1972. It operates 49 consumer fi- Premium Service, Inc. ("Piedmont Premium"); nance offices, 19 of which are in South Carolina, and (3) Sobanco Properties, Inc., the successor 17 in Georgia,2 and 13 in Texas. Applicant's by merger to SBT Real Estate, Inc. ("SBT"); all banking subsidiary has eight offices located in the located in Greenville, South Carolina. World Acceptance engages in the activities of making consumer finance loans and, in the States of Georgia *A11 banking data are as of December 31, 1972, and reflect and South Carolina, also acting as agent for the bank holding company formations and acquisitions approved sale of credit related life, accident and disability by the Board through July 31, 1973. insurance, and credit related property and casualty 2 World Finance Corporation of Dawson, Dawson, Georgia, is a shell corporation. All of its assets were sold on August insurance issued in connection with extensions of 1, 1972, to Kentucky Finance Corporation, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 765 relevant market area, which is the Greenville- only approve applications in which an Applicant Pickens SMSA. In that market, World Acceptance demonstrates that approval will benefit the conoperates five consumer finance offices. However, sumer or result in other public benefits. Normally World Acceptance is not a large factor in the small such a showing would be made by a projected personal loan market as its market share is less reduction in rates or increase in policy benefits than 1 per cent, represented by outstandings of due to bank holding company performance of this $800,000, as of December 31, 1972. Competing service." Applicant has committed itself, within in the same market are 58 consumer finance com- 30 days following consummation of the proposed panies with 76 offices and 11 other commercial acquisition, to reduce the rates charged by Sunland banks with 63 offices. Neither Bank nor World Life to its policy holders by 15 per cent on all Acceptance is dominant in the relevant market. credit life insurance policies, and by 5 per cent Considering the large number of lending alterna- on all credit accident and health insurance policies tives, the Board is of the opinion that Applicant's written by it in all States in which it would offer acquisition of World Acceptance would not have such policies (Georgia and South Carolina). It is a significant effect on existing or potential compe- the Board's judgment that these benefits to the tition in the small consumer instalment loan mar- public outweigh any possible adverse effects. ket. World Acceptance also acts as an agent for In its consideration of this application, the the sale of credit insurance related to loans it Board has examined covenants not to compete originates. Due to the limited nature of this activ- contained in employment agreements with the ity, Applicant's acquisition of World Acceptance principal executives of World Acceptance and would not appear to have a significantly adverse Piedmont. The Board finds that the provisions of effect on competition in this product line. Simi- these covenants (limited to three years and to larly, with respect to the acquisition of Piedmont localities where Southern Bancorporation would Premium, it appears that in view of the limited be engaged in the licensed finance business and nature of its activity, the acquisition of Piedmont the licensed insurance premium service business) by Applicant would not have any significant ad- are reasonable in scope, duration, and geographic verse competitive consequences. area and are consistent with the public interest. SBT was organized in 1966 for the principal As the United States District Court for the Southpurpose of purchasing banking facilities utilized ern District of New York has stated in Syntex by Bank and leasing such facilities to Bank. In Laboratories, Inc. v. Norwich Pharmacol Com- 1967, SBT acquired all the shares of Sunland Life, pany3: an Arizona chartered company which engages While agreements not to compete have at times been used solely in acting as reinsurer for certain credit life, for the unlawful purpose of monopolizing a part of trade or accident and health insurance directly related to commerce . .. it is hornbook law that a covenant not to extensions of credit by Bank. The ownership of compete ancillary to the sale of a business (or a part of a business), when reasonably limited as to time and territory, shares of a company engaged in holding or does not fall within the prohibitions of the Sherman Act. The operating properties used wholly or substantially question in every case is whether the restraint is reasonably calculated to protect the legitimate interest of the purchaser by any banking subsidiary of a bank holding in what he has purchased, or whether it goes so far beyond company is permissible under section 4(c)(1)(A) what is necessary as to provide a basis for the inference that of the Act without the need for prior Board ap- its real purpose is the fostering of monopoly. proval. Accordingly, this Order considers only the There is no evidence in the record indicating proposed insurance underwriting activities of SBT. that consummation of the proposal would result As of December 31, 1972, SBT had total assets in any undue concentration of resources, unfair of $845,000, of which $145,000 represented in- competition, conflicts of interest, or unsound vestment in the underlying equity of its insurance banking practices. subsidiary and for the year ending that same date, Approval of the applications would give World SBT received gross premiums of $530,000. Ap- Acceptance access to Applicant's financial reproval of Applicant's proposed acquisition does sources and enhance World Acceptance's competnot appear to eliminate any competition in the itive effectiveness. Based upon the foregoing and underwriting of credit life and disability insurance. other considerations reflected in the record, the In adding credit life underwriting to the list of Board has determined that the considerations afpermissible activities for bank holding companies, fecting the competitive factors under section 3(c) the Board stated that, "To assure that engaging of the Act and the balance of the public interest in the underwriting of credit life and credit accident and health insurance can reasonably be expected to be in the public interest, the Board will 3315 F. Supp. 45, at 56 (1970). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 FEDERAL RESERVE BULLETIN • OCTOBER 1973 factors the Board must consider under section ity has presented no evidence to show that these 4(c)(8) are favorable and that consummation of covenants are in the public interest. For reasons these proposals would be in the public interest. stated more fully in my dissents to the application Accordingly, the applications are approved for of Orbanco, Inc., to acquire Far West Security the reasons summarized above. The acquisition of Company (59 Federal Reserve BULLETIN 368-369 Bank shall not be consummated (a) before the (1973)), and the application of CBT Corporation thirtieth calendar day following the effective date to acquire General Discount Corporation (59 Fedof this Order, or (b) later than three months after eral Reserve BULLETIN 471 (1973)), it is my view the effective date of this Order; and the acquisi- such covenants do not serve to promote competitions of World Acceptance, Piedmont Premium, tion and should not receive the sanction of the and SBT shall be consummated not later than three Board. I would deny these applications. months after the effective date of this Order, unless such three month periods are extended for good PIEDMONT CAROLINA cause by the Board or by the Federal Reserve Bank FINANCIAL SERVICES, INC., of Richmond pursuant to delegated authority. The DAVIDSON, NORTH CAROLINA determinations as to the activities of World Acceptance, Piedmont Premium, and SBT is subject ORDER APPROVING FORMATION OF BANK HOLDto the conditions set forth in § 225.4(c) of Regu- ING COMPANY AND ACQUISITION OF CONSUMER lation Y and to the Board's authority to require FINANCE COMPANIES such modification or termination of the activities Piedmont Carolina Financial Services, Inc., of a holding company or any of its subsidiaries Davidson, North Carolina, has applied for the as the Board finds necessary to assure compliance Board's approval under § 3(a)(1) of the Bank with the provisions and purposes of the Act and Holding Company Act (12 U.S.C. 1842(a)(1)) of the Board's regulations and orders issued formation of a bank holding company through thereunder, or to prevent evasion thereof. acquisition of 100 per cent (less directors' quali- By order of the Board of Governors, effective fying shares) of the voting shares of the successor September 19, 1973. by merger to Piedmont Bank and Trust Company, Davidson, North Carolina ("Bank"). The bank Approval of acquisition of Southern Bank and Trust Cominto which Bank is to be merged has no signifipany and SBT Real Estate. Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, cance except as a means to facilitate the acquisition and Holland. Absent and not voting: Chairman Burns and of the voting shares of Bank. Accordingly, the Governor Daane. proposed acquisition of shares of the successor Approval of acquisition of World Acceptance Corporation and Piedmont Premium Service. Voting for this action: Gov- organization is treated herein as the proposed acernors Sheehan, Bucher, and Holland. Voting against this quisition of the shares of Bank. action: Vice Chairman Mitchell and Governor Brimmer. Ab- At the same time, Applicant has applied for the sent and not voting: Chairman Burns and Governor Daane. Board's approval under § 4(c)(8) of the Act (12 (Signed) THEODORE E. ALLISON, U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the [SEAL] Assistant Secretary of the Board. Board's Regulation Y to acquire (1) Carolina Finance Company of Charlotte, Inc., Charlotte, DISSENTING STATEMENT OF North Carolina (''Charlotte"), (2) B & M Finance GOVERNOR BRIMMER Company, Winston-Salem, North Carolina I would deny the applications by Southern Ban- ("Winston-Salem"), and (3) Credit Loan and Ficorporation to acquire World Acceptance and nance Company, Inc., Greensboro, North Carolina Piedmont. My decision is based on the existence ("Greensboro"). These three companies are conof covenants not to compete contained in the sumer finance companies making personal loans proposed employment contracts between World up to a maximum of $900 and also engage in the Acceptance and Piedmont and their principal ex- selling as agent of credit life and credit health and ecutives. These two individuals have agreed, for accident insurance directly related to extensions a three year period following termination of their of credit by them. Such activities have been deteremployment, not to be associated with a competi- mined by the Board to be closely related to banktor of World Acceptance or Piedmont. In effect, ing (12 CFR 225.4(a)(1) and (9). such action would preclude the possibility of these Notice of receipt of the applications has been individuals undertaking to provide an alternative given in accordance with §§3 and 4 of the Act source of consumer finance or insurance premium and the time for filing comments and views has services in those markets in which Southern Ban- expired. The Board has considered the applications corporation would offer such services. The major- and all comments received in light of the factors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 767 set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) of the transaction would not eliminate significant and considerations specified in § 4(c)(8) of the Act existing or potential competition in this market. (12 U.S.C. 1843(c)(8)). There is no evidence in the record indicating Applicant, a newly formed corporation with no that consummation of the proposal would result operating history, was organized by the officers in any undue concentration of resources, unfair and directors of Bank. Bank (deposits of $29 competition, conflicts of interest, unsound banking million) is one of the smaller banks in its market practices, or other adverse effects on the public area.1 Since this formation involves the acquisition interest. It does appear that consummation of the by Applicant of one bank, consummation of the transaction could result in the three consumer transaction would have no adverse effect on com- finance companies having greater access to capital, petition in commercial banking. thereby enabling them to become stronger com- Considerations relating to the financial and petitive forces in their respective market areas. managerial resources and prospects of Applicant Additionally, it appears that the three finance depend primarily on those of Bank, which appear companies are managed by an individual in his to be generally satisfactory and consistent with mid-seventies. Affiliation of the three companies approval of the application. Considerations relat- with Applicant should provide continuity and ing to the convenience and needs of the communi- depth of management for the finance companies. ties to be served are also consistent with approval The three finance companies act as agents for of the transaction. It is the Board's judgment that the sale of credit insurance related to the loans consummation of the transaction, insofar as re- they originate. Due to the limited nature of this gards the acquisition of Bank, would be in the activity, Applicant's acquisition of the three compublic interest. panies would not appear to have a significantly Both Winston-Salem and Greensboro compete adverse effect on competition in this product line. in the same geographic market which is approxi- At the present time, the three finance companies mated by the Greensboro-Winston-Salem-High sell level term credit life and credit health and Point Standard Metropolitan Statistical Area accident insurance in connection with personal ("SMSA"). However, the effect on competition loans they make. However, the Applicant has in this market of consummation of this transaction committed itself to have the three companies cease is minimal in view of the large number of con- selling level term credit life and credit accident sumer finance companies in the area along with and health insurance upon consummation of this numerous commercial banks which make small transaction and sales of credit life and credit accipersonal loans and the fact that neither Winston- dent and health insurance will be on a declining Salem nor Greensboro occupies a significant posi- term basis. tion in the market. They had total receivables of Based upon the foregoing and other consid- $366 thousand and $313 thousand respectively as erations reflected in the record, the Board has of March 31, 1973. Moreover, both consumer determined that the balance of the public interest finance companies are owned by the same share- factors the Board is required to consider under § holders so that substantial competition between the 4(c)(8) is favorable. Accordingly, the application two probably could not be expected. Bank does is hereby approved. This determination is subject not compete in this market for small personal loans to the conditions set forth in § 225.4(c) of Reguand consummation of the proposal would not lation Y and to the Board's authority to require eliminate significant existing or potential competi- such modification or termination of the activities tion between Greensboro and Winston-Salem on of the holding company or any of its subsidiaries the one hand and Bank on the other. as the Board finds necessary to assure compliance Charlotte competes for small personal loans in with the provisions and purposes of the Act and the Charlotte SMSA where Bank also has offices. the Board's regulations and orders issued However, there are 20 other commercial banks and thereunder or to prevent evasion thereof. 41 other consumer finance companies in the area In its consideration of this matter, the Board which either do or could make small personal noted that Bank engages through a wholly-owned loans. Moreover, neither Bank nor Charlotte has subsidiary in general insurance agency activities a significant market share in the relevant market at off-premise locations including one office in a with the latter having total receivables of $385 community where Bank does not operate any thousand as of March 31, 1973. Consummation branches. It appears that Bank itself could directly perform these activities at those locations. The agency would be considered an operations subsid- 1 All banking data are as of December 31, 1972. iary of Bank if Bank were a State member bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 FEDERAL RESERVE BULLETIN • OCTOBER 1973 (Interpretations, paragraph 4215, 12 CFR such activities at the time of the acquisition), and 250.141).2 Accordingly, pursuant to § 4(c)(5) of has been continuously engaged in since June 30, the Bank Holding Company Act and § 225.4(e) 1968 (or such subsequent date). of Regulation Y, such activities do not require Section 4(a)(2) of the Act provides, inter alia, the approval of the Board. that the Board of Governors of the Federal Reserve On the basis of the record, the applications to System may terminate such grandfather privileges acquire Bank and the three insurance agencies are if, having due regard to the purposes of the Act, approved for the reasons summarized above. The the Board determines that such action is necessary acquisition of Bank shall not be consummated to prevent an undue concentration of resources, before the thirtieth calendar date following the decreased or unfair competition, conflicts of intereffective date of this Order nor shall acquisition est, or unsound banking practices. With respect of Bank or the three consumer finance companies to a company that controls a bank with assets in be made later than three months after the effective excess of $60 million on or after December 31, date of this Order unless such period is extended 1970, the Board is required to make such a deterfor good cause by the Board or by the Federal mination within a two year period. Reserve Bank of Richmond. Notice of the Board's proposed review of By order of the Board of Governors, effective grandfather privileges of The Republic National September 4, 1973. Bank of Dallas, Dallas, Texas, and an opportunity for interested persons to submit comments and Voting for this action: Vice Chairman Mitchell and Goverviews or request a hearing, has been given (37 nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns. F.R. 22414 and 25204). The time for filing comments, views, and requests has expired, and all (Signed) CHESTER B. FELDBERG, those received have been considered by the Board [SEAL] Secretary of the Board. in light of the factors set forth in § 4(a)(2) of the Act. BOARD REVIEW UNDER THE The Republic National Bank of Dallas ("Regis- GRANDFATHER PROVISO IN SECTION 4(a)(2) trant"), Dallas, Texas, became a bank holding OF BANK HOLDING COMPANY ACT company on December 31, 1970, as a result of THE REPUBLIC NATIONAL BANK OF the 1970 Amendments to the Act by virtue of DALLAS, DALLAS, TEXAS Registrant's indirect control of approximately 30 per cent of the voting shares of Oak Cliff Bank DETERMINATION REGARDING "GRANDFATHER" and Trust Company, Dallas, Texas (assets of about PRIVILEGES UNDER BANK HOLDING $96 million, as of December 31, 1970). On July COMPANY ACT 13, 1973, the Board announced its finding that Section 4 of the Bank Holding Company Act Registrant, a national bank, had authority to con- (12 U.S.C. 1843) provides certain privileges tinue the activities of its six direct subsidiaries. ("grandfather" privileges) with respect to non- The Board noted in its announcement that it was banking activities of a company that, by virtue considering the question of Registrant's entitleof the 1970 Amendments to the Bank Holding ment to grandfather privileges with respect to Company Act, became subject to the Bank Hold- activities conducted by the Howard Corporation, ing Company Act. Pursuant to § 4(a)(2) of the et al., a group of corporations all the shares of Act, a "company covered in 1970" may continue which are held for the benefit of the shareholders to engage, either directly or through a subsidiary, of Registrant and, by virture of § 2(g)(2) of the in nonbanking activities that such a company was Act, are deemed to be controlled by Registrant. lawfully engaged in on June 30, 1968 (or on a On the evidence before it, the Board makes the date subsequent to June 30, 1968, in the case of following findings. Since 1928 the shareholders of activities carried on as a result of the acquisition Registrant have been the beneficiaries of an affilby such company or subsidiary, pursuant to a iated group of corporations under a trusteeship. binding written contract entered into on or before These organizations, now known as "The Howard June 30, 1968, of another company engaged in Corporation", a Texas trust which will terminate in 1978, was established in 1928. The trusteeship was the outgrowth of a consolidation in which assets ineligible for retention by a national bank 2If, however, State law did not authorize Bank to perform were set aside in a separate trust for the benefit the activities directly, but rather only authorized the investment of the shareholders of Registrant. The trusteed in shares of the insurance agency, such agency would not be corporations also have stock interests in 21 other permissible on the basis of § 4(c)(5) and § 225.4(e). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 769 Texas banks.1 The net income for the Howard Exchange Security & Investment Co.5 (assets Corporation in 1971 amounted to over $3 million, of $160,000 as of December 31, 1971) was formed which includes $1.4 million received as the result in June, 1970 for the purpose of acquiring Exof equity interests in the earnings of Registrant change National Life Insurance Company (admitand other companies. The consolidated assets for ted assets of $638,000 as of December 31, 1971), all the companies in the group amounted to $153 which was acquired subsequently in November, million as of December 31, 1971. 1970, and reinsures credit life and disability in- Registrant claims grandfather privileges for surance policies. Since these interests were acvarious activities. Republic Commerce Company ,2 quired after June 30, 1968, Registrant is not enti- Dallas (assets of $24 million as of December 31, tled to indefinite grandfather privileges and must 1971), holds 100 per cent of the voting shares of reduce its interest to 5 per cent or less of the voting Republic Money Orders, Inc., Dallas, the shares shares by December 31, 1980, unless Registrant of which were received from the Savings and obtains Board approval under § 4(c)(8) to retain Profit sharing Retirement Fund for the employees the interest. of Registrant, which fund had held the stock from Except for the activities engaged in by the above 1959 to 1971. Republic Money Orders owns 100 corporations, the principal activities of the Howard per cent of the stock of Republic Money Orders Corporation6 and its subsidiaries are in the areas of California, Inc., Dallas, and each of these firms of oil, gas, minerals; real estate; lending and/or is engaged in the business of selling and servicing guaranteeing money and acting as a financial admoney orders and travelers checks. The combined visor; and owning and holding stocks and bonds assets of the two companies as of December 31, in various companies. 1971 amounted to about $33 million. It appears The Howard Corporation itself engages directly that Registrant may continue its interests in these in managing all the affiliated corporations and, in companies on the basis of grandfather privileges. connection with the management of the affiliated Republic National Bank Building Corporation3 corporations, engages in borrowing and lending (assets of $706,000 as of December 31, 1971), money, acting as investment counselor, and furwhich was acquired in 1951, operates and manages nishing management and financial advisory servtwo buildings occupied by Registrant. Registrant ices. It appears that these activities are eligible need not rely on grandfather privileges for the for, and may be continued on the basis of, grandcontinuation of its interest in this company inas- father privileges. The Howard Corporation also much as it appears that the activities of the com- holds investments in (1) securities, (2) oil, gas, pany are permissible on the basis of § 4(c)(1)(A).4 mineral properties, and (3) real estate activities. The securities investments of the Howard Corporation appear to be generally permissible for a bank holding company so long as the share holdings in each company do not exceed 5 per cent xThe Board's action herein is based on Registrant's claim of the outstanding voting shares of the company.7 that it controlled only one bank on June 30, 1968, and therefore became a bank holding company covered by the Bank Holding Shareholdings of more than 5 per cent of the shares Company Act as a result of the enactment of the 1970 Amend- of any company (but less than 25 per cent of the ments to the Act. The record shows that Registrant has interests outstanding shares) which have been held continin each of 21 other banks ("minority" banks), interests ranging from 6 to 24.98 per cent. The action herein does not constitute uously since June 30, 1968, are eligible for a determination by the Board that any of the minority banks grandfather benefits as an investment. However, is or is not, or may become a subsidiary of Registrant. Nor this determination is not authority to increase that does the action herein indicate that the Board would in the future permit Registrant to acquire, directly or indirectly, any investment interest; nor to make investments in additional shares of any of said minority banks. Moreover the other companies, unless the investment interest in action herein does not preclude the Board from determining that Applicant exercises control of, or a controlling influence each additional company amounts to not more than over the management or policies of, any of said banks within 5 per cent of the outstanding voting shares of such the meaning of § 2(a) of the Act. company. 2 All the shares of Republic Commerce Company are held for the benefit of the shareholders of Registrant. 3All the shares of Republic National Bank Building Corporation are held for the benefit of the shareholders of Regis- 5 All the shares of Exchange Security & Investment Co. are trant. held for the benefit of the shareholders of Registrant. 4 Section 4(c)(1)(A) of the Act permits a bank holding 6 All the shares of the Howard Corporation are held for the company (without the approval of the Board) to hold shares benefit of the shareholders of Registrant. of any company engaged in "... holding or operating 7 Section 4(c)(6) of the Act permits a bank holding company properties used wholly or substantially by any banking subsid- (without the approval of the Board) to hold "shares of any iary of such bank holding company in the operations of such company which do not include more than 5 per centum of banking subsidiary or acquired for such future use;". the outstanding voting shares of such company;". Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 FEDERAL RESERVE BULLETIN • OCTOBER 1973 With respect to oil, gas, and mineral interests, corporate shells. At the present time, only Macthe Howard Corporation and its subsidiaries have Mor Oil and MacBean Oil are active, and Regisinvestments in approximately 600 interests trant may continue its interests in these companies principally in Texas and Louisiana. Neither the on the basis of grandfather privileges. Howard Corporation nor its subsidiaries engage in In connection with oil, gas, and mineral interthe developing, mining, drilling, etc., of oil, gas, ests, Registrant, through the Howard Corporation, or other minerals, nor in acting as an operator, has made acquisitions of additional mineral interservicer, or producer in connection with oil, gas, ests after June 30, 1968. To the extent that those or mineral activities. On a grandfather basis, additional acquisitions were related to and neces- Registrant may continue, through the Howard sary to protect oil, gas, and mineral investments Corporation, the investments in the oil, gas, and held on June 30, 1968, they may be retained on mineral properties held on June 30, 1968, and, the basis of grandfather privileges. Investments to the extent necessary to preserve and develop made during the period from June 30, 1968, to those interests, may continue activities related to December 31, 1970, that were not so related may the wells, refineries, pipe lines, joint ventures, and be retained until December 31, 1980. Any other land exploration with respect to which the Howard investments made after December 31, 1970, and Corporation had investments on June 30, 1968. in excess of a 5 per cent interest are required by United Petroleum Corporation, Dallas (assets of the Act to be reduced to 5 per cent or less and $173,000 as of December 31, 1971), and Walker this should be effected at the earliest practicable Properties, Dallas, each of which is 50 per cent date. owned by the Howard Corporation, hold title to The Howard Corporation acts as a financing and participate as investors in oil, gas, and mineral partner or investor in real estate. As noted above, interests, and participate as investors in drilling Pine Island Oil, Walker Louisiana Properties, and operating oil and gas wells. Pine Island Oil Prairie Canal, United Petroleum Company and Company (assets of $44,000 as of December 31, Walker Properties are each engaged in holding real 1971), Lake Charles, Louisiana, which is 50 per estate principally as an adjunct to oil, gas, and cent owned by the Howard Corporation, owns, mineral interests but used also for commercial, certain oil, gas, and mineral interests. Walker residential, and agricultural purposes. The prop- Louisana Properties, Louisiana, a joint venture 50 erty is not a contiguous tract but scattered acreage per cent owned by the Howard Corporation, owns throughout southern Louisiana, Texas, and other certain oil, gas and mineral interests, as well as states. farm and timber land, and participates as an in- Three wholly-owned subsidiaries of The Howvestor in drilling and operating oil and gas wells. ard Corporation were organized to acquire, hold, Prairie Canal Company (assets of $718,000 as of manage, operate, and sell real and personal prop- December 31, 1971), Lake Charles, Louisiana, erty acquired by Registrant through loan foreclo- 32.9 per cent of which is owned by the Howard sures. The three subsidiaries, namely, Rheims Corporation, owns and holds title to oil, gas and Corporation (assets of $408,000 as of December mineral interests. In varying degrees as described 31, 1971), which was acquired in 1958; Fairfax below, each of the five entities named above, owns Investment Corporation (assets of $3,300 as of real estate properties as an adjunct to the oil, gas, December 31, 1971), which was acquired in 1959; and mineral interests. To the extent that the oil, and Westside Investment Corporation (assets of gas, and mineral interests described above were about $100 as of December 31, 1971), which was held on June 30, 1968, Registrant is entitled to acquired in 1959); appear to be eligible for retengrandfather benefits to retain such investments. tion without reference to grandfather benefits by In addition to the above activities of the Howard virtue of § 4(c)(1)(D) of the Act.8 Corporation and its subsidiaries, Registrant is The Howard Corporation owns six shopping deemed to control, by virtue of § 2(g)(2) of the centers, two in California, three in Texas, and one Act, MacMor Oil Company, Boyce Oil Company, in Louisiana, all of which were acquired prior to and MacBean Oil Company, all located in Dallas June 30, 1968. Registrant is entitled to retain these and owned 100 per cent by the Savings and Profit properties on the basis of grandfather privileges. Sharing Retirement Fund for the employees of Three other subsidiaries of the Howard Cor- Registrant. These companies were formed, all poration are engaged in real estate ventures. The prior to June 30, 1968, for the sole purpose of holding title to oil and gas production payments. 8Section 4(c)(1)(D) of the Act permits a bank holding When all the production payments are paid out, company (without the approval of the Board) to hold shares of any company engaged in ". . . liquidating assets acquired the three organizations will be nothing more than from such bank holding or its banking subsidiaries. ..." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 771 Oxford Corporation (assets of $1 million as of vent an undue concentration of resources, de- December 31, 1971), which was acquired in 1969, creased or unfair competition, conflicts of interest, acts as an investing partner in acquisition, devel- or unsound banking practices. Except as indicated opment, operation and sale of realty. The Oxford herein, this determination is not authority to enter Corporation has a 50 per cent interest in each of into any new activity, or product extension that two other companies, namely, Westgate Company was not engaged in on June 30, 1968 and continuand Polk Wheatland Company, which engage in ously thereafter, or any activity that is not the activities similar to Oxford's. Inasmuch as Regis- subject of this determination. trant's interest in these corporations was made A significant alteration in the nature or extension after June 30, 1968, but before December 31, of Registrant's activities or a change in location 1970, the companies do not appear to be entitled thereof (significantly different from any described to grandfather privileges, and Registrant must re- in this determination) will be cause for a re-evaluduce its interest to 5 per cent or less of the voting ation by the Board of Registrant's activities under shares by December 31, 1980, unless it obtains the provisions of § 4(a)(2) of the Act, that is, Board approval to retain its interests. whenever the alteration or change is such that the The Westminister Corporation (assets of $21,- Board finds that a termination of the grandfather 000 as of December 31, 1971), a wholly-owned privileges is necessary to prevent an undue consubsidiary of the Howard Corporation, was ac- centration of resources or any of the other evils quired in 1969 and has as its only assets an option at which the Act is directed. No merger, consolion an oil refinery. Registrant may continue to hold dation, acquisition of assets other than in the this interest until December 31, 1980. ordinary course of business, nor acquisition of any Since June 30, 1968, Registrant, through the interest in a going concern, to which the Registrant Howard Corporation and its subsidiaries, has pur- or any nonbank subsidiary thereof is a party, may chased real estate or has become a partner and be consummated without prior approval of the invested in several joint ventures engaged in buy- Board. Further, the provision of any credit, proping real estate for further development and/or erty, or service by the Registrant or any subsidiary appreciation in value. In many instances, the ac- thereof shall not be subject to any condition which, quisition was made after December 31, 1970, the if imposed by a bank, would constitute an unlawful date of the 1970 Amendments to the Act, and, tie-in arrangement under § 106 of the Bank Holding Company Act Amendments of 1970. on the basis of the prohibitions in § 4 of the Act, impermissible unless Registrant had grandfather The determination herein does not preclude a privileges for such investments. Registrant should later review, by the Board, of Registrant's nonreduce its interest in each joint venture or real bank activities and a future determination by the estate (acquired after December 31, 1970) to 5 Board in favor of termination of grandfather beneper cent or less at the earliest practiable date. With fits of Registrant. The determination herein is respect to investments in joint ventures or real subject to the Board's authority to require modifiestate made between June 30, 1968, and December cation or termination of the activities of Registrant 31, 1970, Registrant has until December 31, 1980, or any of its nonbanking subsidiaries as the Board to reduce its interest to 5 per cent or less. Any finds necessary to assure compliance with the interest in a joint venture for real estate or real provisions and purposes of the Act and the Board's estate acquired prior to June 30, 1968, may be regulations and orders issued thereunder, or to retained indefinitely together with investments re- prevent evasion thereof. lated to or necessary to protect real estate invest- By determination of the Board of Governors, ments held on June 30, 1968. effective September 10, 1973. On the basis of the foregoing and all the facts Voting for this action: Vice Chairman Mitchell and Goverbefore the Board, it appears that the volume, nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent scope, and nature of the activities of Registrant and not voting: Chairman Burns. described herein and of the Howard Corporation, (Signed) CHESTER B. FELDBERG, do not demonstrate an undue concentration of [SEAL] Secretary of the Board. resources, decreased or unfair competition, conflicts of interest nor unsound banking practices. SWISS-ISRAEL TRADE BANK, There appears to be no reason to require Regis- GENEVA, SWITZERLAND trant to terminate its grandfathered interests. It is BEAVER SECURITIES CO. INC., the Board's judgment that, at this time, termina- NEW YORK, NEW YORK tion of the grandfather privileges of Registrant EXCHANGE PLACE CORP., described herein is not necessary in order to pre- NEW YORK, NEW YORK Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 772 FEDERAL RESERVE BULLETIN • OCTOBER 1973 DETERMINATION REGARDING "GRANDFATHER" B & T Corporation, New York, New York, which PRIVILEGES UNDER BANK HOLDING company owns 100 per cent of the voting shares COMPANY ACT of Bank.1 Bank, control of which was acquired by Registrant in October, 1963, had total deposits Section 4 of the Bank Holding Company Act of approximately $250 million as of June 30, (12 U.S.C. 1843) provides certain privileges 1972, representing .3 per cent of the total deposits ("grandfather" privileges) with respect to nonin commercial banks in the New York City area banking activities of a company that, by virtue and is the 23rd largest of the 79 banking organiof the 1970 Amendments to the Bank Holding zations in the New York City area. Company Act, became subject to the Bank Hold- It appears that Bank has enjoyed satisfactory ing Company Act. Pursuant to § 4(a)(2) of the earnings and that Registrant's financial strength Act, a "company covered in 1970" may continue does not derive from, nor is dependent upon, the to engage, either directly or through a subsidiary, resources of Bank. On the other hand, the Board in nonbanking activities that such a company was has noted that Bank's capital appears low in relalawfully engaged in on June 30, 1968 (or on a tion to its deposits and Bank's management and date subsequent to June 30, 1968, in the case of financial condition lack the strength the Board activities carried on as a result of the acquisition expects of subsidiary banks of a holding company. by such company or subsidiary, pursuant to a While the record shows that these aspects preceded binding written contract entered into on or before Registrant's acquisition of control of Bank, the June 30, 1968, of another company engaged in Board is concerned about these aspects since they such activities at the time of the acquisition), and are present today. In view of the Board's concern has been continuously engaged in since June 30, in this area, Registrant had adopted a program to 1968 (or such subsequent date). reduce the Bank's footings and the amount of loans Section 4(a)(2) of the Act provides, inter alia, outstanding, to strengthen management, and to that the Board of Governors of the Federal Reserve provide for stock dividends in lieu of cash pay- System may terminate such grandfather privileges ments by Bank. On the basis of the actions already if, having due regard to the purposes of the Act, taken and the commitments made by Registrant, the Board determines that such action is necessary the Board considers that the prospects of Bank to prevent undue concentration of resources, deshould be improved and its financial condition creased or unfair competition, conflicts of interest, strengthened. or unsound banking practices. With respect to a Registrant,2 a foreign bank, owns 100 per cent company that controls a bank with assets in excess of $60 million on or after December 31, 1970, the Board is required to make such a determination within a two year period. ^n December 31, 1970, Swiss-Israel was an indirect parent Notice of the Board's proposed review of the of Bank with three Swiss-Israel subsidiaries (Exchange Place grandfather privileges of the Swiss-Israel Trade Corporation, Beaver Securities, and American B & T Corp.) being the intermediate companies. Each of these three inter- Bank, Geneva, Switzerland; Beaver Securities Co. mediate companies became a bank holding company under the Inc., New York, New York; and Exchange Place 1970 Amendments. Since then, the corporate structure has changed so that only Swiss-Israel and American B & T Corp. Corp., New York, New York, and an opportunity (which was formed on April 30, 1970) are parents of Bank. for interested persons to submit comments and On March 30, 1972, the shares of American B & T Corp. views or request a hearing, has been given (37 were transferred from Beaver Securities Co. to direct ownership by Swiss-Israel to be held in custody by Pan Am & Co., F.R. 22414). The time for filing comments, views, New York, New York. Pan Am & Co. functions solely as and requests has expired, and all those received the registered nominee for Swiss-Israel and has no discretionary power to vote any shares of American B & T Corp. Exchange have been considered by the Board in light of the Place Corporation and Beaver Securities are no longer bank factors set forth in § 4(a)(2) of the Act. holding companies, and the question of a review of grandfather On the evidence before it, the Board makes the privileges is moot as to each of these companies. following findings. Swiss Israel Trade Bank, Geneva, Switzerland ("Registrant"), became a bank 2Registrant's annual report to shareholders shows consolidated assets of Registrant and its interest in five other banking holding company, as a result of the 1970 Amendaffiliates of 2.2 billion Swiss francs (approximately $525 milments to the Act, by virtue of Registrant's control lion), as of December 31, 1971. The bank affiliates, other than of close to 75 per cent of the voting shares of Bank, are located in Paris, Brussels, Tel-Aviv, and Montevideo. As to these foreign banks, the activities are permissible American Bank and Trust Company, New York, under the Board's Regulation Y and accordingly grandfather New York ("Bank") (assets of $253 million, as benefits need not be considered. Registrant also has two inacof December 31, 1970). Swiss-Israel owns close tive subsidiaries, Solon Properties Inc., and South Beach Realty Corporation (both located in New York City), that have to 75 per cent of the voting shares of American no grandfather benefits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 773 of Exchange Place Corp., which in turn owns 100 are involved for the present activities of Beaver6 per cent of Beaver Securities Co., Inc., and of nor does there appear to be any reason to require Exchange Place Management Corp., New York, a termination of its activities. Exchange Place New York. The latter company owns 100 per cent Management Corp. engages in no direct activities of the shares of Bevex Realty Corp. ("Bevex"), but acts as a holding company for five wholly- Merex Realty Corp. ("Merex"), Staunton Devel- owned subsidiaries named earlier herein. Of the opment Corporation ("Staunton"), Suissex Realty five subsidiaries, Merex and Tradex (both acquired Corp. ("Suissex") and Tradex Realty Corp. in 1962) each hold a mortgage which is being ("Tradex"), all of which are located in New York liquidated by periodic payments but the companies City. Registrant also owns 100 per cent of Isra- are otherwise inactive. Registrant is entitled to merica Corp., New York, New York, which com- grandfather benefits with respect to the mortgages pany owns 100 per cent of Sitra Corp., New York, now held and liquidation thereof.7 Bevex, Staun- New York ("Sitra") and of Vantar Properties Inc., ton, and Suissex were acquired in 1961 and 1962. New York, New York ("Vantar"). All of these Each of these three companies holds an interest direct or indirect subsidiaries of Registrant have in a real estate joint venture whose sole investment been engaged in their current activities since be- is a parcel of land located in Staten Island in New fore June 30, 1968, and continuously thereafter.3 York City. As of April 30, 1971, the combined Exchange Place Corp. (assets of $6.3 million as assets of these three subsidiaries amounted to of April 30, 1971) and Isramerica Corporation about $621,000. These joint ventures may be (assets of about $5 million as of April 30, 1971), retained under the grandfather privilege proviso. both acquired in 1960, engage directly in making Vantar (acquired in 1964) owns and services a loans to business enterprises and in investing in mortgage acquired as a result of the sale of real stocks and bonds for their own account but do property.8 This activity may be retained under the not own over 5 per cent of the shares of any grandfather privilege proviso. Sitra (acquired in company4 except for two subsidiaries of Exchange 1964) holds a 3 per cent interest in a shopping Place Corp., namely, Beaver Securities Co., Inc. center. Sitra's total investment in this participation (acquired in 1960) and Exchange Place Manage- is $32,000. There appears to be no reason to ment Corporation (acquired in 1962). The making require a modification of this activity. of loans to business enterprises is entitled to On the basis of the foregoing and all the facts grandfather privileges.5 The only current activity before the Board, it appears that the volume, of Beaver appears to be the holding of $50,000 scope, and nature of the activities of Registrant of stock and bond investments, none of which and its subsidiaries do not demonstrate an undue represents more than 5 per cent of the voting shares concentration of resources, decreased or unfair of the issusing company. No grandfather benefits competition, conflicts of interest nor unsound banking practices. There appears to be no reason to require Registrant to terminate its grandfathered interests. It is the Board's judgment that, at this time, termina- 3In 1970, American B & T Corp. made loans for its own account and acquired shares in GIT Realty & Mortgage Inves- tion of the grandfather privileges of Registrant is tors (15 per cent), a real estate investment trust and in GIT not necessary in order to prevent an undue con- Management Services Inc. With respect to the activities of centration of resources, decreased or unfair comthese two companies, Registrant has no grandfather benefits within the meaning of the proviso in § 4(A)(2) of the Act. petition, conflicts of interest, or unsound banking Registrant's direct or indirect interest in these two companies practices. However, this determination is not auwill be required to be reduced to 5 per cent or less by January 1, 1981, unless the Board were to grant Registrant approval thority to enter into any activity that was not under § 4(c)(8) to continue such activities. Shares of a REIT engaged in on June 30, 1968 and continuously are not on the Board's list of activities closely related to thereafter, or any activity that is not the subject banking. However, under § 224(a)(5) of Regulation Y advisory services to a REIT are regarded as permissible. 4Section 4(c)(6) of the Act provides an exemption to the general prohibitions of § 4 and permits a holding company to own not more than 5 per cent of the outstanding shares 6The holdings of 5 per cent or less of the shares of any of any company. Such holdings are permissible without re- company is permissible under § 4(c)(6) of the Act. Also § course to the benefits of the grandfather proviso. 4(c)(7) of the Act permits a holding company to own shares of an investment company that is not a bank holding company 5The activity of making loans is a "closely related" activity and is not engaged in any business other than investing in under § 225.4(a)(1) of Regulation Y. The activity of servicing securities which do not include more than 5 per cent of the loans is a closely related activity under § 225.4(a)(3) of outstanding voting shares of any company. Regulation Y. However, the Board's approval is required to 7See footnote 5 supra. authorize a company to engage in such permissible activities under said sections of the regulation and § 4(c)(8) of the Act. 8See footnote 5 supra. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 774 FEDERAL RESERVE BULLETIN • OCTOBER 1973 of this determination. Nor is this determination shall not be subject to any condition which, if authority for Registrant to enter into any new real imposed by a bank, would constitute an unlawful estate joint venture or to acquire additional shares tie-in arrangement under § 106 of the Bank Holdof any company if the Registrant's holdings in said ing Company Act Amendments of 1970. company will exceed 5 per cent of the outstanding The determination herein does not preclude a voting shares of such company. later review by the Board of Registrant's nonbank A significant alteration in the nature or extension activities and a future determination by the Board of Registrant's activities or a change in location in favor of termination of grandfather benefits of thereof (significantly different from any described Registrant. The determination herein is subject to in this determination) will be cause for a re-evalu- the Board's authority to require modification or ation by the Board of Registrant's activities under termination of the activities of Registrant or any the provisions of § 4(a)(2) of the Act, that is, of its nonbanking subsidiaries as the Board finds whenever the alteration or change is such that the necessary to assure compliance with the provisions Board finds that a termination of the grandfather and purposes of the Act and the Board's regulaprivileges is necessary to prevent an undue con- tions and orders issued thereunder, or to prevent centration of resources or any of the other evils evasions thereof. designated in the Act. No merger, consolidation, By determination of the Board of Governors, acquisition of assets other than in the ordinary effective September 4, 1973. course of business, nor acquisition of any interest in a going concern, to which the Registrant or any Voting for this action: Vice Chairman Mitchell and Governonbank subsidiary thereof is a party, may be nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent consummated without prior approval of the Board. and not voting: Chairman Burns. Further, the provisions of any credit, property, or (Signed) CHESTER B. FELDBERG, service by the Registrant or any subsidiary thereof [SEAL] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During September 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Financial Data Systems, Inc., Bank of the Commonwealth, 9/11/73 38 F.R. 26153 Detroit, Michigan Detroit, Michigan 9/18/73 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 American National Holding The American National Bank in 9/27/73 38 F.R. 27550 Company, Kalamazoo, Michigan Western Michigan, Allegan, 10/4/73 Michigan Fidelity American Bankshares, Fidelity National Bank, 9/24/73 38 F.R. 27332 Inc., Lynchburg, Virginia Halifax County, Virginia 10/2/73 First Banc Group, Inc., The Citizens Bank of Gerald, 9/24/73 38 F.R. 27334 Creve Coeur, Missouri Gerald, Missouri 10/2/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 775 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK—Cont. First International Bancshares, Citizens National Bank in 9/17/73 38 F.R. 26883 Inc., Dallas, Texas Abilene, Abilene, Texas 9/26/73 First Tennessee National Corpora- Jackson State Bank, 9/18/73 38 F.R. 26975 tion, Memphis, Tennessee Jackson, Tennessee 9/27/73 Fort Worth National Corporation, Bank of Fort Worth, Fort 9/25/73 38 F.R. 27551 Fort Worth, Texas Worth, Texas and Riverside 10/4/73 State Bank, Fort Worth, Texas Fort Worth National Corporation, Levelland State Bank, 9/6/73 38 F.R. 26027 Fort Worth, Texas Levelland, Texas 9/17/73 Southeast Banking Corporation, Southeast National Bank of 9/24/73 38 F.R. 27336 Miami, Florida Manatee, Manatee County, 10/2/73 Florida United Missouri Bancshares, Inc. Hickman Mills Bank & Trust 9/13/73 38 F.R. 26508 Kansas City, Missouri Co., Kansas City, Missouri 9/21/73 Wyoming Bancorporation, Security Bank and Trust 9/11/73 38 F.R. 26160 Cheyenne, Wyoming Company, Casper, Wyoming 9/18/73 ORDERS UNDER SECTION 4(c)(8) OR BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking Company ( effective Register Applicant (or activity) date) citation The Alabama Financial Group, Southern States Life Insurance 9/13/73 38 F.R. 26407 Inc., Birmingham, Alabama Co., Birmingham, Alabama 9/20/73 First National City Corporation, Gateway Life Insurance 9/11/73 38 F.R. 26507 New York, New York Company, Phoenix, Arizona 9/21/73 First National Holding Corp., Tharpe & Brooks Incorporated, 9/24/73 38 F.R. 27335 Atlanta, Georgia Atlanta, Georgia 10/2/73 First Tennessee National Corpora- Pence Mortgage Company, 9/5/73 38 F.R. 25721 tion, Memphis, Tennessee Louisville, Kentucky 9/14/73 Landmark Banking Corporation North American Mortgage 9/18/73 38 F.R. 26834 of Florida, Fort Lauderdale, Corporation, St. Petersburg, 9/26/73 Florida Florida Manufacturers Hanover Corpora- Citizens Mortgage Corporation, 9/27/73 38 F.R. 27659 tion, Dover, Delaware Southfield, Michigan 10/5/73 Mellon National Corporation, Carruth Mortgage Company 9/27/73 38 F.R. 27660 Pittsburgh, Pennsylvania New Orleans, Louisiana 10/5/73 Philadelphia National Corporation, Congress Factors Corporation, 9/11/73 38 F.R. 26156 Philadelphia, Pennsylvania Philadelphia, Pennsylvania 9/18/73 Standard and Chartered Banking Mocatta Metals, Inc., 9/27/73 38 F.R. 27552 Group, Limited, London, New York, New York 10/4/73 England ORDERS ISSUED BY FEDERAL RESERVE BANKS During September 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 67 FEDERAL RESERVE BULLETIN • OCTOBER 1973 ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) Reserve Bank date) citation Peoples National Corporation, Peoples National Bank & Trust Chicago 9/26/73 38 F.R. 28327 Bay City, Michigan Company of Bay City, Bay 10/12/73 City, Michigan, and State Savings Bank of West Branch, West Branch, Michigan ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank Reserve Bank date citation Multibank Financial Corp., Northampton National Bank, Boston 9/18/73 38 F.R. 26977 Boston, Massachusetts Northampton, Massachusetts 9/27/73 First Commercial Banks, Inc., The Homer National Bank, New York 9/17/73 38 F.R. 26975 Albany, New York Homer, New York 9/27/73 Central National Corporation, City Savings Bank and Trust Richmond 9/20/73 38 F.R. 27242 Richmond, Virginia Company, Petersburg, 10/1/73 Virginia Atlantic Bancorporation, Peninsula State Bank, Chicago 9/5/73 38 F.R. 26152 Jacksonville, Florida Tampa, Florida 9/18/73 Old Kent Financial Corporation, Fremont Bank and Trust Com- Chicago 9/12/73 38 F.R. 26772 Grand Rapids, Michigan pany, Fremont, Michigan 9/25/73 Mercantile Bancorporation Inc., United Bank of Farmington, St. Louis 9/11/73 38 F.R. 26508 St. Louis, Missouri Farmington, Missouri 9/21/73 Mercantile Bancorporation Inc., Cape State Bank and Trust St. Louis 9/10/73 38 F.R. 26508 St. Louis, Missouri Company, Cape Girardeau, 9/21/73 Missouri ORDERS UNDER BANK MERGER ACT- APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal ( effective Register Applicant Bank(s) Reserve Bank date) citation FBT Bank, Fremont Bank and Trust Chicago 9/12/73 38 F.R. 26772 Fremont, Michigan Company, Fremont, 9/25/73 Michigan West Branch Bank, The State Savings Bank Chicago 9/26/73 38 F.R. 28327 West Branch, Michigan of West Branch, West 10/12/73 Branch, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements REVISION OF REGULATION P to forward to the Reserve Bank in its district a statement of reasons for its decision. The Board of Governors of the Federal Reserve System has announced revisions of its Regulation ADMISSION OF STATE BANKS TO P to strengthen implementation of the Bank Pro- MEMBERSHIP IN THE FEDERAL RESERVE tection Act. SYSTEM The revisions, effective November 1, 1973, are largely technical and clarify minimum standards The following banks were admitted to membership to be met by State member banks regarding the in the Federal Reserve System during the period installation, maintenance, and operation of secu- September 16, 1973, through October 15, 1973: rity devices, with the double aim of discouraging Florida crimes against financial institutions and assisting Lakeland American Bank of Lakeland the apprehension of perpetrators of such crimes. Orange County American Bank of Orange They include a definition of requirements for vaults County as distinguished from safes, protection standards Punta Gorda Marine Bank of Punta Gorda for cash dispensing machines, and a clarification Texas of the rules that safe deposit boxes be stored in an approved vault or safe. Houston Houston State Bank Under Regulation P, if a bank decides not to Virginia install, maintain, or operate devices to meet the Henrico County Peoples Bank and Trust minimum standards for bank security, as defined Company of Henrico in Appendix A of the Regulation, it is required Powhatan Central Virginia Bank 777 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication October 16 Industrial production increased 0.7 per cent in INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 September following a slight decline in August. The total index, at 127.4 per cent of the 1967 MATERIALS//""'^'— average, was 8.3 per cent above a year earlier. The gain in output in September reflected a partial p 1-PRODUCTS, TOTALj recovery in autos from the reduced August level and further gains in production of business equipment and industrial materials. Output in the third quarter rose at an annual rate of 6.7 per cent from the previous quarter compared with an increase of 5.5 per cent in the second quarter. Auto assemblies rose 14 per cent and were at a seasonally adjusted annual rate of 9.0 million units compared with an 8.0-million-unit rate in August. Production schedules for October indicate F.R. indexes, seasonally adjusted. Latest figures: September. a further rise in auto output. Output of most other durable consumer goods—appliances, television sets, and furniture—was maintained at record textile, paper, and chemical grouping showed only levels. Production of business equipment was up a slight gain. about 1 per cent further with increases occurring The rate of capacity utilization in major materiin most equipment-producing industries. als industries rose in the third quarter to 96.3 per Among materials, output of steel and most other cent from 94.5 per cent in the second quarter. This durable industrial materials continued to expand. high rate reflects near-capacity operations in in- Production of nondurable industrial materials, dustries such as steel, wood pulp, paper, paperhowever, rose only marginally as output of the board, and manmade fibers. Seasonally adjusted Percentage 1967 = 100 change from— Per cent changes, annual rates IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 11997722 11997733 MMoonntthh YYeeaarr YYeeaarr 1973 SSeepptt.. AAuugg.."" SSeepptt..ee aaggoo aaggoo eennddiinngg 11997733--IIIIII Ql QII QIII" Total index 117.6 126.5 127.4 .7 8.3 9.1 9.7 5.5 6.7 Market groupings: Final products 113.6 120.8 121.9 .9 7.3 8.1 10.7 5.0 3.3 Consumer goods 125.2 130.4 131.7 1.0 5.2 5.9 9.1 3.7 .3 Business equipment 109.6 123.7 124.7 .8 13.8 15.4 17.0 10.9 9.2 Materials 120.9 131.3 132.2 .7 9.3 10.1 9.4 7.0 9.0 Industry groupings: Manufacturing 117.0 125.9 126.9 .8 8.5 9.4 10.0 7.5 5.4 Durables 111.6 122.5 123.7 1.0 10.8 12.0 12.5 10.4 4.6 Nondurables 124.8 130.8 131.6 .6 5.4 6.1 7.3 3.1 6.5 Mining & utilities 126.5 131.2 132.9 1.3 5.1 5.1 3.2 - .8 13.2 p Preliminary. e Estimated. 778 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A7 1F EDERAL RESERVE BULLETIN • OCTOBER 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 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 103 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 N.S.A. Monthly (or quarterly) figures not adjusted e Estimated for seasonal variation c Corrected IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets L Liabilities rp Revised preliminary S Sources of funds I, II, U Uses of funds III, IV Quarters * Amounts insignificant in terms of the parn.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 characissues 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: Annually 1961-72 Sept. 1973 A-70—A-71.13 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 • OCTOBER 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- Held Other stock Rights rency under Loans Float 2 F.R. Total 4 certificate out- Bought repur- assets 3 stand- Total out- chase ing right agreement Averages of daily figures 1939—Dec 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6.841 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—De c 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Sep t 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—Ja n 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 A M p a r r 7 7 5 4 , , 3 0 5 1 3 9 7 7 4 3 , , 9 6 1 2 4 4 4 3 3 9 9 5 1 1, , 8 7 58 2 1 2 2 , , 3 3 1 8 9 7 1,0 8 4 3 3 9 7 8 9 0 , , 2 5 1 4 9 2 1 1 0 0 , , 4 4 1 1 0 0 4 4 0 0 0 0 8 8 , , 4 4 0 4 6 4 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 2,143 2,566 1,018 82,445 10,410 400 8,549 Sept.f 76,073 75.712 361 1,862 2,904 889 81,790 10,410 400 8,584 Week ending— 1973—July 4 77,758 76,564 ,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 2,133 2,691 772 82,027 10,410 400 8,549 29 76,839 76,539 300 2,561 2,044 748 82,273 10,410 400 8,554 Sept. 5 77,382 76,828 554 2,363 1,756 781 82,349 10,410 400 8,568 12 74,723 74,600 123 1,488 3,402 834 80,490 10,410 400 8,574 19* 75,085 75,085 1,707 3,828 901 81,558 10,410 400 8,586 26p 76,499 76,287 212 2,191 2,566 942 82,259 10,410 400 8,592 End of month 1973—July 78,821 7 77,750 1,071 2,225 2,171 ,307 84,656 10,410 400 8,546 Aug 77,953 8 76,984 969 2,842 1,605 750 83,234 10,410 400 8,585 Sept.* 77,900 8 76,469 1,431 1,559 2,462 974 83,040 10,410 400 8,599 Wednesday 7 76,787 1973—July 4 79,148 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 2 5 76,877 8 76,591 286 2,032 3,604 1,272 83,870 10,410 400 8.543 Aug. 1 78,546 8 77,747 1,377 3,450 1,351 84,876 10,410 400 8,540 8 74,287 9 74,287 1,429 3,198 1,363 80,325 10,410 400 8.544 12 74,066 9 74,066 2,531 4,022 770 81,435 10,410 400 8,548 22 76,594 9 76,016 578 3,035 3,249 752 83,729 10,410 400 8,552 29 75,966 9 75,966 3,467 2,449 797 82,725 10,410 400 8,557 Sept. 5 p 75,896 9 75,896 1,342 2,308 819 80,406 10,410 400 8,573 12* 75,007 9 75,007 1,279 3,839 865 81,028 10,410 400 8,577 19 p 74,820 9 74,820 2,286 4,318 950 82,410 10,410 400 8,590 26 p 76,969 9 76,346 623 4,520 2,945 996 85,487 10,410 400 8,595 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 « Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R. full with Federal Reserve Banks in connection with voluntary participaliabilities 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

OCTOBER 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 rr cc CC tt cc ee uu ii ii ii nn uu oo nn ll rr aa cc nn rr -- yy -- -- TT hh cc ii uu rr oo nn aa ee rr ll gg ss aa yy dd hh ss ss -- -- Tr u e r a y s - with r e F s F e . e R i o g r r . v n - e B s, a nks Other 2,5 c O o F u a t . h c n R - e t . r s 3 c b a O F i a p l l t . i n i i h a R t t d i e - a . e r l s 3 W F. i R th . re r C s a e e n n u r d c r v y - e s Total 7 Period or date Banks coin6 Averages of daily figures 7,609 2,402 616 731 9 248 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. 62,913 320 938 190 619 2,240 27,224 5,779 33,003 1972—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 27,377 6,296 33,785 Aug. 68,592 349 792 332 781 2,848 27,490 6,401 33,999 Sept.? Week ending— 68,048 373 3,614 308 740 2,850 26,989 6,227 33,328 1973—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 5 780 2,780 27,576 6,139 33,827 25 68,051 324 2,928 407 5 818 2,903 27,567 6,372 34,051 Aug. 1 68,311 334 2,773 275 5 816 2,957 26,859 6,484 33,455 8 68,619 347 1,413 314 5 878 2,704 27,201 6,514 33,827 15 68,463 353 919 348 884 2,826 27,593 895 33,600 22 68,208 345 1,649 286 782 2,944 27,425 259 33,796 29 68,499 343 1,095 271 787 3,069 27,663 346 34,121 Sept. 5 68,955 340 2 336 758 2,661 26,822 591 33,525 12 68,716 343 354 364 859 2,759 27,559 208 33,879 19 p 68,343 355 1,326 373 746 2,875 27,643 381 34,136 26 p End of month 68,323 223 2,865 280 5 821 3,005 28,495 6,372 34,979 July 68,376 346 848 259 5 760 3,086 28,955 6,346 35,413 Aug. 68,193 373 1,624 250 5 798 3,021 28,190 6,512 34,786 Sept.? Wednesday 68,509 375 3,161 252 743 2,920 29,297 6,227 35,636 1973—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 5 766 2,803 27,753 6,139 34,004 25 68,259 331 2,281 250 5 778 2,994 29,333 ,372 35,817 Aug. 1 68,672 352 2,302 285 5 827 2,644 24,597 ,484 31,193 8 68,773 354 * 409 5 808 2,747 27,703 ,514 34,329 15 68,450 356 1,968 277 5 772 2,846 28,422 ,895 34,429 22 68,444 346 1,431 257 5 740 3,082 27,792 6,259 34,163 29 68,965 346 1,102 284 5 741 3,011 25,340 6,346 31,798 Sept. 5p 69,071 347 2 277 5 776 2,687 27,255 6,591 33,958 12 * 6 6 8 8 , ,6 4 5 5 8 3 3 3 5 7 8 2 1 1 , , 1 1 2 0 5 5 4 4 5 1 9 1 5 5 1 ,0 6 1 7 0 0 2 2 , , 9 7 4 8 5 6 2 30 7 , , 8 4 6 8 9 2 6 6 , , 3 2 8 0 1 8 3 3 7 3 , , 3 8 6 0 2 2 2 1 6 9 p P 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; Q4, $84 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

