Federal Reserve Bulletin, 1973-12

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 12 • VOLUME 59 • DECEMBER 1973 837 Recent Patterns of Corporate External Financing 847 Staff Economic Study: U.S. Energy Supplies and Uses 871 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report 874 Statements to Congress 884 Record of Policy Actions of the Federal Open Market Committee 892 Law Department 921 Announcements 924 Industrial Production Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 72 International Statistics A 98 Board of Governors and Staff A 100 Open Market Committee and Staff; Federal Advisory Council A 101 Federal Reserve Banks and Branches A 102 Federal Reserve Board Publications A 107 Index to Statistical Tables A 109 Index to Volume 59 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

Recent Patterns of Corporate External Financing In the period of expansion since 1970, nonfinancial corporations have engaged in external financing at a rate that, by historical standards, is large both in dollar volume and relative to corporate product. Until the final quarter of 1972, the mix of financial instruments used to raise these funds had been somewhat different from the financing practices of earlier years, because it involved much heavier reliance on long-term debt and equity markets than had been common over the 1960's as a whole. Since the final quarter of 1972, the dollar volume of corporate external financing has continued to be exceptionally large in relation to the level of economic activity. However, the pattern of external financing now has returned to one more like that before 1971. The portion raised in long-term debt and equity markets has fallen to about the 1969 level—or somewhat below the average of the 1960's. This shift of emphasis back to short-term markets has reflected mainly the general rise in interest rates since late 1972. Despite this change, the severe stringencies in the 1969 financial environment have not been present recently—or at least not to the same degree. The relatively more relaxed conditions in 1973 are attributable mainly to changes in financial regulations and to the financing patterns that emerged during the intervening years. The suspension of Regulation Q ceilings on large certificates of deposit (CD's) in mid-May 1973 has permitted banks to bid for funds more competitively than in past periods of monetary restraint. Therefore, bank credit in general has continued to be available in 1973, although at increasingly high interest and other costs. In addition, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 FEDERAL RESERVE BULLETIN • DECEMBER 1973 it appears that corporate holdings of liquid assets are much more consistent with the volume of internal funds being generated than they were in 1969. Finally, the balance sheet restructuring that occurred in 1971 and 1972 has provided corporations with somewhat greater financial flexibility than before. THE COMPOSITION OF Changes in the volume and composition of corporate external EXTERNAL FINANCING financing for the period since 1968 are documented in Table 1. As was the case in 1969, many recent financing decisions seem to have been explained by interest rate expectations and the yield spreads between highly substitutable instruments. Over the period as a whole, however, two more persistent factors appear to have exerted major influences on the structure of financing undertaken. First, corporations entered the present expansionary period with liquidity positions considerably eroded, following the substantial volume of short-term financing in 1969 and early 1970. The desire to restore these positions meant that a larger-than-normal share of total funds raised in 1971 was used to fund short-term debt and to build liquid asset balances. In fact, even in the recent period of rising interest rates, these asset balances have been augmented further. Second, internal funds generally have grown less rapidly of late in relation both to gross product and to capital outlays. TABLE 1 NONFINANCIAL CORPORATIONS: STRUCTURE OF DEBT AND EXTERNAL FINANCING Amounts shown in billions of dollars Total Equity Bonds Mortgages Bank loans Other credit Other market instruments liabilities Period Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Outstanding, end of period 1969.. 518.6 100.0 n.a. n.a. 147.6 28.4 71.8 13.9 97.0 18.7 23.1 4.4 179.2 34.6 1970.. 555.5 100.0 n.a. n.a. 167.3 30.1 77.0 13.9 102.6 18.5 26.3 4.7 182.2 32.8 1971.. 596.4 100.0 n.a. n.a. 186.1 31.2 88.5 14.8 107.4 18.0 26.3 4.4 188.1 31.5 1972.. 655.2 100.0 n.a. n.a. 198.3 30.3 104.1 15.9 120.9 18.5 28.8 4.4 203.0 31.0 Funds raised during period 1969.. 54.8 100.0 2.9 5.3 12.0 21.9 4.6 8.4 11.6 21.2 7.1 13.0 16.5 30.1 1970.. 41.3 100.0 4.8 11.6 19.8 47.9 5.2 12.6 5.7 13.8 3.3 8.0 2.5 6.1 1971.. 52.8 100.0 11.7 22.5 18.8 35.6 11.4 21.6 4.8 9.1 0.6 1.1 5.5 10.4 1972.. 68.9 100.0 10.4 15.1 12.2 17.7 15.6 22.6 13.9 20.2 2.5 3.6 14.4 20.9 1972— Ql.. 56.6 100.0 8.5 15.0 12.4 21.9 13.0 23.0 7.6 13.3 1.3 2.3 13.8 24.4 2.. 59.0 100.0 12.8 21.7 12.9 21.9 15.0 25.4 7.2 12.2 4.6 7.8 6.4 10.9 3.. 66.7 100.0 10.2 15.3 12.4 18.6 16.8 25.2 11.8 17.8 1.6 2.4 13.9 20.8 4.. 93.3 100.0 10.0 10.7 11.1 11.9 17.7 19.0 28.7 30.8 2.4 2.6 23.4 25.1 1973— QJ:: 1 9 0 2 3 . . 3 6 1 1 0 0 0 0 . . 0 0 9 8 . . 6 8 1 8 0 . . 5 4 1 7 1 . . 8 0 1 8 0 . . 5 6 1 1 9 5 . . 5 0 1 18 6 . . 8 3 2 5 7 4. . 8 0 2 5 6 9 . . 1 4 -10 2 . . 1 3 —1 2 0 . . 2 9 3 1 4 5 . . 9 0 3 1 3 6 . . 7 3 3.. 105.7 100.0 3.1 2.9 7.9 7.5 21.7 20.5 28.2 26.7 3.2 3.0 41.6 39.4 n.a.—Not available. borrowing consists of commercial paper and loans from finance com- NOTE.—Data from flow of funds accounts are quarterly at seasonally panies and the U.S. Government. Other liabilities are trade credit, adjusted annual rates; 1973 Q3 preliminary. Other credit market profits tax liabilities, and miscellaneous. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CORPORATE EXTERNAL FINANCING 839 This more sluggish growth undoubtedly has reinforced the desire of nonfinancial corporations to rebuild liquidity, in addition to requiring more external financing for the investment that has occurred. While the volume of external financing that took place between 1970 and the end of 1972 was dictated by the general shortage of internal funds relative to investment and liquidity objectives, its composition was influenced by two further considerations. One was the desire to fund some short-term debt as a means of improving debt capacity in both short- and long-term markets. The other was the desire to accomplish this restructuring in a manner that would slow the rate of increase in debt/equity ratios. To implement these objectives—once interest rates had retreated from their peaks in 1970 and the stock market had recovered from its mid-1970 lows—nonfinancial corporations expanded their reliance on long-term financing, particularly in market sectors where they had previously been inactive. The particular instruments involved in this expanded reliance on long-term borrowing tended to change somewhat as the period progressed. Net bond issues, at a record $19 billion in 1971, dropped back in early 1972 to about a $12.5 billion annual rate— about the same as in most other years since 1967, even though the total amount of debt financing was far more modest in those earlier years. Also, in 1971 an increasing amount of corporate long-term debt funds began to be provided through mortgages, with the growth concentrated more in mortgages secured by commercial properties than in those secured by residential investment. Growth in this area was encouraged by the greatly expanded flows of savings into banks and thrift institutions at a time when some of the funds previously available from the insurance sector for direct corporate debt financing were being absorbed by other investments, particularly those in the equity market. Furthermore, the higher interest cost of mortgage funds relative to privately placed debt was to some extent offset by the ability of physical collateral to substitute for debt covenants and other restrictions on financial policy that traditional lenders might have imposed on firms at that time. Net new issues of equity had been small during the late 1950's and 1960's; in fact, in 1968 at the peak of the conglomerate merger movement, nearly $1.5 billion of equities in nonfinancial corporations had been retired, much of it through exchange into convertible debt. During the early 1970's, on the other hand, the pattern of stock financing changed rather dramatically. More stock was issued (net) between 1969 and 1972 than had been issued cumulatively in the public market during the preceding decade and a half—with most of the expansion occurring after 1970. Much of the increase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 FEDERAL RESERVE BULLETIN • DECEMBER 1973 was accounted for by the shares of utility companies, since many such firms had exhausted their capacity to issue additional debt, but issues of manufacturing companies also grew substantially. The new financing patterns that began to emerge in 1971 persisted to some extent throughout the first three quarters of 1972, but by the fourth quarter a changed financial and economic environment began to reverse the heavy reliance on capital markets for external financing. With an accelerating pace of economic activity and continued inflationary pressures, conditions in credit markets tightened appreciably; corporations more than doubled their borrowing from banks, and also increased their other short-term borrowing. The volume of new equity financing receded after the second quarter, and public bond issues, particularly those of manufacturers, dropped off considerably. An increase in mortgage financing was the only departure from a general shift to short-term financing. Through the first three quarters of 1973 businesses concentrated their financing increasingly in short-term maturities. A first-quarter surge in bank loans was partly at the expense of commercial paper and other short-term credit market borrowing, and accounted for 60 per cent of total corporate external financing. The flow was reduced later in the year as banks tightened nonprice terms of their loans, while the institution of the two-tier prime rate in April allowed the price of loans—especially to large corporations—to rise. Nevertheless, more than 25 per cent of external corporate financing was still being provided by banks in the third quarter, a share that is large by historical standards. Rising interest rates and inflation have also led to substantial increases in other shortterm business liabilities. In periods of rising prices and profits, tax liabilities tend to accrue faster than payments are made, and trade credit becomes an increasingly important source of funds in periods of general credit stringency, especially for small business. Despite the fact that utility firms continued to raise funds through issues of preferred stock, the flow of business financing through equity markets declined throughout most of the year to a level that, in the third quarter, was only one-third as large as the year before. The depressed level of stock prices throughout much of the year has made equity financing more costly. Business needs for long-term credit have continued to be covered to an important extent in the mortgage market and, to a lesser extent, in bond markets. Through the third quarter of 1973 the volume of new bond offerings dropped off to a significant degree, particularly in public markets; in fact, for the third quarter the volume of gross new public offerings was the smallest since the final quarter of 1966. During most of the year, market expectations that interest rates were likely to fall once the business expansion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CORPORATE EXTERNAL FINANCING 841 j Borrowers substitute SHORT-TERM BANK CREDIT for commercial paper in early 1973 FLOWS, BILLIONS OF DOLLARS Flow of funds accounts data, n.e.c. Not elsewhere classified. slowed have limited borrower demands on the bond market. These expectations have tended to restrain advances in bond yields relative to those on short-term instruments. The over-all volume of corporate financing has remained strikingly large this year despite the increased cost of borrowing and the shift of emphasis back toward short-term debt. There has been a growing deficiency of internal funds relative to capital outlays, but in addition corporations in the past year have used the availability of short-term funds to add to their stock of liquid assets. This situation is in marked contrast to previous periods of high interest rates and monetary restraint when the drawing down of liquid asset balances substituted for the funds that could no longer be raised in credit markets. LIQUIDITY Before 1971, holdings of liquid assets had been declining relative to current liabilities for many years, as rising interest rates and better techniques of cash management encouraged corporations to economize on liquid asset balances. The rate of decline had accelerated in the late 1960's, but in 1969 and early 1970 liquidity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 FEDERAL RESERVE BULLETIN • DECEMBER 1973 2 | CORPORATE LIQUIDITY RATIO continued its long postwar decline until 1971 SEC end-of-quarter data, seasonally adjusted by F.R. Liquid assets are the sum of cash, U.S. Government securities, and "other" current assets. ratios dropped almost 20 per cent; firms both borrowed short-term and ran down holdings of liquid assets when the availability of credit from banks and other short-term sources decreased. As noted earlier, the rebuilding of liquidity positions in late 1970 and 1971 occurred both through the actual accumulation of liquid balances and through the restructuring of external financing toward longer maturities. Despite the large increases in short-term or current liabilities that have occurred this year, the liquidity ratio has remained remarkably stable, given its long history of decline. It is, therefore, quite likely that firms have raised the target level of liquid asset holdings that they desire to maintain. Reasons for this are not hard to find. Corporations may simply wish to avoid a repetition of the liquidity crisis of 1970. But several new uncertainties not present in 1970 apparently have also been added. Inasmuch as foreign currency balances are a necessity to firms doing a substantial international business, the fact that many TABLE 2 COMPOSITION OF LIQUID ASSETS OUTSTANDING End of year, not seasonally adjusted In billions of dollars In per cent TTyyppee ooff aasssseett 1969 1970 1971 1972 1969 1970 1971 1972 Domestic liquid assets plus foreign currency.... 80.2 78.8 90.7 97.6 100.0 100.0 100.0 100.0 Foreign currency 1.3 .9 2.3 4.1 1.6 1.2 2.6 4.2 Liquid assets 78.9 77.8 88.4 93.5 98.4 98.8 97.4 95.8 Demand deposits and currency 34.9 35.2 35.9 36.0 43.4 44.8 39.6 36.9 Time deposits 11.8 13.5 17.1 20.2 14.7 17.1 18.8 20.7 U.S. Govt, securities 7.0 7.3 9.4 7.0 8.7 9.3 10.3 7.1 Other short-term assets 25.3 21.8 26.0 30.3 31.5 27.6 28.7 31.1 SOURCE.—Board of Governors of the Federal Reserve System, Flow of Funds Accounts, 1945-1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 CORPORATE EXTERNAL FINANCING 3 | LIQUID ASSETS flow primarily into interest-bearing instruments BILLIONS OF DOLLARS 20 OTHER SHORT-TERM TIME DEPOSITS SECURITIES K / / W\ / J / \ / X V —V ^ / A/ N4 v Y V /V / \ / » U.S. GOVT. DEMAND \S SECURITIES DEPOSITS t K BI • 1 I ^ H ^ W M H P ^ ^ WW PBS 1969 1970 1971 1972 1973 1969 1970 1971 1972 1973 Flow of funds accounts data. 1973 Q3 preliminary. Other short-term assets consist of commercial paper, security RP's, and State and local securities. exchange rates have been floating since the general currency realignments of late 1971 has undoubtedly created a liquidity demand for such balances over and above the bookkeeping effects of the dollar devaluation on dollar values of foreign-denominated balances. Furthermore, the accelerating rate of inflation, especially in prices of raw materials, uncertainties about the future course of the wage-price stabilization program and its impact on profits; and actual shortages and delivery delays in the case of many supplies have also increased the difficulty of predicting cash flow with any degree of accuracy. In addition, the level of profits and cash flow has been smaller relative to corporate product than was true earlier in the decade. For these reasons and apart from international considerations firms may wish to have a larger liquidity cushion. Since about 60 per cent of corporate holdings of domestic liquid assets are accounted for by interest-bearing instruments— principally time deposits and open market paper—some of this accumulation of liquidity may represent a corporate response to better investment opportunities than alternative uses of corporate funds. Certainly the changes in the composition of these flows indicate a great deal of rate sensitivity. The build-up of CD balances in the past year is noteworthy, and many corporations apparently borrowed from banks in order to acquire CD's early in 1973 when the prime rate was well below other short-term rates. There is also a high degree of substitutability between U.S. Government securities and other short-term market instruments. Whatever the causes of this development, the volume of liquid assets that nonfinancial corporations have acquired in the past year has been substantial—a marked departure from the behavior typical of past periods of rising interest rates and restrictive monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 FEDERAL RESERVE BULLETIN • DECEMBER 1973 CAPITAL OUTLAYS Besides being less predictable, corporate internal funds have not AND INTERNAL FUNDS grown so rapidly as corporate income since the 1969-70 recession. During most of the period the stabilization program has exercised some degree of restraint on price increases and thus on profits. While opinions have varied as to the extent of the impact of Phase II on corporate earnings, most observers feel that the present program will keep profits at levels below those that would have been attained in the absence of controls. In addition to the stabilization program, retained income has been negatively affected by most of the factors responsible for the sluggish recovery of profits since 1970. These include substantial increases in interest charges as well as in labor and materials costs that firms could not completely pass on. Furthermore, an increasing share of reported gains in book profits has reflected inventory profits resulting from inflation rather than a sustainable level of operating earnings. The inflation factor has been particularly troublesome in 1973 when the size and volatility of the adjustment for inventory profits have made quarterly movements in earnings unusually difficult to interpret. CAPITAL CONSUMPTION ALLOWANCES continue to supply major part of internal funds BILLIONS OF DOLLARS FOREIGN BRANCH PROFITS UNDISTRIBUTED PROFITS PLUS IVA CAPITAL CONSUMPTION ALLOWANCES Flow of funds accounts data. 1973 Q3 preliminary. IVA Inventory valuation adjustment. Adding to internal funds, however, have been the depreciation liberalization of the Asset Depreciation Range System and the investment tax credit, both introduced in 1971, as well as the substantial tax write-offs of 1970. The dividend restraint program of the Committee on Interest and Dividends, especially before its liberalization in June 1973, undoubtedly increased the rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CORPORATE EXTERNAL FINANCING 845 retention of after-tax profits. Earnings repatriated from foreign branches have also augmented the funds available to U.S. corporations with international operations. Since such earnings have been growing more rapidly than those from domestic operations, they have become an increasingly important source of funds. After rising in 1971 by only 3 per cent above their level in 1970, corporate capital outlays rose by 16 per cent in 1972; increases in the first three quarters of 1973 averaged more than 12 per cent, annual rate, even with a zero rate of growth in the first quarter. Although until recently residential construction has been the fastest growing component of corporate capital spending, plant and equipment expenditures have always accounted for the bulk of these outlays. Growth in business fixed investment was largely concentrated in the communications and utility sectors until manufacturing outlays also began to increase to a significant degree late in 1972. Inventory accumulation has been relatively modest, and inventory/sales ratios have declined to unusually low levels. Firms have reduced the number of product lines and attempted to turn stock more often, and shortages and the underestimation of sales may also have kept inventory levels low. In short, for the period as a whole, internal funds have not been so large, relative to capital outlays, as they were before the 1969-70 recession, and the gap has increased further in 1973. This development has added to corporate demands on credit markets for funds both to finance capital outlays and to fund the higher levels of liquidity that firms now feel it desirable to maintain. CAPITAL OUTLAYS, after a slow recovery, expand faster than INTERNAL FUNDS. . . PLANT AND EQUIPMENT outlays are especially strong BILLIONS OF DOLLARS CAPITAL OUTLAYS / EXTERNAL FINANCING INTERNAL FUNDS Flow of funds accounts data. 1973 Q3 preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 FEDERAL RESERVE BULLETIN • DECEMBER 1973 * • * * * Recently, rates of capacity utilization have been high in many basic manufacturing industries, and the number of manufacturers who believe that more capacity is needed has grown. According to recent survey data, manufacturing outlays for plant and equipment in 1973 are expected to be almost 20 per cent above 1972, although the outlook beyond 1973 has been clouded recently by the embargo on Middle Eastern oil. While the rate of growth in business profits has been decelerating, large increases in plant and equipment outlays still seem to be indicated for precisely those industries where shortages now exist. In an effort to reduce inflationary pressures, monetary policy moved toward restraint after the final quarter of 1972. In previous periods of monetary restraint, as the spread between capital outlays and internal funds widened, funds available to corporations became increasingly tight, and holdings of liquid assets were reduced as short-term credit became less available. That this same pattern did not occur in the recent period is in large measure due to the continuing availability of bank credit; banks have used their freedom from Regulation Q rate ceilings on large CD's to bid aggressively for funds in this market. However, corporate debt/equity ratios, debt structure, and liquidity levels now imply greater financial flexibility and consistency with the flows of internal funds likely to be realized. Hence, the restructuring of corporate balance sheets after 1970 contributed to an easier transition to the higher level of interest rates necessary to finance real expansion of plant and equipment in an inflationary environment. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Study U.S. ENERGY SUPPLIES AND USES Clayton Gehman—Staff, Board of Governors From time to time the Federal Reserve BULLE- is responsible for the analyses and conclusions TIN publishes in full staff studies that are of set forth, and the views expressed do not necesgeneral interest to the economics profession and sarily indicate concurrence by the Board of others. Governors, the Federal Reserve Banks, or As in all staff economic studies, the author members of their staffs. Contents Page Summary 848 Energy Supplies: Total energy production—annual and quarterly measures 849 Energy production by industrial stage 850 Btu output series 853 Foreign trade and new supplies of energy 855 Visible stocks of energy 857 Petroleum: Oil and gas well-drilling and output 859 Refinery capacity and operations 859 Production and imports of petroleum products 859 Domestic demand for petroleum products 862 Energy Uses: New supply of energy relative to total production 862 Energy end-products—output, new supply, and value 864 Industrial processing and energy uses 866 FRS electric power data 868 Over-all Conditions: Total energy—new supply and uses 870 Seasonal and other considerations 870A Notes to Charts 870A 847 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 FEDERAL RESERVE BULLETIN • DECEMBER 1973 This study is based on industrial production pact on either energy end-products or industrial measures and related data in real terms. The processing. original version was completed in July 1973 Comparisons made in this study indicate that with data through midyear. In the version pre- expansion in energy production has been more sented here some revisions have been made in stable cyclically than growth in total industrial both text and charts, and data have been added production (IP) but that the average growth rate for the third and fourth quarters of 1973. Actual for each over the whole post-World-War-II and prospective curtailments in oil shipments period has been 4.5 per cent. following the outbreak of the Middle East During the second half of 1973 total industrial conflict in October have had a major impact production of energy—in both primary and secon the outlook for U.S. and world supplies of ondary forms—has risen above a year earlier, petroleum products for an indeterminate period reflecting the pressures of accelerated demands and are contributing to major changes in inter- and the higher prices for those products. Upnational policies affecting energy sources and ward trends in underlying data (preliminary) conservation measures. indicate that over-all domestic supplies and uses of energy reached new records in the third quarter and changed little in the fourth quarter. SUMMARY Nearly one-half of industrial energy produc- This study is designed to provide new and tion represents end-products, which have grown current measures—in real terms and with his- steadily at a 7 per cent annual rate since torical perspective—of the sources and uses of 1953. The remaining portion of energy producenergy in the United States. From this and other tion is for materials that are used to produce studies it is evident that for some period ahead end-products and for industrial processing. the development of major additional domestic Data indicate a growing dependence on imenergy resources or a continuing marked ex- ports of refined petroleum products—largely repansion in imports of energy will be necessary sidual oil—since 1969. The greater dependence if continued growth in consumer activities and on crude oil has come more recently—since industrial production is to be maintained. 1971—mainly as a result of the leveling off in This conclusion seems warranted although the U.S. production of oil and gas and lack of more present study indicates that aggregate final U.S. intensive utilization of U.S. coal resources. consumption of energy in real terms has Natural gas accounts for an overwhelming not shown an accelerated rate of growth in share of the energy used for industrial processrecent years and that industrial processing per ing. Petroleum accounts directly for around unit of energy has been rising again since 1971. one-tenth of the total energy used for this pur- The latter is now 140 per cent above the figure pose. Coal and electricity account for the refor 1946, although there was a slowing down mainder. in the late 1960's when use of primary energy Utility use of petroleum in 1972 accounted accelerated. The approach in 1973 to near-ca- for about one-fifth of total electricity generation pacity output levels for major materials, which needs. Recent data on such uses and on utility consume the great bulk of energy used for stocks of oil are not yet available. Natural gas industrial purposes, has recently been a factor accounts for the major part—about fourin limiting the expansion in total energy use. fifths—of the total energy used by both the On the other hand, private and public efforts electric and gas utilities. Use of coal by the to reduce air pollution might have been expected electric utilities, however, has continued to exto increase energy requirements, but there was pand in 1973. no clear evidence by mid-1973 of a major im- In the final quarter of 1973 use of electricity in industries producing consumer goods and NOTE.—The author, who is Chief of the Business equipment was running about one-tenth above Conditions Section, Division of Research and Statistics, a year earlier. The total amount of energy conwishes to acknowledge the assistance of Mary Hedda Hillard and other members of the Section. sumed in the capital goods industries is rela- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 849A tively small, and the further expansion in those stage and type of product and then averaged for industries has been a major factor in the rise quarterly and annual intervals. The basic data in total industrial production this year. are mainly IP indexes, thermal units, and Considerable concern about gasoline short- foreign trade statistics.1 ages developed during the spring of 1973, but For this study a new measure of total U.S. by midyear, data suggested an improvement in energy production in all industrial sectors— market supplies of these and other energy end- mining, manufacturing and utilities—has been products. This improvement reflected mainly a developed. This measure is based on a combicontinued expansion in imports of crude oil, nation of selected IP series as listed with their which in turn provided the basis for some further relative importance in 1967 in the accompanyrise in petroleum refining from earlier near-ca- ing Table l.2 Movements in this measure are pacity operations. compared annually with total IP in this section. By autumn some further improvement in the The pattern of relative changes in the two underlying supply of energy relative to uses was measures is found to be broadly parallel, but indicated. This was not reflected, however, in the growth in energy production has usually an easier market situation for several reasons, been more stable than the growth in total IP. among others: increased energy holdings by As shown in Chart 1, energy production inusers, shifts in the usual supply channels in creased relative to IP during the intervals of anticipation of new shortages that might develop industrial curtailment or slowdown in 1970, later, and prospects of public controls over the 1967, 1960-61, 1957-58, and 1953-54, but not distribution of energy supplies and of much in 1949 when the coal industry was of much higher prices. U.S. imports of petroleum prod- greater importance.3 Factors limiting the recovucts reached new peaks in October and early ery in IP in 1971 that contributed to the contin- November. The announcements in October, uing gap are noted below and in 1971 Edition. however, of marked curtailments in shipments Over the whole period since the end of World of oil from the Middle East were followed by War II there has been a marked and almost projections of import curtailments that indicated steady expansion in production of energy endpetroleum supplies would be reduced to around products used for personal consumption and 1971 levels by early 1974. commercial purposes; only during periods of Finally, the study notes that increases in de- industrial readjustments affecting energy has mand for energy for the longer-run period ahead this expansion been interrupted. may be less than the earlier projections had indicated because of the possibility of important 1 These data are (1) the Federal Reserve industrial production index using both value-added combinations economies in the use of energy and the likeli- (IP) and individual production series—the latter are hood that the use of energy implied by the represented monthly in all of the energy industries by projected growth rates in GNP (full- physical product data, which usually have been subject to little revision (except for the gas utility series); (2) employment-potential) may have been too high. aggregate physical energy data in British thermal units (Btu's); and (3) U.S. foreign trade figures in physical product and Btu terms. ENERGY SUPPLIES 2 The IP series are combined with the regularly published value-added (unduplicated) weights used in cal- Total energy production—annual and culating total IP with data compiled from official sources quarterly measures. Most earlier studies of and described in the Board's publication Industrial energy requirements have drawn on historical, Production—1971 Edition (referred to henceforth as 1971 Edition), p. 51. Two new features of the revised annual data for final and intermediate uses, IP index facilitate study of major trends in energy. One which have been combined and projected on the provides for a more refined market grouping by separatbasis of coal, oil, or thermal-unit equivalents ing all products from materials. A second is the compilation of gross-value-weighted energy production series by several broad sectors of the economy. This that permit more appropriate comparisons with foreign study focuses attention on current and historical trade and other expenditure data. analysis in terms of both production data and 3 These data are plotted on uniformly proportioned ratio scales for most of the charts in this paper, with thermal units; it uses seasonally adjusted most figures for November 1973 preliminary and those monthly series that are grouped by industrial for December 1973 estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 FEDERAL RESERVE BULLETIN • DECEMBER 1973 For the postwar period as a whole the average rose at rates somewhat less than the rates of rate of increase per year for both energy pro- increase in IP. duction and total IP has been about 4.5 per cent. Quarterly seasonally adjusted movements of Increases in both series were above average in the annual data in Chart 1 are plotted in Chart the early part of the period and again mainly 2 for the period back to 1954 to provide a clearer from 1964 to 1969, reflecting in part the effects picture of the cyclical and other short-run flucof war-related influences on demands for indus- tuations in production. Energy production levtrial goods. In those intervals energy production eled off after the autumn of 1970 and then in October and November 1971 was reduced by a major strike in the coal industry. After recov- TABLE 1 ery from the strike, energy production has in- ENERGY PRODUCTION IN 1967 creased more slowly, particularly since the spring of 1972. Meanwhile, both total IP and British thermal units Value-added dollar total uses of energy have shown a renewed Line proportions of- No. Grouping and series Propor- expansion since the end of 1971. Tril- tions of Total Total lions total in The slower rate of increase recently in energy IP energy line 35 production has reflected an approach to near-ca- Total. 11.36 100.0 pacity operations with existing domestic sources 2 Energy end-products.. 5.05 44.5 24,551 56.1 and technology; on the other hand, the renewed 3 Consumer fuel 1.14 10.1 14,357 32.8 4 Automotive gasoline.. .85 7.5 9,671 22.1 expansion in energy uses has reflected in part 5 Distillate fuel .29 2.6 4,686 10.7 the sharp rise in IP and a recovery in the use 6 Consumer utilities. . 2.25 19.8 5,516 12.6 7 Residential electricity. 1.63 14.4 1,161 2.7 of energy for industrial processing purposes. 8 Residential gas .62 5.5 4,355 9.9 Such a rate of rise in IP, however, could not 9 Other energy products 1.66 14.6 4,678 10.7 have been expected to continue much longer— 10 Commercial and other electricity 1.28 11.3 930 2.1 even without the development of energy limita- 11 Co g m as m ercial and other .20 1.8 2,078 4.7 tions—because of both demand and short-run 12 Aviation fuel and kerosene .18 1,670 3.8 industrial capacity considerations. The sharply 13 Energy materials. . . 6.31 55.5 advanced rates of completion and occupancy of 14 Mineral fuels.... 4.60 40.5 53,124 15 Coal .70 6.1 14,174 residential, commercial, and public structures 1 1 6 7 C N r a u tu d r e a o l i g l as 2. . 9 6 5 7 2 5 6 . . 9 0 1 1 8 8 , ,1 7 0 53 0 since 1971 have also contributed to a further 18 Natural gas liquids. .29 2.5 2,097 rise in the use of energy end-products and these 19 Utility sales to industry 1.35 11.8 8,880 advanced rates of increase no longer prevail. 2 2 0 1 G El a e s c tricity 1 . .0 35 0 8 3. . 1 7 7 1 , , 2 6 2 5 1 9 Energy production by industrial stage. 22 Other energy Series on energy production—19 in all—acmaterials .36 3.1 3,778 23 Residual oil .05 0.4 1,735 count for 11.36 per cent of total IP in the 2 2 5 4 C Se o l k f- e g e a n n e d r a p t r e o d d ucts. .16 1.4 1,692 latest—1967—weight-base year.4 Since these electricity .15 1.3 351 and other component series of IP are combined 26 Primary energy 55,551 with value-added weights, they involve no dou- 27 Mineral fuels (14).... 53,124 ble counting. 28 Hydro and nuclear power 2, All 29 For use in industrial Value-added dollar proportions of the energy processing 19,245 43.9 30 Coal excluding utility series have been converted to proportions of use 7,085 16.2 total energy production (second column of Table 31 Direct sales of natural 32 Ga g s a s u tility sales 2 7, , 2 2 2 0 1 8 1 5 6 . . 0 5 1) for the present analysis. Close to one-half 33 Electricity(21 + 25).. 2,010 4.6 (44.5 per cent) of this new total is for end- 34 Residual oil excluding utility use 721 1.6 product uses (line 2), including final personal 35 Total final uses (2 + consumption (automotive gasoline, home heat- 29) 43,796 100.0 ing and lighting, and use of electricity and gas NOTE.—Value-added proportions from Industrial Production, 1971 for appliances and TV sets); commercial uses Edition, Table A-l. The IP series for anthracite and for AEC purchases of electricity from utilities (each .03 per cent) are not shown separately in this table, as noted on p. 854, which also describes the two additional series compiled for industrial self-generation (line 25) and direct 4The series listed in Table 1 includes a component sales by natural gas producers (line 31). Btu calculations and estimates for industrial self-generation (p. 854) of electricity, for hydro and nuclear power are from U.S. Department of the Interior and Federal Power Commission. which is only implicitly measured in total IP. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 851A (offices, stores, farms, and for public trans- results, but do provide broad measures of change. For portation purposes including aviation and diesel example, distillate oil is classified as an end-product fuel); and 4'other" electricity and gas uses in this study, but the 1967 Census of Manufactures reported that 65 million barrels—about 8 per cent of (public lighting, other public authorities, and total supply—were purchased by manufacturers. electrified rail transit).5 These output and uses The classification of aviation fuel and electricity and gas used for commercial purposes as end-products does •^The fact that portions of automotive gasoline and not conform with the conventional distinction between distillate oil are used for commercial purposes rather intermediate and final output used to derive GNP data. than final consumption does not impair these compari- The production measures follow the revised IP market sons as both are classified as end-product uses. At best, structure, which is more appropriate for the particular the various groupings in this analysis cannot yield exact study of energy uses. 11 ANNUAL MEASURES of INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 140 ENERGY NOTE.—For notes to all charts, see p. 870A. 2 I QUARTERLY MEASURES of INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 ENERGY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 FEDERAL RESERVE BULLETIN • DECEMBER 1973 data for the year 1967 are presented in Btu terms for the total economy, as measured by real in the diagram for domestic energy flows shown GNP, because production in the more volatile on page 853. sectors—business equipment, durable consumer The remaining 55.5 per cent of total value- goods, industrial materials, and the balance of added energy production is for the materials foreign merchandise trade—accounts for a much (line 13) used to produce energy end-products larger share of IP than of GNP (1971 Edition, and for industrial processing. Crude oil (line page 81). 16), for example, is used to produce such end- Moreover, there have been intervals—espeproducts as gasoline, distillate oil for home cially for monthly or quarterly periods—when heating, and aviation fuel (lines 4, 5, and 12) stocks of coal and petroleum have fluctuated by and also residual oil (line 23), which in turn more than seasonal amounts. If reliable data on is used in part to generate electricity for use the actual amounts of energy consumed were by industrial consumers (line 21), as well as available, they would probably show more stafor electricity use by residential and commercial bility than either the data for energy production customers (lines 7 and 10). or the data for final uses. For these reasons, Chart 3 presents quarterly average, seasonally and because coal production is more important adjusted IP measures of energy end-products in the energy materials measure than in total and of energy materials on a 1967 = 100 base. energy production, the strike in the coal industry The generally sustained upward trend in the in late 1971 had a greater effect on the materials end-products measure over the past two decades series shown in Chart 3 than on the total shown has been at an average annual rate of about 7 in Chart 2. More refined comparisons of the per cent—as compared with 4.5 per cent for production and use of energy materials for inthe total—and has been a dominant influence dustrial processing are presented later. on production of energy materials. Output of The marked divergence between the producmaterials, however, has been affected periodi- tion measures shown in Chart 3 has reflected cally by changes in the amount of energy used two major developments. One has been the for industrial processing, due to cyclical fluctua- rapid growth in electricity production. Most of tions in IP. These fluctuations are larger than this has been in output for residential and com- 3 | PRODUCTION of ENERGY by INDUSTRIAL STAGE RATIO SCALE, 1967=100 140 120 100 80 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 853A MAJOR DOMESTIC ENERGY FLOWS IN 1967 ]= TRILLION BTU PRIMARY SOURCES PETROLEUM REFINING ENERGY END-PRODUCTS mercial purposes, which account for more than in the accompanying flow diagram for domestic half of the value-added data used for the energy energy resources in the year 1967. end-products measure; over the same period, The left-hand portion of the diagram shows electricity output for industrial use, which ac- the major primary sources of energy and their counts for only about one-fifth of the energy approximate relative importance in Btu terms. materials measure, has grown—but at a slower Flows from these primary sources into intermerate than that for nonindustrial purposes. The diate and final uses of energy are shown in the second major factor accounting for the divergent remainder of the diagram. The three major intrends is that the shift to foreign sources of termediate uses are for petroleum refining, for energy has been greater for materials than for generation and transmission by the electric and end-products, as will be noted later. gas utilities, and for output of coke and prod- Btu output series. For the purpose of this ucts.6 study the Btu equivalent of each of the energy The right-hand portion of the diagram shows production series in IP has been compiled (third ^hree stages are represented in the case of residual column of Table 1). It is possible to combine oil produced from domestic crude oil and used to these data into a gross total Btu output series, generate electricity. A substantial portion of coal, howbut if that were done, most of the Btu's would ever, is represented at only one stage. A gross duplicated total of all of the Btu series in Table 1 would be duplicated because they are represented at amount to 92.5 trillion in 1967, which is nearly double more than one stage of output. This is illustrated the unduplicated Btu total. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 FEDERAL RESERVE BULLETIN • DECEMBER 1973 the final disposition of energy for end-product Such a measure of total primary energy output and industrial processing uses and the volume in Btu's for annual and quarterly periods has of coal exported. The Btu flows for these pur- been compiled by using IP series and their Btu poses (third and fourth columns of Table 1) equivalents in 1967.8 In Chart 4 the annual Btu reflect domestic production only and are less output series is compared with the total valuethan total final uses by the amount of net im- added production measure of energy presented ports. in Chart 1; both are shown on a 1946 compari- An unduplicated measure for total Btu output son base to indicate more clearly the extent of can be compiled by counting the Btu's only once differences since then. A third series, the ratio in their initial state. This can be accomplished between IP energy production and primary enby combining the Btu data for mineral (or fossil) ergy Btu output, is designated as (A)^-(B). fuels (listed separately in lines 15 through 18 A considerable number of primary energy in Table 1) with an allowance for the electricity Btu's are "lost" in their conversion to other produced from hydro and nuclear sources (line 28). This yields a total of 55,551 trillion Btu's for use with the Federal Power Commission kwh series for energy generated by industrial plants. in 1967.7 Finally, it may be noted that anthracite is combined with bituminous coal and classified as an energy material 7These figures include the Btu's used by industrial in Table 1, although for historical purposes anthracite plants for self-generation of electricity and the Btu's was classified as a consumer product in the 1971 Edition, provided by direct sales of natural gas producers to p. S-5. In 1970 use of anthracite by industry (including industrial users. The direct sales data are adjusted to electric utility generation) began to exceed use for exclude the amounts of gas used for electricity genera- residential and commercial purposes. tion and have been compiled mainly from reports of ^hese calculations may be illustrated with the autothe American Gas Association and the U.S. Department motive gasoline series in 1967 and 1968. The Btu figure of the Interior. Direct sales are in addition to the volume for that series in Table 1 is 9,671 trillion, which is of natural gas purchased for distribution and resale by based on production of 1,843 million barrels in 1967 utilities. Direct sales are not separately measured in the multiplied by 5.2 million Btu's per barrel. The IP index IP index, but are represented in the natural gas produc- for automotive gasoline in 1968 was 105.2, with tion series. 1967=100. This index number multiplied by 9,671 The data for self-generation of electricity by industry trillion is equal to 10,174 trillion. Similar calculations are implicitly measured in IP, and for the purpose of for all end-products yield a total of 25,973 trillion Btu's this analysis a special value-added weight was derived in 1968 versus the 24,551 trillion figure for 1967. 4 | ENERGY PRODUCTION MEASURES RATIO SCALE, 1946=100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 855A energy materials and to energy end-products. Foreign trade and new supplies of en- The persistent rise in the ratio reflects mainly ergy. Because of the continued growth in U.S. two factors: the relatively larger portion of value use of energy and the pressure on domestic added for the electricity series (generation and capacity for energy output, there has been a shift distribution) in the production measure and the to foreign sources in recent years.9 From Table generally faster growth in electricity than in 2 it is possible to see how major components other energy series. The total weight for the of U.S. foreign trade in energy in 1973 compare electricity series in the IP production measure with those for 1967. The sizable volume of U.S. shown in Table 1 is 36 per cent in 1967. TABLE 2 However, electricity provides a much smaller portion of Btu supplies. U.S. FOREIGN TRADE IN ENERGY A second factor contributing to the slower In trillions of Btu's growth of the Btu series has been the increased efficiency in electricity generation—mainly in 1967 11997733 the 1948 to 1959 interval. During that period SSeerriieess NNeett Net iimmppoorrttss the scale of power generation installations was Exports Imports imports greatly increased from the average size of Total 1,725 5,685 3,960 11,950 prewar facilities and the amount of electricity 1,381 5 -1,376 -1,200 generated per unit of energy materials consumed 149 2,317 2,168 6,400 Natural gas 84 582 498 1,000 rose about 30 per cent. Residual oil 75 2,489 2,414 4,600 The differences indicated here by the ratio Distillate oil 25 108 83 700 Aviation fuel and kerosene. 11 184 173 450 between the primary energy Btu output series and the IP energy production measure reflect NOTE.—Figures for 1973 partly estimated by Federal Reserve. Basic data reported by the U.S. Department of the Interior. in large part the markedly different movements of the production measure component for end- exports of bituminous coal has been mainly to products, shown quarterly in Chart 3. Average Canada, Japan, and Western Europe. The large movements of the IP energy component for increase in volume of U.S. energy imports since materials behave quite similarly to the primary 1967 has been mainly in crude oil, natural gas, energy Btu series—although there are a number and residual oil. Some other products such as of differences in the series represented and in liquefied natural gas are expected to be imported their relative importance. Annual differences in in substantial volume in the period ahead. changes since 1954 have usually been less than Total net imports of energy beginning in 1946 0.5 per cent, and a comparison of aggregate are shown annually in the lower panel of Chart differences over the 19-year period up to 1973 5 (arithmetic scale). There was a net export shows that the rise for the energy materials balance in 1946-48 and a relatively small net series has been only 4 per cent larger than that import balance until 1958, when the import for Btu's. Since 1970 quarterly movements of balance began to increase. After showing a the former series in Chart 3 have shown little slow, limited growth through 1970, the rate of further increase—about the same as the Btu growth in net imports began to rise more sharply output series. and in 1973 reached 12.8 quadrillion Btu's. Data for four major components of the Btu The upper panel of Chart 5 indicates that there output series are shown separately for quarterly was little rise in the relative importance of net intervals in recent years—including the last 9Where used in the accompanying charts and tables, business cycle peak in 1969—in the lower left data for energy imports and exports are expressed in panel of Chart 6 (arithmetic scale) on page 857. Btu terms at seasonally adjusted, annual rates. The data In that comparison the output data for natural for Chart 6 and Table 2 are broadly equivalent and have been compiled from reports of the U.S. Department of gas and natural gas liquids are combined. When the Interior and of the Bureau of Census. The net import the annual totals for those series are combined figures used in Chart 5 have been compiled from the with crude oil, total coal, and hydro and nuclear annual net trade data published in U.S. Energy Through the Year 2000 (U.S. Department of the Interior, Deelectricity, the combination is equivalent to the cember 1972). These data are more inclusive than the primary energy Btu output series in Chart 4. figures in Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 FEDERAL RESERVE BULLETIN • DECEMBER 1973 5 | ENERGY: OUTPUT, NET IMPORTS, and NEW SUPPLY 1947 '49 '51 '53 '55 '57 '59 '61 '63 '65 '67 '69 '71 '73 imports during the period 1959 through 1970— oil products, crude oil, and natural gas in Btu the change was from 6 to 8 per cent—and that terms (middle left panel). more significant increases occurred in 1971 and Chart 6 provides a broad outline of the ana- 1972. Then in 1973 such imports reached about lytical approach used by this study of the U.S. 16.5 per cent of the total new domestic supply energy situation. Thus, seasonally adjusted IP of energy. These calculations were made by indexes and foreign trade data in barrels (oil), combining net imports of all energy—including petroleum products and the primary energy TABLE 3 series for crude oil and natural gas—with the U.S. NEW SUPPLY OF ENERGY IN 1967 primary energy Btu output series in Chart 4. In trillions of Btu's The resulting measure for the total new domestic supply of energy will be referred to henceforth Production as the "new energy supply."10 L N in o e . Series T ( a f b ro le m 1 ) im N p e o t r ts su N p e p w l y The new energy supply series, shown annually in Chart 5, is presented quarterly in Chart 1 Total 0) 3,960 59,511 6 (upper left panel). Chart 6 also shows the 2 Energy end products 24,551 256 25,807 5 Distillate oil 44,,668866 83 44,,776699 components—the individual Btu output series 12 Aviation fuel and kerosene 1,670 173 1,843 (lower left panel, with data for coal both as a 13 Energy materials 3,704 total and minus exports), and import series for 14 Mineral fuels 53,124 1,290 54,414 15 Coal 14,174 -1,376 12,798 16 Crude oil 18,100 2,168 20,268 17 Natural gas 18,753 498 19,251 22 Other energy materials. 