A 6 BANK RESERVES AND RELATED ITEMS • OCTOBER 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Excess Borrow- Borrow- Excess Borrow- Excess Borrowheld1 quired sonal ings ings ings ings 1939—Dec 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec 12,812 9,422 3,390 5 989 295 1,303 1 804 4 1945—Dec 16.027 14.536 1,491 334 48 192 14 418 96 1,011 46 1950—Dec 17,391 16,364 1,027 142 125 58 232 50 663 29 1960—Dec 19,283 18,527 756 87 29 19 100 20 623 40 1965—Dec 22,719 22,267 452 454 41 111 23 67 228 330 92 1967—Dec 25,260 24,915 345 238 18 40 13 50 105 267 80 j 968—Dec 27,221 26,766 455 765 100 230 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 -35 22 174 42 1972—Sep t 33,003 32,841 162 514 29 136 12 -2 195 136 171 Oct 33,803 33,556 247 574 61 59 22 45 24 240 140 230 Nov 31,774 31,460 314 606 4 64 -14 19 -1 248 -5 275 Dec 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Ja n 32,962 32,620 342 1,165 95 193 108 -33 578 -1 286 Feb 31,742 31.537 205 1,593 -13 324 105 -33 693 -28 471 Mar 31,973 31,678 295 1,858 72 176 102 7 857 -47 723 Apr 32,277 32,125 152 1,721 5 38 146 9 -111 828 45 738 May 32,393 32,275 118 1,786 30 -35 110 6 12 -65 881 40 783 June 32.028 31,969 59 1,789 77 -62 145 -4 28 -78 904 37 712 July 33,542 33,199 343 2,051 124 144 135 22 67 -23 855 88 994 Aug 33,785 33,539 246 2,143 163 37 109 -7 53 6 754 98 1,227 Sept.*' 33,999 33,781 218 1,862 147 25 114 16 62 5 712 64 974 Week ending— 1972—Sept. 6.. 33,362 32,566 796 837 328 260 80 4 194 329 194 244 13.. 32,520 36,635 -115 149 -83 -33 4 -130 13 131 132 20.. 33,017 32,811 206 717 51 345 29 28 -9 241 135 103 27.. 33,053 33,016 37 550 -49 59 -32 17 18 260 100 214 1973—Mar. 7.. 32,058 31.717 341 1,688 92 242 43 99 695 -15 652 14.. 31,555 31,532 23 1,491 -48 178 -25 113 -112 623 -71 577 21.. 31.962 31,713 249 2,139 56 225 3 104 -3 1,077 -86 733 28.. 31,671 31,578 93 2,013 -46 28 130 -66 951 -75 904 Apr. 4.. 32,619 32,082 537 1,754 169 144 18 99 865 79 737 11.. 31,759 31,845 -86 1,502 -184 24 -14 -90 775 30 690 18.. 32,624 32,390 234 1,845 146 306 2 -104 841 18 696 25.. 32,398 32,062 336 1,646 80 45 20 11 795 53 788 May 2.. 32,504 32,271 233 1,875 16 56 222 19 -63 868 49 779 9.. 32,246 32,327 -81 1,484 18 -75 182 -50 -137 580 9 689 16.. 32.963 32,600 363 1,814 23 49 123 42 6 993 94 689 2 3 3 0 . . . . 3 3 2 2 , , 2 3 2 0 6 2 3 3 2 2, , 1 0 7 6 8 0 1 1 6 24 6 2 1 . , 4 6 0 8 1 9 4 3 6 2 33 7 14 3 4 0 -2 2 7 7 - - 4 8 9 9 1,2 8 8 1 3 5 -5 4 9 9 8 6 4 3 4 June 6.. 32,218 31,817 401 1,664 64 62 200 34 47 88 689 45 728 13.. 31,597 31,595 2 1,700 67 -78 31 -1 18 -102 953 11 698 20.. 32,302 32,121 181 1,930 71 92 262 -24 9 -113 965 54 694 27.. 32,224 32,000 224 1,848 93 -42 107 -7 60 1,028 41 713 July 4.. 33,328 32,697 631 2.402 111 190 454 57 195 103 917 169 836 11.. 32,507 32,527 -20 1,680 117 -131 115 -51 28 -52 759 102 778 18.. 33,723 33,262 461 1,720 117 232 -2 13 10 851 109 856 25., 33,827 33,793 34 2,081 128 -150 50 56 24 -26 842 42 1,165 Aug. 1. 34,051 33,552 499 2,095 141 266 12 -5 785 114 1,222 8. 33,455 33,381 74 2,006 158 -40 90 24 41 -68 741 46 1,134 15. 33,827 33,511 316 1,914 148 24 50 -3 54 21 656 162 1,154 22. 33,600 33,558 42 2,133 163 -24 172 2 36 -84 712 36 1,213 29. 33,796 33,673 123 2,561 185 -47 137 -21 68 2 948 77 1,408 Sept. 5. 34,121 33,644 477 2,363 168 201 143 29 117 29 799 106 1,304 12. 33,525 33,401 124 1,488 145 -46 32 -5 20 -38 590 101 846 19 p 33,879 33.718 161 1,707 139 -6 91 15 -8 759 64 842 26^ 34,136 34,068 68 2,191 150 -30 217 127 -44 857 19 990 1 Beginning with week ending Nov. 15, 1972, includes $450 million of parallel the previous "Reserve city" and "Country" categories, respectively reserve deficiencies on which F.R. Banks are allowed to waive penalties (hence the series are continuous over time). for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies NOTE.—Monthly and weekly data are averages of daily figures within included are (beginning with first statement week of quarter): Ql, $279 the month or week, respectively. Beginning with Jan. 1964 reserves are million; Q2, $172 million; Q3, $112 million; Q4, $84 million. estimated except for weekly averages. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks Borrowings at F.R. Banks: Based on closing figures. for reserve-requirement purposes has been based on size of bank (net Effective Apr. 19, 1973, the Board's Regulation A, which governs lenddemand deposits of more than $400 million), as described in the Bulletin ing by Federal Reserve Banks, was revised to assist smaller member banks for July 1972, p. 626. Categories shown here as "Large" and "All other" to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Less— Reporting banks and week ending— Excess Net re- Bor- inter- serves 1 rowings bank at F.R. Federal Banks funds trans. Total—46 banks Aug. 269 253 7,003 8.. 152 361 7,477 15.. 85 299 8,401 22.. -29 250 8,015 29.. -45 365 6,319 Sept. 5. 225 461 6,079 12. 100 164 9,639 19. 95 270 9,184 26. 531 8,006 8 in New York City Aug. 1 115 22,,337777 51 90 22,,227766 15. 27 36 22,,666644 22. 109 33,,445500 29. -63 64 22,,555555 Sept. 5. 159 143 2,092 12. 35 3,506 19. 22 3,617 26. 15 2,855 38 outside New York City Aug. 1 . 155 8. 102 15. 58 22. -29 29. 17 Sept. 5. 65 12. 65 19. 73 26. 6 5 in City of Chicago Aug. 1. 14 8. 42 15. 3 22. -26 29. -9 Sept. 5. 19 12. 12 19. 19 26. 33 others Aug. 140 8. 60 15. 55 22. -4 29. 26 Sept. 5 47 12. 53 19. 54 26. 7 Osoo Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net- Gross transactions Net transactions Total Bor- S d u e r o f p i r c l u it s r P e e q a r u o v c f i g r e . e n d t ch P a u s r e - s Sales t a w c tr o t a i - o n w n s a s - y 2 b c o h P u f a y u n i s r n e e - t g s s o b S e f a l a l n n l i e n k e s g s t d L ea o t l a o e n rs s 3 de f r i a r n o o l w g e m s r - s 4 lo N a e n t s reserves banks -6,987 47.5 14,106 7,013 4,747 9,269 2,266 1,379 564 815 -7,687 52.3 14,166 6,689 4,715 9,451 1,974 1,867 460 1,407 -8,614 58.0 14,242 5,841 4,659 9,583 1,183 2,240 503 1,737 -8,294 55.8 14,068 6,052 4,431 9,637 1,622 1,829 475 1,354 -6,730 42.2 13,394 7,075 4,649 8,745 2,426 1,560 391 1,169 -6,315 42.3 13,536 7,457 5,098 8,437 2,359 1,713 401 1,313 -9,704 65.3 15,918 6,278 5,003 10,915 1,275 3,258 540 2,718 -9,359 62.0 15,746 6,562 4,787 10,958 1,774 2,963 404 2,559 -8,545 56.8 15,028 7,023 4,619 10,409 2,403 1,877 372 1,505 -2,262 38.1 4,376 2,000 1,264 3,112 736 638 274 364 -2,315 39.1 4,104 1,829 1,437 2,667 392 860 268 592 -2,673 44.9 4,051 1,386 1,223 2,828 164 854 352 502 -3,559 59.1 4,550 1,100 1,033 3,517 67 935 283 652 -2,681 44.4 3,928 1,376 1,208 2,720 165 811 258 553 2,092 -2,075 34.7 3,713 1,622 1,538 2,175 84 981 299 681 3,506 -3,471 58.7 4,841 1,335 1,236 3,605 99 1,399 279 1,120 3,617 -3,687 60.5 4,990 1,373 1,072 3,919 302 1,485 219 1,267 2,855 -3,050 50.6 4,081 1,227 1,226 2,855 1,038 205 833 253 4,627 -4,725 53.9 9,640 5,013 3,483 6,157 1,530 741 291 451 271 5,202 -5,372 61.3 10,062 4,860 3,278 6,784 1,582 1,007 192 815 263 5,736 -5,941 66.8 10,191 4,455 3,436 6,755 1,019 1,386 151 1,235 141 4,565 -4,736 53.6 9,517 4,952 3,398 6,120 1,555 895 192 702 301 3,765 -4,048 45.8 9,467 5,702 3,441 6,026 2,261 748 133 615 318 3,987 -4,240 47.4 9,823 5,835 3,561 6,262 2,275 733 101 631 164 6,134 -6,233 69.8 11,077 4,943 3,767 7,310 1,176 1,859 261 1,598 178 5,567 -5,672 63.0 10,755 5,188 3,716 7,040 1,472 1,478 186 1,292 350 5,151 -5,494 60.9 10,947 5,796 3,393 7,554 2,403 839 166 672 43 111,,,333111222 -1,341 85.7 2,391 1,079 915 1,476 164 489 489 111,,,999777555 -1,933 122.6 2,767 793 672 2,095 121 493 493 43 111,,,999444777 -1,987 121.0 2,686 739 653 2,033 86 504 504 111,,,777333555 -1,700 109.7 2,411 676 572 1,839 104 492 492 43 111,,,666111888 -1,670 103.8 2,348 729 644 1,704 86 512 512 71 111,,,999444666 -1,999 121.3 2,677 730 670 2,006 60 520 520 222,,,555666444 -2,552 153.2 3,236 672 663 2,573 9 529 529 222,,,444000222 -2,383 142.8 3,124 722 663 2,462 59 555 555 85 222,,,999222888 -3,013 186.1 3,670 743 694 2,976 48 545 545 210 3,314 -3,384 47.0 7,249 3,934 2,568 4,681 1,366 253 291 -38 271 3,227 -3,439 47.9 7,295 4,067 2,606 4,689 1,462 514 192 322 220 3,789 -3,954 54.5 7,506 3,717 2,783 4,722 933 882 151 731 141 2,831 -2,976 41.1 7,107 4,276 2,826 4,281 1,451 403 192 211 258 2,146 -2,379 32.9 7,119 4,973 2,797 4,322 2,176 236 133 103 246 2,041 -2,241 30.7 7,146 5,105 2,890 4,256 2,215 213 101 111 164 3,570 -3,681 50.6 7,841 4,271 3,104 4,738 1,167 1,331 261 1,070 178 3,165 -3,289 44.8 7,631 4,466 3,053 4,578 1,413 923 186 737 265 2,223 -2,481 33.5 7,277 5,053 2,698 4,578 2,355 294 166 128 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 • OCTOBER 1973 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Sees. 13 and 13a i Under Sec. 10(b) 2 last par. Sec. 13 3 Federal Reserve Bank S R e a p 1 t 9 t e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pr r e a v t io e us S R e a 1 p t 9 t e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pr r e a v t io e us S R e a 1 p 9 t t e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pre ra v t io e us A R P C B N h t o i l e e c l w i s a v h l t a n e o m Y d l t n a a o e o n n l r p d d k h ia.. 7 m 7 7 m m * * * 4 4 4 A A A A A A u u u u u u g g g g g g . . . . . . 2 1 1 1 1 1 3 6 4 4 4 4 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 3 3 3 3 3 3 A A A A A A u u u u u u g g g g g g . . . . . . 2 1 1 1 1 1 3 4 4 6 4 4 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 3 3 3 3 3 3 m 7 m m 7 7* * * 4 4 4 4 4 4 9 9 9 9 m 9 1 * * * * / 4 4 4 4 2 A A A A A A u u u u u u g g g g g g . . . . . . 2 1 1 1 1 1 3 4 4 4 4 6 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 3 3 3 3 3 3 C St h . i L ca o g u o i s m W i A Au u g g . . 1 14 4 , , 1 1 9 9 7 7 3 3 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 7 m *4 4 4 9 9 * * 4 4 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 K D M Sa a a i n l n n l a s n F a s e r s a a p n C o c i i l t s i y s c . o . . . 7 m m 7 * * 4 4 A A A A u u u u g g g g . . . . 1 1 1 1 4 4 4 4 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 3 3 3 3 A A A A u u u u g g g g . . . . 1 1 1 1 4 4 4 4 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 3 3 3 3 m m 7 m *4 4 4 4 9 9 9 9* * * * 4 4 4 4 A A A A u u u u g g g g . . . . 1 1 1 1 4 4 4 4 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 3 3 3 3 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. li/z 1*4 1959—Mar. 6 2*4-3 3 1970—Nov. 11 534-6 6 16 3 3 13 534-6 534 11995555——AApprr.. 14 1*4-134 1*4 May 29 3 -3*4 31/2 16 534 53/4 A M u a g y . 1 1 4 2 5 2 5 2 1 1 1 * 3 3 4 4 4 13 - - - - 1 2 2 2 4 3 * * * / 4 4 4 4 2 2 1 1 1 3 3 3 4 4 4 1960— J S j u e u p n ne t e . 1 1 1 1 3 1 2 8 0 3 3 3 1 * 1 4 / 3 / 4 2 2 V - - - 4 4 42 4 4 4 3 *4 1971—J D a e n c . . ^ 8 1 4 5 5 5 * * * 5 4 4 4 * - - - 5 5 5 4 3 3 * 4 4 4 5 5 5 5 3 * * 14 4 4 4 S N e o p v t . . 2 1 1 3 9 3 8 2 21 / 2 2 4 1 1 - - / / 2 2 4 2 1 * / 4 2 2 2 2 2 * * * * 4 4 4 4 S A e u p g t . . 1 1 9 2 4 3 3% -3% 3 3 3 3 * i4 4 2 2 1 1 9 9 5 2 5 5 5 5 * - - 5 5 4 1 * / 4 4 5 5 5 5 1 1 / / 4 4 11995566——AApprr.. 13 21/2-3 234 1963—July 2 1 6 7, , 3 31 -3 4 i/ 2 3 31 * / 4 4 Feb. 1 1 3 9 4 43 3 4 4 -5 5 4 34 Aug. 2 2 0 4 2 23 3 , 4 4 - - 3 3 2 3 3 4 1964—Nov. 24, 3*4-4 4 July 2 1 3 6 5 4 34-5 5 5 31 3 3 30, 4 4 Nov. 11 434-5 5 1965—Dec. 6, 4 -41/2 41/4 19 434 434 11995577——AAuugg.. 9 3 -3*4 3 13, 41/2 41/2 Dec. 13 4*4-434 434 23 31/2 3*4 1 7 41/2-434 4*4 Nov. 15 3 -3*4 3 1967—Apr. 7, 4 -41/2 4 2 4 4*4 Dec. 2 3 3 Nov. 2 1 0 4 , 4 4 -41/2 4 41 /2 1973—Jan. 15 5 5 1958—J A A S M M O a e p u c n a a p t r g r y . t . . . . . 2 2 2 2 1 1 1 4 1 2 9 7 4 3 5 2 2 2 2 2 2 1 1 1 3 3 * 3 ^ * % 2 2 4 4 4 4 1 4 - - 3 1 2 - - 3 - - - - / 2 2 4 2 2 3 3 4 * 3 1 4 / 4 2 2 2 2 2 2 2 2 3 1 1 1 3 3 3 3 * 1 * / 4 4 4 4 4 4 4 1 1 9 9 6 6 8 9 — — A D M A A p p u e a c r r g r . . . . . 2 2 2 1 2 1 1 1 3 7 2 8 5 9 6 0 4 6 0 , 4 5 5 5 5 1 1 1 1 / 4 / 4 5 5 5 5 / 2 4 2 1 1 1 * - - - - - 5 5 / / / 5 4 5 6 2 2 2 1 1 1 / , 2 4 4 4 4 5 5 5 5 5 5 6 5 1 1 1 * * * V % / / / 4 4 4 2 4 4 i J A J M A F M u u e p u a a n l b r y g r y e . . . . 2 2 2 1 1 1 1 1 3 2 4 6 3 2 1 4 1 5 8 7 6 5 5 5 1 3 / 7 6 7 6 2 5 4 5 * * - * 3 - - - - 5 7 6 6 5 4 4 * 4 3 * * * / 4 4 4 4 7 7 6 7 6 6 6 5 5 5 5 * * * * * 3 * * 4 4 4 4 4 4 4 4 Nov. 7 21/2 2*4 6 6 In effect Sept. 30, 1973... 7*4 7*4 NOTE.—Rates under Sees. 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

OCTOBER 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 i Reserve city Other Other time date Other time Sav- 0-2 2-10 10-100 100-400 Over Sav- Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 0-5 5 0-5 5 6 In effect 1972—Nov. 9.. 10 12 716% 17% 83 »5 Jan. 1,1963. 16% 12 Nov. 16. 13 1966—J S u e l p y t . 1 8 4 , , 2 15 1 . . 1973—July 19.. 10% 12% 13% 18 1967—Mar. 2.... 3% 3% In effect 1968—J M an ar . . 1 1 1, 6 . 1 . 8 .. . 16% 17 12 12% 3 3 Sept. 30, 1973 10% 12% 13% 18 1969—Apr. 17.... 17 17% 12% 13 1970— Oct. 1 Present legal requirement: Minimum Maximum Net demand deposits, reserve city banks. 10 22 Net demand deposits, other banks 7 14 Time deposits 3 10 1 When two dates are shown, the first applies to the change at reserve 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 supapplies 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, effective Sept. 20, 1973, member banks are puted on the basis of net balances due from domestic offices to their foreign subject to an 11 per cent marginal reserve requirement against increases branches above a specified base and against foreign branch loans to U.S. in the aggregate of (a) outstanding time deposits of $100,000 and over, residents, which until June 21,1973, were also maintained above a specified (b) outstanding funds obtained by the bank through issuance by a bank's base. The reserve-free base relating to net balances due from domestic affiliate of obligations subject to the existing reserve requirements on time banks to foreign branches is being reduced gradually beginning July 5, deposits, and (c) funds from sales of finance bills. The 11 per cent require- 1973, and will be eliminated by April 1974. The applicable reserve per- ment applies to balances above a specified base, but is not applicable to centage, originally 10 per cent, was increased to 20 per cent on Jan. 7,1971, banks that have obligations of these types aggregating less than $10 million. and effective June 21, 1973, was reduced to 8 per cent. Regulation D im- For the period June 21 to Aug. 30, 1973, (a) included only single-maturity poses a similar reserve requirement on borrowings above a specified base time deposits. A requirement of 8 per cent was in effect for (a) and (b) from foreign banks by domestic offices of a member bank. The reserve-free from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973. base related to this type of borrowings is being reduced gradually and will For details, see Regulation D and appropriate supplements and amendbe eliminated by April 1974. For details, see Regulations D and M and ments. appropriate supplements and amendments thereto. 7 The 16% per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 8 See preceding columns for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate reserve 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 to 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 • OCTOBER 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, Type of deposit 1966 1966 1968 1970 1970 1973 Savings deposits 4*4 4% 4% Other time deposits:1 Multiple maturity:2 30-89 days 4% 4% 4% 90 days-1 year 5 5 5 1 year to— 2 years 5% ll/i years 2 years and over '53/4' IVi years and over 4 years and over (minimum denomination of $1,000).. Single maturity: Less than $100 000: 30-89 days 5% 5 5 5 90 days-1 year 5 FC 5 5 5 1 year to— 2 years 5% 5% 5% 5V4 2 y 2 e lA ar s y e a a n r d s over '5 w "s'Va 2Yi years and over 4 years and over (minimum denomination of $1,000). $100,000 and over: 9 3 6 1 1 0 0 0 8 y 0 - - - e 1 5 8 a d 9 9 7 r 9 a d d y o d a a s r - y y a 1 s s m y s y o e r a e r 5 5 5 V % % 4 5 5 5 5 5 1 1 V % % / / I 2 2 6 6 5 6 5 % % % % 6 7 7 6 6 V f % % t 4 ( ( 7 7 6 4 4 * % ) ) 4 ( ( ( 4 4 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 6% per cent ceiling that applies to time deposits ma- For previous changes, see earlier issues of the BULLETIN. turing in 2 l/i 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. 40 50 1945—Feb. 5 July 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar, 30 1951—Jan. 16, 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 15 70 70 1958—Jan. 16 Aug. 4, 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 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-TrDec. 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

OCTOBER 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., maturity Exch. c G p h r u a o s r s e - s s G sa r l o e s s s Re t d io e n m s p- c G h p r u a o s r s e - s s G sa r l o e s s s Re t d io e n m s p- c G h p r u a o s r s e - s s G sa r l o e s s s re sh d o e if r m t s p , - c G p h r u a o s r s e - s s G sa r l o e s s s m s a h t o u i r f r t i s t y tions 1972—Aug.. 1,390 1,752 432 1,274 1,752 432 --11,,008899 7799 667733 Sept.. 9,369 8,673 850 9,369 8,673 850 Oct.. 2,795 2,425 150 2,678 2,425 150 4422 3355 Nov.. 2,638 2,880 351 2,638 2,880 300 333666000 --441111 Dec.. 5,083 4,640 135 5,083 4,640 ---111333555 1973—Jan.., 3,060 1,735 3,060 1,735 Feb.. 6,275 5,216 200 6,079 5,216 200 2255 --11,,440088 6611 33,,447766 Mar.. 3,510 2,201 200 3,510 2,201 200 Apr.. 3,685 2,101 51 3,478 2,101 51 5500 112277 May. 1,822 1,728 600 1,822 1,728 600 11,,331166 --11,,331166 June. 5,904 4,848 163 5,677 4,848 163 111777 112233 July. 5,071 3,900 60 5,045 3,900 60 222777 Aug.. 10,287 10,577 456 10,287 10,577 456 --556688 446688 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 f it h t a y s . - c G h p r a u o s r s e - s s G sa r l o e s s s o E t s r u h x r i m c f it h t a y s . - c G h p r u a o s r s e - s s G sa r l o e s s s s G e it c o i u e v s r t - , r O ig u h t t - R a m c g e h e r p a n e u s e t e r s - - r O i n g u e h t t t - , m r a c e g h n e p r a n e u e t s t e r e s - - , change1 1972—Aug.. 23 166 15 250 3,171 2,459 -82 -3 74 4 30 22 Sept.. 1,132 1,844 -866 -35 -74 -4 -30 -1,009 Oct.. 32 3,594 3,594 220 -22 7 206 Nov.. 3,547 3,547 -593 157 -6 -442 Dec.. 4,863 4,765 405 134 13 7 596 1973—Jan.. 9,719 8,928 2,116 48 11 23 2,197 F M e a b r .. . 79 -2,068 32 2 6 , , 7 0 7 2 4 4 5 3 , , 4 0 7 3 8 4 1,6 5 5 9 6 9 - -1 1 8 4 -2 6 8 1 - - 3 1 -6 9 6 5 1,6 6 3 4 6 4 A M p a r y . . . 19 11 7 5 , , 3 6 7 6 9 4 8 5 , ,9 2 7 4 8 0 -1 1 , , 3 2 6 1 7 8 - -2 1 1 9 - - 6 2 5 9 -1 7 - - 3 5 6 2 -1 1 , , 4 1 7 0 0 6 June. '37* 78 'si' -78 5,621 5,621 893 210 -17 1,085 July . 7,651 6,686 2,076 168 106 -12 78 2,416 Aug.. 100 2,234 2,492 -1,005 -20 157 -7 -41 -915 i Net change in U.S. Govt, securities, Federal agency obligations, and NOTE.—Sales, redemptions, and negative figures reduce System holdbankers' acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st o e u rl n in d g s s A c u h s il t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s a n 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 r r m k a s n Ita li l r i e a n Jap y a e n n ese g N u l e a i t l n h d d e e s r r s - f S r w an is c s s 1969—Dec. 1,967 1,575 199 60 125 4 1970—Dec. 257 154 98 4 1971—Dec. 18 3 2 8 1972—June 18 2 9 5 July. 7 1 1 7 Aug. 34 * 24 3 Sept. 122 * 85 35 Oct.. 211 * 164 16 21 Nov, 200 * 164 20 7 Dec. 192 * 164 20 6 1973—Jan.. 92 * 67 20 3 Feb. 4 * 3 Mar. 4 * 3 Apr. 4 * 3 May 4 * 3 June 4 * 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS • OCTOBER 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1973 1973 1972 Sept. 26 Sept. 19 Sept. 12 Sept. 5 Aug. 29 Sept. 30 Aug. 31 Sept. 30 Assets Gold certificate account 10,303 10,303 10,303 10,303 10,303 10,303 10,303 10,303 Special Drawing Rights certificate account 400 400 400 400 400 400 400 400 305 303 299 299 307 314 309 344 Loans: 4,520 2,286 1,279 1,342 3,467 1,559 2,842 239 Other Acceptances: 333888 36 38 41 46 333999 444777 62 111999 111000666 333777 Federal agency obligations: 111,,,555666777 1,567 1,567 1,592 1,597 111,,,555666777 111,,,555999777 1,041 111000888 111666888 222666333 U.S. Govt, securities: Bought outright: Bills 333333,,,999777777 32,451 3322,,446699 33,502 33,567 333444,,,111000000 333444,,,555888555 29,660 116699 Other NNootteess 37,374 37,374 37,374 37,374 37,374 37,374 37,374 36,703 3,428 3,428 3,428 3,428 3,428 3,428 3,428 3,511 TToottaall bboouugghhtt oouuttrriigghhtt 117744,,779999 1,2 73,253 1,2 73,440 1,2 74,304 1,2 74,369 11 7744,,990022 ii 7755,,338877 168,874 551155 11,,226633 770066 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 75,294 73,253 73,440 74,304 74,369 76,165 76,093 69,874 81,546 77,142 76,324 77,279 79,479 79,604 80,879 71,216 CCCCCCCCCaaaaaaaaassssssssshhhhhhhhh iiiiiiiiittttttttteeeeeeeeemmmmmmmmmsssssssss iiiiiiiiinnnnnnnnn ppppppppprrrrrrrrroooooooooccccccccceeeeeeeeessssssssssssssssss ooooooooofffffffff cccccccccooooooooolllllllllllllllllleeeeeeeeeccccccccctttttttttiiiiiiiiiooooooooonnnnnnnnn "8,788 "10,788 "9,836 "8,451 7.893 "7,435 6,236 10,553 212 210 210 210 210 213 210 168 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss::::::::: DDDDDDDDDeeeeeeeeennnnnnnnnooooooooommmmmmmmmiiiiiiiiinnnnnnnnnaaaaaaaaattttttttteeeeeeeeeddddddddd iiiiiiiiinnnnnnnnn fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccuuuuuuuuurrrrrrrrrrrrrrrrrreeeeeeeeennnnnnnnnccccccccciiiiiiiiieeeeeeeeesssssssss 4 4 4 5 4 4 5 122 780 736 651 604 583 757 535 760 "102,338 "99,886 "98,027 "97,551 99,179 "99,030 98,877 93,866 LLLLLLLLLiiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 60,427 60,622 61,033 60,930 60,433 60,174 60,338 54,993 DDDDDDDDDeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss::::::::: "30,869 p27,482 P27,255 "25,340 27,792 "28,190 28,955 27,515 1,125 1,105 2 1,102 1,431 1,624 848 1,394 459 411 284 257 250 259 193 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr::::::::: 277 3 670 31,010 3 741 3 740 3 805 3 760 614 3 776 "33,123 "30,008 "28,310 "27,467 30,220 "30,869 30,822 29,716 DDDDDDDDDeeeeeeeeefffffffffeeeeeeeeerrrrrrrrrrrrrrrrrreeeeeeeeeddddddddd aaaaaaaaavvvvvvvvvaaaaaaaaaiiiiiiiiilllllllllaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy cccccccccaaaaaaaaassssssssshhhhhhhhh iiiiiiiiittttttttteeeeeeeeemmmmmmmmmsssssssss 5,843 6,470 5,997 6,143 5,444 4,966 4,631 6,910 949 887 875 890 1,058 968 1,035 538 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd aaaaaaaaaccccccccccccccccccrrrrrrrrruuuuuuuuueeeeeeeeeddddddddd dddddddddiiiiiiiiivvvvvvvvviiiiiiiiidddddddddeeeeeeeeennnnnnnnndddddddddsssssssss "100,342 p97,987 "96,215 "95,430 97,155 "96,977 96,826 92,157 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 829 828 828 828 827 829 827 779 793 793 793 793 793 793 793 742 374 278 191 500 404 431 431 188 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd cccccccccaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss "102,338 "99,886 "98,027 "97,551 99,179 "99,030 98,877 93,866 CCCCCCCCCooooooooonnnnnnnnntttttttttiiiiiiiiinnnnnnnnngggggggggeeeeeeeeennnnnnnnnttttttttt llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy ooooooooonnnnnnnnn aaaaaaaaacccccccccccccccccceeeeeeeeeppppppppptttttttttaaaaaaaaannnnnnnnnccccccccceeeeeeeeesssssssss pppppppppuuuuuuuuurrrrrrrrrccccccccchhhhhhhhhaaaaaaaaassssssssseeeeeeeeeddddddddd fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccooooooooorrrrrrrrrrrrrrrrrreeeeeeeeessssssssspppppppppooooooooonnnnnnnnndddddddddeeeeeeeeennnnnnnnntttttttttsssssssss 546 551 534 522 518 548 522 261 MMMMMMMMMaaaaaaaaarrrrrrrrrkkkkkkkkkeeeeeeeeetttttttttaaaaaaaaabbbbbbbbbllllllllleeeeeeeee UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss hhhhhhhhheeeeeeeeelllllllllddddddddd iiiiiiiiinnnnnnnnn cccccccccuuuuuuuuussssssssstttttttttooooooooodddddddddyyyyyyyyy fffffffffooooooooorrrrrrrrr 27,504 27,262 27,260 27,927 28,215 27,355 28,043 29,625 Federal Reserve Notes—Federal Reserve Agents* Accounts 64,898 65,014 64,943 64,700 64,512 64,939 64,616 63,653 Collateral held against notes outstanding: 2,415 2,415 2,415 2,415 2,415 2,415 2,415 2,155 64,025 64,025 63,690 63,690 63,690 64,025 63,690 62,645 66,440 66,440 66,105 66,105 66,105 66,440 66,105 64,800 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

OCTOBER 1973 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON SEPTEMBER 30 1973 y (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a - a - C l l a e n v d e - m Ri o c n h d - At t l a a n- 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 - AAAAAAsssssssssssseeeeeettttttssssss GGGGGGoooooolllllldddddd cccccceeeeeerrrrrrttttttiiiiiiffffffiiiiiiccccccaaaaaatttttteeeeee aaaaaaccccccccccccoooooouuuuuunnnnnntttttt 1111100000,,,,,333330000033333 534 11111,,,,,666662222288888 716 816 1,100 457 2,002 492 236 42 610 1,670 SSSSSSppppppeeeeeecccccciiiiiiaaaaaallllll DDDDDDrrrrrraaaaaawwwwwwiiiiiinnnnnngggggg RRRRRRiiiiiigggggghhhhhhttttttssssss cccccceeeeeerrrrrrttttttiiiiiiffffffiiiiiiccccccaaaaaatttttteeeeee aaaaaaccccccccccccoooooouuuuuunnnnnntttttt 444440000000000 23 9999933333 23 33 36 22 70 15 7 15 14 49 FFFFFF......RRRRRR...... nnnnnnooooootttttteeeeeessssss ooooooffffff ooooootttttthhhhhheeeeeerrrrrr bbbbbbaaaaaannnnnnkkkkkkssssss 11111,,,,,444445555544444 191 333332222244444 50 65 118 236 64 36 31 46 87 206 333331111144444 17 2222277777 4 33 36 42 36 20 7 37 14 41 LLLLLLooooooaaaaaannnnnnssssss:::::: SSSSSSeeeeeeccccccuuuuuurrrrrreeeeeedddddd bbbbbbyyyyyy UUUUUU......SSSSSS...... GGGGGGoooooovvvvvvtttttt,,,,,, aaaaaannnnnndddddd aaaaaaggggggeeeeeennnnnnccccccyyyyyy oooooobbbbbblllllliiiiiiggggggaaaaaattttttiiiiiioooooonnnnnnssssss 11111,,,,,000002222288888 72 111111111166666 28 104 131 91 253 42 23 85 34 49 OOOOOOtttttthhhhhheeeeeerrrrrr 555553333311111 12 8888888888 29 99 62 75 12 4 88 40 21 AAAAAAcccccccccccceeeeeeppppppttttttaaaaaannnnnncccccceeeeeessssss:::::: BBBBBBoooooouuuuuugggggghhhhhhtttttt oooooouuuuuuttttttrrrrrriiiiiigggggghhhhhhtttttt 3333399999 3333399999 HHHHHHeeeeeelllllldddddd uuuuuunnnnnnddddddeeeeeerrrrrr rrrrrreeeeeeppppppuuuuuurrrrrrcccccchhhhhhaaaaaasssssseeeeee aaaaaaggggggrrrrrreeeeeeeeeeeemmmmmmeeeeeennnnnnttttttssssss............ 111110000066666 111110000066666 FFFFFFeeeeeeddddddeeeeeerrrrrraaaaaallllll aaaaaaggggggeeeeeennnnnnccccccyyyyyy oooooobbbbbblllllliiiiiiggggggaaaaaattttttiiiiiioooooonnnnnnssssss:::::: BBBBBBoooooouuuuuugggggghhhhhhtttttt oooooouuuuuuttttttrrrrrriiiiiigggggghhhhhhtttttt 11111,,,,,555556666677777 71 444441111199999 85 119 112 84 249 57 29 66 66 210 HHHHHHeeeeeelllllldddddd uuuuuunnnnnnddddddeeeeeerrrrrr rrrrrreeeeeeppppppuuuuuurrrrrrcccccchhhhhhaaaaaasssssseeeeee aaaaaaggggggrrrrrreeeeeeeeeeeemmmmmmeeeeeennnnnnttttttssssss............ 111116666688888 111116666688888 UUUUUU......SSSSSS...... GGGGGGoooooovvvvvvtttttt,,,,,, sssssseeeeeeccccccuuuuuurrrrrriiiiiittttttiiiiiieeeeeessssss:::::: BBBBBBoooooouuuuuugggggghhhhhhtttttt oooooouuuuuuttttttrrrrrriiiiiigggggghhhhhhtttttt 111117777744444,,,,,999990000022222 3,404 2222200000,,,,,000000000088888 4,085 5,687 5,347 4,028 11,888 2,714 1,409 3,163 3,145 10,024 HHHHHHeeeeeelllllldddddd uuuuuunnnnnnddddddeeeeeerrrrrr rrrrrreeeeeeppppppuuuuuurrrrrrcccccchhhhhhaaaaaasssssseeeeee aaaaaaggggggrrrrrreeeeeeeeeeeemmmmmmeeeeeennnnnnttttttssssss............ 11111,,,,,222226666633333 11111,,,,,222226666633333 7799,,660044 3,559 2222,,220077 4,227 55,,991111 5,689 4,265 1122,,446655 2,825 1,465 3,402 3,285 1100,,330044 CCCCCCaaaaaasssssshhhhhh iiiiiitttttteeeeeemmmmmmssssss iiiiiinnnnnn pppppprrrrrroooooocccccceeeeeessssssssssss ooooooffffff ccccccoooooolllllllllllleeeeeeccccccttttttiiiiiioooooonnnnnn.................. 88,,884455 357 11,,554444 443 337722 888 845 11,,002222 411 469 648 592 11,,225544 221133 39 77 9 2277 14 15 1177 14 34 17 12 88 OOOOOOtttttthhhhhheeeeeerrrrrr aaaaaasssssssssssseeeeeettttttssssss:::::: DDDDDDeeeeeennnnnnoooooommmmmmiiiiiinnnnnnaaaaaatttttteeeeeedddddd iiiiiinnnnnn ffffffoooooorrrrrreeeeeeiiiiiiggggggnnnnnn ccccccuuuuuurrrrrrrrrrrreeeeeennnnnncccccciiiiiieeeeeessssss............ 775577 34 220099 40 5544 57 50 111111 25 16 30 30 110011 AAAAAAllllllllllll ooooootttttthhhhhheeeeeerrrrrr 44 22 11 11 TTTTTTTToooooooottttttttaaaaaaaallllllll aaaaaaaasssssssssssssssseeeeeeeettttttttssssssss 101,894 4,754 26,040 5,512 7,312 7,938 5,932 15,788 3,838 2,265 4,237 4,644 13,634 LLLLLLLLiiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss FFFFFFFF........RRRRRRRR........ nnnnnnnnooooooootttttttteeeeeeeessssssss 61,628 3,115 15,349 3,818 4,908 5,474 3,147 10,346 2,422 1,104 2,414 2,351 7,180 DDDDDDDDeeeeeeeeppppppppoooooooossssssssiiiiiiiittttttttssssssss:::::::: 28,190 1,040 7,663 1,157 1,687 1,437 1,800 3,946 864 696 1,126 1,630 5,144 1,624 146 409 90 113 166 137 91 99 44 61 96 172 UUUUUUUU........SSSSSSSS........ TTTTTTTTrrrrrrrreeeeeeeeaaaaaaaassssssssuuuuuuuurrrrrrrreeeeeeeerrrrrrrr————————GGGGGGGGeeeeeeeennnnnnnneeeeeeeerrrrrrrraaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnntttttttt................ 250 10 3 73 12 22 12 17 38 8 5 10 13 30 OOOOOOOOttttttttAAAAAAAAhhhhhhhheeeeeeeellllllllllllllllrrrrrrrr ::::::::oooooooo tttttttthhhhhhhheeeeeeeerrrrrrrr55555555 805 2 666 16 2 25 17 41 2 3 2 5 24 30,869 1,198 8,811 1,275 1,824 1,640 1,971 4,116 973 748 1,199 1,744 5,370 DDDDDDDDeeeeeeeeffffffffeeeeeeeerrrrrrrrrrrrrrrreeeeeeeedddddddd aaaaaaaavvvvvvvvaaaaaaaaiiiiiiiillllllllaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttyyyyyyyy ccccccccaaaaaaaasssssssshhhhhhhh iiiiiiiitttttttteeeeeeeemmmmmmmmssssssss 6,376 313 1,061 264 334 638 621 858 342 349 502 399 695 968 43 289 50 69 67 53 143 32 19 38 43 122 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss aaaaaaaannnnnnnndddddddd aaaaaaaaccccccccccccccccrrrrrrrruuuuuuuueeeeeeeedddddddd ddddddddiiiiiiiivvvvvvvviiiiiiiiddddddddeeeeeeeennnnnnnnddddddddssssssss 99,841 4,669 25,510 5,407 7,135 7,819 5,792 15,463 3,769 2,220 4,153 4,537 13,367 TTTTTTTToooooooottttttttaaaaaaaallllllll lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss CCCCCCCCaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 829 33 210 41 74 46 61 130 28 20 35 45 106 793 34 207 39 72 42 55 124 27 18 33 43 99 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr ccccccccaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 431 18 113 25 31 31 24 71 14 7 16 19 62 TTTTTTTToooooooottttttttaaaaaaaallllllll lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss aaaaaaaannnnnnnndddddddd ccccccccaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss................ 101,894 4,754 2266,,004400 55,,551122 77,,331122 77,,993388 55,,993322 1155,,778888 33,,883388 22,,226655 44,,223377 44,,664444 1133,,663344 CCCCCCCCoooooooonnnnnnnnttttttttiiiiiiiinnnnnnnnggggggggeeeeeeeennnnnnnntttttttt lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttyyyyyyyy oooooooonnnnnnnn aaaaaaaacccccccccccccccceeeeeeeeppppppppttttttttaaaaaaaannnnnnnncccccccceeeeeeeessssssss ppppppppuuuuuuuurrrrrrrrcccccccchhhhhhhhaaaaaaaasssssssseeeeeeeedddddddd ffffffffoooooooorrrrrrrr ffffffffoooooooorrrrrrrreeeeeeeeiiiiiiiiggggggggnnnnnnnn ccccccccoooooooorrrrrrrrrrrrrrrreeeeeeeessssssssppppppppoooooooonnnnnnnndddddddd-------- 548 23 44 114444 2277 5500 2288 3388 8866 1199 1133 2233 2299 6688 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 6644,,993399 33,,331177 16,383 33,,888800 55,,112222 55,,771199 3,423 1100,,662266 22,,554422 1,150 2,562 22,,552211 7,694 Collateral held against notes outstanding: Gold certificate account 22,,441155 117755 335500 335500 668800 770000 115555 55 UU..SS.. GGoovvtt,, sseeccuurriittiieess 6644,,002255 33,,118855 16,650 33,,770000 44,,885500 55,,008800 3,600 1100,,110000 22,,448800 1,200 2,700 22,,558800 7,900 TToottaall ccoollllaatteerraall 66,440 3,360 16,650 4,050 5,200 5,760 3,600 10,800 2,635 1,200 2,700 2,585 7,900 1 See note 8 on p. A-5. 4 After deducting $404 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 $177 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 • OCTOBER 1973 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1973 1973 1972 Sept. 26 Sept. 19 Sept. 12 Sept. 5 Aug. 29 Sept. 30 Aug. 31 Sept. 30 Loans—Total 4,520 2,286 1,279 1,342 3,465 1,559 2,847 239 Within 15 days 4,451 2,204 1,190 1,254 3,351 1,478 2,749 232 16 days to 90 days 69 82 89 88 114 81 98 7 91 days to 1 year Acceptances—Total 57 36 38 41 46 145 84 62 Within 15 days 25 29 5 6 13 9 47 17 16 days to 90 days 32 7 33 35 33 136 37 45 91 days to 1 year U.S. Government securities—Total 7755,,229944 7733,,225533 73,440 7744,,330044 7744,,336699 7766,,116655 7766,,009933 6699,,887744 Within 15 days* 55,,222288 33,,887711 5,214 44,,119933 33,,995599 44,,552244 33,,998822 33,,770055 16 days to 90 days 1188,,332266 1188,,336688 16,494 1188,,330011 1188,,228855 1199,,884455 1199,,999955 1155,,880055 91 days to 1 year 1188,,550099 1177,,778833 18,501 1188,,557799 1188,,889944 1188,,556655 1188,,888866 1177,,888899 Over 1 year to 5 years 2222,,117711 2222,,117711 22,171 2222,,117711 2222,,117711 2222,,117711 2222,,117700 2244,,885599 Over 5 years to 10 years 99,,335588 99,,335588 9,358 99,,335588 99,,335588 99,,335588 99,,335588 66,,110022 Over 10 years 11,,770022 11,,770022 1,702 11,,770022 11,,770022 11,,770022 11,,770022 11,,551144 Federal agency obligations—Total 11,,667755 11,,556677 1,567 11,,559922 11,,559977 11,,773355 11,,886600 11,,004411 Within 15 days1 110088 2255 3300 116688 229933 2200 16 days to 90 days 9922 9922 92 77 77 9922 77 2244 91 days to 1 year 330022 330011 302 337799 337799 330022 337799 112277 Over 1 year to 5 years 661155 661155 615 662222 662222 661155 662222 552255 Over 5 years to 10 years 334477 334477 347 330077 330077 334477 330077 119977 Over 10 years 221111 .. 221111 211 225522 225522 221111 225522 114488 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts i Turnover of demand deposits (billions of dollars) PPPeeerrriiioooddd SS TT MM 22 oo 33 SS tt 33 AA aa ll '' ss L N e .Y ad . ing S 6 M o S t A h ' e s r s2 TT SS oo NN MM (( tt ee aa .. xx SS YY ll cc AA .. ll 22 )) .. '' 33 ss 22 SSMM oo 22 tthh 22 SS 66 ee AA rr '' ss SSMM TT 22 oo 33 SS tt 33 AA aa ll '' ss L N e .Y ad . ing S 6 M o S t A he 's r s2 TT SS oo NN MM (( tt ee aa .. xx SS YY ll cc AA .. ll 22 )) .. '' 33 ss 22 SSMM oo 22 tthh 22 SS 66 ee AA rr '' ss 1972—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 '8,175.3 4,763.5 93.5 229.2 93.9 62.1 50.0 Dec 14,783.7 6,604.8 3,495.4 '8,178.9 '4,683.5 90.7 215.7 95.6 61.8 48.9 1973—Jan r15,471.2 6,855.4 3,652.6 '8,615.8 '4,963.2 94.0 224.0 98.4 64.3 51.2 Feb '16,048.9 7,227.0 3,787.3 '8,821.9 '5,034.6 97.8 238.0 102.7 65.9 52.0 Mar 15,932.0 6,844.8 3,855.9 '9,087.2 '5,231.3 96.9 228.3 104.0 67.6 53.8 Apr '15,999.5 6,297.5 3,873.0 '9,071.5 '5,198.6 95.9 228.9 102.3 66.4 52.7 May '16,431.6 7,177.0 3,906.1 '9,254.6 '5,348.0 97.7 235.1 103.4 67.2 53.5 June '16,620.0 7,244.6 4,034.9 '9,395.4 '5,360,5 99.8 245.0 107.2 68.6 54.0 July '17,215.0 7,381.4 '4,278.8 '9,833.6 '5,555.7 102.5 247.5 '111.5 71.2 55.7 Aug.r 17,896.3 7,744.6 4,315.1 10,151.7 5,836.5 106.2 252.5 113.5 73.7 58.5 t 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

OCTOBER 1973 • U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1 1 1 9 9 9 4 4 4 1 5 7 2 2 1 8 8 1 . , , 5 8 1 1 6 6 5 8 0 2 2 8 0 0 , , , 1 6 0 8 2 2 3 0 0 1 1 , . 2 4 7 7 0 5 4 4 1 1 1 , . 0 0 6 3 4 9 9 8 5 7 4 6 3 4 5 2 2 1 , , , 3 1 3 1 1 5 3 5 0 2 6 6 , , , 7 2 7 3 7 8 1 5 2 2 9 9 , , , 2 5 1 0 4 1 1 5 9 7 3 8 , , , 8 0 8 3 4 5 4 4 0 2 2 , , 3 5 7 2 4 2 7 8 4 4 5 1 , , , 2 0 4 2 7 3 0 0 3 2 4 4 6 5 2 4 8 1 5 8 7 5 0 8 6 2 1 24 7 5 4 2 1 6 4 7 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 12 195 9 32,591 23,264 2,304 1,511 85 2,216 6,672 10.476 §,326 2,803 5,913 261 341 3 5 1 1 9 9 6 6 0 1 3 3 3 2 , , 9 8 1 6 8 9 2 2 4 3 , ,5 3 2 8 1 8 2 2 , , 5 42 8 7 2 1 1, , 5 5 8 3 8 3 9 8 2 8 2 2 , , 3 2 1 4 3 6 6 6 , ,6 8 9 7 1 8 1 1 0 0, , 9 5 3 3 5 6 9 9 , , 5 3 3 4 1 8 2 2 , ,8 8 1 6 5 9 5 6 , ,1 9 0 54 6 2 2 4 4 2 9 3 3 0 1 0 6 3 3 1 1 0 0 196 2 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 196 3 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 196 4 39,619 28,100 3.405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 196 5 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 196 6 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 196 7 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 196 8 50,961 36,163 5,691 2.049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 196 9 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 197 0 57.093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 197 1 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 1972—Au g 62,744 42,520 7,095 2,333 135 3.152 9,211 20,594 20,224 5,565 14^228 196 229 2 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 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 Nov 65,137 44,208 7,237 2,437 135 3,305 9,602 21,491 20,928 5,714 14,789 194 225 2 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 1973—J F a e n b 6 6 4 4 , , 6 3 9 1 6 2 4 4 3 3 , , 4 1 3 3 1 3 7 7 , , 2 2 9 7 0 4 2 2 , , 3 3 7 8 0 0 1 1 3 3 5 5 3 3 , , 2 2 1 1 3 8 9 9 , , 3 2 3 4 0 3 2 21 0 , , 0 8 9 8 1 3 2 2 1 1 , ,2 1 6 79 6 5 5 , , 7 7 5 4 5 2 1 1 5 5 , , 0 0 8 1 9 3 1 1 9 9 2 2 2 2 2 2 4 4 2 2 A M p a r r 6 6 6 5 . , 0 1 9 8 4 0 4 4 4 3 , , 3 6 1 9 3 9 7 7 , , 3 3 8 2 2 0 2 2 , , 4 3 0 6 6 8 1 1 3 3 5 5 3 3 , , 2 2 3 0 4 9 9 9 , , 4 3 4 5 7 2 2 2 1 1 , , 7 3 0 1 7 4 2 2 1 1 , , 7 4 8 8 1 2 5 5 , , 8 7 8 8 7 7 1 1 5 5 , , 4 2 7 7 6 4 1 1 9 91 0 2 2 2 23 2 2 2 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 J A J u u u l n g y e 6 6 6 8 8 7 , , , 3 2 7 7 2 7 6 3 1 4 4 4 5 5 5 , , , 5 4 5 5 2 6 3 8 4 7 7 7 , , , 5 4 5 7 9 4 7 8 2 2 2 2 , . , 4 4 4 3 4 3 0 0 3 1 1 1 3 3 3 5 5 5 3 3 3 , , , 3 2 3 0 8 0 1 8 9 9 9 9 , , , 5 6 6 6 4 0 6 8 2 2 2 2 2 2 2 , , , 5 5 4 5 0 4 7 5 4 2 2 2 2 2 2 , , , 6 8 3 5 2 4 9 2 3 6 6 6 , , , 1 1 0 4 1 2 9 6 4 1 1 1 6 6 5 , , , 2 9 1 6 0 3 3 1 0 1 1 1 8 8 89 8 8 2 2 2 1 1 2 9 9 0 2 2 2 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- NOTE.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 TTToootttaaalll,,, ooouuuttt--- HHHeeelllddd bbbyyy ssstttaaannndddiiinnnggg,,, AAss sseeccuurriittyy FFoorr FFF...RRR... 1973 1972 KKKiiinnnddd ooofff cccuuurrrrrreeennncccyyy AAAuuuggg... 333111,,, aaggaaiinnsstt TTrreeaassuurryy FF..RR.. BBBaaannnkkksss 111999777333 ggoolldd ccaasshh BBaannkkss aaannnddd cceerrttiiffiiccaatteess aanndd AAAgggeeennntttsss Aug. July Aug. AAggeennttss 31 31 31 Gold 1111100000,,,,,444441111100000 ((1100,,330033)) 110077 (((((1111100000,,,,,333330000033333))))) 22 1100,,330022 1111 pBrlpral P pcprvp nofps 6666644444,,,,,666661111177777 111444888 4444,,,,222277779999 666000,,,111888999 666000,,,000777222 555555,,,000333777 TfAacnrv piiTrpnrv Tntal 88888,,,,,555558888855555 999111 333300007777 888,,,111888666 888,,,111555111 777,,,777000777 TT"">>rr»»1111nnrrcc 777776666677777 11116666 333777 777771111144444 777771111100000 666664444444444 Frartinnal pnin 77777,,,,,222220000066666 77772222 222777000 66666,,,,,888886666633333 66666,,,,,888883333322222 66666,,,,,444445555511111 TTnitf»H Stnti»« notpt 333332222233333 2222 333332222200000 333332222200000 333332222200000 It, nrnpACC Af rptifAm^nt 3 222228888899999 222228888899999 222228888899999 222229999922222 XXrrtt++aall AAnncc»» 1111 11QQ7711 444488883333,,,,666611112222 ((((11110000,,,,333300003333)))) 333444666 111000,,,333000222 4444,,,,555588889999 6688,,337766 Tnlv 11 1971 444488883333,,,,222211114444 ((((11110000,,,,333300003333)))) 333222333 111000,,,333000222 4444,,,,333366666666 6688,,222233 Aiicr It 1972 . . . .4444 77777777,,,,666655550000 ((((11110000,,,,333300003333)))) 333000444 111000...333000222 4444,,,,333300000000 6622,,774444 1 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 • OCTOBER 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mi Mi Mi Mi Composition of measures is described in the NOTE below. 1969—Dec 208.8 392.3 594.0 214.9 397.0 598.4 1970—Dec 221.3 425.2 641.3 227.7 430.0 645.6 1971—Dec 236.0 473.8 727.7 242.8 478.7 731.9 1972—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 258.2 536.2 845.6 259.5 539.5 849.8 May 260.5 540.6 852.0 256.0 538.2 850.2 June 263.2 545.3 859.4 261.2 544.7 859.9 July 264.3 547.6 863.4 263.2 546.6 863.6 Aug r263.9 r550.5 r866.4 r260.7 r547.0 '862.8 Sept." 263.6 552.2 868.5 262.1 550.2 866.1 Week ending— Sept. 5 263.8 552.2 261.4 549.4 12" 264.0 551.9 263.5 551.2 19" 263.6 551.6 263.5 551.0 26" 261.8 550.9 259.0 547.2 Oct. 3" 226644..66 555544..66 226622..77 555522..33 NOTE.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD's of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial Mi: Mi plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see "Revision of the Money Stock Meascommercial banks. ures and Member Bank Reserves and Deposits" on pp. 61-79 of the Feb. Mr. Averages of daily figures for My 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 UUUU....SSSS.... MMMMoooonnnntttthhhh NNNooonnn--- NNNooonnn--- GGGGoooovvvvtttt,,,, oooorrrr bbbaaannnkkk bbbaaannnkkk ddddeeeeppppoooossss---wwwweeeeeeeekkkk CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt iiiittttssss 3333 rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--- rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--ddeeppooss-- tttiiiooonnnsss 222 ddeeppooss-- tttiiiooonnnsss 222 iittss iittss CD's i Other Total CD's i Other Total 1969—Dec 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—Dec 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—Dec 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—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—Jan 57.0 198.4 44.4 272.5 316.9 300.8 56.7 205.9 45.1 271.5 316.6 300.5 8.0 Feb 57.5 199.3 48.8 273.8 322.6 304.4 56.7 197.3 48.6 273.8 322.5 303.8 9.6 Mar 57.9 198.7 54.9 276.0 330.9 307.0 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 58.8 282.2 340.9 312.0 8.4 June 59.4 203.9 62.0 282.0 344.1 314.1 59.4 201.8 59.3 283.4 342.7 315.2 6.9 July 59.5 204.9 64.5 283.3 347.7 315.8 59.9 203.2 62.3 283.5 345.8 316.9 6.3 Aug 59.7 r204.2 67.0 286.6 353.6 r315.9 60.0 200.8 68.4 r286.3 r354.7 r315.8 4.0 Sept." 60.1 203.5 67.1 288.6 355.6 316.3 60.0 202.1 69.2 288.1 357.2 315.9 5.1 Week ending— Sept. 5 60.1 203.7 67.1 288.4 355.5 60.2 201.1 69.4 288.0 357.4 3.1 12" 6666600000.....00000 222220000044444.....00000 6666677777.....44444 222228888877777.....99999 333335555555555.....33333 6666600000.....44444 222220000033333.....11111 6666699999.....33333 222228888877777.....77777 333335555577777.....00000 33333.....55555 19" 6666600000.....00000 222220000033333.....55555 6666688888.....11111 222228888888888.....11111 333335555566666.....22222 6666600000.....00000 222220000033333.....55555 6666699999.....55555 222228888877777.....55555 333335555577777.....00000 44444.....99999 26" 6666600000.....00000 222220000011111.....88888 6666666666.....99999 222228888899999.....11111 333335555566666.....00000 5555599999.....55555 111119999999999.....44444 6666699999.....22222 222228888888888.....22222 333335555577777.....44444 66666.....77777 Oct. 3" 6666600000.....00000 222220000044444.....66666 6666655555.....33333 222229999900000.....00000 333335555555555.....33333 5555599999.....88888 222220000022222.....99999 6666677777.....99999 222228888899999.....66666 333335555577777.....55555 77777.....88888 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