3,778 2,414 6,192 10 In Table 3 the production figures for 1967 are 23 Residual oil 1,735 2,414 4,149 repeated from Table 1 and combined with net imports for that year to provide the new supply figures shown 26 Primary energy 55,551 1,290 56,841 in the final column for the various major energy subto- 29 For use in industrial tals involved in this study. For the total in 1967 the processing 19,245 1,038 20,283 35 Total final uses (2 + 29).. 43,796 1,294 45,080 amount is listed as 59,511 trillion Btu's (55,551 + 3,960) rather than the sum of primary energy output 1 See note in text, page 856. and imports only in the form of primary energy (1,294). NOTE.—Sources are same as for Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 857A RECENT QUARTERLY MOVEMENTS tons (coal), cubic feet (natural gas), kilowatt in U.S. ENERGY hours (electricity), and therms (gas utility sales) are expressed in Btu's at annual rates and are NEW SUPPLY FINAL USES QUADRILLIONS OF Btu's combined to provide the total new supply series H 1 in the top left panel. Btu data have also been used to compile two series for energy use—one for end-products and one for industrial processing, as described later in this study. The two new series on energy use are shown separately in the right panel and are combined to provide a total. Quarterly differences between the latter total and the total new supply series are plotted in the lower right panel as a measure of "conversion losses, etc.," which is described on page 868. The series for new energy supply increased at a steady rate of about 5 per cent a year over the 1964-70 period. This represented an accelerated rate of increase in new supplies and uses as compared with the earlier post-World-War-II period and reflected mainly the rapid increases in industrial processing that accompanied the unprecedented 7-year industrial expansion during most of the Vietnam war period. The earlier, slower growth in energy reflected in part the previously noted increases in efficiency in electricity generation and the deeper, recurring cyclical adjustments in industrial processing uses. Visible stocks of energy. Monthly and quarterly changes in physical stocks of energy are largely seasonal in nature.11 For the most part, annual changes in new energy supplies appear to have been fairly close to changes in final consumption. Although there have been fairly large changes in the visible stocks data in certain years, some of these changes, as indicated in footnote 11, are of questionable value in measuring energy consumption. It is CONVERSION LOSSES, etc. necessary to interpret reported changes in visible 11 The compilation of detailed allowances for changes in energy stocks to measure energy consumption more closely might yield more stable results than are provided by some of the production and final uses series. Nevertheless, such adjustments would necessarily be incomplete and in some periods would reflect sizable discrepancies in data. For example, see the unaccounted-for amounts of changes in consumption of coal from 1947 to 1948, from 1953 to 1955, and from 1964 to 1965 and of petroleum from 1959 to 1960 and for some other years, as shown in Table 17 of U.S. Energy 1973 1969 Through the Year 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 FEDERAL RESERVE BULLETIN • DECEMBER 1973 stocks of energy with considerable reservation, Available data on visible energy stocks have mainly because of the limited sample of report- been combined on a Btu basis in Chart 7. From ing industrial establishments in the case of coal the chart it is possible to see broad movements and the lack of reports on the considerable in such stocks over the post-World-War-II volume of "invisible" stocks of petroleum period and to compare changes in these stocks products. These are stocks held by distributors with the growth of new energy supplies.12 It and by business and government establishments may be inferred from this chart that visible and households. Such holdings have probably stocks in recent years have amounted to a little grown fairly steadily over the past several dec- more than a 2-month supply. These data, it ades, in line with the increased use of petroleum should be noted, relate only to fossil fuels, and products by these groups. they include imported as well as domestically During short-run periods of cyclical changes produced supplies. It is also of interest to obin demands and prices in the past, invisible serve that these visible stocks of energy have stocks of goods have usually tended to move been declining relative to new supplies (or sales) inversely in comparison with the visible stocks since the 1950's—as has been generally true for data. Hence in recent months the prospects of inventories of goods as reported by business. energy shortages probably have influenced con- Since the energy stocks series is only partial sumers to accumulate energy stocks, while visi- and since it includes both materials and prodble stocks have changed little or been reduced. ucts, it cannot very appropriately be used to Some evidence of these increases in invisible adjust either the new supply or final uses data. stocks is provided by preliminary data on the The figures employed in this study for electricity "demand" for distillate and residual oils. According to those statistics, demand for the 3 12 Basic stocks data are reported for (1) natural gas in storage reservoirs by the American Gas Association; months ending October was running 16 per cent (2) fuel oil stocks at electric utilities by the Federal above its year-earlier level. It is unlikely that Power Commission; and (3) bituminous coal stocks at actual consumption of those products would electric utilities, manufacturing, and mining establishments, and retail dealers; and crude oil, unfinished oils, have increased by more than one-third of that natural gasoline, and refined products, at refineries and figure. bulk terminals, by the U.S. Department of the Interior. 7 | ENERGY: STOCKS and NEW SUPPLY RATIO SCALE, QUADRILLIONS OF Btu's RATIO SCALE, QUADRILLIONS OF Btu's 14 12 10 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 859A and gas utility sales and industrial self-genera- 8 I OIL and GAS PRODUCTION tion, however, do represent actual consumption, RATIO SCALE, MILLIONS OF FEET and they account for nearly one-half of the final uses total shown in Table 1. 00 Petroleum: Oil and gas well-drilling and 80 output. Movements in the components of primary energy production in this country in recent 60 years have been quite diverse. Coal production has been fairly stable over the past decade. 40 Meanwhile, the changes in output of natural gas and petroleum have usually been wider than 20 those for coal—except for strike-effects in the RATIO SCALE, QUADRILLIONS OF Btu's coal industry. Although recent reports have noted a 4 per cent decline in coal output in the 45 first half of this year compared with the same 40 period of 1972, the current supply situation for coal is not that unfavorable. In the earlier 35 period, output of coal had been at moderately advanced levels, and since the first half of this year it has expanded again. Meanwhile, coal exports have fallen off in recent months so the new supply of coal available for domestic use mestic mineral fuels, petroleum-refining capachas been running about 9 per cent above a year ity considerations have had important effects on earlier. output of oil products from both domestic and During the 1963-67 period there was a imported crude oil (with the sulfur content of marked decrease in oil and gas well-drilling the available crude representing an additional activity, and a renewed downturn occurred in problem). Refinery capacity increased by about 1970 and early 1971, as indicated in Chart 8.13 one-fifth from the end of 1967 to the end of Since then there has been a sizable recovery in 1972. This was a higher rate of capacity expanwell-drilling activity, however, and by the sion than during the earlier part of the 1960's, fourth quarter of 1973 such activity somewhat but the further expansion—one-tenth—in refinexceeded the 1969 level. ery operations since 1970 has almost entirely A total measure of oil and gas extraction, eliminated the earlier capacity gap, as shown compiled by combining five component IP in- in Chart 9.14 The lack of further expansion in dexes with Btu weights, is shown in Chart 8 refinery capacity, which resulted from interreon a quarterly seasonally adjusted basis. Ex- lated industry and public policies, was a factor pansion in such extraction ended in 1970, and limiting supplies of gasoline and other major a downturn occurred in the second half of 1971. oil products earlier this year. National levels of In 1972 extraction rose again as State oil-allow- refinery operations reached an average of 99 per able quotas in Texas were raised to 100 per cent cent of capacity in the second quarter of 1973. of legally established maximum efficient rates. Production and imports of petroleum prod- Since then, however, increased output in that ucts. An over-all picture of quarterly changes State has been offset in part by the decreases in production and imports of petroleum in recent that have continued in other oil and gas fields. years is provided in Chart 10; the data are shown Refinery capacity and operations. In addition to the near-limits reached in production of do- 14 These data are based on Federal Reserve compilations from American Petroleum Institute and IP indexes 13The well-drilling series is based on quarterly for the oil refining total (SIC 291,9). It may be noted averages of the monthly seasonally adjusted IP index that during the past summer a number of major compafor oil and gas well-drilling activity adjusted to annual nies announced plans to increase refinery capacity subdata on the total footage of wells drilled. stantially further. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 FEDERAL RESERVE BULLETIN • DECEMBER 1973 9 | PETROLEUM REFINING RATIO SCALE, 1967 0UTPUT=100 CAPACITY ^ S ^ S' -^^PRODUCTION i r BUN' iHHHHN HHhBHHWHI • HBB mBbM HUH HH m II r • 1 I 1 1 1949 '51 '53 '55 '57 '59 '61 '63 'S5 '67 '69 '71 '73 on an arithmetic scale and are expressed in the sharply advanced levels of gasoline producmillions of barrels per day (seasonally adjusted), tion in the second and third quarters, which was which facilitates comparisons among individual achieved in part by curtailing output of other products and with crude oil. For crude oil the products. It may be noted in passing that nearly series on output and imports from Chart 6 are all of the imports of aviation fuel are held in combined in the left panel of Chart 10 to show bond for use in international traffic rather than total new supply and the increased dependence for domestic use. on imports since mid-1971. The supply of residual oil, which has been These crude oil supplies provide the input for used mainly by the electric utility industry and the refinery production index in Chart 9 for industrial processing purposes, is dependent (1967=100), which is compiled by combining largely on imports; measured in barrels, such IP indexes for major products with value-added oil supplies account for about 75 per cent of weights. Production of the same major refinery total imports of refined products. The volume products is shown in the center panel of Chart of residual oil used for heating purposes, which 10, but here the total is expressed in number has amounted to about 20 per cent of the total of barrels, which results in reducing the relative in recent years, cannot be shown in this chart importance of gasoline. The figures in the center since such data are not available separately for panel of Chart 10 indicate the moderately domestic and import sources. growing U.S. dependence on total imports of In considering the prospective effects on dorefined products since 1969; this dependence mestic supplies of the expected major curtailshowed some acceleration in the second half of ments in Middle East oil shipments, it may be this year. noted that such shipments have accounted for The volume of automotive gasoline has only a portion of the increased volume of U.S. usually accounted for about one-half of total imports over the past couple of years. It is refinery production, while the volume of distil- uncertain how deep and how long the curtaillates—mainly used for heating and other end- ments may be and what influences these curtailproduct purposes, including diesel fuel—has ments may have on alternative sources of U.S. accounted for around one-fourth. The step-up imports. in refinery operations to increase domestic sup- The following section provides a summary of plies of gasoline earlier this year is shown by the official appraisal of the outlook. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 861A 10 I PETROLEUM: NEW SUPPLY, IMPORTS, and PRODUCTION CRUDE OIL REFINERY PRODUCTS MILLIONS OF BARRELS PER DAY t i » i • MM Miscellaneous Products Aviation Fuel and Kerosene • • •• .'I • t I I o 1969 1971 1973 1969 1971 1973 1969 1971 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Domestic demand for petroleum products. tankers were expected to arrive from the Middle An aggregate of the major petroleum flows East by late November, the latest weekly figures shown in Chart 10, with a summary of the available—those through December 7—indicate near-term total petroleum situation as provided little over-all reduction in total imports of peby recent official statements, is presented in troleum to that date, and fourth-quarter average Chart 11. The left panel shows quarterly average imports are estimated to be close to their thirddata for total domestic demand for all oils, as quarter record levels. published monthly by the Department of the The extent to which the projected shortfalls Interior in millions of barrels per day without develop remains to be seen. It is possible for seasonal adjustment. The bottom line, called example, as was noted earlier, that in the fourth ''domestic production," represents largely and first quarters the expansion in petroleum and crude oil and natural gas liquids (in the data other energy uses may not continue to increase shown in Chart 6, the latter figures were in- as much as during the earlier recovery period cluded as a component of total natural gas and from the 1969-71 recession. Moreover, other gas liquids output). The differences between the factors may affect production and demand in domestic production and the total demand data varying degrees, depending on circumare total imports of crude oil and of refined stances—such as the extent and direction of products, shown separately in Chart 10. variations from normal in this winter's temper- Figures plotted in the upper curve for the atures, development of alternative sources of oil fourth quarter of this year and the first quarter supplies, amounts by which domestic and of next year in the left panel of Chart 11 show foreign stocks of oil will be drawn down, impact the levels cited in the material accompanying of higher prices, and effects of conservation the Presidential statement of November 25 as efforts. being those that demands would have reached The right panel of Chart 11 shows the same had petroleum supplies not been limited by the quarterly petroleum series in barrels on a sea- Middle East embargoes. This chart also indi- sonally adjusted basis. The official projections cates the official estimates of the amounts of of the unadjusted data for the fourth and first the shortfalls that were projected to develop as quarters have been seasonally adjusted by the a result of prospective declines in imports. Federal Reserve. The problems of developing These were put at 1.4 million barrels per day adequate seasonal adjustment factors in a period in the fourth quarter of 1973 and 3.5 million of limited supplies are greater than under more in the first quarter of 1974. Although the last usual demand and supply conditions. For these and other reasons it is fairly uncertain what the official projected shortfalls may be on a season- DOMESTIC DEMAND for u 11 PETROLEUM PRODUCTS ally adjusted basis, but should they develop in these amounts, the volume of takings would be RATIO SCALE, MILLIONS OF BARRELS PER DAY at about 1971 levels. ENERGY USES New supply of energy relative to total production. As noted earlier, total energy use is a combination of (1) the fairly steady expansion in energy end-products and (2) the more \MM volatile growth of energy used in industrial processing. The rates of change for the second purpose have varied considerably from time to ^ DOMESTIC PRODUCTION time, and there have even been short-term decreases for 6 months or so. Thus, in periods of sharp curtailments in business inventories, which have usually been largest in industrial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 863A materials, cutbacks in both production and use Chart 12 provides a comparison of changes of energy may be significant because such in- in relationships between the total new energy dustries as basic chemicals, paper, and primary supply (from Chart 5) and industrial developmetals are heavy consumers of energy. Such ments as measured by total IP. The initial year cutbacks did not occur during the 1969-71 eco- shown (1946) is used as the comparison base nomic readjustment, however, largely because in order to limit the crisscrossing of the series business inventories of industrial materials were plotted; use of 1946 also provides more susnot reduced. During that period, continued in- tainable production-consumption relationships flationary expectations were a factor limiting the because there was less accumulation of primary cutback in such inventories. energy stocks in 1946 than in 1947. Moreover, During the second quarter of 1973 domestic it provides a better perspective on the 1948-49 production of such major materials as cement, industrial readjustment and on economic develchemicals, paper, petroleum products, and pri- opments over the following decade. mary metals—groups that together account for In this comparison it should be noted that IP a very large portion of total industrial energy includes output of the electric and gas utility, requirements—reached near-capacity levels. In coke, and petroleum refining industries as well view of the limited domestic supplies of energy as output of the energy materials used to supply it is possible that production of these major those industries. This representation affects the materials could not have been expanded much movements of IP relative to energy as measured further even if their manufacturing capacity had by a ratio between the two that is designated been more adequate. Also, since production of (A) -5- (B). Mainly because of the increased such materials reached near-capacity, it is un- efficiency in generating electricity, this ratio likely that large additional increases in energy rises about one-fourth from 1946 tp 1953. Duruse for those purposes will be needed until ing most of the period since then, but exclusive manufacturers add to their capacity to produce of the 1965-71 period, there has been a further such materials. irregular upward trend in the relationship of IP 12 | ENERGY RELATIVE to IP and REAL GNP ~ ~ ^ — — — — —c a le 1946=10 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 FEDERAL RESERVE BULLETIN • DECEMBER 1973 to energy supplies. As will be discussed later, beginning in 1946. This series is based on the the high plateau reached from 1965 to 1969 Btu data in the third and fourth columns of reflected shifts in the composition of IP during Table 1 (lines 2 to 12).16 It is the approximate that period, which were subsequently reversed counterpart of the value-added IP index for in 1970-71. end-products plotted in Chart 3 and is based on From 1971 to 1972 IP increased 7 per cent the same lines in the second column of Table and then rose further by about 9 per cent in 1. Because the electricity series is relatively less 1973. Over the past year, however, the new important in the Btu measure, this energy endenergy supply increased only about 3.5 per cent. product series grows much less rapidly than the Consequently, the ratio of IP per unit of energy value-added production measure. increased further in this period, following a rise These data do not support the view that there in 1972 from the reduced level in 1971, to about has been a significant acceleration in recent 5 per cent. years in the final (nonindustrial) use of energy These results, based on changes in the rela- in the United States. The Btu energy end-prodtionship of IP to the total new energy supply, ucts measure has grown at a fairly steady 4.5 represent a larger proportion of the fluctuations per cent annual rate over the past two decades. in industrial use of energy, and they show some The higher rate that had prevailed in the differences in trend, as compared with those in 1946-51 interval—5 to 6 per cent—reflected in the relationship of GNP (real GNP -5-.B) to total part post-World-War-II reconversion needs. new energy supply.15 From the mid-1940's to Net imports of energy end-products are also the 1953-62 decade the IP-based ratio was added to, as well as shown separately from, above the GNP ratio by one-fifth or more, and domestic output in Chart 13. These imports are during the 1966-70 period the margin widened mainly distillate oil and aviation fuel. It may to one-third. Following a marked downturn in be noted, however, that imports make up a both ratios in 1970, the IP ratio was about much less important part of the total for energy one-fifth higher than in the mid-1950's while end-products than for energy materials. Althe GNP ratio was only about 5 per cent above though gasoline has been in limited domestic its earlier level. If one assumes that IP will supply this year, relative costs and other concontinue its long-term growth relative to the siderations apparently have not resulted in an total economy (as compared with the GNP data appreciable volume of automotive gasoline imdiscussed on pages 81-84 in the 1971 Edition), ports, as was shown in Chart 10. It is apparent the rising efficiency of energy utilization since from Chart 13 and other data that changes in 1971 has important implications for growth in total production of energy end-products have the industrial sector and in the total economy. been affected only moderately by cyclical read- Energy end-products—output, new sup- justments in the economy. ply, and value. The remaining charts in this The value of energy end-products in 1963 study have been designed mainly to analyze totaled $28.9 billion, according to the grossenergy uses for end-products and for industrial value-weighted series in the 1971 Edition of IP. processing purposes, separately as well as in Allowing for increases both in prices since 1963 combination. Consideration is given first to the and in production since 1967, the value of such end-product data. According to the annual data output in the fourth quarter of 1973 is estimated in Chart 13, this series has exhibited a relatively at an annual rate of about $85 billion, as shown stable but marked growth for the whole period in Table 4. In addition, an estimated $21 billion 15 Such calculations for the annual amounts of energy 16 To represent more adequately the importance of consumption per constant dollar of GNP were made by these uses, sales of residual fuel oil for heating, vessels, the U.S. Department of the Interior beginning in 1947 and military purposes—amounting in 1972 to about 2 (Table 2 in U.S. Energy Through the Year 2000). The quadrillion Btu's, or 5 per cent of the total—have been data in that publication for 4'gross energy" Btu input added to the end-product series in Charts 6 and 13 and move similarly to the annual series for new energy subtracted from industrial processing, as footnoted on supply shown in Chart 12. p. 866. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 865A TABLE 4 VALUE OF OUTPUT OF ENERGY END-PRODUCTS In millions of dollars Total. 28,851 52,530 85,450 Consumer fuel 11,762 17,640 36,210 Automotive gasoline 8,895 13,570 26,710 Distillate oil 2,867 4,070 9,500 Consumer utilities 9,211 19,580 25,120 Residential electricity 5,651 14,240 18,130 Residential gas 3,560 5,340 6,990 Other energy products 7,878 15,310 24,120 Commercial and other electricity 4,370 10,320 13,180 Commercial and other gas 1,104 2,090 2,740 Aviation fuel and kerosene 2,404 2,900 8,200 NOTE.—Data for 1963 compiled from Industrial Production, 1971 Edition, Table A-l. Federal Reserve estimates for Q4 1973 are at seasonally adjusted annual rates, based on data from U.S. Department of the Interior and U.S. Department of Labor. was expended in the final distribution of these tures are largely of a nondeferrable nature, of products, including mainly payment of various more importance to total economic activity over State and local taxes on automotive gasoline. the longer-run period are the problems of ex- This would make total final expenditures in the panding supplies of energy materials from dofourth quarter of 1973 about $106 billion or 8 mestic and import sources and also of expanding per cent of total GNP. Although these expendi- petroleum-refining capacity. 13 | ENERGY END-PRODUCTS RATIO SCALE, QUADRILLIONS OF Btu's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Industrial processing and energy uses. A slowed to about 4 per cent per year until the new annual measure of industrial processing per mid-1960's. Thereafter, further increases were unit of energy has been compiled back to 1946, followed by decreases in 1967 and 1970, but as shown by the ratio (A) -r- (B) on a 1946 data for 1971-73 indicate a renewed rapid rate comparison base in Chart 14. This chart also of expansion. presents a series for industrial processing and The advanced level of the relationship during an energy series from which the ratio was de- the 1965-69 period reflected in part the sharply veloped. The industrial processing series repre- increased levels of defense equipment in IP. sents all manufacturing, mining, and utility ac- Production of business equipment, partly for tivities (total IP) except for the energy produc- related reasons, also reached advanced levels tion series listed in Table 1. For the most during that period. Production of equipment appropriate comparison of available energy with requires much less energy per unit than either the industrial processing measure, data are ex- consumer goods or the industrial materials cluded on energy produced for use by the utility needed in their production (equipment repreindustries and for conversion within the manu- sented one-fifth of IP in 1967, but only a small facturing sector to other forms of energy, as in percentage of total energy used by industry). the case of coke and petroleum products.17 The major curtailments during the 1969-70 Chart 14 indicates that industrial processing industrial readjustment were in production of per unit of energy has increased by about 140 equipment (both business and defense); the per cent since 1946. There was a rapid expan- over-all decline amounted to 18 per cent—about sion from the late 1940's to the mid-1950's. as much as in any other postwar period (1971 Subsequently the average rate of increase Edition, page 17). However, in contrast to earlier postwar readjustments there was little curtailment in either production or business inven- 17 For this purpose allowances are made to exclude tories of major industrial materials. the amounts of coal, oil, and natural gas used by the Industrial processing activity, as represented electric and gas utilities. This is accomplished by including only the amount of natural gas production sold by total IP excluding energy, declined by 5 per directly to nonutility industries, as was noted on page cent from 1969 to 1970, as shown in Chart 14. 854, and by excluding the quantities of coal and feul With the energy supply rising 4 per cent further, oil that are reported to be consumed by the utilities (for the whole interval covered in addition to the 1967 base a drop of 8 per cent occurred in the ratio of period shown in Table 1). Since separate data are not industrial processing to energy. This drop was available on the volume of fuels consumed by industrial followed by some recovery in the ratio in 1971 self-generators, there is some overstatement in the Btu figures available for use in industrial processing. and sharp increases in 1972 and 1973. These Also data for crude oil, natural gas, and natural gas appear to have been made possible in part by liquids are not included in this comparison of new a marked increase in business equipment producsupplies of energy available for industrial processing because they are used mainly in the production of more tion; such activity, which has been a major advanced energy materials and of energy end-products. factor in the expansion of industrial production, Coke is not included because it is produced from other requires relatively smaller amounts of energy, as energy materials. The energy materials that are combined for industrial was previously noted. Also, much higher costs processing are shown in Btu terms for 1967 in the and limited supplies of energy have apparently supplementary subtotal in Table 1 (lines 29 to 34). stimulated major efficiencies in energy use by These data as plotted in Charts 6 and 14 are adjusted for exports of coal and imports of residual oil. Also, industrial users. as was footnoted on page 864, these data exclude sales A quarterly breakdown of the major energy of residual oil used for heating, for vessels, and for uses represented by components of the Btu military purposes. Because of the actual and prospective strike influ- measure of energy for processing, as presented ences affecting coal and steel output in 1971, data for in Charts 6 and 14, is provided for recent years the coal component of the industrial processing series in the left panel of Chart 15 (arithmetic scale). have been interpolated quarterly for 1971 on the basis of Department of the Interior data on nonutility indus- The gas component is by far the most signifitrial consumption of coal and IP indexes for materials. cant—with about three-fourths of its total amount Some additional adjustments were made for 1972 and represented by gas utility sales to industrial 1973 to provide a better approximation of nonutility industrial consumption of coal. establishments and the remainder by direct pur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 867A 14 | INDUSTRIAL PROCESSING and ENERGY RATIO SCALE, 1946=100 TOTAL INDUSTRIAL PRODUCTION EXCLUDING ENERGY (A) ^ ENERGY FOR PROCESSING (B) chases of industry. The latter are reported only lished quarterly breakdown of data for industrial for annual intervals. consumption of electricity is discussed below Coal uses for industrial processing, exclusive in connection with Chart 16. of the amounts used to generate electricity for Some perspective on these uses of energy for industrial consumption, are shown in this chart industrial processing is provided in the right to have been of declining importance, but they panel of Chart 15, which shows quarterly data still account for about one-fifth of the total, in Btu terms on the amounts of energy, by type, which amounted to about 19.5 quadrillion Btu's used by the electric and gas utilities. There too, in 1973 (Chart 6). Residual oil uses for indus- of course, natural gas is of overwhelming imtrial processing showed only a small percentage portance. About one-half of the total volume gain from 1971 to 1972, and by 1973 such uses of gas distributed by the gas utility industry is probably still amounted to about 5 per cent of shown (in the left panel) to have been sold for the total.18 industrial purposes, while the remainder is sold Electricity used by industrial establish- for residential and commercial and other uses. ments—including amounts for lighting and air Coal use for electric utility power generation conditioning, as well as for motive and proc- has continued to grow strongly over the past essing purposes—accounts for only about one- year. Reported data on use and stocks of gas eighth of the Btu's consumed by industry, but and oil by electric utilities since December 1972 such energy serves a great many convenient and have not yet been tabulated by the compiling unique production purposes. A hitherto unpub- agency. By the end of last year the volume of natural gas use accounted for about one-fourth 18These relate only to "industrial" uses as classified of the total and the amount of fuel oil use was in the U.S. Department of the Interior release "Fuel even less. In 1972 nearly 90 per cent of the Oil Sales, Annual." Including all uses of fuel oil by oil was represented by residual types. manufacturing and mining establishments, the preliminary Census figures for 1971 indicate a total of 268 The prospect of a strike in the steel industry million barrels. Adding petrochemical and other petrobeginning August 1, 1971, affected both deleum uses, the total amount was probably about 2 quadrillion Btu's. mand for and output of industrial energy within Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 FEDERAL RESERVE BULLETIN • DECEMBER 1973 that year. It was a dominant influence on coal 15 | MAJOR IP USES of ENERGY production because the iron and steel industry INDUSTRIAL PROCESSING UTILITY USES OF ENERGY accounts for about one-half of the coal (and BY ENERGY SOURCE coke) used in manufacturing. Therefore, output QUADRILLIONS OF Btu's of energy for industrial processing was at a GAS UTILITIES relatively high level during the first half of 1971—despite the general recession in economic activity—and then it declined in the second half. These recent developments for both industrial processing and energy end-products are summarized by the quarterly movements in the GAS, TOTAL upper right panel of Chart 6. The series for "Conversion losses, etc." reflects energy losses in conversion and transmission, output of nonfuel products such as chemicals and lubricants produced from energy materials, changes in ELECTRIC UTILITIES industry stocks (both reported and invisible), and any statistical discrepancies. The series shows a substantial, irregular growth, but its relative movements are fairly close to the GAS UTILITY SALES movements of the total new supply series, as is indicated by the changes shown in Chart 17. FRS electric power data. A major supple- COAL mental source of information on current uses of energy for industrial processing is provided by the Federal Reserve monthly series on electricity classified separately by about 200 S.I.C. industries. The data collected by the 12 Federal Reserve Banks are based on a combination of kilowatt hour sales by electric utilities (including cooperatives and government agencies as COAL well as investor-owned companies) and the number of kilowatt hours provided by industrial self-generation (which in some districts is supplemented by reports from the Federal Power Commission). These series are in the process of detailed review prior to their publication for the period beginning in January 1963. Although still preliminary, the data are presented as quarterly averages in Chart 16 (arithmetic scale) for major ELECTRICITY industrial markets. They show the relatively limited amounts of total electricity consumed by the equipment industries and the large use of RESIDUAL OIL electric power—about seven-tenths in recent years—in the manufacture of industrial materials.19 19 This footnote appears on page 869. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 869A OVER-ALL CONDITIONS end-products and for industrial processing, a After a review of the longer-run pattern of summary of developments in the past decade changes in output and in use of energy for seems in order. Chart 17 provides such an defense equipment. This is a statistical measurement 19 In IP one-half of Atomic Energy Commission pro- convention, which has not been employed to allocate duction is assigned to materials and the remainder to AEC purchases of electricity. 16 | ELECTRICITY USE by MAJOR INDUSTRIAL MARKETS MATERIALS PRODUCTS MMm CHEMICAL, PAPER, TEXTILE, AND OTHER NONDURABLE MATERIALS EXCLUDING AEC PRIMARY METALS CONSUMER GOODS OTHER DURABLE GOODS MATERIALS EQUIPMENT Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 FEDERAL RESERVE BULLETIN • DECEMBER 1973 for several quarterly intervals when there were 17 j TOTAL ENERGY major strikes, the two series indicate a rough correspondence in quarterly movements back to the beginning of 1963. Changes in visible energy stocks are also shown, in the bottom panel, and they usually indicate no significant relation to differences in the movements between the series for new supply and final uses. In recent years the new supply series has expanded more than the final use index. The difference reflects in part the large relative shifts 10 in the Btu's used for industrial processing, the CHANGES IN VISIBLE STOCKS . further sustained growth in electricity for endproduct uses (and added conversion losses reflected only in new supplies), and a faster rise in petrochemical uses. A remaining but indeterover-all comparison, on a quarterly basis, of minant amount probably reflects the still predevelopments beginning in 1963. All of the liminary nature of the energy data for the past underlying data used for this chart are based 2 years.20 on Btu's at seasonally adjusted annual rates. The index for final uses shows a relatively Total energy—new supply and uses. The steady annual rate of growth—between 4 and two series in the top panel of Chart 17 are the 5 per cent—from 1963 until late 1970 when same as those plotted in the top panels of Chart there was a leveling off. At that time decreases 6. The new supply series is expressed in qua- in industrial processing began to offset further drillion Btu's, while the series for final uses is increases in end-products. The upturn was reexpressed as an index number—with new sup- newed in 1972 when IP began to rise rapidly. plies in 1967 (60.6 quadrillion Btu's), adjusted Since 1969 the over-all annual rate of growth for changes in energy stocks in that year, equal in energy use has been about 3 per cent. From to 100. The choice of 1967 as a compari- the fourth quarter of 1971 to the third quarter son-base year is advantageous because it was of this year, during the renewed expansion in a period when new supplies of energy exceeded the economy, the rate of rise was fairly steady the amount used, and there was some accumu- at about 4 per cent. The fourth-quarter average lation of stocks—typical in a growing industry. is expected to be off somewhat—with weekly It is also the year generally used as the compar- data indicating declines beginning in the latter ison-base period for official index numbers. part of November. The determination of the amount of adjust- The new supply series continued to expand ment needed for over-all changes in energy in the first half of 1971, reflecting in part a stocks in 1967 is necessarily arbitrary for the marked accumulation of energy stocks. This reasons discussed earlier. The adjustment accumulation was sharply curtailed by the strike employed here is mainly a device to recognize in the coal industry during the fourth quarter the differences in levels between the new supply of that year. After a recovery in coal production and the final use series in Chart 6, which represent the fossil fuel losses involved in electricity 20 For the purposes of this study some revisions have conversion and transmission and the remaining been made in the gas utility sales series for 1971-73 that have not yet been carried into the presently pubitems mentioned above. The amounts of those lished IP indexes, and a projection for direct sales of differences appear to be largely proportionate natural gas to industry in the recent period has been to changes in the new supply series, as is estimated in advance of the publication of all of the demonstrated by the broad similarity of behavior related data. This projection is based on a comparison of the total new supply of natural gas and sales by the of the two series in Chart 17. Except mainly gas utility industry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. ENERGY SUPPLIES AND USES 870A and increases in domestic output and imports forth—are all factors in maintaining an adequate of oil and gas, the supply series reached a new flow of energy for domestic purposes. record level by mid-1972. Subsequently there The official projections of energy use was little change, with the margin between the have assumed a full-employment growth rate supply and use measures reaching its narrowest for real GNP of 4.3 per cent a year to 1980 point (since the 1971 strike) in the second and 4 per cent thereafter.21 The actual average quarter of this year. Some expansion in the rate of increase in real GNP from 1946 to 1971 second quarter was followed by a larger rise was 3.7 per cent a year. If the growth rate in the third quarter and by a leveling off in the should turn out to be less than assumed, the fourth. margin of prospective energy supplies may be Seasonal and other considerations. All of larger than has been indicated by those projecthe charts in this study that show annual data tions. and those based on quarterly seasonally adjusted It may be noted that all of the energyseries do not indicate the relatively large sea- use comparisons in this study are based on sonal fluctuations in consumption and output of longer-run historical relationships and that such energy. Nor do they show the wide ranges in relationships may change in the period ahead the geographical dispersion of those movements as a result of developing market and techowing partly to extremes in weather and tem- nological factors. For nearly all of the time peratures. Seasonal fluctuations range from period used in these comparisons, energy supmonthly and weekly intervals to only a few plies were relatively ample and cheap. In anminutes in the case of regional demand peaks other period, such as one of higher costs and for electricity. more limited supplies, unforeseen developments In addition there are many major problems in both uses and supplies of energy are likely relating to the proximity to, and ownership of, to occur. sources of energy—both within this country and abroad. These and various other consid- 21 From U.S. Energy Through the Year 2000, p. 14. Higher growth rates are projected for IP in that publicaerations—such as cost-price relations, foreign tion but they apparently were not used in the calculatrade policies, pollution problems, and so tions. NOTES TO CHARTS General: The Btu data in Charts 5, 6, 7, 13, and 17 are at annual All quarterly data (except those for the left panel of Chart 11) are seasonally adjusted. rates. Specific : Chart 10 Chart 13 Crude oil includes lease condensate. Miscellaneous products For a discussion of the coverage of "Including residual oil," include lubricants. see footnotes 17 and 18 to the text. Chart 11 Chart 15 Figures for fourth quarter 1973 and first quarter 1974 for Figures for residual oil are only annual. demand and for projected shortfalls are taken from materials accompanying the Presidential statement of November 25, Chart 16 1973. Domestic production includes data on changes in stocks and Data are quarterly averages. Figures for Atomic Energy some other items used to derive the data for total domestic Commission purchases are those reported by the Federal Power demand apart from imports. Commission. Chart 17 The index for final uses is equated in 1967 to the volume of new supplies adjusted for changes in stocks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations Interim Report This interim report, covering the period August orderly market and moderate any serious erosion through October 1973, is the second of a series of dollar rates. Over these 2 days and again providing information on Treasury and System briefly later in the month, the System sold a foreign exchange operations to supplement the total of $54.5 million equivalent of marks drawn regular series of semiannual reports that are under the swap line with the German Federal usually issued each March and September. It Bank, while the German central bank made was prepared by Charles A. Coombs, Special modest purchases of dollars in Frankfurt. The Manager of the System Open Market Account, dollar then firmed, and the Federal Reserve was and Senior Vice President in charge of the able to repurchase in the market the German Foreign Department of the Federal Reserve marks needed to liquidate the swap drawings Bank of New York. on the German Federal Bank. By late August and early September, trading As related in the previous report, on July 10 conditions had become more orderly, with much the Federal Reserve resumed intervention in the narrower fluctuations in rates from day to day exchange markets and by the end of July had as well as during trading sessions. In this atsold a total of $273 million equivalent of foreign mosphere of greater stability the market showed currencies—$220 million of German marks, much improved resilience in absorbing the $47 million of French francs, and $6 million shocks of adverse political and economic news of Belgian francs. These operations were fi- here and abroad. During this period the Federal nanced by drawings under the swap arrange- Reserve stood ready to intervene on a number ments with the respective central banks. Over of occasions, but operations were required only the first 2 weeks of August the dollar strength- once. On September 6, just ahead of official ened as a liquidity squeeze in Germany eased, announcement of the August wholesale price interest rates in New York rose, and the market figures, the dollar came under some pressure and responded to favorable U.S. trade figures for the Federal Reserve sold $8.2 million equivalent June. With this shift in the international flow of marks, of which $3.9 million was drawn of funds, the Federal Reserve readily acquired under the swap line. The dollar then quickly through the market the foreign currencies rebounded, and the System was able to repurneeded to repay the entire $273 million equiva- chase the marks needed to repay this swap lent of swap drawings incurred in July. The only commitment. intervention by the Federal Reserve during early On September 15, the Netherlands revalued August was the sale of $4.2 million of marks, the guilder by 5 per cent against other European using existing balances, when the dollar had a Community (EC) currencies in the fixed-rate temporary setback on August 7. bloc. This move came as a surprise to the The dollar's rise stalled in mid-August when markets, and speculation soon developed over market worries over price trends and political possible revaluations or devaluations of other uncertainties in the United States surfaced once EC currencies. Consequently, there were heavy again. As more bad news generated new selling flows into the German mark and Belgian franc pressure on the dollar on August 20 and 21, and out of the French franc, leading to substanthe Federal Reserve reentered the market as a tial intervention by the central banks involved seller of German marks in order to maintain an in the EC 44snake." Such speculation in the 871 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 FEDERAL RESERVE BULLETIN • DECEMBER 1973 European currency exchanges soon spilled over selling $2.9 million equivalent drawn under the into the dollar market. As the dollar began to swap line with the Dutch central bank. drop, the Federal Reserve again stepped in, in Late in October, the dramatic shift in the coordination with the German Federal Bank, to basic U.S. trading position was underscored by moderate the decline of the dollar-mark rate. the announcement of an $873 million trade At the same time, the Belgian and French au- surplus for September. By that time, also, inthorities took monetary and exchange control terest rates in the United States were on the measures to curb the pressures on the EC band. rebound and a cease-fire had been negotiated This firm official response effectively broke the in the Mideast. Consequently, the dollar came speculative wave, and as dollar rates bottomed into strong demand, advancing across the board out and began to rise, the Federal Reserve against the major European currencies. By the continued to intervene to help along the recovery. In this sequence of operations, between FEDERAL RESERVE SYSTEM DRAWINGS AND September 17 and 26 the Federal Reserve sold REPAYMENTS UNDER RECIPROCAL CURRENCY $156.7 million equivalent of German marks ARRANGEMENTS drawn under the swap line, while the German In millions of dollars equivalent Federal Bank intervened in Frankfurt by buying System Drawings, System nearly $140 million. swap or repay- swap commit- ments (-) commit- The exchange markets again turned quiet Transactions with— ments, Aug. 1 ments, through late September and early October. Un- July 31, through Oct. 31, 1973 Oct. 1 1973 derlying trade and investment flows tended to buoy the dollar, and as the dollar firmed, the National Bank of Belgium .. 396.0 4 i_23 8 f 272-2 Federal Reserve was able to purchase sufficient Bank of France 47.0 I ^q} marks to repay $86.1 million of the outstanding swap debt to the German Federal Bank. The German Federal Bank 220.5 improvement in the dollar was again inter- Netherlands Bank j_ ^g\ rupted, however, as short-term interest rates in Swiss National Bank 565.0 *" 565.0 this country fell sharply, political uncertainties Bank for International Settleheightened, and war broke out in the Mideast. me T n o ts t a ( l Swiss francs) 1, 6 8 0 2 0 8 . . 0 4 r j —630 21 1,4 6 3 0 7 0 .0 2 On October 10, when the news of Vice President Agnew's resignation hit the markets in the NOTE.—Discrepancies in totals are due to rounding. early afternoon, selling pressure on the dollar intensified. At this point, the Federal Reserve end of October, the Federal Reserve was able again intervened with an unusually heavy offer- to purchase in the market sufficient marks and ing of marks, of which $21 million equivalent Dutch guilders to repay fully the $91.5 million was sold. These sales were financed by a further and $2.9 million, respectively, of swap drawdrawing under the swap line with the German ings outstanding in those currencies. Thus, for Federal Bank, bringing the outstanding swap the period August through October, System debt to $91.5 million equivalent. The dollar then intervention totaled $247.5 million, of which steadied, and no further intervention in marks $238.9 million was drawn and repaid under was required through the month-end. swap lines. In summary, since the resumption During October, the Dutch guilder moved to of exchange market intervention in July, the the top of the EC band. The guilder's rise System had drawn and repaid a total of $512.4 stemmed mainly from a liquidity squeeze in million of German marks, French francs, Bel- Amsterdam, but revaluation rumors began to gian francs, and Dutch guilders. Coordinated circulate once again. In conjunction with the intervention in the dollar market by the German Netherlands Bank's own sizable purchases of Federal Bank over the same period amounted dollars in Amsterdam, on October 23 the Fed- to nearly $500 million. eral Reserve offered guilders in New York, In other operations, beginning in August the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 873 Federal Reserve resumed modest daily pur- the end of October compared with $3,045 milchases of Belgian francs in the market to repay lion outstanding on August 15, 1971. swap drawings outstanding from the National Finally, the U.S. Treasury redeemed at ma- Bank of Belgium since August 1971. By Oc- turity the last of its mark-denominated securitober 31 some $117.8 million of those drawings ties, a $172.4 million equivalent security held had been repaid, leaving $272.2 million equiv- by the German Federal Bank. The Treasury also alent remaining. Combined with the $1,165 refinanced with the Swiss National Bank a Swiss million of Swiss franc swap drawings also out- franc-denominated security amounting to $63.6 standing since August 1971, this brought total million equivalent originally held by the Bank System swap obligations to $1,437 million at for International Settlements. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by George W. Mitchell, Vice Chair- It can be effected quickly and can serve until man, Board of Governors of the Federal Re- the Congress chooses to address itself to the serve System, before the Subcommittee on Bank broader issues involving the role of thrift insti- Supervision and Insurance of the Committee on tutions in the Nation's financial system. Its Banking and Currency, House of Repre- implementation now appears imminent. But let sentatives, November 26, 1973. me describe the development and nature of the new system. I am pleased to be here to present the views of the Board of Governors on a feature of the THE DEVELOPMENT OF THE AUTOMATED rapidly evolving payments mechanism in which CLEARINGHOUSE you have a particular interest—namely, the way in which thrift institutions can receive electronic In California and in Georgia pathbreaking techwage and salary payments in much the same nical changes are being worked out. These permanner as they now handle salary checks. At mit the conversion of payrolls from individual the same time I would like to summarize recent checks—each of which must be sorted, counted, developments in payments technology and accounted for and routed by a combination of Board actions bearing on these developments low speed machine and hand labor, at substanand to suggest in a very general way where we tial cost to all parties involved—to deposit inseem to be headed in the development of elec- structions electronically imprinted upon magtronic credit and debit transfers. netic tape. The electronic instructions are passed The problem of immediate concern involves to banks receiving the deposits through autoa broad issue on which the Congress may wish mated clearinghouses, quickly, at very low unit to provide guidance and a narrower issue of the cost, and with much improved certainty and mechanics of money transfer. I would like to safety. Savings institutions are now concerned, set aside, for the moment, the broad issue—that and understandably so, about the manner in of the means of participation of thrift institutions which they can receive electronically directed in money transfer—and clarify, if I can, a purely deposits emanating from an automated clearing technical matter of moving funds electronically. system that they did not create and in which This issue has arisen because savings and loan they are not member participants. associations want to be able to receive their An electronic funds transfer system sponsored customers' payroll deposits as electronic pay- by the California Automated Clearinghouse Asments in much the same manner they now sociation began to function in October 1972. receive payroll checks. Commercial banks, on The Georgia Automated Clearinghouse Associthe other hand, in light of their innovative effort ation started operations in May of this year. The in developing the necessary software and legal California association includes 111 banks in the framework, and because they have assumed Los Angeles-San Francisco area, and the Georliability for transmission errors or failures, have gia association includes 178 banks in Georgia. sought to be satisfied that participation of thrift The two electronic payments associations clear institutions would not create complications that transfers among their members through automight disadvantage them or their customers. mated clearinghouses in which the equipment There is a technical arrangement for crediting is owned and operated by the Federal Reserve payroll checks to accounts in savings and loan System, in Los Angeles, San Francisco, and associations that could function equitably and, Atlanta. The automated clearinghouse is the I am convinced, satisfactorily for all concerned. electronic counterpart of check-clearing facili- 874 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ties owned and operated by the Federal Reserve main lines. One is directed at meeting the needs at 43 locations in the United States. of business organizations and governments that The electronic facilities at commercial banks make income payments in large volume. These linked to the Federal Reserve automated clear- payments are usually repetitive as to recipients inghouses were privately developed and and are preponderantly for wages and salaries, equipped over the past several years, with the dividends, interest, annuities, and retirement advice and technical help of the Federal Re- and welfare programs. Since the payment funcserve, and they now operate at private expense. tion is usually centralized in organizations mak- Participating banks deliver to the Federal Re- ing such payments, conversion to an electronic serve electronically recorded instructions for the system involves a minimum of disturbance to transfer of funds from one institution to another. existing arrangements. Income crediting is op- A computer sorts the instructions and makes erational today but in very small volumes. There deductions from the reserve accounts of banks are, however, active plans to dramatically infrom which funds are being transferred, and crease the use of this technique in 1974. credits the reserve accounts of banks to which The other chief line of development serves funds are being transferred. Electronic mes- the needs of the individual consumer whose sages, tapes, or cards with instructions for de- payment volume is small, irregular in timing, biting or crediting the accounts of individual and does not originate at a single location, but, customers are made and delivered to partici- more often than not, occurs at the place of pating banks. purchase of some good or service—thence, the These arrangements, again, parallel electron- designation, 4 'point-of-sale.'' Point-of-sale ically the debiting and crediting processes that transfer is not operational, except experioccur in check clearing. But due to the fact that mentally, in the United States, but there has little or no paper need be handled, the clearing been enough study and pilot experience to jusis done at a cost in terms of mills per item, tify confidence in its operational feasibility. rather than the cents per item cost of paper check These two emerging developments accomhandling. This results in large savings for all modate another payments arrangement in which participants, including the Federal Reserve. consumers agree to permit their accounts to be A principal use currently being made of these electronically debited for contractual obligasystems is payroll deposit. An employer tions, such as insurance premiums, rents, mortprepares a magnetic tape with instructions to the gage and instalment credit payments, and for employer's bank to make payroll deposits at utility bills, credit-card purchases and similar banks and account numbers supplied by em- type payments. The income crediting machinery ployees. The employer's bank extracts any de- is best adapted to these "pre-authorized" payposits being made in that bank, and sends the ments but "point-of-sale" mechanics could also remainder of the instructions on to the auto- be used. mated clearinghouse. There, as described above, the pay of other employees is distributed ACCESS BY A PAYABLE-THROUGH by electronic processing to their banks and to TRANSFER their accounts. Since this means of handling A feasible and immediately available method of payrolls is a repetitive process, and involves access to the benefits of electronic transfer for large numbers of payments, substantial savsavings institutions, and one that appeals to us ings—both public and private—can be made, as being equitable and fair to all, would be an and it is thus a natural and beneficial application adaptation of the "payable-through" draft. of electronic transfer. Savings banks have been using this technique for some time. Adapted to electronic transfer, MAIN LINES OF DEVELOPMENT IN it can be used for credits as well as debits. To ELECTRONIC PAYMENT explain: The electronic payments system now seems to Access by a thrift institution to electronic be developing in the United States along two transfer of funds involving an automated clear- 875 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 FEDERAL RESERVE BULLETIN • DECEMBER 1973 inghouse would, in the payable-through with Bank B instead of with Bank A. Everything process, involve a number identifying the insti- would then go on as before. tution in an operationally feasible way. The Other solutions to this problem have been clearinghouse computers would be able to asso- advanced. Some have advocated the assignment ciate deposits bound for a particular savings and of a regular bank number, thus implying that loan with a commercial bank through which the savings and loan associations, for clearing pursavings and loan was participating in the clear- poses, should be treated exactly as commercial ing and settlements process. banks. Others have suggested that the home loan Specifically, an employee wishing to have his banks be participants in the clearing process and pay deposited automatically in a savings and all debits and credits to accounts in savings and loan would provide his employer with the loan associations should be routed through the number assigned to his savings and loan, to- home loan banks. gether with his personal account number. Using The first of these suggestions would add to this number, the employer would provide his Federal Reserve costs by increasing the number commercial bank with instructions on magnetic of "end points" to which it would need to make tape to deposit the employee's pay in the savings daily sorts and delivery. Looking ahead to the and loan. The employer's bank would send precedent for future policy, if all thrift institutaped instructions to the automated clear- tions, or even the large ones were included in inghouse. There, the clearing computer would this system, thousands of new end points would recognize the identifying number as that of a be added. (There are 4,300 savings and loan savings and loan clearing through a certain associations, 390 mutual savings banks, and commercial bank. It would credit the payroll 23,000 credit unions in the Nation.) deposit to that bank which, in turn, would credit Since present channels can be used to achieve it to the indicated savings and loan. This would essentially the same result, it does not seem be accomplished in the same time span as ap- desirable to treat the thrift institution exactly as plicable to customer deposits in a commercial commercial banks are treated in this respect bank. unless they become more like banks in other The payable-through method would operate respects, or until the Congress considers the without inconvenience to the savings and loan basic questions involved in such a transition. depositor: he would be dealing directly with his A similar line of thinking applies to incorposavings and loan just as if he carried his check rating a check-clearing function into the activithere for deposit. The commercial bank through ties of the home loan banks. It may be that which payment was made would be involved Congress will find this to be desirable at some only as an agent of the savings and loan. The point, but such an arrangement is not necessary, savings and loan customer would need no con- in our opinion, to provide a thoroughly equitable tact with the commercial bank to effect pre-au- and equivalent treatment for savings and loans thorized deposits in (or withdrawals from) his in the receipt of payroll deposits. Thus, the account at the savings and loan. payable-through method involves minimal cost Payable-through clearing would have a fur- to the Federal Reserve and imposes no unfair ther advantage, from the point of view of the burdens of cost or inconvenience elsewhere. savings and loan and from the point of view Considerations of equity, as well as of costs of a competitive financial system. It would per- to the Federal Reserve (and, indirectly, to the mit a savings and loan to select the commercial Treasury), are involved in the question of bank offering it the most advantageous arrange- access. The Board has stated its general views, ments—and to change its agent bank if it as you know, Mr. Chairman, in a letter I adwished—without disturbing payments arrange- dressed to you on March 21 in response to ments with its customer. The savings and loan questions you had raised about the operation of would merely tell the clearinghouse to repro- the California Automated Clearing House. I gram its computers, so that the number identi- should like to ask to include that letter in the fying the savings and loan would be associated record of this hearing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 877 The letter noted the Board's belief that the Making this standard usage for checks made the public system using check or electronic transfer machine processing of checks possible. That, of funds from one institution to another should I might add, required a public education task be such as to insure that the conditions of entry similar to that needed now to bring to the public into a general clearing arrangement are fair, and the benefits of electronic funds transfer. that equitable treatment is assured for institu- More recently, guidelines for regional overtions with similar powers and responsibilities. night check clearing arrangements were an- Let me just emphasize, in ending these re- nounced by the Board on February 3, 1972, as marks concerning the technique of access to an effort to squeeze as much efficiency as possielectronic funds transfer, some of the broader ble out of the check. This has now resulted in questions invoked by that problem. All institu- a national network of regional clearance centers, tions should have access on terms that place no mostly located at Federal Reserve Banks or unfair burdens on any. The very great benefits branch banks, currently clearing more than half that will result from electronic funds transfer the checks handled by the Federal Reserve on should be equitably related to the pattern in an overnight basis. which the costs of electronic transfer—both The regional overnight clearance system was private and public costs—are borne. The even- established in furtherance of a policy statement tual system involving all financial institutions issued by the Board on June 18, 1971. This wishing to participate in it should offer the called for "basic changes in the Nation's system maximum convenience to its users, small and for handling money payments [that] are, essenlarge. And that system should be such as to tially, transitional steps toward replacing the use preserve competition in the types of service of checks with electronic transfer of funds." offered, the convenience of the service, and the This announcement, in turn, rested upon the cost of it, so that the incentive to innovation fact that since 1968 the Federal Reserve had is encouraged, and the benefits of innovation been engaged in building up a computerized are widely distributed. communications network, linking the Board and all Federal Reserve Banks and branch banks. THE RESPONSIBILITY FOR AN EFFICIENT This network has now been brought to a high PAYMENTS SYSTEM state of operational capacity, and can be extended to direct links with commercial banks. Senator Carter Glass commented, at the time of the passage of the Federal Reserve Act: THE BOARD'S REQUEST FOR COMMENT ON THE DEVELOPMENT OF ELECTRONIC ... If the Board will have the wisdom and courage to establish . .. a comprehensive TRANSFER and economical plan of bank clearings, it will The development of electronic funds transfer be difficult to compute the advantages that this section of the currency bill will secure . . . systems calls for an overhaul and extension of (1951 Congressional Record, Part 17, p. the Federal Reserve's Regulation J, which pres- 563). ently governs only the collection of checks The Board's efforts with regard to the devel- through the Federal Reserve. The Board one opment of an electronic transfer system have week ago published for comment such a revision been focused on general and equitable enjoy- of Regulation J, and I am submitting a copy ment of these benefits. of it for your records. The proposed revision More than a decade ago, the Federal Reserve, suggests a legal framework for electronic funds in collaboration with the Nation's banks, took transfer, both the passing of credit, and the an important step toward stretching the viable collection of payments. life of the check payments system by developing But the Board, in proposing this regulatory the method of magnetic ink encoding on checks modernization, recognized that the development with bank account and routing numbers, to of electronic funds transfer involves new relawhich magnetic ink encoding of the amount of tionships and roles for various institutions, pubthe check is added in the clearance process. lic and private. The Board, therefore, went Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 FEDERAL RESERVE BULLETIN • DECEMBER 1973 beyond the specifics of the rule changes it was to electronic transfer will give ample opportusuggesting and asked for comment also on the nity and incentive for innovation to continue to basic structure of the Nation's payments mech- occur in electronic transfer facilities, and to be anism, and the appropriate roles in it of the put to timely use. Federal Reserve and other institutions. Technological change can alter institutional The range of questions on which the Board relationships. Here also, avoidance of rigidities requested comment in connection with Regula- in either public or private policy will permit us tion J so as to accommodate electronic transfer to accommodate not only to technical change delineates, in broad form, the main public pol- but also to altered relationships among financial icy questions arising from this technological institutions. development. I want, therefore, to cite the main issues on which we seek advice. SOME CONCLUSIONS The Board asked for comment on basic issues Let me add only a few words of emphasis and including: conclusion: 1. The appropriate roles in the ownership and There are no technical barriers to the spread operation of an electronic payments system— of electronic funds transfer. It parallels all the including adjuncts thereto—of (a) the Federal Reserve System, (b) other public bodies, and (c) work done by the check system, and does it individual or groups of private institutions, in- better, more cheaply, faster, and at greater concluding commercial banks, automated clear- venience to all users of the payments system. inghouses, credit card companies, thrift institu- The new payments system should aim at bringtions, credit unions, the "bank wire," and other institutions or organizations such as those specified ing into the payments mechanism the money in the attached proposal; transfer needs of that substantial part of the 2. The extent and the conditions of access to Nation's families not now using the check systhe electronic funds transfer system by various tem. kinds of depositor institutions, and of other finan- The allocation of the costs of electronic funds cial institutions, as well as the terms of access; transfer among its vendors and its users—both 3. How the cost of electronic funds transfer should be allocated, including such questions as public and private—must be such that the econwhether the Federal Reserve should charge for the omies realized from electronic transfer are use of its facilities; if so, against whom should spread fairly. the charges be levied, whether they should cover There should be a public presence in elecall costs, and whether reserves maintained by tronic transfer, to the extent necessary to guarmember banks should be taken into account in any fee schedule which might differentiate between antee that the new payments system develops Federal Reserve member and nonmember institu- in a way that makes it capable of doing the job tions. of money transfer, from whatever quarter, We expect to benefit substantially from the without unwarranted exclusions of would-be response we receive with respect to these issues, participants. A goal of the public presence including—perhaps I should say particu- should be provision of a maximum range of larly—the advice we receive from the Congress. different services—including credit cards and Policies or attitudes that inhibit participation other payment ''concentrators"—compatible in the economies and added capacities that will with the degree of technological uniformity be provided by future electronic technological necessary to ensure efficient operation. development tie us to obsolete costs and incon- The Board looks forward, in the discharge venience. By avoiding rigidities, the policies of its segment of responsibility in this area, to and attitudes of both public and private parties the advice and encouragement of the Congress. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 879 Statement by Arthur F. Burns, Chairman, After our intervention in July and the release Board of Governors of the Federal Reserve of favorable U.S. trade and payments figures, System, before the Subcommittee on Interna- the dollar strengthened by about 3 per cent tional Finance of the Committee on Banking and during the first weeks of August. There was little Currency, House of Representatives, December further change in the dollar's value until late 5, 1973. October, at which time the announcement of a large trade surplus for September triggered an- I am pleased to appear before this committee other sharp advance. In recent weeks the dollar to discuss recent developments in foreign ex- has strengthened further in relation to the major change markets and in the balance of payments. European currencies and the Japanese yen. The This year has been characterized by alter- appreciation of the dollar against the yen would nating periods of turbulence and stability in have been even greater if the Bank of Japan exchange markets. You will recall that, follow- had not intervened in the market by making ing several weeks of severe disturbance in ex- large sales of dollars. By the end of November, change markets, the dollar was devalued for a the average dollar price of the 10 major currensecond time on February 12. At that time, Italy cies mentioned earlier had returned to the level and Japan chose to float their currencies, thus that ruled between mid-March and mid-May; in joining the Canadian dollar, British pound, and other words, it was again some 20 per cent Swiss franc—which were already floating. New above the exchange parities prevailing in the pressures in exchange markets developed in late spring of 1970—or slightly above the level in February and early March and led to a further the week following the February 12 devaluation. extension of floating among major currencies. Some market observers have pointed to an- Over the next 2 months, the average dollar ticipations of the impact of oil restrictions by price of 10 major currencies (those of Japan, Arab countries as a factor contributing to these Canada, and eight European nations) stabilized developments in recent weeks. Others have at a level some 20 per cent above the exchange cited the stabilizing effects of official intervenparities prevailing in the spring of 1970. In tion by the Federal Reserve and other monetary mid-May of this year, however, the dollar again authorities. There is no doubt in my mind, began to decline sharply, so that by July the however, that the basic factor has been the average dollar price of these 10 currencies in- decisive turnaround in the U.S. balance of paycreased an additional 10 per cent. ments. New evidence of this fundamental im- This further substantial depreciation of the provement in our payments position has been dollar did not seem consistent with international accumulating with each passing month. price levels or with longer-term prospects for Our exports have been rising at an extraorour balance of trade or payments. Moreover, dinary rate this year. Measured in current dolfluctuations of exchange rates from day to day lars, exports in the third quarter were 47 per and from hour to hour had become more pro- cent above their level in the third quarter of nounced. In these circumstances, and after full 1972. Much of this increase is accounted for consultation with the Treasury and repre- by rising prices. But even in real terms, exports sentatives of other countries, the Federal Re- grew 23 per cent over this period. The big serve began on July 10 to intervene in the increase in our agricultural exports—from an exchange market. Through the month of Oc- annual rate of $9V2 billion in the third quarter tober, the System sold a total of $512 million of 1972 to some $19 billion in the third quarter of European currencies, mainly German marks, of this year—has received a great deal of pubdrawing on the swap lines to finance this inter- licity. It is less often appreciated that nonagrivention. By the end of that month, enough cultural exports, which account for about threemarks, French francs, Belgian francs, and fourths of our total exports, have been expand- Dutch guilders were purchased in the market ing at extraordinarily rapid rates as well. to repay in fuJJ these earlier swap drawings. Part of the strong showing of exports is at- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

880 FEDERAL RESERVE BULLETIN • DECEMBER 1973 tributable to last year's poor harvests abroad and result, the official settlements balance was actuthe current worldwide industrial boom. But the ally in surplus during both the second and third improvement also reflects a lesser rate of infla- quarters. Preliminary data for October and Notion in the United States than in other industrial vember suggest that the surplus has continued countries and, far more important than this, the into the present quarter. cumulating effects of the depreciation of the Short-term prospects for the balance of paydollar since 1971. ments have become clouded, however, by re- The changes in our international competi- cent developments in the oil situation. The price tiveness resulting from the depreciation of the of our oil imports has risen spectacularly, from dollar are having an effect on our imports as an average of $2.75 per barrel in the first quarter well as on our exports. In real terms, imports of 1973 to over $5.00 currently. The boycott actually declined between the first and third by Arab producers has begun to reduce our quarters of this year, despite the strength of petroleum imports and, if continued, will reduce domestic demands. The value of imports did our imports next year by some 3 million barrels increase at an annual rate of 14 per cent during per day below the amount that had been exthat period, but only because of increases in pected to be available. Even so, in view of the their dollar price. recent sharp price increases, our total payments As a result of these developments, the trade for oil imports in 1974 will probably exceed balance has moved from a deficit of nearly $7 by a substantial margin the $8 billion paid in billion in 1972 to a surplus at an annual rate 1973. Of course, if world trade in oil were to of $3 billion in the third quarter of this year. resume a more normal pattern at these astro- The trade balance continued to be in surplus nomic prices, the cost of our oil imports would at a substantial rate in October. It therefore now rise still more steeply. However, the net impact seems likely that the United States will have on our over-all balance of payments will be a trade surplus, albeit of modest size, for 1973 substantially less or could even be favorable, as a whole. since a good part of the increased payments for The balance of international flows of long- oil by the United States and other countries term private capital has also moved in our favor would find its way back to this country, directly this year. Outflows of capital have moderated or indirectly, in the form of increased exports, since the first quarter and are estimated to have or capital inflows, or income receipts. slowed sharply in the third quarter. Prior to the Whatever effects the oil shortage may have recent decline in stock market prices, renewed on our balance of trade and payments, a more confidence in the dollar helped to stimulate immediate concern is the impact on domestic foreign purchases of U.S. securities. Foreign production and employment. A reduction in direct investment in this country has also been imports of crude oil and petroleum products by substantial this year. These developments re- 3 million barrels per day amounts to a shortfall flect, among other factors, the improved profit- of more than 15 per cent from estimated deability of producing internationally traded goods mands for this source of energy. Only a small within the United States compared with produc- part of this shortfall could be made up during tion abroad. 1974 by increased domestic output of crude oil, The basic balance—that is, the aggregate of or by substitution of other fuels for petroleum all current international transactions and long- products. In the short run, there are only limited term capital flows—has been strengthening possibilities for substituting other fuel for oil throughout this year. The improvement in the in industrial plants, or for altering techniques third quarter was dramatic enough to produce of production in ways that reduce dependence a large surplus—the first quarterly surplus we upon petroleum products. have experienced since 1969. Net flows of The President's program to conserve fuel short-term capital have also been favorable to recognizes this basic fact and is therefore the United States since the first quarter. As a oriented toward economizing end-product uses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 881 —such as reduced consumption of gasoline in on many fronts—nuclear energy, solar energy, passenger cars and reduced amounts of oil for coal conversion, exploration for oil. Recent heating homes and commercial and industrial events should teach us that, even with a relaxbuildings. To keep the oil shortage from gen- ation of the current boycott, we cannot remain erating major economic dislocations, our citi- so heavily dependent on oil supplies from zens will have to go to some trouble and put foreign nations. up for a time with various inconveniences. Some months will need to elapse before the There is no practical alternative for the immedi- long-run implications of the oil problem for our ate future if seriously adverse effects on pro- balance of payments are clarified. So far at least, duction and employment are to be avoided. the restrictions on oil supply appear to have At best, a prolonged embargo on Arabian oil strengthened the world's confidence in the dolshipments to the United States will result in lar. But even before the Middle East conflict some economic dislocation next year. The de- erupted, the dollar was viewed with renewed mand for new cars, for tires and other auto parts, esteem. The dollar is again a strong currency, for suburban housing, for recreational vehicles, and we can expect further support to our foreign for restaurant meals, and for other travel-related trade and payments from the lagged effects of expenditures will be adversely affected; com- past exchange rate changes. mercial airlines will reduce their purchases of Continued strength in the balance of payjet aircraft; and fewer motels and vacation ments will require, however, a satisfactory dohomes will be constructed. These developments mestic price performance relative to other will be offset in part by larger activity in other countries. A year or two ago our rate of inflation trades—ranging from coal to blankets and was substantially lower than that of other insweaters, and from drilling machinery to bi- dustrial countries. Unfortunately, a large part cycles and buses. Our inflationary problem, of this margin of competitive advantage has meanwhile, will be aggravated by rising gas and eroded in recent months. In October the conoil prices. sumer price index was 0.8 per cent above Sep- The situation in which we find ourselves is tember and 7.9 per cent above October 1972. obviously very difficult, but I believe it is man- Clearly, the dangers of inflation remain very ageable. The underlying strength and resilience much with us. At the same time, as I have of our economy must never be underestimated. already noted, the oil shortage will cause shifts Capital spending plans of business remain in the structure of industry and will have adverse strong, as do inventory demands for a host of effects on over-all production and employment. materials and components that have been in Economic policy in the months ahead thus faces short supply for many months. Our principal the extremely difficult task of contributing to the asset—the resourcefulness of the American objective of regaining price stability, while at people—remains entirely intact. As 1974 moves the same time minimizing the risks of any on, I would expect the domestic output of crude extensive weakening in economic activity. oil to gradually increase, electric utilities to shift In the remainder of my comments this mornto greater use of coal, auto manufacturers to ing, I would like to share with you my impresconcentrate more of their production on the sion of the recent evolution of the world monesmaller cars demanded by consumers, and tary system. thousands of other adjustments to be made by In the past several months a large number ingenious businessmen across the land. of economic, political, and military events have The longer-run economic implication of the occurred that have had potentially disruptive cutoff of Arabian oil supplies should not leave implications for exchange markets. Despite us in any doubt. The United States can no longer these disturbing events, orderly market condiafford to lose time in working towards an inde- tions and general stability have prevailed. The pendent ability to meet its energy requirements. official intervention that was undertaken has We must now move forward with determination given us helpful experience in managing a sys- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 FEDERAL RESERVE BULLETIN • DECEMBER 1973 tem with exchange rate flexibility in a way that it of gold—which at the time was the world's preserves orderly markets without frustrating principal reserve asset. To deal with this desirable adjustments. Although I remain skep- difficulty, the central banks of Belgium, Gertical of the long-run viability of a floating ex- many, Italy, the Netherlands, Switzerland, the change rate regime, this experience supports the United Kingdom, and the United States agreed continuance of the present exchange rate ar- that they would no longer buy or sell gold in rangements for the immediate future. the private market. For the longer run, we must rely more heavily In view of the suspension of convertibility on rules of international law in the monetary of dollars into gold since August 1971, the 1968 area. Such a reform is the objective of the agreement had become an anachronism. Its ter- Committee of Twenty, which has been meeting mination removes an obstacle to official sales periodically throughout 1973 and will continue of gold in the private market and will thus its work into 1974. Considerable progress in permit greater flexibility of action in the future. clarifying issues has already been made, as Official sales of gold can be useful in preventing evidenced by the Nairobi report of the Chairman wide fluctuations in the gold market that at times of the Committee of Twenty and the associated generate instability in currency markets. First Outline of Reform presented by the Chair- In due course, the United States and other man of the Committee's Deputies. I expect countries will make decisions about possible further clarification and further convergence of sales in the gold market. In doing so, our national views in coming months. Government will comply fully with Article IV, But it is important to avoid unrealistic expec- Section 2, of the Articles of Agreement of the tations. Some of the reform issues are extremely International Monetary Fund. Article IV states difficult, progress in reaching agreement will in essence that no member of the IMF shall sell continue to be gradual, and new developments gold below its official price nor shall buy gold may cloud the situation—as the energy issue has at a price above its official price. I am confident done in recent weeks. that most, if not all, foreign governments will Moreover, I have in recent months come to also respect this Fund Article. Hence, while think of international monetary reform as an they may sell gold, which now fetches a price on-going, evolutionary process—not just as the in the market that is far above the official price, final outcome of formal negotiations. In view they will not buy gold either from the market of changing objective circumstances and con- or from each other in the foreseeable future. tinuing divergence in some official views, it is The termination of the 1968 agreement will hardly practical to think of monetary reform in make possible a further reduction in the role terms of a finished blueprint that is to be imple- of gold in the international monetary system. mented in its entirety some morning after a final With the establishment of the Special Drawing meeting of the world's finance ministers and Rights' facility, which was not available in central bank governors. Even while discussions 1968, we now have an alternative primary recontinue in the Committee of Twenty and other serve asset. It has therefore become practicable forums, it is both possible and desirable to to consider steps that may gradually move gold adjust some parts of our international financial out of official reserves. machinery. Policy with regard to intervention in exchange One such step in this evolutionary process has markets is another area in which progress is been the recent termination of the March 1968 beginning to be made in the evolution of the agreement with regard to official gold transac- international monetary system. Under present tions. That agreement, which established the exchange rate arrangements, authorities of so-called two-tier gold market, was born of the major countries are consulting and cooperating 1968 gold crisis. Developments in the private as they make decisions on intervention. This gold market were then threatening to undermine experience, and the experience to be gained in the international monetary system by draining coming months, will be of great value in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 883 effort to establish more formal exchange rate strengthening of the balance of payments, it may arrangements for the longer-run future. be feasible for the agencies administering the At the present time, with many currencies controls—the Treasury Department, the Defloating in relation to the dollar, official holdings partment of Commerce, and the Federal Reserve of U.S. dollars will only be reduced through System—to move forward over the coming market intervention by foreign central banks. A months with an orderly reduction of those resubstantial reduction of dollars presently held straints. Similarly, it may prove feasible for in foreign official reserves—the reserve liabili- other countries to relax some of their earlierties of the United States amount to some $70 imposed restraints on capital inflows. billion—is clearly desirable as a long-run ob- In conclusion, I would like to note once again jective. Progress in this direction has been most that the strengthening of our balance of paymarked in the case of Japan, where dollar re- ments and the restoration of confidence in the serves have declined sharply in recent months. dollar in exchange markets stand out as this At the end of November, Japanese official re- year's major economic achievements. These serves were reported to be some $6 billion developments have served to bolster confidence below their level at the end of February. It in our Nation's future at a time when we have would be desirable for other countries with been besieged with all sorts of unhappy ecoexcess reserves also to sell dollars gradually nomic and political news. when market forces are serving to appreciate In fact, these foreign exchange developments the dollar substantially against their currencies. have transformed the atmosphere in which in- The controls imposed on capital flows may ternational financial problems are being disbe a third area of international monetary ar- cussed. We no longer hear voices from abroad rangements where evolutionary steps can be about inflation being exported from the United taken. Starting with the measures adopted in States. There is no longer so much complaining 1963 and expanded in 1965, our Government about a world flooded with dollars. Even comhas administered a system of restraints on capi- plaints about the "dollar overhang" have betal outflows in order to protect the balance of come muted. payments and to avoid disturbance of interna- We must, of course, be careful and not exagtional markets. These measures—the interest gerate the extent of the dollar's recovery. There equalization tax, the foreign direct investment is much unfinished work ahead of us. Noneregulations, and the voluntary foreign credit theless, it is gratifying to be able to draw your restraint guidelines—have been adapted over the attention to the improvement that has occurred years to changing economic conditions, but it in our balance of payments, and to advise you has been the objective to remove them when that the dollar is today a respected currency in they were no longer necessary. Other countries financial circles both here and abroad. have similarly imposed new controls, or tight- Confidence in the dollar is essential both to ened existing controls, to deal with capital flows a healthy domestic economy and to a successful considered to be temporary or reversible. evolution of the international monetary system. Early this year the administration announced Looking to the future, we must strive to conduct its intention to phase out our controls by the all our economic policies—domestic as well as end of 1974, but noted that the timing of liber- international—in such a manner that they will alizing steps would depend on balance of pay- maintain, and indeed strengthen, that confiments developments. In view of the recent dence. • 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 SEPTEMBER 18,1973 Domestic policy directive The information reviewed at this meeting suggested that growth in real output of goods and services, which had dropped to an annual rate of about 2.5 per cent in the second quarter from rates above 8.0 per cent in the two preceding quarters, would pick up somewhat in the current quarter. Staff projections suggested that growth in real output would slow slightly in the fourth quarter and would slacken further in the first half of 1974; the rise in prices was expected to remain rapid. In August industrial production declined slightly as output of automobiles and trucks was reduced sharply by shortages of parts, hot weather, and work stoppages. Nonfarm payroll employment, which had been stable in July, increased appreciably, although employment in manufacturing continued to change little; over the latest 3 months, the rate of growth in nonfarm employment was about two-thirds of the rate over the preceding 9 months. In August the unemployment rate edged up to 4.8 per cent. Retail sales, according to the advance report, remained at the high level reached in July, and the average for the 2 months was above that for the second quarter. Average hourly earnings of production workers on nonfarm payrolls advanced moderately in August, but increases in June and July were now reported to have been larger than had been indicated by earlier data; as a result, the rise over the 3-month period was more rapid than that earlier in the year. Wholesale prices of farm and food products rose sharply between mid-July and mid-August, after the temporary price freeze that had been imposed on June 13 was lifted for most foods on July 18. Later, prices of grains, livestock, poultry, and other farm products dropped, but in general prices of farm and food products remained far above pre-freeze levels. Wholesale prices of industrial commodities increased ap- 884 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

preciably between mid-July and mid-August, although for these commodities the freeze remained in force until August 12. Reflecting the freeze, the rise in the consumer price index had slowed markedly in July. Staff projections for the fourth quarter suggested that residential construction outlays would decline substantially and that consumption expenditures would expand at a rate below that in the third quarter. It was also expected, however, that both Federal and State and local government purchases of goods and services would rise substantially and that business inventory investment would increase further. U.S. merchandise exports continued to expand in July—reflecting sustained gains in exports of nonagricultural goods—and imports declined; the trade balance, after registering progressively smaller deficits from the fourth quarter of 1972 to the second quarter of 1973, shifted into surplus. Net foreign purchases of U.S. equity securities, which had fallen sharply in the second quarter, rose substantially in July. Foreign exchange markets in general had been quiet in recent weeks, although a 5 per cent revaluation of the Dutch guilder announced on the weekend before this meeting provoked some speculation that other continental currencies also would be revalued. The exchange rates for the dollar against major foreign currencies—which had strengthened significantly in the first half of August—had changed little since then. In August, moreover, the U.S. balance of payments on an official settlements basis was in surplus, after having been in small deficit in July. At U.S. commercial banks, business loans expanded at a very rapid rate in August—although the expansion appeared to have slackened late in the month—-and growth in other types of loans remained strong. Banks continued to liquidate substantial amounts from their holdings of Government securities, but total bank credit increased considerably further. The prime rate that banks charged on loans to large corporations was raised in three steps from 9XA per cent in mid-August to 10 per cent in mid-September. The narrowly defined money stock (Mj),1 which had grown at an annual rate of about 10.5 per cent in the second quarter and Private demand deposits plus currency in circulation. 885 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 FEDERAL RESERVE BULLETIN • DECEMBER 1973 of 5 per cent in July,2 declined somewhat in August. Inflows of time and savings deposits other than large-denomination CD's increased sharply—reflecting in part inflows into 4-year time deposits in response to the higher interest rates generally being offered on these instruments, which had been exempted from Regulation Q ceilings at the beginning of July—and the more broadly defined money stock (M )3 grew at a slightly higher rate in August than 2 in July. Banks raised further the rates paid on large-denomination CD's, and the outstanding volume of such CD's expanded by a substantial amount in August, as in July; growth in the bank credit proxy4 was rapid. On September 7 the Federal Reserve announced an increase from 8 to 11 per cent in marginal reserve requirements on large-denomination CD's, effective in the statement week beginning October 4 against deposits held 2 weeks earlier. Nonbank financial institutions, like commercial banks, raised rates after the 4-year deposits were exempted from rate ceilings, but they experienced net outflows of total deposits in the July-August period. In both July and August savings and loan associations borrowed large amounts from Federal home loan banks to meet mortgage commitments, and they sharply reduced their new commitments. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages rose sharply further in August. In the Treasury's cash financing of August 24, which had been announced on August 20, $2 billion of a 25-month, 8% per cent note were auctioned at a price to yield 7.94 per cent. The Treasury financed additional cash needs by selling special certificates of indebtedness to the Federal Reserve Banks; such certificates were outstanding on several days, and their volume reached a peak of $443 million on September 11. System open market operations since the meeting on August 21 had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with slower growth in 2 Growth rates cited are calculated on the basis of the daily-average level in the last month of the period relative to that in the last month preceding the period. 3M plus commercial bank time and savings deposits other than large-denomil nation CD's. 4Daily-average member bank deposits, adjusted to include funds from nondeposit sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 887 monetary aggregates over the months immediately ahead than had occurred on average in the first 7 months 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 11 to 13 per cent during the August-September period, while avoiding unduly sharp changes in money market conditions. Soon after the August meeting, available data suggested that in the August-September period RPD's would grow at a rate above the range that the Committee had specified and that the monetary aggregates would grow at rates in excess of an acceptable range. Therefore, the System had acted promptly to limit expansion in RPD's, and the Federal funds rate—which had been around \0V2 per cent at the time of the August meeting—rose to about 10% per cent in the statement week ending August 29. Later data suggested that growth in the monetary aggregates was slowing and that RPD's would grow in the August-September period at a rate within the specified range. The Federal funds rate remained about 103A per cent. In the 4 weeks ending September 12, member bank borrowings averaged $2,135 million, compared with $1,965 million in the preceding 5 weeks. Short-term market interest rates, especially rates for Treasury bills, declined just after the August meeting of the Committee, in large part because of growing expectations among market participants that the maximum degree of monetary restraint had been reached. However, rates rose again in association with the further tightening of money market conditions early in the inter-meeting period and with the September 7 announcement of the increase in reserve requirements against large-denomination CD's. The market rate on 3-month Treasury bills dropped from 8.79 per cent on the day before the August meeting to 8.46 per cent a few days afterwards, rose to a high of 9.04 per cent on September 11, and then fell back to 8.70 per cent on the day before this meeting. Yields on long-term securities, which had turned down in early August, continued to decline through most of the inter-meeting period—in part, like short-term rates, because of market expectations that the maximum degree of monetary restraint had been reached, but also because of light offerings of new securities. The volume of new public offerings of corporate bonds declined more than seasonally in August, and the recovery in the volume in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 FEDERAL RESERVE BULLETIN • DECEMBER 1973 prospect for September was less than seasonal. In the week before this meeting, long-term rates edged up. The Committee agreed that the economic situation and prospects called for moderate growth in monetary aggregates over the months ahead. A staff analysis indicated that, although transactions demands for money probably would expand, growth in the money stock in the months ahead was likely to be limited in lagged response to the rise in short-term interest rates that had occurred in recent months. Consequently, achievement of moderate growth in monetary aggregates within an acceptable period of time was likely to require some easing in money market conditions. In the current environment of unusual sensitivity of expectations in financial markets, however, signs that monetary policy was moving toward a significant easing in money market conditions might result in large expectational declines in short-term interest rates and also in further declines in long-term rates, tending to erode the existing degree of monetary restraint. The staff analysis also indicated that completion of the realignment in consumers' holdings of financial assets—which had been taking place in response to changes in the structure of interest rates—was likely to slow the growth in consumer-type time and savings deposits even if market interest rates declined moderately. It was expected that growth in business loans, although slowing from the exceptionally rapid pace in August, would remain relatively rapid and that banks' demands for funds would continue strong; however, expansion in the oustanding volume of large-denomination CD's was likely to be tempered by the recent increase in the marginal reserve requirement against such CD's. In large part because of the reserves required against the expanding volume of large-denomination CD's, rapid growth in RPD's in the September-October period—at an annual rate in a range of 15 to 17 per cent—was thought likely to be consistent with moderate growth in the narrowly and the more broadly defined money stock over the months ahead. In view of the relatively weak behavior of the monetary aggregates in August and prospects for limited expansion in the months immediately ahead, the Committee concluded that reserve-supplying operations should not become restrictive unless RPD's in the September-October period appeared to be growing at an annual Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 889 rate of more than 18 per cent. Specifically, the Committee decided that operations should be directed at fostering RPD growth during that period within a range of 15 to 18 per cent, while taking account of deviations in monetary growth from an acceptable range and avoiding unduly sharp changes in money market conditions. Although the members recognized that pursuit of the objective for RPD's might be associated with some easing in money market conditions, a number of them cautioned against the risk of generating market impressions that monetary restraint was being relaxed significantly, and it was agreed that, in the conduct of operations, account should be taken of domestic financial market developments. As at other recent meetings, the Committee also agreed that account should be taken of international financial market developments. 