OCTOBER 1973 • BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss44 PPPPeeeerrrriiiioooodddd NNNooonnn--- TTToootttaaalll bbbooorrr--- RRReee--- AAAvvvaaaiiilll--- Demand Demand rrrooowwweeeddd qqquuuiiirrreeeddd aaabbbllleee 222 TTiimmee TTiimmee TToottaall aanndd U.S. TToottaall aanndd U.S. SS..AA.. NN..SS..AA.. ssaavviinnggss Private Govt. ssaavviinnggss 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—Sept.... 33.33 32.87 33.14 30.89 390.4 233.0 152.4 5.1 389.6 233.8 150.9 4.9 394.5 393.8 Oct 33.83 33.30 33.60 30.97 394.1 235.1 152.7 6.3 394.1 236.2 152.5 5.4 398.4 398.4 Nov.... 31.88 31.30 31.54 29.50 397.6 237.9 152.8 6.9 396.4 237.6 153.7 5.1 401.9 400.7 Dec.... 31.31 30.06 31.07 28.86 402.0 241.2 154.3 6.5 406.8 240.7 160.1 6.1 406.4 411.2 1973—Jan 32.24 30.85 31.98 29.41 404.7 243.7 153.9 7.1 410.4 243.8 160.0 6.6 409.2 414.9 Feb 31.65 29.79 31.44 29.30 410.2 248.5 154.5 7.2 409.0 248.5 152.4 8.1 414.8 413.5 Mar 32.00 29.53 31.77 29.62 416.7 256.0 153.2 7.5 416.3 256.2 151.6 8.5 421.6 421.2 Apr 32.33 30.17 32.08 29.86 421.1 261.8 153.4 5.8 422.3 260.5 154.9 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 30.51 428.9 267.4 156.4 5.1 426.3 265.9 154.8 5.7 434.5 431.9 July.... 33.57 32.33 33.30 31.32 431.2 270.4 157.3 3.4 429.9 268.5 156.2 5.1 437.7 436.4 Aug.. .. r33.90 32.00 33.74 r31.96 436.7 r275.6 '156.9 4.2 433.7 r276.6 154.0 3.1 443.9 440.8 Sept.f.. 34.14 32.60 33.96 32.31 438.7 277.3 156.4 5.1 437.9 278.9 154.8 4.1 446.0 445.1 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in- 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as "the ad- Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy." Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. NOTE.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined "Revision of the Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits" on pp. 61-79 of the Feb. 1973 BULLETIN. and savings deposits, and (c) nondeposit sources subject to reserve re- Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial and and industrial invest- PPlluuss UU..SS.. invest- PPlluuss UU..SS.. ments1 Total 1 loans Plus Treas- Other 3 ments 1 Total 1 loans Plus Treas- Other 3 sold 2 Total loans ury sold 2 Total loans ury sold 2 sold 2 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 29O!6 108.4 111.0 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—Sept. 27 535.6 360.1 362.4 124.6 126.1 62.0 113.5 535.0 360.7 363.0 124.2 125.7 60.3 114.0 Oct. 25 540.5 366.9 369.2 126.7 128.1 59.9 113.6 540.3 365.2 367.5 125.8 127.2 60.9 114.2 Nov. 29 , , 549.8 373.6 376.1 128.2 129.8 60.6 115.6 549.9 371.8 374.3 127.6 129.2 63.2 114.9 Dec. 31 557.5 378.2 380.8 129.3 131.0 62.4 116.9 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Jan. 31*. . . 564.6 385.5 388.2 133.2 134.9 61.9 117.1 564.9 383.3 385.9 132.0 133.7 65.4 116.2 Feb. 28*. . . 573.7 396.2 399.3 138.1 140.2 60.2 117.2 569.7 392.0 395.1 136.6 138.7 61.3 116.4 Mar. 28*.... 582.6 404.9 408.0 141.8 143.8 60.6 117.2 578.3 400.6 403.8 141.7 143.7 60.7 117.0 Apr. 25*... 585 i 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 Sept. 26*. . . 613.5 436.4 441.0 155.2 158.1 55.5 121.7 612.7 436.5 441.1 154.6 157.5 54.0 122.2 1 Adjusted to exclude domestic commercial interbank loans. See also 5 Beginning June 30, 1972, commercial and industrial loans were renote 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. NOTE.—Total loans and investments: For monthly data, 1959-70, 3 Beginning June 30, 1971, Farmers Home Administration insured notes see Dec. 1971 Bulletin, pp. 974-75, and for 1948-58, Aug. 1968 BULLETIN, totaling approximately $700 million are included in "Other securities" pp. A-94-A-97. For a description of the current seasonally adjusted rather than in "Loans." series see the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial 4 Beginning June 30, 1969, data revised to include all bank-premises loans: For monthly data, 1959-71, see July 1972 BULLETIN, p. A-109; subsidiaries and other significant majority-owned domestic subsidiaries; for description see July 1972 BULLETIN, p. 683. Data are for last Wednesday earlier data include commercial banks only. Also, loans and investments of month except for June 30 and Dec. 31; data are partly or wholly estiare now reported gross, without valuation reserves deducted, rather than mated except when June 30 and Dec. 31 are call dates. net of valuation reserves as was done previously. For a description of the Data on this table have not yet been adjusted to conform with the June revision, see Aug. 1969 BULLETIN, pp. 642-46. Data shown in above table 30, 1973, Call Report benchmark. Therefore, data for the months of have been revised to include valuation reserves. 1973, do not agree with data on pp. A-18 and A-22, which are on the new basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS • OCTOBER 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 Cash lia- Bor- Class of bank assets 3 bilities rowand date Total and Total3 Demand ings U.S. capital De- Treas- Other ac- mand Time Time 5 ury counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 1947—Dec. 31 6. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,7921 240 1,343 94,367 35,360 65 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 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 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 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 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 1971—Dec. 31... 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 1972—Sept. 27... 556,380 382,100 60,290 113,990 91,660 674,780 556,490 26,880 3,890 9,470 213,070 303,180 33,530 Oct. 25... 561,280 386,190 60,930 114,160 102,830 691,880 567,620 29,040 3,760 7,520 221,440 305,860 39,680 Nov. 29... 574,230 396,160 63,210 114,860 91,460 694,050 572,160 27,060 3,920 7,760 224,990 308,430 38,350 Dec. 31... 598,808 414,696 67,028 117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 1973--Jan. 31... 591,270 409,220 65,560 ,490 96,490 716,680 589,850 29,260 3,890 10,400 228,040 318,260 42,700 Feb. 28... 599,970 421,500 61,620 ,850 99,590 729,670 598,520 29,530 4,170 11,370 227,190 326,260 45,480 Mar. 28... 608,320 429,400 61,180 740 90,980 729,250 596,690 25,960 4,530 11,390 220,290 334,520 45,420 Apr. 25... 616,480 437,520 60,400 560 91,580 738,740 604,570 26,220 4,880 10,910 225,170 337,390 45,830 May 30... 622,340 444,120 58,330 890 95,410 749,470 611,920 27,770 5,250 5,810 229,050 344,040 47,360 June 30... 635,756 456,780 57,877 099 103,608 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 July 25*.. 634,220 456,480 56,360 380 95,880 761,870 618,670 28,710 5,830 6,750 228,310 349,070 52,580 Aug. 29*.. 640,100 462,630 54,720 750 92,010 765,200 618,440 26,500 6,620 3,460 224,450 357,410 53,150 Sept. 26*.. 645,170 466,440 54,800 930 100,020 778,090 628,670 27,700 7,190 8,210 227,870 357,700 56,180 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 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 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 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 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 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 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 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 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 1972—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 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 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 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 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 Feb. 28'.. 465,024 334,601 43,698 86,725 85,364 575,322 465,495 28,037 3,537 9,364 176,525 248,032 42,912 Mar. 28'.. 470,997 340,665 43,259 87,073 77,719 573,564 462,997 24,505 3,895 9,407 170,540 254,650 42,642 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 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 June 30... 490,533 360,908 41,080 88,545 88,227 604,414 486,770 29,311 4,879 8,167 182,439 261,975 46,529 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 Aug. 29... 494,200 365,951 38,233 90,016 78,475 600,202 478,273 24,972 5,911 2,701 172,082 272,607 49,283 Sept. 26*.. 498,334 368,854 38,372 91,108 85,795 611,366 486,957 26,163 6,480 6,740 175,018 272,556 52,486 Large member banks: New York City:** 1941—Dec. 31... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 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 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 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 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 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 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 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 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 1972—Sept. 27... 68,924 53,166 5,368 10,390 17,864 92,484 70,323 11,414 1,591 1,454 27,718 28,146 6,861 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 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 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 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 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 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 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 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 June 30... 79,212 65,428 4,661 9,124 24,518 111,028 82,718 15,340 2,773 1,115 30,607 32,883 11,597 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 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 Sept. 26... 81,900 67,694 4,075 10,131 22,531 111,675 82,016 13,069 4,019 1,073 29,656 34,199 13,729 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Class of bank lia- Borand date Cash bilities row- Total Loa l ns U.S. assets3 ca a p n i d ta l Total 3 Demand ings Treas- Other ac- De- Time Time 5 ury 2 counts4 mand U.S. Govt. Other Large member banks (cont.) 1941--Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 1945--Dec. 31 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 1947--Dec. 31 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 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 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 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 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 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 1971--Dec. 31 17,133 12,285 1,782 3,067 3,01 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1972—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 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 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 Dec. 31 21,362 16,294 1,873 3,195 3,580 26,009 19,851 1,615 160 509 7,387 10,179 3,008 1973- Jan. 31 21,026 16,371 1,562 3,093 2,939 25,035 18,709 1,364 247 358 6,605 10,135 3,276 Feb. 28 21,983 17,544 1,384 3,055 3,513 26,575 19,429 1,433 224 442 6,778 10,552 4,075 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 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 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 June 30 24,566 19,645 1,715 3,205 3,501 29,307 21,896 1,323 392 299 7,372 12,511 4,146 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 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 Sept. 26 25,948 20,717 1,683 3,548 3,853 31,299 22,138 1,525 504 303 6,480 13,326 5,814 Other large member: 8,9 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1 1 9 9 4 4 5 7 — — D D e e c c . . 3 3 1 1 4 3 0 6 , , 1 0 0 4 8 0 1 8 3 , , 5 4 1 4 4 9 2 2 9 0 , , 5 19 5 6 2 2 2 , , 0 39 4 6 2 1 1 1 3 , , 2 0 8 66 6 4 5 9 1 , , 6 8 5 9 9 8 4 4 9 6 , , 0 4 8 6 5 7 6 5 , , 4 6 1 2 8 7 2 3 2 0 8,2 4 2 0 1 5 2 2 4 8 , , 6 9 5 9 5 0 1 9 1 , , 7 4 6 2 0 3 2 1 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 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 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 1969—Dec. 31 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 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 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 1972—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 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 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 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 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 Feb. 28r. 169,711 126,893 13,957 28,861 32,497 211,396 165,150 9,365 1,210 3,942 62,627 88,006 22,434 Mar. 28 172,604 129,983 13,615 29,006 29,626 211,390 165,247 8,372 1,283 3,761 60,660 91,171 22,175 Apr. 25.. 175,754 133,253 13,414 29,087 30,1 215,262 168,360 8,470 1,285 4,069 61,487 93,049 22,606 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 June 30.. 180,663 138,452 13,066 29,144 31,899 222,344 173,183 9,177 1,371 2,988 64,875 94,771 24,032 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 Aug. 29 r. 181,404 140,151 11,572 29,681 29,551 221,043 171,725 8,467 1,459 1,051 60,607 100,141 23,670 Sept. 26^. 182,083 140,637 11,443 30,003 33,047 225,138 174,901 8,494 1,562 2,930 61,459 100,456 24,730 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 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 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 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 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 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 1969—Dec. 31?. 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 1 1 9 9 7 7 1 0 — — D D e e c c . . 3 3 1 1. . . . 1 17 5 5 4 , , 2 1 1 3 1 0 1 9 1 9 0 , , 4 35 0 7 4 2 24 2 , , 3 5 4 8 3 6 4 3 0 2 , , 5 1 1 4 1 0 2 2 5 6 , , 4 7 4 8 8 3 2 1 0 8 7 4 , , 7 63 9 5 8 1 1 6 8 1 1 , , 8 7 5 8 0 0 3 3 , , 3 8 8 5 7 3 2 1 6 3 3 5 2 2 , , 9 5 9 9 3 2 7 6 4 9 , , 0 8 7 0 2 6 1 8 0 5 0 , , 9 6 3 0 0 0 3 1 , , 1 8 1 3 8 6 1972—Sept. 27. 187,134 119,949 22,901 44,284 25,865 220,106 190,396 3,173 395 2,693 73,244 110,891 4,517 Oct. 25. 189,164 121,498 23,512 44,154 28,205 224,720 194,272 3,485 395 2,509 76,158 111,725 5,242 Nov. 29. 191,533 123,590 23,756 44,187 24,989 224,472 194,565 3,014 395 2,390 76,235 112,531 5,379 Dec. 31. 197,843 127,881 24,830 45,132 29,841 234,342 205,914 4,116 395 3,238 83,681 114,483 4,455 1973—Jan. 31.. 195,468 126,055 24,488 44,925 25,931 229,209 199,603 3,235 395 3,376 76,769 115,828 5.752 Feb. 28.. 197,603 128,535 23,894 45,174 26,295 231,780 201,349 3,199 395 3,474 76,587 117,694 6,082 Mar. 28 199,365 130,118 23,676 45,571 24,868 231,951 200,461 3,063 395 3,396 74,409 119,198 6,619 Apr. 25.. 201,351 131,964 23,435 45,952 25,121 234,358 202,710 3,035 395 2,940 76,477 119,863 6,608 May 30... 203,0841 134,243 22,495 46,346 26,594 238,037 204,432 3,318 395 2,183 77,105 121,431 7,581 June 30.. 206,092 137,383 21,638 47,072 28,309 241,736 208,974 3,471 342 3,766 79,585 121,810 6.753 July 25 . 205,657 137,060 21,938 46,659 25,910 239,796 205,480 3,178 395 2,205 77,281 122,421 8,490 Aug. 29.. 207,058 138,514 21,244 47,300 25,260 240,660 205,351 3,058 395 1,254 76,565 124,079 8,598 Sept. 26p. 208,403 139,806 21,171 47,426 26,364 243,254 207,9021 3,075 395 2,434 77,423 124,575 8,213 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS • OCTOBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membershiD Cash lia- Bor- Total Numand FDIC assets3 bilities row- ccaappiittaall bbeerr insurance Total Loans and Total3 Demand ings aacc-- ooff U.S. Other capital De- Time ccoouunnttss bbaannkkss Treas- 2 ac- mand Time 5 ury counts * 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,i 654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,18 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310.730 273,657 15,077 443 6,712 140,702 110,723 3,571 25.277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—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—Dec. 31.. 594,502 411,525 66,679 116,298 111,333 732,519 612,822 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 June 30.. 630,379 452,587 57,532 120,261 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6, 786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,: 229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—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—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 June 30.. 369,856 270,188 31,651 68,018 61,336 449,772 364,129 16,640 2 ,874 6,181 137,116 201,318 33,804 31,867 4,629 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 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 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—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 June 30.. 121,052 91,095 9,429 20,527 26,891 155,017 123,016 12,671 2,005 1,986 45,322 61,032 12,725 11,231 1,076 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—Dec. 317. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—Dec. 31.. 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Mar. 28.. 134,306 86,368 47 ,939 11,365 149,725 131,558 1,076 559 1,999 49,223 78,701 1,541 11,631 8,085 June 30.. 139,471 91,304 16,452 | 31,716 13,490 157,461 138,171 1,248 567 2,241 52,735 81,379 1,884 12,143 8,137 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 TTToootttaaalll aaasssssseeetttsss——— FFF CCC RRR lllaaa SSS aaa sss iii nnn nnn sss mmm iii ddd sss fff uuu iii eee ccc rrr FFF mmm aaa aaa DDD ttt bbb nnn iii eee ccc III ooo CCC eee rrr nnn sss hhh bbb iii yyy ppp TToottaall LLooaa ll nnss T U r u e r . S S a y e . s c - urit O ie t s h 2 er aaa CCC ssssss aaa eee sss ttt hhh sss 333 ccc ccc bbb ooo TTT aaa iii uuu aaa lll aaa lll ppp ooo iii iii nnn nnn ccc aaa ttt ttt iii ddd --- iii ttt ttt aaa --- eee sss aaa lll sss lll 444 TToottaall 33 m D I a n e n - t d e rban T k im 3 e U. D S. e n la O O nd t t h h e e r r Tim 5 e rrr BBB iii ooo nnn ooo www ggg rrr sss --- --- ccc ccc TTT aaa ooo aaa ppp ooo uuu ccc ttt iii nnn --- ttt aaa aaa ttt lll sss lll NNN bbbaaa bbb uuu ooo nnn eee fff mmm rrr kkk sss --- 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 Dcc. 31 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1971—Dec. 31 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—June 30 5,915 4,732 345 838 1,892 8,196 4,438 488 145 26 1,779 2,000 885 500 204 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? 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 Dec. 31 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 1971—Dec. 31 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—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 1973—June 30 145,386 96,036 16,797 32,554 15,381 165,657 142,608 1,736 712 2,267 54,514 83,379 2,770 12,643 8,341 1 Beginning June 30, 1966, loans to farmers directly guaranteed by 9 Regarding reclassification as a reserve city, see Aug. 1962 BULLETIN, CCC were reclassified as securities, and Export-Import Bank portfolio p. 993. For various changes between reserve city and country status in fund participations were reclassified from loans to securities. This reduced 1960-63, see note 6, p. 587, May 1964 BULLETIN. (See also note 8.) "Total loans" and increased "Other securities" by about $1 billion. "Total 10 Beginning May 6, 1972, two New York City country banks, with loans" include Federal funds sold, and beginning with June 1967 securities deposits of $1,412 million, merged and were reclassified as a reserve city purchased under resale agreements, figures for which are included in bank. (See also note 8.) "Federal funds sold, etc.," on p. A-22. Beginning June 30, 1971, Farmers Home Administration notes are NOTE.—Data are for all commercial banks in the United States (includclassified as "Other securities" rather than "Loans." As a result of this ing Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to "Other securities" all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; and nondeposit trust companies. See also table (and notes) at the bottom of p. A-30. For the period June 1941-June 1962 member banks include mutual 2 See first two paragraphs of note 1. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 3 Reciprocal balances excluded beginning with 1942. and one through June 1962. Those banks are not included in insured 4 Includes items not shown separately. See also note 1. commercial banks. 5 See third paragraph of note 1 above. Beginning June 30, 1969, commercial banks and member banks exclude « Beginning with Dec. 31,1947, the series was revised; for description, a small national bank in the Virgin Islands; also, member banks exclude, see note 4, p. 587, May 1964 BULLETIN. and noninsured commercial banks include, through June 30,1970, a small 7 Figure takes into account the following changes beginning June 30, member bank engaged exclusively in trust business; beginning 1973, 1969: (1) inclusion of consolidated reports (including figures for all bank- excludes one national bank in Puerto Rico. premises subsidiaries and other significant majority-owned domestic Comparability of figures for classes of banks is affected somewhat by subsidiaries) and (2) reporting of figures for total loans and for individual changes in F.R. membership, deposit insurance status, and the reserve categories of securities on a gross basis—that is, before deduction of classifications of cities and individual banks, and by mergers, etc. valuation reserves—rather than net as previously reported. Data for national banks for Dec. 31, 1965, have been adjusted to make 8 Beginning Nov. 9,1972, designation of banks as reserve city banks for them comparable with State bank data. reserve-requirement purposes has been based on size of bank (net demand Figures are partly estimated except on call dates. deposits of more than $400 million), as described in the BULLETIN for For revisions in series before June 30, 1947, see July 1947 BULLETIN, July 1972, p. 626. Categories shown here as "Large" and "All other" paral- pp. 870-71. lel the previous "Reserve city" and "Country" categories, respectively (hence the series are continuous over time). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS • OCTOBER 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b C a l n a k s s a o n f d lo T a a o n n t d s a l 1 f F u er e n a d d l - s C m o e m r- - Agri- o p s r u e r c c c u F a h r r o a r i r t s y i i i e n n s g g in f s in ti a T t n u o c t i i a o l n s Real Ot t h o e r, U s . e S c . u T ri r t e i a es s u 6 r y S a t n a d te call date invest- sold, Total cial cul- in- Other local Other ments etc. 2 and tur- To di- 5 govt, secuin- al 5 bro- vid- Bills secu- rities 5 d tr u ia s- l k an er d s ot T h o e rs Banks Others uals3 Total ce a r n t d if i- 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 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1972—Dec. 3110 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028 89,504 27,579 1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877 91,312 29,787 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 ,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 ,912 21,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 14,274 37,583 18,012 ,610 823 1,190 114 9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621 1972—Dec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6,115 23,277 98,204 86,912 66,679 89,173 27,125 1973—Mar. 28. 606,852 25,931 402,305 —June 30.. 630,379 26,162 426,425 148,825 7 j 2954 ',727 9,060 27,574 108,008 94,060 57,532 90,967 29,293 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 1947—Dec. 31.. 97,846 32,628 16,962 ,046 811 1,065 113 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1972—Dec. 31 io 466,169 19,961 309,969 112,110 8,495 10,863 3,870 5,783 22,026 73,131 64,490 9,201 48,715 69,640 17,884 1973—Mar. 28. 472,546 19,090 322,778 —June 30.. 490,908 19,705 341,577 127,194 7, i 03 4,i22 8,634 26,258 79,840 69'006 9,953 41,080 69,374 19,172 New York City: 11 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 1972—Dec. 31 io 75,034 812 57,901 27,864 50 7,057 841 2,271 6,413 5,789 5,225 2,390 5,696 9,107 ,518 1973 — — J M u a n r e . 3 2 0 8 .. . 7 7 9 6 , , 2 7 1 9 2 0 1 1 , , 6 3 7 9 4 4 6 6 1 4, , 0 0 3 2 3 1 31,880 4*563 'Hi 3,776 ,776 6,352 5,158 2,676 4,661 7,224 1,900 City of Chicago:11 1941—Dec. 31.. 2,760 954 732 6 48 52 22 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 4,213 ,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 3 73 87 46 149 2,890 367 248 2,274 213 185 1972—Dec. 31 io 21,362 718 15,576 7,851 140 ,330 282 341 2,780 1,066 1,138 648 1,873 2,820 375 1973—Mar. 28. 22,639 1,367 16,750 —June 30.. 24,566 1,097 18,549 10,034 843 * 313 598 3,558 1,146 1,207 1,715 2*796 409 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 "3 87 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 ,053 1972—Dec. 31 io 171,618 9,927 116,802 44,483 ,977 2,024 2,716 10,268 27,014 22,669 3,943 16,316 24,049 4,523 1973—Mar. 28. 173,016 7,960 122,475 —June 30.. 180,726 9,333 129,182 50,457 2,241 1,415 3,603 11,440 29,705 24,357 4,181 13,066 24,435 4,710 All other member 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 ,979 224 22,857 3,063 2,108 17,687 2,006 1,262 1972—Dec. 31 io 198,156 8,504 19,690 31,911 6,327 452 1,040 455 2,565 39,262 35,458 2,220 24,830 33,664 II,468 1973—Mar. 28. 200,101 8,089 122,531 —June 30.. 206,404 7,882 129,813 34,824 7,015 '282 253 657 2^484 42,638 38,284 2,376 21,638 34,919 12,153 Nonmember: 1947—Dec. 31.. 18,454 5,432 ,205 614 156 2,266 1,061 109 11,318 2,179 ,219 7,920 1,078 625 1972—Dec. 31 io 133,198 6,701 78,624 20,591 5,819 453 622 803 1,377 25,250 22,741 969 18,313 19,864 9,695 1973—June 30.. 145,386 7,947 88,089 23,196 6,518 263 630 1,219 1,427 28,359 25,410 1,067 16,797 21,939 10,615 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

OCTOBER 1973 • COMMERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal- Deb c C a a l n l a l k s d s a a o n te f d B s w F e R a r . i n v R e th k - e . s s r C a en n u c d r y - b m a w a d n e n i o c s t k t - e h i s s c 7 ju p m s a o d a t d s e e n i - - d t d s 8 m D es o t - ic7 e F ig o n r- 9 G U o . v S t . . S g l a o o t n c a v a d t t e l . c C c h o a e f e e i e f t n e r r f c c d d t i s . k - i ' - s, IPC I b n a t n er k - G P U S i a n o o a n . s g v S v d t s t - . a , l S g l a o o t n c a v a d t t e l . IPC 3 r B i o n o w g r s - - c C o a t a u a c p n l - i t - s Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 ,343 6,799 2,581 84,987 240 866 34,383 65 10,059 1972—Dec. 31 io. 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 606 37,161 277,683 38,083 52,658 1973—June 30... 25,143 7,669 29,842 202,109 26,978 4,069 10,434 18,166 11,162 207,625 5,590 730 40,734 304,265 49,299 55,740 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 ,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 1,248 23,740 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 1 1 9 9 7 7 3 2 — — M De a c r . . 2 3 8 1 . i . o . . 2 2 7 6 , , 1 0 6 7 0 0 8 8 . , 8 6 3 3 0 7 2 3 3 0 , , 1 7 3 3 1 4 2 1 1 9 0 4 , , 2 0 8 9 7 6 2 2 2 9 , , 4 73 4 1 3 3 3 , , 2 6 7 3 9 5 1 1 1 0 , , 3 8 2 2 2 0 1 18 6 , , 4 I 5 T 9 1 8 1 , , 5 1 9 7 3 7 2 1 2 9 1 4 , , 0 89 5 8 7 4 4, , 3 1 3 1 9 3 6 6 6 0 6 6 4 3 1 7 , , 4 0 9 8 5 6 2 2 9 7 1 6 , ,1 6 3 6 8 2 4 3 3 7 , , 9 5 2 5 1 6 5 5 3 2 , , 5 1 2 6 9 6 —June 30... 25,143 7,658 28,238 200,083 26,713 3,846 10,408 18,016 10,473 206,685 5,446 730 40,655 302,344 48,413 55,240 Member—Total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 ,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 1,243 22,179 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 1972—Dec. 31 io. 26,070 6,582 19,396 158,464 28,521 3,437 9,024 13,544 9,503 174,770 3,562 468 28,553 211,124 36,357 41,228 1973—Mar. 28 . . . 27,160 6,710 14,719 145,411 21,537 3,108 9,323 11,732 7,347 151,299 3,780 516 31,705 222,900 42,380 41,897 —June 30. . . 25,143 5,754 18,004 148,306 25,684 3,627 8,167 13,251 8,781 160,407 4,879 569 30,812 230,969 46,529 43,098 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 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 14 1,418 30 2,259 1972—Dec. 31 io. 5,695 508 4,854 23,271 12,532 2,562 1,418 741 3,592 31,040 1,833 2,522 26,196 9,502 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 2,766 30,121 9,951 8,112 —June 30. . . 4,981 467 5,557 20,478 12,679 2,661 1,115 646 3,403 26,558 2,773 2,075 30,788 11,597 8,287 City of Chicago:11 1941—Dec. 31.... 1,021 43 298 2,215 1,027 127 233 34 2,152 476 288 1945—Dec. 31.... 942 36 200 3,153 1,292 1,552 237 66 3,160 719 377 1947—Dec. 31.... 1,070 30 175 3,737 1,196 72 285 63 3,853 902 426 1972—Dec. 31 io. 1,496 152 173 5,783 1,516 509 223 264 6,899 160 95 847 9,237 3,008 1,891 1973—Mar. 28 .. . 1,435 116 112 5,148 1,232 459 143 162 6,134 207 150 ,006 10,230 3,861 1,905 —June 30. . . 1,512 126 138 5,827 1,206 299 225 229 6,918 392 224 930 11,357 4,146 1,947 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 1972—Dec. 31 io. 10,085 2,114 4,688 52,813 10,426 707 3,860 3,854 3,075 64,447 1,173 181 11,811 74,449 19,392 14,687 1973—Mar. 28 . . . 10,958 2,124 3,694 48,856 7,762 639 3,767 3,421 2,336 54,882 1,196 175 12,810 78,380 22,129 14,869 —June 30. . . 9,345 1,788 4,099 49,344 8,446 731 2,988 3,954 2,728 58,194 1,371 158 13,145 81,531 24, 15,260 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 1972—Dec. 31 8,794 3,807 9,681 76,597 4,047 70 3,238 8,726 2,571 72,384 395 181 13,373 101,243 4,455 16,608 1973—Mar. 28.. . 9,474 3,908 6,893 69,720 3,016 83 3,409 7,482 1,832 65,035 393 176 15,122 104,170 6,439 17,012 —June 30. . . 9,305 3,373 8,211 72,658 3,353 118 3,766 8,426 2,421 68,737 342 167 14,661 107,293 6,753 17,604 Nonmember:3 1947—Dec. 31.... 544 3,947 13,595 385 55 167 1,295 180 12,284 172 6,858 12 1,596 1972—Dec. 31 io, 2,084 12,789 53,658 1,449 446 1,851 5,044 47,180 633 138 8,608 66,559 1,726 11,429 1973—June 30... 1,915 11,838 53,803 1,294 442 2,267 4,915 47,219 712 162 9,922 73,295 2,770 12,643 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 • OCTOBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com- To brokers To institutions invest- To mer- and dealers others ments com- To cial Agri- Total mer- U.S. others Total and culcial Treas- Other indus- tural banks ury se- trial U.S. U.S. se- curi- Treas- Other Treas- Other curi- ties ury sees. ury sees. ties sees. sees. Large banks— Total 1972 Sept. 6 302,765 13,018 10,647 1,909 292 170 209,019 85,340 2.575 1,415 7,370 193 2,802 13 304,308 13,376 11,557 1,220 352 247 209,323 85,682 2.576 1,734 7,273 182 2,796 20 302,728 11,551 10,085 865 291 310 210,400 86,366 2,584 1,166 7,582 183 2,800 27 303,182 11,433 9,703 1,255 291 184 210,736 86,631 2,602 932 7,336 185 2,826 1973 Aug. 1 349,072 12,773 11,532 872 130 239 258,028 107,557 3,256 659 5,305 189 2,977 8 352,538 15,352 12,035 2,587 225 505 259,037 108,084 3,295 1,164 5,299 189 2,997 15 355,591 15,375 12,019 2,839 233 284 260,473 108,137 3,312 1,482 5,255 188 2,999 22 350,383 13,354 11,556 1,369 160 269 258,332 107.896 3,304 830 5,002 181 2,960 29 350,644 13,404 11,781 1,215 131 277 258,774 106.897 3,286 1,311 5,197 181 2,940 Sept. 5 " 355,008 15,714 13,603 1,487 238 386 259,830 107,121 3,303 1,379 5,074 180 2.935 12" 358,252 16,825 14,334 2,014 245 232 260,904 107,627 3,294 1,087 5,205 177 2.936 19" 355,196 14,333 11,758 2,036 238 301 261,428 108,246 3,289 875 5,217 176 2,928 26" 353,794 12,873 11,597 818 189 269 261,522 108,309 3,275 849 5,476 166 2,932 New York City 1972 Sept. 6 63,414 897 856 47,987 24,233 38 1,276 4,607 651 13 63,705 1,059 976 48,068 24,274 41 1,508 4,622 645 20 63,506 1,097 1,005 48,065 24,359 41 974 4,876 645 27 63,638 1,157 1,135 47,915 24,419 42 817 4,684 657 1973 Aug. 1 75,088 2,656 2,617 4 60,170 30,800 75 567 3,025 688 8 75,245 2,289 2,191 2 60,771 31,081 78 1,085 3,011 693 15 76,451 1,878 1,777 32 61,317 30,958 79 1,367 3,067 686 22 74,051 1,359 1,246 47 59,703 30,879 76 727 2,901 682 29 74,329 1,447 1,359 37 60,125 30,336 75 1,200 3,103 681 Sept. 5" 75,557 1,992 1,815 131 60,588 30,494 75 1,266 2,987 681 12" 77,204 1,812 1,768 29 61,146 30,787 73 975 3,065 677 19" 76,299 1,569 1,515 29 60,991 30,866 73 762 3,195 670 26" 75,905 1,742 1,697 29 60,959 30,958 78 728 3,405 679 Outside New York City 1972 Sept. 6 239,351 12,121 9,791 1,905 292 133 161,032 61,107 2,537 139 2,763 153 2,151 13 240,603 12,317 10,581 1,216 352 168 161,255 61,408 2,535 226 2.651 142 2,151 20 239,222 10,454 9,080 851 291 232 162,335 62,007 2,543 192 2,706 143 2,155 27 239,544 10,276 8,568 1,246 291 171 162,821 62,212 2,560 115 2.652 146 2,169 1973 Aug. 1 273,984 10,117 8,915 837 130 235 197,858 76,757 3,181 92 2,280 151 2,289 8 277,293 13,063 9,844 2,491 225 503 198,266 77,003 3,217 79 2,288 146 2,304 15 279,140 13,497 10.242 2,785 218 252 199,156 77,179 3,233 115 2,188 144 2,313 22 276,332 11,995 10,310 1,303 160 222 198,629 77,017 3,228 103 2,101 138 2,278 29 276,315 11,957 10,422 1,164 131 240 198,649 76,561 3,211 111 2,094 140 2,259 Sept. 5" 279,451 13,722 11,788 1,441 238 255 199,242 76,627 3,228 113 2,087 139 2,254 12" 281,048 15,013 12,566 1,999 245 203 199,758 76,840 3,221 112 2,140 139 2,259 19" 278,897 12,764 10.243 2,011 238 272 200,437 77,380 3,216 113 2,022 138 2,258 26" 277,889 11,131 9,900 802 189 240 200,563 77,351 3,197 121 2,071 129 2,253 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • WEEKLY REPORTING BANKS A 25 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con- Real sumer For- All Certifestate instal- eign other Total Bills icates Do- For- ment govts.2 Within 1 to After mes- eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1972 43,603 1,445 2,912 26,529 1,093 16,752 26,404 4,396 4,522 14,390 3,096 Sept. 6 43,810 1,400 2,833 26,601 1,079 16,510 26,861 4,925 4,555 14,340 3,041 13 43,920 1,440 2,840 26,680 1,102 16,781 26,617 5,027 4,454 14,159 2,977 20 44,112 1,450 2,888 26,777 1,093 16,874 26,307 4,772 4,439 14,112 2,984 27 1973 51,006 3,130 4,851 31,006 1,230 20,366 22,301 2,954 4,055 12,615 2,677 Aug. 1 51,151 3,170 5,057 31,084 1,236 20,025 22,151 2,902 4,094 12,550 2,605 8 51,511 3,165 5,020 31,198 1,233 20,350 23,018 4,116 3,858 12,354 2,690 15 51,736 3,316 4,857 31,326 1,214 19,869 22,464 3,753 3,854 12,213 2,644 22 51,933 3,548 4,969 31,463 1,232 20,055 22,100 3,506 3,835 12,136 2,623 29 52,095 3,513 4,771 31,549 1,292 20,363 22,920 3,705 3,966 12,637 2,612 Sept. 5 * 52,375 3,601 4,809 31,637 1,324 20,592 23,327 3,981 3,962 12,734 2,650 12* 52,715 3,306 4,729 31,669 1,310 20,682 22,505 3,107 4,070 12,682 2,646 19* 52,914 3,269 4,695 31,796 1,260 20,370 22,250 3,045 4,094 12,457 2,654 26* New York City 1972 4,725 453 1,268 2,016 683 3,474 5,446 1,780 878 2,366 422 Sept. 6 4,732 428 1,226 2,020 670 3,299 5,372 1,755 880 2,361 376 13 4,771 435 1,222 2,030 685 3,349 5,229 1,870 841 2,209 309 20 4,801 425 1,307 2,029 677 3,385 5,086 1,689 841 2,215 341 27 1973 5,631 1,184 2,065 2,352 628 4,330 3,516 859 61 1,519 527 Aug. 1 5,682 1,163 2,267 2,381 613 4,109 3,460 805 649 1,523 483 8 5,767 1,169 2,203 2,393 598 4,266 3,995 1,175 728 1,569 523 15 5,790 1,237 2,035 2,401 599 4,004 4,017 1,274 632 1,587 524 22 5,832 1,279 2,141 2,398 621 4,109 3,856 1,100 618 1,633 505 29 5,851 1,335 1,981 2,397 668 4,246 3,988 1,184 612 1,719 473 Sept. 5* 5,921 1,395 2,016 2,399 654 4,507 4,639 1,571 600 1,920 548 12* 5,998 1,242 1,964 2,378 673 4,475 4,166 1,144 636 1,849 537 19* 6,061 1,232 1,919 2,399 628 4,239 3,824 943 630 1,721 530 26* Outside New York City 1972 38,878 992 1,644 24,513 410 13,278 20,958 2,616 3,644 12,024 2,674 Sept. 6 39,078 972 1,607 24,581 409 13,211 21,489 3,170 3,675 11,979 2,665 13 39,149 1,005 1,618 24,650 417 13,432 21,388 3,157 3,613 11,950 2,668 20 39,311 1,025 1,581 24,748 416 13,489 21,221 3,083 3,598 11,897 2,643 27 1973 45,375 1,946 2,786 28,654 602 16,036 18,785 2,095 3.444 11,096 2,150 Aug. 1 45,469 2,007 2,790 28,703 623 15,916 18,691 2,097 3.445 11,027 2,122 8 45,744 1,996 2,817 28,805 635 16.084 19,023 2,941 3,130 10,785 2,167 15 45,946 2,079 2,822 28,925 615 15,865 18,447 2,479 3,222 10,626 2,120 22 46,101 2,269 2,828 29,065 611 15,946 18,244 2,406 3,217 10,503 2,118 29 46,244 2,178 2,790 29,152 624 16,117 18,932 2,521 3,354 10,918 2,139 Sept. 5* 46,454 2,206 2,793 29,238 670 16.085 18,688 2,410 3,362 10,814 2,102 12* 46,717 2,064 2,765 29,291 637 16,207 18,339 1,963 3,434 10,833 2,109 19* 46,853 2,037 2,776 29,397 632 16,131 18,426 2,102 3,464 10,736 2,124 26* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS • OCTOBER 1973 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities CCaasshh IInnvveesstt-- Obligations Other bonds, iitteemmss Re- BBaall-- mmeennttss Total of State corp. stock, iinn serves Cur- aanncceess iinn ssuubb-- assets/ Wednesday and and pprroocceessss with rency wwiitthh ssiiddiiaarr-- Other total political securities ooff F.R. and ddoo-- iieess nnoott assets liabil- Total subdivisions ccoolllleecc-- Banks coin mmeessttiicc ccoonnssooll-- ities ttiioonn bbaannkkss iiddaatteedd Tax Certif. war- All of All rants3 other partici- other^ pation4 Large banks— Total 1972 54,324 9,089 37,151 1,496 6,588 30,900 18,419 3,664 9,820 1,007 16,787 383,362 Sept. 6 54,748 9,175 37,456 1,495 6,622 29,215 18,701 3,952 8,824 1,007 16,577 382,584 13 54,160 9,059 36,971 1,515 6,615 30,052 21,819 3,898 8,865 1,010 16,688 385,060 20 54,706 9,479 37,052 1,553 6,622 27,680 19,415 4,003 9,271 1,010 16,752 381,313 27 1973 Aug. 1 55,970 7,973 37,998 1,847 8,152 31,657 22,549 4,043 11,457 1,303 20,907 440,988 8 55,998 7,944 38,033 1,958 8,063 27,495 18,452 3,954 10,423 1,308 20,787 434,957 15 56,725 8,103 38,467 1,924 8,231 30,329 20,707 4,085 9,980 1.307 21,175 443,174 22 56,233 7,781 38,340 1,948 8,164 26,710 21,592 4,184 10,220 1,310 20,202 434,601 29 56,366 7,718 38,174 2,015 8,459 26,178 21,277 4,395 8,842 1.308 20,946 433,590 Sept. 5 * 56,544 7,770 38,296 2,015 8,463 32,731 19,256 3,976 10,362 1.299 20,993 443,625 1 1 2 9 * * 5 5 7 6 , , 1 9 9 3 6 0 7 7 , , 6 5 9 3 1 2 3 38 8 , , 6 7 0 9 5 0 2 1 , , 0 9 1 8 9 9 8 8 , , 7 7 2 7 6 4 2 3 9 1, , 5 8 9 7 8 8 2 2 2 1 , , 0 3 4 7 5 3 4 4 , , 3 2 5 9 5 4 9 9 , , 9 9 1 2 5 5 1 1 . , 3 3 0 0 0 0 2 2 0 0 , , 7 5 1 9 8 8 4 4 4 4 2 8 , ,1 5 8 6 3 4 26* 57,149 7,382 38,617 2,112 9,038 29,076 24,319 4,361 10,171 1,303 20,570 443,594 New York City 1972 Sept. 6 9,084 2,842 5,068 272 902 9,130 5,877 442 2,899 478 5,060 87,300 13 9,206 2,823 5,206 263 914 8,534 5,006 471 3,155 478 4,985 86,334 20 9,115 2,821 5,135 265 894 9,943 5,046 452 3,249 478 5,255 87,929 27 9,480 3,120 5,203 281 876 8,835 4,252 463 3,571 479 5,099 86,337 1973 Aug. 1 8,746 2,232 4,588 508 1,418 10,879 5,653 483 5,273 622 6,821 104,819 8 8,725 2,173 4,574 605 1,373 9,568 5,185 486 4,972 624 6,819 102,899 15 9,261 2,359 4,876 570 1,456 8,999 5,428 498 4,609 625 7,389 103,999 22 8,972 2,243 4,793 575 1,361 8,317 6,585 488 5,076 627 6,770 101,914 29 8,901 2,202 4,619 624 1,456 8,698 5,867 511 4,011 625 7,039 101,080 Sept. 5* 8,989 2,198 4,685 618 1,488 9,076 4,910 490 4,271 615 6,762 101,681 1 1 2 9 * * 9 9 , , 6 5 0 7 7 3 2 2, , 1 2 4 1 3 0 5 5 , , 1 1 6 6 6 0 5 5 8 8 9 7 1 1 , , 6 6 4 8 2 3 9 9 , ,2 5 1 8 7 3 8 4 , , 0 7 8 1 5 8 5 4 0 8 0 8 4 4 , , 2 5 6 3 4 0 6 6 1 1 4 3 6 6, , 6 5 6 2 1 0 1 1 0 0 6 2 , , 7 5 7 2 0 6 26* 9,380 2,069 5,045 594 1,672 9,825 6,372 494 4,800 614 6,553 104,563 Outside New York City 1972 Sept. 6 45,240 6,247 32,083 1,224 5,686 21,770 12,542 3,222 6,921 529 11,727 296,062 13 45,542 6,352 32,250 1,232 5,708 20,681 13,695 3,481 5,669 529 11,592 296,250 20 45,045 6,238 31,836 1,250 5,721 20,109 16,773 3,446 5,616 532 11,433 297,131 27 45,226 6,359 31,849 1,272 5,746 18,845 15,163 3,540 5,700 531 11,653 294,976 1973 Aug. 1 47,224 5,741 33,410 1,339 6,734 20,778 16,896 3,560 6,184 681 14,086 336,169 8 47,273 5,771 33,459 1.353 6,690 17,927 13,267 3,468 5,451 684 13,968 332,058 15 47.464 5,744 33,591 1.354 6,775 21,330 15,279 3,587 5,371 682 13,786 339,175 22 47,261 5,538 33,547 1,373 6,803 18,393 15,007 3,696 5,144 683 13,432 332,687 29 47.465 5,516 33,555 1,391 7,003 17,480 15,410 3,884 4,831 683 13,907 332,510 Sept. 5* 47,555 5,572 33,611 1,397 6,975 23,655 14,346 3,486 6,091 684 14,231 341,944 12* 47,589 5,481 33,624 1,400 7,084 22,015 13,960 3,855 5,651 686 14,198 341,413 19* 47,357 5,389 33,445 1,432 7,091 20,661 16,655 3,806 5,395 687 13,937 340,038 26* 47,769 5,313 33,572 1,518 7,366 19,251 17,947 3,867 5,371 689 14,017 339,031 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Dopolit- fied polit- mes- For- Total IPC ical U.S. and Total 6 ical tic eign sub- Govt. Com- Mutual Com- offi- sub- inter- govts. 2 divi- mer- sav- Govts., mer- cers' Sav- Other divi- bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1972 148,159 106,879 6,542 2,119 22,449 757 800 2,950 5,663 155,340 57,899 70,768 18,289 2,532 5,347 Sept. 6 144,824 106,646 5,990 1,739 20,933 698 791 2,760 5,267 155,706 57,873 70,860 18,388 2,624 5,462 13 148,000 105,517 6,176 5,687 20,249 650 790 3,035 5,896 155,173 57,895 70,215 18,281 2,847 5,433 20 146,133 103,334 6,491 6,479 20,010 692 744 3,077 5,306 156,270 58,069 70,841 18,483 2,913 5,449 27 1973 157,605 111,528 6,901 3,010 22,749 857 1,017 3,657 7,886 185,434 57,345 92,791 21,978 4,715 8,050 Aug. 1 147,750 105,985 6,060 1,404 22,495 874 857 3,761 6,314 187,307 57,135 94,402 22,193 4,954 8,118 8 154,094 112,535 6,717 2,222 21,482 824 844 3,534 5,936 188,819 56,809 96,017 22,207 5,256 8,060 15 144,371 106,341 5,676 1,820 19,724 792 819 3,556 5,643 190,039 56,612 96,909 22,544 5,434 8,102 22 143,547 105,789 5,697 1,816 19,072 728 892 3,422 6,131 190,776 56,289 97,901 22,679 5,466 8,034 29 153,018 12,082 6,053 1,146 22,131 796 953 3,419 6,438 190,485 56,203 97,589 22,635 5,505 8,133 Sept. 5* 152,898 12,481 5,827 1,639 21,331 718 910 3,531 6,461 190,45S 56,090 97,070 23,000 5,758 8,148 12* 150,787 109,544 5,798 3,596 20,741 671 944 3,371 6,122 190,684 56,001 97,454 22,720 5,914 8,181 19* 151,127 107,307 6,473 5,224 20,175 684 897 3,678 6,689 190,883 56,033 97,614 22,805 5,980 8,019 26* New York City 1972 38,208 22,903 455 397 8,930 387 641 2,109 2,386 27,210 5,675 15,352 2,029 1,296 2,769 Sept. 6 36,545 22,171 359 262 8,608 353 635 1,967 2,190 27,282 5,662 15,281 2,074 1,350 2,829 13 38,952 22,856 457 1,403 8,319 319 653 2,143 2,802 26,587 5,664 14,613 1,991 1,452 2,783 20 38,377 22,175 561 1,408 8,714 355 604 2,195 2,365 27,154 5,685 14,896 2,171 1,512 2,795 27 1973 44,216 24,608 432 528 10,878 449 858 2,621 3,842 34,262 5,14? 19,943 2,093 3,072 3,939 Aug. 1 40,932 22,139 441 128 11,588 479 675 2,758 2,724 34,725 5,119 20,239 2,027 3,280 3,991 8 41,860 24,665 570 466 10,350 429 678 2,553 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 38,341 22,452 327 295 8,933 383 728 2,409 2,814 35,150 4,991 20,405 2,148 3,517 4,037 29 40,351 24,070 318 81 9,508 411 755 2,378 2,830 35,323 4,976 20,689 2,153 3,488 3,965 Sept. 5* 40,631 23,476 399 201 9,994 379 691 2,437 3,054 35,080 4,946 20,140 2,326 3,708 3,905 12* 40,130 23,357 348 530 9,691 346 749 2,323 2,786 35,331 4,934 20,395 2,151 3,890 3,883 19* 41,475 22,986 583 1,028 9,765 364 710 2,643 3,396 35,182 4,942 20,279 2,117 3,968 3,790 26* Outside New York City 1972 109,951 83,976 6,087 1,722 13,519 370 159 841 3,277 128,130 52,224 55,416 16,260 1,236 2,578 Sept. 6 108,279 84,475 5,631 1,477 12,325 345 156 793 3,077 128,424 52,211 55,579 16,314 1,274 2,633 ..13 109,048 82,661 5,719 4,284 11,930 331 137 892 3,094 128,586 52,231 55,602 16,290 1,395 2,650 20 107,756 81,159 5,930 5,071 11,296 337 140 882 2,941 129,116 52,384 55,945 16,312 1,401 2,654 27 1973 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 Aug. 1 106,818 83,846 5,619 1,276 10,907 395 182 1,003 3,590 152,582 52,016 74,163 20,166 1,674 4,127 8 112,234 87,870 6,147 1,756 11,132 395 166 981 3,787 153,776 51,734 75,682 20,079 1,790 4,082 15 105,953 83,796 5,275 1,590 10,306 344 162 1,013 3,467 155,222 51,576 76,964 20,322 1,923 4,058 22 105,206 83,337 5,370 1,521 10,139 345 164 1,013 3,317 155,626 51,298 77,496 20,531 1,949 3,997 29 112,667 88,012 5,735 1.065 12,623 385 198 1,041 3,608 155,162 51,227 76,900 20,482 2,017 4,168 Sept. 5* 112,267 89,005 5,428 1,438 11,337 339 219 1,094 3,407 155,379 51,144 76,930 20,674 2,050 4,243 12* 110,657 86,187 5,450 3.066 11,050 325 195 1,048 3,336 155,353 51,067 77,059 20,569 2,024 4,298 19* 109,652 84,321 5,890 4,196 10,410 320 187 1,035 3,293 155,701 51,091 77,335 20,688 2,012 4,229 26* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS • OCTOBER 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 eral Other Total loans included in time Wednesday funds liabili- capital Total and De- and savings deposits i1 pur- F.R. ties, Secur- ac- loans invest- mand chased, Banks Others etc. 8 ities counts (gross) ments deposits etc. 7 ad- (gross) ad- Issued justed 9 ad- justed i o Total to justed 9 IPC's Large banks— Total 1972 Sept. 6 39,475 44 1,544 15,810 4,196 28,723 209,945 290,673 92,691 40,927 26,599 13 31,991 80 1,513 15,479 4,184 28,736 209,742 291,351 92,937 41,164 26,597 20 30,297 ,647 1,513 15,519 4,180 28,659 210,426 291,203 92,012 40,527 25,853 27 27,735 687 1,410 16,142 4,189 28,676 211,016 292,029 91,964 41,219 26,314 1973 Aug. 1 38,677 698 4,356 18,775 4,524 30,854 256,139 334,410 100,189 64,901 43,950 8 40,418 826 4,556 18,624 4,533 30,878 259,184 337,333 96,356 66,570 45,199 15 39,747 1,959 4,715 18,426 4,533 30,816 260,664 340,407 100,061 68,179 46,483 22 38,374 2,282 5,286 18,858 4,536 30,790 256,814 335,511 96,117 69,103 47,166 29 36,735 2,546 5,745 18,840 4,554 30,782 256,849 335,315 96,481 69,951 48,137 Sept. 5* 39,876 708 5,814 18,093 4,572 30,994 258,428 337,892 97,010 69,365 47,362 12* 44,144 739 5,937 18,393 4,574 30,974 259,794 340,317 98,330 69,309 46,789 19* 39,597 1,674 6,046 18,218 4,627 30,866 260,697 340,132 96,572 69,486 46,980 26* 38,617 3,708 5,998 17,720 4,635 30,841 259,529 338,928 96,652 69,273 46,747 New York City 1972 Sept. 6 7,431 306 5,626 1,237 7,282 47,575 62,105 19,751 14,526 10,216 13 8,510 15 287 5,180 1.236 7,279 47,723 62,301 19,141 14,609 10,170 20 7,146 1,018 307 5,428 1.237 7,254 47,722 62,066 19,287 13,934 9,491 27 5,804 242 242 6,032 1,245 7,241 47,512 62,078 19,420 14,406 9,734 1973 Aug. 1 7,963 2,080 7,212 1,288 7,798 59,025 71,287 21,931 20,676 13,634 8 8,954 15 2,057 7,114 1,294 7,808 59,706 71,891 19,648 21,064 13,881 15 8,925 265 2,041 6,771 1,293 7,801 60,249 73,505 22,045 21,406 13,933 22 9,303 837 2,456 7,008 1,296 7,779 58,579 71,568 20,453 21,196 13,610 29 8,396 527 2,606 7,024 1,302 7,734 58,934 71,691 20,415 21,589 14,084 Sept. 5* 7,838 15 2,635 6,372 1,304 7,843 59,430 72,407 21,686 21,665 14,090 12* 12,608 20 2,795 6,483 1,304 7,849 59,795 74,041 20,853 21,414 13,623 19* 8,116 645 2,857 6,309 1,339 7,799 59,803 73,542 20,692 21,663 13,826 26* 8,894 ,049 2,801 6,073 1,346 7,743 59,772 72,976 20,857 21,436 13,627 Outside New York City 1972 Sept. 6 22,044 44 1,238 10,184 2,959 21,441 162,370 228,568 72,940 26,401 16,383 13 23,481 65 1,226 10,299 2,948 21,457 162,019 229,050 73,796 26,555 16,427 20 23,151 629 1,206 10,091 2.943 21,405 162,704 229,137 72,725 26,593 16,362 27 21,931 445 1,168 10,110 2.944 21,435 163,504 229,951 72,544 26,813 16,580 1973 Aug. 1 30,714 698 2,276 11,563 3,236 23,056 197,114 263,123 78,258 44,225 30,316 8 31,464 811 2,499 11,510 3.239 23,070 199,478 265,442 76,708 45,506 31,318 15 30,822 1,694 2,674 11,655 3.240 23,015 200,415 266,902 78,016 46,773 32,550 22 29,071 1,445 2,830 11,850 3,240 23,011 198,235 263,943 75,664 47,907 33,556 29 28,339 2,019 3,139 11,816 3,252 23,048 197,915 263,624 76,066 48,362 34,053 Sept. 5* 32,038 693 3,179 11,721 3,268 23,151 198.998 265,485 75,324 47,700 33,272 12* 31,536 719 3,142 11,910 3,270 23,125 199.999 266,276 77,477 47,895 33,166 19* 31,481 1,029 3,189 11,909 3.288 23,067 200,894 266,590 75,880 47,823 33,154 26* 29,723 2,659 3,197 11,647 3.289 23,098 199,757 265,952 75,795 47,837 33,120 t 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

OCTOBER 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 1973 1972 Sept. Sept. Sept. Sept. Aug. 1st 2nd 26 19 12 5 29 Sept. Aug. July III II I half half Durable goods manufacturing: Primary metals 2,052 2,052 2,027 2,008 1,983 69 -16 -39 14 -102 122 20 -79 Machinery 6,570 6,671 6,466 6,361 6,356 214 60 240 514 645 808 1,453 395 Transportation equipment 2,437 2,455 2,417 2,410 2,507 -70 247 102 279 32 32 64 -258 Other fabricated metal products... 2,318 2,319 2,309 2,259 2,263 55 -47 48 56 267 236 503 57 Other durable goods 4,060 4,061 4,028 3,983 3,904 156 119 9 284 323 549 872 69 Nondurable goods manufacturing: Food, liquor, and tobacco 3,804 3,761 3,712 3,738 3,696 108 -60 332 380 -194 171 -23 827 Textiles, apparel, and leather 3,663 3,704 3,712 3,642 3,644 19 95 125 239 275 455 730 -166 Petroleum refining 1,208 1,222 1,219 1,255 1,245 -37 -5 62 20 -7 218 211 -14 Chemicals and rubber 2,703 2,705 2,696 2,657 2,645 58 43 -64 37 63 746 809 -262 Other nondurable goods 2,207 22,,220044 2,165 22,,113388 2,134 73 31 49 153 157 203 360 30 Mining, including crude petroleum and natural gas 44,,003366 4,022 44,,003322 4,050 4,004 32 -125 169 76 331 331 25 Trade: Commodity dealers 1,212 1,239 1,264 1,300 1,304 -92 32 18 -42 -603 63 -540 622 Other wholesale 5,274 5,221 5,193 5,223 5,183 91 -140 102 53 183 384 567 216 Retail 6,239 6,165 6,105 6,151 6,096 143 -47 51 147 457 635 1,092 473 Transportation 5,951 5,962 5,950 5,927 5,928 23 -34 78 67 283 11 294 -42 Communication 2,106 2,119 2,110 2,047 2,049 57 -85 17 -11 79 179 258 424 Other public utilities 5,286 5,168 4,985 4,862 4,683 603 -44 180 739 670 291 961 939 Construction 5,803 5,815 5,813 5,773 5,814 -11 118 104 211 624 304 928 364 Services 10,489 10,473 10,398 10,419 10,388 101 171 88 360 455 542 997 494 All other domestic loans 7,939 7,967 8,021 8,039 7,993 -54 151 253 350 782 972 1,754 239 Bankers' acceptances 11,,111133 1,126 11,,116666 11,,112288 1,143 -30 -189 -65 -284 76 -230 -154 100 Foreign commercial and industrial loans 4,050 4,025 4,168 4,080 4,189 -139 -252 7 -384 -18 572 554 491 Total classified loans 90,520 90,456 89,956 89,450 89,151 1,369 23 1,866 3,258 4,447 7,594 12,041 4,944 Total commercial and industrial loans of large commercial banks 108,309 108,246 107,627 107,121 106,897 1,412 5 1,900 3,317 5,127 8,762 13,889 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 1973 1972 Industry Sept. Aug. July June May Apr. Mar. Feb. Jan. 26 29 25 27 30 25 28 28 31 III IV Durable goods manufacturing: Primary metals 1,222 1,294 1,293 1,328 1,314 1,315 1,335 1,307 1,336 -106 -7 67 -35 Machinery 2,509 2,638 2,664 2,641 2,560 2,555 2,313 2,305 2,271 -132 328 159 249 Transportation equipment. 1,156 1,226 1,193 1,189 1,168 1,180 1,174 1,217 1,246 -33 15 -31 -102 Other fabricated metal products 823 846 861 869 833 842 785 765 751 -46 84 65 41 Other durable goods 1,594 1,730 1,720 1,690 1,592 1,614 1,520 1,464 1,348 -96 170 281 51 Nondurable goods manufacturing: Food, liquor, and tobacco. 1,396 1,405 1,410 1,393 1,372 1,355 1,350 1,325 1,304 43 116 155 Textiles, apparel, and leather 1,010 1,021 1,003 969 942 978 892 843 781 41 77 169 12 Petroleum refining 862 925 947 876 885 858 842 778 781 -14 34 144 19 O Ch th e e m r ic n a o l n s d a u n r d a b r l u e b b g e o r o ds.. 1 1 , ,0 4 2 89 8 1 1 , , 0 4 6 9 9 4 1 1 , , 0 4 5 8 0 6 1 1, , 4 0 8 6 1 3 1 1 , , 4 0 4 6 1 3 1 1 , ,1 4 0 59 8 1 1, ,1 4 0 79 0 1 1 , , 0 4 6 39 2 1 1 , , 0 3 0 5 5 9 -35 8 -37 2 2 3 0 26 6 - - 2 6 4 Mining, including crude petroleum and natural gas. 2,818 2,921 3,022 2,846 2,908 2,895 2,872 2,823 2,896 -28 -26 187 6 Trade: Commodity dealers.. 95 115 178 123 139 136 150 131 132 -28 -27 29 14 Other wholesale 1,017 1,149 1,118 1,066 1,051 1,068 1,055 1,008 982 -49 11 161 30 Retail 1,998 2,136 2,066 2,006 1,979 1,947 1,823 1,763 1,698 -8 183 231 148 Transportation 3,896 4,287 4,255 4,305 4,161 4,202 4,234 4,285 4,257 -409 71 54 94 Communication 813 835 814 785 760 738 746 770 755 28 39 64 121 Other public utilities 2,761 2,671 2,548 2,409 2,328 2,343 2,234 2,245 2,060 352 175 259 287 Construction 1,806 2,000 2,009 1,896 1,852 1,800 1,709 1,665 1,661 -90 187 151 8 Services 4,220 4,646 4,568 4,562 4,402 4,417 4,339 4,184 4,120 -342 223 313 164 All other domestic loans 2,344 2,458 2,389 2,201 2,180 2,061 1,871 1,785 1,71 143 330 274 43 Foreign commercial and industrial loans 2,010 2,292 2,497 2,585 2,647 2,410 2,567 2,327 2,355 -575 18 201 223 Total loans "36,867 "39,158 "39,091 "38,283 "37,577 37,281 36,390 35,491 34,809 ,416 ,893 3,426 ,498 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 • OCTOBER 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdei r Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s in in a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 1970—June 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 Dec 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar 18.3 86.3 54.4 1.4 10.5 170.9 June 18.1 89.6 56.2 1.3 10.5 175.8 Sept 17.9 91.5 57.5 1.2 9.7 177.9 Dec 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 Sept 18.0 101.5 63.1 1.4 11.4 195.4 Dec 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar 18.6 102.8 65.1 1.7 11.8 200.0 June 18.5 106.0 66.8 2.0 11.7 205.1 Weekly reporting banks: 1971—Dec 14.4 58.6 24.6 1.2 5.9 104.8 1972—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 6.6 111.7 Aug 14.3 59.5 27.3 1.9 6.1 109.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, Mar. 28, June 30, Class of Dec. 31, Dec. 31, Mar. 28, June 30, bank 1971 1972 1973 1973 bank 1971 1972 1973 1973 All commercial 666666688888880000000 555555555555559999999 555555533333338888888 AAllll mmeemmbbeerr——CCoonntt.. Insured 666666677777777777777 555555555555554444444 555555555555666666 555555533333333333333 OOtthheerr llaarrggee bbaannkkss 11 111111111111112222222 66666669999999 66667777 66666663333333 National member 333333388888887777777 333333311111111111111 333333111111444444 333333300000004444444 All other member 1 333333377777771111111 333333311111113333333 333311118888 333333311111112222222 State member 99999995555555 77777771111111 777777222222 77777771111111 All nonmember 111111199999997777777 111111177777777777777 111111166666663333333 All member 444444488888882222222 333333388888881111111 333333888888555555 333333377777775555555 Insured 111111199999995555555 111111177777772222222 117711 111111155555558888888 Noninsured 2222222 5555555 5555555 i Beginning Nov. 9,1972, designation of banks as reserve city banks for NOTE.—These hypothecated deposits are excluded from "Time deposits" reserve-requirement purposes has been based on size of bank (net demand and "Loans" at commercial banks, as shown in the tables on pp. A-18, deposits of more than $400 million), as described in the BULLETIN for A-l 9, and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as "Other large" and "All other bottom of p. A-l 7. These changes resulted from a change in Federal member" parallel the previous "Reserve City" (other than in New York Reserve regulations. See June 1966 BULLETIN, p. 808. City and the City of Chicago) and "Country" categories, respectively These deposits have not been deducted from "Time deposits" and (hence the series are continuous over time). "Loans" for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Total Commercial Commercial and All other and All other industrial industrial 1973—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 2 5 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 r 4,741 2,895 1,846 1,750 323 1,427 Sept. 5 4,672 2,816 1,856 1,743 326 1,417 12 4,453 2,713 1,740 1,783 355 1,428 19 4,748 2,841 1,907 1,777 356 1,421 2 6 4,637 2,877 1,760 1,766 353 1,413 NOTE.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by- Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex- Others ports ports All Bank Bank For- into from other related Other 1 related Other 2 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—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 '132 496 r4,810 2,222 2,954 2,517 Aug. 37,149 1,350 7,676 3,758 24,365 7,734 1,968 1,598 370 84 522 5,159 2,268 2,945 2,520 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 • OCTOBER 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1969—J M a a n r . . 1 7 7 , , 7 m 1972—Jan. 1 3 7 , 4 5 3 -5 4 i - / 58- - 5 5 1 i 4 4 - - 1972—Sept. 5 4 . . 5 5 1 1 4 / - 2 5 " 1 /i- 1973—June 1 8 9 7 7 1 % /2 - --734 June 9. 2 3 4 1 , , 4 45 i / /8i - - 4 4 3 3 4 4 -5 -_ - 5 2 1 5 1 . . 5 " V f i t - 8 -5 * 5 - / 8 25, 734- 1970—Mar. 25. July 2 734 .-8 N Se o p v t . . 2 12 1 . . 7 7% % Feb. 28. 4 Oct. 2. 9 3 . . 8 73 -8 4 1 -8 4 . . 23. 7 Mar. 13. 4. 5i/i-534- 17. 814 --81/£ Dec. 22. 6% 23. 434- 11. 534- 18. 814-Siyi- 1971—Jan. 6. % 27. 16. 534--57/8 2 3 3 0 . . 81/2 15. Apr. 3. 434«-5 Nov. 6., 534- M Fe a b r . . 1 1 1 1 9 1 6 8 . . . . 5 6 5V % 4- 5% May 3 1 0 5 1 7 . . . . 5 5 5 5 - - .- m 51 - /8 5 - V 51 4 / 4 Dec. 2 2 2 0 6 7. . . , . 5 5 5 3 3 3 4 4 4 - - - . 6 5 -6 7 . / 8 Aug. 2 2 1 2 7 1 6 3 . . . . . 9 9 9 8 9- 1 1 - 3 9 4 / 4 i 1 - - - - 4 9 9 - - 1/2 J A M u p a ly r y . 2 1 6 3 1 . . . 5 5 % % - 5% June 2 1 6 2 . . 5 5- -5 -5 1 i 4 /8- 1973— F Ja e n b . . 2 4. . . 6 6.- . 6 14 2 29 8 . . 9 93 ^ 4 -9 - 3/ 4 . 7. 6 14.. 6. Sept. 14. 9 34 .-10 Oct. 20. July 1 3 0 . . 5y 4 m-5y s - 2 27 6 . . . . 6 6 1 .- 4 6 - V4 18. 10. Nov. 1. 5V4'-5% 4. 17. Mar. 19. 614--634 8. 31. 514--53/8- 26. 614. 22. 5% 29. Aug. 11. 5V4--53/8 Apr. 18. 61/2-634 . 14. 19., 634- Dec. 6. 2 25 1 . . 5 5 1 1 / / 4 4 - .- - 5 5 3 3/ /88 - May 634--7 27. 5%-5V4» 5% 7- 31. 29. 514-53/8- 7--714 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) AAllll ssiizzeess 1-9 10-99 100-499 500-999 1,000 and over CCCeeennnttteeerrr 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 7 N 7 8 4 8 c e e O N S W S w n o o o t t e u h u e r Y s e t r t t t h h h r s o C e w r N C a k o e s o e s a t C r n t s t t t i h r ty a e a l st 7 8 7 7 8 1 7 . . . . . . . 1 6 7 3 6 4 1 7 6 2 0 9 4 9 7 6 7 7 8 7 7 . . . . . . . 0 8 1 1 2 0 9 8 8 1 8 9 4 0 8 8 8 8 8 7 7 . . . . . . . 3 0 1 1 6 2 7 9 8 8 7 0 0 2 6 7 8 7 7 7 7 . . . . . . . 2 6 4 2 4 3 3 8 4 7 0 9 8 4 7 7 7 8 8 7 7 . . . . . . . 6 7 4 2 9 0 2 8 9 5 0 5 2 4 7 7 7 7 7 7 7 . . . . . . . 4 9 6 0 1 0 6 8 7 6 5 7 0 0 7 7 8 8 8 7 7 . . . . . . . 2 6 9 5 6 1 5 1 6 3 5 6 2 0 6 7 7 7 7 8 7 . . . . . . . 9 4 3 0 3 6 2 1 9 1 9 7 7 4 9 7 7 7 7 7 7 . . . . . . . 6 3 5 9 5 7 7 8 9 1 5 7 2 0 7 6 8 6 6 7 7 . . . . . . . 1 4 8 2 6 7 0 3 7 9 4 2 6 2 7 8 7 7 8 7 7 . . . . . . . 5 2 7 8 2 6 6 8 5 1 2 8 0 5 6 8 8 7 7 6 6 . . . . . . . 9 7 4 0 0 9 9 1 1 5 6 6 8 4 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

OCTOBER 1973 • INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 PPrriimmee FFFiiinnnaaannnccceee ccoommmmeerrcciiaall CCCOOO... PPPrrriiimmmeee FFFeeeddd--ppaappeerr11 pppaaapppeeerrr bbbaaannnkkkeeerrrsss''' eeerrraaalll 3-month bills5 6-month bills5 9-to 12-month issues Period ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee 333 yyeeaarr 90-119 4- to 6- 333--- tttooo 666--- 999000 dddaaayyysss *** Rate Market Rate Market 1-year iissssuueess77 days months mmmooonnnttthhhsss222 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—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 Sept 10.31 10.23 8.90 10.19 10.78 8.478 8.29 8.537 8.45 8.07 8.44 7.16 Week ending— 1973—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 8., 10.50 10.38 9.09 10.25 10.79 8.778 8.80 8.735 8.75 8.19 8.51 7.27 15., 10.50 10.48 9.00 10.35 10.74 9.016 8.94 8.921 8.97 8.45 8.78 7.45 22., 10.43 10.45 9.00 10.43 10.80 8.786 8.38 8.832 8.52 8.10 8.59 7.10 29., 9.85 9.65 8.60 9.75 10.84 7.331 7.13 7.661 7.63 7.57 7.90 6.85 1 Averages of the most representative daily offering rate quoted by sentative of the day's transactions, usually the one at which most transdealers. 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 • OCTOBER 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected BByy DDiivviiddeenndd// EEaarrnniinnggss// ratine ggrroouupp pprriiccee rraattiioo pprriiccee rraattiioo Period United TToottaall ll States (long- RRee-- Aaa Baa Indus- Rail- Public term) Total i Aaa NNeeww cceennttllyy trial road utility PPrree-- CCoomm-- CCoomm-iissssuuee ooffffeerreedd ffeerrrreedd mmoonn mmoonn Seasoned issues 1963. 4.00 3.28 3.06 3.58 4.21 4.50 4.26 444...888666 4.42 444...666555 444...444111 444...333000 333...111777 555...666888 1964. 4.15 3.28 3.09 3.54 4.34 4.57 4.40 444...888333 44..5522 444...666777 444...555333 444...333222 333...000111 555...555444 1965. 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 444...888777 44..6611 444...777222 444...666000 444...333333 333...000000 555...888777 1966. 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 555...666777 55..3300 555...333777 555...333666 444...999777 333...444000 666...777222 1967. 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 666...222333 55..7744 555...888999 555...888111 555...333444 333...222000 555...777111 1968. 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 666...999444 66..4411 666...777777 666...444999 555...777888 333...000777 555...666444 1969. 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 777...888111 77..2222 777...444666 777...444999 666...444111 333...222444 666...000888 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—Sept.. 5.70 5.38 5.12 5.69 7.40 7.42 7.59 7.22 8.09 7.36 7.97 7.63 7.00 2.83 5.56 Oct... 5.69 5.24 5.03 5.45 7.38 7.41 7.59 7.21 8.06 7.36 7.97 7.63 7.03 2.82 Nov.. 5.50 5.11 4.91 5.37 7.09 7.21 7.52 7.12 7.99 7.28 7.95 7.55 6.93 2.73 Dec.. 5.63 5.13 4.91 5.39 7.15 7.21 7.47 7.08 7.93 7.22 7.91 7.48 6.92 2.70 5.46 1973—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 Sept.. 6.42 5.13 4.90 5.41 7.88 7.99 8.06 7.63 8.63 7.89 8.37 8.09 7.38 3.13 Week ending— 1973—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 77..5500 33..1177 8. 6.45 5.20 5.00 5.50 7.94 8.02 8.09 7.64 8.66 7.92 8.42 8.13 77..5511 33..1155 15. 6.52 5.19 5.00 5.45 7.74 8.06 8.06 7.63 8.64 7.90 8.38 8.08 7.39 3.20 22. 6.43 5.11 4.90 5.40 8.03 8.03 8.07 7.65 8.64 7.90 8.38 8.10 7.34 3.12 29. 6.28 5.01 4.70 5.32 7.81 7.84 8.02 7.60 8.56 7.84 8.32 88..0088 77..2299 33..0044 Number of issues2.. . 112211 2200 3300 4411 3300 4400 1144 550000 550000 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) Corarately. 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; earnings/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 comcomputed 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 % hours per day, or 27*4 hours per week. companies) for purchase of single-family homes. Data exclude loans for In recent years shorter days and/or weeks have cut total weekly trading refinancing, reconditioning, or modernization; construction loans to to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- homebuilders; and permanent loans that are coupled with construction Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- loans to owner-builders. Series beginning 1965, not strictly comparable 22Vi; 1970—Jan. 2-May 1, 25. with earlier data. See also the table on Home-Mortgage Yields, p. A-53. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Exchange ( 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 i u al s - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u al s - T p t o r i a r o t n n a s - - Utility na F n i- ce 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—Sep t 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 12.42 126.05 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 Sept 61.81 86.2 61.3 105.61 118.52 35.49 52.31 56.71 62.25 35.82 36.79 72.23 101.88 17,320 2,055 Week ending— 1973—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 8. 61.52 85.1 60.6 104.77 117.62 34.70 51.77 56.05 61.56 34.57 36.36 71.32 100.83 14,851 2,059 15, 61.00 85.5 61.1 103.59 116.19 34.81 51.25 55.48 60.90 34.45 36.24 70.20 100.35 12,356 2,055 22, 61.70 86.7 61.4 105.55 118.51 35.55 51.97 56.75 62.32 36.10 36.60 72.46 101.18 21,157 3,379 29, 62.97 87.4 61.8 108.35 121.59 36.74 53.67 58.43 64.07 37.89 37.86 74.76 104.95 20,422 3,264 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t n c r t e - 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 ) t y L c p r ( o e a p r n a t i e c i n r t o e ) / (t d h c o p P o h l r u u l a i a s r c s . r - e e s o ) f (t a d h m L o o l o u o la a s u r . n n s o t ) f C c t ( r r e p a o a n e t n c r t e - t ) c F c h ( e e a p n e r e s t g r ) & e i s M (y a e t a u r r s i ) t y L c r p ( o e a p r n a t e i i c r t n o e ) / (t d h c o p o P h l r u u l a i a s r c s . r - e e s o ) f (t d a h L m o o l u o l o a a s u . r n n s o ) t f 196 5 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 196 6 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 196 7 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 196 8 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 196 9 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 197 0 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 197 1 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 197 2 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1972—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' 7.69 1.11 26.3 78.1 37.0 28.3 7.70 .91 24.1 75.5 33.3 24.6 Aug. 7.77 1.08 26.9 76.9 38.6 29.1 7.86 .93 23.8 75.8 32.3 24.0 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT • OCTOBER 1973 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregulated 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 accts. 9,092 8,060 1,032 7,780 961 246 54 34 1,800 1,298 384 9,091 8,083 1,008 7,800 937 248 54 35 1,871 1,255 380 9,024 8,081 943 7,800 872 250 53 31 1,875 1,351 389 9,068 8,166 902 7,890 831 249 52 27 1,871 1,396 390 9,045 8,180 865 7,900 798 254 50 26 1,896 1,528 414 8,840 7,975 865 7,700 796 249 48 26 1,940 1,484 413 8,620 7,753 867 7,480 800 248 50 25 1,954 1,508 431 8,344 7,465 879 7,197 813 244 48 24 1,917 1,566 442 8,165 7,293 872 7,040 804 232 49 21 1,969 1,482 389 7,650 6,784 866 6,540 802 224 47 20 2,010 1,502 413 7,287 6,416 871 6,180 800 215 53 21 1,964 396 6,243 6,010 216 17 379 6,056 5,830 210 16 348 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) TToottaall Equity class (per cent) Equity class of accounts ddeebbtt Net in debiit status Total ((mmiill-- End of period credit balance EE ppee nn rr dd ii oo oo dd ff ll dd ii oo oo oo ff nn ll -- ss 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e n t 6 L 0 e p ss e r t h c a e n n t of ( m do il l l l i a o r n s s ) llaarrss))!! 33.4 55.2 11.4 5,990 1972—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.. 7,500 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.. 6,010 5.8 8.8 17.7 22.7 25.3 19.7 35.9 45.6 18.5 5,650 Aug.. 5,830 5.0 8.4 16.4 19.6 24.2 26.4 NOTE.—Special miscellaneous accounts contain credit balances that i See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Securities Total Mortgage loan assets— commitments 3 End of period M ga o g r e t - G U o . v S t . . g S l a o o t n c a v d a t t e l . o C t r a o h a n r e t d p e r o 1 - Cash O as t s h e e t r s g l r i T e e a a t s n o b i n e e e t i r d s r a l v i a l - e ] De it p s o 2 s - l O ia t t i b h e i s e l r i- G re e s n e e r r v a e l classi ( f i i n e d m b o y n t m h a s) t urity accts. 3 or Over Total less 9 196 5 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 196 6 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 196 7 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 196 8 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 3,011 196 9 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1.588 5,530 584 485 452 946 2,467 197 0 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 1,931 197 1 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 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 Juner.. 70,637 3,959 3,346 1,125 22,562 1,775 2,273 105,677 95,706 2,650 7,321 1,711 1,020 573 1,378 4,683 July r.. 71,219 3,819 3,190 1,093 22,683 1,555 2,202 105,761 95.355 3,044 7,362 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 difdeposits" 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 TToottaall MMoorrtt-- RReeaall PPoolliiccyy OOtthheerr End of period aasssseettss Total U S n ta i t t e e s d Sta lo te c a a l n d Foreign 1 Total Bonds Stocks ggaaggeess eessttaattee llooaannss aasssseettss Statement value: 196 5 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 196 6 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 196 7 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 196 8 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 196 6 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 196 7 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 196 8 188,636 10,760 4,456 3,206 3,098 79,653 68,731 10,922 70,044 5,575 11,305 11,299 196 9 197,208 10,914 4,514 3,221 3,179 84,566 70,859 13,707 72,027 5,912 13,825 9,964 197 0 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16.064 10,909 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17.065 11,832 1972? 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 12,720 1972—June. 229,947 11,134 4,421 3,351 3,362 107,076 83,099 23,977 75,404 7,144 17,522 11,667 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—Ja n 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 June . 244,531 11,359 4,468 3,373 3,518 116,153 90,484 25,669 77,914 7,548 18,673 12,884 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 • OCTOBER 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Liabilities Total assets— End of period M ga o g r e t s - I s i n m e t v i c e e u e n s s r t 1 t - - Cash Other2 lia T b o il t i a t l i es S c a a v p i i n ta g l s wo N r e th t 3 m r B o o w n or e e - d y 4 Loans Other 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 194,955 24,321 12,125 231,401 196,571 15,432 7,512 6,100 5,786 197,881 24,102 12,277 234,260 199,966 14.991 8,080 6,119 5,104 200,554 24,648 12,457 237,659 202,012 15,485 8,327 6,086 5,749 203,266 24,750 12,689 240,705 203,889 15.992 8,503 6,067 6,254 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 6 208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 6,766 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 216,250 23,943 17,605 257,798 217,026 16,133 11,336 6,548 6,755 219,500 24,072 17,990 261,562 218,906 16,505 11,756 6,727 7,668 222,801 23,362 18,038 264,201 222,183 16,315 12,766 6,770 6,167 225,490 22,769 18,416 266,675 221,958 16,640 14,295 6,702 7,080 227,995 21,151 18,811 267,957 220,772 17,014 15,706 6,455 8,010 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 passinvestments, 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 ppeerriioodd Ad- Cash Mem- A/T T-t Deben- Loans Loans va t n o c es I m nv e e n s t t s - a d n e d - B a o n n d d s b d e e r - C s a t p oc it k a l gage t a u n r d es coo t p o er- D t e u b r e e n s - a d n is d - D t e u b r e es n - M ga o g r e t - Bonds mem- posits notes posits notes atives counts loans bers (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—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 Aug... 13,511 2,016 111 12,562 1,091 2,064 22,319 21,186 2,865 2,310 7,899 6,727 10,441 9,390 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

OCTOBER 1973 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, AUGUST 31 1973 y Cou- Amount Cou- Amount Cou- Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon and maturity rate of dollars) and maturity rate of dollars) and maturity rate Federal home loan banks Federal National Mortgage Banks for cooperatives Bonds: Association—Cont. Debentures: 11/27/72-11/27/73 5.55 600 Debentures: 10/1/70 - 10/1/73. 7.30 1/26/70 - 1/25/74 8.40 300 3/10/70-9/10/73 8.10 300 4/2/73 - 10/1/73.. . 6.95 6/26/70 - 2/25/74 8.40 250 6/10/71 -9/10/73 6.13 350 5/1/73 - 11/1/73... 6.75 8/27/71 - 2/25/74 7.10 300 12/10/70 - 12/10/73. . .. 5.75 500 6/4/73 - 12/3/73... 6.85 6/25/71 - 5/25/74 6.35 300 8/10/71 - 12/10/73 7.15 500 7/2/73 - 1/2/74... . 7.55 2/26/73 - 5/28/74 6.45 700 12/1/71 - 3/11/74 5.45 400 8/1/73 - 2/4/74 , 8.70 8 8 8 / / / 2 2 2 5 7 5 / / / 6 7 7 9 3 2 - - - 8 8 8 / / 2 2 /2 6 6 5 / / 7 7 / 4 7 4 4 9 7 53 . % / 6 g 5 4 8 1 0 0 7 0 6 0 4 8 1 / / 1 1 5 /1 0 /7 0 / 0 7 / 7 0 1 - - - 6 6 3 / / / 1 1 1 0 1 0 / / / 7 7 7 4 4 4.. 7 7 5 . . . 7 7 9 5 0 0 4 3 3 0 5 5 0 0 0 Federal intermediate 11/25/69 - 11/25/74.... 8.00 221 9/10/69 - 9/10/74.. 7.85 250 credit banks 5/25/73 - 11/25/74 7.05 ,000 2/10/71 - 9/10/74... 5.65 300 Debentures: 1 1/ 1 2 / 6 2 / 7 71 / 7 - 2 - 2 2 / / 2 2 5 5 /7 / 5 7 5 5 6. % 10 4 2 0 5 0 0 9 5 / / 1 1 0 0/ / 7 7 1 1 - - 1 1 2 2 / / 1 1 0 0 / /7 7 4 4 . . . . 6 6. .1 45 0 2 45 5 0 0 1 1 / 2 2 / / 4 7 / 3 7 2 - - 1 9 0 / / 4 1 / / 7 7 3 3 5 5 . . 4 7 5 0 8/25/70 - 5/26/75 8.05 265 11/10/70 - 3/10/75. 7.55 300 2/1/73 - 11/1/73 6.00 7/27/70 - 8/25/75 7.95 300 10/12/71 - 3/10/75. 6.35 600 3/1/73 - 12/3/73 6.15 4/12/73 - 5/25/75 7.15 700 4/12/71 -6/10/75... 5.25 500 4/2/73 - 1/2/74 7.00 7/25/73 -8/25/75 77/8 500 10/13/70 - 9/10/75. 7.50 350 7/1/71 - 1/2/74 6.85 12/18/70- 11/25/75 6.50 350 3/12/73 -9/10/75... 6.80 650 5/1/73 -2/4/74 6.90 5/25/73 - 11/25/75 7.05 600 3/10/72 - 12/10/75. 5.70 500 6/4/73 - 3/4/74 7.00 8 8 / / 2 2 7 7 / / 7 7 1 3 - - 2 2 / / 2 25 5 / / 7 7 6 6 7 8 K % 3 3 0 0 0 0 3 6 / / 1 1 1 2 / / 7 7 1 3 - - 3 3 / / 1 1 0 0 / / 7 7 6 6 . . . . . . 5 7 . . 6 1 5 3 4 5 0 0 0 0 7 8 / / 2 1 / / 7 7 3 3 - - 4 5 /1 /1 / / 7 7 4 4 7 8. % 65 7/25/73 - 8/25/76 7.80 500 6/10/71 -6/10/76... 6.70 250 1/4/71 - 7/1/74 5.95 6/25/71 -5/25/77 6.95 200 2/10/72 - 6/10/76... 5.85 450 5/1/72 - 1/2/75 6.05 6/22/73 - 5/22/77 7.20 600 11/10/71 -9/10/76.. 6.13 300 1/3/72-7/1/75 5.70 4 2 / / 1 2 2 6 / / 7 7 3 3 - - 8 1 / 1 2 / 5 2 / 5 7 / 7 7 7 7 6 . % 15 3 3 0 0 0 0 6 7/ / 1 1 2 2 / / 7 7 1 2 - - 9 1 / 2 1 / 0 1 / 0 7 / 6 7 . 6 5 7 . . 8 4 5 5 5 3 0 0 0 0 7 3 / / 2 1 / / 7 7 3 3 - - 1 1 / / 3 5 / / 7 7 7 6 6 7 . . 6 1 5 0 3 1 / 0 2 / 5 1 / 5 70 / 70 - - 2 1 / 0 2 / 5 1 / 5 8 / 0 8 0 7 7 . . 7 8 5 0 2 3 0 50 0 2 1 / 2 1 / 3 1 / 1 62 / 72 - - 2 1 / 2 1 / 0 1 / 0 7 / 7 7 6 4 6. % 25 5 1 0 9 0 8 Federal land banks 10/27/71 - 11/27/81 6.60 200 9/11/72-3/10/77 6.30 500 Bonds: 4/12/73 - 5/25/83 7.30 200 12/10/70 - 6/10/77 6.38 250 2/20/63 - 2/20/73-78... 4H 8/27/73 - 5/25/83 9V4 700 5/10/71 -6/10/77 6.50 150 4/20/70 - 10/22/73 7.80 Fe B de o r M 2 8 7 5 5 1 n a / / / / / 1 d 1 1 2 1 l o 1 / 5 / 0 s 1 r 1 1 H 7 : / / / t 1 / 9 7 7 7 g o 7 1 2 2 / a m - 2 7 g - - - - 0 e e 8 2 1 - 5 8 1 / / L C / / 2 2 1 / 2 2 o 2 o 1 6 5 6 6 a 6 r / / / / n 2 / / p 9 7 9 7 7 7 6 7 o 7 4 3 / r 9 a 5 t ion 6 8 6 7 7 5 . . . . . . 1 7 1 6 7 3 5 5 5 0 0 0 2 3 1 1 1 1 0 5 5 4 5 5 0 0 0 0 0 0 9 2 2 6 2 7 6 1 1 1 / / / / / / 2 0 / / 1 1 1 1 1 1 1 1 / / 0 6 6 1 0 0 2 1 6 2 / / / 0 2 / / / / / 7 7 7 7 7 7 7 / / 7 1 3 3 3 3 3 2 7 7 2 1 1 - - - - - - - - 9 6 9 - - 7 7 3 1 1 / / / / / / 1 1 0 2 1 3 3 1 / / 2 2 1 1 0 1 1 0 3 1 / / 2 2 / / / / 0 2 7 7 7 8 8 8 / / / / 8 7 9 0 0 0 1 1 8 7 0 7 0 1 / / 7 7 9 8. . . . . . . . 4 7 6 6 6 6 7 6 5 3 . . . . . . . . . . 5 9 2 8 8 1 1 7 1 4 5 6 5 8 9 5 5 0 8 8 5 2 6 3 3 3 3 0 5 5 0 0 0 0 0 0 0 0 0 0 9 5 0 1 4 4 9 4 2 2 7 1 1 1 / / / / / / / 0 0 0 2 2 2 2 2 2 1 / / / 0 3 0 0 0 0 2 2 2 5 / / / / 1 / / 0 3 / 7 7 6 7 7 7 / / / 7 1 3 5 0 2 2 7 7 7 2 1 2 0 - - - - - - - 4 - - - 1 1 / 4 2 1 1 / 0 2 1 / 4 / 7 2 / / / 0 2 2 2 2 2 / / 0 2 / 1 2 0 2 0 1 / / 1 2 7 / 7 2 / / 7 / / 3 7 7 7 4 7 5 / / 7 / 5 5 4 4 7 7 4 7 4 4 3 4 5 4 8 7 7 5 5 5 5. . . . i . . . M M 8 / 1 3 3 5 8 8 5 i 5 0 0 5 5 0 Federal National Mortgage 12/11/72- 12/10/80 6.60 300 7/20/73 -4/21/75 7.65 Association— 6/29/72 - 1/29/81 6.15 156 2/15/72 -7/21/75 5.70 Secondary market 3/12/73 - 3/10/81 7.05 350 7/20/71 - 10/20/75 7.20 operations 4/18/73-4/10/81 6.59 26 4/20/72 - 1/20/76 614 Discount notes 1,638 3/21/73 - 5/1/81 4.50 18 2/21/66 - 2/24/76 5.00 Capital debentures: 3/12/73 - 5/1/81 5.77 2 1/22/73 - 4/20/76 6*4 9/30/68 - 10/1/73 6.00 250 1/21/71 - 6/10/81 7.25 250 7/20/66 - 7/20/76 5^ 4/1/70 - 4/1/75 8.00 200 9/10/71-9/10/81 7.25 250 4/23/73 - 10/20/76 7.15 9/30/71 - 10/1/96 4.38 248 6/28/72-5/1/82 5.84 58 7/20/73 - 7/20/77 7Vi 10/2/72- 10/1/97 7.40 250 2/10/71 - 6/10/82 6.65 250 10/27/71 - 10/20/77.... 6.35 9/11/72- 9/10/82 6.80 200 5/2/66 - 4/20/78 5H Mo 3 6 3 r / / / 1 t 1 1 g / 4 4 7 a / / 0 g 7 7 e 3 3 - - - - b 1 1 6 a / / / c 1 1 2 k 5 5 / e 7 / / d 5 8 8 1 1 b onds: 8 5 3 . . . 3 4 5 8 8 8 25 5 0 3 6 4 6 3 1 / / / 1 1 1 1 / 1 2 1 2 / 0 / / 7 7 / 7 1 3 7 1 1 - - - 6 - 6 6 9 / / / 1 1 / 1 1 0 1 0 2 / / / 8 8 8 / 3 4 8 3 3 6 6 6 7 . . . . 7 2 7 3 5 5 5 0 2 2 2 3 5 0 0 0 0 0 0 0 9 7 2 1 / / / 0 2 2 1 / 0 0 2 5 / / 3 / 6 7 / 7 7 2 7 2 2 - - - 4 - 1 / 7 / 2 1 2 / 0 3 2 2 / 0 / / 2 7 7 / 3 9 7 9 / 8 . 7 9 6 5 6 6 . . . . 8 8 4 0 5 0 0 0 6/21/73- 7/1/82 5.85 72 12/10/71 - 12/10/84 6.90 250 1/22/73 - 1/21/80 6.70 6/21/73 - 7/1/82 5.92 35 3/10/72 - 3/10/92 7.00 200 7/20/73 - 7/21/80 7}i 3 3 / / 1 1 / / 7 7 3 3 - - 1 8 0 /3 /3 1 1 /8 / 4 8 4 5 5 . . 4 5 9 0 2 1 1 0 6 1 / 2 1 / 2 1 / 1 7 /9 2 7 - - 6 / 1 1 2 0 / / 1 9 0 2 / 97 7 7 . . 0 1 5 0 2 20 0 0 0 4 2 / /2 2 3 0 / / 7 7 1 2 - - 4 4 / / 2 2 0 0 / / 8 8 1 2 6 6 . . 7 9 0 0 9 3 / / 2 1/ 9 7 / 3 7 0 - - 3/ 1 1 0 / / 8 1 6 / 90 5 8. . 6 7 3 4 20 81 0 4/23/73 -4/20/82 7.30 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERAL FINANCE • OCTOBER 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest- of Net lend- out- or Public Plus: ments by Govt, Equals: Trea- financ- Budget ex- ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi- (-) securi- securi- Special borrow- operat- Other net4 tures ties ties notes 3 ing ing S i p ss e u c e ia s l Other balance Fiscal year: 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 197 3 232,192 246,603 -14,412 30,881 216 12,029 -207 19,275 2,459 -1,287 -3,691 Half year: 1971—July-Dec. 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-Dec. 106,061 118,586 -12,525 22,037 876 r6,239 -861 17,386 r956 1,525 -5,430 1973—Jan.-Dec. 126,131 128,017 -1,887 8,844 -660 5,790 654 1,889 1,503 238 1,739 Month: 1972—Au g '"18,102 r20,689 -2,587 3,056 534 2,639 16 934 -4,012 r211 -2,148 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—Ja n 21,130 23,631 -2,501 770 18 -900 168 1,519 302 99 1,383 Feb 18,067 20,227 -2,160 4,770 -9 780 119 3,863 408 -212 -1,507 Mar 15,987 20,806 -4,820 3,768 27 584 206 3,005 1,152 -83 2,883 Apr 25,860 22,306 3,554 -1,543 -721 -56 -49 -2,159 1,220 1,164 988 May 16,584 20,157 -3,573 275 -43 1,968 234 -1,970 -5,924 -1,141 -1,522 June 28,504 20,892 7,612 803 68 3,414 -174 -2,369 4,344 414 -485 July 18,121 22,627 -4,486 862 9 1,258 325 -713 -5,398 -544 -743 Aug 21,291 22,139 -847 2,842 301 3,137 568 -563 -4,105 151 -2,544 Selected balances Treasury operating balance Federal securities Less: B F a . n R k . s ac l c T a o o n a a u d x n n ts 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 t i i c e s s A ec g u e r n it c i y e s G In o v v e t s , t m ac e c n o t u s n o t f s S n L p o e e t c s e s i s a : 3 l E T h q b o e u t y l a d a l l s : S i p ss e u c e ia s l Other public 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 2,020 9,173 113 ,306 424,131 11,044 85,544 22,922 825 325,884 1,856 8,907 310 ,073 449,298 11,770 95,924 23,164 825 341,155 1,730 3,025 222 4,976 435,439 11,437 93,616 24,002 825 328,433 1,395 8,105 259 9,759 433.946 11,459 92,281 23,490 825 328,809 1,613 6,051 309 7,973 439.947 11,483 95,365 23,579 825 331,660 1,182 6,786 310 8,278 444,247 11,863 94,821 23,506 825 336,958 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 2,749 8,317 310 11,376 450,068 11,787 95.024 23,332 825 342,674 2,073 9,401 310 11,784 454,838 11,779 95,804 23,451 825 346,537 2,882 9,744 309 12,935 458,606 11,806 96,413 23,632 825 349,542 4,162 9,683 311 14,156 457,063 11,084 96,356 23,583 825 347,383 3,242 4,679 311 8,232 457,338 11,041 98,324 23,817 825 345,414 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 2,867 4,203 108 7,178 459,003 11,118 102,996 23,968 825 342,332 847 2,217 8 3,072 461,845 11,419 106,133 24,516 825 341,769 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 deposicrease the outstanding amounts of Federal securities held by the public taries" (deposits in certain commercial depositaries that have been conmainly 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

OCTOBER 1973 • FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation Social insurance taxes Individual income taxes income taxes and contributions Period Total W he it ld h - N w h o i e t l n h d - - fu R n e d - s t N ot e a t l c G e r r i e p o - t s s s fu R n e d - s c E o P n m t a a t y p r x - i l e b o s u y a t m S i n o e e d l n n f s - t i i e n U m s n u p - r l. . c O e n i r t p h e e - t t e s r 2 t N ot e a t l E ta x x c e is s e t C o u m s s - E a g s n i t f d a t te c M e r i i p e s - t c s . ' roll empl. taxes Fiscal year: 197 0 193,743 77,416 26,236 13,240 90,412 35,037 2,208 37,190 1,942 3,465 2,700 45,298 15,705 2,430 3,644 3,424 197 1 188,392 76,490 24,262 14,522 86,230 30,320 3,535 39,751 1,948 3,673 3,206 48,578 16,614 2,591 3,735 3,858 197 2 208,649 83,200 25,679 14,143 94,737 34,926 2,760 44,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 1973* 232,192 98,097 27,031 21,867 103,261 38,989 2,893 52,499 2,371 6,064 3,612 64,546 16,272 3,175 4,898 3,944 Half year: 1971—July-Dec.. 93,180 38,449 5,589 574 43,465 13,262 1,448 19,643 155 1,518 1,673 22,989 8,961 1,838 2,395 1,718 1972—Jan.-June. 115,469 44,751 20,090 13,569 51,272 21,664 1,312 24,445 1,877 4,736 1,764 30,925 6,516 1,449 3,041 1,915 July-Dec.. 106,061 46,058 5,784 688 51,154 15,315 1,459 22,493 165 2,437 1,773 26,867 8,244 1,551 2,333 2,056 1973—Jan.-June* 126,131 52,038 21,247 21,179 52,106 23,674 1,434 30,006 2,206 3,627 1,839 37,679 8,028 1,625 2,566 1,888 Month: 1972—Au g '18,102 '8,168 362 157 '8,373 855 190 5,367 1,175 307 r6,850 1,351 278 423 '163 Sept 22,183 7,305 3,794 95 11,005 5,289 324 3,529 145 63 302 4,038 1,327 237 316 295 Oct 14,738 7,187 469 61 7,595 1,287 323 3,225 15 210 31 3,759 1,387 281 409 343 Nov 16,748 8,425 257 69 8,613 853 294 4,044 637 287 4,969 1,452 284 487 383 Dec 18,972 7,915 353 61 8,206 5,772 140 2,601 92 277 2,975 1,286 234 364 276 1973—Ja n 21,130 8,254 4,671 27 12,897 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 ,316 444 302 6,359 1,318 262 330 348 May 16,584 8,813 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June* 28,504 9,171 3,747 597 12,321 8,927 188 4,542 145 106 291 5,085 1,397 261 317 384 July 18,121 8,487 681 354 8,814 1,552 202 4,608 382 346 5,336 1,538 276 398 409 Aug 21,291 9,085 451 257 9,279 904 209 7,087 1,357 333 8,778 1,434 303 494 308 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- re- and lop. and and erans est eral nue transfense search ture sources transp. and man- wel- govt. shar- achous- 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 '3,786 3,422 '7,061 '3,759 '11,197 '4,216 '10,198 '81,536 '10,747 '20,584 '4,889 -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 10,110 103,709 11,732 24,672 6,025 6,035 -9,131 Half year: 1971—July-Dec... 111,557 35,755 1,752 1,777 5,999 1,952 6,030 2,181 4,355 38,131 5,003 10,050 2,392 -3,822 1972—Jan.-June.. 120,319 42,583 '2,034 1,645 1,062 1,807 '5,167 2,035 '5,843 '43,405 5,744 '10,534 '2,497 -4,036 July-Dec... 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 --44,,003399 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—Au g r20,679 '6,016 300 289 1,127 '534 '1,323 658 '906 6,779 858 '1,726 573 -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 1,493 -324 May 20,157 6,401 136 255 -155 298 907 -148 1,066 8,124 1,017 2,165 466 3 -377 June 20,891 8,043 489 306 3 173 1,307 314 1,336 8,199 866 2,016 451 -2,611 July 22,607 4,878 308 278 2,011 942 2,104 911 777 7,792 1,099 2,184 563 1,495 -850 Aug 22,139 6,772 327 262 440 573 1,090 779 954 7,935 1,054 2,159 466 -3 -670 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 miscellaneous 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 • OCTOBER 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l a s i s l c Marketable Con- Nonmarketable debt 1 Total Total Bills C c e a r t t e if s i - Notes Bonds 2 b v i o b e n r le d t- s Total 3 F is o su re e i s g n 4 b S o in a n g v d s - s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 2.4 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 1.5 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 1972—Sept. 433.9 339.8 257.7 96.4 115.7 45.7 2.3 79.8 21.7 Oct.. 439.9 342.7 260.9 97.5 117.7 45.6 2.3 79.6 21.2 Nov. 444.2 347.6 265.6 100.7 119.4 45.5 2.3 79.6 21.0 Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 1973—Jan.. 450.1 353.2 271.1 104.9 121.5 44.7 2.3 79.7 20.5 Feb. 454.8 357.1 269.9 105.0 120.2 44.6 2.3 84.9 25.4 Mar. 458.6 360.4 269.8 105.0 120.2 44.6 2.3 88.3 28.3 Apr. 457.1 358.9 267.8 103.2 120.2 44.5 2.3 88.7 28.5 May 457.3 357.1 265.9 103.0 117.8 45.1 2.3 88.9 28.3 June 458.1 354.6 263.0 100.1 117.8 45.1 2.3 89.4 28.5 July. 459.0 354.2 262.7 99.9 117.8 45.0 2.3 89.2 28.2 Aug. 461.8 353.8 262.4 101.8 118.7 42.0 2.3 89.1 27.9 Sept. 461.4 354.1 262.4 99.8 120.7 41.9 2.3 89.5 28.2 1 Includes non-interest-bearing debt (of which $619 million on Sept. 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 30, 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, and Rural Electrification Administration bonds; before 1954, NOTE.—Based on Daily Statement of U.S. Treasury. See also second Armed Forces leave bonds; before 1956, tax and savings notes; and paragraph in NOTE to table below. before Oct. 1965, Series A investment bonds. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by— Held by private investors Total U.S. p g d u r e b o b l s t i s c ag G t a e r o n n u v c d s t i t , e s B F a . n R k . s TToottaall mm CC bb ee aa oo rr nn mm cc kk iiaa -- ss ll M s M s bb aa aa vv uu nn ii tt nn uu kk gg aa ss ss ll p I c a n a o n s n m u c ie e r - s - r c O a o t t r i h p o e n o r - s g S l a o o t n v c a a d t t s e l . Savi I n n g d s i vidu O a t ls h er n F a i o t n a i r t o n e e n d i r g a - n l 1 t i O m o n r t v i h s s e c e s 2 . r funds bonds securities 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 368.2 89.0 57.2 222.0 56.8 2.9 7.1 11.7 25.9 51.8 29.6 11.2 25.0 389.2 97.1 62.1 229.9 62.7 2.8 7.0 9.4 25.2 52.1 29.8 20.6 20.4 424.1 106.0 70.2 247.9 65.3 2.7 6.6 12.4 25.0 54.4 19.6 46.9 15.0 433.9 113.5 69.7 250.7 60.8 2.8 6.1 8.9 27.2 56.8 17.2 55.3 15.7 439.9 116.7 70.1 253.1 61.0 2.7 5.9 10.4 28.0 57.1 17.0 55.8 15.2 444.2 116.1 69.5 258.6 63.5 2.7 6.1 12.0 27.9 57.4 17.1 56.0 16.1 449.3 116.9 69.9 262.5 67.0 2.6 6.0 11.7 28.3 57.7 17.0 55.3 17.0 450.1 116.2 72.0 261.8 66.0 2.6 6.1 12.3 29.5 58.0 16.8 54.2 16.5 454.8 117.1 72.6 265.1 62.4 2.6 5.8 12.7 29.0 58.3 16.6 61.1 16.7 458.6 117.9 74.3 266.4 61.6 2.5 5.9 13.0 28.9 58.6 16.6 63.1 16.3 457.1 117.9 75.5 263.7 60.1 2.5 5.7 12.5 28.7 58.9 16.5 61.7 17.2 457.3 120.1 74.1 263.1 57.9 2.4 5.7 13.3 28.1 59.2 16.4 '61.1 '18.9 458.1 123.4 75.0 259.7 57.9 2.4 5.7 12.0 28.3 59.5 16.4 60.2 17.4 459.0 125.0 77.1 256.9 55.5 2.2 '5.8 r12.8 27.9 59.7 16.5 59.7 '16.7 461.8 128.7 76.1 257.1 54.1 2.1 5.7 14.0 27.2 59.8 16.8 59.2 18.2 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

OCTOBER 1973 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 ea -5 r s y 5 e - a 1 r 0 s 1 y 0 ea -2 r 0 s 20 O y v e e a r r s 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—July 31 262,708 122,602 99,860 22,742 88,223 31,108 14,456 6,318 Aug. 31 262,405 129,072 101,780 27,292 80,594 31,105 15,346 6,288 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—July 31 20,422 1,703 415 1,288 7,278 5,468 4,343 1,630 Aug. 31 21,039 1,870 483 1,387 7,101 5,513 4,900 1,655 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—July 31 77,098 38,501 35,483 3,018 27,595 9,374 1,419 208 Aug. 31 76,093 42,504 34,829 7,675 22,449 9,384 1,564 192 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—July 31 165,188 82,398 63,962 18,436 53,350 16,266 8,694 4,480 Aug. 31 165,273 84,698 66,468 18,230 51,044 16,208 8,882 4,441 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—July 31 43,101 12,470 4,953 7,517 24,840 4,716 817 259 Aug. 31 42,045 12,875 5,142 7,733 23,410 4,672 833 254 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—July 31 2,236 418 174 244 1,028 371 270 150 Aug. 31 2,105 454 148 306 861 363 284 145 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—July 31 5,034 836 324 512 1,030 1.267 1,326 575 Aug. 31 4,907 731 272 459 1,005 1.268 1,340 564 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 1973—July 31 5,212 3,536 1,388 2,148 1,509 103 52 13 Aug. 31 5,745 4,078 1,822 2,256 1,500 92 62 11 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 2,373 820 498 322 1,140 605 226 81 1973—July 31 2,\567 608 223 385 1,138 529 214 78 Aug. 31 2,457 607 185 422 1,025 538 211 77 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—July 31 10,114 5,748 4,601 1,147 2,003 922 1,065 376 Aug. 31 9,309 5,328 4,456 872 1,862 849 987 283 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—July 31 96,924 58,782 52,299 6,483 21,802 8,358 4,950 3,029 Aug. 31 98,705 60,625 54,443 6,182 21,381 8,426 5,165 3,107 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 739 insurance companies combined, each about 90 per cent; Ownership. (2) 464 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 504 State and local govts., about 40 per cent. but data for other groups include only holdings of those institutions "All others," a residual, includes holdings of all those not reporting that report. The following figures show, for each category, the number in the Treasury Survey, including investor groups not listed separately. and proportion reporting: (1) 5,614 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES • OCTOBER 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 TToottaall securities Within 1-5 5-10 Over U.S. Govt. U.S. Govt. Com- All 1 year yyeeaarrss yyeeaarrss 10 years securities securities mercial other 1 dealers brokers banks 1972—Aug 2,658 1,953 377 191 137 587 411 911 749 443 Sept 2,695 2,225 231 143 97 635 504 845 710 482 Oct 3,047 2,473 350 126 99 837 420 988 802 561 Nov 3,397 2,397 709 168 123 835 498 1,228 837 731 Dec 3,184 2,640 361 118 65 757 352 1,215 860 472 1973—Jan 3,158 2,445 443 148 122 793 470 1,113 781 463 Feb 4,155 2,975 721 370 89 888 808 1,360 1,099 645 Mar 3,077 2,311 508 201 57 713 585 987 792 664 Apr 3,185 2,535 440 165 46 709 636 1,075 766 714 May 3.187 2,390 322 323 153 661 543 1,057 927 687 June 2; 969 2,335 289 228 118 593 622 975 778 732 July 2,993 2,330 367 226 72 581 632 982 798 700 Aug 3,366 2,403 706 172 85 566 874 1,044 881 771 Week ending— 11997733——AAuugg.. 11 3,388 2,318 661 277 132 587 768 1,085 948 570 88 3,073 1,978 729 208 158 521 826 950 777 476 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 2,557 810 149 50 587 1,031 1,150 797 610 Sept. 5 3,128 2.459 556 89 25 492 721 955 962 1,072 12 3,188 2,407 625 106 51 532 779 982 895 877 19 3,389 2.665 541 118 66 563 898 1,097 831 986 26 5,105 3,977 786 260 82 730 1.976 1,307 1,092 1,333 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 bai<ks U.S. ma t A i t e l u l s r i- W y i e t 1 a h r i n y 1 ea -5 r s y 5 ea -1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e o i u e n v s r c t i , y - Period sou A r l c l es Y N C o e it r w y k w E h ls e e r - e C t o i r o p n o s r 1 a- 3,905 3,370 41 130 363 404 1972—Aug.. 4,021 1,356 580 927 4,386 4,374 -83 -58 153 408 Sept.. 4,379 1,633 599 705 3,333 3,452 -29 -132 41 543 Oct... 3,055 1,227 406 490 4,522 4,113 335 8 66 834 Nov.. 4,198 1,538 617 709 4,973 4,903 73 -41 37 556 Dec.. 4,848 1,695 808 944 4,744 4,959 -53 -259 97 281 1973—Jan.., 4,520 1,346 794 932 3,394 3,365 -9 -1 39 202 Feb.. 3,415 1,063 455 490 2,702 3,130 -274 -143 180 Mar.. 2,799 903 292 281 2,795 3,105 -159 -143 -9 274 Apr.. 3,032 935 513 311 2,626 2,596 -324 179 175 356 May. 2,667 674 452 252 2,976 2,818 -165 91 232 744 June. 3,769 1,242 690 431 1,901 2,062 -250 -43 131 511 July. . 2,826 725 544 510 1,788 1,977 -94 -107 12 273 Aug.. 2,318 829 327 386 Week ending— 2,595 2,636 -234 23 171 620 1973—July 4. 3,423 875 743 481 2 2 , , 0 01 3 7 4 2 2 , , 1 12 2 9 0 - -2 2 1 4 5 4 -5 2 6 8 1 1 3 5 1 8 6 6 8 7 6 6 1118 .. 2 3 , , 9 1 3 7 7 7 7 8 4 0 9 3 7 7 2 0 2 5 5 55 4 6 5 1,772 1,937 -237 -87 158 364 25. 2,547 704 428 509 1,408 1,716 -261 41 204 Aug. 1 . 2,130 646 217 388 2 1 , , 0 0 5 6 5 5 2 1 , , 4 3 0 3 2 3 - -2 2 5 00 5 - - 1 9 0 2 2 - 3 1 4 1 1 3 8 5 0 1 8 5 . . 2 1 , , 3 8 3 5 7 8 9 6 5 3 1 4 2 23 2 5 6 4 3 2 3 4 9 1,600 2,020 -331 -102 13 249 22. 2,600 853 387 429 2,346 2,272 180 -117 10 408 29. 2,395 858 400 362 NOTE.—The figures include all securities sold by dealers under repur- i 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

OCTOBER 1973 • U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, SEPTEMBER 30, 1973 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds O O c c t t . . 1 4 1 , , 1 1 9 9 7 7 3 3 . . . . . . . . 4 4 , , 3 3 0 0 1 1 M M a a r r . . 1 7 2 , , 1 1 9 9 7 7 4 4 .... 1 1 , , 8 7 0 9 9 0 F F e e b b . . 1 15 5 , , 1 1 9 9 7 7 5 5 5 5 % y4 4 1 , , 0 2 1 2 5 2 N Fe o b v . . 1 1 5 5 , , 1 1 9 9 7 7 3 4 4 4i y /g 8 4 2 , , 3 4 3 6 6 6 O O c c t t . . 2 1 3 8 , , 1 1 9 9 7 7 3 3 . . . . . . . . 4 1 , , 3 8 0 0 1 2 M Ma a r r . . 2 1 1 4 , , 1 1 9 9 7 7 4 4 . . . . . . . . 1 1 , , 8 8 0 0 3 2 A M p a r y . 15 1 , , 1 1 9 9 7 7 5 5 5 1 % Vi 1,776 8 N M o a v y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 4 37 y / 4 g 2 1 , , 8 2 4 1 9 4 Oct. 25, 1973.... 4,301 Mar. 28, 1974.... 1,802 May 15, 1975 6 6,760 May 15, 1975-85. .4*4 1,203 Nov. 1, 1973.... 4,301 Apr. 9, 1974.... 1,802 Aug. 15, 1975 57/g 7,679 June 15, 1978-83.. 31/4 1,486 Nov. 8, 1973.... 4,303 May 7, 1974.... 1,800 Sept. 30, 1975 83/g 2,043 Feb. 15, 1980 4 2,576 Nov. 15, 1973.... 4,193 June 4,1974 1,801 Oct. 1, 1975 UA 30 Nov. 15, 1980 3i/£ 1,897 Nov. 20, 1973.... 1,802 July 2,1974 1,802 Nov. 15, 1975 7 3,115 Aug. 15, 1981 7 807 Nov. 23, 1973.... 4.202 Aug. 27, 1974.... 1,805 Feb. 15, 1976 6*4 3,739 Feb. 15, 1982 6% 2,702 Nov. 29, 1973.... 4,205 Sept. 24, 1974.... 1,802 Feb. 15, 1976 5% 4,945 Aug. 15, 1984 63/g 2,353 Dec. 6, 1973.... 4,210 Apr. 1, 1976 \Vi 27 May 15, 1985 3% 965 D D e e c c . . 1 1 8 3 , , 1 19 9 7 7 3 3 . . . . . . . . 4 1 , , 1 8 9 0 2 0 M M a a y y 1 1 5 5 , , 1 1 9 9 7 7 6 6 6 5V % 4 2 2 , , 6 8 9 0 7 2 A N u o g v . . 1 1 5 5 , , 1 19 9 8 8 6 7 -92..4 6 1 i/ 4 g 3 1 , , 7 2 1 1 2 6 Dec. 20, 1973.... 4.203 Aug. 15, 1976 7Vi 4,194 Feb. 15, 1988-93.. 4 234 Dec. 27, 1973.... 4,203 Aug. 15, 1976 6l/i 3,883 May 15, 1989-94. .4 i/s 1,479 Jan. 3,1974 1.701 Oct. 1, 1976 VA Feb. 15, 1990 3V£ 4,081 Jan. 10,1974 1.702 Nov. 15, 1976 6V4 4,325 Feb. 15, 1993 6y4 627 Jan. 15, 1974.... 1,804 Treasury notes Feb. 15, 1977 8 5,163 Aug. 15, 1993 7Vi 926 Jan. 17,1974.... 1.701 Oct. 1, 1973.., ...1 lA 30 Apr. 1, 1977 5 Feb. 15, 1995 3 883 Jan. 24, 1974 1.702 Feb. 15, ......773344 2,960 Aug. 15, 1977 7V4 4,919 May 15, 1993-98.. 7 692 Jan. 31, 1974.... 1,701 Apr. 1, 34 Oct. 1, 1977 iy2 17 Nov. 15, 1998 3% 3,191 Feb. 7, 1974.... 1,802 May 15, ...714 4,334 Feb. 15, 1978 6V4 8,389 Feb. 12, 1974.... 1,801 Aug. 15, 1974... ...55/8 10,284 Apr. 1, 1978 1 y2 15 Feb. 14, 1974.... 1,807 Sept. 30, 1974.., ...6 2,060 Nov. 15, 1978 6 8,207 Convertible bonds F F e e b b . . 2 2 1 8 , , 1 1 9 9 7 7 4 4 .... 1 1 , , 8 8 0 0 2 0 D O N e o ct c v . . . 3 1 1 5 1, , , 1974.. . • . . •• 5 5 3 7 4 /8 2 5 , , 1 4 0 4 4 2 2 2 A N M u o a g v y . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 7 7 8 9 9 0 6 6 6 V 5 % / 4 8 4 7 1 , , , 2 5 6 6 5 0 5 9 4 I A n p v r e . s tm 1 e , n t 1 S 9 e 7 r 5 ie -8 s 0 B .. 234 2,275 NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered3 Total G o e b a n l l e i - r- R n e u v e e - HAAl G l U o o a . v S n t . s , State di s a s t n t a r d t i . c t Other2 Total c E at d i u o - n b R r a o id n a g d d e s s i U ti t e i s l- 4 H in o g u 5 s - V a e a n t i e s d * r - O p p o t u h s r e e - s r gations auth. 196 4 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 196 5 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 197 1 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972—July. . 1,805 1,322 481 647 467 690 1,796 327 121 223 154 971 Aug.. 1,966 820 1,138 468 897 600 1,931 444 111 429 162 784 Sept.. 1,726 663 803 257 298 1,016 414 1,609 238 107 590 270 404 Oct... 2,200 1,662 533 487 689 1,025 2,147 444 162 409 52 1,082 Nov.. 1,862 1,147 711 425 572 866 1,762 312 215 365 56 814 Dec... 1,797 872 653 '268 147 754 895 1,507 351 21 204 332 599 1973—Jan... 1,974 1,149 822 602 454 919 1,845 369 215 418 117 727 Feb... 1,499 768 731 47 561 891 1,398 365 63 406 10 553 Mar.. 2,451 1,227 916 303 613 914 924 2,194 373 153 497 347 823 Apr.. 1,818 866 944 159 732 925 1,752 305 12 448 88 900 May. 1,921 820 1,093 291 926 703 1,906 299 232 428 222 723 June . 2,072 984 823 261 189 1,054 828 2,064 533 101 603 334 494 July.. 1,958 1,448 503 516 319 1,121 1,937 390 230 353 3 961 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 • OCTOBER 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues i Noncorporate Corporate Period Bonds Stock Total G U o . v S t . . 2 a G g U e o n . v S c t . y , 3 a ( n U S d t . a S lo t . e ) c 4 a l Other 5 Total Total P o u ff b e l r ic ed ly P p ri l v a a ce te d l y Preferred Common 196 4 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 196 5 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 196 6 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 196 7 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 196 8 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 196 9 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 197 0 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 197 1 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972—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. 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 558 May 11,225 3,353 3,442 1,870 17 2,543 1,721 1,049 672 187 635 June 7,923 559 1,706 2,046 53 3,558 2,737 1,358 1,378 216 606 July. 7,418 490 2,471 1,939 48 2,470 1,724 855 869 220 526 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 a s n d Transportation Public utility Communication a R nd e a f l in e a st n a 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—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 387 12 30 143 236 8 361 410 355 19 351 231 June 705 25 133 89 183 1,099 497 303 29 316 181 July. 354 169 124 112 208 599 264 236 60 203 142 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

OCTOBER 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 196 7 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 196 8 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 196 9 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 197 0 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 197 1 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1972—1.. 10,072 2,691 7,381 6,699 2,002 4,698 3,373 690 2,683 II. 11,514 2,389 9,123 7,250 2,191 5,050 4,264 198 4.066 Ill 9,776 2,212 7.564 6,118 1,603 4,515 3,659 609 3,049 IV. 10,944 2,932 8,012 6,998 2,207 4,790 3,946 725 3,220 1973—1.. 8,219 2,806 5,412 4.198 1,781 2,417 4,020 1,025 2,995 II. 9,418 2,470 6,947 5; 769 1,664 4,106 3,648 806 2,842 Type of issues Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d te s s Stocks & B o n n o d t s e s Stocks & B o n n o d te s s Stocks & B o n n o d t s e s Stocks & B o n n o d t s e s Stocks & B o n n o d t s e s Stocks 196 8 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 196 9 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 197 0 6,641 870 853 1,778 ,104 36 6,861 2,917 4,806 94 2,564 1,107 197 1 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 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—1. . 135 63 -174 377 127 -43 844 1,170 520 185 965 1,244 II. 632 -2 119 327 327 7 1,136 1,276 842 562 1,049 673 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- NOTE.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) YYeeaarr MMoonntthh 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 22,,009977 842 1,255 1177,,002266 973 1166,,005533 1972—Aug... 391 582 -191 58,186 3,375 54,811 Sept... 310 442 -132 57,193 3,395 53,798 1961 2,951 1,160 1,791 22,789 980 21,809 Oct... 384 411 -27 57,525 3,719 53,806 1962 2,699 1,123 1,576 21,271 1,315 19,956 Nov... 387 645 -258 59,854 3,549 56,305 1963 2,460 1,504 952 25,214 1,341 23,873 Dec... 449 619 -170 59,831 3,035 56,796 1964 3,404 1,875 1,528 29,116 1,329 27,787 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 1965 4,359 1,962 2,395 35,220 1.803 33,417 Feb... 327 530 -203 54,083 3,375 50,708 1966 44,,667711 22,,000055 22,,666655 3344,,882299 22,,997711 31,858 Mar... 519 531 -12 53,377 3,774 49,603 Apr... 300 452 -120 50,837 3,837 46,464 1967 4,670 2,745 1,927 44,701 2,566 42,135 May.. 285 446 -161 48,588 4,154 44,434 1968 6,820 3,841 2,979 52,677 3,187 49,490 June.. 303 349 -46 48,127 4,164 43,963 1969 66,,771177 3,661 33,,005566 4488,,229911 3,846 4444,,444455 July. . 364 357 -7 50,933 4,594 46,339 AAuugg.. .. 239 432 -193 4499,,555533 44,,556677 4444,,998866 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 members, 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 • OCTOBER 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r n b o d u f i t i s t e s - d co c a n a t l s p l io 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 t s d C d e i a n v s d i h - s t U r p i r n b o d u f t i i s t e s - d co c a n t a l i s p l o u o n it w m a - l p ances1 ances 1 1966 84.2 34.3 49.9 20.8 29.1 39.5 1971—11. 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 6622..11 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 II 128.9 57.4 71.6 27.3 44.2 70.5 1 Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities NNeett Notes and accts. Notes and accts. EEnndd ooff ppeerriioodd wwoorrkkiinngg UU..SS.. receivable payable AAccccrruueedd ccaappiittaall TToottaall CCaasshh ss GG eecc oo uu vv rr tt ii ,, -- II tt nn oo vv rr ee iiee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U o . v S t . . 1 Other G U o . v S t . . 1 Other ttaaxxeess 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—III 185.3 484.6 46.5 7.1 4.2 201.0 193.5 32.3 299.3 6.8 196.7 11.5 84.3 IV 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971—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 II 237.8 594.7 62.2 9.4 2.9 243.7 233.5 43.0 356.9 4.5 227.6 16.5 108.3 1 Receivables from, and payables to, the U.S. Govt, exclude amounts NOTE : Based on Securities and Exchange Commission estimates. offset against each other on corporations' books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period TToottaall Durable du N r o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her nn CC ii oo cc mm aatt mm iioonn uu ss -- OOtthheerr11 TT AA ((SS oo .. .. RR tt AA aa .. .. ll )) 196 9 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 197 0 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 197 1 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 197 2 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 19732 100.20 19.07 18.38 2.83 2.01 2.34 1.54 16.28 3.08 13.24 21.44 1971—II.. 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 III.. 20.14 3.40 3.91 .55 .42 .39 .37 3.35 .71 2.62 4.42 80.75 IV.. 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—I.., 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II . 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 III., 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV.. 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—I.. . 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II.. 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 III 2 25.35 4.79 4.68 .74 .50 .54 .43 4.24 .92 8. 50 101.88 IV 2 28.62 5.70 5.30 .76 .59 .56 .35 4.69 .98 9. 70 104.36 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