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 suggests that growth in real output of goods and services, which slowed in the second quarter from the exceptionally rapid pace of the two preceding quarters, will be moderate in the third quarter. Although nonfarm employment rose sharply in August, the average gain in recent months has been smaller than earlier and the unemployment rate has changed little at a level somewhat below 5 per cent. The exceptionally rapid advance in prices was interrupted in July by the temporary freeze imposed in mid-June. However, farm and food prices surged after mid-July—when the freeze was lifted on most such products—and despite later appreciable declines, they remained far above pre-freeze levels. The U.S. merchandise trade balance improved further in July, and net foreign purchases of U.S. stocks increased. In recent weeks exchange rates for the dollar against most foreign currencies have changed little on balance after strengthening in the first half of August, and the balance of payments has been in surplus on an official settlements basis. The narrowly defined money stock, which had increased moderately in July, declined somewhat in August. The more broadly defined money stock continued to expand as a result of net inflows Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 FEDERAL RESERVE BULLETIN • DECEMBER 1973 at banks of consumer-type time deposits. Nonbank thrift institutions experienced net deposit outflows in the July-August period. Expansion in bank credit has continued at a substantial pace. On September 7 the Federal Reserve announced an increase from 8 to 11 per cent in marginal reserve requirements on large-denomination CD's. Interest rates on long-term market securities declined from early August to early September, partly because of growing expectations that the maximum degree of monetary restraint had been reached. Later, however, such expectations weakened and some long-term rates turned up. Short-term rates generally remained under upward pressure in recent weeks. 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 sustainable rate of advance in economic activity, and continued progress toward equilibrium in the country's balance of payments. To implement this policy, while taking account of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Balles, Bucher, Daane, Francis, Holland, Mayo, Mitchell, Morris, Sheehan, and Debs. Votes against this action: None. Absent and not voting: Messrs. Brimmer and Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) On October 1 the System Account Manager reported that significant inconsistencies had developed among the Committee's various objectives and constraints. Incoming data had suggested that in the September-October period the annual rate of growth in RPD's would fall well below the range specified by the Committee at the September 18 meeting and that growth in both M and M x 2 would fall short of acceptable ranges. In domestic financial markets, however, short-term interest rates had dropped very sharply—although the Federal funds rate had remained close to 10% per cent—and long-term rates had continued to decline as many market participants had become convinced that the System had relaxed its policy of restraint and that in general interest rate peaks had been passed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS 891 The Committee held a telephone meeting on October 2, in which all members other than Chairman Burns participated. A minority of the members—Messrs. Balles, Bucher, Francis, Morris, and Sheehan—favored proceeding to provide reserves at a rate consistent with an easing in money market conditions to the degree considered acceptable at the meeting on September 18, provided that market conditions did not become disorderly and that growth in the aggregates appeared to remain below acceptable ranges. The majority of the members, however, concluded that at least over the next few days money market conditions should be allowed to ease less than originally considered acceptable and then only if that did not threaten to reinvigorate the sharp rally in markets for short-term securities. It was understood that further consultation was likely to be desirable before the meeting scheduled for October 16. The Committee held another telephone meeting on October 10, in which all members participated. The additional week's data available by then suggested that in the September-October period growth in RPD's and the monetary aggregates would be still weaker than had been expected earlier. Although System operations had supplied large amounts of reserves and short-term market interest rates had declined further on balance, the Federal funds rate on most days through October 8 had remained near 103A per cent. Committee members agreed unanimously that reserves should be supplied at a rate consistent with some easing in money market conditions beyond that decided upon on October 2 and that conditions should be eased somewhat further if the recent weakness in RPD's and in the monetary aggregates should be confirmed by data that would become available after the meeting. 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 RESERVES OF MEMBER BANKS rency or bearer-type negotiable instruments) as are exchanged among banks and banking institutions; The Board of Governors has amended Regula- (iii) for audit and accounting media of a banking tion D to change the definition of "gross demand or financial nature and other business records and deposits" to include certain "other liability" ac- documents used in processing such media.33 counts. AMENDMENT TO REGULATION D INTERPRETATION OF REGULATION Y Effective November 26, 1973 § 204.1(g) of SECTION 225.129 ACTIVITIES CLOSELY RE- Regulation D is amended to read as follows: LATED TO BANKING SECTION 204.1—DEFINITIONS Courier activities. The Board's amendment of § 225.4(a), which adds courier services to the list of closely related activities is intended to permit (g) Gross demand deposits. * * * "Gross holding companies to transport time critical matedemand deposits" also includes any obligation to rials of limited intrinsic value of the types utilized pay a check (or other instrument, device, or ar- by banks and bank-related firms in performing rangement for the transfer of funds) drawn on the their business activities. Such transportation activbank, where the account of the bank's customer ities are of particular importance in the check has already been debited. clearing process of the banking system, but are also important to the performance of other activities, including the processing of financially-related BANK HOLDING COMPANIES economic data. The authority is not intended to The Board of Governors has determined to add permit holding companies to engage generally in certain courier activities to the list of permissible the provision of transportation services. However, activities for bank holding companies. the furnishing of courier services for nonfinancially-related material upon the specific, unsolic- AMENDMENT TO REGULATION Y, ited request of a third party when courier services are not otherwise reasonably available may be INTERPRETATION, AND STATEMENT regarded as an incidental activity of a bank-related Effective November 15, 1973 section 225.4(a) courier. is amended to read as follows: During the course of the Board's proceedings pertaining to courier services, objections were SECTION 225.4—NONBANKING made that courier activities were not a proper ACTIVITIES incident to banking because of the possibility that (a) Activities closely related to banking or holding companies would or had engaged in unfair managing or controlling banks. * * * The fol- competitive practices. The Board believes that lowing activities have been determined by the adherence to the following principles will elimi- Board to be so closely related to banking or nate or reduce to an insignificant degree any posmanaging or controlling banks as to be a proper sibility of unfair competition: incident thereto: a. A holding company courier subsidiary estab- 3a Applications to engage de novo in providing courier (11) providing courier services (i) for the internal services should be filed in accordance with the procedures of operations of the holding company and its subsid- § 225.4(b)(2) rather than § 225.4(b)(1). See also the Board's interpretation on courier activities (12 CFR 225.129), which iaries; (ii) for checks, commercial papers, docusets forth conditions for holding company entry pursuant to ments, and written instruments (excluding cur- § 4(c)(8). 892 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 893 lished under § 4(c)(8) should be a separate, inde- Company Act to permit holding companies to pendent corporate entity, not merely a servicing engage in "performing or carrying on armored car arm of a bank. or courier services." A hearing was scheduled to b. As such, the subsidiary should exist as a be held before available members of the Board separate, profit-oriented operation and should not on December 10, 1971. A motion for an extension be subsidized by the holding company system. of time and for the institution of formal rulemaking c. Services performed should be explicitly procedures was filed by the National Courier Aspriced, and shall not be paid for indirectly, for sociation and the National Armored Car Associaexample, on the basis of deposits maintained at tion. The Board granted the motion in part by or loan arrangements with affiliated banks. delaying the hearing date to January 19, 1972, but Accordingly, entry of holding companies into denied the request for formal rulemaking procecourier activities on the basis of § 4(c)(8) will be dures conducted in accordance with §§ 556 and conditioned as follows: 557 of Title 5 of the United States Code (37 F.R. 1. The courier subsidiary shall perform services 938). Subsequently, the Board further postponed on an explicit fee basis and shall be structured the hearing until February 10, 1972, and desigas an individual profit center designed to be nated a hearing officer to conduct the proceedings operated on a profitable basis. The Board may (37 F.R. 1251). The Board stated that although regard operating losses sustained over an extended the hearing would not be conducted pursuant to period as being inconsistent with continued au- §§ 556 and 557 of Title 5, a more formal prothority to engage in courier activities. ceeding than originally proposed would be con- 2. Courier services performed on behalf of an ducted. At the same time, the Board granted a affiliate's customer (such as the carriage of in- request for separate consideration of armored car coming cash letters) shall be paid for by the and courier services, denied requests for reconcustomer. Such payments shall not be made indi- sideration of the request for formal proceedings rectly, for example, on the basis of imputed earn- under §§ 556 and 557 of Title 5, and denied a ings on deposits maintained at or of loan ar- request for access to intra-agency memoranda rangements with subsidiaries of the holding com- considered by the Board in deciding to announce pany. its proposed rulemaking regarding armored car and Concern has also been expressed that bank-affili- courier services. The designated Hearing Officer ated courier services will be utilized to gain a held a prehearing conference on February 4, 1972 competitive advantage over firms competing with and postponed the scheduled hearings until Februother holding company affiliates. To reduce the ary 29. On February 29 and March 1, 1972, a possibility that courier affiliates might be so em- hearing was conducted with regard to courier ployed, the Board will impose the following third services. Written statements were submitted on the condition: armored car activity, but no separate oral presen- 3. The courier subsidiary shall, when requested tations were made with regard to that activity.1 by any bank or any data processing firm providing The Hearing Officer filed his Recommended Decifinancially-related data processing services which sion, and comments and exceptions thereto were firm compete^ with a banking or data processing filed by the parties. The Board requested certain subsidiary of Applicant, furnish comparable serv- additional material to supplement the record and ice at comparable rates, unless compliance with all parties were apprised of the request and the such request would be beyond the courier subsidi- replies thereto. ary's practical capacity. In this regard, the courier Among the exceptions filed were objections that subsidiary should make known to the public its the proceedings were not conducted in accordance minimum rate schedule for services and its general with §§ 556 and 557 of Title 5, that the Hearing pricing policies thereto. The courier subsidiary is Officer failed to permit cross-examination by paralso expected to maintain for a reasonable period ties, and that he erred in relying upon material of time (not less than two years) each request in the Board's public information file, almost all denied with the reasons for such denial. of which had been submitted by the public in response to the Board's November notice of STATEMENT proposed rulemaking. The Board has previously I. Procedural Background. determined that its rulemaking procedures under By notice published November 17, 1971 (36 F.R. 21897), the Board announced proposed rule- 1 One oral presentation made during the courier hearing permaking under § 4(c)(8) of the Bank Holding tained primarily to armored car services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 FEDERAL RESERVE BULLETIN • DECEMBER 1973 section 4(c)(8) are legislative rather than adversary measures. Thus, in addition to the items listed in nature and are not subject to the procedures above, such items as human blood, exposed and of §§ 556 and 557 of Title 5. The Board has processed film, repair parts, and cut flowers are concluded that the written interrogatories permit- moved by courier. ted by the Hearing Officer in the interest of a more Commercial courier services as they are prescomplete record and the Hearing Officer's reliance ently conducted began as a means of expediting upon the Board's public file relating to the pro- the movement of checks, and accordingly such ceedings was appropriate to the rulemaking nature services were utilized primarily by banks and the of the hearing and consistent with the Board's banking community. Prior to the development of Order granting his authority. Many of the contro- commercial courier services, checks had been verted issues between the participants in these moved by mail, bus, rail, and private carriage proceedings, for example, the private pricing po- (including messengers). Although in recent years licies of an individual courier affiliate, may be the percentage of revenues derived from courier more appropriately explored at the time individual services performed for the banking community bank holding companies apply to engage in courier appears to have declined, the banking community activities. remains the primary source of courier revenues. Three of the participants in the courier proceed- It appears to be undisputed that courier services ings have requested oral argument before the for cash letters2 play a vital role in the check Board. The Board has denied those requests in clearing process. Similarly, it appears undisputed the accompanying Order because it concluded that that courier services are important to bank-related oral argument would be unlikely to provide infor- data processing or to data processing generally. mation not presently in the record. Purolator The record indicates that a number of banks, Courier Corporation has also made a motion to particularly those which operate a significant include in the record correspondence between it- number of branches, engage in the transportation self and the Board related to permitting existing of such items as checks, internal memoranda and courier subsidiaries of bank holding companies to data processing material between branches, and bid for and to be awarded contracts to provide that three bank holding companies, all of which courier services for the Regional Check Processing became subject to the Bank Holding Company Act Centers of the Federal Reserve Bank of Richmond. as a result of the 1970 Amendments, are engaged An objection to the holding companies bidding for in providing "for hire" courier service. the courier services contracts and a request to Opponents of holding company entry contend reopen the record were also filed by the Inde- that courier services are essentially transportation pendent Bankers Association of America. The services that require technology and expertise Board has denied these motions to incorporate having little in common with traditional banking additional material into the record because in its activities and should not be regarded as closely judgment such material is not relevant to the issue related to banking or managing or controlling of whether courier services are so closely related banks on the basis that banks are the primary user to banking or managing or controlling banks as of such services. Those supporting entry argue that to be a proper incident thereto. courier services are closely related to banking and II. Courier Services. managing and controlling banks in the sense of A. Relationship to Banking. being an increasingly integral part of modern day When the Board announced its proposal to in- banking with its emphasis on high speed comclude courier activities as a permissible activity puters and the importance of swift bank clearfor bank holding companies, the Board stated it ances. They also rely upon decisions of the Interunderstood that courier services involve state Commerce Commission which recognize the ... the transportation of important items having critical transportation of cash letters as a distinct type of time schedules. The items involved are generally not bearer contract carriage treating all banks as one shipper. type instruments, and accordingly, require only the ordinary security measures accorded any confidential business papers. Among the most common documents and related items carried by messenger service are checks, drafts, money orders, travelers checks, commercial papers, written instru- 2 The term "cash letters" commonly refers to a closed ments and data processing material. envelope, package or pouch sent by one bank to another bank or clearing center containing checks, drafts, and money orders The record indicates that courier services in- which have been cashed or deposited in a bank by its customers volve transportation of any item with a critical time and which are being forwarded to another bank or clearing center for processing. The checks, drafts, and money orders schedule, provided such items are small in bulk, are restrictively endorsed and are tabulated on an enclosed light in weight, and require only ordinary security document. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 895 The Hearing Officer finds that courier service is by the same vehicle. Each route is limited with an essential part of the present process by which respect to the number and location of customers banks effect check collections and also is essential that can be served as determined by mileage and to the performance of data processing activities time factors, traffic density, road conditions and by banks or nonbanks for banks and is thus closely the proximity of customers to one another. The related to banking. His recommendation would record indicates there are many routes presently also permit the carriage of financially-related data served by only one courier firm. processing materials, such as audit media utilized The provision of for hire courier services may in the preparation of payrolls, for nonbank cus- be regulated by individual states with respect to tomers. Transportation of the type afforded by a intrastate transportation3 and by the Interstate courier service frequently is necessary to the effi- Commerce Commission with respect to interstate cient and timely processing of such audit media. transportation. Some states do not regulate courier Among the exceptions filed are those objecting services, and there are numerous exceptions to the to the Hearing Officer's determination insofar as Interstate Commerce Act (particularly with regard any for hire courier activities are found to be to carriage within metropolitan areas) which exclosely related to banking and those which char- empt courier companies from any requirement of acterize the Hearing Officer's proposed definition approval for entry. of permissible courier services as ambiguous. Contentions of the Parties. The main thrust The Board finds that the transportation of cash of the arguments of those favoring holding comletters has been so integrated into the process by pany entry is that due to the lack of competition in which checks are collected as to be part of the many areas of the country, the courier industry present payments mechanism. The transportation has not satisfactorily met all of the transportation of data processing materials (such as materials needs of the banking community. Accordingly, utilized in demand deposit accounting) between holding company entry will increase competition banks appears to be in connection with the provi- within the courier industry and lead to greater sion of correspondent bank services and may be convenience and increased efficiencies for those in conjunction with the processing of cash letters. utilizing courier services. Opponents of the The transportation of financially-related data pro- proposed regulation assert that the courier industry cessing materials is related to, and supports the is presently highly competitive and holding comprovision of, data processing services of types pany entry is motivated by the desire to utilize furnished by banks and bank-related companies. courier services as a means of furthering the busi- Accordingly, the Board has concluded that courier ness goals of their banking subsidiaries. Accordservices of the type described above are closely ingly, holding company entry will lead to derelated to banking or controlling or managing creased and unfair competition as well as creating banks. The Board has revised the Hearing Of- a possibility of other adverse effects. They further ficer's proposed definition of permissible courier argue that holding company entry will violate State services for greater clarity. bank branching laws and the prohibition of the B. Public Benefits Considerations. payment of interest on demand deposits. The Courier Industry. The courier industry The Hearing Officer's Views. The Hearing provides the portal-to-portal transportation of im- Officer concluded that the record would not supportant items with critical time schedules. The port a determination that all holding company time periods involved are of relatively short dura- entries into the courier business would be in the tion—usually less than 12 hours. There appear to public interest. However, implicit in his recombe only a limited number of courier firms having mendation is a finding that holding company entry substantial operations in terms of revenues and is likely to be in the public interest in a sufficient geographic areas served, although many smaller number of instances to justify a conclusion that courier companies operate on a local basis. The courier services, as he defines and conditions record suggests concentration in the courier in- them, are so closely related to banking as to be dustry is high, and the size distribution within the a proper incident thereto. He further finds that industry highly skewed with the pioneer firm being neither Regulation Q nor the prohibitions in many by far the largest firm. The relevant geographic States of branch banking constitute a real impedimarket for evaluating the competitive effects of a given holding company entry would appear to be local or regional in nature. 3 The Hearing Officer suggested that, for purposes of the The economic unit of the courier industry is the applicable transportation statutes, carriage of cash letters involved interstate commerce in all instances, but it appears that route consisting of a cluster of customers served such carriage may often involve only intrastate commerce. 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896 FEDERAL RESERVE BULLETIN • DECEMBER 1973 ment to holding companies engaging in courier c. Services performed should be explicitly services. priced and should not be paid for on the basis The conditions he recommends essentially re- of correspondent bank balances or other demand quire: (1) a bank holding company and its courier deposits maintained at affiliated banks. affiliate shall not represent courier services as free Accordingly, entry of holding companies into and shall make available to prospective users the courier activities on the basis of § 4(c)(8) will be schedule of minimum rates and charges for the conditioned as follows: service and policies and practices in relation 1. The courier subsidiary shall perform services thereto; and (2) a courier subsidiary shall, when on an explicit fee basis and shall be structured requested by any bank competing with a subsidiary as an individual profit center designed to be bank of the holding company, furnish comparable operated on a profitable basis. The Board may service at comparable rates to such competing regard operating losses sustained over an extended bank, unless compliance with such request is period as being inconsistent with continued aubeyond its practical capacity. thority to engage in courier activities. Comments and Exceptions to the Recom- 2. Courier services performed on behalf of an mended Decision. Among the comments and ex- affiliate's customer (such as carriage of incoming ceptions filed were objections to the lack of a cash letters) shall be paid for by the customer. specific conclusion that courier services are a Such payments shall not be made indirectly, for proper incident to banking, objections as to effec- example on the basis of imputed earnings of detiveness of the proposed conditions, and objections posits maintained at or loan arrangements with on the basis that the Hearing Officer understated subsidiaries of the holding company. the structural dangers and overestimated the ability The Hearing Officer's proposed condition reof regulatory agencies to focus upon and curtail quiring the provision of comparable courier servunfair competitive practices. Exceptions were also ices to competing banks was designed to assure filed with regard to the Hearing Officer's conclu- that courier services would not be used as a comsion that neither Regulation Q nor State branch petitive tool in gaining correspondent bank deposbanking statutes posed an impediment to holding its. The Board will extend this condition to apply company entry. to any data processing firm engaged in providing DISCUSSION. The Board has considered the rel- financially-related data processing which firm evant aspects of the courier proposal, including competes with a banking or data processing subthe arguments of the parties, the Recommended sidiary of an applicant. Thus, the Board intends to Decision and the exceptions and comments impose the following third condition upon holding thereto. With respect to the allegations of unfair company entry: competition, the Board has concluded that adher- 3. The courier subsidiary shall, when requested ence to the following principles would eliminate by any bank or any data processing firm providing or reduce to an insignificant degree any possibility financially-related data processing services which of unfair competitive practices vis a vis other firm competes with a banking or data processing courier firms, while at the same time permitting subsidiary of Applicant, furnish comparable servthe possibility of holding company entry adding ices at comparable rates, unless compliance with to the competitive pressures within the courier such request would be beyond the courier subsidiindustry. Such pressures may also result in greater ary's practical capacity. In this regard, the courier convenience for purchasers of courier services and subsidiary should make known to the public its are likely, in certain instances, to result in in- minimum rate schedule for services and its general creased efficiencies in the processing of cash let- pricing policies thereto. The courier subsidiary is ters. The principles also assure the ability of a also expected to maintain for a reasonable period purchaser of courier services from a holding com- of time each request denied with the reasons for pany affiliate to ascertain precisely the costs of such denial. such services. The principles are: The Board has considered other possible adverse a. A holding company courier subsidiary estab- effects of permitting holding company entry, such lished under § 4(c)(8) should be a separate, inde- as undue concentration of resources, conflicts of pendent corporate entity, not merely a servicing interest, or unsound banking practices and has arm of a bank. concluded that the possibility of these adverse b. As such, the subsidiary should exist as a effects generally being significant is remote. The separate, profit oriented operation and should not question of whether holding company entry would be subsidized by the holding company system. violate State bank branching laws and constitute Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 897 an unsound banking practice or unfair competition situation, a bank (Bank A) gives its correspondent is separately discussed below as are issues per- banks the option of the correspondent bank making taining to Regulation Q. direct payments for courier services to the firm State Branching Laws. The Board has con- rendering such services, or to having payments cluded that the operation of a courier service under made by Bank A to the courier firm on the basis the conditions set forth above would not constitute of traditional account analysis. Such payments, branch banking. The courier subsidiary would be when made by Bank A, are paid to a separate a separate corporation, rather than an additional courier corporation and are more than nominal in place of business of the bank. The Board sees no amount. While such payments are not made direason to attribute the activities of a courier sub- rectly to the deposit account of the correspondent sidiary operated in accordance with the Board's bank, the payments are identifiably made on behalf conditions to an affiliated bank or banks. Accord- of the correspondent bank on the basis of deposits ingly, the Board does not regard State branching maintained at Bank A. Based on these facts and laws as an impediment to the amendment of Reg- other facts of record, the Board has concluded that ulation Y to permit holding companies to engage such payments by Bank A to the courier on the in courier services. Furthermore, the Board has basis of traditional account analysis may be viewed considerable doubt that the branch banking laws as an indirect payment of interest to the account are applicable to interbank transactions involving of a depositor as compensation for the use of cash letters, which have long been regarded in funds. A second factual situation presented interms of correspondent banking rather than branch volves a bank paying the courier expense for banking. The Board does nor regard either First incoming cash letters of other banks and treating National Bank v. Dickinson, 396 U.S. 122 (1969), the payments as part of its overhead expenses. or Jackson v. First National Bank of Cornelia, Payments for courier services are in some cases 292 F. Supp. 156 (1968); affm'd. 430 F. 2d 1200 made for banks not maintaining correspondent (5th Cir., 1970); cert. den. 401 U.S. 947 (1971), balances. In this factual situation, the Board has as controlling with regard to permitting holding concluded that no payment of interest is involved. companies to engage in courier services. De Novo Procedures. Because of the limited Regulation Q. Another issue, raised in these number of firms providing courier services in many proceedings, is whether the payment by a bank markets, the Board itself desires to fully consider to a courier firm of the charges for transporting the public benefits aspects of each application to incoming cash letters of correspondent banks con- engage in courier services. Accordingly, the Board stitutes the payment of interest to the corre- has determined that the de novo procedures of § spondent banks on demand deposits held at the 225.4(b) (1) should not be utilized by an applibank.4 Since the payment of interest issue is cant's seeking to engage in courier services and present regardless of whether or not the courier that an application must be filed under the provifirm is a holding company affiliate, the interest sions of § 225.4(b)(2) of Regulation Y. issue is only collaterally related to the proposed Conclusion. The Board has considered whether determination that courier services are closely re- or not performance by a holding company affiliate lated to banking. Nevertheless, as the interest issue can reasonably be expected to produce public has been raised in the context of this proceeding, benefits, such as greater convenience, increased the Board's views concerning the issue are pre- competition, or gains in efficiency that outweigh sented below. potential adverse effects such as undue concentra- Any determination concerning whether or not tion of resources, decreased or unfair competition, a prohibited payment of interest has been made conflicts of interests, or unsound banking pracmust be based on the specific factual circumstances tices. For the reasons stated above, the Board has involved. Two specific factual situations are pre- concluded that the balance of public interest facsented in the record of this proceeding. In one tors it is required to weigh is likely to be favorable in a sufficient number of instances to justify adding certain courier services to the list of activities the 4Section 19 of the Federal Reserve Act prohibits member Board has determined to be closely related to banks from paying interest on demand deposits (12 U.S.C. banking. Accordingly, the Board has concluded 371(a)), but authorizes the Board to determine what shall be deemed a payment of interest (12 U.S.C. 461). In Regulation that certain courier services as enumerated in § Q, the Board has stated that any payment to or for the account 225.4(a)(ll) are so closely related to banking or of any depositor, as compensation for the use of funds consti- managing or controlling banks as to be a proper tuting a deposit, shall be considered interest (12 CFR 217.2(b)). incident thereto. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 FEDERAL RESERVE BULLETIN • DECEMBER 1973 III. Armored Car Services. time a holding company applies pursuant to § The Board has examined the record of the 4(c)(8) to engage in armored car services, such proposed amendment to Regulation Y with respect holding company shall, in meeting its burden of to adding armored car services to the list of activi- demonstrating that its proposed activities are so ties the Board has found to be closely related to closely related to banking as to be a proper incident banking and has found the evidence of record to thereto, specifically address the evidence of record be inconclusive. The Board notes that the record submitted in this proceeding. Such evidence will is virtually devoid of evidence in support of the be available at the Board and at each of the Federal proposed amendment. Therefore, if at some future Reserve Banks. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF Metropolitan Statistical Area ("SMSA") and two BANK HOLDING COMPANY ACT offices in the Hartford SMSA. Guaranty Bank (deposits of $26.1 million) operates four offices, all in the Hartford SMSA. The relevant geographic THE CONNECTICUT B ANCFEDERATION, market in which the competitive effects of the INC., NEW BRITAIN, CONNECTICUT affiliation of these two banks is to be adjudged ORDER APPROVING FORMATION OF BANK HOLD- is the Hartford-New Britain banking market ap- ING COMPANY proximated by the combined Hartford and New Britain SMS As. The two SMS As are contiguous, The Connecticut BancFederation, Inc., New and the central cities of Hartford and New Britain Britain, Connecticut, has applied for the Board's are only ten miles apart. Census Bureau data approval under § 3(a)(1) of the Bank Holding indicate that approximately 22 per cent of the Company Act (12 U.S.C. 1842(a)(1)) of formation resident labor force of New Britain commutes to of a bank holding company through acquisition the city of Hartford and seven towns surrounding of 80 per cent or more of the voting shares of: Hartford. 1) The Guaranty Bank & Trust Company, Hartford The Hartford-New Britain banking market is ("Guaranty Bank"); 2) New Britain Bank and highly concentrated, the two largest of 24 banks Trust Company, New Britain ("New Britain therein holding 41 per cent and 37 per cent of Bank"); and 3) Terryville Trust Company, Terry market deposits respectively. The third, fourth, ville ("Terryville Bank"), all located in Connecand sixth largest banks in the market are subsiditicut. aries of the same bank holding company which Notice of the application, affording opportunity thereby controls eight per cent of market deposits. for interested persons to submit comments and New Britain Bank is the fifth largest bank in the views, has been given in accordance with § 3(b) market holding three per cent of market deposits, of the Act. The time for filing comments and views and Guaranty Bank, holding one per cent of dehas expired, and the Board has considered the posits in the market ranks as the tenth largest bank application and all comments received in light of in the market. Applicant would become the fourth the factors set forth in § 3(c) of the Act (12 U.S.C. largest banking organization in the market with 1842(c)). approximately 4 per cent of market deposits. Ap- Applicant, a newly-formed corporation with no plicant would not thereby control an undue peroperating history, was organized for the purpose centage of the Hartford-New Britain market, nor of becoming a bank holding company. The banks would consummation of the proposed transaction have aggregate deposits of $102.0 million, repreresult in a significant increase in the concentration senting 1.6 per cent of total deposits in commercial of firms in that market. banks in Connecticut.1 Applicant would become Although the closest offices of New Britain the twelfth largest banking organization in the Bank and Guaranty Bank are only six miles apart, State and would hold 1.6 per cent of total comtheir service areas overlap only in the town of mercial bank deposits in the State. Newington (population of 26,037, according to New Britain Bank (deposits of $64.8 million) 1970 Census of Population). Guaranty Bank does operates five offices in the New Britain Standard not have an office in Newington, while New Britain Bank does maintain an office there, which 1 All banking data are as of December 31, 1972. office competes with the offices of three commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 899 cial banks, two mutual savings banks, and a sav- to restructure the proposal, apparently by requiring ings and loan association. A fourth thrift institution a merger of New Britain Bank and Terryville Bank has recently been approved in Newington. It ap- into Guaranty Bank, in order to remove the "home pears that reasonable banking alternatives would office protection" granted by State law to the be available to the Newington community even Plymouth community and to assist in the removal if competition were eliminated between New Brit- of such protection from the city of New Britain. ain Bank and Guaranty Bank. The Board con- Hartford National Corporation notes that State law cludes that consummation of the proposed trans- effectively prohibits its banking subsidiary from action would not have a significant adverse effect establishing a branch facility in New Britain, but on existing competition in the Hartford-New Brit- recognizes that it may lawfully form a new bank ain market. in New Britain. Terryville Bank (deposits of $11.1 million) Applicant has vigorously opposed the suggesoperates two offices, both located in the town of tion of Hartford National Corporation stressing the Plymouth, in the Bristol SMS A, the relevant affirmatively procompetitive effect of the instant banking market in which the competitive effects proposal, as a means, in effect, to deconcentrate of the acquisition by Applicant are considered. It the Hartford-New Britain market. Applicant conis the third largest of four banks in the market tends that the proposal would be jeopardized, and and holds approximately 20 per cent of deposits the procompetitive effect thereby lost, if New in the market. Although the Bristol SMS A is Britain Bank and Terryville Bank are required to contiguous to the Hartford and New Britain merge out of existence. As a matter of policy, SMSAs and although an office of Terryville Bank the Board opposes "home office protection" statis located only 15 miles from the nearest office utes as devices to protect a favored few from the of New Britain Bank and 20 miles from the nearest rigors of fair competition,2 and, where an applicaoffice of Guaranty Bank, there is little existing com- tion has presented significant adverse competitive petition between Terryville Bank on the one hand effects, or where an Applicant has recognized the and New Britain Bank or Guaranty Bank on the wisdom of free competition and has voluntarily other. Neither New Britain Bank nor Guaranty taken steps that would result in removal of "home Bank derives more than 1 per cent of its other office protection", that removal has been considbanking business from the Bristol SMS A; and ered a procompetitive consideration and a public Terryville Bank does not derive more than 1 per benefit.3 However, where, as here, an application cent of its demand deposits, nor more than 3 per presents net procompetitive effects, the Board has cent of its other banking business, from the service not conditioned its approval upon removal of areas of New Britain Bank and Guaranty Bank. "home office protection",4 and the Board will not The law of the State of Connecticut permits do so in this case. commercial banks to establish branch offices at any 2 See Order of January 19,1973 approving acquisition of bank location in the State except in towns in which a by CBT Corporation, Federal Reserve BULLETIN 111, 112 commercial bank is headquartered. Although there (February, 1973); See Statement accompanying Order of July 29, 1971 denying acquisition of bank by Midlantic Banks, Inc., are "open" locations in the service area of the 57 Federal Reserve BULLETIN 684, 686 (August 1971); and banks that are the subject of the instant application, Order of February 17, 1972 approving acquisition of bank by it appears that New Britain Bank is the only one United Jersey Banks 58 Federal Reserve BULLETIN 296 (March, 1972). of the three banks that has the resources to pursue 3 See Statement accompanying Order of February 7, 1972 an expansionary branching policy into the service approving acquisition of bank by Midlantic Banks, Inc., 58 areas of the other two banks. However, the towns Federal Reserve BULLETIN 286, 287-288 (March, 1972); around Hartford that are not subject to "home Statement accompanying Order of April 7, 1972 approving acquisition of bank by Midlantic Banks, Inc., 58 Federal office protection" are heavily banked, and New Reserve BULLETIN 475, 477 (May, 1972); Order of February Britain Bank, having recently closed a branch 17, 1972 approving acquisition of bank by United Jersey Banks, 58 Federal Reserve BULLETIN 296 (March, 1972); and office after five year«s of unprofitable operations at Order of January 19, 1973 approving acquisition of bank by that branch, is not considered likely to pursue an CBT Corporation, Federal Reserve BULLETIN 111, 112 (Febaggressive branching policy in the near future. ruary, 1973). Consummation of the proposed transactions is 4 See Statement accompanying Order of April 17, 1970, unlikely to adversely affect potential competition. approving application by First Connecticut Bancorp, Inc. to become a bank holding company, 56 Federal Reserve BULLE- Hartford National Corporation, a bank holding TIN 452 (May, 1970). That decision is uniquely "on all fours" company controlling the largest bank in the Hart- with the instant application having been found to present the same procompetitive effects in what has become the Hartfordford-New Britain market, has objected to the form New Britain banking market that the Board finds are presented of the instant proposal and has urged the Board by the instant application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 FEDERAL RESERVE BULLETIN • DECEMBER 1973 The financial conditions of Applicant and its meaning of the Bank Holding Company Act, has proposed subsidiary banks are generally satis- applied for the Board's approval under § 3(a)(3) factory. Management of all three banks is gener- of the Act (12 U.S.C. 1842 (a)(3)) to acquire all ally considered good, and consummation of the of the voting shares (less directors' qualifying proposed transaction should provide greater man- shares) of the successor by merger to Mechanics agerial depth to the banks. Prospects for all are National Bank of Burlington County, Burlington generally favorable in view of Applicant's inten- Township, New Jersey ("Bank"). The bank into tion to strengthen and develop the banking opera- which Bank is to be merged has no significance tions and services of its subsidiary banks. Accord- except as a means to facilitate the acquisition of ingly, banking factors weigh in favor of approval the voting shares of Bank. Accordingly, the of the application. proposed acquisition of shares of the successor Considerations relating to the convenience and organization is treated herein as the proposed acneeds of the communities to be served also favor quisition of the shares of Bank. approval. There is no evidence that the banking Notice of the application, affording opportunity needs of the communities to be served are not for interested persons to submit comments and being adequately met. Nevertheless, consumma- views, has been given in accordance with § 3(b) tion of the proposed transaction is expected to of the Act. The time for filing comments and views enable Guaranty Bank and Terryville Bank to has expired, and the Board has considered the expand their trust and electronic data processing application and all comments received in light of services and to offer credit card programs to their the factors set forth in § 3(c) of the Act (12 U.S.C. customers. Combined programs for electronic data 1842(c)). processing, investment, personnel, and auditing Applicant, the largest bank holding company in should improve the quality of services that the New Jersey, controls eight banks with aggregate banks presently offer. Most importantly, it is ex- deposits of approximately $1.5 billion, reprepected that the convenience and needs of residents senting 7.6 per cent of total deposits in commercial of the Hartford-New Britain banking market, banks in the State.1 Applicant's acquisition of presently dominated by two banks, will be pro- Bank (deposits of almost $90 million) would inmoted by the positive competitive effect that the crease its share of commercial bank deposits in formation of this new bank holding company is New Jersey by 0.5 percentage point and there expected to have in that market. It is the Board's would-be no significant increase in the concentrajudgment that the transaction would be in the tion of banking resources in the State. public interest and that the application should be Bank operates 15 offices in Burlington County, approved. New Jersey; three of those offices are in the On the basis of the record, the application is Philadelphia-Camden banking market2 and the reapproved for the reasons summarized above. The maining 12 offices are in the Trenton banking transaction shall not be made (a) before the thir- market.3 In the former market there are a total tieth calendar day following the effective date of of 50 commercial banking organizations which this Order or (b) later than three months after the hold combined deposits of over $12 billion. Bank effective date of this Order, unless such period is the 24th largest organization therein and controls is extended for good cause by the Board, or by deposits of approximately $41 million, reprethe Federal Reserve Bank of Boston pursuant to senting only 0.3 per cent of total market deposits. delegated authority. Applicant is not represented in this market in By order of the Board of Governors, effective which five of New Jersey's multi-bank holding November 16, 1973. companies are present. The Board concludes that Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent *A11 banking data are as of December 31, 1972; all market and not voting: Chairman Burns. data are as of June 30, 1972, and reflect holding company (Signed) CHESTER B. FELDBERG, formations and acquisitions approved by the Board through September 30, 1973. [SEAL] Secretary of the Board. 2 The Philadelphia-Camden banking market consists of Camden County and parts of Gloucester and Burlington Coun- FIRST NATIONAL STATE BANCORPORA- ties in New Jersey and Delaware County, Philadelphia County TION, NEWARK, NEW JERSEY and parts of Chester, Montgomery and Bucks Counties in Pennsylvania. ORDER APPROVING ACQUISITION OF BANK 3 The Trenton banking market consists of Mercer County and parts of Burlington, Ocean, Monmouth, Middlesex and First National State Bancorporation, Newark, Somerset Counties in New Jersey and the eastern portion of New Jersey, a bank holding company within the Bucks County in Pennsylvania. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 901 approval of the proposed acquisition would not However, foreclosure of this competition is not eliminate existing competition or adversely affect considered serious inasmuch as the Philaany banking organization in the Philadelphia- delphia-Camden market contains a large number Camden banking market. of independent competitors and bank holding The Trenton banking market is presently served company subsidiaries. Also, approval herein will by 30 commercial banking organizations holding enable Bank to compete more effectively with the combined deposits of $1.5 billion; Bank is the much larger banking organizations already operatninth largest therein with deposits of over $40 ing in this market. million, representing 2.7 per cent of deposits in Similarly, the Board does not find a strong the market. Four of New Jersey's multi-bank likelihood of significant competition developing holding companies, including Applicant, are pres- between Applicant (through Central) and Bank in ently represented in the market. Applicant's sub- the Trenton banking market. Legislation recently sidiary, First National State Bank of Central Jer- enacted in the State permits branching by each sey, Trenton ("Central"), operates three offices bank into portions of the market served by the in the Trenton market with total deposits of $56.2 other; thus, Central may now open branches in million and is the sixth largest bank with 3.9 per the Burlington County portion of the market while cent of market deposits. Upon consummation of Bank is permitted to branch into Mercer County. the proposed acquisition, Applicant would become However, the potential for such competition is the third largest banking organization in the Tren- small at present, as only three municipalities in ton market and hold 6.5 per cent of total deposits the Burlington portion of the market are presently therein. By comparison, the first and second larg- open to branching; such entry into the market will est banking organizations in the market would be restricted until 1975 when branch office proteccontinue to hold 31 per cent and 14 per cent of tion is removed. Furthermore, due to Bank's low those deposits, respectively, and 29 banking orga- capital position and poor earnings record, it does nizations would remain in the Trenton market. not appear that Bank is likely to branch into the The service areas of Bank and Central do not Mercer County portion of the market in which overlap and the nearest existing offices of the two Central operates. Although consummation of the banks are approximately eleven miles apart; there proposal would foreclose the possibility that Apare other banking alternatives located in the inter- plicant would expand in the Trenton market vening area. Central obtains nearly all of its de- through branches of its present subsidiaries, the posits in the Trenton market whereas Bank derives proposed acquisition would not raise barriers to approximately half of its deposits from the Phila- entry into the Trenton market since numerous delphia-Camden market and the remaining half independent banks would remain available as posfrom the Trenton market. In addition, it should sible vehicles for entry. On the basis of these and be noted that the respective Trenton market shares other facts of record, the Board concludes that of Central and Bank are generated from different consummation of the proposed acquisition would portions of that market; accordingly, upon ap- not have any significant adverse effect upon existproval, Applicant would develop business from a ing competition and would have only a slightly segment of the Trenton market in which it pres- adverse effect on future competition. ently is not represented. Furthermore, Bank does The financial condition and managerial renot derive any meaningful business from the serv- sources of Applicant and its subsidiary banks are ice areas of any of Applicant's other subsidiaries. satisfactory and future prospects for all are favor- The Board concludes that approval of the proposed able; upon consummation, Bank's financial and acquisition would not eliminate significant existing managerial resources will be satisfactory in view competition or adversely affect any banking orga- of Applicant's commitment to inject into Bank an nization in the Trenton banking market. additional $2 million of equity capital. Applicant It appears that consummation of this proposal proposes to assist Bank in offering new and imis likely to have only a slightly adverse effect on proved services including trust, data processing, future competition between Applicant and Bank municipal financing, and international services as in the aforementioned banking markets. As an well as an improvement in Bank's general lending alternative to acquiring Bank, Applicant could policies. Although it appears that similar services enter the Philadelphia-Camden market by acquir- are presently available in Bank's areas, the ining one of the market's smaller independent banks, creased and improved services would provide cusby forming a de novo bank, or by branching into tomers in both markets with an additional conventhe market through one of its existing subsidiaries. ient source of full-service banking. Moreover, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Bank is the principal bank serving the area en- market shares in each banking market, there is compassing the Fort Dix Army and McGuire Air significant competitive impact by the acquisition Force Bases. Bank's activities and services are of Bank by the largest bank holding company in very limited at these locations and Applicant plans the State. to appreciably increase those services. Therefore, I agree with the majority that there is a slightly convenience and needs considerations are signifi- adverse effect on existing competition in the Trencant and, in the Board's judgment, outweigh the ton banking market. However, in addition, I think proposal's slightly adverse effect on competition. there would be a substantial elimination of proba- It is the Board's judgment that the proposed ac- ble future competition in both the Trenton and quisition would be in the public interest and that Camden banking markets. At present Applicant's the application should be approved. subsidiary bank ("Central"), located in the Tren- On the basis of the record, the application is ton banking market, could branch or Applicant approved for the reasons summarized above. The could expand de novo into Bank's service area in transaction shall not be made (a) before the thir- the Trenton banking market. By January 1975, tieth calendar day following the effective date of when branch office protection statutes will be this Order or (b) later than three months after the eliminated for the most part in New Jersey, Central effective date of this Order, unless such period could then branch into Bank's Camden service is extended for good cause by the Board or by area (Burlington County). This is a short period the Federal Reserve Bank of New York pursuant of time to await further expansion and would cause to delegated authority. little hindrance to future planning. At present By order of the Board of Governors, effective Applicant could expand into the Philadelphia- November 23, 1973. Camden market de novo or through a foothold acquisition. Voting for this action: Vice Chairman Mitchell and Gover- Present market conditions should give Applicant nors Daane and Holland. Voting against this action: Governor a strong incentive to expand into Bank's portions Bucher. Absent and not voting: Chairman Burns and Governors Brimmer and Sheehan. of these banking markets. Burlington County is the second fastest growing county in New Jersey. (Signed) CHESTER B. FELDBERG, Bank's service area appears to have substantial [SEAL] Secretary of the Board. long term growth prospects at the outer fringes of two metropolitan areas now merging into one another. These prospects also lessen the risk posed DISSENTING STATEMENT OF GOVERNOR BUCHER by possible reductions at the two military bases in the area. As might be expected in formerly rural I cannot concur with the majority decision ap- areas, the Camden and Trenton suburbs appear proving the application by First National State attractive for expansion given the number of ex- Bancorporation ('4Applicant") to acquire the Me- isting bank offices per capita. It should also be chanics National Bank of Burlington County noted that, in spite of its conservative practices, ("Bank"). There are, in my view, countervailing Bank has grown from approximately $52 million considerations which both lessen the asserted pub- to near $90 million in deposits over the last five lic benefits and increase the adverse impact of this years. acquisition upon competition. On balance these I would prefer a holding company with the factors weigh for a denial. resources of Applicant to enter new market areas As noted by the majority, Bank has service areas either de novo or by foothold acquisition. My in both the Philadelphia-Camden and the Trenton study causes me to conclude that this is a reasonbanking markets. Thus, the market share data able and pro-competitive alternative in this case. should be evaluated through a consideration of Further, the presence of a large holding company Bank's location at the interface of these adjacent combined with Bank's existing branch network SMS A banking markets. My analysis leads me to may deter the entry of other banks into this area, believe that Bank, a primarily retail banking thus restricting future banking alternatives availoperation with fifteen branch offices, has a strong able to locally limited consumers. marketing position in the growing suburban serv- Affiliation with Applicant would probably be of ice areas on either side of this SMS A interface. some aid to Bank in strengthening its capital and Thus, although the two banking markets are not management. However, given the detrimental highly concentrated and Bank has relatively small competitive effects, the Board ought to consider Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 903 alternative methods to produce these public bene- ter/Tequesta, Tequesta, Florida ("Tequesta fits. Bank's capital accumulation has lagged be- Bank").1 hind Bank's rapid deposit growth. Earnings have Notice of the applications, affording opportunity been below the average of similar sized banks, for interested persons to submit comments and primarily due to a recent large fixed investment views, has been given in accordance with § 3(b) in Bank's new main office and to conservative of the Act. The time for filing comments and views lending practices. Certainly, under these circum- has expired, and the Board has considered the stances, a smaller holding company not already applications and all comments received in light of represented in either of these banking markets the factors set forth in § 3(c) of the Act (12 U.S.C. could offer the same assistance to Bank in im- 1842(c)). proving its overall condition. Taking into consid- Although each of the applications has been eration Bank's marketing position, solid asset separately considered by the Board, because of the base, good growth potential and history of conser- facts and circumstances common to each, this vative banking practices, Bank, standing alone, Order contains the Board's findings and concluhas the capability to attract and compensate man- sions with respect to both applications. agement talent and raise additional capital. An Applicant controls one bank, First Marine Bank additional countervailing factor is that as a con- & Trust Company, Riviera Beach, Florida ("Rivsumer-directed "retail" bank with deposits of iera Bank"), with deposits of about $68 million, about $90 million, Bank has reached a size range which represents approximately 6.1 per cent of where there would be few further benefits pro- total deposits in commercial banks in the West duced by affiliation with a large holding company. Palm Beach County banking market2 and about The convenience and needs of the communities three-tenths of 1 per cent of all such deposits in seem to be well served in the Philadelphia-Camden commercial banks in Florida. Riviera Bank is the and the Trenton banking markets. The proposed fifth largest of 30 commercial banks in the relevant services to be offered by Bank are equally avail- market. In addition, Applicant owns between 15 able through correspondent banks or through fur- per cent and 24.9 per cent of eight other banks, ther internal development. Certainly I would fore- with aggregate deposits of about $162 million, see little need for a bank of this character to including four which are located in the West Palm develop highly sophisticated trust or international Beach County banking market. banking services. Therefore, I cannot agree that Lake Worth Bank, the second largest bank in the convenience and needs criterion outweighs the the West Palm Beach County banking market, adverse competitive effects. controls deposits of $84 million, representing 7.5 Given these factors, I view the acquisition of per cent of total deposits in commercial banks in this sizeable bank as the least desirable form of said market and about four-tenths of 1 per cent expansion by Applicant and as only one of several of all such deposits in commercial banks in alternative methods of raising Bank's competitive Florida. Lake Worth Bank is located about 12 stature. I would deny the application. miles from Riviera Bank; and only very small proportions of Lake Worth Bank's total deposits and loans originate in Riviera Bank's service area. Moreover, although some service overlap exists GENERAL FINANCIAL SYSTEMS, INC., between Lake Worth Bank and the other West RIVIERA BEACH, FLORIDA Palm Beach County banks, including Tequesta Bank, in which Applicant owns voting shares, a ORDER APPROVING ACQUISITION OF BANKS Applicant presently owns 24.9 per cent of the voting shares General Financial Systems, Inc., Riviera Beach, of Lake Worth Bank and 24.3 per cent of the voting shares Florida, a bank holding company within the of Tequesta Bank. Such shares were acquired in 1968 and 1964, respectively without Board approval, since Applicant, meaning of the Bank Holding Company Act, has a one-bank holding company, was not then subject to the Act. applied for the Board's approval under § 3(a)(3) Applicant, through the instant applications, seeks Board approval for acquisitions of enough additional shares of Lake of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 Worth Bank and of Tequesta Bank to give it direct ownership per cent or more of the voting shares of: (1) First and control of 80 per cent or more of the outstanding shares National Bank & Trust Company of Lake Worth, of each bank. 2 Approximated by the upper two-thirds of Palm Beach Lake Worth, Florida ("Lake Worth Bank"), and County. Banking data are as of December 31, 1972, unless (2) First National Bank & Trust Company, Jupi- otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 FEDERAL RESERVE BULLETIN • DECEMBER 1973 significant portion of such overlap involves com- It appears that Applicant has previously engaged mercial loans and real estate loans and arises, for in certain nonbanking activities through corporate the most part, from loan participations between interests which were spunoff to its shareholders Lake Worth Bank and such other banks. In addi- on September 30, 1972. However, certain director tion, Applicant and persons associated with Ap- interlocks and indebtedness remain with respect plicant own voting shares in Lake Worth Bank; to the transferee of such interests. Under section and a close relationship apparently exists between 2(g)(3) of the Bank Holding Company Act, such Applicant and such bank. Consummation of the relationships give rise to a presumption of control proposed acquisition of Lake Worth Bank would of the transferee by Applicant unless the Board, increase Applicant's share of the West Palm Beach after opportunity for hearing, determines that Ap- County banking market to 13.6 per cent and cause plicant is not, in fact, capable of controlling the Applicant to become the largest banking organi- transferee. However, there appear to be no signifzation in said market. Such consummation would icant competitive factors present in considering the not, however, enable Applicant to dominate the possible adverse interface between such nonbank- West Palm Beach County banking market, since ing activities and Applicant's present and proposed 12 holding companies, including the second, third banking subsidiaries. Accordingly, the Board beand sixth largest banking organizations in the lieves that the instant applications may be ap- State, are represented in said market. Moreover, proved without first determining Applicant's consix of the market's banking organizations each trol, or lack thereof, of said nonbanking interests; control between 6 and 13 per cent of total market such a determination shall be made at a later date. deposits. Accordingly, the Board concludes that Applicant has indicated that, within six months consummation of the proposed acquisition of Lake after consummation of the proposed acquisitions, Worth Bank would not adversely affect competi- it will make equity additions to the capital struction in any relevant area. tures of Lake Worth Bank, Tequesta Bank, and Tequesta Bank, with deposits of $32.4 million, Riviera Bank. In light of this commitment and all is the fourteenth largest bank in the West Palm facts of record, the Board finds that the financial Beach County banking market and controls 2.9 and managerial resources of Applicant and each per cent of total deposits in commercial banks in of subject banks are satisfactory and consistent such market. Tequesta Bank is located approxi- with approval of both applications. Considerations mately 10 miles from Riviera Bank and about 22 relating to the convenience and needs of the commiles from Lake Worth Bank. The amount of munity are likewise consistent with approval. service overlap between Tequesta Bank and each There are, at present, substantial Statewide bank of these banks is, accordingly, quite small and holding companies in Florida which represent sigdoes not represent a substantial anticompetitive nificant competitive factors in Florida banking; the factor. Moreover, Applicant and persons asso- addition and strengthening of medium and smaller ciated with Applicant own approximately 44 per companies, like Applicant, should produce public cent of the outstanding voting shares of Tequesta benefits by enhancing competition throughout the Bank. A close relationship apparently has existed State. It is the Board's judgment that the proposed between Applicant and Tequesta Bank since the acquisitions are in the public interest and that both latter's formation in 1963; and persons affiliated applications should be approved. with Applicant have always participated in Te- Based upon the record, the applications are questa Bank's management. Upon consummation approved. The transactions shall not be made (a) of the proposed acquisition of both Lake Worth before the thirtieth calendar day following the Bank and Tequesta Bank, Applicant would control effective date of this Order or (b) later than three 16.5 per cent of total deposits in commercial banks months after the effective date of this Order, unless in the West Palm Beach County market. However, such period is extended for good cause by the Applicant would continue to face significant com- Board, or by the Federal Reserve Bank of Atlanta petition from numerous strong banking organi- pursuant to delegated authority. zations already represented in this market. Ac- By order of the Board of Governors, effective cordingly, consummation of the proposed acquisi- November 6, 1973. tion of Tequesta Bank would not, either in itself or in conjunction with acquisition of Lake Worth Voting for the Board's action approving the acquisition of Bank, enable Applicant to dominate the West Palm Lake Worth Bank: Vice Chairman Mitchell and Governors Beach County banking market and would not Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. Absent and not voting: Chairman Burns adversely affect competition in any relevant area. and Governor Daane. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 905 Voting for the Board's action approving the acquisition of being inadequately served at present. Moreover, Tequesta Bank: Vice Chairman Mitchell and Governors Brim- Applicant's resolve to inject equity capital into mer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns and Governor Daane. certain banks, though commendable, should not influence the Board's result, since one such bank (Signed) CHESTER B. FELDBERG, is not an object of the instant application, and [SEAL] Secretary of the Board. nothing in the record indicates that Applicant is the only possible source of equity capital for the STATEMENT OF GOVERNOR BRIMMER, other two. CONCURRING IN PART AND DISSENTING IN PART The record in the instant case contains evidence of acquiescence (by corporate holders of a signifi- I would approve the application to acquire Te- cant percentage of shares of Lake Worth Bank) questa Bank, but I would deny the application to in management and policy decisions by Appliacquire Lake Worth Bank. cant's representatives with respect to such bank. Acquisition by Applicant of Lake Worth Bank It is my judgment that the facts of this case would unite under a single parent the second and warranted closer scrutiny by the Board of the fifth largest banks in the West Palm Beach County cooperative arrangements between Applicant and market and cause Applicant to become the largest the corporate organizations involved to determine banking organization in that market. Acquisition whether such arrangements contravene those proof both Lake Worth Bank and Tequesta Bank visions of the Bank Holding Company Act prohiraises Applicant's share of the relevant market biting, without prior Board approval, direct or from 6.1 per cent to 16.5 per cent—twice that indirect control of voting shares of a bank. of all but three of Applicant's competitors and The application to acquire shares of Lake Worth significantly larger than the share enjoyed by the Bank should be denied. market's second largest banking organization. On the other hand, acquisition only of Tequesta Bank ORDERS UNDER SECTION 4(c)(8) would increase Applicant's market share to only OF BANK HOLDING COMPANY ACT 9.0 per cent, and it would not place Applicant in a dominant position in the West Palm Beach F&M NATIONAL CORPORATION, market. WINCHESTER, VIRGINIA In my view, the Board should not sanction the elimination of competition between the second and ORDER DENYING ACQUISITION OF VIRGINIA LOAN fifth largest banks in West Palm Beach County; AND THRIFT CORPORATION nor should the Board sanction the elimination of competition between Lake Worth Bank and Te- F&M National Corporation, Winchester, Virquesta Bank. Although Applicant now owns shares ginia, a bank holding company within the meaning of Lake Worth Bank and additional shares of such of the Bank Holding Company Act, has applied bank are held by officers, directors, employees, for the Board's approval, under § 4(c)(8) of the and shareholders of Applicant, the record supports Act and § 225.4(b)(2) of the Board's Regulation the view that Applicant does not control Lake Y, to acquire all of the voting shares of Virginia Worth Bank and that Applicant's influence with Loan and Thrift Corporation, Winchester, Virginia that bank, though substantial, might decline were ("Company"), a company that engages in the subject application disapproved. The record indi- activities of making consumer installment loans cates, for example, that banks in which Applicant and purchasing consumer installment sales finance owns minority interests (including Lake Worth contracts, engaging in the general consumer fi- Bank and Tequesta Bank) set their own service nance business, selling credit life and credit health charges and loan rates and that actual competitive and accident insurance to borrowers, and conductdifferences do prevail among these various banks. ing other financial activities as permitted by the Such differences are inconsistent with control. Code of Virginia as it pertains to industrial loan There has been no showing that the anticom- associations. Such activities have been determined petitive effects of the proposed acquisition of Lake by the Board to be closely related to banking (12 Worth Bank are clearly outweighed in the public CFR 225.4(a)(1), (2) and (9)). interest by the probable effect of the transaction Notice of the application, affording opportunity in meeting the convenience and needs of the com- for interested persons to submit comments and munity to be served. Nothing in the record sug- views on the public interest factors, has been duly gests that the banking needs of the community are published (38 Federal Register 26833). The time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 FEDERAL RESERVE BULLETIN • DECEMBER 1973 for filing comments and views has expired, and sumer loan lenders from 12 to 11. Furthermore, none has been timely received. existing competition between Applicant (the larg- Applicant controls one bank with deposits of est consumer loan lender in the market) and Com- $91.8 million, which represents less than one per pany (the fourth largest consumer loan lender) cent of total commercial bank deposits in the State would be eliminated, and Applicant's market share as of June 30, 1973. In the relevant banking of consumer loans would increase from 38 per cent market (approximated by the city of Winchester to 43 per cent. and the counties of Frederick and Clarke), Appli- The market for thrift deposits is concentrated, cant's bank, Farmers and Merchants National with the top three firms holding almost 75 per cent Bank ("Bank"), Winchester, Virginia, is domi- of thrift deposits. Approval of the proposed acquinant, controlling approximately 44 per cent of total sition would increase this three-firm concentration market deposits. The second largest bank controls to 76 per cent and would reduce the number of approximately 24 per cent of the market deposits; competitors in the market from eight to seven. and the remaining four banks control 32 per cent Existing competition between Applicant (ranked in the aggregate. (All banking data are as of June first in thrift deposits) and Company (ranked sev- 30, 1972, unless otherwise noted.) enth) would be eliminated, and Applicant's market Company (assets of $2.3 million as of June 30, share would increase from 32.1 per cent to 33.5 1973), one of only five industrial loan associations per cent. The Board concludes that consummation chartered by the State of Virginia, issues uninsured of the proposal would have a substantially adverse "certificates of investment" to fund the making effect on existing competition in both product of consumer installment loans and the purchasing markets. of consumer installment finance contracts. Com- Virginia law prohibits the chartering of any new pany also sells credit life and credit health and industrial loan institutions, such as Company, accident insurance to borrowers. Its sole office is which can obtain funds through the issuance of located in Winchester, Virginia. certificates of investment. While Applicant would The relevant product markets for considering the be effectively unable to form an industrial loan competitive aspects of the proposed acquisition association de novo, Applicant's bank and nonappear to be those for consumer loans and thrift banking subsidiaries can offer all of the important deposits; the relevant geographic market for these lending services provided by Company. Appliactivities is approximately the same as the banking cant's proposed acquisition of Company would market in which Bank competes. Bank had out- eliminate Company as a possible foothold acquisistanding consumer installment loans of the types tion by a State-wide banking organization not made by consumer finance companies of $9.6 presently represented in this market or as an acmillion, representing about 39 per cent of con- quisition by a nonbank financial company, and sumer installment loans held by commercial banks would further entrench Applicant's dominant poin the relevant market, and thrift deposits of $34.8 sition. The Board concludes that consummation million representing 32.1 per cent of those held would have a substantially adverse effect on poby banks and nonbanks in the market. In addition tential competition. to Bank, Applicant operates two finance compa- Section 4(c)(8) of the Bank Holding Company nies in Winchester, a subsidiary, Winchester Act requires the Board to find that performance Credit Corporation ("Credit"), and its subsidiary, by Company as an affiliate of Applicant "can Rouss Finance Company ("Finance"). Credit and reasonably be expected to produce benefits to the Finance hold about 32 per cent of the consumer public such as greater convenience, increased installment loans held by nonbanking offices in the competition, or gains in efficiency that outweigh relevant market. Company had outstanding con- possible adverse effects, such as undue concentrasumer loans of $1.5 million representing about 25 tion of sources, decreased or unfair competition, per cent of those held by nonbanks in the relevant conflicts of interest or unsound banking pracmarket, and 1.4 per cent of market thrift deposits tices". In seeking to meet its burden of demonheld by banks and nonbanks. strating that the acquisition would be in the public The market for consumer loans is concentrated, interest, Applicant indicates that affiliation would with the three largest lenders holding about 83 per strengthen Company's competitive ability. While cent of outstanding consumer loans. Approval of Company does have a problem of successor manthe proposed acquistion would increase this three- agement which Applicant is capable of solving, firm concentration to approximately 88 per cent Company's earnings are good and there would and would reduce the number of competing con- appear to be less anticompetitive solutions to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 907 problem than affiliation with Applicant. Applicant aries, The Trust Company of First Virginia, Fairalso submitted anticipated reductions in rates fax, Virginia ("Trust Company"), provides tradicharged by Company. While those anticipated rate tional fiduciary services including, for example, reductions promise some public benefit, based on acting as trustee under private and testamentary the foregoing and other considerations reflected in trusts, and, in addition, acts as investment adviser the record, the Board finds that the public benefits to approximately 40 managing agency accounts to be derived from the proposed acquisition do located principally in Virginia.3 However, only 16 not outweigh the substantially adverse competitive such accounts, representing about 3.5 per cent of effects of the proposal. Accordingly, the applica- Trust Company's 1972 gross receipts, are located tion is hereby denied. in Northern Virginia in or near the Washington, By order of the Board of Governors, effective D. C., SMSA. November 21, 1973. Company commenced business as a sole proprietorship in April 1969, and became incorpo- Voting for this action: Chairman Burns and Governors rated under the laws of Washington, D. C., on Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland. January 6, 1971. The Company maintains two (Signed) CHESTER B. FELDBERG, offices; both are located within the Washington, [SEAL] Secretary of the Board. D. C., SMSA, which approximates the relevant market. Company is small by industry stand- FIRST VIRGINIA BANKSHARES CORPORAards—its 1972 gross receipts totaled only about TION, FALLS CHURCH, VIRGINIA $64,000. Moreover, Company competes with a large number of advisory firms and banks within ORDER APPROVING ACQUISITION OF ROBERT C. the Washington, D. C., area. Although Com- GILKISON, INC., WASHINGTON, D. C. pany's clients presently number about 155 and it First Virginia Bankshares Corporation, Falls services portfolios whose aggregate value approx- Church, Virginia, a bank holding company within imates $37 million, a great number of its clients the meaning of the Bank He ling Company Act, are individual investors whose portfolios are not has applied for the Board's appi val, under section large by industry standards. In view of the relative 4(c)(8) of the Act and § 225.4(b)(. > of the Board's size of Company, the number and size of its Regulation Y, to acquire all of the noting shares competitors, and other facts of record, the Board of Robert C. Gilkison, Inc., Washington, D. C. considers that the proposed acquisition would not ("Company"), a company registered with the eliminate any significant existing competition. Securities and Exchange Commission under the There is no evidence in the record that consum- Investment Advisers Act of 1940. Company promation of the proposed acquisition would lead to vides portfolio investment advice on a discretionundue concentration of resources, unfair competiary and/or advisory basis for individuals, trusts, tion, conflicts of interest, unsound banking pracand corporations.1 Such activity has been deter- tices, or other adverse effects. Access to Applimined by the Board to be closely related to the cant's data processing facilities may enable Combusiness of banking (12 CFR 225.4(a)(5)). pany to improve both the quality and extent of Notice of the application, affording opportunity its services; and affiliation with Applicant will for interested persons to submit comments and insure continuity of management in Company views on the public interest factors, has been duly should its present officers ever become unavailapublished (38 Federal Register 24933). The time ble. for filing comments and views has expired, and In its consideration of subject proposal, the none has been timely received. Board has considered Applicant's expression of Applicant, the sixth largest banking organi- purpose to enter into employment contracts, each zation in Virginia, controls 23 banks with aggre- including a covenant not to compete, with Comgate deposits of $718 million,2 representing 6.7 pany's two principal officer-shareholders. Coveper cent of total deposits in commercial banks in nants not to compete often represent legitimate Virginia. One of Applicant's nonbanking subsidi- business requirements of parties to contracts for the purchase of a business; and the courts tradi- 1Applicant had indicated that Company neither holds nor votes any securities and that no securities are held in the 3One of Applicant's subsidiaries advises a real estate invest- Company's name. ment trust; however, Company has no clients that are real estate 2 Banking data are as of December 31, 1972, adjusted to investment trusts. Other nonbanking subsidiaries of Applicant reflect holding company acquisitions and formations approved engage in leasing, mortgage lending, consumer finance, and through September 30, 1973. insurance activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 FEDERAL RESERVE BULLETIN • DECEMBER 1973 tionally have upheld such covenants if reasonable C. Gilkison, Inc. My decision is based on the in duration, scope, and geographic area. Although existence of covenants not to compete in proposed such covenants do not offend the public interest employment contracts between Applicant and per se, the Board will scrutinize the facts in each Gilkison Company's two principal officer-sharecase to determine whether particular employment holders. The proposed covenants would limit contracts and accompanying covenants not to competition between these individuals and Gilkicompete are consistent with the public interest. son Company for a period of five years after each Applicant represents that each covenantee would of them leaves the company's employ. be prohibited from soliciting any client, officer, My reasons for disapproving covenants not to or employee of Company for a period not to compete have been stated fully in several Dissentexceed five years following said covenantee's ing Statements in the past.1 In general, I disapdeparture from Company. Applicant represents prove such covenants because they invariably refurther that this prohibition would not apply to sult in a lessening of competition—a result that clients, officers, or employees acquired or hired is inconsistent with the public interest and thus by Company after the covenantee's departure and in conflict with the standards of the Bank Holding that, subject to the above restrictions, each cove- Company Act. In acting upon an application under nantee would be free to engage in the investment § 4(c)(8) of the Act, the Board must determine advisory business at any geographic location at any whether the acquisition can reasonably be expected time. Having reviewed the details of the covenants to produce benefits to the public, such as greater not to compete proposed by Applicant, the Board convenience, increased competition, or gains in finds that their provisions are consistent with the efficiency, that outweigh possible adverse effects, public interest, and the existence of such covenants such as decreased or unfair competition; and the does not require denial of the application. Board must deny any application in which possible Based upon the foregoing and other consid- adverse effects are not outweighed by public benerations reflected in the record, the Board has efits. determined that the balance of the public interest The present case is the first in which the Board factors the Board is required to consider under has considered a covenant not to compete incident section 4(c)(8) is favorable. Accordingly, the ap- to acquisition of an investment advisor firm. plication is hereby approved. This determination However, in my judgment, such covenants are no is subject to the conditions set forth in section less objectionable here than they were in previous 225.4(c) of Regulation Y and to the Board's au- cases. The lessening of competition that will result thority to require such modification or termination from the proposed covenants is not outweighed of the activities of a holding company or any of by other public interest considerations presented its subsidiaries as the Board finds necessary to in the application. Accordingly, I would deny the assure compliance with the provisions and pur- application. poses of the Act and the Board's regulations and orders issued thereunder, or to prevent evasion thereof. The acquisition of Company shall be made MANUFACTURERS HANOVER no later than three months after the effective date CORPORATION, of this Order, unless such period is extended for DOVER, DELAWARE good cause by the Board or by the Federal Reserve Bank of Richmond pursuant to authority hereby ORDER APPROVING ACQUISITION OF CITIZENS delegated. MORTGAGE CORPORATION By order of the Board of Governors, effective On June 25, 1973, the Board issued an order November 29, 1973. denying the application of Manufacturers Hanover Corporation, Dover, Delaware, to acquire sub- Voting for this action: Chairman Burns and Governors Mitchell. Daane, Sheehan, Bucher, and Holland. Voting stantially all of the assets of Citizens Mortgage against this action: Governor Brimmer. Corporation (''Citizens"), Southfield, Michigan, (Signed) CHESTER B. FELDBERG, pursuant to § 4(c)(8) of the Act and § 225.4(b)(2) [SEAL] Secretary of the Board. of the Board's Regulation Y. The Board issued a statement, dated June 29, 1973, explaining its DISSENTING STATEMENT OF GOVERNOR BRIMMER I would disapprove the application by First 1CBT Corporation, 1973 Federal Reserve BULLETIN 469, 471; Orbanco, Inc., 1973 Federal Reserve BULLETIN 367, Virginia Bankshares Corporation to acquire Robert 368. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 909 reasons for the denial of the application (1973 sented by FHA/VA mortgages. During the same Federal Reserve BULLETIN 532). period, Citizens also originated $15.7 million of On August 31, 1973, the Board granted a re- mortgages on income-producing property and quest for reconsideration filed with the Board by made construction loans of $67 million. Since the Applicant. The request for reconsideration, December, 1968, all of Citizens' shares have been which was filed pursuant to § 262.3(g)(5) of the owned by U. S. Industries, Inc., New York, New Board's Rules of Procedures (12 CFR York, a large manufacturing conglomerate. 262.3(f)(6)), was granted because the request pre- The Board was concerned in its denial order sented relevant facts (particularly concerning the with the possibility of the elimination of probable public benefits of the application) that, for good future competition between Applicant and Citicause shown, were not previously presented to the zens. Applicant has been able to provide informa- Board and reconsideration appeared otherwise ap- tion which would indicate that the probability of propriate. Citizens expanding into the areas where Applicant Citizens engages in the activities of a mortgage presently competes are very slender. Basically, banking company and acts as an investment advi- this information relates to Citizens' posture as a sor to a real estate investment trust. Such activities subsidiary of U. S. Industries, Inc. This latter have been determined by the Board to be closely company was reluctant to provide the capital related to banking (12 CFR 225.4(a)(1), (3), and needed for both product and geographic expansion (5)). Notice of the reconsideration, affording op- by Citizens. In fact, U. S. Industries, Inc., as part portunity for interested persons to submit com- of its general program for its subsidiaries, required ments and views on the public interest factors, has a positive cash flow to it from Citizens. From 1969 been duly published (38 Federal Register 24419). to 1972, Citizens provided a net cash flow of about The time for filing comments and views has ex- $2 million to U. S. Industries, Inc. This inhibited pired, and none have been timely received. Citizens in expanding its operations into new Applicant controls five banks with aggregate areas.2 In other words, Citizens was in no better deposits of $10.2 billion, representing 9.4 per cent position than an independent mortgage banker, if of the total deposits of commercial banks in New as good. This financial background with regard to York.1 Applicant's lead bank, Manufacturers Citizens, places its size in proper perspective. Hanover Trust Company ("Bank"), has deposits This documentation of the relationship between of $10.1 billion and is the fourth largest bank in Citizens and U. S. Industries has convinced the the United States. Bank services a mortgage loan Board that Citizens could not be considered a portfolio and originates mortgage loans. Bank, in probable future competitor of Applicant in the general, confines its origination of mortgage loans latter's market areas. Applicant could expand into on one-to-four family residences to local markets Citizens' market areas. However, there are nuwithin New York State while making loans on merous potential entrants so that the elimination income-producing property as well as construction of Applicant would not have a substantially adloans throughout a large part of the nation. During verse effect on future competition. 1971, Bank originated $3.4 million in loans on Another adverse factor related to a covenant not income-producing property, $121 million of con- to compete given Applicant by U. S. Industries, struction loans, and $8.2 million of loans on Inc., which prohibited the latter from engaging in one-to-four family residences. a business substantially similar to that conducted Citizens (1972 year end assets of $111 million) by Citizens for a period of five years at any primarily operates in the three midwestern states location in the United States. The Board's majority of Michigan, Ohio, and Illinois. Citizens had a felt that the geographic scope in this covenant was servicing portfolio of $757 million as of year end too extensive. Applicant has now completely eli- 1972 ranking 23rd among mortgage bankers on minated this covenant not to compete from its this basis. (The Board recognizes that rank based agreement with U. S. Industries so that this adon servicing volume is an imperfect measure of verse effect is no longer present. the size of the firm. However, in many cases it As the Board noted in its earlier denial Order, is the only measure available for all mortgage Applicant's lead bank and Citizens do not presbanking firms in a market.) In 1971 it originated ently compete in the same local markets for mort- $126 million of mortgages on one-to-four family residences with $101 million of this total repre- 2Though Citizens opened three new offices in 1973, Applicant has established, through newly presented information, that these were opened in contemplation of Applicant's acquisition 1A11 banking data are as of December 31, 1972. of Citizens. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 FEDERAL RESERVE BULLETIN • DECEMBER 1973 gages on one-to-four family housing. Moreover, tors that the Board is required to consider under though both do make construction loans and loans § 4(c)(8) is favorable. Accordingly, the application on income-producing property, they are very small is hereby approved subject to the conditions set factors in these regional or national markets so forth in § 225.4(c) of Regulation Y (12 CFR there would not be a significant decrease in exist- 225.4(c)) and to the Board's authority to require ing competition in these product lines. such modification or termination of the activities The Board further notes that Citizens is in need of a holding company or any of its subsidiaries of additional capital to continue its present level as the Board finds necessary to assure compliance of operations, and more importantly, to expand with the provisions and purposes of the Act and those operations both into new product lines and the Board's regulations and orders issued theregeographic areas. Applicant has indicated that it under or to prevent evasion thereof. will add approximately $7 million of equity capital The transaction shall be consummated not later to Citizens which should enable it to greatly in- than three months after the effective date of this crease its existing operations. In contemplation of Order unless such period is extended for good the acquisition of Citizens by Applicant, Citizens cause by the Board or by the Federal Reserve Bank opened three new offices in the fast growing of New York pursuant to delegated authority. southeastern United States area. Applicant has By order of the Board of Governors, effective stated that it will continue this type of geographic September 27, 1973. expansion if it receives Board approval to acquire Voting for this action: Chairman Burns and Governors Citizens. Applicant has also indicated it will en- Mitchell, Daane, Sheehan, Bucher, and Holland. Absent and large Citizens' role in the increasingly important not voting: Governor Brimmer. Governor Bucher plans to issue a concurring statement at a future date. field of conventional mortgages. Both these types of expansion would be in the public interest and (Signed) CHESTER B. FELDBERG, constitute positive grounds for approval of the [SEAL] Secretary of the Board. application. Applicant has additionally indicated that it will MELLON NATIONAL CORPORATION, lower interest fees to mortgagors either through PITTSBURGH, PENNSYLVANIA having Citizens warehouse mortgages until such ORDER APPROVING ACQUISITION OF CARRUTH time as mortgage rates decline or by charging MORTGAGE COMPANY lower servicing fees. This commitment is an additional new factor which is in the public interest Mellon National Corporation, Pittsburgh, Pennand weighs in support of approval of the applica- sylvania, a bank holding company within the tion. meaning of the Bank Holding Company Act, has There is no evidence in the record indicating applied for the Board's approval, under § 4(c)(8) that consummation of the proposal would result of the Act and § 225.4(b)(2) of the Board's Reguin unfair competition, conflicts of interest, or un- lation Y, to acquire all of the voting shares of sound banking practices. The extent of concentra- Carruth Mortgage Corporation, New Orleans, tion of resources flowing from this case is not Louisiana ("Carruth"), a company that engages considered undue considering the public benefits in the activity of general mortgage banking and of the proposal. Applicant has agreed that it will acts as an insurance agent with respect to insurance liquidate Citizens Family Assurance Company, a directly related to the extension of credit, including wholly-owned reinsurance subsidiary of Citizens, specifically mortgage redemption insurance, credit upon consummation of this transaction. Applicant accident and health insurance, and credit life inhas further agreed to dispose of an office building surance. Such activities have been determined by in Ohio and certain land in Michigan as soon as the Board to be closely related to banking (12 CFR possible but, in no case, later than two years after 225.4(a)(1) and (9)(ii)(a)). consummation and has stated it will engage in no In addition to the activities enumerated above, land development activities with regard to these Carruth is presently engaged in the sale of hazard properties during the period of retention. Applicant and flood insurance on collateral securing extendoes not presently engage in acting as an invest- sions of credit. Although originally part of the ment advisor to a real estate investment trust and instant application, the request to continue the sale its entry into this activity should provide benefits of hazard and flood insurance was withdrawn by by enabling Citizens to expand the activity. Applicant after an objection to that portion of the Based upon the foregoing and other consid- Application was filed by a third party and Carruth erations reflected in the record, the Board has will discontinue selling this type of insurance upon determined that the balance of public interest fac- consummation of the transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 911 Notice of the application, affording opportunity aries, and Carruth are generally satisfactory and for interested persons to submit comments and consistent with approval of the application. It is views on the public interest factors, has been duly anticipated that consummation of the proposed published (38 Federal Register 13062). The time acquisition will enable Carruth to provide an infor filing comments and views has expired, and creased quantity of mortgage funds in those areas none has been timely received. where it presently operates. It will be able to Applicant's only banking subsidiary, Mellon participate in additional construction and develop- Bank, Pittsburgh, Pennsylvania, is the largest bank ment loans and increase the size of its loans for in the Pittsburgh banking market with deposits of these projects. These advantages will enable Car- $3.65 billion. (All banking data are as of De- ruth to compete more efficiently in the highly cember 31, 1972.) Applicant also engages in competitive New Orleans market. There is no mortgage banking activities through two subsidi- evidence in the record indicating that consummaaries: Mellon National Mortgage Company of tion of the proposed acquisition would result in Colorado (doing business as Morrison and Morri- undue concentration, unfair competition, conflicts son) with an office in Denver, Colorado, servicing of interest, unfair banking practices, or other ada mortgage portfolio of $82 million, and Mellon verse effects. National Mortgage Company of Ohio (formerly Under § 4(a)(2) of the Act, Applicant has until Jay F. Zook, Inc.) with offices in Ohio and Pitts- November, 1974, two years from the date of burgh servicing a mortgage portfolio of $496 mil- becoming a bank holding company, to obtain lion. Applicant's subsidiaries presently rank 44th Board approval to retain Mellon National Mortin the nation in mortgage servicing and upon gage Company of Ohio. Applicant has indicated acquisition of Carruth would rank as 27th. its willingness to separately maintain the assets of Carruth, with assets of $10.7 million and a Carruth in order to facilitate the Board's future mortgage portfolio of $161 million, operates five examination and evaluation of the application to offices in New Orleans and one in Baton Rouge, retain that subsidiary. Accordingly, approval of Louisiana, and derives 80 per cent of its business this acquisition is conditioned on the segregation from these two markets. Carruth engages in ori- of the assets of Carruth and Mellon National ginating and servicing loans on single family resi- Mortgage Company of Ohio. dences and to a lesser extent on apartments and Based upon the foregoing and other considcommercial property. erations reflected in the record, the Board has Applicant's two mortgage banking subsidiaries determined that the balance of the public interest operate from offices in Ohio, Pennsylvania, and factors the Board is required to consider under § Colorado; neither of these firms derives any busi- 4(c)(8) is favorable. Accordingly, the application ness from the New Orleans or Baton Rouge mar- is hereby approved subject to the condition that kets, nor does Mellon Bank hold any mortgage Carruth's assets be maintained separate and apart loans from these markets. No present competition from those of Mellon National Mortgage Corporawould be eliminated by consummation of the tion of Ohio. This determination is additionally proposed acquisition. Moreover, due to the fact subject to the conditions set forth in § 225.4(c) that there are over 80 competitors in the relevant of Regulation Y and to the Board's authority to market arid that the market is over 750 miles from require such modification or termination of the its present subsidiaries, it is unlikely that Applicant activities of a holding company or any of its would enter the New Orleans and Baton Rouge subsidiaries as the Board finds necessary to assure markets de novo. Consummation of this proposal compliance with the provisions and purposes of the will not eliminate any probable future competition. Act and the Board's regulations and orders issued Accordingly, the Board concludes that approval thereunder, or to prevent evasion thereof. The of the application, insofar as related to Carruth's transaction shall be consummated not later than mortgage banking activities, would not have any three months after the effective date of this Order adverse effect on competition, unless such period is extended for good cause by Carruth also sells credit life, credit accident and the Board or by the Federal Reserve Bank of health and mortgage redemption insurance. Due Cleveland pursuant to authority delegated hereto the limited nature of its insurance activities, it with. does not appear that Applicant's acquisition of By order of the Board of Governors, effective Carruth's insurance activities would have any sig- September 27, 1973. nificant effect on existing or future competition. Voting for this action: Vice Chairman Mitchell and Gover- Considerations relating to the financial and nors Daane, Bucher, and Holland. Absent and not voting: managerial resources of Applicant, its subsidi- Chairman Burns and Governors Brimmer and Sheehan. Gov- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 FEDERAL RESERVE BULLETIN • DECEMBER 1973 ernor Bucher plans to issue a concurring statement at a future The doctrine of potential competition is crucial date. to the analysis of applications by holding compa- (Signed) CHESTER B. FELDBERG, nies with existing mortgage banking activities. [SEAL] Secretary of the Board. Given the ease of entry into mortgage banking, a holding company with or without an existing mortgage banking affiliate may exert a beneficial CONCURRING STATEMENT OF GOVERNOR BUCHER influence upon competitive conditions in a market I agree with the Board's decisions allowing by threat of entry. Geographic proximity, the size Mellon National Corporation to acquire Carruth and scope of the bank holding company, and Mortgage Corporation and Manufacturers Hanover penetration prospects for a market are key factors Corporation to acquire Citizens Mortgage Cor- in assessing entry probabilities. Thus, market exporation; however, these applications confirm my tension acquisitions by large holding companies view that the Board must proceed cautiously and need careful analysis to avoid the unnecessary that a completely unrestrictive acquisition and re- elimination of probable future competition. Furtention policy for mortgage banking is unjustified. ther, given the low entry barriers, de novo or In the mortgage banking industry there