OCTOBER 1973 • REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s 2 1- to 4-family houses4 com M m u er lt c i i f a a l m p i r ly o p a e n r d ti es 5 Mo ty r p tg e a 6 g e EE ppee nn rr dd ii oo oo dd ff hh AA ee oo rr ll ll ss dd ll -- ttuu FF ii tt nn cc ii ii nn ii ss oo aa aa tt nn ll ii nn -- ss -- 11 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 hh AA ee oo rr ll ll ss dd ll -- ttuu FF ii tt nn cc ii ii nn ii ss oo aa aa tt nn ll ii nn -- ss -- 11 OO hh ee oo tt rr hh ll ss dd ee 33 -- rr hh AA ee oo rr ll ll ss dd ll -- Total tu F i t n i i n s o a t n i n - s . 1 O h e o t r h l s d e - r Total tu F i t n i i n s o a t n i n - s . 1 O h e o t r h l s d e r - w F u V n r H i d A t A e t - e 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—11. .. 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 '354.5 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 '368.2 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 '383.3 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 '398.9 1973—I.... 579.8 463.0 47.3 69.6 36.4 10.7 25.7 543.4 353.7 296.1 57.6 189.7 156.2 33.5 132.5 410.9 HHPP.. .. 660000..55 448800..55 4499..00 7711..00 3377..77 1111..00 2266..77 556622..88 336655..88 330066..99 5588..99 119977..00 116622..55 3344..55 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 Housing Admin., Farmers Home Admin. They also include U.S. sponsored NOTE.—Based on data from Federal Deposit Insurance Corp., Federal agencies—new FNMA, Federal land banks, GNMA (Pools), and the Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul- Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts ture and Commerce, FNMA, FHA, PHA, VA, GNMA, FHLMC, and small or separate data not readily available) included with "individuals Comptroller of the Currency. and others." Figures for first three quarters of each year are F.R. estimates. 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) All residential Multifamily1 G un o d v e e r r w nm rit e t n e t n - Con- E pe n r d i o o d f F i i n c n i s a a t l i n - - h O ol t d h e e r r s Total F i i n c n i s a a t l i n - - h O ol t d h e e r r s EEnndd ooff ppeerriioodd Total Total F su H in re A - d - an g V u te A a e r - d - 1 t v io e n n a - l tutions tutions 197.6 69.2 38.3 30.9 128.3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 212.9 73.1 42.0 31.1 139.8 196 5 250.1 213.2 36.9 37.2 29.0 8.2 1966 223.6 76.1 44.8 31.3 147.6 196 6 264.0 223.7 40.3 40.3 31.5 8.8 236.1 79.9 47.4 32.5 156.1 1 1 9 9 6 6 7 8 2 2 9 8 8 0 . . 6 0 2 2 5 3 0 6 . . 8 6 4 4 7 3 . . 8 4 4 4 7 3 . . 3 9 3 3 7 4 . . 7 7 9 9. . 2 7 1968 2 2 6 5 6 1 . . 8 2 9 8 0 4 . . 2 4 5 5 4 0 . . 5 6 3 3 5 3 . . 7 8 1 1 7 6 6 6 . . 6 8 1 1 9 9 6 7 9 0 3 3 1 3 9 8 . . 0 2 2 2 6 77 5 . . 1 0 5 6 4 1 . . 0 1 5 5 2 8 . . 2 0 4 4 5 1 . . 8 3 1 1 0 2 . . 8 2 280.2 97.2 59.9 37.3 182.9 1971—1 II 1 I 3 3 5 6 3 4 . . 1 0 2 2 9 89 8 . . 9 4 6 65 3 . . 6 2 6 6 2 4 . . 1 3 4 5 9 0 . . 2 4 1 1 2 3 . . 9 9 2 2 3 9 9 0 0 9 7 . . . 9 7 8 1 1 1 0 0 0 2 0 5 . . . 9 4 2 6 6 6 2 5 4 . . . 8 7 4 3 3 3 7 9 8 . . . 6 5 5 2 1 1 0 9 9 2 6 0 . . . 6 8 5 I V 374.7 306.1 68.6 66.8 52.0 14.9 1972— 1 I I I I I V I , 4 4 3 3 2 0 9 8 2 9 5 2 . . . . 5 3 8 9 3 3 3 3 3 4 1 2 6 7 2 4 . . . . 1 1 9 9 7 7 7 7 4 3 1 0 . . . . 6 2 7 0 7 7 6 7 3 6 8 1 . . . . 5 8 4 3 5 5 5 5 9 6 3 5 . . . . 1 9 3 3 1 1 1 1 6 7 5 6 . . . . 6 3 4 0 1972—1 I ll 3 3 3 3 4 3 1 2 6 5 4 4 . . . . 1 8 1 6 1 1 1 1 0 0 1 1 2 9 7 1 . . . . 9 6 5 5 6 6 6 6 8 6 7 8 . . . . 8 2 6 4 4 4 4 4 4 3 0 2 . . . . 7 1 7 0 2 2 2 2 3 2 0 1 3 4 6 5 . . . . 1 3 6 0 1973— 1 II P 4 4 3 4 2 8 . . 7 0 3 3 5 7 7 0 . . 2 4 7 75 7 . . 5 6 7 8 9 2 . . 0 2 6 61 3 . . 1 5 1 18 7 . . 7 9 1973—1 II p 3 33 5 66 3 55 . .. 7 88 113.7 67.9 45.8 240.2 1 Includes outstanding amount of VA vendee accounts held by private l Structures of five or more units. investors under repurchase agreement. NOTE.—Based on data from same source as for "Mortgage Debt Out- NOTE.—For total debt outstanding, figures are FHLBB and F.R. standing" table above. estimates. For conventional, figures are derived. 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 • OCTOBER 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings * Mutual savings bank holdings Residential Residential End of period Other OOtthheerr Total non- Farm Total nnoonn-- Farm FHA- VA- Con- farm FHA- VA- Con- ffaarrmm Total in- guar- ven- Total in- guar- vensured 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 III 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 10,354 62 1973—1.. 110033,,331144 6655,,119922 3333,,006600 55,,006622 6688,,992200 5588,,116699 1100,,668833 6688 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 e r e - - d Other i Farm Total Total in F s H ur A e - d a g n V u t A a e r e - - d Other Farm 1945 976 66,,663377 55,,886600 11,,339944 44,,446666 776666 196 4 10,433 9,386 1,812 674 6,900 1,047 5555,,115522 5500,,884488 1111,,448844 6,403 3322,,996611 44,,330044 196 5 11,137 9,988 1,738 553 7,697 1,149 6600,,001133 5555,,119900 1122,,006688 6,286 3366,,883366 44,,882233 196 6 10,217 9,223 1,300 467 7,456 994 6644,,660099 5599,,336699 1122,,335511 6,201 4400,,881177 55,,224400 196 7 8,470 7,633 757 444 6,432 837 6677,,551166 6611,,994477 1122,,116611 6,122 4433,,666644 55,,556699 196 8 7,925 7,153 733 346 6,074 772 6699,,997733 6644,,117722 1111,,996611 5,954 4466,,225577 55,,880011 196 9 7,531 6,991 594 220 6,177 540 7722,,002277 6666,,225544 1111,,771155 5,701 4488,,883388 55,,777733 197 0 7,181 6,867 386 88 6,393 314 74,375 68,726 11,419 5,394 51,913 5,649 197 1 7,573 7,070 322 101 6,647 503 75,496 69,895 10,767 5,004 54,124 5,601 197 2 8,802 8,101 277 202 7,622 701 77,319 71,640 9,944 4,646 57,050 5,679 1972—Julyr 646 596 25 19 552 50 75,456 69,859 10,332 4,820 54,707 5,597 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 J J u u n ly e . 1,1 9 0 3 1 3 1,0 8 0 4 9 9 2 2 4 6 2 1 7 9 7 8 5 0 8 4 r9 8 2 4 7 7 7 8 , , 9 2 1 4 4 3 7 7 2 2 , , 1 4 8 7 7 4 9 9 , , 5 4 4 6 4 4 4 4 , , 5 4 2 9 4 6 5 5 8 8 , , 1 5 1 1 9 5 5 5 , , 7 7 2 6 7 9 i 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

OCTOBER 1973 • REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount Period N of u l m oa b n e s r ( c m o ( i m d l o l m i l o l i a n t r s t s e ) d o f ( o t f a h m o L d u o o o s l a u l a n a n n r t d s) s ( C p in o e r r n te a t r c t r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L e o r r - o a v a t c a i e n o l n - u t e ) C (p a t p e i r o it n a c l e 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 1.29 10.4 1971—July. 183 386.5 2,112 8.94 21/10 74.4 9.8 1.26 10.4 Aug. 153 434.4 2,839 9.08 23/1 74.9 9.9 1.27 10.4 Sept. 178 366.1 2,057 9.15 22/6 74.8 9.8 1.28 10.4 Oct.. 112 198.4 1,771 9.20 22/7 75.8 10.0 1.28 10.4 Nov. 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 10.2 Dec. 133 290.0 2,181 8.96 23 74.4 9.9 1.30 10.2 1972—Jan.. 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 10.2 Feb.. 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 10.0 Mar. 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 9.7 Apr. 200 381.1 1,906 8.44 24/6 76.3 9.5 1.29 9.6 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) Members' PPeerriioodd Ad- Repay- deposits vances ments (end of Period h N o e m w e Home FHA- VA- Con- TToottaall t S e h r o m r t 1 - t L er o m ng - 2 period) Total i con- pur- Total 2 in- guar- venstruc- chase sured 3 anteed 3 tional tion 5,007 4,335 5,997 3,074 2,923 1,043 1966. 3,804 2,866 6,935 5,006 1,929 1,036 1,527 4,076 4,386 3,985 401 1,432 196 5 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968. 2,734 1,861 5,259 4,867 392 1,382 196 6 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969. 5,531 1,500 9,289 8,434 855 1,041 196 7 20,122 4,243 9,604 121,805 5,791 6,351 109,663 196 8 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 2,331 196 9 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 4,790 4,749 7,979 2,961 5,018 2,104 197 0 21,383 4,150 10,237 150,331 10,178 8,494 131,659 197 1 39,472 6,835 18,811 174,385 13,798 10,848 149,739 1972- 406 249 6,295 2,083 4,212 1,442 631 189 6,736 2,307 4,429 1,443 1972—Aug.. 5,379 803 3,087 194,955 15,263 12,892 166,800 Oct 542 233 7,045 2,440 4,605 1,334 Sept.. 4,689 739 2,587 197,881 15,342 13,098 169,441 445 246 7,245 2,520 4,725 1,371 Oct... 4,522 761 2,423 200,554 15,378 13,334 171,842 984 251 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- 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 29,581 178,551 764 288 8,421 2,975 5,446 1,290 Feb.. 3,710 614 2,019 210,260 29,751 180,509 1,187 178 9,429 3,450 5,979 1,142 Mar.. 4,990 887 2,685 213,259 30,045 183,214 916 189 10,156 3,428 6,728 1,261 Apr.. 4,989 886 2,762 216,250 30,182 186,068 1,093 104 11,145 4,016 7,129 '1,453 May. 5,477 931 3,141 219,500 30,296 189,204 July 1,373 153 12,365 4,583 7,782 '1,183 June. 5,738 903 3,469 222,801 30,381 192,420 1,384 239 13,510 4,737 8,773 1,091 July. 5,059 851 3,079 225,490 30,270 195,220 Aug.. 4,955 799 3,051 227,995 30,264 197,731 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 • OCTOBER 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 Total F su H in re A - d - a g n V u t A a e r e - - d c P ha u s r ( p e - d e s u r r io in d S g ) a les d p M u er r a i i d o n e d g st O i a n n u g t d - Date of auction Offer M e a d m o r o t c u g e n a A p t g c s t e e - d A c ( m o s v t y h e m e e i r e o n r m m l r a t d s t g i - ) t e - Offe M a re m o d r o t u g c n a e t g A p s e c t - ed A c m ( o v s y t h e m e e ie r n o r m m l a r t d s t g i - ) e t - 1 1 19 9 9 7 6 6 0 9 8 1 1 7 0 5 , , , 1 9 5 6 5 0 7 0 2 1 7 5 1 , , , 1 6 0 2 8 7 1 0 1 4 2 3 , , , 4 0 2 3 4 7 1 6 0 r5 4 1 , , , 0 1 9 2 7 4 1 9 4 20 2 6 8 , , , 6 6 0 9 4 3 6 7 0 3 1 5 , , , 5 2 2 8 3 0 7 9 3 In m d i o l l l l i a o r n s s of per I n c ent In m d i o l l l l i a o r n s s of per I n c ent 1 1 9 9 7 7 2 1 1 1 9 7 , , 7 7 9 9 1 1 14,624 " 5 * i i 2r3 3 ' , , 6 5 9 7 9 4 r r3 2 6 1 6 1 '9 8 , , 8 7 2 9 8 7 '6 8 , , 4 1 9 2 7 4 1972—Dec. 26 108.7 66.3 7.69 1972- S A e u p g t . . . . 1 1 9 9 , , 2 0 9 2 5 3 1 1 4 4, , 1 3 8 8 8 0 4 4 , , 8 8 8 1 8 6 r4 4 0 2 8 7 r r 8 55 1 5 4 ' r7 7 , , 0 3 8 2 3 7 1973—Mar. 6 5 .... 170.8 110077..77 77..7755 6600..33 4444..33 77..9955 O N D c o e t c v . . . . . . 1 1 1 9 9 9 , , , 7 4 6 9 3 1 1 8 9 1 1 1 4 4 4 , , , 5 6 4 5 2 6 8 4 2 4 5 5 , , , 9 1 0 3 1 1 9 2 6 r r 3 3 2 2 0 6 2 6 5 rl, r r 2 4 9 3 4 7 7 9 7 ' ' 7 7 8 , , , 6 4 12 0 5 4 2 2 2 1 1 9 .... 229977..33 116688..77 77..8811 8866..88 5566..44 88..0022 1973- A M M J F a p e a a n b r r y . . . . . . . . . . 2 2 2 2 1 0 0 1 0 9 , , , , , 5 7 0 1 9 7 9 8 8 8 1 1 6 2 1 1 1 1 1 1 5 5 4 5 4 , , , , , 5 3 2 7 8 8 8 0 4 7 1 9 1 3 2 5 5 5 5 5 , , , , , 2 3 2 1 2 6 3 5 7 2 9 5 9 0 3 r r ' r r 3 3 3 5 4 4 5 3 7 2 8 5 4 2 2 29 1 1 , , r r r 4 2 1 4 9 5 1 7 3 8 8 1 0 8 3 ' ' ' 9 8 8 8 7 , , , , , 3 1 0 7 9 1 3 3 4 7 2 9 4 2 2 AApprr.. 3 1 1 33 7 0 22 6 . .. . . .. . . . .. . . .. 22 2 2 6 33 1 1 44 6 . . .. 2 6 66 11 1 11 44 8 99 55 5 00 .. . .. 99 9 77 7 77 77 . ,, .. 9 88 88 2 66 99 11 1 1 1 122 11 11 88 11 11 .. .. .. 99 99 00 8 88 88 8 11 ^ ..66 2 4 8 8 8 8 88 .. .. .. 22 11 11 33 11 77 J A J u u u l n y g e . . . . . 2 2 2 2 1 1 , , , 3 7 4 1 1 7 8 3 2 1 1 1 6 5 5 , , , 0 8 7 8 7 6 5 7 8 5 5 5 , , , 7 4 5 6 1 7 1 1 4 r r 5 5 6 1 1 9 6 6 9 1 1 1 , , , 0 1 1 9 1 0 1 9 2 9 9 9 , , , 7 8 8 7 0 5 8 9 9 May 2 14 8 .... 2 2 1 5 2 8 . . 4 3 1 1 4 87 0 . . 7 0 8 7 . .9 0 6 0 1 1 1 1 3 7 . . 3 6 8 73 4 . . 9 4 8 8 . .3 3 1 9 June 11... 184.5 142.2 8.04 110.1 74.1 8.44 25... 199.3 118.7 8.09 95.0 69.4 8.51 NOTE.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. July 9.... 539.3 244.8 8.38 108.4 72.5 8.67 Mortgage holdings include loans used to back bond issues guaranteed by 23.... 351.4 181.4 8.54 119.0 61.7 8.79 GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to Aug. 6 458.5 201.9 8.71 154.3 77.4 8.98 4-family loan commitments accepted in FNMA's free market auction 20.. . 525.0 223.8 8.95 171.3 77.2 9.27 system, and through the FNMA-GNMA Tandem Plan (Program 18). Sept. 4... 551.0 288.9 9.27 118.6 61.5 9.53 17. .. 138.1 107.9 9.37 48.6 46.8 9.68 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 GOVERNMENT NATIONAL MORTGAGE 12 years for 30-year loans, without special adjustment for FNMA commit- ASSOCIATION ACTIVITY ment fees and FNMA stock purchase and holding requirements. Since Oct. 18, 1971, the maturity on new short-term commitments has been 4 months. Mortgage amounts offered by bidders are total bids re- (In millions of dollars) ceived. Mortgage MMoorrttggaaggee Mortgage GNMA MORTGAGE-BACKED SECURITY PROGRAM holdings ttrraannssaaccttiioonnss commitments ((dduurriinngg EEEnnnddd ooofff ppeerriioodd)) (In millions of dollars) pppeeerrriiioooddd TToottaall FF ssuu HH iinn rr AA ee -- dd -- aa gg nn VV uu tt AA aa ee rr ee -- -- dd c P ha u s r e - s Sales d p d p MM uu eerr rr aa ii ii dd oo nn ee dd gg sstt OO ii aa nn nn uu gg tt dd -- Pass-through securities Bonds Period sold Applications Securities 1967 33333333333333333333,,,,,,,,,,,,,,,,,,,,333333333333333333334444444444444444444488888888888888888888 22222,,,,,777775555566666 555559999922222 888888666666000000 11111,,,,,000004444455555 11111,,,,,111117777711111 received issued 1968 44444444444444444444,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222200000000000000000000 33333,,,,,555556666699999 666665555511111 111111,,,,,,000000888888999999 11 888886666677777 11111,,,,,222226666666666 1969 44444444444444444444,,,,,,,,,,,,,,,,,,,,888888888888888888882222222222222222222200000000000000000000 44444,,,,,222222222200000 666660000000000 888888222222777777 666661111155555 11111,,,,,111113333311111 1970 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111118888888888888888888844444444444444444444 44444,,,,,666663333344444 555555555500000 666666222222111111 888889999977777 777773333388888 197 0 1,126.2 452.4 1,315.0 1971 55555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222229999999999999999999944444444444444444444 333333999999333333 197 1 4,373.6 2,701.9 300.0 1972 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111133333333333333333333 197 2 3,854.5 2,661.7 11111111111111999999999999997777777777777722222222222222--------------AAAAAAAAAAAAAAuuuuuuuuuuuuuugggggggggggggg.......................................... 55555555555555555555,,,,,,,,,,,,,,,,,,,,444444444444444444440000000000000000000055555555555555555555 1972—Aug. 548.3 140.3 SSSSSSSSSSSSSSeeeeeeeeeeeeeepppppppppppppptttttttttttttt.......................................... 55555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222227777777777777777777788888888888888888888 Sept. 192.0 130.9 OOOOOOOOOOOOOOcccccccccccccctttttttttttttt........................................................ 55555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222220000000000000000000033333333333333333333 Oct.. 237.8 164.1 NNNNNNNNNNNNNNoooooooooooooovvvvvvvvvvvvvv.......................................... 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111115555555555555555555522222222222222222222 Nov. 226.4 138.2 DDDDDDDDDDDDDDeeeeeeeeeeeeeecccccccccccccc.......................................... 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111133333333333333333333 Dec. 440.9 299.8 11111111111111999999999999997777777777777733333333333333--------------JJJJJJJJJJJJJJaaaaaaaaaaaaaannnnnnnnnnnnnn.......................................... 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111177777777777777777777 1973—Jan.. 515.7 323.3 FFFFFFFFFFFFFFeeeeeeeeeeeeeebbbbbbbbbbbbbb............................ .............. 44444444444444444444,,,,,,,,,,,,,,,,,,,,999999999999999999998888888888888888888844444444444444444444 Feb.. 167.2 216.8 MMMMMMMMMMMMMMaaaaaaaaaaaaaarrrrrrrrrrrrrr.......................................... 44444444444444444444,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666633333333333333333333 Mar. 339.4 139.9 AAAAAAAAAAAAAApppppppppppppprrrrrrrrrrrrrr.......................................... 44444444444444444444,,,,,,,,,,,,,,,,,,,,444444444444444444443333333333333333333399999999999999999999 Apr. 467.8 182.1 MMMMMMMMMMMMMMaaaaaaaaaaaaaayyyyyyyyyyyyyy............................ 33333333333333333333,,,,,,,,,,,,,,,,,,,,999999999999999999998888888888888888888800000000000000000000 May 563.3 338.8 JJJJJJJJJJJJJJuuuuuuuuuuuuuunnnnnnnnnnnnnneeeeeeeeeeeeee............................ 33333333333333333333,,,,,,,,,,,,,,,,,,,,999999999999999999990000000000000000000088888888888888888888 June 243.1 315.3 JJJJJJJJJJJJJJuuuuuuuuuuuuuullllllllllllllyyyyyyyyyyyyyy.......................................... 44444444444444444444,,,,,,,,,,,,,,,,,,,,111111111111111111115555555555555555555566666666666666666666 July. 215.7 384.7 AAAAAAAAAAAAAAuuuuuuuuuuuuuugggggggggggggg............................ .............. 44444444444444444444,,,,,,,,,,,,,,,,,,,,444444444444444444445555555555555555555555555555555555555555 Aug. 174.0 191.3 NOTE.—GNMA data. Total holdings include a small amount of con- NOTE.—GNMA data. Under the Mortgage-Backed Security Program, ventional loans. Data prior to Sept. 1968 relate to Special Assistance and GNMA guarantees the timely payment of principal and interest on both Management and Liquidating portfolios of former FNMA and include pass-through and bond-type securities, which are backed by a pool of mortgages subject to participation pool of Government Mortgage Liquida- mortgages insured by FHA or Farmers Home Admin, or guaranteed by tion Trust, but exclude conventional mortgage loans acquired by former VA and issued by an approved mortgagee. To date, bond-type securities FNMA. have been issued only by FNMA and FHLMC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 FHLBB series HUD YYiieelldd Mortgages Mortgages PPPeeerrriiioooddd (effective rate) series oonn FFHHAA-- PPPeeerrriiioooddd PPrroopp-iinnssuurreedd PPrroo-- eerrttyy New Existing New ll hh nn oo oo ee aa mm ww nnss ee -- TToottaall h N o e m w e s h is E o t m i x n - g es jjeeccttss ** mm pprr ii ee mm oo nn vv -- tt ee ss -- 22 TToottaall33 h N om ew e s h is o E t m i x n - e g s homes homes homes 1965. 8,689 1,705 5,760 591 634 2,652 876 1,776 1968 6.97 7.03 7.12 7.21 1966. 7,320 1,729 4,366 583 641 2,600 980 1,618 1969. 7.81 7.82 7.99 8.29 1967. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1970. 8.44 8.35 8.52 9.03 1968. 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1971. 7.74 7.67 7.75 7.70 1969 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1972 7.60 7.52 7.64 7.52 1970. 11,982 2,667 5,447 3,251 617 3,440 1,311 2,129 1971. 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 1972--Aug 7.59 7.52 7.65 7.55 1972. 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 Sept 7.57 7.55 7.70 7.56 Oct 7.62 7.57 7.70 7.57 1972--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.. 710 162 235 r262 52 592 187 405 May 7.71 7.77 7.95 7.79 Mar.. 969 195 268 r440 65 596 185 411 June 7.79 7.79 8.05 7.89 Apr.. r621 151 223 172 74 621 187 434 July 7.87 7.84 8.40 8.19 May. r562 158 228 122 81 634 198 436 Aug 77..9944 88..0011 88..8855 June. r650 153 229 r207 61 646 182 464 July.. r559 143 250 100 66 666 204 462 110000 119955 115544 1 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 interest 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— LLooaannss iinn Mortgage Mortgage Mortgage ffoorree-- holdings transactions commitments EEnndd ooff ppeerriioodd cclloossuurree (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 .26 197 0 325 325 325 1969 3.22 2.43 .52 .27 .27 197 1 968 821 147 778 64 182 1970 3.64 2.67 .61 .36 .33 197 2 1,790 1,503 287 ,298 408 198 1971 3.93 2.82 .65 .46 .46 1972 4.65 3.42 .78 .45 .48 1972—July. 1,475 1,374 100 74 11 75 298 Aug. 1,498 1,394 104 107 75 109 263 1971—1 3.21 2.26 .56 .39 .40 Sept. 1,545 1,408 137 66 13 136 318 II 3.27 2.36 .53 .38 .38 Oct., 1,631 1,439 192 102 9 189 371 Ill 3.59 2.54 .62 .43 .41 Nov. 1,744 1,491 253 128 10 89 293 IV 3.93 2.82 .65 .46 .46 Dec. 1,790 1,503 287 143 87 93 198 1972—1 3.16 2.21 .58 .37 .50 1973—Jan.. 1,761 1,517 244 76 99 142 226 II 3.27 2.38 .53 .36 .48 Feb. 1,677 1,535 142 76 150 166 300 Ill .. 3.82 2.74 .65 .43 .52 Mar. 1,718 1,589 128 119 68 141 295 TIV\/ 11. . . J \4 4 . . 6 6 5 6 3 3. . 4 4 1 2 . .7 7 8 9 . . 4 4 6 5 . .4 5 8 0 A M p a r y . , , 1 1 , , 9 7 0 8 6 4 1 1, , 6 6 9 4 5 6 2 1 1 3 1 8 1 14 2 7 6 5 1 1 7 1 1 9 8 3 7 3 34 4 3 4 June 2,029 1,716 313 154 21 159 316 1973_I 3.63 2.52 .68 .43 July. 2,158 1,714 444 140 139 278 II 33..8844 22..8811 ..6644 ..3399 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 • OCTOBER 1973 TOTAL CREDIT On millions of dollars) Instalment Noninstalment End of period Total Other Home Auto- consumer improve- Personal Single- Charge Service Total mobile goods ment 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 3,337 196 5 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 196 6 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 196 7 100,783 79,428 29,796 22,389 4.008 23,235 21,355 8,558 7,070 5,727 196 8 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 196 9 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 197 0 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 197 1 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 197 2 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1972—Aug. 147,631 119,911 42,323 36,188 5,950 35,450 27,720 11,411 7,717 8,592 Sept. 148,976 121,193 42,644 36,745 6,049 35,755 27,783 11,541 7,693 8,549 Oct.. 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 Nov. 152,968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 8,716 Dec. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973—Jan.. 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 Feb. 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 9,568 Mar. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 Apr. 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 9,747 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 Aug. 171,978 140,810 50,232 43,505 7.009 40,064 31,168 13,111 8,605 9,452 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage cluded 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 EEnndd ooff ppeerriioodd TToottaall Com- Finance Mis- Auto- Other Total mercial compa- Credit cellaneous Total mobile retail banks nies 1 unions lenders i dealers 2 outlets 1940. 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955. 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960. 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965. 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 1966. 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 1967. 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 1968. 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 1969t. 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 1970>. 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 1971. 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 1972i. 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 :—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 Nov 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 1—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 Aug 140,810 124,823 67,381 35,634 18,961 2,847 15,987 296 15,691 i Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with "Other retail outlets." cellaneous lenders include savings and loan associations and mutual savings banks. See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Commercial banks Finance companies i End of Automobile Other consumer Other consumer period paper goods paper Home Per- Auto- goods paper Home Per- Total improve- sonal Total mobile improve- sonal ment loans paper ment loans Pur- Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1940 1,452 339 276 232 165 440 2,278 1,253 159 193 673 1945 745 66 143 114 110 312 910 202 40 62 606 1950 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 80 1,386 1955 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 42 3,240 1960 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 173 5,006 196 5 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 196 6 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 196 7 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 196 8 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 196 9 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 174 12,485 197 0 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 197 1 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 197 2 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 497 14,912 1972—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 Aug.., 67,381 18,771 12,190 6,825 5,792 5,923 3,863 14,017 35,634 11,583 3,187 4,194 771 15,899 i 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 payment Charge accounts Auto- con- Home Per- loans End of period Total m pa o p b e il r e s g u o m od e s r im m pr e o n v t e- l s o o a n n a s l Total Service paper loans End of period Com- Other credit mer- finan- Retail Credit cial cial outlets cards 1 1 1 9 9 4 4 5 0 1 1 2 8 1 8 3 1 6 6 7 4 1 1 0 3 1 9 3 1 2 banks tu in t s io ti n - s 1950 692 159 40 102 391 1 1 9 9 5 6 5 0 4 1 , , 5 9 6 5 6 9 1.4 5 6 6 0 0 2 1 9 3 7 0 7 3 7 1 5 3 2,0 9 3 5 4 6 1 1 9 9 4 4 5 0 2 3 , , 8 2 2 0 4 3 6 6 7 3 4 6 1 7 6 2 4 1 1 , , 6 47 1 1 2 8 5 4 5 5 3 1 1 1 9 9 9 6 6 6 7 5 6 1 9 8 0 , , , 3 2 2 1 8 1 5 9 6 3 3 3 , , , 4 6 0 1 7 3 1 8 6 4 5 6 9 8 5 8 8 4 1,0 9 9 8 3 8 5 3 0 4 4 3 , , , 3 7 8 3 9 2 6 9 2 1 1 1 9 9 9 5 6 5 5 0 0 1 6 9 3 , , , 7 9 1 6 2 7 8 4 3 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 9 3 2 4 7 3 1 6 6 6 2 3 1 , , , 1 3 5 2 3 8 7 7 0 1 1 9 9 6 6 9 8 1 1 1 3 , , 7 7 1 2 7 2 4 4, , 9 2 4 3 1 8 7 9 7 5 1 1 1 1 . , 2 4 1 4 5 3 5 6, , 3 4 8 9 7 3 1 1 9 9 6 6 6 5 1 1 9 8 , , 9 9 9 9 4 0 6 6 , , 9 6 4 9 6 0 1,0 9 2 81 6 5 5, , 8 7 1 2 2 4 7 8 0 7 6 4 5 4 , , 3 8 3 8 6 9 1 1 1 9 9 9 7 7 7 2 0 1 1 1 1 7 5 9 , , , 0 0 5 2 1 8 1 1 8 5 5 6 , , , 1 7 5 1 4 9 6 7 8 1 1 1 , , , 1 4 6 7 7 9 7 2 0 2 1 1 , , ,8 1 9 0 6 30 0 0 9 6 7 , , , 9 0 8 9 6 7 5 3 2 1 1 1 9 9 9 6 6 6 7 9 8 . 2 2 24 1 3 , , , 0 3 0 4 5 2 1 5 5 7 8 8 , , , 4 5 3 7 5 7 8 3 4 1 1 1 , , , 0 1 1 8 5 9 8 4 0 6 5 5 , , , 0 9 9 4 6 3 1 6 6 1 1 1 , , , 4 0 2 3 2 2 7 7 9 5 6 6 , , , 9 7 3 2 2 0 1 7 0 1972—Aug.. 18,836 6,353 1,628 2,113 8,742 197 0 25,099 8,469 1,206 6,163 1,805 7,456 Sept.. 19,062 6,421 1,645 2,144 8,852 197 1 27,099 9,316 1,269 6,397 1,953 8,164 Oct.., 19,169 6.461 1,656 2,157 8,895 197 2 30,232 10,857 1,399 7,055 1,947 8,974 Nov.. 19,368 6,535 1,675 2,165 8,993 Dec.. 19,511 6,598 1,690 2,160 9,063 1972— S A e u p g t . . . . . . . 2 27 7 , , 7 7 8 2 3 0 1 1 0 0 , , 1 0 6 5 5 3 1 1 , ,3 3 5 7 8 6 5 5 , , 6 6 1 7 3 6 2 2 , , 0 0 4 8 1 0 8 8 , ,5 5 4 9 9 2 1973— F M Ja e a b n r . . * . . . 2 1 1 0 9 9 , , , 0 3 6 6 5 1 5 2 7 6 6 6 , , , 7 6 5 5 2 6 2 7 0 1 1 1 , , , 7 6 6 9 3 8 8 2 0 2 2 2 , , , 2 1 1 0 3 6 8 9 2 9 9 8 , , , 3 1 9 5 3 8 9 0 7 N D O o e c v c t. . . . . . . . . . . . 2 2 3 8 8 0 , , , 0 6 2 7 4 3 1 3 2 1 1 1 0 0 0 , , , 8 3 5 5 3 2 7 9 7 1 1 1 , . , 3 3 3 9 7 9 9 8 0 7 6 5 , , , 0 0 7 5 8 9 5 4 1 1 1 1 , , , 9 9 9 2 4 8 9 7 6 8 8 8 , , , 7 9 5 1 7 7 6 4 4 Apr.. 20,190 6,820 1,748 2.216 9,406 May. 20,599 6,966 1,785 2,250 9,598 1973—Jan.... 29,859 10,825 1.379 6,402 1,955 9,298 June. 21,084 7,135 1,828 2,294 9,827 Feb.... 29,623 10,989 1,420 5,735 1,911 9,568 July. 21,394 7,232 1,853 2,338 9,971 Mar.... 29,945 11,074 1,466 5,825 1,877 9,703 Aug.. 21,808 7,392 1,893 2,375 10,148 Apr.... 30,469 11,237 1,449 6,129 1,907 9,747 May... 30,746 11,359 1,458 6,387 1,932 9,610 June... 31,065 11,520 1,470 6,544 2,011 9,520 NOTE.—Other financial lenders consist of credit unions and miscel- July... 30,936 11,491 1,477 6,424 2,055 9,489 laneous lenders. Miscellaneous lenders include savings and loan associa- Aug.... 31,168 11,655 1,456 6,475 2,130 9,452 tions and mutual savings banks. i Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included in estimates of instalment credit outstanding. See also NOTE to table at top of preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT • OCTOBER 1973 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Home improvement Total Automobile paper goods paper 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—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.. 14,542 14,812 3,930 4,177 r5,943 5,753 433 472 '4,236 4,410 Aug.. 14,294 15,099 3,968 4,252 5,961 6,065 408 471 3,957 4,311 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—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.. 12,544 12,618 >•3,334 3,374 r5,141 5,031 r308 315 '3,761 3,898 Aug.. 12,399 12,501 3,293 3.372 5,168 5,135 298 307 3,640 3,687 Net change in credit outstanding 2 1965. 8,198 3,502 2,150 158 2,388 1966. 5,352 1,573 2,249 105 1,425 1967. 3,183 -214 1,657 167 1,573 1968. 8,317 3,152 2,237 231 2,697 1969. 9,360 2,579 3,687 374 2,720 1970. 4,959 -343 3,152 457 1,693 1971. 9,231 3,480 2,888 343 2,520 1972. 16,037 5,465 5,727 788 4,057 1972—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—Jan... 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.. 998 2,194 r596 803 r802 722 125 157 r475 512 Aug.. 895 2,598 675 880 793 930 110 164 317 624 * 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