are several foothold entry should be favored as a pro-competfactors which, if examined in each instance, may itive device irrespective of the size of the entering provide a good analytical foundation for approval institution. or denial. This is the focus of my concurring Therefore, in my view, greater scrutiny should statement. be given to the acquisition of the dominant mort- One of the fundamental issues to which the gage banking firm in concentrated local markets Board must address itself in each acquisition pro- by large bank holding companies which are presposal is whether the consumer-home buyer will ently in that market, or in an adjacent market. I be better or worse off if approval is given. Serious would also be particularly cautious in situations questions can arise as to whether the public bene- where, without strong countervailing factors, apfits relating to operating efficiency, better services, proval is sought of the acquisition by the largest and lower cost, which are frequently ascribed to bank holding companies in the nation of any of proposed affiliations of mortgage banking firms the remaining large national mortgage banking with bank holding companies, exist to a significant firms because of the possible questions of either degree, especially when larger firms are involved. undue concentration or aggregation of financial The advocacy voiced by applicants may not reflect resources. The issue of aggregate concentration the actual probability of the occurrence of the may be applicable particularly in cases where the asserted benefits. Bank holding companies bear the combination of two large firms is proposed—even burden of demonstrating that their proposed non- though they are not actual or potential competitors. banking acquisition will have public benefits out- On the other hand, concern expressed over the weighing any adverse effects, inasmuch as the prospect of the extinction of an independent mortbasic balancing test of § 4(c)(8) requires a showing gage banking industry is, at best, premature. More of public benefits. This balancing test imposes a probably than not a two-tier industry structure will generally stricter competitive standard than those emerge consisting of both affiliated and non-affiexpressed in the antitrust laws. liated firms. Mortgage banking appears to be a Applicants also bear the burden of proof for any naturally local business on the "origination side" other assertions of fact or analysis expressed in of the business with low capital requirements and applications. Many acquisitions have, to a greater minimal economies of scale, but does require at or lesser degree, adverse effects on existing or least one person highly knowledgeable in local real potential competition. One major problem contin- estate activities. On the "take-out" side some ually facing the Board in evaluating the competi- contacts with secondary market buyers are necestive impact of mortgage banking applications is sary, but the barriers to entry at this interface are a lack of complete market data. For example, this not unsurmountable to the aggressive entreis often the case when attempting to determine the preneurs characteristic of this business. Once these local market shares with respect to mortgage orig- business relationships are established, unaffiliated inations. Thus, I would hope that applicants will local firms can probably operate, on balance, as become more conscious of this need and will efficiently as local firms with bank holding comattempt to develop and provide as much of such pany affiliations; and, for this reason, I cannot data as possible so that applications can be acted foresee them as becoming an endangered species upon by the Board with full awareness of all ^among financial institutions. Thus, in fulfilling the factors relevant to competitive considerations. objective of promoting competition in local mar- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 913 kets, I see no need to construct a policy specifi- nial to fifth in the national ranking of mortgage cally designed to protect independent firms. Pro- banking companies. viding alternative sources of mortgage funds to a Hartzler engages in the origination of FHA/VA consumer in his market is, in my view, far more guaranteed mortgage loans on single-family resiimportant than preserving individual firms or the dences and in the servicing of mortgages from its character of an industry. headquarters in Columbus and a branch office in Mansfield, 65 miles to the north. In 1972, Hartzler originated approximately $12.2 million in mort- PHILADELPHIA NATIONAL CORPORATION, gage loans and as of December, 1972, was servic- PHILADELPHIA, PENNSYLVANIA ing a mortgage loan portfolio of $93.4 million. Hartzler's loan originations of $4.7 million in the ORDER DENYING ACQUISITION OF HARTZLER Columbus market3 in 1972 represented 1 per cent MORTGAGE COMPANY of total originations in 1-4 family residential loans Philadelphia National Corporation, Phila- in that area. Hartzler's market share in 1972 of delphia, Pennsylvania, a bank holding company residential loan originations in the Mansfield marwithin the meaning of the Bank Holding Company ket was somewhat larger,4 representing 8.4 per Act, has applied for the Board's approval, under cent of all 1-4 family residential loans for that area. § 4(c)(8) of the Act and § 225.4(b)(2) of the Colonial is Applicant's only direct or indirect Board's Regulation Y, to acquire all of the voting subsidiary which is in a position to compete with shares of Hartzler Mortgage Company, Columbus, Hartzler in either the Columbus or Mansfield mar- Ohio ("Hartzler"), a company that engages in the kets. Colonial has an office in Columbus and activities of originating, purchasing, selling and originated $12 million in mortgage loans, or 2 per servicing real estate mortgage loans. Such activi- cent of the total mortgage originations in the ties have been determined by the Board to be Columbus market in 1972. However, Colonial closely related to banking (12 CFR 225.4(a)(1) and originates only construction and commercial loans (3)). while Hartzler deals exclusively in the separate Notice of the application, affording opportunity product market of residential loans. The proposed for interested persons to submit comments and transaction, therefore, would not eliminate any views on the public interest factors, has been duly direct competition between the two institutions. published (38 Federal Register 22188). The time There are fifteen mortgage companies (including for filing comments and views has expired, and Colonial) with offices in the Columbus market. none has been timely received. Hartzler ranked eleventh among these companies Applicant's sole banking subsidiary, Phila- in 1972 in terms of its volume of mortgage loan delphia National Bank ("Bank"), is the fourth originations. Nine of these fifteen mortgage comlargest bank in Pennsylvania and among the 25 panies rank among the top 100 mortgage firms largest in the nation. It has total deposits of about in the nation. All nine of these firms are subsidi- $2 billion representing 5.3 per cent of total do- aries of a larger holding company or corporation mestic deposits in commercial banks in the State.1 or are awaiting regulatory agency approval to Applicant engages in the mortgage banking busi- become so affiliated. This proposed acquisition ness through a direct subsidiary, Colonial Asso- would eliminate one of the largest of the few ciates, Inc., and through two indirect subsidiaries, independent mortgage banking companies that re- Colonial Mortgage Service Company and Colonial main in the Columbus market. In addition, the Mortgage Service Company of California, both of presence of such large established mortgage bankwhich are present subsidiaries of Bank.2 In terms ing firms, several of which are headquartered in of volume of mortgages serviced, the two affiliated Ohio or the neighbor State of Indiana, has limited Colonial Mortgage Service Companies ("Colo- the attractiveness of the Columbus market for de nial") are, combined, the sixth largest mortgage novo entry. Removal of a remaining independent banking companies in the nation with a portfolio mortgage banker by a significant competitor presof $1.5 billion. The acquisition of Hartzler and -ently in the market may further restrict the ability its affiliation with Colonial would advance Colo- of an outside firm to enter the market by raising the entry barriers even higher. *A11 banking data are as of June 30, 1973, adjusted to reflect acquisitions approved through September 1, 1973. 2 Bank acquired the Colonial Mortgage Service Companies 3The Columbus market includes Franklin County plus conin 1968, and Applicant has applied to the Board under § 4(c)(8) tiguous townships in surrounding counties. of the Act to transfer them from Bank to Applicant's direct 4 The Mansfield market includes Richland County and adjacontrol. cent townships to the east. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Applicant currently has the capability and inter- Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and est to commence the origination of residential not voting: Governor Daane. mortgage loans in the Columbus and Mansfield markets. Its interest in the Columbus market is (Signed) CHESTER B. FELDBERG, manifested through the presence of its subsidiary, [SEAL] Secretary of the Board. Colonial, which originated almost $12 million in mortgage loans in that market in 1972. Thus, ORDER UNDER SECTIONS 3 AND 4 Colonial provides an adequate base from which OF BANK HOLDING COMPANY ACT Applicant may expand into the separate product market of residential loans. Colonial already has UNION BANCORP, INC., an established office, personnel and contacts in the LOS ANGELES, CALIFORNIA market and a demonstrated capability for further ORDER APPROVING FORMATION OF BANK expansion. HOLDING COMPANY At present, Colonial is the sixth largest mort- AND ACQUISITION OF UNIONAMERICA LEASING gage banking firm in the nation, based upon a CORPORATION mortgage servicing volume of $1.5 billion. It AND UNIONAMERICA COMPUTER CORPORATION seems likely that Colonial will continue to compete aggressively to maintain its position as one of the Union Bancorp, Inc., Los Angeles, California, nation's leading mortgage banking organizations. has applied for the Board's approval under § It is the Board's judgment that Colonial is likely 3(a)(1) of the Bank Holding Company Act (12 to expand its mortgage activities de novo in the U.S.C. 1842(a)(1)) of formation of a bank holding Columbus market to include residential mortgage company through the acquisition of 100 per cent lending. The Board concludes, therefore, that of the voting shares of Union Bank, Los Angeles, consummation of the proposed transaction is likely California ("Bank"). to eliminate potential competition in both the Co- At the same time, Applicant has applied for the lumbus and Mansfield markets. The Board has Board's approval under § 4(c)(8) of the Act and reason to believe that Hartzler has the opportunity § 225.4(b)(2) of the Board's Regulation Y to to affiliate with another corporation or holding engage in full-payout leasing activities and eleccompany and that such affiliation would not pro- tronic data processing activities through the acquiduce the anticompetitive effects stemming from the sition, respectively, of Unionamerica Leasing present proposal. Corporation ("Leasing") and Unionamerica Applicant claims that the proposed transaction Computer Corporation ("Computer"), both of Los would result in greater availability of loans to the Angeles, California. Such activities have been public, improved services, operating efficiencies, determined by the Board to be closely related to and a continuation of good management. While banking (12 CFR 225.4(a)(6) and (8)). the acquisition of a mortgage company by a bank Notice of the applications, affording opportunity holding company could have the effect of increas- for interested persons to submit comments and ing loans to the public and increasing the effi- views, has been given in accordance with §§3 ciency of the mortgage firm, it appears that such and 4 of the Act (38 Federal Register 19718). The increased efficiency, if it came from a bank holding time for filing comments and views has expired, company not now competing or likely to compete and the Board has considered the applications and in the market, would have a substantially more all comments received in the light of the factors desirable impact on the public interest. The Board set forth in § 3(c) of the Act (12 U.S.C. 1842(c)), concludes that such public benefits as would be and the considerations specified in § 4(c)(8) of the derived from the proposed acquisition do not out- Act (12 U.S.C. 1843(c)(8)). weigh the probable adverse effects on potential Applicant, recently organized for the purpose competition. of becoming a bank holding company, has no Based upon the foregoing and other consid- business activities and no operating history. The erations reflected in the record, the Board con- proposed transactions are part of a plan of reorcludes that the public interest factors the Board ganization whereby Unionamerica, Inc., Los Anis required to consider under § 4(c)(8) do not geles, California, the present parent corporation outweigh possible adverse effects and that the of Bank, Computer and Leasing, proposes to seprequest should be denied. Accordingly, the appli- arate its banking and permissible nonbanking accation is hereby denied. tivities from its other nonbanking activities. By order of the Board of Governors, effective Bank, with deposits of $2.7 billion, is the sixth November 29, 1973. largest commercial bank in California, controlling Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 915 approximately 4 per cent of total deposits in com- Due to Computer's limited activities and recogmercial banks in the State. (Banking data are as nizing that Applicant's acquisition of Computer is of June 30, 1973.) On the record herein, the Board part of a corporate reorganization, the Board conconcludes that consummation of the proposal cludes that acquisition of Computer by Applicant would not eliminate any existing or potential would not eliminate any existing or potential competition, increase the concentration of banking competition. resources, nor have an adverse effect on the other There is no evidence in the record indicating banks in any relevant area. that consummation of the proposals to acquire The management, financial condition and pros- Computer or Leasing would result in any undue pects of Bank are regarded as generally satis- concentration of resources, unfair competition, factory. The management of Applicant is essen- conflicts of interest, unsound banking practices, tially the same as that of Bank, and the financial or other adverse effects upon the public interest. condition of Applicant, which will depend, at least Based upon the foregoing and other considerations initially, largely upon that of Bank, appears to be reflected in the record, the Board has determined satisfactory. Considerations relating to the con- that the balance of public interest factors that the venience and needs of the communities to be Board is required to consider regarding the acquiserved are consistent with approval. It is the sition of Leasing and Computer under § 4(c)(8) Board's judgment that the proposed acquisition of are favorable and that the application should be Bank would be consistent with the public interest, approved. and that the application to acquire Bank should As part of its consideration of the instant applibe approved. cation, the Board has also considered the plan of Leasing, which was organized de novo by divestiture ("plan") adopted by Unionamerica, Unionamerica, engages in the activity of leasing Inc., in order to terminate its status as a bank personal property or equipment, or acting as agent, holding company in accordance with the irrevobroker, or adviser in leasing such property, where cable declaration filed, pursuant to § 225.4(d) of the lessor recovers its full acquisition cost during Regulation Y, by Unionamerica that it would cease the initial term of the lease from (1) rentals, (2) to be a bank holding company by January 1, 1981. estimated tax benefits, and (3) estimated salvage The plan includes the transfer of Bank, Computer value. Leasing has primarily engaged in acting as and Leasing to Applicant, and thereafter the agent, broker or adviser in arranging such full- transfer of all of Unionamerica's remaining assets, payout lease transactions and, as of December 31, including less than 5 per cent of the voting shares 1972, its gross revenues were only $1.5 million. of Applicant, to a new corporation to be named In view of Leasing's limited business activity and New Unionamerica. As part of the plan of divestithe fact that Applicant's acquisition of Leasing is ture, Unionamerica has submitted documents part of a corporate reorganization, it does not dated May 14, July 23, August 28, October 4 and appear that any existing or potential competition October 8, 1973, to the Board that contain facts would be eliminated upon acquisition of Leasing. and assurances and make certain commitments that Computer, which was originally a division of provide essentially as follows:1 Bank, had gross revenues of approximately $4.5 1. A commitment by Applicant and Bank that million as of December 31, 1972. Computer is neither corporation will control or exert a controlprimarily engaged in providing data processing ling influence or attempt to control or exert a services to Bank. Upon consummation of this controlling influence over New Unionamerica or proposal, Computer shall limit its activities to: (1) any of its subsidiaries through interlocking officer, electronically processing banking, financial and director or policy-making employee relationships related economic data, including the development or in any other manner. of computer programs therefor; (2) making excess 2. A commitment by New Unionamerica with computer time available by furnishing its data respect to Applicant and all of its subsidiaries processing facility and necessary operating per- substantially similar to the commitment in parasonnel to persons who wish to utilize such time; graph 1. (3) selling by-products resulting from the development of programs pertaining to the processing 1The facts, assurances and commitments contained in the of banking, financial and related economic data; documents submitted by Unionamerica are set forth in more and (4) providing any data processing service upon detail in the Board's letter of today's date to Applicant. The request of a customer if such service is not other- contents of the Board's letter, as well as the contents of the documents described in the Board's Order and letter, are wise reasonably available in the relevant market. specifically incorporated into this Order by reference. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 FEDERAL RESERVE BULLETIN • DECEMBER 1973 3. A commitment by Applicant and Bank that involves a conflict of interest with any other of Applicant and all of its subsidiaries and the re- such corporations. spective officers, directors and policy-making em- Notwithstanding the above-mentioned facts, asployees of Applicant and all of its subsidiaries, surances and commitments, the Board is conand the spouses and minor children of such of- cerned that Applicant may be able to control or ficers, directors and policy-making employees, or exert a controlling influence over New Unionany combination of such persons, will not, in the america or New Unionamerica may be able to aggregate, own, control or hold with power to control or exert a controlling influence over Apvote, directly or indirectly, 25 per cent or more plicant. After the effective date of the plan, New of the outstanding voting shares of New Uniona- Unionamerica will own slightly less than 5 per merica. cent of the voting shares of Applicant and Appli- 4. A commitment by New Unionamerica on cant will own, indirectly, approximately 2 per cent behalf of itself and all of its subsidiaries with of the voting shares of New Unionamerica, and, respect to voting shares of Applicant, substantially indirectly, Applicant will hold in a fiduciary casimilar to the commitment in paragraph 3. pacity approximately an additional 3 per cent of 5. A commitment by Applicant and Bank that the voting shares of New Unionamerica. Mr. R. Applicant and all of its subsidiaries will not, in H. Volk, the president and a director of Unionthe aggregate, own, control or hold with power america, and a director of Bank, plans to become to vote, directly or indirectly, 5 per cent or more the president and a director of New Unionamerica, of the outstanding voting shares of New Union- a director of Applicant, and remain a director of america and that neither Applicant nor any of its Bank. Fifteen other former directors of Unionsubsidiaries will, after the effective date of the america will also serve on Applicant's eighteenplan, acquire any shares of New Unionamerica. member board of directors. Applicant, Bank and 6. A commitment by New Unionamerica on New Unionamerica will all be located in the same behalf of itself and all of its subsidiaries with office building. Further, there are longstanding and respect to shares of Applicant substantially similar close associations as well as common interests to the commitment in paragraph 5. between Applicant's proposed subsidiaries and 7. A commitment by Applicant, Bank, and New Unionamerica's proposed subsidiaries. In New Unionamerica that, with the exception of Mr. view of these and other facts of record, the Board R. H. Volk, the proposed president and a proposed regards the interlocking personnel relationship indirector of New Unionamerica, who also plans to volving Mr. R. H. Volk as being inconsistent with serve as a director of Applicant and Bank, and an effective separation of banking and nonbanking Dr. H. Craven, who plans to serve as an economist interests as required by the Act. However, in view for both Bank and a subsidiary of New Union- of the size of both Applicant and New Unionamerica, there will be no interlocking personnel america, and the fact that Unionamerica is taking relationships between New Unionamerica or any significant action to separate its banking from its of its subsidiaries and Applicant or any of its nonbanking interests in advance of the January 1, subsidiaries. 1981, deadline provided in its irrevocable declara- 8. An affidavit from Mr. R. H. Volk which tion, the Board concludes, on the basis of the states that in acting as a director of Applicant and particular facts of this case, that Mr. R. H. Volk's Bank: he will not be acting pursuant to an agree- service for New Unionamerica and for Applicant ment with or under instructions from New Union- (and Bank) for a reasonable transitional period of america and he has not been instructed by Appli- time does not preclude a Board determination of cant or Bank to take any such instruction from an effective separation of banking and nonbanking New Unionamerica; he will not be subject to interests and does not preclude approval of the control by New Unionamerica; he will not repre- transactions herein, provided that Mr. R. H. Volk sent the interests of New Unionamerica; and he terminates his service as an officer, director or will make substantially similar statements with policy-making employee of Applicant and all of respect to UB and Bank with regard to his service its subsidiaries or of New Unionamerica and all as president and a director of New Unionamerica. of its subsidiaries as soon as practicable, but not Mr. R. H. Volk's affidavit also states that in later than January 1, 1977. serving as a director of Applicant, New Union- Accordingly, on the basis of the facts of record america and Bank, he will abstain from voting and for the reasons summarized above, the appliupon any matter to be acted upon by the board cations to acquire Bank, Leasing and Computer of directors of any of those, corporations which are approved subject to all of the referenced facts, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 917 assurances, and commitments contained herein of its subsidiaries as the Board finds necessary to and subject to the further condition that Mr. R. assure compliance with the provisions and pur- H. Volk cease to serve as an officer, director or poses of the Act and the Board's regulations and policy-making employee of Applicant and all of orders issued thereunder, or to prevent evasion its subsidiaries or New Unionamerica and all of thereof. Moreover, the Board's findings and action its subsidiaries not later than January 1, 1977. The herein are subject to amendment, revocation or acquisition of Bank shall not be made (a) before nullification by the Board should it conclude that the thirtieth calendar day following the effective Applicant or any of its subsidiaries exercises condate of this Order nor (b) shall the acquisition of trol or a controlling influence over New Union- Bank, Computer or Leasing be made later than america or any of its subsidiaries or that New three months after the effective date of this Order Unionamerica or any of its subsidiaries exercises unless such period is extended for good cause by control or a controlling influence over Applicant the Board or by the Federal Reserve Bank of San or any of its subsidiaries. Francisco pursuant to delegated authority. The By order of the Board of Governors, effective determinations as to Leasing and Computer's ac- November 7, 1973. tivities are subject to the conditions set forth in § 225.4(c) of Regulation Y and to the Board's Voting for this action: Chairman Burns and Governors authority to require reports by, and make exami- Mitchell, Daane, Brimmer, Bucher, and Holland. Absent and not voting: Governor Sheehan. nations of, holding companies and their subsidiaries and to require such modification or termina- (Signed) CHESTER B. FELDBERG, tion of the activities of a holding company or any [SEAL] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During November 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Dawson Corporation, The Farmers State Bank, 11/12/73 38 F.R. 32176 Lexington, Nebraska Lexington, Nebraska 11/21/73 Forest Lake Finance Company, Forest Lake State Bank, 11/16/73 38 F.R. 32848 Forest Lake, Minnesota Forest Lake, Minnesota 11/28/73 Franklin Bancorporation, Franklin State Bank, 11/19/73 38 F.R. 32974 Somerset, New Jersey Franklin Township, New Jersey 11/29/73 Illinois Neighborhood Develop- The South Shore National Bank of 11/26/73 38 F.R. 33419 ment Corporation, Chicago, Chicago, Chicago, Illinois 12/4/73 Illinois Schroder International Holdings Schroder Trust Company, U129113 38 F.R. 33538 Limited and Schroder Inter- New York, New York 12/5/73 national Holdings Limited, both of London, England Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 FEDERAL RESERVE BULLETIN • DECEMBER 1973 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Alabama Bancorporation, Fort Payne Bank, 11/15/73 38 F.R. 32841 Birmingham, Alabama Fort Payne, Alabama 11/28/73 Alpha Agency, Inc., The Citizens Bank, 11/1/73 38 F.R. 31052 Aztec, New Mexico and Farmington, New Mexico 11/9/73 Pierce Agency, Inc., Aztec, New Mexico Bank of Virginia Company, Bank of Virginia-Petersburg, 11/6/73 38 F.R. 31470 Richmond, Virginia Petersburg, Virginia 11/14/73 Barnett Banks of Florida, Inc., First Bank of Plantation, 11/1/73 38 F.R. 31052 Jacksonville, Florida Plantation, Florida; University 11/9/73 Bank, Broward County, Florida; and Riverland Bank, Fort Lauderdale, Florida Central Bancshares of the South, The First State Bank of Oxford, 11/26/73 38 F.R. 33417 Inc., Birmingham, Alabama Oxford, Alabama 12/4/73 The Chase Manhattan Corporation, The First National Bank of Canton, 11/5/73 38 F.R. 31565 New York, New York Canton, New York 11/15/73 Commonwealth National Corpora- Town Bank and Trust Company, 11/12/73 38 F.R. 32004 tion, Boston, Massachusetts Brookline, Massachusetts 11/20/73 Farmer City Agency, Inc., National Bank of Chenoa, 11/1/73 38 F.R. 31053 Farmer City, Illinois Chenoa, Illinois 11/9/73 First at Orlando Corporation, Peoples Bank of Auburndale, 11/27/73 38 F.R. 33536 Orlando, Florida Auburndale, Florida 12/5/73 First Steuben Bancorp, Inc., The Farmers National Bank of 11/15/73 38 F.R. 32847 Steubenville, Ohio Salem, Salem, Ohio 11/28/73 First Tennessee National Corpora- Mosheim Bank, Mosheim, Tennes- 11/29/73 38 F.R. 34027 tion, Memphis, Tennessee see; Sumner County Bank and 12/10/73 Trust Company, Gallatin, Tennessee; and National Bank of Murfreesboro, Murfreesboro, Tenn. Heritage B ancorporation, First Charter National Bank, Monroe 11/12/73 38 F.R. 32003 Cherry Hill, New Jersey Township, New Jersey 11/20/73 Indian Head Banks, Inc., Keene National Bank, Keene, New 11/12/73 38 F.R. 32008 Nashua, New Hampshire Hampshire 11/20/73 Mercantile Bankshares Corpora- The Commerce Bank and Trust Com- 11/6/73 38 F.R. 31471 tion, Baltimore, Maryland pany of Maryland, Bethesda, 11/14/73 Maryland NBS Financial Corporation, National Bank of Royal Oak, 11/19/73 38 F.R. 32975 Southfield, Michigan Royal Oak, Michigan 11/29/73 Southeast Banking Corporation, Peoples National Bank, 11/12/73 38 F.R. 32177 Miami, Florida Naples, Florida 11/21/73 Southeast Banking Corporation, Southeast Bank of Westland, 11/15/73 38 F.R. 32851 Miami, Florida Hileah, Florida 11/28/73 United First Florida Banks, Inc. Boynton Beach First National Bank 11/6/73 38 F.R. 31471 Tampa, Florida and Trust, Boynton Beach, Florida 11/14/73 United First Florida Banks, Inc. Marine Bank of Kissimmee, Kissim- 11/19/73 38 F.R. 31471 Tampa, Florida mee, Florida 11/14/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 919 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Non banking Company (effective Register Applicant (or activity) date) citation Continental Illinois Corporation, Republic Realty Mortgage Corpora- 11/16/73 38 F.R. 32844 Chicago, Illinois tion, Chicago, Illinois 11/28/73 County National Bancorporation, General Mortgage Company of St. 11/16/73 38 F.R. 32845 Clayton, Missouri Louis, St. Ann, Missouri 11/28/73 Dawson Corporation, The Farmers State Bank, 11/12/73 38 F.R. 32175 Lexington, Nebraska Lexington, Nebraska 11/21/73 Dominion Bankshares Corporation, Fitton Insurance Agency, Inc., 11/12/73 38 F.R. 32005 Roanoke, Virginia Alexandria, Virginia 11/20/73 Fidelity American Bankshares, Columbia Life Insurance Company, 11/15/73 38 F.R. 32846 Inc., Lynchburg, Virginia Phoenix, Arizona 11/28/73 First National City Corporation, Capital Financial Services, Inc. #21, 11/8/73 38 F.R. 31711 New York, New York Portland, Oregon 11/16/73 Forest Lake Finance Company, Forest Lake State Bank, 11/16/73 38 F.R. 32848 Forest Lake, Minnesota Forest Lake, Minnesota 11/28/73 FrostBank Corporation, Data Processing Center, 11/12/73 38 F.R. 32007 San Antonio, Texas San Antonio, Texas 11/20/73 Irwin Union Corporation, Irwin Union Credit Insurance Com- 11/12/73 38 F.R. 32009 Columbus, Indiana pany, Phoenix, Arizona 11/20/73 Liberty National Corporation, Liberty Financial Corporation and 11/2/73 38 F.R. 31054 Oklahoma City, Oklahoma Liberty Mortgage Company, both 11/9/73 in Oklahoma City, Oklahoma Marine Midland Banks, Inc., American Dimensions, Inc., 11/27/73 38 F.R. 33537 Buffalo, New York Irvine, California 12/5/73 Zions Utah Bancorporation, Central Finance Corporation, 11/29/73 38 F.R. 33539 Salt Lake City, Utah Portland, Oregon 12/5/73 ORDERS UNDER BANK MERGER ACT- APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation The Interim Bank of Oxford, First State Bank of Oxford, 11/26/73 38 F.R. 33420 Oxford, Alabama Oxford, Alabama 12/4/73 The Peoples Bank at Selma Mall, The Peoples Bank and Trust Com- 11/27/73 38 F.R. 33538 National Association, Selma, pany, Selma, Alabama 12/5/73 Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 FEDERAL RESERVE BULLETIN • DECEMBER 1973 ORDERS ISSUED BY FEDERAL RESERVE BANKS During November 1973, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank(s) Reserve Bank date citation Chemical New York Corpo- First National Bank of New York 10/30/73 38 F.R. 31472 ration, New York, Greenwich, Greenwich, 11/14/73 New York New York Central National Corpora- The First National Bank of Richmond 11/15/73 38 F.R. 32842 tion, Richmond, Virginia Yorktown, Yorktown, 11/28/73 Virginia Fidelity American Bank- Planters Bank and Trust Richmond 11/8/73 38 F.R. 32006 shares, Inc., Lynchburg, Company, Chatham, 11/20/73 Virginia Virginia United Virginia Bankshares Peoples Bank of Gretna, Richmond 11/15/73 38 F.R. 32852 Inc., Richmond, Virginia Gretna, Virginia 11/28/73 Central National Bancshares, Adair County State Bank, Chicago 11/1/73 38 F.R. 31351 Inc., Des Moines, Iowa Greenfield, Iowa 11/13/73 First National Financial The Moline State Bank, Chicago 11/6/73 38 F.R. 32007 Corp., Kalamazoo, Michi- Moline, Michigan 11/20/73 gan Twin Gates Corporation, First National Bank of Lake Chicago 11/13/73 38 F.R. 32850 Wilmington, Delaware City, Lake City, Michi- 11/28/73 gan First Security National First National Bank in Dallas 11/23/73 38 F.R. 33418 Corp., Beaumont, Texas Grand Prairie, Texas 12/4/73 First Security National Texas National Bank in Dallas 11/23/73 38 F.R. 33418 Corp., Beaumont, Texas Dallas, Dallas, Texas 12/4/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements MARGINAL RESERVES ON LARGE CD's the request of the Board. The special marginal reserve held by these institutions will now be The Board of Governors of the Federal Reserve reduced from 6 per cent to 3 per cent. The Board System on December 7, 1973, announced a re- expressed its appreciation to the nonmember instiduction from 11 per cent to 8 per cent in its tutions for their continued cooperation. marginal reserve requirement on large-denomination certificates of deposit (CD's). This ac- AMENDMENT TO REGULATION Q tion—which will reduce the costs to banks of accommodating the credit needs of their custom- The Board of Governors on December 7, 1973, ers—was taken in recognition of the moderation issued an amendment to its Regulation Q— in bank credit growth achieved over recent governing payment of interest on deposits—under months. which customers of member banks in Massachu- The reduction took effect on deposits in the setts and New Hampshire may write negotiable week beginning Thursday, December 13, and re- orders of withdrawal (NOW's) against interestduced required reserves 2 weeks later, when there bearing savings accounts. was a seasonal need to provide reserves to the The amendment, effective January 1, 1974, was banking system. The net effect of the Board's adopted pursuant to new legislation permitting all action was to reduce by about $375 million the depository institutions in the two States to allow reserves required to support member bank depos- customers to write NOW's—which function as its. checks—on savings accounts. The customary type A marginal reserve requirement (the regular 5 of check may be written only against non-interestper cent plus a supplemental 3 per cent) was first paying demand deposits. announced by the Board on May 16 as part of The new rules for the use of NOW's by savings a series of actions designed to curb a rapid expan- depositors in Federal Reserve member banks in sion in bank credit and help moderate inflationary Massachusetts and New Hampshire are: pressures. An additional 3 per cent marginal re- —Maximum interest payable on NOW accounts serve was announced by the Board on September is 5 per cent. 7, thus raising the total reserve requirement on —NOW accounts may be owned only by natural affected deposits to 11 per cent. persons (or fiduciary accounts for individuals) and In recent months, the rate of growth in bank nonprofit associations eligible to maintain savings credit has moderated, and the outstanding amount accounts. of large-denomination CD's has dropped substan- —To avoid unfair competition for deposits with tially. Business loan expansion at banks has been institutions in neighboring States, advertising and at a much slower pace than earlier this year, and solicitation of NOW account deposits should be extensions of other forms of bank credit have also directed toward residents of Massachusetts and slowed. New Hampshire. In this connection, member The marginal reserve requirement applies to banks are requested to offer NOW accounts only to permanent or temporary residents of Massachuincreases (beyond the amount outstanding in the setts and New Hampshire, persons who work in week ended May 16) in the total of (1) time those States, and current customers. deposits in denominations of $100,000 and over and (2) bank-related commercial paper and finance —The number of negotiable orders of withbills with a maturity of 30 days or more. In no drawal that may be processed against an individual case does the supplemental reserve apply to banks NOW account may not exceed 150 per year. whose obligations of these types total less than The Board's rules governing the use of NOW's $10 million. in the two States were formulated following care- The Board said the action also affects certain ful consideration of the history of the legislation nonmember State banks and U.S. agencies and and of all comments received on a tentative statebranches of foreign banks that have been volun- ment of proposed policies issued by the Board on tarily holding marginal reserves on large CD's at September 14. The Board also consulted with the 921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 FEDERAL RESERVE BULLETIN • DECEMBER 1973 other Federal regulatory agencies through the Board is requesting member banks in Massachu- Inter-Agency Coordinating Committee. The Fed- setts and New Hampshire to limit the ownership of NOW accounts to permanent or temporary resieral Deposit Insurance Corporation and the Federal dents of those states, to persons who work in the Home Loan Bank Board are also issuing regula- two states and to current customers. Similarly, the tions covering institutions under their jurisdiction Board has limited direct solicitation of NOW acin Massachusetts and New Hampshire. count deposits by member banks to the two states concerned. The new rules do not require the imposition of The legislative history also implies that eligible service charges by member banks on NOW trans- holders should be limited to natural persons. Savactions. But the Board suggested that each indi- ings accounts at commercial banks are limited to vidual bank charge a fee for transactions if its individuals, to fiduciary accounts for the benefit earnings from NOW accounts do not fully cover of individuals, and to certain non-profit associations. The Board has concluded that confining the the cost of establishing and servicing such acuse of NOW accounts at member banks to those counts. who have savings accounts at those banks carries NOW drafts will continue to be cleared, for all out the intent of Congress. The Board does not depository institutions, by the Federal Reserve believe that Congress intended for corporations and state and local governments to have access to NOW Bank of Boston through member banks. accounts, and it sees no present reason for permit- In cooperation with the other regulatory agen- ting such access. cies, the Board—through the Federal Reserve The Board believes that all depository institu- Bank of Boston—is establishing a system for tions offering this service should be permitted to monitoring, on a monthly basis, the use and activ- pay the same rates of interest on the deposits supporting NOW accounts. ity in NOW accounts. The purpose is to generate In its publication of September 14 soliciting timely information on public use and acceptance comment on tentative proposals for the use of of such accounts and to uncover any institutional NOW accounts, the Board implied concern over weaknesses that may arise from excessive promo- the possibility that NOW accounts might be offered as a loss leader for attracting deposits. In the tional schemes and activities. interest of maintaining sound banking, institutions The Board has written the chairmen and ranking in these two states should avoid predatory compeminority members of the committees and subcom- tition implicit in loss leader promotion. mittees that considered the recent NOW account The Board suggests that fees should be charged legislation, to inform them of the reasons underly- where the costs of maintaining and servicing NOW accounts, including the interest paid to the holder ing the Board's action. Following are excerpts of the account, are not fully covered by the bank's from those letters: earnings on the deposits supporting the account. The Board has predicated its actions on the belief One reason for this concern is the fact that savings that the basic purpose of the NOW account experi- accounts at all the depository institutions in Masment is to make money transfers a feature of sachusetts and New Hampshire are small on the savings accounts owned by individuals. The pri- average—less than $250—and that the large mamary, but not exclusive, beneficiaries of this policy jority of all savings accounts in the two states is would be those who do not have checking accounts under $1,000. Thus, a bank's opportunities for but keep their funds in a savings account in a earnings on such accounts are limited. When one commercial bank, a mutual savings bank, a savings keeps in mind the interest paid to holders of such and loan association or other thrift institution. The accounts, the costs of setting up accounts and the Board does not believe that NOW accounts should servicing of transactions, it is clear that unless fees be made so available and attractive as to result in are charged for NOW transfers many, if not most, the wholesale conversion of demand deposits into such accounts would be operated at a loss to the such accounts. institution offering them. This would tend to un- In formulating its rules, the Board has given dermine the viability of the experiment by underclose attention to comment it received on its tenta- mining the earning capacity and ultimately the tive proposals published September 14, just before soundness of institutions caught in a competitive the new legislation went into effect. The Board has bind. The Board is reluctant to deal with this considered the views of the other Federal regula- possibility by fixing the money equivalent of the tory agencies concerned, and of the banking offi- costs of handling a funds transfer in a NOW cials in the two states in which Congress authorized account, since this will vary from institution to the experiment in making check-like withdrawals institution or customer to customer, or even from from interest-bearing deposits. transaction to transaction. The best solution, there- The Board has also sought to be guided by the fore, appears to be for an individual bank to charge fees in the light of its own knowledge of the legislative history of PL 93-100 permitting NOW relation of its costs to its earnings on NOW actransfers from savings accounts. This legislative counts. history indicates that the NOW account experiment was meant by Congress to be confined to Massa- The NOW account may become the vehicle for chusetts and New Hampshire. Consequently, the wholesale conversion of checking accounts to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 923 NOW accounts unless some limitation is imposed tem, Washington, D.C. 20551. The price is $3.50 upon the use of NOW transfers. The Board has per copy; in quantities of 10 or more sent to one therefore set a twelve-month limit of 150 such address, $3.00 each. transfers per account. The NOW account should be of particular benefit to that segment of the public that does not maintain checking accounts, and, ADMISSION OF STATE BANKS TO MEMBERSHIP IN therefore, does not make large numbers of pay- THE FEDERAL RESERVE SYSTEM ments in some form other than currency. The limit of 150 transfers per year, consequently, seems The following banks were admitted to membership appropriate at the outset to serve that segment of in the Federal Reserve System during the period the public that the Board expects will derive the primary benefit from the NOW account. November 16, 1973, through December 15, 1973: North Carolina NEW PUBLICATION Winston-Salem United Citizens Bank Lending Functions of the Federal Reserve Banks: Virginia A History by Howard H. Hackley, formerly Gen- Isle of Wight County .. Bank of Isle of Wight eral Counsel of the Board, is available for distribution. BANKS IN HOLDING COMPANY GROUPS: This study traces the legal history of the lending ADDITIONAL DATA functions of the Federal Reserve Banks: the nature of the original statutory authority of the Federal Statistics for banking offices, assets, and deposits Reserve Banks to make loans; the reasons for of banks in holding company groups appeared in which that authority was given to the Reserve the June 1973 BULLETIN. The table below gives Banks by the Congress; how and why the authority a further breakdown of totals into multibank and has been changed, expanded, or modified by sub- one-bank classifications. sequent statutes; the nature of regulations on this Multibank and one-bank classifications are subject that have been issued by the Board of based on the number of banks controlled, directly Governors of the Federal Reserve System; how or indirectly, by the top-tiered holding company. the Board has interpreted the law; and how the Holding companies that are subsidiaries of other law has been construed and applied by the courts. holding companies are eliminated; therefore, the Copies may be obtained from Publications total number of multibank and one-bank compa- Services, Division of Administrative Services, nies is lower than the total number of bank holding Board of Governors of the Federal Reserve Sys- companies shown in the June BULLETIN. CCllaassssiiffiiccaattiioonn Number of Number of offices Assets Deposits companies Banks Branches Total Millions of dollars Total 1,607 2,720 13,441 16,161 467,487 379,355 Member 1,354 11,206 12,560 417,921 335,869 Nonmember . 1,366 2,235 3,601 49,566 43,486 Multibank 210 1,457 6,147 7,604 238,185 193,695 Member 867 5,217 6,084 216,039 174,359 Nonmember . 590 930 1,520 22,146 19,336 One-bank 1,257 1,263 7,294 8,557 229,302 185,660 Member 487 5,989 6,476 201,882 161,510 Nonmember . 776 1,305 2,081 27,420 24,150 All commercial banks 13,927 24,398 38,325 739,591 616,592 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication December 14 Industrial production increased by 0.2 per cent in November, the same rate of increase that occurred in September and October based on revised figures. The total index in November at 127.2 per industrial production cent of the 1967 average was 5.8 per cent above SEASONALLY ADJUSTED, RATIO SCALE, 1967=100 a year earlier. Figures for both September and October were revised downward with the revisions centered in business equipment and industrial materials. This lowered the total index by 0.2 per cent for September and 0.6 per cent for October. Auto assemblies in November were at an annual rate of 9.6 million units, up from the 9.4 million rate in October. Output of most household appliances and TV sets was maintained at advanced levels in November, but production of furniture CONSUMER GOODS: declined. Output of nondurable consumer goods changed little. Production of durable consumer goods and of business equipment rose in November. These increases were partially offset by a decline in output of industrial materials. Production of steel was unchanged, but output of most durable and nondurable goods materials including the textile, paper, and chemical grouping was down. Capacity limitations and shortages of component parts were factors in the recent slower 1967 1969 1971 1973 1967 1969 1971 1973 growth in the total index. F.R. indexes, seasonally adjusted. Latest figures: November. Seasonally adjusted Percentage 1967 = 100 change from— Per cent changes, annual rate IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1973 1973 MMoonntthh YYeeaarr Sept. Oct.p Nov.e aaggoo aaggoo Qi QII qiii Total 126.8 127.0 127.2 .2 5.8 9.7 5.5 6.1 Products, total 124.3 124.5 125.0 .4 5.4 10.1 5.3 3.9 Final products 122.6 122.8 123.1 .2 5.8 10.7 5.0 4.3 Consumer goods 132.4 132.9 133.2 .2 4.6 9.1 3.7 1.8 Durable goods 138.2 139.1 140.3 .9 7.1 19.4 9.3 -8.8 Nondurable goods 130.1 130.7 130.6 -.1 3.7 5.1 1.3 6.6 Business equipment 126.5 125.8 126.6 .6 11.6 17.0 10.9 11.9 Intermediate products 131.0 130.9 132.0 .8 3.4 7.6 4.6 4.0 Construction products 134.9 135.0 135.0 3.8 6.6 9.8 6.9 Materials 131.3 131.2 130.7 -.4 6.4 9.4 7.0 8.4 p Preliminary. e Estimated. 924 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

94 FEDERAL RESERVE BULLETIN • DECEMBER 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 SPECIAL TABLE: A 96 Sales, revenue, profits, and dividends of large manufacturing corporations A 107 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 rp Revised preliminary L Liabilities 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 Quarterly Issue Page Annually—Continued Issue Page Sales, revenue, profits, and divi- Banks and branches, number, dends of large manufacturing by class and State Apr. 1973 A-96—A-97 corporations Dec. 1973 A-96 Flow of funds: Semiannually Assets and liabilities: Banking offices: 1961-72 Sept. 1973 A-71.14—A-71.28 Analysis of changes in number Aug. 1973 A-96 On, and not on, Federal Reserve Flows: Par List, number Aug. 1973 A-97 1961-72 Sept. 1973 A-70—A-71.13 Annually Income and expenses: Bank holding companies: Federal Reserve Banks Feb. 1973 A-98—A-99 List, Dec. 31, 1971 June 1972 A-98 Insured commercial banks May 1973 A-96—A-97 Banking offices and deposits of Member banks: group banks, Dec. 31, 1972 June 1973 A-102—A-104 Calendar year May 1973 A-96—A-105 Income ratios May 1973 A-106—A-lll Banking and monetary statistics: Operating ratios June 1973 A-96—A-101 1972 Mar. 1973 A-100—A-114 July 1973 A-96—A-99 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 Dec. 1973 A-104 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS • DECEMBER 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 curu H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g f h ic t a s te re o n u c t- y Bought repur- assets 3 account stand- Total out- chase ing right agreement Averages of daily figures 1939—Dec 2,510 2,510 83 2,612 17,518 2,956 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—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—No v 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 Mar 74,019 73,624 395 1,858 2,387 839 79,219 10,410 400 8,406 Apr 75,353 74,914 439 1,721 2,319 1,043 80,542 10,410 400 8,444 May 76,758 76,205 553 1,786 2,247 960 81,889 10,410 400 8,478 June 75,355 75,047 308 1,789 2,369 942 80,546 10,410 400 8,518 July 77,448 76,875 573 2,051 3,113 1,180 83,880 10,410 400 8,538 Aug 76,653 76,475 178 2,143 2,566 1,018 82,445 10,410 400 8,549 Sept 76,073 75.712 361 1,861 2,924 889 81,809 10,410 400 8,584 Oct 78,042 77,500 542 1,467 2,933 1,122 83,643 10,933 400 8,613 Nov.* 78,457 77,937 520 1,399 2,633 1,078 83,625 11,567 400 8,642 Week ending— 1973—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 1,704 3,815 901 81,542 10,410 400 8,586 26 76,499 76,287 212 2,189 2,572 942 82,263 10,410 400 8,592 Oct. 3 77,917 76,503 1,414 1,519 2,551 990 83,110 10,410 400 8.598 10 77,376 76,360 1,016 1,351 3,096 1,041 82,981 10,410 400 8.599 17 78,053 77,692 361 1.169 3,482 1,109 83,884 10,410 400 8,614 24 78,419 78,267 152 1,912 3,120 1,198 84,705 11,567 400 8,622 31 78,325 78,072 253 1,455 2,251 1,198 83,284 11,567 400 8,627 Nov. 7 78,007 78,007 1.170 2,194 1,281 82,701 11,567 400 8,626 14 77,154 76,867 287 1,521 2,526 1,378 82,633 11,567 400 8,629 21* 79,692 78,365 1,327 1,569 2,826 826 84,990 11,567 400 8,650 28* 78,886 78,404 482 1,288 3,270 871 84,370 11,567 400 8,659 End of month 1973—Sept 77,900 76,469 ,431 1,558 2,513 974 83,090 10,410 400 8,614 Oct 80,378 78,606 ,772 2,198 2,654 1,265 86,602 11,567 400 8,649 Nov.* 79,107 78,203 904 1,914 1,950 916 83,958 11,567 400 8,661 Wednesday 1973—Sept. 5 75,896 9 75,896 1,341 2,498 819 80,595 10,410 400 8,573 12 75,007 9 75,007 1,278 3,952 865 81,140 10,410 400 8,577 19 74,820 9 74,820 2,286 4,471 950 82,563 10,410 400 8,590 26 76,969 9 76,346 623 4,522 3,036 996 85,580 10,410 400 8,595 Oct. 3 78,766 8 76,657 2,109 1,205 3,474 1,028 84,612 10,410 400 8,599 10 73,802 9 73,802 705 4,561 1,117 80,228 10,410 400 8,599 17 78,952 8 77,849 1,103 1,536 3,770 1,170 85,558 10,410 400 8,619 24 79,371 8 78,302 1,069 3,367 3,281 1,215 87,329 11,567 400 8,623 31 80,378 8 78,606 1,772 2,198 2,654 1,265 86,602 11,567 400 8,649 Nov. 7* 77,207 9 77,207 839 2,525 1,315 81,933 11,567 400 8,626 14* 79,417 9 77,406 2,011 3,991 2,470 1,375 87,359 11,567 400 8,630 21* 80,862 8 78,441 2,421 1,387 3,584 859 86,810 11,567 400 8,656 28* 79,466 8 78,507 959 1,486 3,945 923 85,880 11,567 400 8,661 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, on Wed. and end-of-month dates, see tables on F.R. Banks on following 1971. pages. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- BULLETIN, p. 164. owned banking institutions held with member banks and redeposited in 3 Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R. full with Federal Reserve Banks in connection with voluntary 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

DECEMBER 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 CCuurr-- reserves, Other reserves Period or date rreennccyy TTrreeaass-- with F.R. Banks Other F.R. iinn uurryy F.R. liacciirr-- ccaasshh ac- bilities cc tt uu iioo llaa nn -- hh ii oo nn ll gg dd ss -- Tr u e r a y s - F ei o g r n - Other 2,5 counts 3 ca a p n it d a l 3 B W F a . n R it k h . s c r C a o en n u in c d r y - 6 Total 7 Averages of daily figures 7,609 2,402 616 7-19 248 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. 64,543 375 1,321 195 604 2,378 25,631 5,813 7 31,774 .1972—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 27,509 6,402 34,019 Sept. 68,909 622 1,718 266 5 752 2,866 28,457 6,371 34,912 Oct. 69,927 340 1,772 522 5 689 2,854 28,130 6,378 34,592 Nov.3' Week ending— 68,499 343 1,095 271 787 3,069 27,663 6,346 34,121 ..1973—Sept. 5 68,955 340 2 336 758 2,661 26,822 6,591 33,525 12 68,716 343 354 364 859 2,759 27,543 6,205 33,860 19 68,343 355 1,326 373 746 2,875 27,647 6,385 34,144 26 68,366 371 1,771 252 713 2,972 28,073 6,515 34,672 .Oct. 3 68,886 350 1,362 270 682 2,735 28,105 6,606 34,795 10 69,156 354 1,439 276 764 2,802 28,518 6,413 35,015 17 68,970 1,522 1,566 254 5 950 2,904 29,128 5,899 35,111 24 68,787 365 2,422 279 5 655 3,004 28,368 6,496 34,948 31 69,061 364 2,087 332 5 662 2,726 28,062 6,479 34,625 .Nov. 7 69,834 338 1,120 580 5 696 2,738 27,924 6,720 34,728 14 70,181 333 1,946 557 5 722 2,913 28,955 6,015 35,054 21» 70,502 329 1,853 651 5 684 2,986 27,990 6,292 34,366 28 p End of month 68,217 361 1,624 250 5 798 3,021 28,240 6,515 34,839 .Sept. 69,043 342 1,837 426 5 719 3,065 31,787 6,496 38,367 .Oct. 70,258 334 1,945 420 5 672 3,025 27,933 6,403 34,420 . NOV.P Wednesday 68,965 346 1,102 284 5 741 3,011 25,529 6,346 31,987 .1973—Sept. 5 69,071 347 2 277 5 776 2,687 27,367 6,591 34,070 12 68,658 358 1,105 411 5 1,010 2,786 27,635 6,205 33,952 19 68,453 372 1,125 459 5 670 2,945 30,962 6,385 37,459 26 68,703 367 1,594 239 5 612 3,101 29,405 6,515 36,004 .Oct. 3 69,331 355 2,638 265 5 654 2,742 23,652 6,606 30,342 10 69,188 381 1,124 286 5 743 2,846 30,419 6,413 36,916 17 69,077 1,537 1,252 272 5 673 2,986 32,122 5,899 38,105 24 69,043 342 1,837 426 5 719 3,065 31,787 6,496 38,367 31 69,626 353 1,557 413 5 654 2,679 27,244 6,479 33,807 .Nov. 7» 70,156 343 1,530 552 5 697 2,808 31,870 6,720 38,674 14* 70,522 333 1,404 759 5 662 2,988 30,765 6,015 36,864 21* 70,655 333 2,001 516 5 645 3,029 29,328 6,292 35,704 28* 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed included are (beginning with first statement week of quarter): Ql, $279 thereafter. Beginning with Jan. 1963, figures are estimated except for million; Q2, $172 million; Q3, $112 million; 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 • DECEMBER 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- EExxcceessss 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 8 5 232 50 '663 29 1960—Dec 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—No v 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 2 108 -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 -6 102 7 857 -47 723 Apr 32,277 32,125 152 1,721 5 38 146 8 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 34,019 33,782 237 1,861 147 -7 115 24 62 31 712 81 972 Oct 34,912 34,712 200 1,467 126 11 74 1 54 -11 589 115 750 Nov.?... -34,592 34,530 62 1,399 84 11 180 -40 29 -86 605 93 585 Week ending— 1972—Nov. 1. 33,704 33,499 205 555 38 2 -15 7 19 261 163 285 8. 33,694 33,570 124 959 -32 192 20 31 -40 447 176 289 15. 32,132 31,346 786 494 196 — 11 11 91 192 60 291 22. 30,539 30,350 189 419 -18 1 26 15 -87 136 -182 267 29. 30,728 30,388 340 572 26 80 -30 23 -6 226 -100 243 1973—Apr. 4. 32,619 32,082 537 1,754 169 144 18 8 99 865 79 737 11. 31,759 31,845 -86 1,502 -184 24 -14 13 -90 775 30 690 18. 32,624 32,390 234 1,845 146 306 2 2 -104 841 18 696 25. 32,398 32,062 336 1,646 9 80 45 20 18 11 795 53 788 May 2. 32,504 32,271 233 1,875 16 56 222 19 6 -63 868 49 779 9. 32,246 32,327 -81 1,484 18 -75 182 -50 33 -137 580 9 689 16. 32,963 32,600 363 1,814 23 49 123 42 9 6 993 94 689 23. 32,302 32,178 124 1,689 32 33 30 -27 -49 815 -5 844 30. 32,226 32,060 166 2,401 46 7 144 27 11 -89 1,283 49 963 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 88 -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. 33,860 33,724 136 1,704 139 -4 91 3 15 -40 758 65 840 26. 34,144 34,070 74 2,189 150 -21 217 27 127 -80 855 36 990 Oct. 3. 34,672 34,220 452 1,519 144 88 43 7 41 130 463 143 972 10. 34,795 34,395 400 1,351 131 128 43 1 9 10 535 177 764 17. 35,015 35,106 -91 1,169 120 -158 26 -9 58 -81 520 73 565 24. 35,111 34,741 370 1,912 125 131 185 7 66 40 901 108 760 31. 34,948 34,817 131 1,455 119 -69 72 30 81 1 473 85 829 Nov. 7. 34,625 34,360 265 1,170 93 102 192 -54 12 -8 383 141 583 14. 34,728 34,707 21 1,521 80 -109 262 -23 61 -29 763 98 435 21* 35,054 34,718 336 1,569 85 102 223 8 16 46 625 96 705 28P 34,366 34,349 17 1,288 84 -64 94 -54 29 -33 543 84 622 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

DECEMBER 1973 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions U R .S e . l G at o ed v t, t r s a ec n u s r a i c t t i i e o s n d s e w al i e t r h s Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r v c e e e - s s s 1 r a B o t B w a F o n i r n . k R - g s s . F t f i b e r n u N d a a t n e n e e n d t r r k s s - a . l S d u e r o f p r ic lu it s r P r e e e q a s r u o e v c r f i g r e v . e n e d s t c P ha u s r e - s Sales t a w c t T r o t o a i - o t n w n a s l s a - y 2 b c o b P h u f a a y u n n i s r k n e e - s t g s s b o 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 r s s 3 de f r B i a r n o o o l w g e m r s r - - s4 lo N a e n t s Total—46 banks Oct. 3 223 109 7,868 -7,754 51.3 15,915 8,047 5,475 10,440 2,572 1,871 938 933 10 181 164 10,136 -10,118 65.7 16,541 6,405 4,859 11,682 1,546 2,262 693 1,570 17 -26 194 11,063 -11,283 71.0 17,698 6,635 4,626 13,072 2,009 1,739 886 853 24 50 475 9,358 -9,783 62.9 16,728 7,370 4,909 11,819 2,461 1,643 811 832 31 71 233 9,202 -9,364 60.3 15,985 6,783 4,403 11,582 2,380 2,048 706 1,342 Nov. 7 54 256 11,833 -12,034 78.7 18,939 7,106 4,871 14,068 2,235 2,463 683 1,780 14 -53 627 12,949 -13,628 87.3 19,861 6,912 5,020 14,842 1,893 2,560 774 1,786 21 167 487 12,584 -12,904 84.0 19,131 6,547 5,108 14,022 1,439 1,911 1,004 908 28 270 11,773 -11,955 79.8 18,265 6,492 5,304 12,962 1,189 1,890 765 1,125 8 in New York City Oct. 3 78 43 3,177 -3,142 51.8 4,533 1,357 1,344 3,190 13 1,162 337 825 10 169 43 3,651 -3,526 57.2 4,391 739 739 3,651 1,071 311 760 17 -31 14 4,569 -4,614 72.3 5,367 799 799 4,569 1,140 354 785 24 12 160 3,758 -3,906 63.4 4,989 1,231 1,231 3,758 1,084 399 684 31 -1 69 3,521 -3,591 58.3 4,211 690 690 3,521 1,295 376 919 Nov. 7 74 170 5,072 -5,168 85.7 5,679 607 607 5,072 1,656 383 1,272 14 -27 247 4,781 -5,056 81.1 5,707 926 926 4,781 1,664 421 1,243 21 87 189 4,044 -4,147 67.9 5,093 1,048 1,048 4,044 1,354 421 933 28 12 76 3,692 -3,756 63.3 4,787 1,095 1,095 3,692 1,273 395 878 38 outside New York City Oct. 3 146 66 4,691 -4,612 50.9 11,382 6,690 4,131 7,250 2,559 709 601 108 10 13 121 6,485 -6,593 71.4 12,150 5,666 4,120 8,031 1,546 ,191 381 809 17 5 180 6,494 -6,669 70.2 12,331 5,836 3,827 8,503 2,009 600 532 68 24 38 315 5,599 -5,877 62.6 11,739 6,139 3,678 8,060 2,461 559 411 148 31 73 165 5,681 -5,773 61.7 11,774 6,094 3,713 8,061 2,380 753 330 423 Nov. 7 -20 86 6,761 -6,867 74,1 13,260 6,499 4,264 8,996 2,235 807 300 507 14 -25 379 8,168 -8,572 91.5 14,154 5,886 4,093 10,061 1,893 896 353 543 21 80 298 8,539 -8,757 94.6 14,038 5,499 4,060 9,978 1,439 557 583 -26 28 76 195 8,081 -8,199 90.6 13,478 5,397 4,208 9,270 1,189 618 370 248 5 in City of Chicago Oct. 3 12 21 2,789 -2,798 173.3 3,580 791 710 2,871 81 404 404 10 4 3,359 -3,355 202.6 4,053 694 673 3,380 21 394 313 17 -13 3,415 -3,456 198.6 4,080 665 637 3,443 28 409 314 24 -6 2,646 -2,706 161.5 3,561 915 810 2,751 105 430 335 31 33 2,844 -2,868 173.4 3,586 741 684 2,902 57 448 333 Nov. 7 -25 3,518 -3,543 216.2 4,254 736 652 3,602 84 509 414 14 -1 51 3,983 -4,035 247.4 4,504 521 466 4,038 55 600 505 21 -2 4,142 -4,144 263.6 4,943 801 717 4,225 84 316 261 28 11 3,448 -3,437 226.2 4,371 924 847 3,525 77 330 330 33 others Oct. 3 133 45 1,902 -1,813 24.4 7,801 5,899 3,421 4,380 2,478 305 601 -296 10 9 121 3,126 -3,238 42.8 8,097 4,972 3,447 4,651 1,525 797 300 497 17 17 151 3,080 -3,214 41.4 8,251 5,171 3,190 5,061 1,981 191 437 -246 24 44 262 2,953 -3,171 41.2 8,178 5,225 2,869 5,309 2,356 130 316 -187 31 39 107 2,836 -2,905 37.7 8,189 5,353 3,029 5,160 2,323 305 235 70 Nov. 7 5 86 3,243 -3,324 43.6 9,006 5,763 3,612 5,394 2,152 298 205 93 14 -24 328 4,185 -4,537 58.6 9,650 5,466 3,628 6,023 1,838 297 258 39 21 82 298 4,398 -4,614 60.0 9,095 4,698 3,343 5,753 1,355 241 528 -287 28 65 195 4,633 -4,763 63.3 9,107 4,474 3,362 5,745 1,112 287 370 -82 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 • DECEMBER 1973 CURRENT RATES (Per cent per annum) Loans to member banks— LLooaannss ttoo aallll ootthheerrss uunnddeerr Under Sees. 13 and 13a 1 Under Sec. 10(b) 2 llaasstt ppaarr.. SSeecc.. 1133 33 FFFeeedddeeerrraaalll RRReeessseeerrrvvveee BBBaaannnkkk N R o a 1 v t 9 e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pr r e a v t i e o us N R o a 1 v t 9 e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pr r e a v t i e o us N R o a 1 v t 9 e . 7 3 3 o 0 n , Ef d fe a c t t e i ve Pre r v a i t o e us N Bo ew st o Y n ork m m A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 7 7 8 8 A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 m llA 4 9 9 i V /2 t A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 9 9 Philadelphia m Aug. 14, 1973 7 8 Aug. 14, 1973 m 9Vi Aug. 14, 1973 9 Cleveland m Aug. 14, 1973 7 8 Aug. 14, 1973 llA 91/2 Aug. 14, 1973 9 Richmond m Aug. 14, 1973 7 8 Aug. 14, 1973 7 % 49Vi Aug. 14, 1973 9 Atlanta m Aug. 16, 1973 7 8 Aug. 16, 1973 m 49i/2 Aug. 16, 1973 9 C S K M t h a . i i n n L c n s a o a e g u s a o i p s C o i l t i y s m m m 71 / 2 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 7 7 7 7 8 8 8 8 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 m m 4 4 4 4 9 9 9 9 i i V i / / / 2 2 2 i 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 9 9 9 9 D Sa a n ll a F s r ancisco m m A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 7 7 8 8 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 7 7 1 1 / / 2 2 49 9 i % /2 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 9 9 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers' acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of percent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See "Announcements" on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 BULLETIN and p. 994 of the Nov. 1972 BULLETIN. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 I1/2 I1/2 1959—Mar. 6. 2V2-3 3 1970—Nov. 11 534-6 6 16. 3 3 13 5%-6 534 1955—Apr. 14 1!h May 29. 3 -3 % 3V4 16 534 534 15 H/2-13,4 1V4 June 12. 31/2 3i/i Dec. 1 51/2-534 534 May 2 IV4 1% Sept. 11. 3Vz-4 4 4 51/2-534 51/2 1956— S A N A e p u o p r v g t . . . . 2 1 2 2 1 1 1 4 9 8 3 5 2 3 3 0 2 2 2 2 2 2 1 1 i 3 3 3 3 ^ / 2 2 4 4 4 4 4 - 1 % - - - - - - 3 - / 3 3 2 2 2 2 2 2 1 i 1 % 1 / 4 4 4 2 2 3 2 2 2 2 2 2 2 l3 1 3 1 1 3 V / / / / / 4 4 4 4 4 1 1 1 1 1 9 9 9 6 6 6 3 0 4 — — — J J S A N u u e u o l p n y g v e t . . . 2 2 1 1 1 1 1 6 9 4 2 0 4 8 3 7 . . . . . . . . . 3 3 3 3 V 1 3 / 4 V 3 3 3 4 2 % % - - - 4 - 3 4 3 4 - % i 4 / 2 4 4 4 3 3 3 3 3 3 1 1 1 % / / / 2 2 2 1971—J J F a u e n l b y . . 2 2 2 1 1 1 I 1 1 t 9 2 3 5 6 3 9 8 9 5 5 5 1 5 4 5 5 4 4 4 5 1 1 - 3 - 3 3 - / / 5 5 4 5 4 4 2 4 1 1 1 - - / 4 5 5 4 4 5 5 5 5 5 5 5 5 5 4 1 1 1 1 3 / / 4 4 4 4 2 31 3 3 30. 4 4 Nov. 11 434-5 5 1957—A N u o g v . . 2 1 3 9 5 3 3 3% - - 3 3 1 i / / 1 l 3 3 3 V 4 1 1 9 9 6 6 7 5 — — A D p ec r . . 1 6 7 3 . . . 4 4 4% - - 4 4 1 1 / / 2 2 4 4 4 % VI Dec. 2 1 1 1 4 3 7 9 4 4 4 1 V 3 / 4 4 1 2 1 - - / 4 4 2 3 3 4 4 4 4 4 4 1 3 3 V / 4 4 t 1 1958—J D a e n c . . 2 2 2 2V 3 4 -3 3 3 Nov. 2 2 1 0 7 4 . . . 4 4 4 % 4 4 4 1 1 / / 2 2 1973—J M F a e a n b r . . . 2 1 6 2 5 5 5 51 - / 5 2 i /i 5 5 5 1 1 / / 1 2 M A S A M O e p u c a a p r t g r y t . . . . . 2 2 2 1 2 1 1 1 4 1 7 9 3 8 4 5 2 3 2 2 2 2 I 1 1 V 1 1 ^ 3 * / 2 2 / 4 4 1 4 4 4 4 1 - % - _ - - - - / 3 2 3 2 2 2 4 2 1 3 V / 4 2 4 2 2 2 2 2 2 l 2 1 1 3 1 * 1 3 1 3 / / / 4 4 4 4 4 / 4 4 1 1 9 9 6 6 8 9 — — M A A D A p u e p a c r g r r . . . . . 2 2 2 1 1 3 1 1 2 6 0 8 6 0 9 5 4 . . , . . , . . 4 5 5 5 5 % i 1 i / / / 5 5 5 5 4 4 2 1 1 % - - - - - 5 5 / / 5 5 6 4 2 1 i i / / / 2 2 2 4 5 5 5 5 5 5 5 6 1 V 1 1 1 V % / / / / 2 4 2 4 2 i J J A A M u u p u a n l r y g y e . . 2 1 1 2 1 1 1 3 4 2 1 4 3 1 8 5 5 6 7 5 1 3 / 6 m 7 6 5 4 1 1 3 - - - - / / 7 6 6 5 2 4 1 1 3 / / 4 1 1 6 7 6 6 7 7 6 5 5 1 1 * i 3 i / / / / 4 4 l 2 l 1 Nov. 7 21/1 21/1 6 6 In effect Nov. 30, 1973 m 7% 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

DECEMBER 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 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav- 0-2 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 6-9 In effect 1972—Nov. 9.. 10 12 7 161/2 171/2 83 Jan. 1, 1963. 16 % 12 Nov. 16. 13 1966—July 14, 21 . 1973—July 19.. 101ft 12% 18 Sept. 8, 15. 131/2 1967—M M a a r r . . 1 2 6 . . . . . . . . 3 3 % 3 3 1 /2 In ef N fe o c v t . 30, 1973 9 IOI/2 121/z 18 1968—Jan. 11, 18. 16Vi 17 12 12% 131/2 1969—Apr. 17.... 17 17i/2 12Vi 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. Fcr details, see Regulations D and M and ments. appropriate supplements and amendments thereto. 7 The 16l/i 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 re- 9 For changes to be effective Dec. 27, 1973, see "Announcements." serve cities, and on the same date requirements for reserves against net NOTE.—All required reserves were held on deposit with F.R. Banks demand deposits of member banks were restructured to provide that each June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member member bank will maintain reserves related to the size of its net demand banks were allowed 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 • DECEMBER 1973 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 19, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type of deposit Type of deposit July 20, Sept. 26, Apr. 19, Jan. 21, July 1, Nov. 1, 1966 1966 1968 1970 1973 1973 Savings deposits 4% Savings deposits Other time deposits—i Other time deposits (multiple- and single- Multiple maturity:2 maturity)— 30-89 days 4 4% Less than $100,000: 90 days-1 year.... 5 30-89 days 5 5 2 1 y y e e a a r r s to a n 2 d y o e v a e r r s . . . . 5 53/4 9 1 0 y d ea a r y s t o t o 2 % 1 y e y a e r a rs. . . 6 5V 4 6 5 V4 Single-maturity: 2 lA years and over 6% 6% Le 3 1 ss 0 y t d e h a a a r y n s t o $ t o 1 2 0 1 0 y , e y 0 a e 0 r a 0 s r — . .. . 5 $100 4 ,0 0 y 0 e a i a r n n s a d t a i n o o d n v e o o r v f e $ r 1 , in 00 m 0 inimum denom- ( ( 4 3 ) ) 7 ( 13/4 ) 2 years and over. .. sy4 $100,000 and over— 30-59 days 5% (3) 60-89 days 5Y4 (3) 9 1 1 0 8 y 0 e 1 a d 7 r a 9 y o d s r a t y m o s o 1 r e y ear. 5% 5V2 } 6 6 y4 0 ( ( 3 3 ) ) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such BULLETIN for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 percent of its total 2 Multiple-maturity time deposits include deposits that are automati- time and savings deposits. Sales in excess of that amount were subject to cally renewable at maturity without action by the depositor and deposits the 6 y2 per cent ceiling that applies to time deposits maturing in 2% years that are payable after written notice of withdrawal. or more. 3 Maximum rates on all single-maturity time deposits in denominations Effective Nov. 1, 1973, a ceiling rate of 11/a per cent was imposed on of $100,000 and over have been suspended. Rates that were effective certificates maturing in 4 years and over with minimum denomination Jan. 21, 1970, and the dates when they were suspended are: of $ 1,000. There is no limitation on the amount of these certificates that banks may issue. 3 60 0 - - 8 5 9 9 d d a a y y s s 6 6 Y i/4 z p p e e r r c c e e n n t t l f June 24, 1970 NOTE.—Maximum rates that may be paid by member banks are estab- 90-179 days 6% per cent] lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 year 7 per cent [ May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more iy2 per cent J r th a e te la p w ay s a o b f l e th b e y S S t t a a t t e e i b n a n w k h s i c o h r t t h r e u s m t e c m om be p r a n b i a e n s k on is l l o ik c e a t d ed ep . os B i e ts g in u n n i d n e g r Rates on multiple-maturity time deposits in demonination of $100,000 Feb. 1, 1936, maximum rates that may be paid by nonmember insured or more were suspended July 16, 1973, when the distinction between commercial banks, as established by the FDIC, have been the same as single- and multiple-maturity deposits was eliminated. those in effect for member banks. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year For previous changes, see earlier issues of the BULLETIN. MARGIN REQUIREMENTS (Per cent of market value) For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937--Nov. 1 1945—Feb. 4 40 50 1945--Feb. 5 July 4 50 50 July 5 1946—Jan. 20 75 75 1946--Jan. 21 1947—Jan. 31 100 100 1947--Feb. 1 1949—Mar. 29 75 75 1949--Mar. 30 1951—Jan. 16 50 50 1951-—Jan. 17 1953—Feb. 19 75 75 1953--Feb. 20 1955—Jan. 3 50 50 1955-—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 1"5 . 70 70 1958--Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 9 70 70 1962--July 10 1963—Nov. 5. 50 50 1963--Nov. 6 1968—Mar. 10. 70 70 1968-—Mar. 11 June 7.. 70 50 70 June 8 1970—May 5.. 80 60 80 1970—May 6 1971—Dec. 3.. 65 50 65 1971--Dec. 6 1972—Nov. 22. 55 50 55 Effective Nov. 24, 1972 65 50 65 NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 (excluding matched sale-purchase transactions) Treasury bills 1 Others within 1 year 2 -5 years 5-10 years Over 10 years Exch., Gross Gross Redemp- Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur- sales tions pur- sales shifts, or pur- sale£ maturity pur- sales maturity pur- sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 8,896 3,642 1,064 1,036 -6,462 ,338 4,672 933 685 311 150 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 535 282 150 42 35 32 393 635 300 360 "-4ii 941 498 -135 1,855 530 1,558 695 200 -1,408 61 3,476 -2,068 1,569 260 200 1,377 51 'i27 717 "623 600 1,316 -1,316 1,047 218 163 123 78 -78 1,640 495 60 27 655 945 456 351 -919 468 ioo 480 401 564 836 -813 -23 2,117 153 Matched Repurchase Federal agency obligations Bankers' Total outright 1 sale-purchase agreements Net acceptances, transactions (U.S. Govt, change net (Treasury bills) securities) in U.S. Outright Repur- Govt, chase securi- agree- Gross Gross Gross ties Gross Sales or ments, Repurpur- Gross Redemp- Gross pur- pur- Gross pur- redemp- net Out- chase chases sales tions sales chases chases sales chases tions right agreements 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 652 282 150 2,143 2,143 3,594 3,594 220 22 7 393 635 351 2,245 2,245 3,547 3,547 -593 166 9 -6 941 498 135 4,142 4,142 4,863 4,765 405 149 14 13 7 1,855 530 1,205 1,205 9,719 8,928 2,116 48 11 1,754 695 200 4,521 4,521 2,774 3,034 599 -28 -3 1,569 260 200 1,941 1,941 6,024 5,478 1,656 61 1,584 51 2,101 2,101 5,664 5,978 1,218 -65 7 717 623 600 1,105 1,105 7,379 8,240 -1,367 -29 -1 1,274 218 163 4,630 4,630 5,621 5,621 893 229 -17 1,666 495 60 3,405 3,405 7,651 6,686 2,076 174 106 -12 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 157 -7 1,316 401 1,400 6,981 6,981 3,309 2,752 72 -95 -9 2,117 153 4,735 4,735 8,220 7,859 2,325 176 -20 8 1 Before Nov. 1973 BULLETIN, included matched sale-purchase trans- 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers' acceptances. 2 Includes special certificates acquired when the Treasury borrows NOTE.—Sales, redemptions, and negative figures reduce System holddirectly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings ; all other figures increase such holdings. 38; Aug. 1973; 351; Sept. 1973, 836. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) 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 rm rk a s n Ita li l r i e a n Jap y a e n n e se N gu l e a i t l n h d d e e s r r s - f S r w an is c s s ,967 1,575 199 60 125 257 154 98 18 3 2 34 * 24 3 122 * 85 35 211 * 164 16 21 200 * 164 20 7 192 * 164 20 6 92 * 67 20 3 • 3 * 3 * 3 • 3 * 3 * 3 5 * 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS • DECEMBER 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1973 1973 1972 Nov. 28 Nov. 21 Nov. 14 Nov. 7 Oct. 31 Nov. 30 Oct. 31 Nov. 30 Assets 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 Special Drawing Rights certificate account 400 400 400 400 400 400 400 400 297 309 308 311 315 305 315 323 Loans: Member bank borrowings 1,486 1,387 3,991 839 2,198 1,914 2,198 501 Other Acceptances: 444333 444111 333999 47 444777 444555 444777 63 111777 777777 666777 666000 222666 666000 Federal agency obligations: 111,,,888111000 111,,,777888999 111,,,777333999 1,739 111,,,777333999 111,,,888111000 111,,,777333999 1,177 777999 333222333 111999999 111444888 111666888 111444888 U.S. Govt, securities: Bought outright: Bills 333555,,,333666222 333555,,,333555111 333444,,,888666555 34,666 333666,,,000666555 333555,,,000555888 333666,,,000666555 29,222 Other 38,186 38,152 37,374 37,374 37,374 38,186 37,374 36,681 3,149 3,149 3,428 3,428 3,428 3,149 3,428 3,598 TToottaall bboouugghhtt oouuttrriigghhtt ii 7766,,669977 ii 7766,,665522 11,,227755,,666677 1,275,468 ii 7766,,886677 ii 7766,,339933 ii 7766,,886677 i 69,501 HHeelldd uunnddeerr rreeppuurrcchhaassee aaggrreeeemmeennttss 888800 22,,009988 11,,881122 11,,662244 773366 11,,662244 TTTTTTTToooooooottttttttaaaaaaaallllllll UUUUUUUU........SSSSSSSS........ GGGGGGGGoooooooovvvvvvvvtttttttt,,,,,,,, sssssssseeeeeeeeccccccccuuuuuuuurrrrrrrriiiiiiiittttttttiiiiiiiieeeeeeeessssssss 77,577 78,750 77,479 75,468 78,491 77,129 78,491 69,501 81,012 82,367 83,514 78,093 82,683 81,092 82,683 71,242 CCCCCCCCaaaaaaaasssssssshhhhhhhh iiiiiiiitttttttteeeeeeeemmmmmmmmssssssss iiiiiiiinnnnnnnn pppppppprrrrrrrroooooooocccccccceeeeeeeessssssssssssssss ooooooooffffffff ccccccccoooooooolllllllllllllllleeeeeeeeccccccccttttttttiiiiiiiioooooooonnnnnnnn ^9,481 2*9,551 2*9,123 2*8,164 8,306 2*6,636 8,306 7,551 221 219 218 219 217 221 217 168 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr aaaaaaaasssssssssssssssseeeeeeeettttttttssssssss:::::::: DDDDDDDDeeeeeeeennnnnnnnoooooooommmmmmmmiiiiiiiinnnnnnnnaaaaaaaatttttttteeeeeeeedddddddd iiiiiiiinnnnnnnn ffffffffoooooooorrrrrrrreeeeeeeeiiiiiiiiggggggggnnnnnnnn ccccccccuuuuuuuurrrrrrrrrrrrrrrreeeeeeeennnnnnnncccccccciiiiiiiieeeeeeeessssssss 4 4 5 7 4 4 4 200 698 636 1,152 1,089 1,044 691 1,044 673 f103,573 2*104,946 2*106,180 2*99,743 104,429 2*100,809 104,429 90,860 LLLLLLLLiiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss 62,518 62,401 62,070 61,557 60,943 62,128 60,943 57,400 DDDDDDDDeeeeeeeeppppppppoooooooossssssssiiiiiiiittttttttssssssss:::::::: 2*29,328 P30,765 p31,870 2*27,244 31,787 2*27,933 31,787 23,783 2,001 1,404 1,530 1,557 1,837 1,945 1,837 1,182 516 759 552 413 426 420 426 188 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr:::::::: AAAAAAAAllllllllllllllll ooooooootttttttthhhhhhhheeeeeeeerrrrrrrr 33333333 645 662 697 654 719 672 719 629 P32,490 P33,590 f34,649 2*29,868 34,769 2*30,970 34,769 25,782 5,536 5,967 6,653 5,639 5,652 4,686 5,652 5,201 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss aaaaaaaannnnnnnndddddddd aaaaaaaaccccccccccccccccrrrrrrrruuuuuuuueeeeeeeedddddddd ddddddddiiiiiiiivvvvvvvviiiiiiiiddddddddeeeeeeeennnnnnnnddddddddssssssss 973 1,034 957 916 986 942 986 623 ^101,517 P\02,992 2*104,329 2*97,980 102,350 2*98,726 102,350 89,006 CCCCCCCCaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 838 836 832 834 834 838 834 787 793 793 793 793 793 793 793 742 425 325 226 136 452 452 452 325 TTTTTTTToooooooottttttttaaaaaaaallllllll lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss aaaaaaaannnnnnnndddddddd ccccccccaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 2*103,573 2*104,946 P106,180 2*99,743 104,429 2*100,809 104,429 90,860 CCCCCCCCoooooooonnnnnnnnttttttttiiiiiiiinnnnnnnnggggggggeeeeeeeennnnnnnntttttttt lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttyyyyyyyy oooooooonnnnnnnn aaaaaaaacccccccccccccccceeeeeeeeppppppppttttttttaaaaaaaannnnnnnncccccccceeeeeeeessssssss ppppppppuuuuuuuurrrrrrrrcccccccchhhhhhhhaaaaaaaasssssssseeeeeeeedddddddd ffffffffoooooooorrrrrrrr 605 604 600 596 589 604 589 199 MMMMMMMMaaaaaaaarrrrrrrrkkkkkkkkeeeeeeeettttttttaaaaaaaabbbbbbbblllllllleeeeeeee UUUUUUUU........SSSSSSSS........ GGGGGGGGoooooooovvvvvvvvtttttttt,,,,,,,, sssssssseeeeeeeeccccccccuuuuuuuurrrrrrrriiiiiiiittttttttiiiiiiiieeeeeeeessssssss hhhhhhhheeeeeeeelllllllldddddddd iiiiiiiinnnnnnnn ccccccccuuuuuuuussssssssttttttttooooooooddddddddyyyyyyyy ffffffffoooooooorrrrrrrr 26,958 26,501 26,818 26,908 27,230 27,354 27,230 31,512 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 66,084 65,955 65,526 65,192 65,119 66,229 65,119 60,886 Collateral held against notes outstanding: 2,455 2,455 2,415 2,415 2,415 2,485 2,415 2,335 U.S. Govt, securities 64,930 64,930 64,680 64,530 64,630 65,130 64,630 59,860 67,385 67,385 67,095 66,945 67,045 67,615 67,045 62,195 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

DECEMBER 1973 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON NOVEMBER 30, 1973 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e il i 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 a it n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 111111111111,,,,,,444444666666000000 440011 333333,,,,,,000000333333000000 992244 891 11,,002211 557700 22,,003333 550088 175 448833 444477 997777 Special Drawing Rights certificate account 444444000000000000 2233 999999333333 2233 33 3366 2222 7700 1155 7 1155 1144 4499 F.R. notes of other banks 111111,,,,,,111111666666444444 112233 222222333333888888 4466 60 8855 118811 6655 3311 19 4499 9999 116688 333333000000555555 1188 222222444444 33 35 3311 4411 3366 2211 10 3355 1166 3355 Loans: Secured by U.S. Govt, and agency obligations 888888444444222222 3366 111111000000777777 5555 66 113300 110066 112200 1188 10 6688 2277 9999 Other 111111,,,,,,000000777777222222 5577 333333555555 4488 113366 9999 2266 9900 8844 7700 442277 Acceptances: 444444555555 444444555555 HHHHHHHHHHHHHeeeeeeeeeeeeelllllllllllllddddddddddddd uuuuuuuuuuuuunnnnnnnnnnnnndddddddddddddeeeeeeeeeeeeerrrrrrrrrrrrr rrrrrrrrrrrrreeeeeeeeeeeeepppppppppppppuuuuuuuuuuuuurrrrrrrrrrrrrccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaassssssssssssseeeeeeeeeeeee aaaaaaaaaaaaagggggggggggggrrrrrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss.......................... 222222666666 222222666666 FFFFFFFFFFFFFeeeeeeeeeeeeedddddddddddddeeeeeeeeeeeeerrrrrrrrrrrrraaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaagggggggggggggeeeeeeeeeeeeennnnnnnnnnnnncccccccccccccyyyyyyyyyyyyy ooooooooooooobbbbbbbbbbbbbllllllllllllliiiiiiiiiiiiigggggggggggggaaaaaaaaaaaaatttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss::::::::::::: BBBBBBBBBBBBBooooooooooooouuuuuuuuuuuuuggggggggggggghhhhhhhhhhhhhttttttttttttt ooooooooooooouuuuuuuuuuuuutttttttttttttrrrrrrrrrrrrriiiiiiiiiiiiiggggggggggggghhhhhhhhhhhhhttttttttttttt 111111,,,,,,888888111111000000 85 444444666666222222 97 139 134 99 289 64 36 69 78 258 HHHHHHHHHHHHHeeeeeeeeeeeeelllllllllllllddddddddddddd uuuuuuuuuuuuunnnnnnnnnnnnndddddddddddddeeeeeeeeeeeeerrrrrrrrrrrrr rrrrrrrrrrrrreeeeeeeeeeeeepppppppppppppuuuuuuuuuuuuurrrrrrrrrrrrrccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaassssssssssssseeeeeeeeeeeee aaaaaaaaaaaaagggggggggggggrrrrrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss.......................... 111111666666888888 111111666666888888 UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvvttttttttttttt,,,,,,,,,,,,, ssssssssssssseeeeeeeeeeeeecccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrriiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss::::::::::::: BBBBBBBBBBBBBooooooooooooouuuuuuuuuuuuuggggggggggggghhhhhhhhhhhhhttttttttttttt ooooooooooooouuuuuuuuuuuuutttttttttttttrrrrrrrrrrrrriiiiiiiiiiiiiggggggggggggghhhhhhhhhhhhhttttttttttttt 111111777777666666,,,,,,333333999999333333 3,584 111111999999,,,,,,444444888888222222 4,092 5,889 5,644 4,198 12,205 2,690 1,519 2,907 3,302 10,881 HHHHHHHHHHHHHeeeeeeeeeeeeelllllllllllllddddddddddddd uuuuuuuuuuuuunnnnnnnnnnnnndddddddddddddeeeeeeeeeeeeerrrrrrrrrrrrr rrrrrrrrrrrrreeeeeeeeeeeeepppppppppppppuuuuuuuuuuuuurrrrrrrrrrrrrccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaassssssssssssseeeeeeeeeeeee aaaaaaaaaaaaagggggggggggggrrrrrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss.......................... 777777333333666666 777777333333666666 TTTTTTTTTTTTToooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll llllllllllllloooooooooooooaaaaaaaaaaaaannnnnnnnnnnnnsssssssssssss aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd ssssssssssssseeeeeeeeeeeeecccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrriiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 8811,,009922 3,762 2211,,006611 4,292 66,,009944 6,044 4,502 1122,,664400 2,862 1,565 3,128 3,477 1111,,666655 CCCCCCCCCCCCCaaaaaaaaaaaaassssssssssssshhhhhhhhhhhhh iiiiiiiiiiiiittttttttttttteeeeeeeeeeeeemmmmmmmmmmmmmsssssssssssss iiiiiiiiiiiiinnnnnnnnnnnnn ppppppppppppprrrrrrrrrrrrroooooooooooooccccccccccccceeeeeeeeeeeeessssssssssssssssssssssssss ooooooooooooofffffffffffff cccccccccccccooooooooooooolllllllllllllllllllllllllleeeeeeeeeeeeeccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnn....................................... 88,,114444 309 11,,335599 359 337722 747 892 11,,006611 351 415 546 553 11,,118800 222211 42 1100 10 2277 14 15 1166 14 36 17 12 88 OOOOOOOOOOOOOttttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr aaaaaaaaaaaaasssssssssssssssssssssssssseeeeeeeeeeeeetttttttttttttsssssssssssss::::::::::::: DDDDDDDDDDDDDeeeeeeeeeeeeennnnnnnnnnnnnooooooooooooommmmmmmmmmmmmiiiiiiiiiiiiinnnnnnnnnnnnnaaaaaaaaaaaaattttttttttttteeeeeeeeeeeeeddddddddddddd iiiiiiiiiiiiinnnnnnnnnnnnn fffffffffffffooooooooooooorrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiigggggggggggggnnnnnnnnnnnnn cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnccccccccccccciiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss.......................... 44 22 11 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 669911 29 119977 35 4477 52 35 9955 20 19 23 26 111133 103,481 4,707 26,013 5,692 7,560 8,030 6,258 16,017 3,822 2,246 4,296 4,644 14,196 LLLLLLLLLLLLLiiiiiiiiiiiiiaaaaaaaaaaaaabbbbbbbbbbbbbiiiiiiiiiiiiillllllllllllliiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 63,292 3,162 15,654 3,988 5,086 5,651 3,344 10,592 2,512 1,130 2,465 2,394 7,314 DDDDDDDDDDDDDeeeeeeeeeeeeepppppppppppppooooooooooooosssssssssssssiiiiiiiiiiiiitttttttttttttsssssssssssss::::::::::::: MMMMMMMMMMMMMeeeeeeeeeeeeemmmmmmmmmmmmmbbbbbbbbbbbbbeeeeeeeeeeeeerrrrrrrrrrrrr bbbbbbbbbbbbbaaaaaaaaaaaaannnnnnnnnnnnnkkkkkkkkkkkkk rrrrrrrrrrrrreeeeeeeeeeeeessssssssssssseeeeeeeeeeeeerrrrrrrrrrrrrvvvvvvvvvvvvveeeeeeeeeeeeesssssssssssss 27,933 926 7,404 1,200 1,689 1,310 1,927 3,768 858 606 1,156 1,543 5,546 UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. TTTTTTTTTTTTTrrrrrrrrrrrrreeeeeeeeeeeeeaaaaaaaaaaaaasssssssssssssuuuuuuuuuuuuurrrrrrrrrrrrreeeeeeeeeeeeerrrrrrrrrrrrr—————————————GGGGGGGGGGGGGeeeeeeeeeeeeennnnnnnnnnnnneeeeeeeeeeeeerrrrrrrrrrrrraaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaaccccccccccccccccccccccccccooooooooooooouuuuuuuuuuuuunnnnnnnnnnnnnttttttttttttt.......................... 1,945 183 422 66 157 228 105 175 59 72 54 150 274 420 16 3 136 19 35 20 27 60 13 9 16 21 48 OOOOOOOOOOOOOttttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr::::::::::::: AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr5555555555555 672 3 554 18 20 12 11 2 2 11 37 30,970 1,128 8,516 1,303 1,882 1,578 2,071 4,014 931 689 1,228 1,725 5,905 TTTTTTTTTTTTToooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll dddddddddddddeeeeeeeeeeeeepppppppppppppooooooooooooosssssssssssssiiiiiiiiiiiiitttttttttttttsssssssssssss 6,194 287 1,031 247 340 611 664 936 277 361 482 376 582 DDDDDDDDDDDDDeeeeeeeeeeeeefffffffffffffeeeeeeeeeeeeerrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeeddddddddddddd aaaaaaaaaaaaavvvvvvvvvvvvvaaaaaaaaaaaaaiiiiiiiiiiiiilllllllllllllaaaaaaaaaaaaabbbbbbbbbbbbbiiiiiiiiiiiiillllllllllllliiiiiiiiiiiiitttttttttttttyyyyyyyyyyyyy cccccccccccccaaaaaaaaaaaaassssssssssssshhhhhhhhhhhhh iiiiiiiiiiiiittttttttttttteeeeeeeeeeeeemmmmmmmmmmmmmsssssssssssss 942 44 271 49 74 68 35 148 33 20 36 40 124 101,398 4,621 25,472 5,587 7,382 7,908 6,114 15,690 3,753 2,200 4,211 4,535 13,925 OOOOOOOOOOOOOttttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr llllllllllllliiiiiiiiiiiiiaaaaaaaaaaaaabbbbbbbbbbbbbiiiiiiiiiiiiillllllllllllliiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd aaaaaaaaaaaaaccccccccccccccccccccccccccrrrrrrrrrrrrruuuuuuuuuuuuueeeeeeeeeeeeeddddddddddddd dddddddddddddiiiiiiiiiiiiivvvvvvvvvvvvviiiiiiiiiiiiidddddddddddddeeeeeeeeeeeeennnnnnnnnnnnndddddddddddddsssssssssssss 838 34 214 42 74 47 62 131 28 20 35 46 105 CCCCCCCCCCCCCaaaaaaaaaaaaapppppppppppppiiiiiiiiiiiiitttttttttttttaaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaaccccccccccccccccccccccccccooooooooooooouuuuuuuuuuuuunnnnnnnnnnnnntttttttttttttsssssssssssss 793 34 207 39 72 42 55 124 27 18 33 43 99 452 18 120 24 32 33 27 72 14 8 17 20 67 103,481 4,707 26,013 5,692 7,560 8,030 6,258 16,017 3,822 2,246 4,296 4,644 14,196 OOOOOOOOOOOOOttttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr cccccccccccccaaaaaaaaaaaaapppppppppppppiiiiiiiiiiiiitttttttttttttaaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaaccccccccccccccccccccccccccooooooooooooouuuuuuuuuuuuunnnnnnnnnnnnntttttttttttttsssssssssssss TTTTTTTTTTTTToooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll llllllllllllliiiiiiiiiiiiiaaaaaaaaaaaaabbbbbbbbbbbbbiiiiiiiiiiiiillllllllllllliiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd cccccccccccccaaaaaaaaaaaaapppppppppppppiiiiiiiiiiiiitttttttttttttaaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaaccccccccccccccccccccccccccooooooooooooouuuuuuuuuuuuunnnnnnnnnnnnntttttttttttttsssssssssssss.......................... CCCCCCCCCCCCCooooooooooooonnnnnnnnnnnnntttttttttttttiiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt llllllllllllliiiiiiiiiiiiiaaaaaaaaaaaaabbbbbbbbbbbbbiiiiiiiiiiiiillllllllllllliiiiiiiiiiiiitttttttttttttyyyyyyyyyyyyy ooooooooooooonnnnnnnnnnnnn aaaaaaaaaaaaacccccccccccccccccccccccccceeeeeeeeeeeeeppppppppppppptttttttttttttaaaaaaaaaaaaannnnnnnnnnnnnccccccccccccceeeeeeeeeeeeesssssssssssss pppppppppppppuuuuuuuuuuuuurrrrrrrrrrrrrccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaassssssssssssseeeeeeeeeeeeeddddddddddddd fffffffffffffooooooooooooorrrrrrrrrrrrr fffffffffffffooooooooooooorrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiigggggggggggggnnnnnnnnnnnnn cccccccccccccooooooooooooorrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeessssssssssssspppppppppppppooooooooooooonnnnnnnnnnnnnddddddddddddd------------- 604 25 4 157 30 55 31 42 95 21 14 25 33 76 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 6666,,222299 33,,334444 16,393 44,,007733 55,,331166 55,,884477 3,596 1100,,889966 22,,662255 1,186 2,594 22,,557799 7,780 Collateral held against notes outstanding: Gold certificate account 22,,448855 117755 335500 335500 775500 770000 115555 55 UU..SS.. GGoovvtt,, sseeccuurriittiieess 6655,,113300 33,,118855 16,650 33,,880000 55,,220000 55,,114455 3,700 1100,,440000 22,,552200 1,200 2,700 22,,663300 8,000 TToottaall ccoollllaatteerraall 67,615 3,360 16,650 4,150 5,550 5,895 3,700 11,100 2,675 1,200 2,700 2,635 8,000 1 See note 8 on p. A-5. 4 After deducting $447 million participations of other Federal Reserve 2 After deducing $3 million participations of other Federal Reserve Banks. Banks. 5 See note 5 on p. A-4. 3 After deducting $284 million participations of other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 FEDERAL RESERVE BANKS; BANK DEBITS • DECEMBER 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 Nov. 28 Nov. 21 Nov. 14 Nov. 7 Oct. 31 Nov. 30 Oct. 31 Nov. 30 Loans—Total 1,486 1,387 3,991 839 2,198 1,914 2,198 501 Within 15 days 1,428 1,333 3,942 782 2,147 1,849 2,147 498 16 days to 90 days 58 54 49 57 51 65 51 3 91 days to 1 year Acceptances—Total 60 118 106 47 107 71 107 63 Within 15 days 25 87 76 11 71 31 71 15 16 days to 90 days 35 31 30 36 36 40 36 48 91 days to 1 year U.S. Government securities—Total 7777,,557777 7788,,775500 7777,,447799 75,468 7788,,449911 7777,,112299 7788,,449911 6699,,550011 Within 15 days1 55,,889955 77,,116622 88,,008866 3,604 77,,338899 44,,001188 77,,338899 22,,333322 16 days to 90 days 1199,,113399 1199,,007700 1177,,880055 19,455 1188,,558888 2200,,668899 1188,,558888 1177,,447777 91 days to 1 year 2200,,335599 2200,,336688 1188,,338800 19,201 1199,,330066 2200,,223388 1199,,330066 1177,,555544 Over 1 year to 5 years 2222,,995533 2222,,995533 2222,,114488 22,148 2222,,114488 2222,,995533 2222,,114488 2244,,448844 Over 5 years to 10 years 77,,446699 77,,443355 99,,335588 9,358 99,,335588 77,,446699 99,,335588 66,,110088 Over 10 years 11,,776622 11,,776622 11,,770022 1,702 11,,770022 11,,776622 11,,770022 11,,554466 Federal agency obligations—Total 11,,888899 22,,111122 11,,993388 1,739 11,,888877 11,,997788 11,,888877 11,,117777 Within 15 days1 116633 332266 220022 114488 225522 114488 1144 16 days to 90 days 8855 116611 116611 164 112266 8855 112266 1177 91 days to 1 year 228800 225511 225522 252 229900 228800 229900 112244 Over 1 year to 5 years 666655 770022 667711 671 667711 666655 667711 662222 Over 5 years to 10 years 446699 444455 442255 425 442255 446699 442255 223388 Over 10 years 222277 222277 222277 227 222277 222277 222277 116622 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) PPPeeerrriiioooddd SSMM TT 22 oo SS 33 tt 33 AA aa ll '' ss N Le .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 SS 2266 ee AA rr '' ss SSMM TT 22 oo SS 33 tt 33 AA aa ll '' ss N Le .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 SS 2266 ee AA rr '' ss 1972—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 15,444.5 6,855.4 3,631.7 8,589.1 4,957.3 93.8 224.0 97.9 64.1 51.2 Feb 16,069.5 7,227.0 3,804.8 8,842.4 5,037.6 97.9 238.0 103.1 66.1 52.0 Mar 15,954.5 6,844.8 3,868.7 9,109.7 5,241.0 97.1 228.3 104.4 67.8 53.9 April 15,966.3 6,297.5 3,852.6 9,038.8 5,186.2 95.7 228.9 101.8 66.2 52.5 May r 16,447.0 7,177.0 3,913.4 9,270.1 5,356.7 97.8 235.1 103.6 67.3 53.6 June 16,634.4 7,244.6 4,046.6 9,409.8 5,363.3 99.9 245.0 107.5 68.7 54.0 July 17,218.8 7,381.4 4,277.8 9,837.4 5,559.5 102.6 247.5 111.5 71.3 55.8 Aug 17,885.3 7,744.6 4,315.3 10,140.6 5,825.3 106.1 252.5 113.5 73.6 58.4 Sept.r 17,914.5 8,025.3 4,192.1 9,889.1 5,697.1 107.4 266.4 111.5 72.4 57.5 Oct 18,378.5 8,137.2 4,413.5 10,241.3 5,827.8 109.4 265.3 116.3 74.6 58.6 1 Excludes interbank and U.S. Govt, demand deposit accounts. NOTE.—Total SMSA's includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 $12 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28.515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28,868 20,020 1.404 1.048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 195 9 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 196 0 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 196 1 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 196 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 4 196 4 39,619 28,100 3.405 J, 806 111 2,517 7,543 12.717 11,519 3,381 7,590 248 293 2 4 196 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 4 196 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 4 196 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 4 196 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 4 196 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 5 197 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 4 197 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 4 1972—Oct.. 63,586 43,085 7,172 2,378 135 3,209 9,334 20,857 20,500 5,570 14,503 194 226 2 4 Nov. 65,137 44,208 7,237 2,437 135 3,305 9,602 21,491 20,928 5,714 14,789 194 225 2 4 Dec. 66.516 45,105 7,287 2,523 135 3,449 9,827 21,883 21,411 5,868 15,118 193 225 2 4 1973—Jan.. 64,312 43,133 7,274 2,380 135 3,218 9,243 20,883 21,179 5,742 15,013 192 224 2 4 Feb. 64,696 43,431 7,290 2,370 135 3,213 9,330 21,091 21,266 5,755 15,089 192 224 2 4 Mar. 65,180 43,699 7,320 2,368 135 3,209 9,352 21,314 21,482 5,787 15,274 191 223 2 4 Apr. 66.094 44,313 7,382 2,406 135 3,234 9,447 21,707 21,781 5,887 15,476 190 222 2 4 May 67,161 45,074 7,446 2.439 135 3,302 9,613 22,138 22,088 5,974 15,697 189 221 2 4 June 67,771 45,428 7,498 2,433 135 3,309 9,648 22,405 22,343 6,024 15,903 189 220 2 4 July. 68,223 45,564 7,542 2.440 135 3,301 9,602 22,544 22,659 6,116 16,130 188 219 2 4 Aug. 68,376 45,553 7,577 2,430 135 3,288 9,566 22,557 22,822 6,149 16,261 188 219 2 4 Sept. 68,217 45,398 7,597 2,435 135 3,288 9,505 22,437 22,819 6,112 16,296 187 218 2 4 Oct.. 69,043 45,927 7,644 2,480 135 3,333 9,616 22.718 23,116 6,182 16,524 186 217 2 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- NOTE.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 TTToootttaaalll,,, ooouuuttt--- HHHeeelllddd bbbyyy ssstttaaannndddiiinnnggg,,, AAss sseeccuurriittyy FFoorr FFF...RRR... 1973 1972 KKKiiinnnddd ooofff cccuuurrrrrreeennncccyyy OOOcccttt... 333111,,, aaggaaiinnsstt TTrreeaassuurryy FF..RR.. BBBaaannnkkksss 111999777333 ggoolldd ccaasshh BBaannkkss aaannnddd cceerrttiiffiiccaatteess aanndd AAAgggeeennntttsss Oct. Sept. Oct. AAggeennttss 31 30 31 Gold 1111111111,,,,,555556666677777 ((1111,,446600)) 110077 Gold certificates (((((1111111111,,,,,444446666600000))))) 221111,,445599 Federal Reserve notes 6666655555,,,,,111112222200000 111555222 4444,,,,111177778888 666000,,,777999000 666000,,,000111111 555555,,,888000222 Treasury currency—Total 88888,,,,,666664444499999 888444 333311113333 888,,,222555333 888,,,222000666 777,,,777888444 DDoollllaarrss 777776666677777 333444 777772222222222 777771111188888 666665555566666 Fractional Coin 77777,,,,,222227777711111 77771111 222777888 66666,,,,,999992222222222 66666,,,,,888887777799999 66666,,,,,555551111166666 United States notes 333332222233333 2222 333332222211111 333332222200000 333332222200000 In process of retirement 4 222228888899999 222228888888888 222228888899999 222229999911111 TToottaall——OOcctt.. 3311,, 11997733 444488885555,,,,333333336666 ((((11111111,,,,444466660000)))) 333344442222 11111111,,,,444455559999 4444,,,,444499992222 6699,,004433 Sept. 30, 1973 444488883333,,,,999966664444 ((((11110000,,,,333300003333)))) 333366661111 11110000,,,,333300002222 5555,,,,000088883333 6688,,221177 Oct. 31, 1972 444477778888,,,,333366661111 ((((11110000,,,,333300003333)))) 333366669999 11110000,,,,333300002222 4444,,,,111100004444 6633,,558866 t 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 • DECEMBER 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mz Mi Mi M% 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—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 264.3 547.6 863.5 263.2 546.6 '863.7 Aug 263.9 550.5 866.5 260.7 547.0 r862.9 Sept 263.4 552.3 868.8 r261.9 r550.3 r866.4 Oct.f 264.4 r557.1 r875.4 264.0 r555.8 r873.4 Nov.? 266.8 562.5 882.6 268.5 561.1 879.8 Week ending— Nov. 7 266.4 561.5 268.0 560.7 14 267.0 562.9 269.0 561.9 21 267.6 562.9 268.9 560.8 28 265.4 561.4 267.5 559.9 Dec. 5 226666..66 556633..22 227711..33 556655..11 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 M%\ 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. A/2: Averages of daily figures for Mi plus savings deposits, time de- 1973 BULLETIN. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks 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 1 Other Total CD's 1 Other Total 1969—Dec 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—Dec 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—Dec 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—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 r314.2 59.4 201.8 59.3 283.4 342.7 315.3 6.9 July 59.5 204.9 64.5 283.3 347.7 r315.9 59.9 203.2 62.3 283.5 345.8 317.0 6.3 Aug 59.7 204.2 67.0 286.6 353.6 315.9 60.0 200.8 68.4 286.3 354.7 315.9 4.0 Sept 60.1 203.3 66.8 r288.9 355.6 316.6 r60.1 201.8 68.8 288.4 357.2 316.1 5.1 Oct.P 60.3 r204.0 63.4 292.8 r356.1 '318.2 60.3 r203.6 r66.3 '291.8 '358.2 317.6 5.8 NOV.P 60.8 205.9 61.1 295.8 356.8 320.0 61.4 207.2 64.1 292.6 356.7 318.7 4.2 Week ending— Nov. 7 60.6 205.9 61.7 295.1 356.8 61.1 206.9 64.5 292.7 357.2 5.5 14 6666600000.....88888 222220000066666.....22222 6666600000.....88888 222229999955555.....99999 333335555566666.....77777 6666611111.....44444 222220000077777.....66666 6666633333.....99999 222229999922222.....99999 333335555566666.....77777 33333.....55555 21 6666611111.....11111 222220000066666.....55555 6666600000.....88888 222229999955555.....33333 333335555566666.....22222 6666611111.....66666 222220000077777.....22222 6666644444.....22222 222229999911111.....99999 333335555566666.....11111 33333.....88888 28 6666600000.....88888 222220000044444.....66666 6666611111.....11111 222229999966666.....00000 333335555577777.....11111 6666611111.....33333 222220000066666.....22222 6666644444.....11111 222229999922222.....55555 333335555566666.....66666 44444.....00000 Dec. 5 6666600000.....77777 222220000055555.....88888 6666611111.....11111 222229999966666.....66666 333335555577777.....77777 6666611111.....77777 222220000099999.....22222 6666633333.....55555 222229999933333.....88888 222225555577777.....33333 44444.....22222 1 Negotiable time certificates of deposit issued in denominations of ^ 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

DECEMBER 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 aaabbbllleee222 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—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.. .. 33.90 32.00 33.74 31.96 436.7 275.6 156.9 4.2 433.7 276.6 154.0 3.1 443.9 440.8 Sept 34.15 32.60 33.96 32.31 438.6 277.3 156.2 5.1 437.7 279.0 154.7 4.1 445.9 445.0 Oct r34.97 r33.55 r34.71 r32.76 439.7 '276.7 156.4 6.6 r439.7 r278.8 156.1 4.8 r446.5 r446.5 Nov.*.. 34.78 33.51 34.58 32.54 439.6 276.2 157.5 6.0 438.3 276.6 158.4 3.3 446.7 445.4 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 TTToootttaaalll TTToootttaaalll DDDDaaaatttteeee llloooaaannnsss Commercial llloooaaannnsss Commercial aaannnddd and industrial 3 aaannnddd and industrial3 iiinnnvvveeesssttt--- PPlluuss UU..SS.. iiinnnvvveeesssttt--- PPlluuss UU..SS.. mmmeeennntttsss111 TToottaall11 llooaannss Plus TTrreeaass-- OOtthheerr44 mmmeeennntttsss 111 TToottaall11 llooaannss Plus TTrreeaass-- OOtthheerr44 ssoolldd22 Total loans uurryy ssoolldd 22 Total loans uurryy sold 2 sold2 1968—Dec. 31 390.2 258.2 95.9 60.7 71.3 400.4 264.4 98.4 64.5 71.5 1969—Dec. 315.... 401.7 279.1 283.0 105.7 108.3 51.5 71.1 412.1 286.1 290.0 108.4 111.0 54.7 71.3 1970—Dec. 31 435.5 291.7 294.7 110.0 112.1 57.9 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Nov. 29 549.9 372.9 375.4 128.2 129.8 60.9 116.1 549.9 371.8 374.3 127.6 129.2 63.2 114.9 Dec. 31 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Jan. 31 564.7 385.8 388.4 133.3 135.0 61.8 117.1 565.6 383.5 386.1 132.0 133.7 65.6 116.5 Feb. 28 575.4 397.2 400.3 138.1 140.2 60.6 117.6 571.1 392.6 395.7 136.6 138.7 61.6 116.8 Mar. 28 583.6 405.8 409.0 141.8 143.8 60.4 117.4 580.6 401.7 404.8 141.7 143.7 61.2 117.7 Apr. 25 589.6 411.1 414.7 143.9 146.2 61.0 117.5 587.3 408.3 411.9 144.4 146.7 60.4 118.6 May 30 597.7 417.4 421.1 146.8 149.0 61.0 119.3 594.8 416.6 420.3 146.4 148.6 58.3 119.9 June 30.... 602.0 420.3 423.8 148.2 150.4 61.6 120.1 605.6 426.6 430.1 150.4 152.6 57.9 121.1 July 25*.... 608.2 427.3 431.3 151.4 154.0 59.6 121.3 606.8 429.1 433.1 151.8 154.4 56.4 121.4 Aug. 29V 616.0 435.3 440.0 153.6 156.5 57.7 123.0 612.0 434.6 439.3 152.2 155.1 54.7 122.8 Sept. 26P 618.2 438.1 442.7 154.0 156.9 56.3 123.8 617.9 439.1 443.8 154.1 157.0 54.8 123.9 Oct. 31». . . 621.7 440.0 444.6 154.0 156.9 54.9 126.8 621.4 439.9 444.5 153.3 156.2 55.6 125.9 Nov. 28*... 624.6 443.6 447.9 155.5 158.2 54.5 126.5 624.5 442.1 446.4 154.6 157.3 57.3 125.1 1 Adjusted to exclude domestic commercial interbank loans. See also net of valuation reserves as was done previously. For a description of the note 3. revision, see Aug. 1969 BULLETIN, pp. 642-46. Data shown in above table 2 Loans sold are those sold outright by commercial banks to own sub- have been revised to include valuation reserves. sidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1972, commercial and industrial loans were re- NOTE.—Total loans and investments: For monthly data, Jan. 1959duced by about $400 million as a result of loan reclassifications at one June 1973, see Nov. 1973 BULLETIN, pp. A-96-A-97, and for 1948-58, large bank. Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current 4 Beginning June 30, 1971, Farmers Home Administration insured notes seasonally adjusted series see the Nov. 1973 BULLETIN, pp. 831-32, and totaling approximately $700 million are included in "Other securities" the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans: rather than in "Loans." For monthly data, Jan. 1959-June 1973, see Nov. 1973 BULLETIN, pp. 5 Beginning June 30, 1969, data revised to include all bank-premises A-96-A-98; for description see July 1972 BULLETIN, p. 683. Data are for subsidiaries and other significant majority-owned domestic subsidiaries; last Wednesday of month except for June 30 and Dec. 31; data are partly earlier data include commercial banks only. Also, loans and investments or wholly estimated except when June 30 and Dec. 31 are call dates. are now reported gross, without valuation reserves deducted, rather than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS • DECEMBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Cash lia- Bor-, capital Class of bank assets 3 bilities row- acand date Total Loans and Total3 Demand ings counts l U.S. capital De- Treas- Other ac- mand Time Time 5 ury 2 counts4 U.S. Govt. Other All commercial banks: 1941--Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 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 12,792 240 ,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 1,21 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--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--Feb. 28... 599,970 421,500 61,620 116,850 99,590 729,670 598,520 29,530 4,170 11,370 227,190 326,260 45,480 Mar. 28.. . 608,320 429,400 61,180 117,740 90,980 729,250 596.690 25,960 4,530 11,390 220,290 334,520 45,420 Apr. 25... 616,480 437,520 60,400 118,560 91,580 738,740 604,570 26,220 4,880 10,910 225,170 337,390 45,830 May 30... 622,340 444,120 58,330 119,890 95,410 749,470 611,920 27,770 5,250 5,810 229,050 344,040 47,360 June 30... 635,756 456,780 57,877 121,099 103,608 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 July 25*.. 634,220 456,480 56,360 121,380 95, — 761,870 618,670 28,710 5,830 6,750 228,310 349,070 52,580 Aug. 29P. . 640,100 462,630 54,720 122,750 92,010 765,200 618,440 26,500 6,620 3,460 224,450 357,410 53,150 Sept. 26P.. 645,150 466,420 54,800 123,930 100,030 778,070 628,700 27,720 7,190 8,210 227,880 357,700 56,180 Oct. 3If.. 652,330 470,780 55,640 125,910 111,720 798,550 643,790 32,830 6,820 5,680 240,390 358,070 60,220 Nov. 28P.. 656,700 474,300 57,300 125,300 104,140 794,420 635,940 30,130 7,010 4,350 237,650 356,800 62,400 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—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--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... 498,322 368,842 38,372 91,108 85,802 611,359 486,975 26,182 6,480 6,740 175,016 272,557 52,485 Oct. 31 P.. 504,120 371,866 39,375 92,879 96,251 628,710 499,093 31,142 6,112 4,601 185,308 271,930 56,832 Nov. 2SP. . 507,176 374,148 40,752 92,276 89,652 624,258 491,405 28,522 6,298 3,359 182,931 270,295 58,865 Large member banks: New York City: * * 10 1941--Dec. 31... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 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--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--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 Oct. 31... 83,338 68,229 4,828 10,281 28,643 119,283 87,935 16,713 3,807 642 32,901 33,872 15,170 Nov. 28... 84,529 69,048 5,035 10,446 24,917 116,040 84,824 14,864 4,087 373 31,776 33,724 14,882 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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— Total Interbank3 Other Total Class of bank lia- Bor- capital and date Cash bilities row- ac- Total Loans assets3 and Demand ings counts l U.S. capital Total3 Treas- Other ac- De- Time Time* ury counts4 mand U.S. Govt. Other Large member banks (cont.) City of Chicago: 8,9 1941—Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 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 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 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1972—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—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 Oct. 31. 25,489 20,022 1,621 3,846 4,146 31,015 21,837 1,481 517 194 6,863 12,782 5,895 Nov. 28. 26,278 21,117 1,504 3,657 3,794 31,441 21,577 1,505 459 115 6,942 12,556 6,314 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 1945—Dec. 31 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 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 7. 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 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—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—Feb. 28. 169,71 126,893 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 30,111 215,262 168,360 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. 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 33,048 225,139 174,901 8,494 1,562 2,930 61,459 100,456 24,730 Oct. 31. 185,864 142,511 12,053 31,300 35,331 231,737 178,295 9,583 1,446 1,972 65,364 99,930 27,537 Nov. 28. 185,094 141,112 12,966 31,016 34,360 229,828 174,434 8,939 1,410 1,223 64,717 98,145 29,092 AH other member: 8,9,10 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 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.. 122,51 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 11 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 1970—Dec. 31.. 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 1971—Dec. 31.. 175,21* 110,357 24,343 40,511 26,783 207,798 181,780 3,853 263 2,993 74,072 100,600 3,118 1972--Oct. 25. 189,164 121,498 23,512 44,154 28,205 224,720 194,272 3,485 395 2,509 76,158 11,725 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 '14,483 4,455 1973—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.. 203,084 134,243 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. 26 208,391 139,794 21,171 47,426 26,370 243,246 207,920 3,094 395 2,434 77,421 124,576 8,212 Oct. 31 209,429 141,104 20,873 47,452 28,131 246,675 221,026 3,365 342 1,793 80,180 125,346 8,230 Nov. 28* 211,275 142,871 21,247 47,157 26,581 246,949 210,570 3,214 342 1,648 79j496|125,870 8,577 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS • DECEMBER 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank 3 Other FRS membership Cash lia- Bor- Total Numand FDIC assets 3 bbiilliittiieess row- ccaappiittaall bbeerr insurance Total Loans aanndd Total 3 Demand ings aacc-- ooff U.S. Other ccaappiittaall De- Time ccoouunnttss bbaannkkss Treas- 2 aacc-- mand Time 5 ury ccoouunnttss44 U.S. Other Govt. Insured banks: Total: 1941 _Dec. 31. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,<6 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,18 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 59,91 343,876 305,113 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 66,679 116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Mar. 28.. 606,852 428.235 178,617 | 89,402 724,105 594,805 25,721 4,339 11,322 219,601 333,821 43,921 53,529 13,766 June 30., 630,379 452,587 762,250 625,316 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 4,137i 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 50,953j 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—Dec. 31?. 247,526 177,435 29,576 40,514 54,721j 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,-411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31. 32,566 11,200 19,240 2,125 10,822' 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20. 72,680 46,866 15,958 9,855 15,76o' 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 15,934jj 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 1 111,188 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 j 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 20,125 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—Dec. 31. 115,426 82,889 11,530 21,008 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Mar. 28. 117,547 87,421 30,126 148,345 117,906 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| 1 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 II 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 16,4521 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