OCTOBER 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 PPeerriioodd 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 11996655 777777777888888888,,,,,,,,,666666666666666666111111111 222222222999999999,,,,,,,,,555555555222222222888888888 222222222555555555,,,,,,,,,222222222666666666555555555 999999999,,,,,,,,,444444444333333333888888888 111111111444444444,,,,,,,,,444444444333333333000000000 1966 888888888222222222,,,,,,,,,888888888333333333222222222 333333333000000000,,,,,,,,,000000000777777777333333333 222222222555555555,,,,,,,,,888888888999999999777777777 111111111000000000,,,,,,,,,333333333666666666888888888 111111111666666666,,,,,,,,,444444444999999999444444444 1967 888888888777777777,,,,,,,,,111111111777777777111111111 333333333111111111,,,,,,,,,333333333888888888222222222 222222222666666666,,,,,,,,,444444444666666666111111111 111111111111111111,,,,,,,,,222222222333333333888888888 111111111888888888,,,,,,,,,000000000999999999000000000 1968 999999999999999999,,,,,,,,,999999999888888888444444444 333333333777777777,,,,,,,,,333333333999999999555555555 333333333000000000,,,,,,,,,222222222666666666111111111 111111111333333333,,,,,,,,,222222222000000000666666666 111111111999999999,,,,,,,,,111111111222222222222222222 1969 111111111000000000999999999,,,,,,,,,111111111444444444666666666 444444444000000000,,,,,,,,,999999999555555555555555555 333333333222222222,,,,,,,,,777777777555555555333333333 111111111555555555,,,,,,,,,111111111999999999888888888 222222222000000000,,,,,,,,,222222222444444444000000000 1970 111111111111111111222222222,,,,,,,,,111111111555555555888888888 444444444222222222,,,,,,,,,999999999666666666000000000 333333333111111111,,,,,,,,,999999999555555555222222222 111111111555555555,,,,,,,,,777777777222222222000000000 222222222111111111,,,,,,,,,555555555222222222666666666 1971 111111111222222222444444444,,,,,,,,,222222222888888888111111111 555555555111111111,,,,,,,,,222222222333333333777777777 333333333222222222,,,,,,,,,999999999333333333555555555 111111111777777777,,,,,,,,,999999999666666666666666666 222222222222222222,,,,,,,,,111111111444444444333333333 1972 111111111444444444222222222,,,,,,,,,999999999555555555111111111 555555555999999999,,,,,,,,,333333333333333333999999999 333333333888888888,,,,,,,,,444444444666666666444444444 222222222000000000,,,,,,,,,666666666000000000777777777 222222222444444444,,,,,,,,,555555555444444444111111111 111999777222———AAAuuu ggg 12,484 111111111333333333,,,,,,,,,111111111666666666666666666 5,349 555555555,,,,,,,,,666666666444444444444444444 3,285 333333333,,,,,,,,,444444444333333333333333333 1,788 222222222,,,,,,,,,000000000111111111444444444 2,062 222222222,,,,,,,,,000000000777777777555555555 SSSeeepppttt 11,953 111111111111111111,,,,,,,,,555555555333333333555555555 4,972 444444444,,,,,,,,,888888888555555555222222222 3,181 222222222.........999999999777777777111111111 1,731 111111111,,,,,,,,,666666666888888888333333333 2,069 222222222,,,,,,,,,000000000222222222999999999 OOOcccttt 12,404 111111111222222222,,,,,,,,,333333333333333333777777777 5,227 555555555,,,,,,,,,222222222222222222444444444 3,334 333333333,,,,,,,,,333333333444444444888888888 1.705 111111111,,,,,,,,,666666666777777777999999999 2,138 222222222,,,,,,,,,000000000888888888666666666 12,846 111111111222222222,,,,,,,,,888888888000000000666666666 5,413 555555555,,,,,,,,,000000000555555555999999999 3,434 333333333,,,,,,,,,555555555888888888111111111 1,792 111111111,,,,,,,,,777777777000000000444444444 2,207 222222222,,,,,,,,,444444444666666666222222222 DDDeeeccc 12,627 111111111333333333,,,,,,,,,666666666444444444333333333 5,313 555555555,,,,,,,,,000000000999999999666666666 3,355 333333333,,,,,,,,,777777777666666666666666666 1.791 111111111,,,,,,,,,666666666444444444222222222 2,168 333333333,,,,,,,,,111111111333333333999999999 111999777333———JJJaaa nnn 13,304 111111111111111111,,,,,,,,,999999999222222222333333333 5,762 555555555,,,,,,,,,222222222444444444666666666 3,517 333333333,,,,,,,,,000000000333333333333333333 1.706 111111111,,,,,,,,,555555555000000000999999999 2,319 222222222,,,,,,,,,111111111333333333555555555 FFFeeebbb 13,434 111111111111111111,,,,,,,,,222222222111111111444444444 5,664 444444444,,,,,,,,,888888888222222222666666666 3,557 222222222.........999999999777777777222222222 1,964 111111111,,,,,,,,,777777777111111111111111111 2,249 111111111,,,,,,,,,777777777000000000555555555 13,852 111111111333333333,,,,,,,,,666666666888888888111111111 5,853 555555555,,,,,,,,,888888888999999999000000000 3,654 333333333,,,,,,,,,555555555999999999888888888 2,131 222222222,,,,,,,,,000000000888888888333333333 2,214 222222222,,,,,,,,,111111111111111111000000000 13,465 111111111333333333,,,,,,,,,666666666666666666111111111 5,644 555555555,,,,,,,,,999999999777777777333333333 3,555 333333333,,,,,,,,,555555555777777777666666666 1.792 111111111,,,,,,,,,888888888333333333222222222 2,474 222222222,,,,,,,,,222222222888888888000000000 MMMaaayyy 13,932 111111111444444444,,,,,,,,,777777777999999999222222222 5,859 666666666,,,,,,,,,333333333555555555666666666 3,820 444444444,,,,,,,,,000000000222222222777777777 1,868 222222222,,,,,,,,,000000000666666666000000000 2,385 222222222,,,,,,,,,333333333444444444999999999 13,646 111111111444444444,,,,,,,,,666666666000000000888888888 5,684 666666666,,,,,,,,,222222222111111111999999999 3,584 333333333,,,,,,,,,888888888111111111777777777 1,978 222222222,,,,,,,,,222222222111111111111111111 2,400 222222222,,,,,,,,,333333333666666666111111111 JJJuuulllyyy '14,542 111111111444444444,,,,,,,,,888888888111111111222222222 '5,976 666666666,,,,,,,,,222222222333333333222222222 3,824 333333333,,,,,,,,,999999999333333333111111111 2,110 222222222,,,,,,,,,222222222333333333333333333 2,632 222222222,,,,,,,,,444444444111111111666666666 14,294 111111111555555555,,,,,,,,,000000000999999999999999999 6,195 666666666,,,,,,,,,555555555111111111888888888 3,685 333333333,,,,,,,,,888888888777777777777777777 1,943 222222222,,,,,,,,,111111111999999999444444444 2,471 222222222,,,,,,,,,555555555111111111000000000 Repayments 111999666555 777777777000000000,,,,,,,,,444444444666666666333333333 222222222555555555,,,,,,,,,666666666666666666333333333 222222222333333333,,,,,,,,,000000000555555555666666666 888888888,,,,,,,,,333333333111111111111111111 111111111333333333,,,,,,,,,444444444333333333333333333 1966 777777777777777777,,,,,,,,,444444444888888888000000000 222222222777777777,,,,,,,,,777777777111111111666666666 222222222444444444,,,,,,,,,999999999555555555222222222 999999999,,,,,,,,,333333333444444444222222222 111111111555555555,,,,,,,,,444444444777777777000000000 1967 888888888333333333,,,,,,,,,999999999888888888888888888 222222222999999999,,,,,,,,,555555555444444444999999999 222222222666666666,,,,,,,,,666666666888888888111111111 111111111000000000,,,,,,,,,333333333333333333777777777 111111111777777777,,,,,,,,,444444444222222222111111111 1968 999999999111111111,,,,,,,,,666666666666666666777777777 333333333222222222,,,,,,,,,666666666111111111111111111 222222222888888888,,,,,,,,,777777777666666666333333333 111111111111111111,,,,,,,,,777777777000000000555555555 111111111888888888,,,,,,,,,555555555888888888888888888 1969 999999999999999999,,,,,,,,,777777777888888888666666666 333333333666666666,,,,,,,,,444444444777777777000000000 333333333000000000,,,,,,,,,999999999888888888111111111 111111111333333333,,,,,,,,,111111111999999999333333333 111111111999999999,,,,,,,,,111111111444444444222222222 1970 111111111000000000777777777,,,,,,,,,111111111999999999999999999 444444444000000000,,,,,,,,,333333333999999999888888888 333333333111111111,,,,,,,,,777777777000000000555555555 111111111444444444,,,,,,,,,333333333555555555444444444 222222222000000000,,,,,,,,,777777777444444444222222222 1971 111111111111111111555555555,,,,,,,,,000000000555555555000000000 444444444555555555,,,,,,,,,333333333999999999555555555 333333333111111111,,,,,,,,,777777777333333333000000000 111111111666666666,,,,,,,,,000000000333333333333333333 222222222111111111,,,,,,,,,888888888999999999222222222 1972 111111111222222222666666666,,,,,,,,,999999999111111111444444444 555555555000000000,,,,,,,,,777777777999999999666666666 333333333555555555,,,,,,,,,222222222555555555999999999 111111111888888888,,,,,,,,,111111111111111111777777777 222222222222222222,,,,,,,,,777777777444444444222222222 111999777222 AAAuuuggg 10,841 111111111000000000,,,,,,,,,999999999555555555777777777 4,414 444444444,,,,,,,,,444444444888888888666666666 3,021 333333333,,,,,,,,,000000000333333333444444444 1,510 111111111,,,,,,,,,555555555555555555777777777 1,896 111111111,,,,,,,,,888888888888888888000000000 SSSeeepppttt 10,667 111111111000000000,,,,,,,,,222222222555555555333333333 4,221 444444444,,,,,,,,,111111111333333333222222222 2,938 222222222,,,,,,,,,777777777888888888555555555 1,533 111111111,,,,,,,,,444444444555555555777777777 1,975 111111111,,,,,,,,,888888888777777777999999999 OOOcccttt 10,908 111111111111111111,,,,,,,,,000000000222222222555555555 4,408 444444444,,,,,,,,,555555555222222222444444444 3,023 333333333,,,,,,,,,000000000222222222888888888 1,550 111111111,,,,,,,,,555555555777777777222222222 1,927 111111111,,,,,,,,,999999999000000000111111111 NNNooovvv 11,128 111111111000000000,,,,,,,,,999999999888888888666666666 4,531 444444444,,,,,,,,,444444444444444444777777777 3,061 333333333,,,,,,,,,111111111222222222444444444 1,578 111111111,,,,,,,,,555555555000000000555555555 1,958 111111111,,,,,,,,,999999999111111111000000000 DDDeeeccc 10,964 111111111000000000,,,,,,,,,666666666333333333666666666 4,485 444444444,,,,,,,,,111111111999999999111111111 2,952 333333333,,,,,,,,,111111111000000000555555555 1,561 111111111,,,,,,,,,444444444999999999999999999 1,966 111111111,,,,,,,,,888888888444444444111111111 111999777333———JJJaaannn 11,355 111111111111111111,,,,,,,,,888888888888888888777777777 4,734 444444444,,,,,,,,,888888888888888888111111111 3,033 222222222,,,,,,,,,999999999444444444444444444 1,532 111111111,,,,,,,,,666666666555555555555555555 2,056 222222222,,,,,,,,,444444444000000000777777777 FFFeeebbb 11,437 111111111000000000,,,,,,,,,666666666222222222333333333 4,684 444444444,,,,,,,,,333333333999999999222222222 3,030 222222222,,,,,,,,,777777777111111111888888888 1,625 111111111,,,,,,,,,444444444555555555999999999 2,098 222222222,,,,,,,,,000000000555555555444444444 MMMaaarrr 11,808 111111111222222222,,,,,,,,,222222222666666666555555555 4,870 555555555,,,,,,,,,000000000888888888444444444 3,141 333333333,,,,,,,,,222222222777777777999999999 1,665 111111111,,,,,,,,,666666666444444444888888888 2,132 222222222,,,,,,,,,222222222555555555444444444 12,061 111111111222222222,,,,,,,,,000000000111111111444444444 4,919 444444444,,,,,,,,,999999999000000000222222222 3,251 333333333,,,,,,,,,222222222444444444888888888 1.693 111111111,,,,,,,,,666666666999999999444444444 2,198 222222222,,,,,,,,,111111111777777777000000000 MMMaaayyy 11,941 111111111222222222,,,,,,,,,222222222888888888333333333 4,976 555555555,,,,,,,,,111111111000000000888888888 3,100 333333333,,,,,,,,,222222222444444444666666666 1,612 111111111,,,,,,,,,666666666555555555111111111 2,253 222222222,,,,,,,,,222222222777777777888888888 JJJuuunnneee 12,034 111111111222222222,,,,,,,,,111111111222222222111111111 4,890 444444444,,,,,,,,,999999999222222222777777777 3,241 333333333,,,,,,,,,333333333000000000999999999 1.694 111111111,,,,,,,,,777777777222222222666666666 2,209 222222222,,,,,,,,,111111111555555555999999999 JJJuuulllyyy '12,544 111111111222222222,,,,,,,,,666666666111111111888888888 '5,112 555555555,,,,,,,,,111111111666666666666666666 3,312 333333333,,,,,,,,,222222222777777777888888888 '1,771 111111111,,,,,,,,,999999999222222222333333333 2,349 222222222,,,,,,,,,222222222555555555111111111 AAAuuuggg 12,399 111111111222222222,,,,,,,,,555555555000000000111111111 5,146 555555555,,,,,,,,,222222222000000000222222222 3,241 333333333,,,,,,,,,222222222666666666333333333 1,738 111111111,,,,,,,,,777777777888888888000000000 2,274 222222222,,,,,,,,,222222222555555555666666666 Net change in credit outstanding 2 111999666555 888888888,,,,,,,,,111111111999999999888888888 333333333,,,,,,,,,888888888666666666555555555 222222222,,,,,,,,,222222222000000000999999999 111111111,,,,,,,,,111111111222222222777777777 999999999999999999777777777 1966 555555555,,,,,,,,,333333333555555555222222222 222222222,,,,,,,,,333333333555555555777777777 999999999444444444555555555 111111111,,,,,,,,,000000000222222222666666666 111111111,,,,,,,,,000000000222222222444444444 1967 333333333,,,,,,,,,111111111888888888333333333 111111111,,,,,,,,,888888888333333333333333333 ---------222222222222222222000000000 999999999000000000111111111 666666666666666666999999999 1968 888888888,,,,,,,,,333333333111111111777777777 444444444,,,,,,,,,777777777888888888444444444 111111111,,,,,,,,,444444444999999999888888888 111111111,,,,,,,,,555555555000000000111111111 555555555333333333444444444 1969 999999999,,,,,,,,,333333333666666666000000000 444444444,,,,,,,,,444444444888888888555555555 111111111,,,,,,,,,777777777777777777222222222 222222222,,,,,,,,,000000000000000000555555555 111111111,,,,,,,,,000000000999999999888888888 1970 444444444,,,,,,,,,999999999555555555999999999 222222222,,,,,,,,,999999999777777777777777777 ---------111111111666666666888888888 111111111,,,,,,,,,333333333666666666666666666 777777777888888888444444444 1971 999999999,,,,,,,,,222222222333333333111111111 555555555,,,,,,,,,888888888444444444222222222 111111111,,,,,,,,,222222222000000000555555555 111111111,,,,,,,,,999999999333333333333333333 222222222555555555111111111 1972 111111111666666666,,,,,,,,,000000000333333333777777777 888888888,,,,,,,,,555555555444444444333333333 333333333,,,,,,,,,222222222000000000555555555 222222222,,,,,,,,,444444444999999999000000000 111111111,,,,,,,,,777777777999999999999999999 1972 Aug 1,643 222222222,,,,,,,,,222222222000000000999999999 935 111111111,,,,,,,,,111111111555555555888888888 264 333333333999999999999999999 278 444444444555555555777777777 166 111111111999999999555555555 Sept 1,286 111111111,,,,,,,,,222222222888888888222222222 751 777777777222222222000000000 243 111111111888888888666666666 198 222222222222222222666666666 94 111111111555555555000000000 Oct 1,496 111111111,,,,,,,,,333333333111111111222222222 819 777777777000000000000000000 311 333333333222222222000000000 155 111111111000000000777777777 211 111111111888888888555555555 1,718 111111111,,,,,,,,,888888888222222222000000000 882 666666666111111111222222222 373 444444444555555555777777777 214 111111111999999999999999999 249 555555555555555555222222222 1,663 333333333,,,,,,,,,000000000000000000777777777 828 999999999000000000555555555 403 666666666666666666111111111 230 111111111444444444333333333 202 111111111,,,,,,,,,222222222999999999888888888 1973—Jan 1,949 333333333666666666 1,028 333333333666666666555555555 484 888888888999999999 174 ---------111111111444444444666666666 263 ---------222222222777777777222222222 Feb 1,997 555555555999999999111111111 980 444444444333333333444444444 527 222222222555555555444444444 339 222222222555555555222222222 151 ---------333333333444444444999999999 2,044 111111111,,,,,,,,,444444444111111111666666666 983 888888888000000000666666666 513 333333333111111111999999999 466 444444444333333333555555555 82 ---------111111111444444444444444444 Apr 1,404 111111111,,,,,,,,,666666666444444444777777777 725 111111111,,,,,,,,,000000000777777777111111111 304 333333333222222222888888888 99 111111111333333333888888888 276 111111111111111111000000000 1,991 222222222,,,,,,,,,555555555000000000999999999 883 111111111,,,,,,,,,222222222444444444888888888 720 777777777888888888111111111 256 444444444000000000999999999 132 777777777111111111 1,612 222222222,,,,,,,,,444444444888888888777777777 794 111111111,,,,,,,,,222222222999999999222222222 343 555555555000000000888888888 284 444444444888888888555555555 191 222222222000000000222222222 July '1,998 222222222,,,,,,,,,111111111999999999444444444 '864 111111111,,,,,,,,,000000000666666666666666666 512 666666666555555555333333333 '339 333333333111111111000000000 283 111111111666666666555555555 1,895 222222222,,,,,,,,,555555555999999999888888888 1,049 111111111,,,,,,,,,333333333111111111666666666 444 666666666111111111444444444 205 444444444111111111444444444 197 222222222555555555444444444 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 repayments have been adjusted to eliminate duplication resulting from large NOTE.—Other financial lenders include credit unions and miscellanetransfers 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. • OCTOBER 1973 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 - a 1 v 9 e 7 r 2 - 1972 1973 Grouping por- age tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner Julyr Aug Total index 100.0 115.2 116.3 117.6 119.2 120.2 121.1 122.2 123.4 123.7 124.1 124.8 125.6 Products, total 62.21 113.8 114.7 115.6 117.3 118.6 119.1 120.7 121.5 121.7 122.0 122.9 123.7 Final products 48.95 111.9 112.6 113.6 115.3 116.3 116 118.6 119.3 119.6 120.0 120.8 121.3 Consumer goods 28.53 123.6 124.3 125.2 127.0 127.4 127.7 129.8 130.2 130.8 130.9 131.8 131.9 Equipment 20.42 95.5 96.3 97.7 98.9 100.7 101.5 102.9 104 104. 104.7 105.7 106.6 intermediate products 13.26 121.1 122.3 122.8 124.7 127.6 127.7 128.4 129.5 129.4 129.3 130.5 132.0 Materials 37.79 117.4 118.8 120.9 122.3 122.8 124.4 124.5 126.7 127.0 127.7 128.3 129.0 Consumer goods Durable consumer goods 7.86 125.7 124.9 125.7 129.1 131.0 135.0 136.0 137. 140.4 140.5 141.5 141. Automotive products 2.84 127.7 126.0 125.4 132.3 138.3 142.9 138.6 141.7 144. 141.7 142.6 142.6 Autos 1.87 112.7 109.5 109.6 118.9 126.6 133.9 130.2 131.5 130.8 128.1 129.8 132.6 Auto parts and allied goods... .97 156.5 158.1 155.8 158.0 160.6 160.0 155.0 161.4 169.9 167.5 167.0 161.9 Home goods 5.02 124.5 124.3 125.8 127.3 126.9 130.5 134.5 135.8 138.3 139.8 140.9 141.3 Appliances, TV, and radios 1.41 124.6 118.6 123.0 124.1 121.7 133.3 140.7 137.8 143.0 149.7 148.0 147.2 Appliances and A/C .92 144.5 139.9 142.8 147.9 141.9 151. 153.2 153.8 156.9 157.6 157.8 154.1 TV and home audio .49 87.5 78.6 86.1 79.4 83.9 99.9 117.4 108.0 116.8 135.0 129.6 134.3 Carpeting and furniture 1.08 132.6 136.4 134.5 137.6 137.6 139.0 142.1 145.0 145.7 146.7 147.8 148.9 Misc. home goods 2.53 121.0 122.4 123.6 124.7 125.2 125.3 127.5 130.9 132.7 131.4 134.0 134.7 Nondurable consumer goods 20.67 122, 124.1 124.9 126.2 126.0 125.0 127.4 127.3 127.1 127.2 128.0 128.1 C Co lo n t s h u in m g e r staples 1 4 6 . . 3 3 2 4 1 10 2 9 2 . . 7 8 1 12 1 7 2 . . 3 0 1 1 1 2 3 7 . . 5 9 1 1 1 2 3 9 . . 5 5 1 1 1 2 4 8. . 9 8 1 1 1 2 2 8 . . 2 4 1 1 1 3 5 0 . . 7 1 13 1 0 5 . . 5 2 1 13 1 0 5 . . 3 4 1 1 1 3 4 0 . . 5 6 1 1 1 31 4 . . 7 2 1 1 1 3 6 1 . .4 0 Consumer foods and tobacco.. 8.37 117.5 118.4 118.3 119.5 119.9 119.1 121. 121.5 120.9 121.0 120.9 119.6 Nonfood staples 7.98 135.3 136.6 138.1 140.0 138.3 138.1 140.9 140.0 140. 140.7 143.1 143.7 Consumer chemical products 2.64 144.6 145.9 147.6 149. 145. 143.9 148.8 149.9 151. 151.5 154.9 153.5 Consumer paper products... 1.91 114.8 115.1 115.6 118.6 119.3 119.3 119. 119.4 118.7 119.0 121.7 121.7 Consumer fuel and lighting.. 3.43 139.5 141.1 143.2 144.7 143.7 144. 147. 144.0 143.8 144.4 145.6 148.2 Residential utilities 2.25 147.8 149.4 152.2 153.0 152.5 153.6 156.5 154.4 153.5 152.3 152.1 155.4 Equipment Business equipment 12.74 106.1 107.2 109.6 111.6 113.4 114.4 116.9 118.2 118.6 119.6 121.3 122.5 Industrial equipment 6.77 102.5 104.0 107.9 109.1 110.4 111.5 113.0 114.5 115.6 117.4 119.1 119.8 Building and mining equip. 1.45 104.8 106.9 108.1 108.3 108.7 112.3 113.0 115.1 116.0 118. 118.8 119. Manufacturing equipment 3.85 92.7 96.1 99.1 101.0 102.6 102.5 104.7 106.1 107.5 109.4 112.0 113. Power equipment 1.47 125.6 122.4 130.9 131.2 132.9 134.1 134.6 135.5 137.1 137.6 138.2 138.3 Commercial, transit, farm eq.... 5.97 110.3 110.9 111.6 114.4 116.6 117.6 121.4 122.4 121.9 122.2 123.7 125.4 Commercial equipment 3.30 118.4 120.4 122.4 123.9 125.5 126.5 128.8 129.9 130.6 131.3 131.6 134. Transit equipment 2.00 96.8 93.0 92.9 96.8 101.9 101.7 110.0 111.8 110.2 107.5 109.8 109.7 Farm equipment * .67 110.5 117.7 114.7 120.3 116.3 120.0 118.3 117.6 114.6 120.9 126.5 129.3 Defense and space equipment 7.68 77.9 78.1 77.6 77.9 79.6 80.1 79. 80.6 80.1 80.0 79.7 80.1 Military products 5.15 80.1 80.1 79.3 79.4 81.5 81.8 81.0 82.0 81.5 81.0 80.1 80.0 Intermediate products Construction products 7 5 . .9 3 3 4 1 1 2 2 0 1 . . 8 3 1 1 2 2 1 3 . .0 2 1 1 2 2 2 2 . . 9 8 1 1 2 2 5 3 . . 6 9 1 1 3 25 0 . . 9 0 1 1 2 2 8 6 . . 7 9 1 1 2 2 9 7 . . 6 4 1 1 3 2 0 8 . . 3 9 1 1 3 2 0 8 . . 7 3 1 1 3 2 2 7 . . 2 0 1 1 3 2 2 9 . . 2 2 1 1 3 2 5 8 . . 9 9 Misc. intermediate products Materials 20.91 113.5 114.5 118.1 120.2 121.4 123.5 124.1 126.6 127.6 127.9 128.6 129.2 Durable goods materials 4 5 . .4 7 1 5 1 9 1 9 3 . . 3 8 1 1 1 0 5 0 . . 5 1 1 1 1 03 8 . . 1 1 1 10 1 7 9 . . 5 0 1 1 2 0 0 9 . . 5 7 1 1 2 1 3 2 . . 6 0 1 1 2 1 3 1 . . 9 6 1 1 2 1 5 3 . . 4 0 1 1 2 1 5 4 . . 9 6 1 11 2 3 9 . . 8 0 1 1 2 1 5 8 . . 7 0 1 11 2 8 8 . .8 2 Consumer durable parts 10.75 120.6 121.2 125.5 127.2 127.7 129.2 130.6 134.2 134.9 134.7 135.3 134.9 Equipment parts Durable materials nec , 13.99 122.5 124.7 124.6 125.3 124.6 126.4 126.3 127.7 127.1 128.5 128.9 129.4 Nondurable goods materials 8.58 129.2 132.5 132.0 132.9 132.9 136.0 136.0 136.5 136.3 138.8 139.4 140.2 Textile, paper, and chem. mat... 5.41 111.9 112.3 112.7 113.3 111.8 111.4 110.9 113.9 112.7 112.2 112.3 112.3 Nondurable materials n.e.c , 2.89 120.9 121.1 124.5 123.2 122.6 119.5 120.6 122.7 122.6 122.1 122.9 125.3 Fuel and power, industrial Supplementary groups Home goods and clothing 9.34 117.7 118.6 120.1 120.9 121.1 122.0 125.5 126.3 127.6 128. 128.6 129.7 Containers 1.82 129.7 130.8 134.0 133.2 134.1 135.0 137.1 138.8 145.2 139. 138.0 141.4 Gross value of products in market structure (In billions of 1963 dollars) Products, total 418.7 421.7 430.0 435.7 437.3 442.8 445.7 446.9 446.2 449.7 451.8 Final products 322.2 324.8 331.6 334.7 336.3 340.5 342.7 343.9 343.7 346.6 347.8 Consumer goods 227.1 228.2 233.1 234.4 235.9 237.6 238.2 239.5 238.9 241.1 241.3 Equipment 95.0 96.4 98.5 100.2 100.6 103.0 104.6 104.5 104.8 105.6 106.6 Intermediate products. 96.7 96.9 98.3 100.8 101.3 102.2 103.0 102.7 102.3 103.1 104.3 For NOTE see p. A 61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) 11996677 11997722 1972 1973 pprroo-- aavveerr-- GGrroouuppiinngg pp ttii oo oo rr nn -- aaggee Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Aug. Manufacturing 88.55 114.0 115.4 117.0 118.5 119.5 120.4 121.4 122.7 123.4 123.8 124.9 125.6 126.6 125.9 Durable 52.33 108.4 109.7 111.6 113.8 115.3 116.3 117.5 118.7 119.9 120.6 121.8 123.0 123.5 122.5 Nondurable 36.22 122.1 123.6 124.8 125.2 125.6 126.2 127.0 128.4 128.6 128.4 129.3 129.3 131.0 130.8 Mining and utilities 11.45 124.1 124.8 126.5 126.6 126.7 126.1 127.3 128.0 127.3 126.6 127.0 128.2 130.3 131.2 Mining 6.37 108.8 108.8 110.8 110.2 109.7 108.2 108.5 110.2 109.5 109.0 109.1 109.5 111.1 112.4 Utilities 5.08 143.4 144.9 146.4 147.1 148.2 148.5 151.0 150.5 149.6 148.7 149.5 151.5 154.7 154.9 Durable manufactures 12.55 113.9 115.3 118.8 121.3 122.6 124.0 124.3 125.4 125.8 127.3 128.1 128.7 130.7 130.7 Primary metals 6.61 113.1 114.3 119.7 122.1 122.9 125.4 123.1 124.7 123.5 125.8 126.1 124.5 128.0 126.9 Iron and steel, subtotal 4.23 107.1 108.1 114.7 118.4 119.2 120.0 118.6 120.0 117.5 119.7 119.8 119.9 120.9 119.2 Fabricated metal products 5.94 114.8 116.6 118.0 120.4 122.2 122.3 125.7 126.2 128.4 128.9 130.3 133.4 133.9 134.8 Machinery and allied goods 32.44 103.5 104.6 106.0 108.2 110.1 111.2 112.5 113.7 115.1 115.7 117.3 118.8 119.0 117.2 Machinery 17.39 107.5 109.7 111.8 114.0 115.7 116.8 118.4 119.1 121.4 122.6 124.7 126.9 126.8 126.9 Nonelectrical machinery 9.17 105.7 109.8 111.7 113.5 115.3 114.4 116.3 117.3 119.0 121.5 124.0 126.1 126.2 127.2 Electrical machinery 8.22 109.6 109.5 112.0 114.7 116.1 119.6 120.8 121.2 123.9 123.8 125.4 127.8 127.4 126.5 Transportation equipment 9.29 99.0 98.1 99.5 102.7 105.0 106.6 107.6 110.0 110.3 110.0 111.0 112.2 112.1 105.8 Motor vehicles and parts 4.56 123.1 121.0 122.9 128.7 132.3 135.9 139.3 141.5 141.0 140.1 140.9 143.3 144.1 131.1 Aerospace and misc. trans, eq... 4.73 75.8 76.1 77.2 77.6 78.7 78.3 77.1 79.7 80.8 81.1 82.2 82.2 81.3 81.6 Instruments 2.07 120.2 122.7 124.3 125.0 125.1 126.6 130.1 131.9 133.8 134.7 138.9 140.2 141.3 141.9 Ordnance, private and Govt 3.69 86.0 86.5 84.8 85.2 87.3 87.8 87.0 87.6 87.1 86.4 85.4 86.7 86.7 85.9 Lumber, clay, and glass 4.44 120.0 121.0 121.9 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 129.2 129.2 129.1 Lumber and products 1.65 122.4 121.8 123.6 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.5 126.6 125.3 127.7 Clay, glass, and stone products.... 2.79 118.6 120.4 120.9 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.5 131.5 130.0 Furniture and miscellaneous 2.90 122.7 126.2 126.6 126.9 126.6 127.7 130.3 132.8 133.4 133.1 136.0 135.4 134.7 138.4 Furniture and fixtures 1.38 113.5 116.4 116.7 117.6 118.5 120.3 119.1 122.3 122.8 123.8 126.5 126.5 127.5 129.4 Miscellaneous manufactures 1.52 131.1 135.1 135.6 135.4 134.0 134.5 140.5 142.4 143.0 141.6 144.5 143.6 141.3 146.6 Nondurable manufactures Textiles, apparel, and leather 6.90 108.1 109.7 111.2 112.1 113.0 113.2 113.4 114.4 114.6 114.0 113.3 115.0 114.1 114.7 2.69 117.4 120.8 121. J 123.2 125.7 124.2 125.3 126.1 127.1 126.1 127.2 129.2 128.0 128.3 Apparel products 3.33 105.7 106.8 108.3 109.5 110.1 111.1 112.3 112.6 112.4 111.7 110.0 111.0 112.1 Leather and products .88 88.9 86.5 91.6 88.0 85.9 87.4 81.3 85.1 85.0 86.8 83.0 86.6 79.2 80.9 Paper and printing 7.92 116.1 117.6 117.7 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 122.8 125.1 124.2 Paper and products 3.18 128.2 130.5 130.1 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 134.6 135.3 134.5 Printing and publishing 4.74 107.9 108.7 109.4 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 114.8 118.3 117.2 Chemicals, petroleum, and rubber.... 11.92 137.8 140.0 142.2 141.6 142.0 143.8 145.5 146.3 146.3 147.9 150.2 149.8 152.2 152.0 Chemicals and products 7.86 139.6 141.3 144.8 143.9 143.2 144.7 146.4 147.2 146.8 147.8 150.2 150.4 152.4 152.0 Petroleum products 1.80 120.6 121.0 121.3 123.8 124.4 125.5 127.3 124.1 123.5 126.9 128.5 129.7 129.6 128.4 Rubber and plastics products 2.26 145.5 150.6 149.8 148.4 151.5 154.7 157.1 160.4 163.4 165.1 166.8 163.9 169.6 171.0 Foods and tobacco 9.48 117.6 118.3 118.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 121.5 119.5 121.8 121.3 Foods 8.81 118.6 119.0 119.8 119.0 119.4 119.7 120.5 122.9 121.8 121.3 122.4 120.3 123.1 122.4 Tobacco products ..6677 110033..77 110088..55 110033..00 111111..88 111122..55 110022..55 110077..99 111100..33 111188..11 111122..99 111111..22 110088..11 110055..33 Mining Metal, stone, and earth minerals 1.26 107.3 106.8 110.6 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.8 117.7 119.1 Metal mining .51 120.9 118.6 124.8 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.0 121.6 128.9 129.5 Stone and earth minerals .75 98.1 98.5 101.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.8 105.2 110.1 1J2.0 Coal, oil, and gas 5.11 109.2 109.3 110.8 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.3 108.9 109.5 110.7 Coal .69 104.2 97.8 105.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 108.0 109.0 104.2 Oil and gas extraction 4.42 110.0 111.1 111.8 111.5 110.0 108.2 107.7 109.1 107.9 108.3 108.4 109.1 109.5 111.7 Utilities Electric 3.91 149.4 151.3 153.1 154.2 155.2 155.6 159.1 158.3 157.4 156.2 156.8 159.7 163.6 116644..00 1.17 123.4 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. • OCTOBER 1973 MARKET GROUPINGS (1967 = 100) pp 1199 rr 66 oo 77 -- aa 11 vv 99 ee 77 rr 22 -- 1972 1973 GGrroouuppiinngg pp ttii oo oo rr nn -- aaggee Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Aug. Total index 100.0 115.2 116.4 121.6 122.7 120.4 117.3 118.9 123.6 124.6 124.5 125.6 128.9 122.4 126.9 Products, total 62.21 113.8 116.1 121.8 121.9 118.5 114.2 116.6 120.6 121.8 121.2 122.4 127.3 121.7 125.3 Final products 48.95 111.9 113.7 119.9 119.7 116.1 112.0 115.3 119.1 120.0 118.9 120.0 125.1 118.9 122.2 Consumer goods 28.53 123.6 127.3 134.3 133.2 126.8 120.2 125.3 129.2 130.8 129.2 130.3 136.4 128.7 133.7 Equipment 20.42 95.5 94.8 99.8 100.8 101.1 100.5 101.4 104.9 105.0 104.6 105.5 109.2 105.3 105.9 Ma In te t r e i r a m ls e diate products 1 3 3 7 .2 . 6 9 1 12 1 1 7 . . 1 4 1 12 1 5 7 . . 1 0 1 1 2 2 1 8. . 9 3 1 13 2 0 4 . . 1 0 1 1 2 27 3 . . 5 5 1 1 2 22 2 . . 2 5 1 1 2 2 2 1. . 2 8 1 1 2 26 8 . . 1 6 1 1 2 28 9 . . 5 2 1 1 2 2 9 9. . 6 9 1 1 3 31 0 . . 4 9 1 13 3 5 1 . . 2 4 1 13 2 2 3 . . 3 5 1 1 2 37 9 . . 0 5 Consumer goods 7.86 125.7 119.5 133.9 140.2 134.8 125.1 133.3 140.6 143.5 141.3 142.7 147.5 128.1 126.8 Automotive products 2.84 127.7 108.0 137.2 14 7.0 141.9 123.9 138.5 149.1 151.5 147.6 147.4 154.4 124.3 99.9 Autos 1.87 112.7 78.4 120.6 135.6 132.9 109.8 134.8 144.6 143.9 135.8 138.2 148.5 108.5 69.1 Auto parts and allied goods .97 156.5 164.9 169.2 168.9 159.0 150.9 145.7 157.7 166.0 170.2 165.0 165.8 154.5 158.9 5.02 124.5 126.0 132.0 136.3 130.8 125.8 130.3 135.8 138.9 137.7 140.1 143.6 130.3 142.0 Appliances, TV, and home audio. 1.41 124.6 112.3 127.7 142.7 129.1 122.0 139.7 142.6 149.0 148.2 148.5 146.8 128.9 136.1 Appliances and A/C .92 144.5 129.1 143.5 164.9 143.5 134.6 153.7 157.0 166.2 165.6 166.1 162.7 148.7 135.7 Ca T r V pe t a i n n d g h an o d m e fu a r u ni d t i u o r . e 1. . 0 4 8 9 1 8 3 7 2 . . 5 6 1 8 3 0 8 . . 9 4 1 9 3 8 9 . . 2 6 1 1 0 39 1 . . 7 2 1 1 0 40 2 . . 8 2 1 9 4 8 0 . . 4 0 1 1 1 4 3 1 . . 6 0 1 1 1 5 5 0 . . 7 2 1 1 4 1 9 6 . . 1 9 1 14 1 6 5 . . 1 4 1 1 4 1 6 5. . 7 3 1 1 5 1 1 7 . . 1 1 1 9 3 1 0 . . 9 9 1 1 5 3 4 6 . . 5 9 Misc. home goods 2.53 121.0 128.3 131.1 131.3 127.6 121.9 120.4 125.9 129.0 128.2 132.7 138.6 130.9 140.0 Nondurable consumer goods 20.67 122.8 130.2 134.4 130.6 123.7 118.4 122.2 124.9 126.0 124.6 125.6 132.2 128.9 113366..44 Clothing 4.32 109.7 116.5 119.5 118.0 112.5 103.0 105.9 116.6 120.0 119.3 115.3 122.4 104.3 Consumer staples 16.34 126.2 133.8 138.3 133.9 126.7 122.5 126.5 127.1 127.6 126.0 128.3 134.8 135.4 140.4 Consumer foods and tobacco.... 8.37 117.5 124.2 128.9 125.9 119.3 111.6 113.8 117.0 118.4 117.8 120.7 123.8 120.9 127.5 No C n o f n o s o u d m s e t r a p c l h es e mical products.. 2 7 . .9 6 8 4 1 13 4 5 4 . . 3 6 1 1 4 4 9 3 . . 1 8 1 1 6 4 2 8 . . 4 2 1 1 5 4 7 2 . . 4 2 1 13 4 4 5 . . 4 0 1 1 3 3 3 4 . . 8 0 1 13 3 9 9 . . 9 9 1 13 4 7 0 . . 8 2 1 1 4 3 7 7 . . 3 2 1 13 4 4 6 . . 7 9 1 13 5 6 4 . . 2 0 1 1 6 4 4 6 . . 2 3 1 1 5 5 8 0 . . 1 6 1 1 5 5 4 4 . . 2 0 Consumer paper products 1.91 114.8 121.2 122. § 124.9 118.5 113.2 112.4 116.2 115.5 117.8 117.0 125.1 124.1 131.1 Consumer fuel and lighting... 3.43 139.5 152.2 151.4 140.1 135.1 145.8 155.3 148.0 141.6 134.6 133.2 144.4 159.5 166.4 Residential utilities 2.25 147.8 165.1 163.5 146.4 139.4 154.5 168.5 160.1 151.8 140.4 135.5 148.7 172.3 182.4 Equipment 12.74 106.1 105.4 113.1 114.5 113.7 112.0 114.4 119.6 119.8 119.7 121.1 126.4 120.5 121.8 Industrial equipment 6.77 102.5 103.5 110.3 111.2 111.2 110.6 111.6 116.4 116.8 116.8 117.9 122.6 117.9 121.0 Building and mining equip 1.45 104.8 106.5 112.1 111.7 113.0 114.3 112.0 118.6 117.2 115.7 115.6 120.2 116.2 122.6 Manufacturing equipment 3.85 92.7 94.7 100.2 102.0 102.3 101.7 103.4 108.9 109.6 109.3 111.4 116.2 109.5 113.8 Power equipment 1.47 125.6 123.7 134.8 134.6 132.9 130.2 132.7 133.9 135.3 137.3 137.1 141.8 141.7 138.2 Commercial, transit, farm eq 5.97 110.3 107.6 116.2 118.3 116.5 113.6 117.6 123.3 123.2 122.9 124.7 130.7 123.5 122.6 Commercial equipment 3.30 118.4 122.4 128.1 126.0 125.2 122.3 123.0 127.8 126.9 129.1 131.6 140.1 139.3 139.8 Transit equipment 2.00 96.8 85.2 95.0 104.0 104.6 99.2 108.1 114.8 114.9 110.8 112.0 113.8 102.6 97.3 Farm equipment .67 110.5 101.0 120.8 123.2 109.0 113.2 118.9 126.2 129.7 128.2 128.6 134.9 108.2 113.0 Defense and space equipment 7.68 77.9 77.2 77.7 78.0 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.7 80.0 79.7 Military products 5.15 80.1 79.5 79.2 79.1 81.7 82.4 81.2 81.9 81.8 80.8 80.3 81.3 80.5 80.0 Intermediate products C M o i n sc s . t r i u n c te t r io m n e d p i r a o t d e u p c r ts o ducts 7 5. . 9 3 3 4 1 1 2 2 1 0 . . 3 8 1 1 2 2 1 7 . . 8 7 1 12 3 7 0 . . 3 2 1 1 2 3 9 1 . . 3 0 1 1 2 2 8 6 . . 3 9 1 1 2 2 2 1 . . 5 9 1 12 2 0 1 . . 5 7 1 1 2 2 4 8 . . 5 0 1 1 2 3 5 1 . . 7 9 1 13 2 5 5 . . 0 2 1 1 2 3 7 6 . . 4 4 1 1 3 4 0 0 . . 7 7 1 13 3 2 2 . . 3 3 1 13 3 7 6 . . 5 6 Materials Durable goods materials 20.91 113.5 111.5 118.8 121.3 121.0 121.8 121.6 128.8 130.7 131.2 132.2 132.8 124.1 129.4 Consumer durable parts 4.75 113.8 108.5 118.2 120.5 122.1 126.8 126.8 129.3 129.4 130.0 128.8 130.5 120.6 123.1 Equipment parts 5.41 99.3 97.7 104.1 107.2 108.7 111.0 110.8 114.7 117.5 117.4 118.7 120.7 115.0 119.1 Durable materials n.e.c 10.75 120.6 119.7 126.4 128.7 126.7 125.1 124.7 135.7 137.9 138.7 140.6 139.9 130.2 137.4 Nondurable goods materials 13.99 122.5 124.3 124.7 128.2 127.1 123.9 124.5 129.2 128.2 129.4 130.7 130.8 123.3 130.3 T N e o x n t d il u e, r a p b a l p e e r m , a a t n e d r i c a h ls e m n. . e m .c at 8 5 . .4 5 1 8 1 1 1 2 1 9 . . 9 2 1 1 3 1 1 3 . . 4 0 1 1 1 31 3 . . 9 2 1 13 1 5 6 . . 7 4 1 1 3 13 5 . . 7 6 1 13 1 1 1 . . 8 4 1 13 1 3 0 . . 7 0 1 1 1 3 2 9 . . 8 6 1 13 1 9 1 . . 0 2 1 1 4 1 0 1 . . 9 1 1 1 4 1 2 2. . 6 2 1 1 4 12 2 . . 7 2 1 1 0 3 9 1 . . 6 9 1 1 4 1 1 2. . 5 6 Fuel and power, industrial 2.89 120.9 121.3 123.5 123.3 123.6 120.3 122.6 124.5 123.2 122.3 122.7 123.9 119.9 126.8 Supplementary groups Home goods and clothing 9.34 117.7 121.6 126.2 127.8 122.3 115.3 119.0 126.9 130.2 129.2 128.6 133.8 118.3 132.5 Containers 1.82 129.7 134.6 136.9 141.3 133.3 125.0 129.4 140.5 142.6 139.4 140.9 145.8 130.7 137.5 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 100) pp pp 1199 oo rr 66 oo rr 77 -- -- aa 11 vv 99 ee 77 rr 22 -- 1972 1973 GGrroouuppiinngg ttiioonn aaggee Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Aug. Manufacturing, total 88.55 114.0 114.6 120.3 122.2 120.0 116.3 117.6 123.2 124.6 124.7 125.8 128.9 121.2 125.3 Durable 52.33 108.4 106.3 113.5 116.4 115.3 113.3 114.9 121.0 122.5 122.4 123.2 125.8 117.7 119.4 Nondurable 36.22 122.1 126.6 130.2 130.6 126.7 120.6 121.5 126.3 127.7 128.0 129.5 133.3 126.2 133.8 Mining and utilities 11.45 124.1 130.4 131.2 126.5 123.8 125.2 128.6 127.5 125.0 122.7 123.6 128.2 133.1 138.8 Mining 6.37 108.8 109.9 111.7 111.3 110.6 109.2 107.0 109.2 107.6 108.5 110.7 110.9 108.4 113.2 Utilities 5.08 143.4 156.1 155.8 145.5 140.5 145.4 155.7 150.6 146.8 140.5 139.9 149.9 164.1 170.9 Durable manufactures Primary and fabricated metals 12.55 113.9 110.0 117.4 121.1 120.3 120.5 120.4 130.0 132.1 131.7 131.2 130.5 121.8 126.6 Primary metals 6.61 113.1 107.3 115.4 119.4 117.1 118.9 118.5 131.3 133.8 133.9 131.7 127.7 116.3 122.8 Iron and steel, subtotal 4.23 107.1 101.4 108.3 113.4 110.9 114.2 112.3 125.8 128.3 128.5 125.8 121.1 112.7 117.8 Fabricated metal products 5.94 114.8 113.1 119.7 123.0 123.9 122.3 122.6 128.5 130.1 129.3 130.7 133.7 127.9 130.8 32.44 103.5 100.3 108.6 111.3 110.6 109.0 111.8 116.0 117.1 116.7 117.9 121.7 114.0 112.7 Machinery 17.39 107.5 106.8 114.7 117.1 115.0 114.6 116.9 121.8 123.3 123.5 124.9 129.4 122.0 124.6 Nonelectrical machinery 9.17 105.7 106.8 113.6 114.3 113.1 112.5 114.0 121.2 122.2 122.3 124.0 129.6 123.3 123.8 Electrical machinery 8.22 109.6 106.8 116.0 120.3 117.1 117.0 120.2 122.4 124.5 124.8 125.9 129.2 120.5 125.5 Transportation equipment 9.29 99.0 88.6 102.1 107.2 108.0 103.2 108.7 113.5 114.0 112.8 113.4 116.3 104.0 94.1 Motor vehicles and parts 4.56 123.1 102.7 127.4 137.5 138.3 129.2 142.6 148.6 147.3 144.9 145.6 151.2 129.0 108.4 Aerospace and misc. trans, eq... 4.73 75.8 75.0 77.8 78.0 78.9 78.1 76.0 79.6 82.0 81.8 82.4 82.7 79.8 80.4 Instruments 2.07 120.2 125.3 129.5 128.9 126.5 125.3 126.3 128.1 131.5 130.5 137.5 143.1 141.3 144.9 Ordnance, private and Govt 3.69 86.0 85.5 84.5 84.6 87.4 88.2 87.5 87.9 87.8 86.4 85.6 87.1 86.0 84.9 Lumber, clay, and glass 4.44 120.0 126.4 127.3 130.9 124.5 115.4 115.3 123.2 127.2 130.9 132.8 135.1 128.4 134.9 Lumber and products 1.65 122.4 126.1 129.0 133.0 124.8 111.9 115.6 128.4 130.5 131.3 128.6 132.3 123.2 132.0 Clay, glass, and stone products.... 2.79 118.6 126.5 126.3 129.7 124.3 117.5 115.1 120.1 125.3 130.7 135.3 136.8 131.5 136.6 Furniture and miscellaneous 2.90 122.7 127.5 131.0 131.1 131.3 127.6 126.1 134.3 133.9 132.4 132.5 137.2 124.6 139.8 Furniture and fixtures 1.38 113.5 115.7 117.9 118.8 122.1 121.5 121.6 128.7 127.3 124.2 123.0 125.7 110.8 128.6 Miscellaneous manufactures 1.52 131.1 138.2 142.9 142.2 139.6 133.2 130.2 139.4 139.9 139.9 141.2 147.6 137.3 150.0 Nondurable manufactures Textiles, apparel, and leather 6.90 108.1 114.1 115.2 115.3 112.0 103.9 106.4 115.4 118.2 116.9 113.8 120.4 101.7 119.3 Textile mill products 2.69 117.4 125.2 123.9 125.7 125.1 117.0 117.8 126.1 129.6 128.7 129.1 135.0 111.4 113322..99 Apparel products 3.33 105.7 111.1 114.3 113.0 108.2 98.7 103.9 113.7 116.3 115.6 110.0 117.4 102.6 Leather and products .88 88.9 91.3 92.0 92.1 86.5 83.3 80.6 88.7 89.9 85.8 81.3 87.1 68.7 85^4 Paper and printing 7.92 116 A 121.1 122.5 126.3 122.3 113.8 113.2 118.7 120.4 121.4 122.8 125.7 123.2 128.0 Paper and products 3.18 128.2 130.2 128.4 137.9 133.7 123.6 130.2 137.5 138.9 137.6 138.5 138.4 127.6 134.2 Printing and publishing 4.74 J07.9 114.9 118.6 118.5 114.7 107.3 101.7 106.0 107.9 110.6 112.2 117.2 120.2 123.9 Chemicals, petroleum, and rubber 11.92 137.8 140.3 145.9 145.6 143.0 140.3 141.1 144.8 145.6 147.6 150.6 153.8 147.6 152.3 Chemicals and products 7.86 139.6 142.4 148.6 146.8 143.2 139.5 140.5 143.8 145.0 148.8 152.2 155.5 150.7 153.2 Petroleum products 1.80 120.6 126.0 126.0 125.8 124.3 125.2 123.9 120.9 119.5 121.3 127.0 132.8 133.1 133.4 Rubber and plastics products 2.26 145.5 144.6 152.5 157.2 157.0 155.0 156.8 167.3 168.3 164.4 164.0 164.6 148.1 164.2 Foods and tobacco 9.48 117.6 123.0 127.7 126.4 120.5 113.8 114.9 117.4 118.1 117.1 120.0 123.1 119.7 125.9 8.81 118.6 123.5 129.1 126.9 121.0 115.9 115.4 117.7 118.1 117.8 120.7 123.7 121.7 112266..88 Tobacco products ..6677 110033..77 111166..77 110099..44 112200..44 111133..44 8866..00 110077..77 111133..55 111188..33 110088..00 111100..11 111155..66 9933..99 Mining 1.26 107.3 112.1 116.9 114.4 110.8 108.7 103.4 105.7 109.0 116.4 125.7 125.3 119.9 124.0 Metal mining .51 120.9 128.4 133.5 123.2 115.0 115.0 114.0 120.6 118.7 127.2 143.4 144.0 134.4 137.7 Stone and earth minerals .75 98.1 100.9 105.6 108.5 107.9 104.4 96.2 95.5 102.4 109.0 113.6 112.6 109.9 114.7 Coal, oil, and gas 5.11 109.2 109.4 110.4 110.5 110.5 109.3 107.9 110.1 107.2 106.5 107.0 107.3 105.6 110.5 Coal .69 104.2 104.2 107.9 107.8 104.9 98.0 98.0 104.2 104.3 101.7 102.9 103.2 89.3 111.0 4.42 110.0 110.2 110.8 110.9 111.4 111.1 109.5 111.0 107.6 107.2 107.7 108.0 108.1 110.4 Utilities Electric 3.91 149.4 166.0 165.4 152.0 145.3 151.6 165.1 158.5 153.8 145.4 144.6 115577..55 175.9 118844..88 Gas 11..1177 112233..44 NOTE.—Pages A-58 and A-59 include revisions stemming from changes lications Services, Division of Administrative Services, Board of Governors in seasonal adjustment factors, and pages A-60 and A-61 include re- of the Federal Reserve System, Washington, D.C. 20551. visions in some series that are not seasonally adjusted, beginning in Published groupings include series and subtotals not shown sepa- March 1972 in both instances. Data for the complete year of 1972 are rately. Figures for individual series and subtotals are published in the available in a pamphlet Industrial Production Indexes 1972 from Pub- monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 BUSINESS ACTIVITY; CONSTRUCTION • OCTOBER 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production fac M tu a r n in u g - 2 Prices 4 IIInnn--- Ca- Market ddduuussstttrrryyy pacity NNoonnaagg-utiliza- CCoonn-- rriiccuull-- Products tion ssttrruucc-- ttuurraall TToottaall PPPeeerrriiioooddd TTToootttaaalll TToottaall C Fi o n n a - l mm II ee nn dd ttee iiaa rr-- ttee MM rrii aa aa tt ll ee ss -- fff MMM aaaccc iii aaa nnn ttt nnn uuu ggg uuu rrr --- --- o i = n ( u 1 t m 1 9 p 0 6 f u 7 0 g t ) . ttrr cc tt aa oo iioo cc nn nn tt -- ss TT mm pp oo ee ee ll mm tt oo nn aa yy tt -- ll —— -- ii p m E l e o m n y - t - P ro a l y ls - ss rr aa ee ll tt ee aa ss ii ll 33 s C um on e - r m W c s o o h a d m l o e i l - t e y - Total sumer Equipgoods ment 1954. 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960, 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1 1 9 9 6 6 9 8 . . 1 1 1 0 0 5 . . 7 7 1 10 0 5 9 . . 8 7 1 10 0 5 9 . . 8 0 1 10 1 6 1 . . 6 1 1 1 0 06 4 . . 1 7 1 10 1 5 2 . . 7 0 1 10 1 5 2 . . 7 4 1 1 0 1 5 0 . . 7 5 8 8 7 6 . . 7 5 1 1 1 2 3 3 . . 2 7 1 1 0 0 3 6 . . 1 7 1 1 0 0 1 3 . . 4 2 1 11 0 6 8 . . 6 3 1 1 0 1 9 4 1 1 0 09 4 . . 8 2 1 1 0 0 2 6 . . 5 5 1970. 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 1971 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 1972 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1972-— S A e u p g t 1 1 1 1 6 7 . . 3 6 1 1 1 1 4 5 . . 7 6 1 11 1 2 3 . . 6 6 1 12 2 4 5 . . 3 2 9 9 7 6 . . 7 3 1 1 2 2 2 2 . . 8 3 1 1 2 1 0 8 . . 9 8 1 11 1 7 5 . . 0 4 579.4 1 1 8 8 0 7 . . 0 0 1 1 1 1 0 1 . . 9 3 9 97 7 . . 5 0 1 1 3 3 1 3. . 8 2 1 1 4 4 5 4 1 1 2 2 5 6 . . 7 2 1 1 1 2 9 0 . . 9 2 Oct 119.2 117.3 115.3 127.0 98.9 124.7 122.3 118.5 171.0 111.7 98.4 136.1 149 126.6 120.0 Nov 120.2 118.6 116.3 127.4 100.7 127.6 122.8 119.5 81.5 177.0 112.1 99.1 139.0 148 126.9 120.7 Dec 121.1 119.1 116.8 127.7 101.5 127.7 124.4 120.4 163.0 112.4 99.6 139.3 151 127.3 122.9 1973-—Jan 122.2 120.7 118.6 129.8 102.9 128.4 124.5 121.4 181.0 112.7 99.9 139.8 156 127.7 124.5 Feb 123.4 121.5 119.3 130.2 104.1 129.5 126.7 122.7 82.8 191.0 113.5 100.7 142.9 158 128.6 126.9 Mar 123.7 121.7 119.6 130.8 104.1 129.4 127.0 123.4 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr 124.1 122.0 120.0 130.9 104.7 129.3 127.7 123.8 177.0 114.0 101.5 144.8 157 130.7 130.7 May 124.8 122.9 120.8 131.8 105.7 130.5 128.3 124.9 '83.3 173.0 114.4 101.7 144.9 160 131.5 133.4 June 125.6 '123.7 '121.3 '131.9 '106.6 '132.0 '129.0 '125.6 183.0 114.7 '102.1 145.3 157 132.4 136.7 July '126.7 '124.6 '122.3 '132.8 '107.4 '133.1 '130.0 '126.6 177.0 '114.6 '101.8 '146.3 163 132.7 134.9 Aug '126.5 '123.6 '120.8 '130.4 '107 5 '133.7 '131.3 '125.9 83.4 206.0 '114.9 '102.1 '146.4 161 135.1 142.7 Sept.f 127.4 124.6 121.9 131.7 108.4 134.4 132.2 126.9 111155..22 110022..00 114499..66 116600 114400..22 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, Figure is for 3rd quarter 1972. and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; NOTE.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1973 Type of ownership and 1971 1972 type of construction July Aug Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Total construction 1 80,188 91,877 8,054 8,875 8,197 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 9,228 By type of ownership: Public 23,927 24,404 2,517 2,466 2,017 1,668 1,785 1,650 1,918 1,717 2,046 2,071 2,359 2,995 2,581 Private i 56,261 67,473 5,537 6,409 6,181 6,557 5,462 4,814 4,877 5,122 6,599 6,743 7,069 6,916 6,647 By type of construction: Residential building 1 34,754 45,473 3,810 4,671 4,135 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 4.224 Nonresidential building 25,574 27,327 2,461 2,458 2,378 2,384 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 Nonbuilding 19,282 19,077 1,843 1,746 1,684 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 Private housing units authorized... 1,925 2,230 2,195 2,281 2,366 2,318 2,226 2,399 2,233 2,209 2,129 1,939 1,838 2,030 1,780 (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

OCTOBER 1973 • CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser- Period Total Total d R en es ti i a - l Buildings Total M ta i r l y i- H w ig ay h - vat & io n Other 2 Total In tr d i u al s - m C e o r m ci - al b O in u t g h i s l e d r i - Other de m ve e l n o t p - 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 « 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—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. 135,503 101,801 59,112 42,689 5,292 15,001 6,002 16,394 33,702 1,221 1,999 Feb.'. 136,148 103,860 61,219 42,641 5,180 14,873 6,145 16,443 32,288 1,422 1,712 Mar.r 137,960 104,331 61,240 43,091 5,479 15,071 6,179 16,362 33,629 1,303 2,490 Apr.r 135,511 102,951 59,851 43.100 5,287 15,473 6,282 16,057 32,560 1,158 1,675 May r 136,453 104,104 59,849 44,255 5,338 16,118 6,251 16,547 32,349 1,277 2,291 Juner 135,878 104,906 60,116 44,790 5,928 15,704 6.383 16,775 30,972 1,162 1,870 July'. 138,293 106,896 60,195 46,701 6,340 16,110 6,492 17,759 31,397 1,341 1,679 Aug.r 137,698 106,632 59,921 46,711 6,707 15,836 6,261 17,907 31,066 1,047 1,825 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 (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 a l South West fam 1 i - ly 2 f - a m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total 196 3 1,603 261 328 591 430 1,012 589 1,635 1,603 292 221 71 151 196 4 1,529 254 340 578 357 970 108 450 1,561 1,529 264 205 59 191 196 5 1,473 270 362 575 266 964 87 422 1,510 1,473 246 197 49 216 196 6 1,165 206 288 472 198 778 61 325 1,196 1,165 195 158 37 217 196 7 1,292 215 337 520 220 844 72 376 1,322 1,292 232 180 53 240 196 8 1,508 227 369 618 294 900 81 527 1,546 1,508 283 227 56 318 196 9 1,467 206 349 588 324 814 85 571 1,500 1,467 284 233 51 413 197 0 1,434 218 294 612 310 813 85 536 1,469 1,434 482 421 61 401 197 1 2,052 264 434 869 486 1,151 120 781 2,084 2,052 621 528 93 497 197 2 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 475 371 104 576 1972—Aug.. 2,424 349 475 1,014 586 1,373 137 914 231 229 40 30 10 52 Sept.. 2,426 355 474 1,096 501 1,382 125 920 204 203 37 28 9 49 Oct... 2,446 372 469 1,125 480 1,315 153 978 218 217 34 25 9 54 Nov.. 2,395 353 400 1,106 536 1,324 134 937 187 186 29 21 50 Dec.. 2,369 486 330 1,080 473 1,207 128 1,034 153 151 48 42 38 1973—Jan... 2,497 348 599 1,086 464 1,450 163 884 147 147 19 12 41 Feb.. 2,456 366 571 1,087 434 1,372 123 961 140 138 21 14 43 Mar.. 2,260 297 415 1,142 406 1,245 123 892 201 200 27 19 57 Apr.. 2,123 292 387 890 554 1,202 131 790 205 205 27 18 62 May. 2,413 267 595 999 552 1,271 162 980 234 234 29 18 57 Juner 2,128 370 474 837 447 1,124 129 875 203 203 27 17 57 July'. 2,176 226 489 1,060 401 1,238 153 785 202 201 20 12 50 Aug.. 2,045 277 476 818 474 1,126 100 819 196 193 NOTE.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspecfor 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 Manufacturers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT • OCTOBER 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 a . t n A i t o o i . n o ) n n a - l la ( b N N o . r o S t . f A i o n r . ) c e ( T l f S a o o b . r t A o c a e r . l ) Total Employed1 Unem- U ( n p e e m ra m r e t c e n p e t 2 l n o t y ; - Total In c u n l o t n u a ra g l r i- In ployed S.A.) industries agriculture 1967 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1972—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 Sept. 148,782 57,484 91,694 89,403 85,127 81,757 3,370 4,276 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 r u in f g a c- Mining c C o o n t n s io t t r r n a u c c t - T t l i i r o c a n n u & s t p i l o i p t r u i t e b a s - - Trade Finance Service G m ov e e n r t n - 196 7 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 196 8 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 196 9 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 197 0 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 197 1 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 197 2 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 SEASONALLY ADJUSTED 1972—Sep t 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—Ja n 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 75,493 19,804 631 3,680 4.598 16,294 4,048 12,828 13,610 Aug.f 75,702 19,856 632 3,672 4,618 16,332 4,064 12,897 13,631 Sept p 75,892 19,863 628 3,686 4,622 16,366 4,067 12,981 13,679 NOT SEASONALLY ADJUSTED 1972—Sep t 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—Ja n 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 July 75,384 19,729 644 3,934 4,653 16,262 4,113 12,982 13,067 Aug.® 75,623 19,995 646 3,977 4,660 16,259 4,121 13,000 12,965 Sept.P 76,124 20,069 636 3,929 4,664 16,345 4,071 12,968 13,442 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 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Sept. July Aug.? Sept.? Sept. July Aug.f Sept.* 13,956 14,566 14,605 14,592 14,180 14,458 14,706 14,785 Durable goods 8,027 8,562 8,592 8,598 8,099 8,507 8,540 8,642 93 99 96 96 95 98 97 98 529 541 545 543 540 557 563 554 413 431 434 434 416 422 437 437 530 557 554 549 543 568 570 562 Primary metal industries 1,013 1,050 1,067 1,077 1,003 1,062 1,066 1,067 1,059 1,127 1,129 1,125 1,069 1,109 1,125 1,136 1,252 1,379 1,404 1,561 1,251 1,369 1,383 1,403 1,251 1,392 1,378 1,381 1,267 1,373 1,376 1,399 TTrraannssppoorrttaattiioonn eeqquuiippmmeenntt 1,273 1,338 1,336 1,339 1,285 1,312 1,263 1,319 281 306 310 313 282 305 311 314 333 342 339 337 348 334 350 353 5,929 6,004 6,013 5,994 6,081 5,951 6,166 6,143 Food and kindred products 1,174 1,160 1,145 1,149 1,293 1,189 1,264 1,265 54 64 60 58 65 56 67 70 Textile-mill products 875 899 903 901 877 885 906 902 Apparel and related products 1,168 1,140 1,161 1,148 1,180 1,094 1,169 1,159 541 556 559 556 544 556 564 559 Printing, publishing, and allied industries 658 663 660 662 657 658 657 661 Chemicals and allied products 585 605 603 603 585 606 607 603 Petroleum refining and related industries 117 118 120 122 119 122 124 124 Rubber and misc. plastic products 495 546 547 540 500 538 547 545 262 253 255 255 262 247 261 255 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.) IInndduussttrryy ggrroouupp 1972 1973 1972 1973 1972 1973 Sept. July Aug.23 Sept.f Sept. July Aug.f Sept.? Sept. July Aug.f Sept.? Total 40.8 40.7 40.5 40.9 158.26 164.43 164.43 169.74 3.86 4.06 4.06 4.13 Durable goods 41.4 41.4 41.2 41.5 171.39 177.14 176.71 183.50 4.11 4.31 4.31 4.39 42.3 42.7 41.6 42.4 175.55 180.62 179.30 184.02 4. 15 4.28 4.31 4.34 Lumber and wood products 41.3 40.5 40.8 40.8 140.27 145.04 148.42 150.47 3.38 3.59 3.62 3.67 Furniture and fixtures 40.5 39.8 39.7 39.5 127.51 128.05 131.86 132.80 3.11 3.25 3.28 3.32 Stone, clay, and glass products 42.0 42.1 41.8 41.9 169.18 177.66 177.66 179.35 3.99 4.20 4.20 4.24 Primary metal industries 41.9 42.2 41.8 42.6 199.50 210.50 213.09 220.33 4.75 5.00 5.11 5.16 Fabricated metal products 41.3 41.6 41.4 41.8 168.48 175.54 175.96 181.87 4.05 4.24 4.24 4.32 Machinery 42.4 42.2 42.2 42.9 183.59 188.07 188.94 197.34 4.33 4.51 4.52 4.60 EElleeccttrriiccaall eeqquuiippmmeenntt aanndd ssuupppplliieess 40.6 40.2 40.2 40.5 151.78 153.24 155.98 159.54 3.72 3.86 3.88 3.92 TTrraannssppoorrttaattiioonn eeqquuiippmmeenntt 41.9 42.3 41.1 42.1 203.52 212.52 201.30 218.54 4.80 5.06 5.02 5.13 Instruments and related products 40.7 40.6 40.3 40.7 152.97 155.57 154.79 159.92 3.74 3.87 3.86 3.91 Miscellaneous manufacturing industries... 39.5 38.9 38.7 39.1 123.64 125.18 127.20 128.64 3.13 3.26 3.27 3.29 Nondurable goods 39.8 39.6 39.5 39.8 140.40 146.89 146.86 150.00 3.51 3.70 3.69 3.75 Food and kindred products 40.3 40.2 40.4 40.7 148.01 155.09 156.62 160.63 3.61 3.82 3.82 3.88 Tobacco manufactures 36.9 36.0 38.1 38.1 126.97 142.52 143.96 143.47 3.35 3.97 3.72 3.66 Textile-mill products 41.4 40.8 40.8 40.9 114.13 117.05 119.43 122.59 2.75 2.89 2.92 2.99 Apparel and related products 36.2 35.9 35.7 36.0 95.93 98.64 100.08 101.88 2.65 2.74 2.78 2.83 Paper and allied products 42.9 42.7 42.3 42.6 173.23 180.62 180.20 183.18 4.01 4.23 4.24 4.27 Printing, publishing, and allied industries. 38.2 37.7 37.8 37.9 175.56 177.66 178.60 181.45 4.56 4.70 4.70 4.75 Chemicals and allied products 41.9 42.1 42.2 42.2 178.49 188.13 188.55 191 17 4.26 4.49 4.50 4.53 Petroleum refining and related industries . 42.3 42.4 42.1 42.5 214.00 226.18 221.65 226.61 5.00 5.26 5.24 5.27 Rubber and misc. plastic products 41.2 40.8 40.8 41.0 151.89 154.71 155.83 158.59 3.66 3.82 3.81 3.84 Leather and leather products 38.7 37.8 38.0 38.5 103.63 106.86 106.02 107.26 2.72 2.79 2.79 2.83 * 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 • OCTOBER 1973 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o n u i a d l e l l t e r G a l i n e c a c d i s t - y o n F p i t a n i i u n e o s g r h d r n s a - - - A u p p a p k n a e d e r p el T p t o r i a r o t n n a s - - Total M c ic a e a r d l e - s c P o a e n r r a e - l r R e t a i e c i n n o r a g d n e d a - - g O s a o i e t c n o r h e d v d e s - r s 111 111 999 999 222 333 999 333 ccc 55555 33333 11111 88888 ..... ..... 33333 88888 44444 33333 88888 00000 ..... ..... 33333 66666 5 7 4 6 . . 1 0 4 3 8 6 . . 5 9 111000444111 4444444444.....11111 3333388888.....44444 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 lOdS 5555533333.....99999 5555500000.....77777 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960. 8888888888.....77777 8888888888.....00000 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 1Q72 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 11997722--—Aug. 125.7 124.6 129.9 ffll 1199..66 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 Sept......... 126.2 124.8 130.1 111199..99 141.5 118.0 120.5 121.6 123.1 121.0 126.8 133.1 120.5 123.7 126.2 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—Ian 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 Aug......... 113355..11 114499..44 113355..22 125.0 147.0 132.8 125.8 125.3 126.5 124.5 130.5 137.6 125.7 126.1 129.4 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 PPrroo-- PPeerriioodd mm cc tt AA oo oo ii mm ee ll dd ll ss ii -- -- pp FF uu rr aa cc oo rr tt dd mm ss -- cc ff ff ee oo aa ee ss nn oo ee ss dd ee dd dd dd ss ss Total T t e il e t e c x s . - , H e i t d c e . s, F e u tc e . l , C ic e h a t e c l m s . , - R b e u t e c r b . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s t , . - e c M a q e h n r u i a y d n i - p - - F t u e u t r r c n e . , i - N t e m m a r o l i a e l n n l i - s - c - T e p m t q r o i e a u o r n n n i t p a t s 1 - - - n c M e e l o i l s u a - s ment 19601.. ..... O ........ . 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 1964o 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 o 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 1969i. 1 !! 106,5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970. ............ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972•. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 i—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 -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 Sept........... 140.2 200.4 156.3 128.1 126.8 143.8 144.8 111.5 112.8 181.9 124.4 134.4 122.6 116.0 129.9 114.5 121.1 i Dec. 1968 — 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • PRICES A 67 WHOLESALE PRICES: DETAIL (1967= 100) 1972 1973 1972 1973 Group Group Sept. July Aug. Sept. Sept. July Aug. Sept. Farm products: Pulp, paper, and allied products: Fresh and dried produce 138.1 187.8 162.2 149.0 Pulp, paper and products, excluding Grains 109.5 157.2 266.4 231.5 building paper and board 114.6 122.7 123.7 124.8 Livestock 144.9 199.3 243.3 207.4 Woodpulp 111.5 130.8 133.3 133.3 Live poultry 112.3 189.5 269.7 226.5 Wastepaper 139.2 187.6 187.6 230.5 Plant and animal fibers 108.4 186.4 228.5 267.9 Paper 116.7 121.8 121.5 121.7 Fluid milk 122.8 133.3 143.4 158.7 Paperboard 106.5 116.7 116.7 116.7 Eggs 114.9 155.2 209.6 191.5 Converted paper and paperboard.. 114.6 121.5 123.2 123.8 Hay and seeds 118.0 187.4 293.6 304.5 Building paper and board 107.3 112.2 112.8 115.9 Other farm products 132.7 151.9 150.4 153.2 Processed foods and feeds: Metals and metal products: Cereal and bakery products 116.1 125.5 136.2 147.7 Meat, poultry, and fish 131.7 169.7 198.3 187.3 Iron and steel 128.8 135.9 136.0 136.5 Dairy products 119.0 127.1 131.3 137.2 Steelmill products 130.2 134.3 134.3 134.3 Processed fruits and vegetables 120.1 127.7 129.3 130.0 Nonferrous metals 117.4 135.9 137.9 138.5 Sugar and confectionery 121.6 131.1 135.7 136.9 Metal containers 131.1 135.6 135.5 135.6 Beverages and beverage materials.... 119.1 121.1 121.2 121.6 Hardware 120.8 124.5 124.5 126.8 Animal fats and oils 126.7 227.4 428.9 264.7 Plumbing equipment 120.5 126.3 126.4 127.2 Crude vegetable oils 100.7 169.7 284.6 195.2 Heating equipment 119.2 120.9 120.7 120.7 Refined vegetable oils 107.0 164.8 164.8 164.8 Fabricated structural metal products 122.7 127.1 127.8 128.7 Vegetable oil end products 121.5 137.2 161.6 160.1 Miscellaneous metal products 124.7 129.1 130.9 131.4 Miscellaneous processed foods 116.4 123.4 128.5 128.1 Manufactured animal feeds 117.8 197.0 261.8 190.1 Textile products and apparel: Machinery and equipment: Cotton products 123.6 144.6 147.3 153.1 Agricultural machinery and equip... 122.6 125.5 125.5 125.6 Wool products 102.5 132.1 134.9 133.7 Construction machinery and equip.. 126.1 130.9 131.4 131.4 Manmade fiber textile products 108.6 123.1 123.7 126.7 Metalworking machinery and equip. 121.0 125.8 125.8 126.6 Apparel 115.3 118.8 119.3 119.5 General purpose machinery and Textile housefurnishings 110.0 111.5 112.2 112.3 equipment 123.0 127.4 127.4 127.6 Miscellaneous textile products 120.4 124.2 124.3 121.4 Special industry machinery and equipment 124.0 130.2 131.7 132.6 Hides, skins, leather, and products: Electrical machinery and equip 110.6 112.7 112.7 112.8 Miscellaneous machinery 120.9 124.4 124.7 125.0 Hides and skins 244.0 246.3 261.6 257.3 Leather 143.5 156.8 157.5 162.8 Footwear 126.8 129.5 129.7 130.3 Other leather products 120.4 129.2 130.6 130.4 Furniture and household durables: Fuels and related products, and power: Household furniture 111.7 123.2 123.6 124.4 Commercial furniture 121.1 130.6 132.2 132.8 Coal 192.2 214.0 214.4 222.6 Floor coverings 99.0 102.7 102.7 102.6 Coke 155.3 167.2 167.2 167.3 Household appliances 108.1 107.7 109.0 109.0 Gas fuels 116.7 128.7 130.4 132.2 Home electronic equipment 92.9 91.6 92.0 91.5 Electric power 122.6 129.0 129.1 130.9 Other household durable goods.... 127.0 130.8 130.8 130.5 Crude petroleum 114.7 125.8 125.8 133.3 Petroleum products, refined 111.3 146.1 145.9 146.1 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals 101.3 103.4 103.5 104.3 Flat glass 122.8 117.9 117.9 118.2 Prepared paint 118.3 121.0 121.0 121.2 Concrete ingredients 128.3 131.7 131.7 131.7 Paint materials 105.2 114.9 115.7 116.2 Concrete products 126.3 132.3 132.3 132.5 Drugs and pharmaceuticals 103.1 104.4 104.3 104.7 Structural clay products excluding Fats and oils, inedible 116.4 263.2 273.2 279.5 refractories 117.5 123.8 123.9 123.9 Agricultural chemicals and products.. 92.0 96.7 95.9 95.9 Refractories 132.1 136.3 136.3 136.3 Plastic resins and materials 88.9 93.1 93.3 93.1 Asphalt roofing 131.2 136.3 136.3 136.3 Other chemicals and products 113.8 118.1 118.2 118.3 Gypsum products 115.2 122.9 122.5 122.0 Glass containers 136.4 137.1 137.4 137.1 Rubber and plastic products: Other nonmetallic minerals 127.3 128.1 128.0 127.3 Rubber and rubber products 114.3 118.5 118.9 118.4 Crude rubber 98.8 115.8 118.1 113.4 Tires and tubes 109.7 110.4 110.4 110.4 Transportation equipment:1 Miscellaneous rubber products 122.1 125.4 125.4 125.8 Plastic construction products (Dec. Motor vehicles and equipment 118.5 119.0 119.0 118.3 1969 = 100) 93.3 93.8 94.0 94.0 Railroad equipment 130.2 134.8 135.2 136.1 Unsupported plastic film and sheeting (Dec. 1970= 100) 98.3 100.8 100.8 100.9 Laminated sheets, high pressure (Dec. 1970=100) 97.9 98.7 98.1 98.5 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition . 114.8 117.6 117.8 118.3 Lumber 165.1 209.6 210.8 216.9 Tobacco products 117.5 122.5 122.5 122.5 Millwork 130.2 148.3 148.3 149.0 Notions ............. 112.9 113.1 113.6 113.6 Plywood 134.6 138.0 140.1 138.2 Photographic equipment and supplies 107.0 108.5 108.5 108.6 Other wood products 127.6 152.9 153.2 155.9 Other miscellaneous products 117.6 129.5 129.5 129.5 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 • OCTOBER 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 II III G Fi r n o a s l s p n u a r t c i h on as a e l s product. 1 10 0 1 3 . . 4 1 5 57 5 . . 2 6 1 1 2 2 4 0 . . 5 1 2 27 8 8 4 . . 0 8 8 85 6 7 4 . . 1 2 9 92 3 2 0 . . 5 3 9 97 7 2 7 . . 6 1 1 1M ,0 9 5 . 5 4 . 1 5 , 1 U , 9 1 . 5 1 5 .2 1 1 , , 1 1 3 4 6 2 .9 .4 1 1 , , 1 1 5 6 7 6 .8 .5 1, 1 1 , 9 1 1 9 .0 9 .2 1 1, , 2 2 3 4 7 2 .8 .5 1 1 ,2 , 6 2 7 7 . 2 5 . 0 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 719.2 734.1! 752.6 Durable goods 9.2 3.5 9.6 30.5 84.0 90.8 91.3 103.6 117.4 115.1 120.2 122.9 Nondurable goods 37.7 22.3 42.9 98.1 230.8 245.9 263.8 278.7 299.9 297.9 302.3 310.7 Services 30.3 20.1 28.1 62.4 221.3 242.7 262.6 284.9 309.2 306.2 319.0 3ui Gross private domestic investment 16.2 1.4 17.9 54.1 126.0 139.0 136.3 153.2 178.3 174.7 181.5 189.4 Fixed investment 14.5 3.0 13.4 47.3 118.9 131.1 131.7 147.1 172.3 169.2 172.9; 181.2 Nonresidential 10.6 2.4 9.5 27.9 88.8 98.5 100.6 104.4 118.2 116.3 118.3 124.3 Structures 5.0 .9 2.9 9.2 30.3 34.2 36.1 37.9 41.7 41.5 41.3 43.0 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 Residential structures 4.0 .6 3.9 19.4 30.1 32.6 31.2 42.7 54.0 52.8 54.5 56.9 Nonfarm 3.8 .5 3.7 18.6 29.5 32.0 30.7 42.2 53.5 52.3 53.9 56.4 Change in business inventories 1.7 -1.6 4.5 6.8 7. 7.8 4.5 6 6.0 5.5 8.7 8.2 Nonfarm -1.4 4.0 6.0 6.9 7.7 4.3 4.5 5.6 4.8 8.4 7.9 Net exports of goods and services. 1.1 .4 1.3 1.8 2.5 1.9 3.6 -4.6 -5.7 -3.8 -3.5 Exports 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.3 73.5 69.9 74.0 79.7 Imports 5.9 2.0 4.6 12.0 48.1 53.6 59.3 65.5 78.1 75.6 77.7| 83.2 Government purchases of goods and services. 8.5 8.0 24.8 37.9 199.6 210.0 219.5 234.3 255.0 254.2 254.7j 260.7 Federal 1.3 2.0 16.9 18.4\ 98.8 98.8 96.2 98.1 104.4 106.7 102.3\ 102.7 National defense 13. 14.1 78.3 78.4 74.6 71.6 74.4 76.6 71.9 72.4 Other 3. 4.3! 20.5 20.4 21.6 26.5 30 30. 30.4s 30.3 State and local 7.2 6.0 7.9 19.5! 100.8 111.2 123.3 136.2 150.5 147.5 152.41 158.0 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 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 11992299 11993333 11994411 11995500 11996688 11996699 11997700 11997711 11997722 IItteemm II III IV I II National income 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.6 1,015.0 1,038.2 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 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 9900..88 92.6 Employer contributions for social insurance ..11 . 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 Business and professional 9.0 3.3 11.1 24.0 49.5 50.5 50.0 51.9 54.0 53.3 54.3 55.3 56.3 57.1 Farm 6.2 2.6 6.4 13.5 14.7 16.7 16.9 16.8 20.2 19.9 19.8 21.8 24.3 24.4 Rental income of persons 5.4 2.0 3.5 9.4 21.2 22.6 23.9 24.5 24.1 22.6 24.9 24.9 24.7 24.6 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 88.0 91.5 98.8 104.3 107.9 Profits before tax 10.0 1.0 17.7 42.6 87.6 84.9 74.0 85.1 98.0 94.8 98.4 106.1 119.6 128.9 Profits tax liability 1.4 .5 7.6 17.8 39.9 40.1 34.8 37.4 42.7 41.4 42.9 45.9 52.7 57.4 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 71.6 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 44.2 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

OCTOBER 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 1929 1933 1950 1968 1970 1971 1972 111 IV I Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 977.1 1,055.5 1,155.2 1,142.4 1,166.5 1,199.21,242.5 1,272.0 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 74.5 81.6 87.3 93. 102.4 103.6 102.3 105.1 106.9 109.0 Indirect business tax and nontax liability . 7.0 7. 11.3 23.3 78.6 85.9 93.5 102.4 109.5 108.4 110.5 112. 115.6 117.2 Business transfer payments. .6 .7 .5 .8 3.4 3. 4.0 4.3 4.6 4.6 4.7 4.7 4 4.9 Statistical discrepancy .7 .6 .4 1.5 -2.7 -6. -6.4 -3.4 -1.5 -1.0 1.6 0.2 1.1 3.2 Plus: Subsidies less current surplus of government enterprises. .2 .7 1.0 1.7 1.2 1.7 1.5 1. 2.2 9 .4 Equals: National income. 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.6 1,015.0 1,038.2 Less: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80. 91.1 88.0 91.5 98.8 104.3 107.9 Contributions for social insurance .2 .3 2. 6.9 47.1 54.2 57.7 73.7 72.9 74.5 75. 89.3 90.9 Excess of wage accruals over disburse- 64.6 ments .0 -.5 -.4 -.2 .0 .0 -.3 .6 Plus: G Ne o t v e in rn te m re e s n t t p t a ra id n s b fe y r g p o a v y e m rn e m nt e s n t and .9 1.5 2.6 14.3 56.1 61.9 75. 88.9 98.3 95.3 96.4 107.3 108.8 110.8 consumers 2.5 1.6 2.2 7.2 26.1 28.7 31.0 31.0 32.7 32.6 32.9 33.7 34.7 36.1 Dividends 5.8 2.0 4.4 8.8 23.6 24.3 24.7 25. 26.0 25.9 26.2 26.4 26.9 27.3 Business transfer payments .6 .7 .5 .8 3.4 3. 4.0 4.3 4.6 4.6 4.7 4.7 4. 4.9 Equals: Personal income , 85.9 47.0 96.0 227.6 688.9 750.9 808.3 863.5 939.2 926.1 943.7 976.1 996.6 1,019.0 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. 147.4 145 149.3 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 81.7 193.9 551.2 596.2 635.5 685. 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 17.7 20.0 20.7 21.2 22.0 Personal transfer payments to for- 16.8 19'7I 19.4 eigners .3 .2 .2 .5 .9 1.0 1.0 K0I .9 1.0 1.1 .9 1.0 Equals: Personal saving 4.2 -.9 11.0 13.1 39.8 38.2 60.2 49.7 45.8 54.4 50.0 51.0 56.2 45.9 Disposable personal income in constant (1958) dollars 150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.91 571.6 579.3 595.1 603.9 604.8 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.p Total personal Income 863.5 939.2 944.4 951.3 967.0 977.6 983.6 989.1 997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.1 1,045.7 Wage and salary disbursements 573.3 627.8 632.6 638.7 643.8 648.4 654.0 661.7 667.2 671 677. 682 688. 693. 699.0 Commodity-producing industries.. 206.3 226.0 227.4 230.1 232.8 235.0 236. 239.2 242.2 243. 245. 248. 251. 253. 255.0 Manufacturing only 160.5 175.9 177.0 179.3 181.6 183.8 185.6 187.1 189.6 190. 192. 194. 197. 197. 198.9 Distributive industries 138.3 151.5 152.4 153.6 155.2 155.6 157.2 158.7 159.3 160. 162. 163. 164. 165. 166.8 Service industries 104.7 116.1 117.6 118.8 119.2 119.8 121.3 122.9 124. 124. 126. 126. 127. 129. 131.0 Government 123.9 134.2 135.1 136.2 136.7 138 138.7 140.9 141.6 142. 143. 143. 144. 145. 146.3 Other labor income 36.6 40.7 41.3 41.6 42.0 42.3 42.7 43.0 43.3 43.6 43. 44. 44. 45.1 Proprietors' income 68.7 74.2 74.3 74.6 75.9 77.5 77.9 80. 80.6 81. 81. 81. 81. 83. 84.1 Business and professional 51.9 54.0 54.5 54.3 55.1 55.1 55.6 56.1 56.3 56. 56. 57. 57. 57. 57.9 Farm 16.8 20.2 19. 20.3 20.8 22.4 22.3 24.0 24.3 24. 24. 24. 24. 25. 26.2 Rental income 24.5 24. 25.2 25.1 25.1 24.7 24.9 24. 24. 24. 24. 24. 24. 25. 25.1 Dividends 25.1 26.0 26.3 26.2 26.3 26.3 26.5 26. 26.9 27. 27. 27. 27. 27. 28.2 Personal interest income 73.0 78.0 78.5 78.9 79.6 80.4 81. 81.9 82.6 83. 84. 85. 86. 87. 88.9 Transfer payments 93.2 103.0 101.3 101.4 109.7 113.7 112.6 112.5 113.8 114. 115. 115. 116. 116. 118.9 Less: Personal contributions for social insurance 30.9 34.7 35.0 35.2 35.4 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 43.7 Nonagricultural income 839.8 911.5 917.3 923.6 938.8 947.7 953.6 957.4 965.3 970.9 979.5 986.4 994.2 1,001.8 1,011.6 Agricultural income , 23.7 27.7 27.1 27.7 28.2 29.9 30.0 31.8 32.1 32.4 32.0 32.2 32.4 33.3 34.1 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 FLOW OF FUNDS • OCTOBER 1973 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973P TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11996666 11996677 11996688 11996699 1970 1971 1972 HI H2 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 31.5 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 21.7 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 7.9 31 32 Foreign -.3 . 1 .2 .5 . l * -.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 88..77 3333 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 6611..33 6688..44 3366 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 outlays i 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 --1177..99 --3322..00 --2277..77 --4433..55 --4400..22 5 Total business 6 Total capital outlays 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 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 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 --2266..44 --2200..66 --2277..99 --3344..33 1111 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 --2211..44 --1133..77 --1199..88 --2266..77 1177 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 institutransaction types are available on a quarterly basis and annually for tions. Such issues are in U.S. Government securities on p. A-71, 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 Statistics, Board of Governors of the Federal Reserve System, Wash- commercial paper issued by nonfinancial corporations plus bankers' ington, D.C., 20551. acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • FLOW OF FUNDS A 71 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973f Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI 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 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 2 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 3 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 4 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 5 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 6 By agency— 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 7 Sponsored credit agencies 5.1 —. l 3.2 9.0 9.9 2.8 6.0 -1.4 7.0 7.5 4.5 18.9 8 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 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 12 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 13 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 14 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 15 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 16 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 17 18 Less: FHLB advances .9 -2.5 .9 4.0 1.3 -2.7 * -5.5 .2 -2.4 2.5 7.8 18 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 19.8 13.9 21.0 33.3 12.1 11.3 32.2 1.9 20.8 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 .8 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 32 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 33 34 Municipal securities 2.6 -2.5 -.2 8.7 — 1.1 -.1 2.1 -2.7 2.6 .9 3.4 5.4 34 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 35 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 36 37 Other 2.3 1.7 2.1 2.0 1.4 1.3 .6 .3 2.3 -.4 1.7 .8 37 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 38 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 39 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 40 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 41 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 42 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 47 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 48 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 49 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 7.8 1 2 Mutual fund shares 3.7 3.0 5.8 4.8 2.6 1.2 -.6 .3 2.1 -.8 -.4 -2.2 2 3 Other equities .9 2.3 -.7 4.7 6.9 13.5 12.6 12.7 14.2 13.3 12.0 10.1 3 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 12.4 4 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 -4.6 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-70. 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 affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS • OCTOBER 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 LLiinnee CCrreeddiittss++,, ddeebbiittss-- 1970 1971 1972 II III IV I II P Summary—Seasonally adjusted 1 Merchandise trade balance 1 2,176 -2,698 -6,912 -1,774 -1,573 -1,745 -960 -230 ? Exports 41,964 42,768 48,769 11,539 12,362 13,213 15,320 16,747 3 -39,788 -45,466 -55,681 -13,313 -13,935 -14,958 -16,280 -16,977 4 -3,374 -2,918 -3,558 -954 -846 -864 -825 -727 5 Travel and transportation, net -2,013 -2,288 -2,853 -691 -679 -730 -608 -742 6 Investment income, net 2 6,260 7,972 7,862 1,791 1,950 2,232 2,309 2,071 7 U.S. direct investments abroad 7,920 9,456 10,433 2,450 2,600 2,991 3,152 3,210 8 3,506 3,443 3,492 820 876 875 1,006 1,056 9 -5,166 -4,927 -6,063 -1,479 -1,526 -1,634 -1,849 -2,195 10 581 739 850 202 209 234 237 244 11 Balance on goods and services 3 3,630 807 -4,609 -1,426 -939 -870 150 616 12 Remittances, pensions, and other transfers -1,481 -1,553 -1,570 -375 -373 -429 -397 -381 13 Balance on goods, services, and remittances 2,150 -745 -6,179 -1,801 -1,312 -1,299 -247 235 14 U.S. Government grants (excluding military) -1,734 -2,045 -2,174 -563 -581 -452 -345 -549 15 416 -2,790 -8,353 -2,364 -1,893 -1,751 -592 -314 1166 U.S. Government capital flows excluding nonscheduled -1,829 -2,117 -1,714 -245 -542 -627 -671 -531 17 Nonscheduled repayments of U.S. Government assets 244 225 137 17 7 26 111 174 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies -433 -467 238 133 169 15 224 451 19 Long-term private capital flows, net -1,429 -4,401 -151 604 -393 781 -19 -562 20 U.S. direct investments abroad -4,410 -4,943 -3,404 -183 -1,148 -771 -2,025 -1,158 21 Foreign direct investments in the United States 1,030 -115 160 183 178 160 273 455 22 -942 -966 -614 -346 209 -40 51 -128 23 U.S. securities other than Treasury issues 2,190 2,269 4,335 956 553 1,768 1,745 512 24 Other, reported by U.S. banks 178 -862 -1,120 -263 -426 -442 -102 -293 25 526 216 492 257 241 106 39 50 26 Balance on current account and long-term capital 4 -3,031 -9,550 -9,842 -1,855 -2,652 -1,556 -947 -782 27 Nonliquid short-term private capital flows, net -482 -2,347 -1,637 310 -430 -982 -1,793 -1,054 28 Claims reported by U.S. banks -1,023 -1,802 -1,495 206 -267 -859 -1,796 -1,327 29 Claims reported by U.S. nonbanking concerns -361 -530 -315 62 -122 -250 -32 263 30 Liabilities reported by U.S. nonbanking concerns 902 -15 173 42 -41 127 35 10 31 Allocations of Special Drawing Rights (SDR's) 867 717 710 178 177 177 32 -1,205 -10,784 -3,112 -940 -1,626 -1,490 -3,921 229 33 -3,851 -21,965 -13,882 -2,307 -4,531 -3,851 -6,661 -1,607 34 -5,988 -7,788 3,542 1,456 7 2,367 -3,838 1,983 35 Liquid claims 252 -1,097 -1,234 109 -410 -131 -1,939 815 36 -99 -566 -742 246 -274 -77 -1,296 839 37 Reported by U.S. nonbanking concerns 351 -531 -492 -137 -136 -54 -643 -24 38 Liquid liabilities -6,240 -6,691 4,776 1,347 417 2,498 -1,899 1,168 39 To foreign commercial banks -6,508 -6,908 3,862 1,136 295 1,995 -1,916 734 40 To international and regional organizations 181 682 104 -70 -32 181 10 73 41 To other foreigners 87 -465 810 281 154 322 7 361 42 -9,839 -29,753 -10,340 -851 -4,524 -1,484 -10,499 376 Financed by changes in: 43 Liquid liabilities to foreign official agencies 7,637 27,615 9,720 1,057 4,467 1,645 99,,112211 -820 44 Other readily marketable liabilities to foreign official agencies 5 -810 -551 399 27 34 117 1,202 259 45 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt 535 341 189 -2 78 -167 -44 168 46 2,477 2,348 32 -231 -55 -111 220 17 47 Gold 787 866 547 3 48 SDR's -851 -249 -703 -171 -177 -177 9 49 Convertible currencies 2,152 381 35 -245 134 82 233 50 389 1,350 l 153 185 -15 -16 -13 8 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14) 2,586 33,,115533 4,200 920 1,189 949 716 832 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) 22,,994488 ! 3,192» (6) (6) (6) (6) (6) (6) 53 Reinvested earnings of U.S. incorporated affiliates of 434t 498s (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

OCTOBER 1973 • U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1972 1973 CCrreeddiittss ddeebbiittss —— 11997700 11997711 11997722 II III IV I Up Balances excluding allocations of SDR's—Seasonally adjusted Net liquidity balance -4,718 -22,682 -14,592 -2,485 -4,708 -4,028 -6,661 -1,607 Official reserve transactions balance -10,706 -30,470 -11,050 -1,029 -4,701 -1,661 -10,499 376 Balances not seasonally adjusted Balance on goods and services 3,630 807 -4,609 -1,489 -2,409 168 819 721 Balance on goods, services, and remittances 2,150 -745 -6,179 -1,873 -2,796 -263 448 332 Balance on current account 416 -2,790 -8,353 -2,471 -3,333 -698 74 -249 Balance on current account and long-term capital 4 -3,031 -9,550 -9,842 -2,310 -4,052 343 -865 -965 Balances including allocations of SDR's: Net liquidity -3,851 -21,965 -13,882 -3,034 -5,299 -3,197 -6,286 -2,009 Official reserve transactions -9,839 -29,753 -10,340 -741 -5,590 -1,503 -9,995 804 Balances excluding allocations of SDR's : Net liquidity -4,718 -22,682 -14,592 -3,034 -5,299 -3,197 -6,286 -2,009 Official reserve transactions -10,706 -30,470 -11,050 -741 -5,590 -1,503 -9,995 804 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 Ecoproduct accounts of the United States. nomic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports i Imports * Trade balance 1970 1971 1972 1973 1970 1971 1972 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 J J u u l n y e . . . . . 3 3, , 7 7 2 0 7 4 3 3, , 5 6 7 7 3 2 4 3 , ,9 0 7 7 1 4 5 5 , , 8 7 6 7 9 8 3 3 , , 2 2 6 5 5 4 4 3 , , 0 8 3 3 7 2 4 4 , , 4 5 6 6 8 5 5 5 . , 7 7 6 9 2 4 4 4 5 6 0 2 - - 3 2 6 5 5 9 - -4 4 9 9 1 7 -1106 6 Aug... 3,591 3,667 4,197 6,004 3,346 3,913 4,726 6,021 245 -247 -530 -17 Sept... 3,553 4,487 4,176 3,423 4,179 4,612 130 308 -436 Oct... 3,688 2,669 4,316 3,498 3,469 4,738 190 -800 -421 Nov... 3,499 3,196 4,473 3,428 3,456 5,148 71 -260 -675 Dec... 3,569 3,881 4,558 3,401 4,169 5,002 168 -288 -444 Quarter: I 10,327 11,086 11,767 15,421 9,720 10,792 13,403 16,254 607 294 -1,637 -833 I I 10,798 11,049 11,673 16,868 9,864 11,719 13,370 16,846 933 -670 -1,697 22 II I 10,848 11,727 12,447 10,023 11,924 13,903 816 -197 -1,456 I V 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 • OCTOBER 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 AArreeaa aanndd ccoouunnttrryy 11996633 11996644 11996655 11996666 11996677 11996688 11996699 11997700 11997711 11997722 III IV I II Western Europe: --8822 -----------5555555555555555555555 ----111100000000 --2255 44 -----------4444444444400000000000 ----88883333 ---555888 ---111111000 --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333332222255555 --112299 ---444777333 -----------222222222222222222222255555555555 555550000000000 -------2222222 ---222 ---222 ----55552222 4444411111 22 222222222220000000000000000000000 -------88888880000000 ---666000 ---888555 ----222200009999 -----7777766666 -----------6666666666600000000000 -------33333335555555 ----11119999 ----55550000 --2255 --113300 -----------3333333333322222222222 -------111111188888880000000 55551111 -----------8888888888811111111111 -------55555550000000 ---222 ---333000 ---555000 --2255 ----55550000 --117755 332299 666666666661111111111188888888888 111111155555550000000 888000 ---888777999 ---888333555 222000000 11 --66 --3355 --4499 1166 --4477 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 222222000000000000 111115555500000 5555500000 Latin American republics: Argentina ---333000 ------333333999999 -----11111 -----2222255555***** --2255 ----22228888 Brazil 777222 555444 2222255555 ------333333 ----22223333 Colombia . 111000 2222299999 777777 ** ----1111 Venezuela. . -----2222255555 Other --1111 --99 -----1111133333 --66 1111 --4400 --2299 --8800 --55 TToottaall 3322 5566 111777 -----4444411111 999 ---666555 --5544 --113311 --55 Asia: ---111000 -----44444 ---222111 ---444222 Jap*an -----5555566666 --111199 Lebanon . --1111 -----1111111111 -------99999995555555 ----33335555 --11 -------33333334444444 ----11110000 Philippines 2255 2200 ** 9999999 4400 --44 ----2222 Saudi Arabia --11 -------55555550000000 -------88888881111111 iiiiii ---333000 Other --1133 --66 --1144 --1144 --2222 -------77777775555555 ---999 22--9911 333999 --33 --33 TToottaall 111222 333 ---222444 ---888666 ---444444 ---333666666 444222 ---222111333 ---333888 --33 --33 All nther ---333666 ---777 ---111666 ---222222 333---111666666 333---666888 ---111 ---888111 ---666 TToottaall ffoorreeiiggnn ccoouunnttrriieess --339922 --3366 ----1111,,,,333322222222 ----666600008888 ----1111,,,,000033331111 ----1111,,,,111111118888 999955557777 4444 ———— 666633331111 ----888844445555 ----3333 --33 Intl Monetary Fund^ 6666----222222225555 111177777777 22222222 ----3333 11110000 ————111155556666 ----22222222 ----555544444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ----1111,,,,000000009999 ----1111,,,,111122221111 999966667777 ———— 777788887777 ----888866667777 ----555544447777 --33 1 Includes purchase from Denmark of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 2 Includes purchase from Kuwait of $25 million. by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 3 Includes sales to Algeria of $150 million in 1967 and $50 million in first withdrawal ($17 million) was made in June 1968 and the last with- 1968. drawal ($144 million) was made in Feb. 1972. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Treasury to the IMF. The country data include U.S. gold sales to various countries securities. IMF repurchased $400 million in Sept. 1970 and the remaining in connection with the IMF quota payments. Such U.S. sales to countries $400 million in Feb. 1972. and resales to the United States by the IMF total $548 million each. 6 Payment to the IMF of $259 million increase in U.S. gold subscription 3 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in if needed. Under appropriate conditions, the United States could pur- IMF operations. Does not include transactions in gold relating to gold chase additional amounts equal to its quota. deposit or gold investment (see Table 6). 5 Includes $259 million gold subscription to the IMF in June 1965 for 2 Positive figures represent purchases from the IMF of currencies of a U.S. quota increase, which became effective on Feb. 23,1966. In figures other members for equivalent amounts of dollars; negative figures repre- published by the IMF from June 1965 through Jan. 1966, this gold subsent 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

OCTOBER 1973 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) EE yy nn ee dd aa rr oo ll Total Tot G a o l2 l d st T oc r k ea i s ury v c fo u e C c r r r i o t e r e i n i e b s g n - l n e - p R I o e M s s i i n e t F r i o v 3 n e SDR's4 E m n o d n t o h f Total Tot G al o 2 l d s T to r c e k a sury v c fo u e C c r r i r o e e t r i s n i e b g 5 - n l n e - p R I o e M s s i i e n t F r i o v 3 n e 1959... 21,504 19,507 19,456 1,997 1972 1960... 19,359 17,804 17,767 1,555 Sept... 13,217 10,487 10,410 323 449 1961... 18,753 16,947 16,889 116 1,690 Oct... 13,313 10,487 10,410 414 454 1962... 17,220 16,057 15,978 99 1,064 Nov... 13,307 10,487 10,410 403 459 1963... 16,843 15,596 15,513 212 1,035 Dec... 13,151 10,487 10,410 241 465 1964... 16,672 15,471 15,388 432 769 1973 1965... 15,450 6 13,806 613,733 781 6 863 Jan... 13,054 10,487 10,410 140 469 1966... 14,882 13,235 13,159 1,321 326 Feb... 12.926 10,487 10,410 8 473 1967... 14,830 12,065 11,982 2,345 420 Mar. . 12,931 10,487 10,410 478 1968.. . 15,710 10,892 10,367 3,528 1,290 Apr... 12,904 10,487 10,410 460 1969... 7 16,964 11,859 10,367 72,781 2,324 May.. 12,916 10,487 10,410 16 464 June.. 12,914 10,487 10,410 470 1970... 14,487 11,072 10,732 629 1,935 851 July.. 12,918 10,487 10,410 474 1971. . . 812,167 10,206 10,132 8 276 585 1,100 Aug... 12,923 10,487 10,410 479 19729.. 13,151 10,487 10,410 241 465 1,958 Sept... 12.927 10,487 10,410 483 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 IIMMFF hhoollddiinnggss (during period) ooff ddoollllaarrss ((eenndd ooff ppeerriioodd)) PPPPPeeeeerrrrriiiiioooooddddd PP ss tt uu aa dd ii bb oo yy oo ss nn mm oo llll cc ss ff aa rr ee rr ii nn ii pp ss nn tt -- ss UU ..SS bb .. yy tt ss gg rr NN II aa aa oo MM ll ee nn ll ee dd tt FF ss ss aa cc ii ttiioonn TT ss tt cc ff ii rr oo cc uu oo ww aa ii rr rr nn ee nn ee ii rr ss ss tt ii ss ee hh gg aa nn 22 ii nn nn cc -- II -- MMFF II ii dd MM nn oo cc FF ll ii oo nn ll aa mm nn rr ee ee ss tt P d u o r TTT l ooo c o l rrr ttt h a f hhh aaa a www r nnn eee s s rrr iii sss 3 e ttt aaa s hhh ccc ccc ooo ttt III uuu iii p MMM ooo nnn u nnn d ttt FFF r sss o rrr R c iii l i bbb eee h n l e a sss yyy - a r s s e s cccc TTTT hhhh oooo aaaannnn ttttaaaa gggg llll eeee AAAmmmooouuunnnttt PPP qqq eee UUU rrr uuu ooo ... ooo ccc fff SSS ttt eee ... aaa nnn ttt ppppp ppppp ((((( iiiii rrrrr eeeee nnnnn eeeee ooooo eeeee rrrrr UUUUU nnnnn sssss sssss iiiii iiiii IIIII ddddd eeeee ooooo ..... ttttt SSSSS MMMMM rrrrr ddddd iiiii vvvvv ..... ooooo ooooo ))))) FFFFF eeeee nnnnn fffff 44444 1946—1957 2222,,,,000066663333 666000000 -----------------------4444444444444444444444455555555555555555555555 ---------222222222,,,,,,,,,666666666777777777000000000 888822227777 777777777777777777777777777777777777777777777755555555555555555555555 777777777777777777777777777777777777777777777755555555555555555555555 2222222222222222222222288888888888888888888888 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999997777777777777777777777755555555555555555555555 1958—1963 1111,,,,000033331111 111555000 6666666666666666666666600000000000000000000000 ---------111111111,,,,,,,,,666666666666666666666666666 2222,,,,777744440000 22222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333331111111111111111111111155555555555555555555555 33333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000009999999999999999999999900000000000000000000000 7777777777777777777777755555555555555555555555 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000003333333333333333333333355555555555555555555555 1964—1966 777777776666 11,,664400 4444444444444444444444455555555555555555555555 ---------777777777222222222333333333 6666 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777774444444444444444444444444444444444444444444444 44444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888883333333333333333333333344444444444444444444444 9999999999999999999999944444444444444444444444 55555555555555555555555333333333333333333333332222222222222222222222266666666666666666666666 1967 2222222222222222222222200000000000000000000000 ---------111111111111111111444444444 -----------------------9999999999999999999999944444444444444444444444 44444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777774444444444444444444444400000000000000000000000 9999999999999999999999922222222222222222222222 444444444444444444444442222222222222222222222200000000000000000000000 1968 --8844 2222222222222222222222200000000000000000000000 ---------888888888000000000666666666 -----------------------888888888888888888888887777777777777777777777700000000000000000000000 33333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888887777777777777777777777700000000000000000000000 7777777777777777777777755555555555555555555555 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222229999999999999999999999900000000000000000000000 1969 22222222 1111111111111111111111199999999999999999999999 ---------111111111,,,,,,,,,333333333444444444333333333 222266668888 -----------------------11111111111111111111111 ,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000003333333333333333333333344444444444444444444444 22222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888883333333333333333333333366666666666666666666666 5555555555555555555555555555555555555555555555 22222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333332222222222222222222222244444444444444444444444 1 1 9 9 7 7 1 0 11,,115555 6666777711112222**** 1111,,,,3333 1111 6666 5555 2222 0000 -----------------------22222222222222222222222 22222222222222222222222 88888888888888888888888 55555555555555555555555 ---------888888888 ---------222222222 555555555 444444444 444444444 7777 4444 4444 0000 1111 11111111111111111111111 11111111111111111111111 ,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,, 33333333333333333333333 9999999999999999999999922222222222222222222222 55555555555555555555555 99999999999999999999999 00000000000000000000000 44444444444444444444444 66666666666666666666666 ,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,11111111111111111111111 77777777777777777777777 11111111111111111111111 66666666666666666666666 55555555555555555555555 55555555555555555555555 99999999999999999999999 77777777777777777777777 11111111111111111111111 11111111111111111111111 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,99999999999999999999999 55555555555555555555555 33333333333333333333333 88888888888888888888888 55555555555555555555555 55555555555555555555555 1972 77 554411 222200000000 -----------------------4444444444444444444444477777777777777777777777 666666666666666666666669999999999999999999999944444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111100000000000000000000000 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666655555555555555555555555 1972—Sept -----------------------66666666666666666666666 -----------------------66666666666666666666666 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888882222222222222222222222255555555555555555555555 9999999999999999999999944444444444444444444444 444444444444444444444444444444444444444444444499999999999999999999999 Oct -----------------------55555555555555555555555 -----------------------55555555555555555555555 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888882222222222222222222222200000000000000000000000 9999999999999999999999944444444444444444444444 444444444444444444444445555555555555555555555544444444444444444444444 Nov -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111166666666666666666666666 9999999999999999999999944444444444444444444444 444444444444444444444445555555555555555555555599999999999999999999999 Dec -----------------------66666666666666666666666 ''' r -----------------------66666666666666666666666 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111100000000000000000000000 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666655555555555555555555555 1973—jan -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888880000000000000000000000066666666666666666666666 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666699999999999999999999999 Feb -----------------------55555555555555555555555 -----------------------55555555555555555555555 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888880000000000000000000000011111111111111111111111 9999999999999999999999933333333333333333333333 444444444444444444444447777777777777777777777733333333333333333333333 Mar -----------------------55555555555555555555555 -----------------------55555555555555555555555 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777779999999999999999999999966666666666666666666666 9999999999999999999999933333333333333333333333 444444444444444444444447777777777777777777777788888888888888888888888 Apr 1111111111111111111111188888888888888888888888 1111111111111111111111188888888888888888888888 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111144444444444444444444444 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666600000000000000000000000 May -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111100000000000000000000000 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666644444444444444444444444 June -----------------------66666666666666666666666 -----------------------66666666666666666666666 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888880000000000000000000000044444444444444444444444 9999999999999999999999944444444444444444444444 444444444444444444444447777777777777777777777700000000000000000000000 July -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888880000000000000000000000000000000000000000000000 9999999999999999999999933333333333333333333333 444444444444444444444447777777777777777777777744444444444444444444444 Aiiff -----------------------55555555555555555555555 -----------------------55555555555555555555555 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777779999999999999999999999955555555555555555555555 9999999999999999999999933333333333333333333333 444444444444444444444447777777777777777777777799999999999999999999999 Sept J -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666.......................777777777777777777777779999999999999999999999911111111111111111111111 9999999999999999999999933333333333333333333333 444444444444444444444448888888888888888888888833333333333333333333333 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. • OCTOBER 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 liabili- other foreigners ties to Liquid Total a a c t I f r r g t r M i a i o s o o n l i m F n d n s s g - i t l S i i t e h a e s b o r m r i r l t e i - - - M U a a b r .S k le . e t- N v k o e e c n r t o m t a n i b b - a l l r e e - N n v k T o o e e U n r n r t e t a . m c S i a b o b . a s l n l . e r e - - m r O e a a a t r b h d k l e i e e l r y t - t m L l o b i e i a a t q c r i b n e o u c i k s i l m i a i s d - l - Total t l S i i t e a h e s b o r m i r r l t e i - - - M U a a b r .S k le . e tpo b r y te d T bo re n a d s s . T U re .S a . s . b a o n n d d s li t a i b es il 5 i - abroad6 po b r y te d T bo re n a d s s . ba i n n k s no a t n e d s 3 bo a n nd d s notes4 ba i n n k s no a te n s d 3 • 7 U.S. notes U.S. 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 /26,433 800 14,459 12,467 1,217 703 63 9 5,817 3,397 3,046 \26,394 800 14,425 12,467 1,183 703 63 9 5,817 3,387 3,046 J29,313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 \29,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 (31,145 1,011 14,841 12,484 860 256 328 913 10,116 4.271 3.743 \31,020 1,011 14,896 12,539 860 256 328 913 9,936 4.272 3.744 (35,819 1,033 18,201 14,034 908 711 741 1,807 11,209 4,685 4,127 \35,667 1,033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 (38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 \38,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 »o/45,755 1,019 ioi5,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 \ 45,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 (47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 (67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 167,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 79,454 60,606 40,616 3,881 12.094 3,647 368 12,906 4,419 4,041 79,728 60,075 39,633 4,117 12.095 3.804 426 13,577 4,630 4,241 81,420 60,931 40,266 4,457 12.097 3,651 460 14,173 4,822 4,416 82,372 61,127 40,045 4,834 12.098 3,651 499 14,776 4,745 4,322 82,900 61,520 39,994 5,236 12,108 3,639 543 14,802 4,952 4,527 82,073 60,797 38,535 5,798 12,110 3,780 574 14,793 4,891 4,466 87,870 68,475 45,413 6,377 12,110 3.627 948 12,809 4,967 4,595 1290,878 1271,331 46,924 6,917 1212,128 3,617 1,745 12,952 4,959 4,583 1390,596 70,748 45,949 6,934 12,245 3,631 1,989 13,070 5,148 4,749 92,103 70,902 46,099 6,934 12,245 3.628 1,996 14,296 5,146 4,762 92,184 70,681 45,693 6,934 12,245 3.805 2,004 14,482 5,320 4,937 93,198 71,012 46,122 6,934 12,245 3,705 2,006 15,384 5,255 4,881 92,387 70,388 45,599 6,906 12,319 3,555 2,009 15,087 5,319 4,984 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 cercost 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; nonabroad 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. 1 Includes marketable U.S. Treasury bonds and notes held by commercial 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

OCTOBER 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 l i n e s E W u e r s o t p e e r n 1 Canada A re m L p e u a r b t i i l n c i a c s n Asia Africa cou O n t t h r e ie r s 2 1967.. 18,194 10,321 1,310 1,582 4,428 250 303 1968 3 / \ 1 1 7 7 , , 4 3 0 4 7 0 8 8 , , 0 0 7 6 0 2 1 1 , ,8 8 6 67 6 1 1, , 8 8 6 6 5 5 4 5 , , 9 0 9 4 7 3 2 2 4 5 8 9 3 3 0 0 3 2 1969 3 1 15 5 , , 9 9 9 7 8 5 4 7 7 , , 0 0 7 7 4 4 1 1 , , 6 6 2 2 4 4 1 1 , , 9 8 1 8 1 8 4 4, , 5 5 5 5 2 2 5 5 4 4 6 6 2 29 9 1 1 1970 3 / 1 2 2 3 3 , , 7 7 8 7 6 5 1 1 3 3 , , 6 61 2 5 0 2 2 , , 9 9 5 5 1 1 1 1 , , 6 6 8 8 1 1 4 4 , , 7 7 1 0 3 8 4 4 0 0 7 7 4 4 1 1 4 3 1971 5 / 1 5 5 1 0 , , 2 6 0 5 9 1 3 3 0 0 . , 1 0 3 1 4 0 3 3 , , 9 9 8 8 0 0 1 1, , 4 4 2 1 9 4 1 1 4 3 , , 5 8 1 2 9 3 4 4 1 1 5 5 8 8 7 7 0 1 1972—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. 61,520 34,197 4,279 1,731 17,573 777 2,963 1973—Jan.. 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. 71,331 6 45,229 4,221 1,749 16,564 823 2,745 70,748 7 45,608 4,157 1,915 15,415 839 2,814 70,902 46,641 4,104 1,903 14,417 940 2,897 June.. 70,681 46,962 4,111 1,993 13,725 992 2,898 Julyf. 71,012 47.135 4,043 2,073 13,683 928 3,150 Aug.**. 70,388 47,145 3,836 2,004 13,631 738 3,034 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 nonthe first time; and U.S. Treasury liabilities payable in foreign currencies marketable notes issued to foreign official nonreserve agencies; and into 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 all foreigners To nonmonetary international and regional organizations 6 Payable in dollars IMF Dep osits End of period Total 1 Total Dem D an e d p os T its i me2 b T i c r c l e U l e a s r a t . t S s e i a u f s . i n r - 3 d y s O l t h i e a t o r h b r m e . t r 4 - P f r o a e c r n y i u e n a c r i i b g - e l n s e in m g v e e o n s ld t t - ^ Total Demand Time2 b T i c r l c e U l e s a r a . t t S s i e a u f . s i n r - d y s l O t i h e a t o r b h m r e . t 4 r - 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 41,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 58,884 58,429 6,631 4,867 33,745 13,186 455 1,322 65 267 172 818 58,684 58,206 6,927 4,939 32,714 13,626 478 1,233 79 224 145 785 60,136 59,598 7,071 5,146 33,071 14,310 538 1,281 63 210 204 804 60,653 60,111 7,011 5,378 32,774 14,948 543 1,511 95 241 380 794 60,736 60,239 8,288 5,628 31,850 14,473 496 1,412 86 201 326 800 59,173 58,648 7,452 5,532 30,134 15,530 526 1,379 118 171 279 811 64,234 63,722 7,786 5,594 36,538 13,803 513 1,417 133 143 303 838 65,883 65,335 7,606 5,610 37,966 14,153 548 1,425 114 133 279 899 65,196 64,612 8,118 5,652 36,459 14,382 584 1,428 119 111 240 957 66,747 66,175 8,374 5,700 35,965 16,136 572 1,589 147 118 148 1,177 66,713 66,083 9,111 5,824 34,951 16,197 631 1,602 155 133 189 1,125 67,905 67,298 8,987 5,873 34,556 17,882 607 1,518 206 114 116 1,081 67,217 66,606 8,431 6,149 34,258 17,768 611 1,547 178 114 61 1,193 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. • OCTOBER 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 institutions10 Payable in dollars Payable in dollars Payable Total Dema D nd ep osi T ts i me2 T b c i r c l e U e a l r s a t . t s S e i a u f s . n i 3 r - d y s O l t h i e a t o r h b r m e . t 4 r - f r o e c r n u i e n c r i i - g e n s Total Dema D nd ep osi T ts i me2 T bi c r c l U e e a ls r a t . t e S s a i s u . f n i r 3 - d y s O t l h i e t a o r h b r m e t .4 r - 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 /40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 140,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 J53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 153,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 57,563 6,566 4,600 33,573 12,368 455 40,611 1,308 2,412 33,499 3,220 57,451 6,848 4,716 32,569 12,841 478 39,633 1,239 2,459 32,497 3,268 58,855 7,008 4,935 32,867 13,506 538 40,266 1,335 2,569 32,794 3,398 59,143 6,915 5,137 32,394 14,154 543 40,045 1,271 2,643 32,315 3,645 59,323 8,203 5,427 31,523 13,674 496 39,994 1,589 2,876 31,453 3,905 57,794 7,333 5,361 29,855 14,720 526 38,535 1,405 2,875 29,779 4,304 62,817 7,653 5,450 36,235 12,965 513 45,413 1,756 2,841 36,147 4,497 64,459 7,492 5,477 37,687 13,254 548 46,924 1,543 2,832 37,620 4,757 63,768 7,999 5,541 36,219 13,425 584 45,949 1,714 2,916 36,137 4,996 65,157 8,227 5,583 35,817 14,959 572 46,099 1,723 2,933 35,736 5,520 65,112 8,956 5,691 34,762 15,072 631 45,693 1,940 3,115 34,684 5,767 66,387 8,781 5,758 34,440 16,801 607 46,122 1,934 3,183 34,360 6,456 65,670 8,253 6,035 34,196 16,575 611 45,599 1,575 3,363 34,118 6,415 To banksii To other foreigners TTTooo bbbaaannnkkksss Payable in dollars aaannnddd ooottthhheeerrr fffooorrreeeiiigggnnneeerrrsss::: End of period Total PPPaaayyyaaabbbllleee iiinnn Total Dema D nd ep osi T ts i me2 TT bb cc ii rr cc ll ee UU ee ll aa rr ss aa .. tt tt ss SS ee ii aa uu ff .. ss nn ii rr -- dd yy ss OO ll tt ii hh ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- Total Dema D nd ep osi T ts i me2 TT bb cc ii rr ll cc ee UU ee ll aa rr ss aa .. tt tt ss SS ii ee aa uu ff .. ss nn ii rr -- dd yy ss OO ll tt ii hh ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- fff rrr ooo eee ccc rrr nnn uuu eee ccc rrr iii --- iii ggg eee nnn sss 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 J21.166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 2?0 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 fl 3,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 16,951 12,626 3,555 336 6 8,729 4,040 1,702 1,852 67 419 284 17,818 13,269 3,833 348 5 9,084 4,241 1,776 1,909 68 489 308 18,589 13,805 3,798 434 3 9,570 4,417 1,875 1,933 70 538 368 19,097 14,404 3,938 481 5 9,981 4,322 1,706 2,014 75 528 372 19,329 14,477 4,659 525 5 9,287 4,527 1,954 2,026 65 481 325 19,260 14,438 4,155 415 7 9,861 4,467 1,773 2,070 69 555 355 17,405 12,467 4,084 483 5 7,895 4,596 1,813 2,127 83 573 341 17,535 12,576 4,144 518 5 7,909 4,583 1,805 2,127 63 588 376 17,820 12,672 4,335 514 7 7,817 4,750 1,951 2,112 75 611 398 19,059 13,911 4,645 535 8 8,723 4,763 1,859 2,115 73 716 385 19,419 14,038 5,053 404 8 8,573 4,937 1,963 2,172 70 732 444 20,265 14,966 4,957 432 8 9,568 4,881 1,890 2,143 72 776 418 20,071 14,603 4,803 490 11 9,299 4,984 1,875 2,182 67 861 483 1 Data exclude "holdings of dollars" of the IMF. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches, which were previously reported as deposits, are included in "Other." in "Other short-term liabilities"; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as "Official institutions" are included in "Banks"; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers' acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities to official time certificates of deposit. See also note 8(a). institutions of foreign countries revalued to reflect market exchange rates. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of i o Foreign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac- 11 Excludes central banks, which are included in "Official institutions." quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop- NOTE.—"Short term" refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the "holdings of dollars" IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti- 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop- 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 AArreeaa aanndd ccoouunnttrryy Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June July? Aug.* Europe: Austria 254 245 272 268 267 281 292 301 297 305 302 Belgium-Luxembourg 701 1,070 1,092 974 1,165 1,253 1,245 1,373 1,376 1,443 1,366 Denmark 168 254 284 321 364 400 406 502 489 477 437 160 157 163 152 158 142 168 244 194 165 153 3,150 4,630 4,441 4,434 4,483 5,000 5,167 5,327 5,406 5,452 5,246 6,596 5,514 5,346 5,034 10,494 12,990 12,701 12,161 12,003 12,837 12,912 170 190 238 210 224 223 175 219 219 240 236 Italy 1,887 1,354 1,338 1,085 1,041 968 1,020 1,171 1,072 870 1,506 270 1,442 1,468 1,356 1,762 2,532 2,543 2,427 2,369 2,029 1,945 Norway 685 960 978 973 995 1,018 1,035 1,046 1,049 1,082 1,055 Portugal 303 413 416 439 498 518 502 511 500 477 472 Spain 203 223 256 231 222 256 250 325 334 282 237 Sweden 792 1,081 1,184 1,189 1,403 1,483 1,682 1,787 1,905 1,951 1,871 Switzerland 3,249 2,838 2,857 2,924 2,845 2,901 2,959 3,272 3,268 3,310 3,245 Turkey 68 96 97 109 94 105 118 71 75 102 115 United Kingdom 7,379 5,430 5,011 5,510 4,546 4,657 4,741 5,899 6,317 6,457 5,815 Yugoslavia 34 98 117 82 78 58 69 73 66 66 57 Other Western Europe t 1,391 1,479 1,483 1,464 1,502 1,619 11,,777722 2,159 2,355 2,960 2,900 U.S.S.R 14 10 11 14 21 14 88 9 11 18 17 Other Eastern Europe 53 58 81 71 65 71 71 66 74 81 90 Total 27,529 27,541 27,134 26,840 32,227 36,488 36,924 38,944 39,378 40,603 39,976 3,441 3,799 3,484 3,889 3,325 3,290 3,618 3,816 3,306 3,380 3,789 Latin America: 441 547 631 631 689 687 694 730 727 750 800 Bahamas 2 656 576 539 290 261 198 226 496 440 769 564 Brazil 342 564 605 643 648 671 703 768 765 920 732 Chile 191 135 137 132 136 143 140 138 140 134 126 188 185 210 210 218 184 197 218 200 200 168 Cuba 6 6 6 7 7 6 7 7 10 7 7 715 659 831 783 800 788 853 843 925 919 975 154 150 167 193 201 171 168 192 186 194 217 Peru 164 183 225 176 167 172 167 170 180 190 177 108 133 140 140 138 132 143 150 180 128 126 Venezuela 963 926 1,077 995 1,051 948 1,044 967 1,054 1,066 1,078 Other Latin American republics 655 751 860 839 827 804 818 778 780 744 790 Netherlands Antilles and Surinam 87 89 86 81 84 76 72 64 68 78 61 Other Latin America 37 57 44 235 237 216 243 264 648 408 403 Total 4,708 4,961 5,558 5,354 5,461 5,196 5,477 5,785 6,303 6,505 6,225 Asia: China, People's Rep. of (China Mainland) 39 39 39 39 37 49 43 44 41 38 43 China, Republic of (Taiwan) 258 639 675 737 783 816 831 830 843 788 811 Hong Kong 312 310 318 336 319 337 330 368 341 289 356 89 107 98 115 134 114 125 145 110 141 103 Indonesia 63 107 108 101 96 89 90 117 155 176 140 Israel 150 141 177 139 146 137 144 142 161 159 146 14,295 16,152 15,843 14,570 14,733 12,344 10,415 9,056 8,458 8,126 8,002 Korea 196 201 192 224 210 227 214 231 226 219 217 306 394 438 446 453 513 520 583 558 559 541 Thailand 126 128 171 211 187 170 166 177 175 146 140 Other 595 965 1,071 951 897 869 940 872 883 958 1,139 Total 16,429 19,182 19,131 17,868 17,995 15,665 13,818 12,565 11,951 11,600 11,638 Africa: Egypt 24 24 24 21 28 17 33 67 29 29 41 Morocco 9 11 12 9 8 13 9 8 11 15 10 South Africa 78 83 115 111 104 125 125 120 155 169 100 Zaire 12 17 21 18 23 22 28 45 17 21 27 Other 474 678 768 573 728 739 798 786 904 803 683 Total 597 814 939 733 891 917 992 1,025 1,118 1,037 862 Other countries: Australia 916 2,801 3,027 3,046 2,861 2,849 2,882 2,961 2,985 3,202 3,124 All other 42 46 51 65 57 54 57 60 71 61 57 Total 957 2,846 3,077 3,111 2,918 2,903 2,939 3,022 3,056 3,263 3,181 Total foreign countries 53,661 59,143 59,323 57,794 62,817 64,459 63,768 65,157 65,112 66,387 65,670 International and regional: International3 1,327 1,030 951 930 957 979 982 1,144 1,190 1,137 1,185 Latin American regional 298 316 307 301 318 320 337 337 321 301 289 Other regional4 142 165 155 148 142 126 109 108 89 81 72 Total 1,767 1,511 1,412 1,379 1,417 1,425 1,428 1,589 1,602 1,518 1,547 Grand total 55,428 60,653 60,736 59,173 64,234 65,883 65,196 66,747 66,713 67,905 67,217 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. • OCTOBER 1973 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1971 1972 1973 1971 1972 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus 7 2 2 3 9 Kuwait 36 20 16 Iceland 10 11 9 9 12 Laos 2 3 3 Ireland, Rep. of 29 16 15 17 22 Lebanon 60 46 60 Malaysia 28 23 25 Other Latin American republics: Pakistan 28 33 58 Bolivia 59 55 53 87 65 Ryukyu Islands (incl. Okinawa)6 39 29 53 Costa Rica 43 62 70 92 75 Saudi Arabia 41 79 80 Dominican Republic 90 123 91 114 104 Singapore 43 35 45 Ecuador 72 57 62 121 109 Sri Lanka (Ceylon) 4 4 6 El Salvador 80 78 83 76 86 Syria 3 4 6 Guatemala 97 117 123 132 127 Vietnam 161 159 185 Haiti 19 18 23 27 25 Honduras 44 42 50 58 64 Jamaica 19 19 32 41 32 Other Africa: Nicaragua 47 50 66 61 79 Algeria 13 23 31 Paraguay 15 17 17 22 26 Ethiopia (incl. Eritrea) 12 11 29 Trinidad & Tobago 14 10 15 20 17 Ghana 6 8 11 Kenya 13 9 14 Other Latin America: Liberia 21 23 25 Bermuda (2) (2) (2) (2) 127 Libya 91 274 296 British West Indies 38 32 23 36 100 Nigeria 25 46 56 Southern Rhodesia 2 2 2 Other Asia: Sudan 1 1 5 Afghanistan 15 19 17 25 19 Tanzania 10 6 6 Bahrain 35 21 18 24 (7) Tunisia 6 9 7 Burma 3 10 5 2 Uganda 5 3 10 Cambodia 2 5 2 3 Zambia 14 13 7 Iran 67 59 88 93 114 Iraq 7 10 9 10 (7) All other: Jordan 3 2 2 4 4 New Zealand 22 23 27 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 TToo iinnttll.. EEnndd ooff ppeerriioodd TToottaall aanndd Official Other Ger- United Other Total Other All rreeggiioonnaall Total institu- Banks1 foreign- many King- Europe Latin Japan Asia other tions ers dom America countries 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—Aug 1,093 650 443 88 269 86 165 68 34 135 • 24 17 Sept 1,067 612 455 99 269 87 167 68 35 135 * 33 17 Oct 1,068 615 453 97 269 87 165 68 37 135 * 32 16 Nov 1,051 600 450 94 269 88 165 68 37 134 1 32 14 Dec 1,000 562 439 93 259 87 165 63 32 136 1 32 10 1973—Jan 1,026 599 427 74 257 96 165 61 30 127 1 30 13 Feb 1,259 596 663 304 258 100 164 59 233 118 1 71 16 Mar 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 June 1,453 756 697 311 274 113 164 68 233 125 2 94 10 July? 1,484 756 727 311 275 141 164 68 235 145 2 93 19 Aug.? 1,498 784 715 312 275 127 165 68 235 133 2 95 17 i Excludes central banks, which are included with "Official institutions." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July? Aug.p Europe: Belgium-Luxembourg 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden 17 15 35 85 85 110 135 135 135 135 135 135 135 45 45 45 45 45 45 44 43 44 43 43 42 37 280 293 308 326 327 327 276 278 300 281 280 275 236 Other Western Europe 79 79 79 79 79 79 79 79 79 85 85 85 85 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 432 443 478 545 547 572 544 546 569 555 554 547 504 372 432 479 559 558 558 559 561 561 560 560 560 560 Latin America: Latin American republics 1 1 1 1 1 1 1 1 1 1 1 1 5 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 11 Asia: 3,310 3,481 3,756 4,003 4,380 4,867 5,421 5,961 5,978 5,978 5,977 5,977 5,949 Other Asia 10 10 10 10 10 10 10 10 10 10 10 9 9 Total 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5,987 5,959 127 133 133 133 133 183 183 183 183 183 183 183 183 * * * * 25 25 25 25 25 25 25 25 25 Total foreign countries 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7,317 7,308 7,241 International and regional: International 176 186 186 186 186 186 176 186 176 142 72 1 1 Latin American regional 27 27 27 28 28 28 26 26 27 27 27 28 45 Total 203 213 213 214 214 214 202 212 202 169 100 29 46 Grand total 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7,337 7,287 NOTE.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total China, Total g B iu e m l- a C d a a n - i ( R Ta ep iw . a o n f ) m G a e n r- y Italy 2 Korea T la h n a d i- Total m G an er y - 3 Italy e S r w la it n z d - 196 9 43,181 1,431 32 1,129 20 135 100 4 1,750 4 1,084 125 541 197 0 3,563 2,480 32 2,289 20 25 100 1,083 542 541 197 1 5 9,657 7,829 32 2,640 20 5,000 22 100 5 1,827 612 1,215 1972—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 Sept. 15,813 14,183 2,490 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. • OCTOBER 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. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyf Aug.f Europe: Austria 11 10 8 7 13 9 9 9 12 10 18 Belgium-Luxembourg 57 84 120 67 124 100 87 73 94 96 107 Denmark 49 57 59 58 59 60 63 69 69 56 67 Finland 135 123 118 127 122 131 134 140 141 134 125 France 263 272 330 275 312 424 451 447 389 434 368 Germany 235 296 321 267 414 371 345 356 397 349 281 Greece 30 27 29 34 23 29 32 19 19 28 20 Italy 160 170 255 221 271 269 288 327 326 278 278 Netherlands 105 101 108 93 152 118 129 115 109 101 155 Norway 67 62 69 62 63 70 66 67 65 79 70 Portugal 12 21 19 21 26 20 30 17 19 18 14 Spain 70 215 207 210 236 282 238 360 387 272 251 Sweden 118 123 156 176 249 235 238 259 234 224 184 Switzerland 145 150 125 187 206 152 186 190 245 208 206 Turkey 3 4 6 5 6 5 5 6 9 7 6 United Kingdom 559 723 849 672 1,001 847 795 876 893 1,006 1,288 Yugoslavia 19 16 22 18 20 18 20 13 12 12 10 Other Western Europe 12 19 20 23 26 22 29 21 29 20 21 U.S.S.R 28 32 41 44 55 54 61 50 56 56 42 Other Eastern Europe 37 38 49 47 51 52 60 69 73 84 84 Total 2,114 2,545 2,911 2,613 3,431 3,269 3,265 3,483 3,575 3,472 3,596 Canada. 1,627 1,695 1,897 1,939 2,372 2,461 2,286 2,379 2,022 2,164 2,183 Latin America: Argentina 305 357 379 389 417 406 396 408 408 431 442 Bahamas i 262 403 476 413 521 461 505 409 399 495 438 Brazil 435 631 649 641 727 740 759 851 891 965 915 Chile 139 53 52 53 49 51 45 40 43 36 50 Colombia 380 396 418 408 412 380 401 397 411 420 422 Cuba 13 15 13 12 13 13 13 13 14 13 13 Mexico 934 1,168 1,202 1,202 1,213 1,320 1,343 1,343 1,399 1,376 1,338 Panama 125 177 244 219 220 212 183 190 218 223 262 Peru 176 147 145 129 136 132 143 147 169 180 176 Uruguay 41 38 40 40 38 40 36 31 34 34 35 Venezuela 268 386 383 388 385 404 401 440 454 454 441 Other Latin American republics 374 368 388 393 379 369 382 383 380 373 394 Netherlands Antilles and Surinam 18 13 14 15 15 20 27 35 38 48 38 Other Latin America 26 33 36 56 70 103 85 74 66 71 89 Total 3,494 4,187 4,437 4,359 4,592 4,649 4,717 4,761 4,924 5,119 5,054 Asia: China, People's Rep. of (China Mainland) 11 I 2 2 2 2 5 3 7 6 China, Republic of (Taiwan) 110099 220011 194 205 211 231 238 216 200 198 183 Hong Kong 70 76 93 84 103 111 122 132 204 218 116 India 21 17 14 15 15 16 14 19 21 18 17 Indonesia 41 74 87 87 103 127 127 97 94 91 77 Israel 129 105 105 126 106 141 126 116 111 133 133 Japan 4,280 3,998 4,158 4,081 5,277 5,568 5,663 5,536 5,756 5,753 5,791 Korea 348 317 296 271 288 301 331 338 347 348 336 Philippines 138 160 149 148 150 140 150 139 144 134 129 Thailand 172 183 191 184 195 205 197 194 173 188 185 Other 252 260 300 288 335 274 296 324 354 352 350 Total 5,560 5,393 5,589 5,490 6,786 7,116 7,267 7,116 7,407 7,441 7,321 Africa: Egypt 10 16 21 22 20 20 22 25 34 44 41 Morocco 4 4 4 6 5 7 5 4 4 5 5 South Africa 156 145 143 150 155 155 151 166 163 150 151 Zaire 21 10 13 15 13 11 13 13 42 43 49 Other 96 112 124 116 113 133 137 136 145 149 173 Total 288 286 304 309 305 325 327 343 388 391 419 Other countries: Australia 158 271 291 272 256 244 249 232 260 271 230 All other 28 36 40 50 44 47 50 47 46 40 41 Total 186 308 330 322 300 291 299 280 305 310 271 Total foreign countries 13,269 14,413 15,468 15,032 17,787 18,111 18,161 18,362 18,622 18,897 18,845 International and regional 3 6 3 3 3 1 2 2 1 2 1 Grand total 13,272 14,419 15,471 15,035 17,789 18,113 18,163 18,364 18,623 18,899 18,846 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