DECEMBER 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——— CCClllaaassssssiiifffiiicccaaatttiiiooonnn bbbyyy Securities TTToootttaaalll Interbank3 Other FFFRRRSSS mmmeeemmmbbbeeerrrssshhhiiippp CCCaaassshhh llliiiaaa--- BBBooorrr--- TTToootttaaalll NNNuuummm--aaannnddd FFFDDDIIICCC aaasssssseeetttsss 333 bbbiiillliiitttiiieeesss rrrooowww--- cccaaapppiiitttaaalll bbbeeerrr iiinnnsssuuurrraaannnccceee TToottaall LLooaannss T U r u e r .S a y . s - Oth 2 er ccc ccc ooo aaa uuu aaa aaa ppp nnn nnn ccc iii ddd --- ttt tttsss aaa lll 444 TToottaall33 m D a e n - d Time G U o . D v S t . e . n la O nd th er Tim 5 e iiinnngggsss cccooo aaa uuu ccc nnn --- tttsss bbbaaa ooo nnn fff kkk sss Noninsured nonmember: 1941 —Dec. 31 1,457 455 761 241 763 2,283 11,,887722 329 1 91 253 13 329 852 1945—Dec. 31 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947 Dec. 316 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30? 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dec. 31 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1971—Dec. 31 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—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 7 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 Dec. 31 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 1971—Dec. 31 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—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 t 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 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 6 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 • DECEMBER 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b c C a a l n l a l k s d s a a o n te f d l i m o T n a a v o e n n e n t d s a s t t l s i - f e s F e u o t r e n c l a d . d d l 2 - , s T 3 o , t 4 a l C m a c i o i n n e a m d - r l - - A c t a u u l g r r l 5 - - i- o p b T s r u r e o o 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 tu n o t c i i o a n l s R t e a e s t a - e l O v t i d t h i n o d i e - - - r, Other U B s .S e il c . l u s T r r it e i a es s u 6 r y S s g l a o e o t n c c a v d a u t t e l - , O r s i e t t i h c e u e s r - 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. 31 io 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 AH insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 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 10,099 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 15,967 1,295 4,721 9,060 27,574 108,008 94,060 10,909 57,532 90,967 29,21 Member—Total: 1941—Dec. 31.. 43,321 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,090 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 1,046 811 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 9,467 7, i 03 4,122 8,634 26,258 79,840 69,006 9,953 41,080 69,374 19,172 New York City.-*1 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 1,518 1973—Mar. 28. 76,790 1,674 61,021 June 30.. 79,212 1,394 64,033 31,880 81 4*563 772 3,776 8,776 6,352 5,158 2,676 4,661 7,224 1,900 City of Chicago: i* 1941—Dec. 31.. 2,760 954 732 6 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 21 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 3 73 87 46 149 26 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 10,034 129 843 " 313 598 3^558 1,146 i \ 207 72i 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 ,503 17 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 ,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 1,977 2,024 1,707 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 i,4i5 '784 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 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 1972—Dec. 31 io 198,156 8,504 119,690 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 i *253 "657 2 * 484 42,638 38,284 2,376 21,638 34,919 12,153 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,078 625 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 ,219 1,427 28,359 25,410 ,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

DECEMBER 1973 • COMMERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d s B F w e R a r . i n e v R th - k e . s s r C c a e o n u n i d r c n - y b m a a w B d n e n i a o c s t k - l t e h - i s s c 7 j p u m D s o a d a t d s e e e n i - - - d t d s 8 m D e I s o n t - t i e c r 7 b e a F i n g o k n r - 9 G U o . v S t . . S g l a o o t n c a v d a t t e l . c C c h o a f e e e i e f t n e r r f c c d d t s i . k - i ' - s, IPC I b n a t n er k - G P U S i a o n 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 d a t t e l . IPC3 r B i o n o w g r s - - c C o a t a u a c p n l - i t - s Total:3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 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 38,1 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 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1.829 11,075 74,722 12,566 1,248 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 11 826 33,946 61 9,734 1972—Dec. 31 io . 26,070 8,637 30,734 210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 606 37,086 276,138 37,556 52,166 1973—Mar. 28 . . . 27,160 8.830 23,131 194,096 22,443 3,279 11,322 16,111 8,593 194,898 4,339 666 41,495 291,662 43,921 53,529 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 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,243 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 6,357 41,228 1973—M Ju a n r e . 2 3 8 0 . . . . . , 2 25 7 , , 1 1 4 6 3 0 6 5 , , 7 7 1 5 0 4 1 1 4 8 , , 7 0 1 0 9 4 1 1 4 45 8 , , 4 3 1 0 1 6 2 2 1 5 , , 5 6 3 8 7 4 3 3 , , 1 6 0 2 8 7 9 8 , , 3 1 2 6 3 7 1 1 3 1 , , 2 7 5 3 1 2 7 8 , , 3 78 4 1 7 1 1 6 5 0 1 , , 4 2 0 9 7 9 4 3 , , 8 7 7 8 9 0 5 5 6 1 9 6 3 3 1 0 , , 7 8 0 1 5 2 2 2 2 3 2 0 , ,9 9 6 0 9 0 4 4 2 6 v ,5 29 4 4 1 3 , ,0 8 9 9 8 7 New York City;H 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 ,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 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 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 24,032 15,260 All other member:11 1941—Dec. 31.... 2,210 526 3,216 9,661 790 225 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 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 1,049 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1972—Dec. 31 io. 8,794 3,807 9,681 76,597 4,047 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 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 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 13,595 385 167 1,295 180 12,284 190 172 6,858 12 1,596 1972—Dec. 31 io 2,084 12,789 53,658 1,449 446 1,851 5,044 2,182 47,180 633 138 8,608 66,559 1,726 11,429 1973—June 30.. 1,915 11,838 53,803 1,294 442 2,267 4,915 2,381 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, 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 baiik 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 • DECEMBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.* 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 and culcial Treas- Other indus- tural Pers. banks ury se- trial U.S. U.S. and se- curi- Treas- Other Treas- Other sales curi- ties ury sees. ury sees. finan. ties sees. sees. COS., etc. Large banks— Total 1972 Nov. 8 309,824 11,837 10,933 489 308 107 216,639 88,356 2,699 7,721 193 2,820 15 313,429 13,615 11,117 ,973 353 172 218,311 88,496 2,712 1,459 7,940 190 2,832 22 311,490 11,865 10,728 463 378 296 217,670 88,501 2,730 1,003 7,585 193 2,825 29 314,146 12,480 11,445 626 284 125 218,272 88,642 2,745 1,265 7,551 203 2,849 1973 Oct. 3 356,569 14,470 13,094 831 186 359 261,864 108,332 3.345 694 5,507 158 2,942 10 361,917 17,802 13,889 3,346 159 408 262,826 108,162 3,316 1,340 5,534 159 2,932 17 355,079 13,733 12,461 874 144 254 260,935 107.657 3,328 634 5,328 160 2,936 24 355,714 13,664 12,453 790 132 289 260,754 107,124 3.346 741 5,614 152 2,914 31 358,429 14,629 13,291 913 221 204 261,508 106,699 3,379 547 5,910 149 2.902 Nov. 7*> 363,207 16,290 14,400 1,312 349 229 263,271 107,041 3,406 1,445 6,012 138 2.903 14*> 360,150 15,81 14,163 1,206 258 184 261,638 107,124 3.402 613 5,752 135 2,874 21* 358,562 13,487 12,059 924 289 215 261,566 107,381 3.403 628 5,632 143 2,852 28*> 359,705 14,443 12,845 1,100 321 177 262,370 107,425 3,422 631 5,530 143 2,864 New York City 1972 Nov. 8 64,718 743 709 12 49,586 24,916 677 4,907 669 15 65,980 891 834 28 50,513 25,002 1,268 5,083 676 22 65,299 883 697 182 49,633 24,946 874 4,758 665 29 66,101 1,256 1,240 12 49,812 24,930 1,102 4,698 684 1973 Oct. 3 76,242 2,106 2,011 2 60,845 30,801 87 588 3,294 681 10 77,423 1,573 1,451 30 62,045 30,918 88 1,223 3,400 680 17 75,707 1,391 1,266 120 60,629 30,824 94 550 3,171 678 24 76,854 1,960 1,839 120 61,107 30,738 96 653 3,542 674 31 77,465 1,639 1,507 120 61,580 30,557 101 463 3,751 679 Nov. 7» 79,250 1,060 940 120 63,271 30,783 107 1,318 3,781 685 14p 78,054 1,845 1,725 120 61,585 30,737 108 543 3,447 662 21* 77,988 1,760 1,640 120 61,346 30,851 109 534 3,360 653 28 p 78,616 2,298 2,178 120 61,839 30,935 112 514 3,296 652 Outside New York City 1972 Nov. 8 245,106 11,094 10,224 467 308 95 167,053 63,440 2,649 131 2,814 151 2,151 15 247,449 12,724 10,283 1,944 353 144 167,798 63,494 2,663 191 2,857 155 2,156 22 246,191 10,982 10,031 459 378 114 168,037 63,555 2,684 129 2,827 158 2,160 29 248,045 11,224 10,205 622 284 113 168,460 63,712 2,699 163 2,853 168 2,165 1973 Oct. 3 280,327 12,364 11,083 829 186 266 201,019 77,531 3,258 106 2,213 122 2,261 10 284,494 16.229 12,438 3,316 159 316 200,781 77,244 3,228 117 2,134 121 2,252 17 279,372 12,342 11,195 754 144 249 200,306 76,833 3,234 84 2,157 122 2,258 24 278,860 11,704 10,614 670 132 288 199,647 76.386 3,250 88 2,072 119 2,240 31 280,964 12,990 11,784 793 221 192 199,928 76,142 3,278 84 2,159 119 2,223 Nov. 7® 283,957 15.230 13,460 1,192 349 229 200,000 76,258 3,299 127 2,231 108 2,218 14f 282,096 13,966 12,438 1,086 258 184 200,053 76.387 3,294 70 2,305 104 2,212 21* 280,574 11,727 10,419 804 289 215 200,220 76,530 3,294 94 2,272 112 2,199 28* 281,089 12,145 10,667 980 321 177 200,531 76,490 3,310 117 2,234 112 2,212 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Consumer For- All Certifinstal- eign other Bills icates Do- For- ment govts. 2 Within 1 to After mes- eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1972 1.838 2,875 27,287 1.131 17,710 25,669 3,838 4,369 14,540 2,922 Nov. 8 1.839 2,994 27,363 1.132 17,587 26,313 3,703 4,268 15,377 2,965 15 1,924 2,960 27,438 1,128 17,712 26,597 4,126 4,288 15,224 2,959 22 1,970 2,929 27,548 1,146 17,545 27,925 5,568 4,458 15,077 2,822 29 1973 3,485 4,640 31,922 1,307 20,103 22,523 3,321 4,384 12,137 2,681 Oct. 3 3,356 4,789 31,968 1,339 20,310 23.179 3,971 4.428 12,069 2,711 10 3,412 4,655 32,038 1,313 20,319 22,887 3,650 4,457 12,066 2.714 17 3,386 4,744 32,132 1,288 20,426 23,108 3,917 4,494 11,982 2.715 24 3,531 4,523 32,259 1,325 20,797 23,195 3,939 4,454 12,037 2,765 31 3,463 4,422 32,292 1,354 21,177 24.180 5,052 4,416 11,908 2,804 Nov. 1p 3,526 4,495 32,385 1,408 20,172 24,129 5,114 4.429 11,865 2,721 14 p 3 3 , , 8 7 1 9 8 0 4 4 , , 3 5 6 2 5 9 3 32 2 , , 5 4 2 3 3 9 1 1, , 4 4 0 0 8 3 2 2 0 0 , ,2 3 9 4 1 7 2 2 4 4 , , 3 8 3 7 8 2 4 4 , , 4 8 3 3 7 7 4 3 , , 0 9 7 4 5 6 1 12 2 , , 4 3 3 5 1 4 3 3 , , 5 6 2 0 4 6 2 2 \P 8 * New York City 1972 447 1,363 2,049 729 3,720 4,493 1,024 779 2,399 291 Nov. 8 458 1,441 2.057 722 3,594 4,981 934 782 2,915 350 15 448 1,446 2,056 714 3,692 5,224 1,243 769 2,835 375 22 463 1,430 2.058 737 3,536 5,436 1,565 766 2,734 371 29 1973 1.364 1,864 2,394 669 4,277 3,890 965 702 1,670 553 Oct. 3 1,255 2,048 2,402 657 4,450 4,196 1,253 736 1,649 558 10 1,202 1,889 2,402 651 4,427 4,254 1,205 746 1,681 622 17 1,257 1,982 2.408 642 4,517 4,361 1,370 728 1,624 639 24 1.365 1,931 2.409 670 4,762 4,587 1,411 738 1,709 729 31 1,368 1,930 2,411 685 5,200 4,890 1,734 687 1,719 750 Nov. 1p 1,468 2,066 2,419 748 4,390 4,834 1,797 711 1,659 667 14f 1 1 , , 6 6 6 4 1 7 2 1 , , 0 9 9 7 0 2 2 2 , , 4 4 4 3 3 2 7 72 2 8 2 4 4, , 4 4 4 5 0 6 4 5 , , 7 0 1 2 9 9 1 1 , ,1 4 8 43 8 7 6 5 6 9 4 1 1 , , 6 6 8 34 1 1 1 , ,1 19 8 3 6 2 2 1 8 P f Outside New York City 1972 1,391 1,512 25,238 402 13,990 21,176 2,814 3,590 12,141 2,631 .Nov. 8 1,381 1,553 25,306 410 13,993 21,332 2,769 3,486 12,462 2,615 15 1,476 1,514 25,382 414 14,020 21,373 2,881 3,519 12,389 2,584 .22 1,507 1,499 25,490 409 14,009 22,489 4,003 3,692 12,343 2,451 29 1973 2,121 2,776 29,528 638 15,826 18,633 2,356 3,682 10,467 2,128 .Oct. 3 2,101 2,741 29,566 682 15,860 18,983 2,718 3,692 10,420 2,153 10 2,210 2,766 29,636 662 15,892 18,633 2,445 3,711 10,385 2,092 17 2,129 2,762 29,724 646 15,909 18,747 2,547 3,766 10,358 2,076 24 2,166 2,592 29,850 655 16,035 18,608 2,528 3,716 10,328 2,036 31 2,095 2,492 29,881 669 15,977 19,290 3,318 3,729 10,189 2,054 .Nov. 1p 2,058 2,429 29,966 660 15,782 19,295 3,317 3,718 10,206 2,054 UP 2,143 2,393 30,007 681 15,835 19,843 3,394 3,316 10,720 2,413 21* 2,157 2,439 30,080 680 15,907 19,619 3,249 3,282 10,750 2,338 28 p For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS • DECEMBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest- Obligations Other bonds, items Re- Bal- ments of State corp. stock, in serves Cur- ances in sub- Wednesday and and process with rency with sidiar- Other political securities of F.R. and do- ies not assets Total subdivisions collec- Banks coin mestic consoltion banks idated Tax Certif. war- All of All rants 3 other partici- others pation4 Large banks— Total 1972 55,679 9,087 37,909 1,662 7.021 32,951 21,528 3,654 10,198 1.071 17,492 Nov. 8 55,190 8,833 37,594 1,741 7.022 29,628 17,322 3,836 10,009 1.072 16,946 15 55,358 8,828 37,772 1,712 7,046 28,708 19,109 3,734 8,861 1.073 16,716 22 55,469 8,769 37,878 1,763 7,059 29,136 17,809 4,402 10,023 1,076 16,871 29 1973 Oct. 3 57,712 7,578 38,648 2,113 9,373 31,678 22,661 4,022 10,541 1,331 21,054 10 58,110 7,515 38,875 2,238 9,482 32,649 17,406 4,229 11,175 1,335 20,825 17 57,524 7,391 38,524 2,173 9,436 31,819 23,700 4,215 10,415 1,412 20,610 24 58,188 7,604 38,562 2,213 9,809 33,369 24,937 4,378 13,161 1,415 20,217 31 59,097 7,678 38,883 2,241 10,295 34,426 25,037 4,279 13,062 1,340 20,999 Nov. 7* 59,466 7,749 39,187 2,212 10,318 36,848 20,940 3,955 14,314 1,355 20,599 14* 58,572 7,348 38,666 2,230 10,328 36,059 25,990 4,359 12,417 1,360 19,883 21* 58,637 7,180 38,970 2,193 10,294 31,700 23,538 4,021 10,576 1,395 20,033 28* 58,554 7,152 38,894 2,295 10,213 31,376 22,356 4,742 12,168 1,368 20,369 New York City 1972 Nov. 8 9,896 2,692 5,669 416 1,119 12,243 5,498 457 4,304 537 5,522 15 9,595 2,605 5,395 501 1,094 10,019 4,605 458 3,393 536 5,238 22 9,559 2,583 5,387 488 1,101 9,703 4,466 418 3,104 537 5,047 29 9,597 2,583 5,395 536 1,083 11,548 4,401 501 4,223 537 5,093 1973 Oct. 3 9,401 2,183 4,931 583 1,704 9,842 5,350 487 4,522 641 6,645 10 9,609 2,156 5,027 649 1,777 10,314 4,955 523 4,230 642 6,546 17 9,433 2,218 4,801 637 1,777 10,224 5,580 489 4,469 644 6,658 24 9,426 2,267 4,710 622 1,827 13,164 6,735 517 7,039 643 6,281 31 9,659 2,333 4,739 613 1,974 13,573 6,681 480 6,760 648 6,534 Nov. 7* 10,029 2,311 5,070 611 2,037 16,504 5,719 508 7,972 663 5,945 14* 9,790 2,368 4,803 601 2,018 13,296 7,197 511 6,431 662 5,636 21* 9,853 2.247 4,975 590 2,041 9,870 5,358 454 4,328 665 5,909 28* 9,760 2.248 4,878 594 2,040 11,711 5,387 539 6,308 668 5,804 Outside New York City 1972 Nov. 8 45,783 6,395 32,240 1,246 5,902 20,708 16,030 3,197 5,894 534 11,970 15 45,595 6,228 32,199 1,240 5,928' 19,609 12,717 3,378 6,616 536 11,708 22 45,799 6,245 32,385 1,224 5,945 19,005 14,643 3,316 5,757 536 11,669 29 45,872 6,186 32,483 1,227 5,976 17,588 13,408 3,901 5,800 539 11,778 1973 Oct. 3 48,311 5,395 33,717 1,530 7,669 21,836 17,311 3,535 6,019 690 14,409 10 48,501 5,359 33,848 1,589 7,705 22,335 12,451 3,706 6.945 693 14,279 17 48,091 5,173 33,723 1,536 7,659 21,595 18,120 3,726 5.946 768 13,952 24 48,762 5,337 33,852 1,591 7,982 20,205 18,202 3,861 6,122 772 13,936 31 49,438 5,345 34,144 1,628 8,321 20,853 18,356 3,799 6,302 692 14,465 Nov. 7* 49,437 5,438 34,117 1,601 8,281 20,344 15,221 3,447 6,342 692 14,654 14* 48,782 4,980 33,863 1,629 8,310 22,763 18,793 3,848 5,986 698 14,247 21* 48,784 4,933 33,995 1,603 8,253 21,830 18,180 3,567 6,248 730 14,124 28* 48,794 4,904 34,016 1,701 8,173 19,665 16,969 4,203 5,860 700 14,565 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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- 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 banks Large banks— Total 1972 106,703 6,555 2,784 23,394 864 836 3,233 7,473 157,864 58,218 72,462 18,085 2,835 5,701 Nov. 8 110,154 6,931 3,200 20,819 757 818 2,994 6,090 157,575 58,179 72,271 17,785 2,853 5,846 15 108,163 6,506 3,831 19,054 700 773 3,095 5,739 158,586 58,237 72,916 18,007 2,914 5,869 22 108,876 6,483 4,824 20,620 657 829 2,849 6,886 158,858 58,184 73,103 18,008 2,945 5,955 29 1973 110,371 6,317 5,512 21,246 899 952 3,654 7,063 189,784 56,172 96,585 22,598 6,036 7,968 Oct. 3 112,724 6,291 2,363 23,223 876 1,114 3,597 7,899 189,293 56,172 96,153 22,575 5,791 8,175 10 111,650 5,913 3,173 21,128 739 1,071 3,608 6,824 189,269 56,190 96,187 22,399 5,655 8,347 17 110,439 5,931 3,677 23,593 745 1,064 3,809 9,427 189,480 56,171 95,969 22,553 5,678 8,614 24 112,865 7,159 3,480 24,603 875 1,034 3,862 8,241 188,703 56,135 95,432 22,279 5,669 8,691 31 112,458 6,800 2,200 28,248 820 1,021 3,999 9,145 187,077 56,257 94,098 22,079 5,621 8,525 Nov. 7* 112,883 6,410 1,494 23,768 685 888 4,011 9,461 186,338 56,262 93,623 21,886 5,794 8,278 14* 111,914 6,450 2,424 21,189 629 954 3,835 5,885 186,468 56,315 93,872 21,670 5,815 8,310 21* 112,294 6,182 2,139 22,380 604 1,057 3,781 7,485 186,486 56,276 94,017 21,559 5,849 8,280 28* New York City 1972 22,764 394 536 10,768 429 687 2,391 3,953 27,529 5,644 15,285 2,095 1,577 2,829 .Nov. 23,636 398 874 8,987 390 655 2,164 2,453 27,078 5,644 14,966 1,934 1,600 2,835 .15 23,203 406 789 8,208 347 639 2,187 2,548 27,327 5,644 15,184 1,889 1,653 2,857 .22 24,238 362 974 10,077 326 690 2,003 3,355 27,458 5,640 15,202 1,914 1,667 2,936 .29 1973 23,642 552 1,074 9,469 504 779 2,576 3,256 34,934 4,948 20,004 2,103 4,036 3,762 • Oct. 3 23,938 419 444 10,543 476 947 2,539 3,405 34,792 4,941 19,912 2,109 3,839 3,905 10 23,383 352 610 10,076 383 889 2,556 3,233 34,717 4,932 20,057 1,925 3,728 3,999 17 23,897 358 706 12,457 364 905 2,757 5,967 34,621 4,934 19,863 1,987 3,697 4,058 24 24,648 821 603 13,234 389 880 2,818 4,574 34,711 4,939 19,732 1,986 3,762 4,212 31 25,728 464 477 15,684 400 863 2,981 5,430 34,056 4,966 19,110 2,074 3,736 4,091 .Nov. 7* 23,752 366 150 12,030 346 731 2,949 5,630 34,558 4,977 19,456 2,143 3,934 3,969 14* 23,851 433 458 9,890 323 804 2,763 2,402 34,952 4,961 19,699 2,148 4,039 4,028 21* 24,566 344 363 11,561 311 895 2,777 3,889 34,913 4,961 19,694 2,140 4,044 3,998 28* Outside New York City 1972 83,939 6,161 2,248 12,626 435 149 842 3,520 130,335 52,574 57,177 15,990 1,258 2,872 .Nov. 8 86,518 6,533 2,326 11,832 367 163 830 3,637 130,497 52,535 57,305 15,851 1,253 3.011 15 84,960 6,100 3,042 10,846 353 134 908 3,191 131,259 52,593 57,732 16,118 1,261 3.012 22 84,638 6,121 3,850 10,543 331 139 846 3,531 131,400 52,544 57,901 16,094 1,278 3,019 29 1973 86.729 5,765 4,438 11,777 395 173 1,078 3,807 154,850 51,224 76,581 20,495 2,000 4,206 .Oct. 3 88,786 5,872 1,919 12,680 400 167 1,058 4,494 154,501 51,231 76,241 20,466 1,952 4,270 .10 88,267 5,561 2,563 11,052 356 182 1,052 3,591 154,552 51,258 76,130 20,474 1,927 4,348 .17 86,542 5,573 2,971 11,136 381 159 1,052 3,460 154,859 51,237 76,106 20,566 1,981 4,556 .24 88,217 6,338 2,877 11,369 486 154 1,044 3,667 153,99J 51,196 .75,700 20,293 1,907 4,479 .31 86.730 6,336 1,723 12,564 420 158 1,018 3,715 153,021 51,291 74,988 20,005 1,885 4,434 .Nov. 7* 89,131 6,044 1,344 11,738 339 157 1,062 3,831 151,780 51,285 74,167 19,743 1,860 4,309 14* 88,063 6,017 1,966 11,299 306 150 1,072 3,483 151,516 51,354 74,173 19,522 1,776 4,282 21* 87,728 5,838 1,776 10,819 293 162 1,004 3,596 151,573 51,315 74,323 19,419 1,805 4,282 28* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS • DECEMBER 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed- Total time CD's Gross eral Other Total loans included in time liabili- Wednesday funds liabili- capital Total and De- and savings deposits 11 ties of pur- F.R. ties, Secur- loans invest- mand banks chased, Banks Others etc. 8 Loans ities (gross) ments deposits to etc. 7 ad- (gross) ad- Issued Issued their justed^ ad- justed io Total to to foreign justed9 IPC's others branches Large banks— Total 1972 Nov. 8 34,436 ,332 2,181 15,702 4,192 29,098 215,705 297,053 92,713 42,919 27,879 15,040 15 32,252 25 2,068 15,314 4,191 28,983 218,970 300,473 98,116 42,884 27,756 15,128 22 32,744 118 2,026 14,981 4,199 29,106 216,883 298,838 96,268 43,701 28,400 15,301 29 31,365 525 2,157 15,071 4,208 29,184 217,337 300,731 97,444 43,898 28,462 15,436 1973 Oct. 3 42,191 551 5,813 17,583 4,618 31,237 259,755 339,990 97,578 67,502 45,212 22,290 10 42,733 317 5,660 17,679 4,608 31,094 263,383 344,672 99,852 66,765 44,749 22,016 17 43,403 1,118 5,827 17.755 4.605 31,102 258,795 339,206 97,986 66,287 44,434 21,853 24 43,508 2,820 5,727 17,095 4.608 31,203 258,579 339,875 98,046 66,303 44,092 22,211 31 45,277 1,677 6,028 17.756 4,613 31,334 259,315 341,607 99,610 65,464 43,422 22,042 Nov. 7* 49,546 531 5,894 17,488 4,613 31,313 261,698 345,344 97,395 64,523 42,607 21,916 14* 51,676 3,699 5,645 17,223 4,613 31,359 259,760 342,461 98,279 63,876 42,032 21,844 21* 48,796 970 5,653 18,678 4.606 31,309 259,204 242,713 97,967 64,186 42,318 21,868 28* 48,415 1,025 5,507 18,654 4.609 31,401 260,150 343,042 100,027 64,262 42,588 21,674 New York City 1972 Nov. 8 8,603 413 588 5,645 1,228 7,351 49,173 63,562 18,375 14,843 10,160 4,683 15 8,552 523 5,954 1,229 7,336 50,112 64,688 19,677 14,430 9,859 4,571 22 8,243 528 5,468 1,234 7,447 49,371 64,154 19,627 14,786 10,167 4,619 29 7,731 270 598 5,626 1,234 7,462 49,365 64,398 19,426 14,800 10,105 4,695 1973 Oct. 3 9,129 10 2,585 5,997 1,320 7,902 59,576 72,867 21,467 21,096 13,300 7,796 10 9,854 2,338 5,833 1,320 7,785 60,912 74,717 21,410 20,860 13,266 7,594 17 9,943 2,451 5,987 1.323 7,868 59,552 73,239 20,572 20,569 13,241 7,328 24 11,322 860 2,299 5,535 1.324 7,861 59,971 73,758 21,084 20,529 13,074 7,455 31 11,491 180 2,419 6,138 1,324 7,911 60,347 74,593 20,557 20,384 12,844 7,540 Nov. 7* 13,092 2,417 5,744 1,324 7,901 62,023 76,942 19,362 20,026 12,443 7,583 14* 12,536 1,491 2,405 5,503 1,323 8,017 60,237 74,861 20,478 20,428 12,724 7,704 21* 10,286 325 2,482 6,274 1,320 8,009 59,819 74,701 20,706 20,850 12,964 7,886 28* 11,097 258 2,524 6,214 1,320 8,001 60,298 74,777 21,071 20,830 12,985 7,845 Outside New York City 1972 Nov. 8. 25,833 919 1,593 10,057 2.964 21,747 166,532 233,491 74,338 28,076 17,719 10,357 15. 23,700 25 1,545 9,360 2,962 21,647 168,858 235,785 78,439 28,454 17,897 10,557 22. 24,501 118 1,498 9,513 2.965 21,659 167,512 234,684 76,641 28,915 18,233 10,682 29. 23,634 255 1,559 9,445 2,974 21,722 167,972 236,333 78,018 29,098 18,357 10,741 1973 Oct. 33,062 541 3,228 11,586 3,298 23,335 200,179 267,123 76,1 46,406 31,912 14,494 32,879 317 3,322 11,846 3.288 23,309 202,471 269,955 78,442 45,905 31,483 14,422 33,460 1,118 3,376 11,768 3,282 23,234 199,243 265,967 77,414 45,718 31,193 14,525 32,186 1,960 3,428 11,560 3,284 23,342 198,608 266,117 76,962 45,774 31,018 14,756 33,786 1,497 3,609 11,618 3.289 23,423 198,968 267,014 79,053 45,080 30,578 14,502 Nov. 7*. 36,454 531 3,477 11,744 3.289 23,412 199,675 268,402 78,033 44,497 30,164 14,333 14*. 39,140 2,208 3,240 11,720 3.290 23,342 199,523 267,600 77,801 43,448 29,308 14,140 21*. 38,510 645 3,171 12,404 3,286 23,300 199,385 268,012 77,261 43,336 29,354 13,982 28*. 37,318 767 2,983 12,440 3,289 23,400 199,852 268,265 78,956 43,432 29,603 13,829 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. • Includes U.S. Govt, and foreign bank deposits, not shown separately. n 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

DECEMBER 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 Nov. Nov. Nov. Nov. Oct. 1st 2nd 28 21 14 7 31 Nov. Oct. Sept. III II I half half Durable goods manufacturing: Primary metals 1,956 1,985 1,990 1,975 1,978 -22 -78 73 18 -102 122 20 -79 Machinery 6,240 6,260 6,202 6,152 6,112 128 -423 179 479 645 808 1,453 395 Transportation equipment.. . 2,346 2,354 2,320 2,378 2,361 -15 -69 -77 272 32 32 64 -258 Other fabricated metal products. .. 2,326 2,362 2,334 2,316 2,308 18 -10 55 56 267 236 503 57 Other durable goods 33,,772299 33,,773366 33,,776688 33,,882233 33,,885555 -126 -211 162 290 323 549 872 69 Nondurable goods manufacturing: Food, liquor, and tobacco 3,895 3,891 3,759 3,728 3,677 218 -140 121 393 -194 171 -23 827 Textiles, apparel, and leather 3,340 3,398 3,469 3,478 3,475 -135 -184 15 235 275 455 730 -166 Petroleum refining 1,094 1,101 1,117 1,133 1,181 -87 -26 -38 19 -7 218 211 -14 Chemicals and rubber 2,470 2,489 2,521 2,525 2,559 -89 -155 69 48 63 746 809 -262 Other nondurable goods 22,,117711 22,,115588 22,,118866 22,,116666 22,,118855 -14 -25 76 156 157 203 360 30 Mining, including crude petroleum and natural gas 3,804 3,812 3,804 3,837 3,889 -85 -148 33 77 331 331 25 Trade: Commodity dealers 1,761 1,717 1,570 1,590 1,425 336 213 -92 -42 -603 63 -540 622 Other wholesale 5,323 5,334 5,415 5,409 5,348 -25 84 81 43 183 384 567 216 Retail 6,476 6,470 6,524 6,521 6,403 73 146 161 165 457 635 1,092 473 Transportation 5,799 5,787 5,865 5,847 5,824 -25 -126 22 66 283 11 294 -42 Communication 1,892 1,875 1,920 1,960 2,007 -115 -97 55 -13 79 179 258 424 Other public utilities 5,518 5,526 5,363 5,340 5,197 321 -84 598 734 670 291 961 939 Construction 5,577 5,591 5,606 5,612 5,648 -71 -156 -10 212 624 304 928 364 Services 10,711 10,646 10,607 10,553 10,515 196 24 103 362 455 542 997 494 All other domestic loans 7,865 7,811 7,825 7,863 7,835 30 -134 -24 380 782 972 1,754 239 Bankers' acceptances 1,218 11,,223322 11,,117722 11,,221111 1,233 -15 158 -68 -322 76 -230 -154 100 Foreign commercial and industrial loans 4,018 4,006 3,961 4,005 3,996 22 -54 -139 -384 -18 572 554 491 Total classified loans 89,529 89,541 89,298 89,422 89,011 518 -1,495 1,355 3,244 4,447 7,594 12,041 4,944 Total commercial and industrial loans of large commercial banks *107,425 f107,381 fl07,124 fl07,041 *106,699 726 -1,534 1,386 3,370 4,998 8,762 13,760 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 1973 IInndduussttrryy Nov. Oct. Sept. Aug. July June May Apr. Mar. 1st 28 31 26 29 25 27 30 25 28 III II I IV half Durable goods manufacturing: Primary metals 1,240 1,260 1,311 1,294 1,293 1,328 1,314 1,315 1,335 -17 -7 67 -35 60 Machinery 2,729 2,734 2,680 2,638 2,664 2,641 2,560 2,555 2,313 39 328 159 249 487 Transportation equipment. 11,,225511 11,,223333 11,,226611 11,,222266 11,,119933 11,,118899 11,,116688 11,,118800 11,,117744 72 15 -31 -102 -16 Other fabricated metal products 902 891 863 846 861 869 833 842 785 -6 84 65 41 149 Other durable goods 11,,774411 11,,778822 11,,777777 11,,773300 11,,772200 11,,669900 11,,559922 11,,661144 11,,552200 87 170 281 51 451 Nondurable goods manufacturing: Food, liquor, and tobacco. 11,,446666 11,,446655 11,,447722 11,,440055 11,,441100 11,,339933 11,,337722 11,,335555 11,,335500 79 43 116 155 159 Textiles, apparel, and leather 1,036 1,030 1,026 1,021 1,003 969 942 978 892 57 77 169 12 246 Petroleum refining 839 883 920 925 947 876 885 858 842 44 34 144 19 178 Chemicals and rubber 1,509 1,535 1,553 1,494 1,486 1,481 1,441 1,459 1,479 72 2 326 -6 328 Other nondurable goods.. 11,,005588 11,,007766 11,,009922 11,,006699 11,,005500 11,,006633 11,,006633 11,,110088 11,,110000 29 -37 206 -24 169 Mining, including crude petroleum and natural gas. 2,950 2,958 2,990 2,921 3,022 2,846 2,908 2,895 2,872 144 -26 187 6 161 Trade: Commodity dealers.. 135 120 116 115 178 123 139 136 150 -7 -27 29 14 2 Other wholesale 1,171 1,224 1,178 1,149 1,118 1,066 1,051 1,068 1,055 112 11 161 30 172 Retail 2,226 2,179 2,145 2,136 2,066 2,006 1,979 1,947 1,823 139 183 231 148 414 Transportation 4,199 4,214 4,272 4,287 4,255 4,305 4,161 4,202 4,234 -33 71 54 94 125 Communication 828 819 857 835 814 785 760 738 746 72 39 64 121 103 Other public utilities 3,114 2,853 2,829 2,671 2,548 2,409 2,328 2,343 2,234 420 175 259 287 434 Construction 1,935 1,952 1,992 2,000 2,009 1,896 1,852 1,800 1,709 96 187 151 8 338 Services 4,899 4,752 4,701 4,646 4,568 4,562 4,402 4,417 4.339 139 223 313 164 536 All other domestic loans .... 22,,661166 22,,555522 2,585 22,,445588 22,,338899 22,,220011 22,,118800 22,,006611 11,,887711 384 330 274 43 604 Foreign commercial and industrial loans 2,306 2,308 2,186 2,292 2,497 2,585 2,647 2,410 2,567 -399 18 201 223 219 Total loans *40,150 p39,820 *39,806 *39,158 *39,091 *38,283 p37,577 37,281 36,390 1,523 1,893 3,426 1,498 5,319 NOTE.—About 160 weekly reporting banks are included in this series; Commercial and industrial "term" loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount- an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article "Revised Series on Commercial apd 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 • DECEMBER 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) rype of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s in in a e n s c s i al Consumer Foreign o A th l e l r IPC A11 commercial banks: 1970—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 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 18.6 106.6 67.3 2.0 11.8 206.3 Sept 18.2 108.4 69.2 2.1 11.9 210.4 Weekly reporting banks: 1971 Dec 14.4 58.6 24.6 1.2 5.9 104.8 1972 Oct 14.1 60.0 26.2 1.3 6.1 107.8 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 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 Sept 14.5 60.6 27.2 1.9 6.5 110.8 Oct? 15.0 61.7 27.3 2.0 6.6 112.5 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 * 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-19, and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as "Other large" and "All other bottom of p. A-17. These changes resulted from a change in Federal member" parallel the previous "Reserve City" (other than in New York Reserve regulations. See June 1966 BULLETIN, p. 808. City and the City of Chicago) and "Country" categories, respectively These deposits have not been deducted from "Time deposits" and (hence the series are continuous over time). "Loans" for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • LOAN SALES BY BANKS; OPEN MARKET PAPER A 31 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1973—Aug. 1 4,120 2,479 1,641 1,694 294 1,400 8 4,142 2,443 1,699 1,795 380 1,415 15 4,527 2,723 1,804 1,792 381 1,411 22 4,602 2,708 1,894 1,738 327 1,411 29 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 26' , , 4,637 2,877 1,760 1,764 353 1,411 Oct. 3 4,723 2,893 1,830 1,760 356 1,404 10 4,606 2,784 1,822 1,806 351 1,455 17 4,538 2,782 1,756 1,788 351 1,437 24 4,518 2,825 1,693 1,774 338 1,436 31 4,645 2,857 1,788 rl,768 r333 rl,435 Nov. 7 4,317 2,591 1,726 1,772 343 1,429 14 ... 4,315 2,540 1,775 1,779 333 1,446 21 4,336 2,656 1,680 1,783 331 1,452 28 4,342 2,655 1,687 1,777 329 1,448 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—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,£ 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 4,810 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 Sept. 37,641 1,353 8,845 3,878 23,565 8,170 2,099 1,629 470 145 548 5,379 2,296 3,289 2,585 Oct.. 41,602 1,319 11,727 3,549 25,007 8,237 2,042 1,731 311 107 589 5,499 2,345 3,222 2,670 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 • DECEMBER 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Rate Effective date Rate Effective date Rate Effective date - M Ja a n r . . 7 7V 4 1972—Jan. 1 3 7 . . 4 4 5 % - y 51 - - 5 / 4 8 -5 - y 5 1 / 1 4 - " 4 5 . m 1 972—Sept. 4 5 . . 5K-5%• 1973—June 1 8 9 , June 9 81/2 2 3 4 1 . . 4i4 8 -43/4. 4 _5 2 1 5 1 . . 5 5 1 1 / 4 2 . - - - 5 5 5 5 / / 8 8 _ 25 -Mar. 8 53/4 July 2 Sept. 21 71/2 Feb. 28. 43/8-4^- 3, Nov. 12 71/4 43/4« Oct. 2. 9. 23 7 Mar. 13. 41/2-434, 4. 17. Dec. 22 63/4 23. 43/4- 11. 534- 18 27. 434.-4 7/8-5 16. 23 -Jan. 6 61/2 30 15 61/4 Apr. 434.-5 Nov. 6. 53/4" 6 5" 20. 53/4«-57/8 Aug. 6, Feb. 16 53,4 5--5V4 7, Mar. 11 51/4-51/2 Dec. 26. 534.-6 13 19 51/4 May 1.. 5._5I/8_51/4 27. 534-6. 21, 30.. 5- 22, Apr. 23 514-51/2 1973—Jan. 4. 28, May 11 51/2 June 12.. 5--51/8 29 July 6 51/2-6 26.. 5-51/4- Feb. 2. 66.-.6 14 7 6 14. Sept. 14 Oct. 20 53/4 July 3.. 5i/4--53/8 26. 6.-6 V4 18 10.. 514.-53/8- 27. 6%« 27 Nov. 4 8 1 5 5 51 1 3 / / / 2 2 4 " - - - - 5 55 y / 8 g 3 1 1 7 . . , 5 5 i 1 / 5 4 4 1 . « / - 2 - 5 5 3 i / /2 8 - Mar. 2 1 6 9 61/4--634 Oct. 2 2 4 2 22 53/8-51/2- 5 % 29 51/4-5 Vi" Aug. 11. 5V 4 m-5V 8 'Apr. 18 61/2-634. 14. 5i/4» 19 63/4. Dec. 6 514 5 - * 5 4 3 " / 8- 2 2 5 1 . . 5 5 1 1 / 4 4 . » - - 5 5 3 3 / / 8 s - May 4 63/4.-7 27 51/4-514- 51/i 7 7- 31 514- 29. 514-53/8- 24 25 7-71/4 • MOTE.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two tier or "dual prime rate keyed to money market variables. • denotes the predominate prime rate," this table shows only the "large-business prime rate." which is the rate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes -9 10-99 100-499 500-999 1,000 and over Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 Short-term 35 centers 9.24 7.35 8.95 8.05 9.25 7.85 9.50 7.61 9.31 7.35 9.14 7.19 New York City 9.08 7.04 8.93 8.05 9.32 7.76 9.37 7.38 9.20 7.14 9.03 6.97 7 Other Northeast 9.49 7.71 9.30 8.36 9.51 8.08 9.95 7.89 9.72 7.77 9.22 7.52 8 North Central 9.24 7.44 8.21 7.70 9.02 7.70 9.44 7.58 9.28 7.34 9.21 7.40 7 Southeast 9.25 7.37 8.85 8.03 9.07 7.80 9.23 7.53 9.02 7.11 9.48 7.16 8 Southwest 9.16 7.33 9.10 7.98 9.18 7.74 9.34 7.48 9.18 7.28 9.03 7.08 4 West Coast 9.25 7.25 9.67 8.31 9.48 7.98 9.46 7.71 9.33 7.28 9.17 7.06 Revolving credit 35 centers 9.22 7.14 9.48 7.89 9.46 7.82 9.34 7.45 9.32 7.25 9.19 7.17 New York City... 9.25 7.07 8.97 7.82 9.11 7.36 9.18 7.28 9.34 7.18 9.25 7.06 7 Other Northeast. 9.72 7.45 9.90 8.43 9.98 7.63 10.35 7.55 10.30 7.33 9.59 7.45 8 North Central... 9.44 7.40 9.55 8.15 9.34 7.85 9.17 7.57 9.42 7.24 9.48 7.39 7 Southeast 8.90 7.19 9.57 7.53 9.41 7.73 9.39 7.03 7.48 7.13 9.14 8 Southwest 9.72 7.79 8.78 7.75 9.34 7.83 9.54 8.11 10.11 7.54 9.64 7.79 4 West Coast 9.00 7.17 9.36 7.97 9.51 7.95 9.28 7.36 9.10 7.23 8.95 7.12 Long-term 35 centers 9.82 7.66 9.43 8.14 9.60 7.77 9.45 7.93 9.48 7.74 9.94 7.60 New York City. .. 9.96 7.30 8.75 7.20 9.69 7.45 9.27 7.55 9.63 7.70 10.03 7.25 7 Other Northeast. 9.87 8.17 9.68 8.55 9.79 7.68 9.56 8.12 8.68 7.95 10.24 8.28 8 North Central... 9.70 7.73 8.60 8.04 9.54 8.04 9.99 8.22 10.00 7.57 9.63 7.65 7 Southeast 8.44 8.39 9.16 7.18 8.97 6.92 6.12 8.50 11.25 9.39 9.37 8.58 8 Southwest 10.12 7.79 10.19 8.39 9.61 8.20 9.76 7.66 9.71 7.68 10.40 7.82 4 West Coast..... 9.71 7.69 9.97 8.73 9.58 7.95 9.57 7.66 9.25 7.57 9.80 7.71 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

DECEMBER 1973 • INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 PPrriimmee FFFiiinnnaaannnccceee ccoomm ppaa mm pp ee ee rr rr cc 11 iiaall pppaaa CCC ppp OOO... eee rrr bbbaaa PPP nnn rrr kkk iiimmm eeerrr eee sss ''' FFF eeerrr eee aaa ddd lll --- 3-month bills5 6-month bills5 9-to 12-month issues PPPeeerrriiioooddd ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee 333 yyeeaarr 90-119 4- to 6- 333--- tttooo 666--- 999000 dddaaayyysss iii 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 555555......555555555555 555555......444444222222 555555......333333666666 555555......111111111111 444444......888888888888111111 444444......888888666666 555555......000000888888222222 555555......000000666666 555555......000000777777 555555......111111777777 555555......111111666666 1967 555555......111111000000 444444......888888999999 444444......777777555555 444444......222222222222 444444......333333222222111111 444444......222222999999 444444......666666333333000000 444444......666666111111 444444......777777111111 444444......888888444444 555555......000000777777 1968 555555......999999000000 555555......666666999999 555555......777777555555 555555......666666666666 555555......333333333333999999 555555......333333444444 555555......444444777777000000 555555......444444777777 555555......444444666666 555555......666666222222 555555......555555999999 1969 777777......888888333333 777777......111111666666 777777......666666111111 888888......222222222222 666666......666666777777777777 666666......666666777777 666666......888888555555333333 666666......888888666666 666666......777777999999 777777......000000666666 666666......888888555555 1970 777777......777777222222 777777......222222333333 777777......333333111111 777777......111111777777 666666......444444555555888888 666666......333333999999 666666......555555666666222222 666666......555555111111 666666......444444999999 666666......999999000000 777777......333333777777 1971 555555......111111111111 444444......999999111111 444444......888888555555 444444......666666666666 444444......333333444444888888 444444......333333333333 444444......555555111111111111 444444......555555222222 444444......666666777777 444444......777777555555 555555......777777777777 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—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 Oct.. 9.14 8.92 7.84 9.07 10.01 7.155 7.22 7.259 7.32 7.17 7.42 6.81 Nov., 9.11 8.94 7.94 8.73 10.03 7.866 7.83 7.823 7.96 7.40 7.66 6.96 Week ending— 11997733——AAuugg.. 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 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 SSeepptt.. j 10.48 10.45 9.00 10.25 10.79 8.668 8.62 8.577 8.58 8.22 8.53 7.35 10.50 10.38 9.09 10.25 10.79 8.778 8.80 8.735 8.75 8.19 8.51 7.27 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 Oct. 6 9.58 9.38 8.10 9.50 10.72 7.149 7.42 7.584 7.59 7.52 7.66 6.89 13 9.47 9.13 8.00 9.28 9.87 7.323 7.14 7.259 7.32 7.26 7.46 6.77 20..... 9.25 9.03 7.80 9.00 10.07 7.188 7.16 7.242 7.24 7.15 7.40 6.80 27 8.66 8.56 7.66 8.81 9.98 6.959 7.07 6.951 7.09 6.85 7.26 6.80 Nov. 3 , . 8.55 8.28 7.50 8.50 9.90 7.196 7.38 7.263 7.43 6.99 7.32 6.83 10 . , 8.88 8.69 7.63 8.75 9.71 8.098 8.12 7.987 8.06 7.42 7.85 7.03 17 . 9.18 9.08 8.10 8.75 10.03 8.636 8.11 8.381 8.30 7.64 8.01 7.16 24 . 9.28 9.09 8.16 8.75 10.23 7.704 7.72 7.805 7.85 7.37 7.50 6.90 Dec. 1 9.25 9.10 8.05 8.75 10.09 7.695 7.52 7.679 7.77 7.29 7.36 6.79 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 • DECEMBER 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total 1 ( S t l e t o r a n m t g e ) s - Total i Aaa Baa New ce R n e t - ly Baa In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Pre- Com- Comissue offered ferred mon mon Seasoned issues 196 3 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 196 4 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 196 5 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 196 9 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.51 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—No v 5.50 5.11 4.91 5.37 7.09 7.21 7.52 7.12 7.99 7.28 7.95 7.55 6.93 2.73 Dec 5.63 5.13 4.91 5.39 7.15 7.21 7.47 7.08 7.93 7.22 7.91 7.48 6.92 2.70 5.46 1973—Ja n 5.94 5.13 4.90 5.39 7.38 7.37 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 6.10 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 6.94 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 Oct 6.26 5.03 4.76 5.31 7.90 7.94 7.96 7.60 8.41 7.76 8.24 8.04 7.18 3.05 Nov. ... 6.31 5.21 5.03 5.46 7.90 7.94 8.02 7.67 8.42 7.81 8.28 8.11 7.40 3.36 Week ending— 1973—Oct. 6. 6.27 5.03 4.70 5.40 7.75 7.90 7.98 7.59 8.44 7.78 8.27 8.06 7.19 3.06 13. 6.20 4.98 4.70 5.25 7.96 7.88 7.94 7.56 8.40 7.73 8.24 8.01 7.10 3.05 20. 6.27 5.02 4.75 5.30 7.99 7.98 7.94 7.58 8.40 7.73 8.23 8.02 7.08 3.03 27. 6.28 5.10 4.90 5.30 7.97 7.98 7.97 7.64 8.41 7.76 8.22 8.06 7.27 3.03 Nov. 3. 6.27 5.15 4.95 5.40 7.76 7.97 7.99 7.65 8.43 7.79 8.24 8.10 7.24 3.10 10. 6.33 5.24 5.05 5.50 8.00 8.03 8.01 7.67 8:43 7.80 8.27 8.11 7.31 3.17 17. 6.35 5.29 5.10 5.55 7.98 7.99 8.03 7.69 8.42 7.82 8.29 8.12 7.35 3.31 24. 6.29 5.20 5.05 5.45 7.86 7.86 8.02 7.68 8.42 7.81 8.29 8.12 7.44 3.41 Dec. 1. 6.27 5.16 5.00 5.40 7.85 7.87 8.01 7.64 8.42 7.81 8.30 8.09 7.51 3.55 Number of issues2.. . 12 20 121 20 30 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- only, based on Thurs. figures; from Moody's Investor Service. (3) 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 Through Aug. 1973 the index is based upon an initial value of 10.90— i Fees and charges—related to principal mortgage amount—include the average price of a share of stock listed on the American Stock Exchange loan commissions, fees, discounts, and other charges, which provide was $10.90 on June 30, 1965. As of Sept. 1973, a new market-value index added income to the lender and are paid by the borrower. They exclude with a starting value of 100.00 replaced the previous series. An index for any closing costs related solely to transfer of property ownership. past periods is being calculated on the new market-value basis and will be published as it becomes available. NOTE.—Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages NOTE.—Annual data are averages of monthly figures. Monthly and based on probability sample survey of characteristics of mortgages weekly data are averages of daily figures unless otherwise noted and are originated by major institutional lender groups (including mortgage computed as follows: U.S. Govt, bonds, derived from average market companies) for purchase of single-family homes. Data exclude loans for yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year refinancing, reconditioning, or modernization; construction loans to bond. Municipal and corporate bonds, derived from average yields as homebuilders; and permanent loans that are coupled with construction computed by Standard and Poor's Corp., on basis of a 4 per cent, 20- loans to owner-builders. Series revised beginning Jan. 1973; hence data are year bond; Wed. closing prices. Common stocks, derived from com- not strictly comparable with earlier figures. See also the table on Homeponent common stock prices. Average daily volume of trading, normally Mortgage Yields, p. A-53. conducted 5 days per week for 5*/£ hours per day, or 27 Vi hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- Mar. 1, 20; June 30-Dec. 31,22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- 22Vi; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 PPeerriioodd Standard and Poor's index New York Stoek 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 1963. 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 1964. 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 1965. 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 1966. 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 1967. 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968. 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1969. 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 1970, 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 1971 . 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4,234 1972. 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 27.00 16,487 4,447 1972--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--Jan 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 25.35 18.752 4,046 Feb 64.09 86.1 65.5 114.16 128.50 40.80 57.52 61.52 67.67 42.34 39.95 74.47 25.34 16.753 3,690 Mar 63.59 84.1 65.2 112.42 126.05 39.29 55.94 60.15 66.20 40.92 39.13 72.32 24.59 15,564 2,966 Apr 64.39 85.7 64.9 110.27 123.56 35.88 55.34 58.67 64.41 40.57 38.97 69.42 24.02 13,900 2,981 May 63.43 86.1 64.7 107.22 119.95 36.14 55.43 56.74 62.22 36.66 39.01 65.33 23.12 15,329 3,043 June 62.61 85.8 64.4 104.75 117.20 34.35 54.37 55.14 60.52 33.72 37.95 63.52 22.44 12,796 2,316 July 60.87 83.2 63.8 105.83 118.65 35.22 53.31 56.12 61.53 34.22 37.68 68.95 22.89 14,655 2,522 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 Oct 63.13 86.9 62.1 109.84 123.42 38.24 53.22 59.26 65.29 39.03 37.47 74.98 107.97 18,387 3,388 Nov 62.71 85.6 62.1 102.03 114.64 39.74 48.30 54.59 60.15 36.31 34.73 67.85 99.91 19,044 3,693 Week ending— 1973--Nov. 3 63.02 85.8 62.4 108.71 122.22 38.73 51.88 58.49 64.58 38.34 36.61 73.30 108.28 17,343 2,838 10, . . 62.50 85.8 62.1 105.72 118.77 40.03 50.38 56.74 62.61 37.71 35.81 70.37 104.60 17,422 2,907 17 62.33 84.8 62.0 103.51 116.36 40.46 48.61 55.37 61.09 36.88 34.92 68.72 101.23 21,865 3,836 24 62.88 86.0 62.2 99.64 111.96 39.20 47.00 53.16 58.52 35.15 34.02 66.28 96.46 19,098 3,312 Dec. 1 63.01 85.8 62.2 96.64 108.50 39.60 45.74 51.53 56.61 34.66 33.40 63.98 93.59 18,764 3,281 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes c C t ( r r e p a o a n e t n c r e t - t ) c F c h ( e e a p n e r e s t g r )* & es 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 o P 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 e t 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 n r t 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—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 77.7 35.6 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 26.7 76.7 38.6 28.9 7.87 .92 23.4 75.6 32.0 23.6 Sept.. 7.98 1.19 26.6 77.3 37.2 28.2 8.10 .97 23.1 74.1 32.8 23.5 Oct.' 8.12 1.20 26.1 76.9 38.5 29.0 8.35 .92 22.5 72.7 31.8 22.6 Nov.. 8.19 1.06 26.1 75.3 38.9 28.8 8.40 .94 22.5 71.3 32.9 23.0 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT • DECEMBER 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 Cash accts. accts. 1972—Sept.. 9,091 8,083 ,008 7,800 937 248 54 35 1,871 1,255 380 1,677 Oct... 9,024 8,081 943 7,800 872 250 53 31 1,875 1,351 389 1,708 Nov.. 9,068 8,166 902 7,890 831 249 52 27 1,871 1,396 390 1,828 Dec.. 9,045 8,180 865 7,900 798 254 50 26 1,896 1,528 414 1,957 1973—Jan... 8,840 7,975 865 7,700 796 249 48 26 1,940 1,484 413 1,883 Feb... r8,640 r7,773 867 7,480 800 248 50 25 1,954 1,508 431 1,770 Mar.. r8,347 r7,468 879 7,197 813 244 48 24 1,917 1,566 442 1,719 Apr.. 8,165 7,293 872 7,040 804 232 49 21 1,969 1,482 389 1,536 May. 7,650 6,784 866 6,540 802 224 47 20 2,010 1,502 413 1,564 June. 7,287 6,416 871 6,180 800 215 53 21 1,964 396 1,472 July.. 6,243 6,010 216 17 379 1,542 Aug.. 6,056 5,830 210 16 348 1,462 Sept.. 5,949 5,730 204 15 379 1,632 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 EEnndd ooff ll (( dd ii mm oo eebb nn iill tt ss -- End of period c N re e d t i t in debi t status b T a o la ta n l c e ppeerriioodd ooff 80 or Under status 60 per cent Less than (millions ddooll-- more 70-79 60-69 50-59 40-49 40 or more 60 per cent of dollars) llaarrss))!! 33.7 53.8 12.5 6,000 1972—Oct... 7,800 5.5 8.1 13.6 30.8 25.0 17.0 33.3 53.4 13.3 5,950 Nov.. 7,890 6.0 9.4 16.6 35.1 20.5 12.4 33.6 54.5 11.8 6,140 Dec.. 7,900 6.5 8.6 17.6 31.9 20.3 15.0 34.4 52.9 12.7 6,100 1973—Jan.. 7,700 5.8 8.2 16.8 27.8 21.2 20.0 1973—Jan 35.1 51.7 13.1 5,850 Feb.. 7,500 5.3 7.8 14.7 23.9 22.5 25.6 Feb 35.8 49.8 14.4 5,770 Mar.. 7,200 5.7 7.5 15.9 23.1 22.7 25.1 36.3 47.9 15.7 5,790 Apr.. 7,040 4.8 7.3 13.4 19.8 22.4 32.4 35.3 46.9 18.0 5,660 May. 6,540 4.9 7.2 12.7 18.7 21.9 34.9 35.8 45.0 19.1 5,670 June. 6,180 4.9 7.1 13.2 17.5 22.1 35.3 35.8 43.5 20.7 5,750 July.. 6,010 5.8 8.8 17.7 22.7 25.3 19.7 July 35.9 46.7 17.4 5,740 Aug.. 5,830 5.0 8.4 16.4 19.6 24.2 26.4 35.9 45.6 18.5 5,650 SSeepptt.... 55,,773300 1188..99 2233..99 2233..55 1166..88 37.4 53.1 9.4 5,740 1 See note 1 to table above. NOTE.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional NOTE.—Each customer's equity in his collateral (market value of col- purchases. Balances may arise as transfers based on loan values of other lateral less net debit balance) is expressed as a percentage of current col- collateral in the customer's margin account or deposits of cash (usually lateral values. sales proceeds) occur. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities TTToootttaaalll MMoorrttggaaggee llooaann aaasssssseeetttsss——— ccoommmmiittmmeennttss 33 EEEnnnddd ooofff pppeeerrriiioooddd MM ggaa oo gg rr ee tt -- OOtthheerr GG UU oo .. vv SS tt .. .. gg SS ll aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. oo CC tt rr aa oo hh aa nn rr ee tt dd pp ee rr oo ii -- CCCaaassshhh OOO aaasss ttt sss hhh eee eee ttt rrr sss g l g l g l rrr iii TTT eee eee aaa aaa ttt sss nnn ooo bbb iii nnn eee eee eee ttt iii rrr ddd sss rrr aaa lll vvv iii aaa lll --- eee lll DDDeee iiittt ppp sss ooo 222 sss--- lll OOO iiiaaa ttt ttt iii bbb hhh eee iii sss eee lll rrr iii--- GGG rrr ccc eee ooo eee aaa sss nnn uuu eee ccc eee nnn rrr --- rrr vvv ttt aaa sss eee lll ccllaassssii (( ff ii ii nn ee dd mm bb oo yy nn tt mm hh aa ss)) tt uurriittyy aaacccccctttsss... 3 or 3-6 6-9 Over Total less 9 1 1965 444444,,,444333333 888666222 555,,,444888555 333222000 555,,,111777000 111,,,000111777 999444444 555888,,,222333222 555222,,,444444333 111,,,111222444 444,,,666666555 222,,,666999777 1966 444777,,,111999333 111,,,000777888 444,,,777666444 222555111 555,,,777111999 999555333 111,,,000222444 666000,,,999888222 555555,,,000000666 111,,,111111444 444,,,888666333 222,,,000111000 196 7 555000,,,333111111 111,,,222000333 444,,,333111999 222111999 888,,,111888333 999999333 111,,,111333888 666666,,,333666555 666000,,,111222111 111,,,222666000 444,,,999888444 742 £) 82 799 222,,,555222333 196 8 555333,,,222888666 111,,,444000777 333,,,888333444 111999444 111000,,,111888000 999999666 111,,,222555666 777111,,,111555222 666444,,,555000777 111,,,333777222 555,,,222777333 811 M )34 1,166 333,,,000111111 196 9 555555,,,777888111 111,,,888222444 333,,,222999666 222000000 111000,,,888222444 999111222 111,,,333000777 777444,,,111444444 666777,,,000222666 111...555888888 555,,,555333000 584 485 452 946 222,,,444666777 197 0 555777,,,777777555 222,,,222555555 333,,,111555111 111999777 111222,,,888777666 111,,,222777000 111,,,444777111 777888,,,999999555 777111,,,555888000 111,,,666999000 555,,,777222666 619 322 302 688 111,,,999333111 197 1 666222,,,000666999 222,,,888000888 333,,,333333444 333888555 111777,,,666777444 111,,,333888999 111,,,777111111 888999,,,333666999 888111,,,444444000 111,,,888111000 666,,,111111888 1,047 627 463 1,310 333,,,444444777 19724 666777,,,555666333 222,,,999777999 333,,,555111000 888777333 222111,,,999000666 111,,,666444444 222,,,111111777 111000000,,,555999333 999111,,,666111333 222,,,000222444 666,,,999555666 1,593 713 609 1,624 444,,,555333999 1972—Sept.. . 666555,,,999000111 333,,,666000444 333,,,444000888 888222222 !!!222111,,,555666999 111,,,333666222 111,,,888333444 999888,,,555000000 888999,,,222888999 222,,,444222888 666,,,777888444 1,740 716 583 1,637 444,,