OCTOBER 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 TToottaall Total Total O in t f i s f o t L i i n c t o i s u a a - l n s t B o a — nk si Others C s t t o o i i a o n u l n l n g t e d - s c - - f A e o o a m i c f r g n c n a f a c e o d e c e p r r c e s t - s t - . Other Total w D e i i e t g h p n o e f s r o i s t r s - gg cc FF aa uu oo n p n p cc oo nn vv oo rr aa aa rr dd ii tt mm pp nn ee tt ,, ii ii ee cc ff ee ll gg ss rr ee ii .. ee ss nn -- ,, -- Other 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 /13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 {13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 14,361 13,415 4,978 152 2,710 2,116 2,805 3,082 2,551 946 482 338 126 13,930 13,042 4,980 143 2,572 2,265 2,882 2,967 2,213 888 431 330 127 13,845 13,069 5,138 146 2,666 2,326 2,987 2,953 1,991 776 408 209 159 14,419 13,649 5,306 157 2,700 2,448 3,130 3,129 2,085 770 412 219 139 15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 15,035 14,210 5,429 143 2,814 2,472 3,234 3,103 2,443 825 443 253 128 17,789 16,718 6,453 162 3,675 2,616 3,555 3,282 3,429 1,071 596 313 162 18,113 17,162 6,538 141 3,694 2,703 3,697 3,463 3,464 951 524 262 165 18,163 17,344 6,847 146 3,944 2,757 3,781 3,463 3,253 819 460 207 152 18,364 17,511 6,935 163 3,824 2,947 3,789 3,600 3,186 854 499 237 118 18.623 17,772 7,288 205 4,044 3,039 3,901 3,963 2,619 852 565 140 147 18^899 18,036 7,027 162 3,928 2,937 3,831 3,897 3,282 862 561 151 151 18,846 17,960 6,975 177 4,034 2,764 3,967 3,694 3,323 886 488 151 247 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 Payable Total Loans to— in United O lo t n h g e - r c fo u r r e r i e g n n - K d i o n m g- E O u t r h o e p r e Canada Am La e t r i i n c a Japan O A t s h i e a r Official Other term cies Total institu- Banksi foreign- claims tions ers 3,250 2,806 502 209 2,096 426 67 411 408 1,329 568 3,075 2,698 504 236 1,958 352 71 411 312 1,325 115 548 3,667 3,345 575 315 2,455 300 130 593 228 1,458 246 583 4,394 4,079 771 398 2,910 281 141 671 279 1,793 288 773 4,542 4,227 796 402 3,030 282 128 687 291 1,866 289 802 4,649 4,323 796 412 3,114 292 139 658 340 1,897 305 828 4,702 4,378 819 432 3,127 291 143 658 360 1,880 305 863 (4,954 4,539 833 430 3,276 375 145 704 406 1,996 319 881 \5,020 4,544 833 430 3,282 436 145 709 406 2,006 348 898 5,022 4,541 835 440 3,266 440 144 732 403 1,967 353 915 5,131 4,630 840 470 3,319 449 135 771 434 1,986 342 928 5,276 4,769 897 480 3,392 460 121 859 453 1,978 336 985 5,419 4,923 931 514 3,477 448 122 912 477 2,000 337 1,028 5,522 5,019 932 545 3,541 456 131 931 511 2,001 331 1,059 5,606 5,097 978 550 3,568 464 131 980 523 2,004 311 1,096 5,626 5,116 957 554 3,605 456 128 1,029 517 1,984 310 1,122 5,521 5,008 1,002 514 3,492 466 137 1,006 404 1,964 304 1,158 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. • OCTOBER 1973 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes * securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign ch P a u s r e - s Sales c N h s a e a t s l e p e s s u o r r - c P ha u s r e - s Sales c N h s a e a t s l e p e s s u o r r - ch P a u s r e - s Sales c N h e s a t a s l e e p s s u o r r regional Total Official Other 197 0 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 197 1 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 197 2 3,316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 409 1973—Jan.-Aug.* 1,413 -168 1,581 1,669 -89 12,356 8,008 4,348 1,052 1,490 -438 1,171 996 175 1972—Au g 413 40 373 365 9 1,502 1,223 279 129 98 30 242 179 63 Sept 258 10 247 237 11 1,165 843 322 173 163 11 173 142 32 Oct 356 356 340 17 1,353 1,045 309 154 207 -53 188 119 69 D N e o c v 4 3 0 9 4 5 4 3 0 9 4 5 4 3 0 7 3 7 1 1 8 2 1 , , 0 9 1 2 4 7 1 1 , , 3 2 7 9 5 5 6 63 3 9 2 2 1 4 3 3 6 4 1 6 7 5 1 -2 -3 2 5 2 2 1 3 9 3 2 1 1 7 1 8 0 8 5 2 5 1973—Ja n 562 562 562 1,874 1,125 750 191 323 -132 161 158 4 Feb 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. 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 June -71 -69 1,097 899 198 125 103 22 123 111 12 July* -79 -71 -9 -9 1,320 847 473 94 194 -99 107 107 * Aug.* -51 17 -68 -28 -39 1,343 819 524 96 157 -61 117 125 -8 t Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, NOTE.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y - N l e a t n h d e s r - Sw la it n z d e r- K U in n g i d te o d m E O u t r h o e p r e E T u o r t o a p l e Canada A L m a e t r in ic a Asia co O un th tr e r I e n g t i l o . n & al 1970 626 58 195 128 110 -33 24 482 -9 47 85 22 1971 731 87 131 219 168 -49 71 627 -93 37 108 54 1972 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 86 1973—Jan.-Aug.* 2,110 234 -34 230 664 256 229 1,580 152 -31 375 36 1972—Aug 252 60 -13 8 68 101 26 249 9 -16 4 6 Sept 166 36 -7 15 51 56 12 163 -12 1 11 3 Oct 159 65 6 24 83 -89 19 109 8 2 29 12 Nov 490 85 44 55 61 150 53 449 13 25 -8 12 Dec 350 48 -3 42 59 132 19 297 -1 8 42 4 1973—Jan 490 32 29 47 144 118 22 392 25 -20 85 7 Feb 461 25 4 67 152 89 46 383 37 -10 46 4 Mar 350 35 8 47 148 21 29 288 25 5 21 10 Apr 139 21 9 -8 53 -16 46 105 34 -10 5 4 May -121 -2 -43 — 14 -22 -39 3 -117 -7 -16 11 11 June 134 2 -23 7 52 15 21 74 8 -2 55 -2 July* 316 67 -19 25 80 28 28 210 19 11 71 5 Aug.* 341 53 1 60 57 40 34 245 10 11 81 -3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r- y N la et n h d e s r - Sw la it n z d e r- K U in n g i d te o d m E O u t r h o e p r e E T u o r t o a p l e Canada Am La e t r i i n c a Asia Africa co O u t n h t e r r ie s I r n e t g l. i on an al d 1970. 956 35 48 37 134 118 91 464 128 25 28 1 324 1971. 684 15 35 -1 197 327 39 612 37 19 -2 * 39 1972. 1,871 336 77 74 135 357 315 1,293 82 22 323 2 148 —Jan .-Aug. p 2,239 133 46 -22 194 165 424 939 68 23 968 * 230 —Aug 27 6 4 6 17 -16 45 62 9 -1 -1 1 -44 Sept 156 7 4 3 16 24 80 134 10 * * * 12 O N c o t v 1 14 5 2 0 36 2 3 7 0 27 1 — 35 l 4 3 6 4 4 5 2 4 1 14 6 7 8 -6 5 3 1 2 1 * « -28 * Dec 289 56 30 * 14 49 60 210 8 3 29 1 38 —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 Mar 759 45 3 -22 -7 -3 158 174 * 4 623 * -42 385 33 2 * 65 -96 94 98 16 4 199 * 68 May 161 1 -4 -1 76 120 22 215 7 1 2 * -63 June 64 6 -3 * -3 -9 -2 -10 7 -1 * * 59 July? 158 * -2 * 9 -15 7 -1 3 3 1 * 150 Aug.35 183 31 46 1 -5 72 10 154 " -1 4 2 * 24 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 ppeerriioodd (due to (due from gional tries foreigners) foreigners) 1970 -915 -254 -662 50 -586 -11 -129 -6 20 334 182 1971 -992 -310 -682 31 -275 -46 -366 -57 32 291 203 1972 -651 -90 -561 492 -651 -69 -296 -66 29 349 281 1973—Jan.- 511 314 Aug.p.. -263 72 -335 4 -337 -69 3355 * 31 419 300 333 320 1972—Aug.... 93 _1 94 50 49 -1 -5 * 2 311 314 Sept.... 42 6 36 47 3 9 -24 * 1 Oct .... 16 16 * 46 -73 2 23 * 2 1972—Mar 325 379 Nov 47 11 36 39 -4 8 -8 * * 312 339 Dec -167 9 -176 7 -158 -26 -2 2 1 286 336 372 405 1973—Jan -129 9 -138 8 -67 -70 -9 * * Feb.. . . 49 -2 51 -3 41 -16 29 * * 310 364 Mar 116 23 93 24 34 8 27 * 1 315 242 Apr.. .. -166 16 -182 22 -193 -6 -5 * * May.. . -1 11 -10 -22 -13 6 6 — 1 14 June. . . 34 7 27 10 6 13 -13 1 9 NOTE.—Data represent the money credit balances and July .. -99 3 -102 -14 -100 * 9 * 2 money debit balances appearing on the books of reporting Aug.f.. -69 5 -75 -21 -44 -4 -8 * 3 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by f oreigners. 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 $15,439 million and $15,765 million, respectively, on July 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. • OCTOBER 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- Parent branches Other cial bank Total bank Other Total of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies 1970—De c 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 1971—De c 61,334 4.798 2,311 2,486 54,752 11,21 24,550 1,167 1972—Jul y 69,963 4,058 1,514 2,544 63,941 11,622 30,419 1,407 Aug 72,856 4,504 1,759 2,745 66,268 11,655 31,821 1,566 Sept 74,906 4,952 2,243 2,709 67,607 11,335 33,395 1,539 Oct 74,796 4,967 2,239 2,728 67,599 11,343 33,098 1,549 Nov 76,241 4,456 1,824 2,632 69,425 11,350 34,203 1,577 Dec 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 1973—Ja n 81,200 4,926 2,327 2,600 74,007 11,946 36,797 1,621 Feb 87,989 4,327 1,565 2,762 81,106 12,273 42,206 1,747 Mar 91,646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 Apr 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 May r 92,994 4,218 1,926 2,292 85,577 13,490 42,746 2,004 June 98,756 4,955 2,333 2,622 90,207 13.528 46,277 1.900 July 103,667 5,403 2,505 2,898 94,460 15,298 47,454 2,035 Payable in U.S. dollars. 1970—De c 34,619 9,452 7,233 2,219 24.642 4,213 13,265 362 1971—De c 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 1972—Jul y 45,034 3,811 1,488 2,324 40,523 7,260 21,666 984 Aug 47,175 4,263 1,741 2,523 42,184 7,320 22,717 1,063 Sept 48,704 4,685 2,222 2.463 43,141 7.048 23,840 1,105 Oct 48,986 4,669 2,216 2,453 43,556 7,391 23,555 1,084 Nov 49,631 4,173 1,803 2,371 44,664 7,439 24,123 1,083 Dec 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 1973—Ja n 54,197 4,592 2,303 2,289 48,829 8,094 26,764 1,063 Feb 57,633 3.987 1,534 2,452 52,718 8,551 29,831 1,097 Mar 58.745 3.988 1,957 2,031 53,752 8,438 30,568 1,124 Apr 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 May r 58,019 3,930 1,899 2.031 52,871 8,548 28,677 1,140 June 61,843 4,602 2,285 2,317 55,885 8,493 31,261 1,129 July 64,034 4.799 2,469 2,330 57,757 9,211 31,715 1,220 IN UNITED KINGDOM Total, all currencies 1970—De c 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 1971—De c 34,552 2,694 1,230 1.464 30,996 5,690 16,211 476 1972—Jul y 39,463 1,876 810 1,066 36,741 5,742 20,946 546 Aug 40,596 2,117 1,078 1,039 37,538 5,688 21,411 595 Sept 42,053 2,350 1,253 1,097 38,606 5,651 22,559 650 Oct 41,649 2,409 1,386 1,023 38,201 5,751 22,157 630 Nov 41,600 1,939 907 1.032 38.643 5,490 22,671 584 Dec 43,684 2,234 1,138 1.096 40,430 5,659 23,983 609 1973—Ja n 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 Feb 48,533 1,945 848 1.097 45,487 5,887 28,473 585 Mar 49,696 2,052 1,130 922 46.520 5,783 29,148 663 Apr 49,181 1,662 794 868 46,332 5,437 29,255 651 May 49,080 1,744 910 834 46.001 5,725 28,394 614 June 51,415 1,876 1,012 864 48,031 5,279 30,348 607 July 54.203 2,500 1,492 1,008 50,129 6,274 30,769 649 Payable in U.S. dollars. 1970—De c 22,574 6,596 15,655 2,223 9,420 1971—De c 24,428 2,585 21.493 4,135 12,762 1972—Jul y 26,680 1,791 24.494 4,097 15,589 Aug 27,185 2,036 24,734 4,013 15,768 Sept 28.204 2,264 25,463 4,004 16,609 Oct 27,978 2,307 25,244 4,169 16,249 Nov 27,865 1,846 25,579 4.049 16,399 Dec 30,381 2,146 27,787 4,326 17,976 1973—Ja n 30.652 2,468 27,778 4,184 18,069 Feb 32.746 1,814 30,423 4,568 20,219 Mar 32,658 1,953 30,183 4,324 20,033 Apr 31,833 1,539 29,778 4,034 20,119 May 30,906 1,654 28,666 3,943 18,848 June 32,864 1,784 30,386 3,900 20,413 July 33,437 2,193 30.521 4,042 20,164 IN THE BAHAMAS Total, all currencies. 1970—De c 4,815 1,173 455 717 3,583 2,119 1971—De c 8,493 1,282 505 778 7,119 3,798 1972—Jul y 10.329 1,409 110 1,298 8,786 4,924 Aug 11,515 1,530 118 1,413 9,846 5,682 Sept 11,914 1,612 221 1,391 10,150 5,929 Oct 12,017 1,739 251 1,489 10,120 5,836 Nov 12.330 1,586 221 1,365 10,577 6,209 Dec 13,091 1,496 225 1,272 11,419 6,965 1973—Ja n 13,065 1,387 182 1,206 11,496 6,754 Feb 13,559 1,461 83 1,378 11,860 7,189 Mar 13,764 1,211 90 1,121 12,283 7,520 Apr 13.653 1,407 293 1,113 11,988 6,726 May r 14,730 1,498 272 1,227 12, r~ 7,242 June 16,184 1,917 410 1,507 14.002 8,206 July 117,086 1,929 350 1,579 14,862 8,802 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. TToo foreigners Total Other Offi- Non- Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES 47,354 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 .. 1970—Dec. ... Total, all currencies 61,336 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 .1971—Dec. 69,963 3,212 736 2,476 64,712 11,283 35.860 7,176 10,393 2,039 . 1972—July 72,855 3,263 680 2,583 67,392 11,510 37.327 7,841 10,714 2,200 Aug. 74,905 3,303 728 2,575 69,340 11,123 39.328 8,208 10,680 2,263 Sept. 74,795 3,255 716 2,539 69,198 11,204 38,470 8,236 11,287 2,342 Oct. 76,239 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 Nov. 80,035 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 Dec. 81,200 3,414 836 2,578 75,273 11,746 42,260 9,236 12,032 2,513 . 1973—Jan. 87,989 3,967 1,132 2,835 80,886 11,901 46,373 9,388 13,224 3,136 Feb. 91,646 4,137 1,218 2,919 84,066 12,219 48,520 9,454 13,873 3,443 Mar. 90,987 4,095 1,044 3,051 83,345 12,638 47,874 9,538 13,294 3,547 Apr. 92,994 4,548 1,122 3,426 84,655 13,284 48,536 9,331 13,505 3,792 May 98,756 4,578 1,009 3,569 90,133 13,315 53,388 9,593 13,837 4,044 June 103,667 4,484 1,211 3,273 94,825 15,026 55,608 9,676 14,515 4,358 July 36,086 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 .1970—Dec. .Payable in U.S. dollars 42,033 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 .1971—Dec. 47,460 2,754 611 2,143 43,634 7,507 24,766 5,777 5,584 1,072 . 1972—July 49,436 2,800 549 2,252 45,463 7,660 25.861 6,252 5,690 1,173 Aug. 51,092 2,833 605 2,227 47,055 7,401 27,133 6,490 6,031 1,204 Sept. 51,326 2,789 582 2,207 47,305 7,706 26,770 6,567 6,262 1,232 Oct. 52,139 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 Nov. 56,375 3,104 848 2,256 51,811 8,178 30,253 6,913 6,467 1,459 Dec. 56,405 2,995 693 2,302 52,114 8,400 29,234 7,680 6,800 1,297 . 1973—Jan. 60,890 3,466 954 2,511 55,815 8,783 32,024 7,809 7,200 1,609 Feb. 62,430 3,613 1,038 2,575 57,127 8,735 33,131 7,771 7.489 1,691 Mar. 60,915 3,562 886 2,676 55,604 8,657 31,970 7,743 7,234 1,750 Apr. 61,427 4,005 955 3,050 55,636 8,810 32,275 7,361 7,190 1,786 May1 64,660 4,035 868 3,167 58,781 8,774 35,470 7,354 7,183 1,844 June 66,224 3,886 1,045 2,841 60,381 9,611 36,187 7,092 7.490 1,957 July IN UNITED KINGDOM 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4.548 592 .1970—Dec. .. .Total, all currencies 34,552 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 .1971—Dec. 39,463 1.497 150 1,347 37,075 3,464 21,720 5,565 6,326 892 . 1972—July 40,596 1.498 153 1,345 38,165 3,423 22,236 6,007 6,499 933 Aug. 42,053 1,497 137 1,360 39,517 3,139 23,739 6,272 6,367 1,039 Sept. 41,649 1,465 136 1,329 39,225 3,060 23,001 6,309 6,854 959 Oct. 41,600 1,481 132 1,349 39,149 2,928 22,769 6,340 7,112 969 Nov. 43,684 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 Dec. 44,347 1,501 107 1,394 41,933 3,277 23,959 7,285 7,412 913 . 1973—Jan. 48,533 1,844 264 1,580 45,628 3,157 27,038 7,517 7,915 1,062 Feb. 49,696 1,858 235 1,624 46,750 3,164 28,119 7,388 8,078 1,088 Mar. 49,181 1,970 165 1,805 46,075 3,397 27,796 7,509 7,373 1,136 Apr. 49,080 2,028 170 1,857 45,792 3,614 27,168 7,324 7,685 1,260 May 51,415 1,957 122 1,835 48,145 3,321 29,332 7,585 7,907 1,313 June 54,203 1,868 163 1,705 50,918 3,883 30,978 7,817 8,241 1,417 July 23,005 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 .1970—Dec. .Payable in U.S. dollars 24,845 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 . 1971—Dec. 27,130 1,294 103 1,190 25,393 2,197 15,000 4,641 3,554 444 . 1972—July 27,625 1,271 100 1,171 25,887 2,140 15,217 4,981 3.549 467 Aug. 28,589 1.269 86 1,184 26,788 1,926 15,959 5,117 3,787 531 Sept. 28,477 1,245 80 1,165 26,759 1,942 15,597 5,216 4,004 473 Oct. 28,558 1.270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 Nov. 30,933 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 Dec. 30,926 1,335 72 1,264 29,091 2,234 16,205 6,162 4,490 500 . 1973—Jan. 33,966 1,661 226 1,436 31,714 2,188 18,360 6,394 4,771 591 Feb. 33,929 1,676 195 1,481 31,655 2,128 18,334 6,251 4,942 598 Mar. 33,050 1,735 119 1,616 30,782 2,318 17,672 6,245 4,546 533 Apr. 32,148 1,809 138 1,671 29,730 2,225 16,982 5,897 4,626 608 May 33,584 1,731 102 1,629 31,278 2,234 18,390 5,990 4,663 575 June 33,851 1,655 148 1,507 31,603 2,316 18,683 5,868 4,736 594 July IN THE BAHAMAS 4,815 542 4,183 488 2,872 823 90 ,.1970—Dec. .Total, all currencies 8,495 750 7,557 1,649 4,784 1,124 188 .1971—Dec. 10,329 1,043 9,126 1,633 6,169 1,323 160 1972—.July 11,515 1,121 10,238 1,885 6,898 1,455 156 Aug. 11,913 1,137 10,620 1,935 7,192 1,493 156 Sept. 12,017 1,053 10,793 1,928 7,415 1,450 171 Oct. 12,329 934 11,230 1,982 7,862 1,386 166 Nov. 13,091 1,220 11,703 1,964 8,395 1,344 168 Dec. 13,065 1,137 11,761 1,875 8,503 1,383 167 . 1973—Jan. 13,559 1,186 12,144 2,223 8,394 1,527 230 Feb. 13,765 1,303 12,195 1,855 8,803 1,537 267 Mar. 13,653 1,126 12,138 1,977 8,505 1,656 389 Apr. 14,730 1,404 12,981 2,238 9,259 1,483 345 May' 16,184 1,480 14,370 2,579 10,410 1,381 334 June 117,086 1,374 15,381 3,002 10,762 1,616 331 July For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1973 22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 23. MATURITY OF EURO-DOLLAR AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. DEPOSITS IN FOREIGN GOVERNMENT SECURITIES BRANCHES OF U.S. BANKS (Amounts outstanding; in millions of dollars) (End of month; in billions of dollars) Wednesday L t i i a e b s i 1 l i- L s p e i l a c u b . s 2 . Wednesday L t i i a e b s i 1 l i- Wednesday L t i i a e b s i 1 l i- M l a i t a u b r i i l t i y ty of 1973 May June July 1968 1972 1973 1.87 2.57 3.19 J S D M u e e a p n c r e t . . . 2 2 3 2 5 6 1 7 (1/1/69) 6 7 6 4 , , , , 0 1 2 9 3 0 0 2 9 4 0 2 J M F a e a n b r . . . 2 2 2 9 3 6 . . . . . . . . . 1 1 1 , , , 5 4 0 3 1 6 2 9 8 Apr. 2 1 1 5 4 8 1 . . . . . . . . . . . . 1 1 1 1 , , , , 0 2 1 1 1 0 9 2 1 3 3 3 C O a t i m h l n l e o r n f l o t i h a ll b s o i w lit i a i n e f g t s e , r m ca a l r t e u e n p r d o in a r g r t 3.25 3.04 3.16 Apr. 26... 1,374 date: May 31... 1,465 May 2... 1,238 12.63 15.47 13.38 June 28... 1,443 9... 1,073 8.01 7.61 8.14 1969 16... 1,721 3rd 6.08 6.55 7.49 July 26. .. 1,345 23... 1,492 4th 3.60 3.96 4.20 Mar. 26 9,621 Aug. 30... 1,270 30... 1,351 5th 3.55 3.67 3.45 S J D u e e p n c t e . . 2 2 3 4 5 1 1 1 12 3 4 , , , 8 2 3 0 6 4 5 9 9 S O N D e e o c p t c v . t . . . 2 2 2 2 9 7 7 5 . . . . . . . . . . . . 2 1 1 1 , , , , 0 7 4 4 2 4 1 0 3 5 5 6 June 2 2 1 0 7 6 3 . . . . . . . . . . . . 1 1 1 , , , 5 2 2 9 2 6 4 4 1 6 2 0 1 6 9 8 0 t t t t h h h h 3. . . . . 5 4 7 8 8 7 5 7 6 3 3. . . . . 0 5 8 9 5 8 4 2 6 4 3. . . . . 5 9 3 7 8 5 8 8 2 9 1970 1973 July 11 3 . . . . . . 1 1 , ,7 6 6 6 6 4 1 12 1 t t h h . . 5 3 3 5 . . 3 3 6 2 . .7 3 6 4 J M u a n r e . 2 2 5 4 1 1 2 1, , 8 1 8 7 5 2 Jan. 31... 1,413 2 1 5 8 . . . . . . 2 2 , , 0 1 8 4 6 6 Maturities of more than 1 1.73 1.92 1.88 Sept. 30 9,663 Feb. 7... 1,391 Aug. 1... 2,226 Dec. 30 7,676 14. 694 8... 2,276 48.08 51.27 52.50 21. 1,157 15... 1,900 1971 28. 790 22... 2,440 29... 2,793 NOTE.—Includes interest-bearing U.S. dollar Mar. 31 2,858 4,358 Mar. 7. 1,465 deposits and direct borrowings of all branches in June 30 1,492 4,500 14. 1,419 Sept. 5 . .. 1,512 the Bahamas and of all other foreign branches Sept. 29 2,475 3,578 21. 1,290 12. .. 1,942 for which such deposits and direct borrowings Dec. 29 909 28. 1,127 19. .. 1,801 amount to $50 million or more. 26... 1,725 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 Eurodollar 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 Assets in custody Payable in dollars foreign currencies E p n er d i o o d f Deposits U.S. Treas. Earmarked EE pp nn eerr dd ii oo oo dd ff TToottaall Short- Short- UU KK nn ii ii nn tt gg ee -- dd CCaannaaddaa securities1 gold Deposits in te v r e m st - Deposits in te v r e m st - ddoomm 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—Sept... 193 50,997 215,531 11996699 22 /1,319 952 116 174 76 610 469 O No ct v . . . . . . . 1 18 9 8 2 5 5 1 1, , 8 8 2 7 1 4 1 15 5 ,5 ,5 3 3 0 1 \1 1 , , 4 1 9 4 1 1 1,0 6 6 9 2 7 1 1 6 5 1 0 1 1 8 7 3 3 1 8 2 6 1 6 3 6 7 3 2 4 5 4 3 3 4 Dec.. . 325 50,934 15,530 11997711——DDeecc..22 .. .... /1,648 1,092 203 234 120 577 587 1973—Jan.... 310 50,118 15,526 \1,507 1,078 127 234 68 580 443 J A A M F S J M u u e e p u a b l a p n r g y r . y t e . . . . . . . . . . . . . . . . . . . . . 2 2 4 2 2 3 3 3 5 8 8 5 2 2 5 3 9 0 9 5 8 7 0 4 3 3 5 5 5 5 5 5 5 5 7 6 5 8 7 5 8 9 , , , , , , , , 8 0 0 5 9 4 2 3 5 5 1 4 5 1 0 8 5 5 5 5 4 4 7 9 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 , , , , , , , , 5 5 5 4 4 4 5 4 1 1 1 5 8 6 2 3 1 3 9 5 6 4 2 7 1972—J DD A N S O u e u c o ee p l t g v y cc t ..22........ / \2 I 2 2 2 2 2 , , , , , , , 9 1 0 2 0 1 0 6 2 5 0 3 7 8 5 1 8 1 3 3 5 1 1 1 1 1 1 1 , , , , , , , 4 5 6 4 5 4 6 9 2 0 1 4 7 7 3 7 2 7 6 2 0 2 1 1 1 1 1 1 4 9 7 6 7 6 7 6 4 1 9 0 7 3 3 3 3 3 3 3 9 5 4 3 1 0 3 2 9 3 8 8 7 2 4 4 6 6 5 5 5 2 5 8 1 5 7 5 7 6 6 7 7 7 6 8 3 5 8 8 5 0 1 5 5 0 5 4 2 4 5 7 6 5 5 5 8 0 0 5 0 8 6 5 6 9 1 4 7 5 1973—Jan.... 2,364 1,860 70 342 93 909 655 d c T u e r r b e 1 2 r a t e e M I s n d n u c a n c r i r r y e e e k s s a s e . s , s t e e a c n b u r o l e r e t f i e l t e s i U e c , s t . s a S n p . p d r a T i y n b r a c e b o i a p n le s a d u l s l r i y n y a c n h b d d a i o l n l l l n s g a , o e r n s c i m n e r a a p t n i r a f d k r ic e v a t i a a t n e l b u s l e f e o o o r f f U e i t . g i h S n n e . - J M A M F u e p a a b n r r y . e . r r r r .... 2 2 2 2 3 , , , , , 8 9 8 0 9 8 0 6 9 0 8 8 5 4 4 2 2 2 2 2 , , , , , 1 2 3 1 1 3 4 3 1 3 7 9 4 2 2 1 1 1 1 7 3 1 1 3 7 8 8 4 6 4 4 4 4 3 4 1 1 3 7 9 4 4 0 3 2 2 2 2 1 1 3 2 2 3 1 8 5 5 4 1 1 1 , , , 0 0 0 9 9 2 7 3 7 9 8 8 3 9 6 1,0 9 9 8 8 3 4 3 2 4 6 0 4 0 0 U.S. dollar in May 1972. July 3,040 2,276 118 472 175 1,028 897 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. hel N d O f T o E r .— in E te x r c n lu a d ti e o s n a d l ep a o n s d i ts r e a g n io d n a U l .S o . r g T an re iz a a s. t io s n e s c . u r E it a ie r s - 2 Data on the two lines for this date differ because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. 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

OCTOBER 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. 1 Mar.P June Sept. Dec.i Mar.* 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 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 1 11 12 12 14 Other Western Europe 2 2 2 2 2 10 ' 11 14 12 8 3 9 3 3 9 22 42 41 41 i 47 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 Colombia 6 6 8 8 8 38 39 41 43 42 Cuba • 1 1 1 • 1 1 1 1 1 Mexico. 18 21 27 27 34 143 154 180 183 197 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 Venezuela 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 j Asia: China, People's Republic of (China Mainland) 1 28 32 32 3322 • 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 7 7 7 7 7 32 36 33 34 31 Indonesia 5 6 12 13 13 25 32 33 33 38 9 11 12 13 16 17 18 31 31 34 Japan 188 223 149 161 194 451 452 456 467 509 16 16 20 20 19 61 57 63 63 47 Philippines 6 5 15 15 25 67 63 49 47 45 Thailand 4 5 5 5 5 15 14 15 22 25 Other Asia 103 112 117 152 157 174 171 201 205 190 Total 374 451 410 456 506 911 918 I 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 Zaire 1 2 1 1 12 7 j' 7 5 8 16 Other Africa 31 37 59 61 69 74 |i 64 75 79 79 Total 71 57 92 103 124 133 122 140 156 175 Other countries: Australia 54 46 47 46 53 97 92 94 83 81 All other 11 11 13 13 11 18 18 20 24 25 Total 66 57 60 59 64 116 110 114 108 106 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 comin 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. • OCTOBER 1973 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l in l a a b r l s e cu P fo r a r r y i e e n a n i b g c n l i e e s Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h 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 Dec.1 J 1,786 1,399 387 3,710 3,124 221 365 I 2,124 1,654 471 4.159 3,532 244 383 1970—June.. 2,387 1,843 543 4,457 3,868 234 355 Sept... 2,512 1,956 557 4,361 3,756 301 305 Dec... 2,677 2,281 496 4.160 3,579 234 348 1971—Mar... 2,437 1,975 462 4,515 3,909 232 374 June.. 2,375 1,937 438 4,708 4,057 303 348 Sept... 2,564 2,109 454 4,894 4,186 383 326 Dec.1 / 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,004 4,467 290 247 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. J \ 3 3 , , 3 1 0 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. f 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 EEEnnnddd ooofff pppeeerrriiioooddd TTToootttaaalll Country or area llliiiaaabbbiiillliiitttiiieeesss TToottaall K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r c 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 J 1,725 2,215 152 433 496 172 73 388 141 249 69 42 \ 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970—Mar 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept 2,939 3,019 135 672 765 178 60 597 133 319 85 75 _ i J 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 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 r\AP 1 \ f 3 3 , , 8 5 3 4 9 0 3 3 , , 3 55 8 3 0 1 1 6 7 2 9 7 7 1 6 5 7 9 83 3 3 7 1 1 8 8 4 3 6 6 2 0 6 7 6 0 9 8 1 1 5 3 6 3 4 3 0 9 6 4 8 8 0 7 1 1 0 1 9 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

OCTOBER 1973 • EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Ceylon Denmark Finland France Period (dollar) (schilling) (franc) (dollar) (rupee) (krone) (markka) (franc) 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 Sept 119.10 4.3354 2.2742 101.730 15.600 14.388 24.015 19.977 Oct 119.07 4.3102 2.2640 101.756 15.605 14.453 23.562 19.906 119.09 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 24.655 141.48 5.5917 2.7035 99.605 15.948 17.521 27.314 23.527 Sept 146.83 5.5695 2.7089 99.181 15.768 17.480 27.042 23.466 Period ( G D m e e r u a m t r s k a c n ) h y e (r In up d e ia e ) ( I p r o e u la n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o l l a l y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - r s ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 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—Sept 31.318 13.016 244.10 .17199 .33209 36.110 8.0000 30.969 Oct 31.184 12.806 239.48 .17145 .33221 36.063 8.0000 30.869 31.215 12.540 235.05 .17109 .33224 36.124 8.0000 30.964 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 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 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 Sept 41.246 12.987 241.83 .17691 .37668 43.361 8.0000 38.542 Period Z (d e N o a e l l l w a a n r d ) N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o f a r u n i t c d h a ) (p S e p s a e i t n a ) S (k w r e o d n e a n ) ( e S f r r w l a a i n t n z c d - ) ( U p K d o n i o u n i m t n g e d - d ) 1968 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—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 Sept 145.07 18.048 4.2784 148.50 1.7610 23.769 33.146 241.83 NOTE.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see "International Finance," 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 • OCTOBER 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Sept. 30, 1972 Country 1972 1973 Per Month cent effective Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Argentina. 18.0 Feb. 1972 Austria.... 5.0 Jan. 1970 555...555 666...000 Belgium... 4.0 Mar. 1972 444...555 55..00 55..5500 666...000 66..55 Brazil 18.0 Feb. 1972 Canada... 4.75 Oct. 1971 55..2255 55..7755 66..2255 66..7755 Ceylon 6.5 Jan. 1970 Chile 7.0 Jan. 1972 China, Rep. of (Taiwan). 9.25 May 1971 1100..55 Colombia 8.0 May 1963 Costa Rica 5.0 June 1966 Denmark... 8.0 June 1972 77..00 88..00 Ecuador.... 8.0 Jan. 1970 Egypt 5.0 May 1962 El Salvador. 4.0 Aug. 1964 Ethiopia.... 6.50 Aug. 1970 Finland 7.75 Jan. 1972 999...222555 France 5.75 Apr. 1972 777...555 888...555000 99..55 1111..00 Germany, Fed. Rep. of.. 3.0 Feb. 1972 33..55 444...555 55..00 66..00 77..00 Ghana 8.0 July 1971 Greece 6.5 Sept. 1969 Honduras. 4.0 Feb. 1966 Iceland 5.25 Jan. 1966 India 6.0 Jan. 1971 77..00 Indonesia., 6.0 May 1969 Iran 7.0 Oct. 1969 Ireland.. 7.19 Sept. 1972 77..4444 Italy 4.0 Apr. 1972 Jamaica. 6.0 June 1972 77..00 Japan... 4.25 June 1972 55..00 55..55 66..00 77..00 Korea... 13.0 Jan. 1972 Mexico 4.5 June 1942 Morocco 3.50 Nov. 1951 Netherlands... 3.0 Sept. 1972 44..00 55..00 66..00 66..55 New Zealand. 6.0 Mar. 1972 Nigeria 4.50 June 1968 Norway 4.5 Sept. 1969 Pakistan 6.0 May 1972 88..00 Peru 9.5 Nov. 1959 Philippine Republic. 10.0 June 1969 Portugal 3.75 Feb. 1971 44..00 55..55 South Africa. 6.0 Aug. 1972 Spain 5.0 Oct. 1971 66..00 Sweden 5.0 Nov. 1971 55..00 Switzerland.. 3.75 Sept. 1969 44..5500 Thailand.... 5.0 Oct. 1959 Tunisia 5.0 Sept. 1966 Turkey 9.0 Sept. 1970 i 888...000 United Kingdom. 6.0 June 1972 77..5500 99..00 88..7755 888...555 77..7755 77..5500 1111..5500 Venezuela 5.0 Oct. 1970 Vietnam 18.0 Sept. 1970 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 producmore 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 disof these countries follow: tribution of rice and corn and 7.75 per cent for credits to enterprises en- Argentina—3 and 5 per cent for certain rural and industrial paper, de- gaged in export activities. Preferential rates are also granted on credits to pending on type of transaction; rural banks; and Brazil—8 per cent for secured paper and 4 per cent for certain agricultural t United Kingdom—On Oct. 9, 1972, the Bank of England announced: paper; "With effect from Friday October 13th the Bank's minimum lending rate Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent will until further notice be the average rate of discount for Treasury bills for loans to make up reserve deficiencies. established at the most recent tender plus one half percent rounded to the Colombia—5 per cent for warehouse receipts covering approved lists of nearest one quarter percent above. Although the rate will therefore be products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent automatically determined by this formula it will for convenience be made for rediscounts in excess of an individual bank's quota; known each Friday afternoon concurrently with and in the same manner Costa Rica—5 per cent for paper related to commercial transactions as the results of the Treasury bill tender. The regular weekly bank rate (rate shown is for agricultural and industrial paper); announcement will be discontinued from now on." Therefore, the mini- Ecuador—5 per cent for special advances and for bank acceptances for mum lending rate as of last Friday of the month will be carried in place of agricultural purposes, 7 per cent for bank acceptances for industrial Bank rate. purposes, and 10 per cent for advances to cover shortages in legal reserves; Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. per cent for advances against government bonds, and 5 l/i per cent for Honduras—Rate shown is for advances only. rediscounts of certain industrial paper and on advances against promissory Indonesia—Various rates depending on type of paper, collateral, com- notes or securities of first-class Venezuelan companies. modity involved, etc.; Vietnam—10 per cent for export paper; treasury bonds are rediscounted Japan—Penalty rates (exceeding the basic rate shown) for borrowings at a rate 4 percentage points above the rate carried by the bond; and from the central bank in excess of an individual bank's quota; there is a penalty rate of 24 per cent for banks whose loans exceed quantitative ceilings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • OPEN MARKET RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la it n z d e r- Month 3 T m r b e o i a l n s ls u t , h r s y * D m a o d y n a - y e t y o 2 - 3 m P b b r o a i i l n n m ls k t , e h s3 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y t e o y - C d b r l e e a a p a t n o e r k s i s n s i 4 t ' g D m a o d y n a - e y t y o 5 - T 6 r d b e 0 a i a - l y s l 9 s s u 0 , 6 r y D m a o d y n a - e y t y o 7 - 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e t o y - d P is r r c i a v o t a u e t n e t 197 1 3.62 3.76 6.41 5.57 4.93 3.84 5.84 4.54 6.10 4.34 3.76 5.24 197 2 3.55 3.65 6.06 5.02 4.83 3.84 3.04 4.30 2.15 1.97 4.81 1972—Sept. 3.57 3.52 7.18 6.44 5.27 5.25 3.89 2.75 4.83 1.11 .54 4.75 Oct.. 3.57 3.64 7.34 6.74 5.47 5.25 5.16 3.25 6.07 1.95 2.61 4.75 Nov. 3.61 3.71 7.28 6.88 5.70 5.25 6.33 3.75 5.71 3.13 3.31 4.75 Dec. 3.66 3.71 8.08 7.76 6.23 5.57 7.32 4.25 6.69 3.12 3.20 4.75 1973—Jan.. 3.79 3.72 8.76 8.49 7.66 6.55 7.23 4.75 5.58 3.16 2.78 5.00 Feb. 3.91 3.93 9.34 8.14 8.31 7.30 7.71 5.75 2.18 2.33 1.55 5.00 Mar. 4.28 4.21 9.76 8.16 7.52 7.50 7.49 5.75 11.37 1.53 .61 5.00 Apr. 4.73 4.53 8.64 7.87 7.20 7.25 7.46 5.75 14.84 1.22 .77 5.00 May 5.08 4.67 8.35 7.45 8.29 7.11 7.71 5.75 7.40 3.88 5.00 June 5.40 5.00 8.14 7.12 6.66 6.55 7.46 7.00 10.90 3.59 4.28 5.00 July. 5.67 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 10.63 Sept. 6.41 12.12 11.37 9.13 9.50 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. * 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 PPrreemmiiuumm Date q K ( u U a in o U d n t g j i . a . t d S t e . o i t d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o a o r d n ) PP dd ff (( (( rr pp oo ii —— -- ss ee rr oo cc ff mm ww uu )) oo )) nn aa ii oo uu oo uu rr dd rr nn nn mm dd tt ii LL nn (( oo cc ff NN nn aa ee oo nn vv dd ee ff tt oo tt oo ii rr vv nn ee )) qu A i o n t s e d C ant a q d A u a o U d t j . a . S t . t i o o n U S n ta it t e e d s C S ( a f p a n o r v a e f o d a r d a ) CC dd ff (( (( dd oo aa ii —— ++ ss oo rr nn cc )) ww ll aa )) oo ll aa dd aa oo uu oo rr ii rr rr nn nn aa ss dd tt nn ii CC nn (( cc aa ff NN ee aa nn oo nn vv aa ee ff tt oo tt dd ii rr vv aa ee )) basis) Canada basis 1973 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 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 Sept. 7. 10.84 8.77 2.07 -4.55 -2.48 6.22 6.04 8.77 -2.73 2.26 -.47 14. 10.80 8.75 2.05 -5.49 -3.44 6.42 6.25 8.75 -2.50 2.06 -.44 21 . 10.83 8.00 2.83 -4.84 -2.01 6.48 6.26 8.00 -1.74 1.89 .15 28. 10.79 6.94 3.85 -4.52 -.67 6.50 6.29 6.94 -0.65 1.37 .72 i No data because of holiday on Good Friday. bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 BULLETIN, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 GOLD RESERVES • OCTOBER 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. Estim to a t t a e l d M ta o r n y e - U St n a i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n - t A ra u l s ia - A tr u ia s- g B iu e m l- Brazil Burma Canada world i Fund world 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 63 791 41,175 4,732 10,206 26,235 192 90 259 729 1,544 46 22 792 5,765 10,488 208 130 283 792 1,672 50 16 834 44,875 5,777 10,487 28,610 208 152 283 792 1,648 50 16 834 5.777 10,487 208 152 282 792 1,636 50 16 834 5.778 10,487 208 152 282 792 1,642 50 16 834 44,925 5,830 10,487 28,610 208 152 281 792 1,638 50 12 834 5,830 10,487 208 152 281 793 1,621 50 12 834 5,830 10,487 208 152 281 793 1,603 50 12 834 44,900 5,830 10,487 28,585 208 152 282 793 1,603 50 12 834 5.830 10,487 208 152 281 793 1,603 50 12 834 5,826 10,487 208 152 281 793 1,603 50 12 834 p44,875 5.831 10,487 ^28^560 208 152 281 793 1,603 50 12 834 5,826 10,487 208 281 793 1,603 834 5,826 10,487 208 281 793 1,603 834 E pe n r d i o o d f ( R T C e a h p i i w n . a a o , n f ) lo C m o b - ia m De a n rk - Egypt l F a i n n d - France m G F a e e n d r y . - , Greece India Iran Iraq l I a r n e d - Rep. of 1965. 55 35 97 139 84 4,706 4,410 78 281 146 110 21 1966. 62 26 108 93 45 5,238 4,292 120 243 130 106 23 1967. 81 31 107 93 45 5,234 4,228 130 243 144 115 25 1968. 81 31 114 93 45 3,877 4,539 140 243 158 193 79 1969. 82 26 89 93 45 3,547 4,079 130 243 158 193 39 1970. 82 17 64 85 29 3,532 3,980 117 243 131 144 16 1971. 80 14 64 85 49 3,523 4,077 98 243 131 144 16 1972--Aug 87 16 69 92 53 3,826 4,437 132 264 142 156 17 Sept 87 16 69 92 53 3,826 4,436 132 264 142 156 17 Oct 87 16 69 92 53 3,826 4,436 132 264 142 156 17 Nov 87 16 69 92 53 3,826 4,436 132 264 142 156 17 Dec 87 16 69 92 53 3,826 4,459 133 264 142 156 17 1973--Jan 87 16 69 92 53 3,834 4,468 133 264 142 156 17 Feb 87 16 69 92 53 3,834 4,468 133 264 142 156 17 Mar 87 16 69 92 53 3,834 4,468 133 264 142 156 17 Apr 87 16 69 92 53 3,834 4.468 133 264 142 156 17 May 87 16 69 92 53 3.834 4.469 133 142 156 17 June 87 16 69 92 53 3,841 4,462 133 142 156 17 July 87 16 69 92 53 3.835 4,469 133 142 156 17 Aug.p 1166 6699 5533 3,835 4,469 133 142 156 17 Italy Japan Kuwait a L n e o b n - Libya M s a i l a a y- M c e o x i- Mo co ro c- N la et n h d e s r - N w o a r y - P s a ta k n i- 2,404 328 52 182 68 2 158 21 1,756 31 53 67 2,414 329 67 193 68 1 109 21 1,730 18 53 65 2,400 338 136 193 68 31 166 21 1,711 18 53 20 2,923 356 122 288 85 66 165 21 1,697 24 54 20 2,956 413 86 288 85 63 169 21 1,720 25 54 25 2,887 532 86 288 85 48 176 21 1,787 23 54 40 2,884 679 87 322 85 58 184 21 1,909 33 55 40 3,131 801 94 350 93 63 188 23 2,079 36 60 41 3,130 801 94 350 93 63 188 23 2,078 36 60 41 3,130 801 94 350 93 63 188 23 2,078 36 60 41 3,130 801 94 350 93 63 188 23 2,059 36 60 41 3,130 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 802 350 93 63 188 23 2,059 37 60 41 3,134 802 350 93 63 23 2,063 37 60 41 3,134 802 350 93 6633 2,063 37 60 41 3,134 802 335500 9933 2,065 37 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1973 • GOLD RESERVES AND PRODUCTION A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) Bank E pe n r d i o o d f Po g r a t l u - A S r a a u b d i i a A So fr u i t c h a Spain Sweden Sw la it n z d e r- T la h n a d i- Turk«y U K d n i o n it m g e - d U gu r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n t o t t r l l e . ments 4 1965 576 73 425 810 202 3,042 96 116 2,265 155 401 19 -558 1966 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 1967 699 69 583 785 203 3,089 92 97 1,291 140 401 22 -624 1968 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 1969 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 1970 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 1971 921 119 410 498 200 2,909 82 130 775 148 391 51 310 1972—Aug 1,021 129 580 541 217 3,158 89 122 800 169 425 56 276 Sept 1,021 129 601 541 217 3,158 89 122 800 169 425 56 267 Oct 1,021 129 636 541 217 3,158 89 122 800 169 425 56 267 Nov 1,021 129 662 541 217 3,158 89 122 800 169 425 56 255 Dec 1,021 129 681 541 217 3,158 89 136 800 133 425 56 218 1973—Jan 1,022 129 706 542 220 3,162 89 136 810 133 425 56 218 Feb 1,022 131 711 542 220 3,162 89 136 810 133 425 56 214 Mar 1,022 131 714 542 220 3,162 89 136 810 133 425 56 214 Apr 1,022 131 720 542 220 3,162 89 136 810 133 425 56 214 May 1,022 131 721 542 220 3,162 89 136 810 133 425 56 199 June 1,022 131 724 542 220 3,162 89 136 810 133 425 56 205 July? 11,,002222 113311 734 220 3,162 89 136 133 425 56 204 Aug.p 774400 222200 33,,116622 8899 113366 113333 442255 5566 220055 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. v 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 production i A So fr u i t c h a Ghana Zaire U S n ta i t t e e s d C a a d n a - M ic e o x - N ra ic g a u - a Co b l i o a m - India Japan P p h i i n li e p s - 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 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 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 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 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 1.098.7 24.4 6.0 52.3 79.1 5.3 3.7 6.6 4.1 27.0 22.2 1.109.8 54.3 77.2 7.1 4.0 32.2 23.0 94.4 6.4 .5 .4 2.8 94.1 5.9 .6 .3 2.8 93.9 6.3 .6 .3 3.1 94.2 6.3 .5 .3 2.7 91.5 6.0 .7 .4 84.3 6.3 .5 .3 88.2 6.2 86.5 6.1 88.5 6.3 86.6 6.2 86.0 6.8 87.6 6.4 88.3 5.6 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, il 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 LEGAL DIVISION REED J. IRVINE, Adviser 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 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. MINAMI, 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 LEON ALL C. ANDERSEN, Associate Economist Secretary RALPH C. BRYANT, Associate Economist THOMAS J. O'CONNELL, General Counsel ROBERT W. EISENMENGER, Associate Economist EDWARD G. GUY, Deputy General Counsel GEORGE GARVY, Associate Economist JOHN NICOLL, Assistant General Counsel LYLE E. GRAMLEY, Associate Economist J. CHARLES PARTEE, Senior Economist JOHN E. REYNOLDS, Associate Economist STEPHEN H. AXILROD, Economist KARL A. SCHELD, Associate Economist (Domestic Finance) KENT O. SIMS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager, System Open Market Account DAVID E. BODNER, Deputy Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL G. MORRIS DORRANCE, JR., THIRD FEDERAL RESERVE DISTRICT, President HARRY HOOD BASSETT, SIXTH FEDERAL RESERVE DISTRICT, Vice President JAMES F. ENGLISH, JR., FIRST FEDERAL DAVID H. MOREY, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT GABRIEL HAUGE, SECOND CHESTER C. LIND, NINTH FEDERAL FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL MORRIS F. MILLER, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT THOMAS I. STORRS, FIFTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH FEDERAL H. A. ROGERS, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 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. Cordinglev 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 A. Grant Holman 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 BANKING MARKET STRUCTURE & PERFORMANCE IN METROPOLITAN AREAS: A STATISTICAL STUDY FEDERAL RESERVE BULLETIN. Monthly. $6.00 per OF FACTORS AFFECTING RATES ON BANK year or $.60 each in the United States and its LOANS. 1965. 73 pp. $.50 each; 10 or more to possessions, Bolivia, Canada, Chile, Colombia, one address, $.40 each. Costa Rica, Cuba, Dominican Republic, Ecuador, THE PERFORMANCE OF BANK HOLDING COMPA- Guatemala, Haiti, Republic of Honduras, Mexico, NIES. 1967. 29 pp. $.25 each; 10 or more to one Nicaragua, Panama, Paraguay, Peru, El Salvador, address, $.20 each. Uruguay, and Venezuela; 10 or more of same issue THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 to one address, $5.00 per year or $.50 each. Else- each; 10 or more to one address, $.85 each. where, $7.00 per year or $.70 each. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 FEDERAL RESERVE CHART BOOK ON FINANCIAL each; 10 or more to one address, $.85 each. AND BUSINESS STATISTICS. Monthly. Subscrip- U.S. TREASURY ADVANCE REFUNDING, JUNE tion includes one issue of Historical Chart Book. 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or $6.00 per year or $.60 each in the United States more to one address, $.40 each. and the countries listed above; 10 or more of same BANK CREDIT-CARD AND CHECK-CREDIT PLANS. issue to one address, $.50 each. Elsewhere, $7.00 1968. 102 pp. $1.00 each; 10 or more to one per year or $.70 each. address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. INTEREST RATE EXPECTATIONS: TESTS ON YIELD Subscription to monthly chart book includes one SPREADS AMONG SHORT-TERM GOVERNMENT issue. $.60 each in the United States and countries SECURITIES. 1968. 83 pp. $.50 each; 10 or more listed above; 10 or more to one address, $.50 each. to one address, $.40 each. Elsewhere, $.70 each. SURVEY OF FINANCIAL CHARACTERISTICS OF THE FEDERAL RESERVE ACT, as amended through CONSUMERS. 1966. 166 pp. $1.00 each; 10 or December 1971, with an appendix containing pro- more to one address, $.85 each. visions of certain other statutes affecting the Federal SURVEY OF CHANGES IN FAMILY FINANCES. 1968. Reserve System. 252 pp. $1.25. 321 pp. $1.00 each; 10 or more to one address, REGULATIONS OF THE BOARD OF GOVERNORS OF $.85 each. THE FEDERAL RESERVE SYSTEM. REPORT OF THE JOINT TREASURY-FEDERAL RE- PUBLISHED INTERPRETATIONS OF THE BOARD OF SERVE STUDY OF THE U.S. GOVERNMENT SE- GOVERNORS, as of December 31, 1972. $2.50. CURITIES MARKET. 1969. 48 pp. $.25 each; 10 FLOW OF FUNDS IN THE UNITED STATES, 1939-53. or more to one address, $.20 each. 1955. 390 pp. $2.75. JOINT TREASURY-FEDERAL RESERVE STUDY OF DEBITS AND CLEARING STATISTICS AND THEIR USE. THE GOVERNMENT SECURITIES MARKET: 1959. 144 pp. $1.00 each; 10 or more to one STAFF STUDIES—PART 1.1970. 86 pp. $.50 each; address $ CBCII 10 or more to one address, $.40 each. PART 2. SUPPLEMENT TO BANKING AND MONETARY STA- 1971. 153 pp. $1.00 each; 10 or more to one TISTICS. Sec. 1. Banks and the Monetary System. £iddr6ss $ 85 c^cli 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. OPEN MARKET POLICIES AND OPERATING PROCE- 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. DURES—STAFF STUDIES. 1971. 218 pp. $2.00; $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. 10 or more to one address, $1.75 each. Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. REAPPRAISAL OF THE FEDERAL RESERVE DIS- Sec. 10. Member Bank Reserves and Related Items. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each pp. $.35. Sec. 12. Money Rates and Securities volume $3.00 each; 10 or more to one address, Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. $2.50 each. 24 pp. $.35. Sec. 15. International Finance. 1962. THE ECONOMETRICS OF PRICE DETERMINATION 92 pp. $.65. Sec. 16 (New). Consumer Credit. CONFERENCE, October 30-31, 1970, Washington, 1965. 103 pp. $.65. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; INDUSTRIAL PRODUCTION—1971 edition. 383 pp. 10 or more to one address, $4.50 each. Paper ed. $4.00 each; 10 or more to one address, $3.50 each. $4.00 each; 10 or more to one address, $3.60 each. BANK MERGERS & THE REGULATORY AGENCIES: FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- APPLICATION OF THE BANK MERGER ACT OF ERATE FLUCTUATIONS IN HOUSING CON- 1960. 1964. 260 pp. $1.00 each; 10 or more to STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 one address, $.85 each. or more to one address, $3.60 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 101 STAFF ECONOMIC STUDIES INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE Studies and papers on economic and financial subjects BONDS. 8/67. that are of general interest in the field of economic U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN research. 1960-67. 4/68. FEDERAL FISCAL POLICY IN THE 1960's. 9/68. Summaries only printed in the BULLETIN BUSINESS FINANCING BY BUSINESS FINANCE COM- PANIES. 10/68. (Limited supply of mimeographed copies of full HOUSING PRODUCTION AND FINANCE. 3/69. text available upon request for single copies) THE CHANNELS OF MONETARY POLICY, Staff Economic Study by Frank de Leeuw and Edward THE REGULATION OF SHORT-TERM CAPITAL Gramlich. 6/69. MOVEMENTS IN MAJOR COUNTRIES, by Rodney REVISION OF WEEKLY SERIES FOR COMMERCIAL H. Mills, Jr. Nov. 1972. 53 pp. BANKS. 8/69. FEDERAL RESERVE DEFENSIVE BEHAVIOR AND THE EURO-DOLLARS: A CHANGING MARKET. 10/69. RESERVE CAUSATION ARGUMENT, by Raymond RECENT CHANGES IN STRUCTURE OF COMMER- Lombra and Raymond Torto. Nov. 1972. 15 pp. CIAL BANKING. 3/70. EXAMINATION OF THE MONEY STOCK CONTROL SDR's IN FEDERAL RESERVE OPERATIONS AND APPROACH OF BURGER, KALISH, AND BABB, by STATISTICS. 5/70. Fred J. Levin. March 1973. 18 pp. MEASURES OF SECURITY CREDIT. 12/70. OBTAINING THE YIELD ON A STANDARD BOND FROM MONETARY AGGREGATES AND MONEY MARKET A SAMPLE OF BONDS WITH HETEROGENEOUS CONDITIONS IN OPEN MARKET POLICY. 2/71. CHARACTERISTICS, by James L. Kichline, P. Mi- BANK FINANCING OF MOBILE HOMES. 3/71. chael Laub, and Guy V. G. Stevens. May 1973. INTEREST RATES, CREDIT FLOWS, AND MONETARY 30 pp. AGGREGATES SINCE 1964. 6/71. THE DETERMINANTS OF A DIRECT INVESTMENT TWO KEY ISSUES OF MONETARY POLICY. 6/71. OUTFLOW WITH EMPHASIS ON THE SUPPLY OF SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. FUNDS, by Frederic Brill Ruckdeschel. June 1973. BANK RATES ON BUSINESS LOANS—REVISED 171 pp. SERIES. 6/71. MORTGAGE COMMITMENTS ON INCOME PROPER- INDUSTRIAL PRODUCTION—REVISED AND NEW TIES: A NEW SERIES FOR 15 LIFE INSURANCE MEASURES. 7/71. COMPANIES, 1951-70, by Robert Moore Fisher and REVISED MEASURES OF MANUFACTURING CAPAC- Barbara Negri Opper. Aug. 1973. 83 pp. ITY UTILIZATION. 10/71. REVISION OF BANK CREDIT SERIES. 12/71. Printed in full in the BULLETIN PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. 12/71. (Staff Economic Studies shown in list below. ASSETS AND LIABILITIES OF FOREIGN BRANCHES Except for Staff Papers, Staff Economic Studies, and OF U.S. BANKS. 2/72. some leading articles, most of the articles reprinted do WAYS TO MODERATE FLUCTUATIONS IN THE CONnot exceed 12 pages.) STRUCTION OF HOUSING. 3/72. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 6/72. REPRINTS SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. 6/72. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. CHARACTERISTICS OF FEDERAL RESERVE BANK SEASONAL FACTORS AFFECTING BANK RESERVES. DIRECTORS. 6/72. 2/58. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN- LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste- OVER—REVISED SERIES. 7/72. phen H. Axilrod. 10/61. RECENT REGULATORY CHANGES IN RESERVE RE- SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. QUIREMENTS AND CHECK COLLECTION. 7/72. 7/62. YIELDS ON NEWLY ISSUED CORPORATE BONDS. INTEREST RATES AND MONETARY POLICY, Staff 9/72. Paper by Stephen H. Axilrod. 9/62. RECENT ACTIVITIES OF FOREIGN BRANCHES OF MEASURES OF MEMBER BANK RESERVES. 7/63. U.S. BANKS. 10/72. REVISION OF BANK DEBITS AND DEPOSIT TURN- REVISION OF CONSUMER CREDIT STATISTICS. OVER SERIES. 3/65. 10/72. RESEARCH ON BANKING STRUCTURE AND PER- SURVEY OF FINANCE COMPANIES, 1970. 11/72. FORMANCE, Staff Economic Study by Tynan ONE-BANK HOLDING COMPANIES BEFORE THE 1970 Smith. 4/66. AMENDMENTS. 12/72. A REVISED INDEX OF MANUFACTURING CAPACITY, EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. Staff Economic Study by Frank de Leeuw with REVISION OF THE MONEY STOCK MEASURES AND Frank E. Hopkins and Michael D. Sherman. 11/66. MEMBER BANK RESERVES AND DEPOSITS. 2/73. REVISED SERIES ON COMMERCIAL AND INDUS- DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. TRIAL LOANS BY INDUSTRY. 2/67. 4/73. THE PUBLIC INFORMATION ACT—ITS EFFECT ON STATE AND LOCAL BORROWING ANTICIPATIONS MEMBER BANKS. 7/67. AND REALIZATIONS. 4/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BULLETIN • OCTOBER 1973 YIELDS ON RECENTLY OFFERED CORPORATE CAPACITY UTILIZATION IN MAJOR MATERIALS IN- BONDS. 5/73. DUSTRIES. 8/73. FEDERAL FISCAL POLICY, 1965-72. 6/73. TREASURY AND FEDERAL RESERVE FOREIGN EX- SOME PROBLEMS OF CENTRAL BANKING. 6/73. CHANGE OPERATIONS. 9/73. OPEN MARKET OPERATIONS IN 1972. 6/73. CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- CHANGES IN BANK LENDING PRACTICES, 1972. 7/73. MERCIAL BANKS. 9/73. TREASURY AND FEDERAL RESERVE FOREIGN EX- RATES ON CONSUMER INSTALMENT LOANS. 9/73. CHANGE OPERATIONS, INTERIM REPORT. 7/73. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. BANKING AND MONETARY STATISTICS, 1972. Se- 10/73. lected series of banking and monetary statistics for CHANGES IN TIME AND SAVINGS DEPOSITS, APRIL- 1972 only. 3/73 and 7/73. JULY 1973. 10/73. FINANCIAL DEVELOPMENTS IN THE SECOND NEW SERIES FOR LARGE MANUFACTURING COR- QUARTER OF 1973. 8/73. PORATIONS. 10/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Bankers' balances, 23, 26 Subject to reserve requirements, 17 {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) Bonds (See also U.S. Govt, securities): Dividends, corporate, 48 New issues, 45, 46, 47 Dollar assets, foreign, 75, 81 Yields and prices, 34, 35 Branch banks: Earnings and hours, manufacturing industries, 65 Assets, foreign branches of U.S. banks, 86 Employment, 62, 64, 65 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Euro-dollar deposits in foreign branches of U.S. banks, 88 Brokerage balances, 85 Business expenditures on new plant and equipment, 48 Business indexes, 62 Farm mortgage loans, 49, 50 Business loans (See Commercial and industrial loans) Federal agency obligations, 11, 12, 13, 14 Federal finance: Capacity utilization, 62 Receipts and outlays, 40, 41 Capital accounts: Treasury operating balance, 40 Banks, by classes, 18, 23, 28 Federal funds, 7, 22, 24, 28, 33 Federal Reserve Banks, 12, 13 Federal home loan banks, 38, 39, 51 Central banks, 92, 94 Federal Home Loan Mortgage Corporation, 53 Certificates of deposit, 28 Federal Housing Administration, 49, 50, 51, 52, 53 Coins, circulation, 15 Federal intermediate credit banks, 38, 39 Commercial and industrial loans: Federal land banks, 38, 39 Commercial banks, 17, 22, 31 Federal National Mortgage Assn., 38, 39, 52 Weekly reporting banks, 24, 29 Federal Reserve Banks: Commercial banks: Condition statement, 12 Assets and liabilities, 17, 18, 22, 23, 24 U.S. Govt, securities held, 4, 12, 14, 42, 43 Consumer loans held, by type, 55 Federal Reserve credit, 4, 6, 12, 14 Deposits at, for payment of personal loans, 30 Federal Reserve notes, 12, 13, 15 Loans sold outright, 31 Federally sponsored credit agencies, 38, 39 Number, by classes, 18 Finance companies: Real estate mortgages held, by type, 50 Loans, 24, 54, 55, 57 Commercial paper, 31, 33 Paper, 31, 33 Condition statements (See Assets and liabilities) Financial institutions, loans to, 22, 24 Construction, 62, 63 Float, 4 Consumer credit: Flow of funds, 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 104 FEDERAL RESERVE BULLETIN • OCTOBER 1973 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 Labor force, 64 Silver coin, 15 Life insurance companies (See Insurance companies) Special Drawing Rights, 4, 12, 13, 72, 75 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 18, 22, 24, 37 Deposits, 23, 27 Commercial banks, 17, 18, 22, 24, 29, 31, 32 Holdings of U.S. Govt, securities, 42, 43 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 New security issues, 45, 46 Insurance companies, 37, 50, 51 Ownership of securities of, 22, 26, 37 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Yields and prices of securities, 34, 35 Savings and loan assns., 38, 51 State member banks, 20, 30 Stock market credit, 36 Manufacturers: Stocks: Capacity utilization, 62 New issues, 46, 47 Production index, 59, 62 Yields and prices, 34, 35 Margin requirements, 10 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) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES (o THE FEDERAL RESERVE SYSTEM Q) a Q C? • HAWAII © Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis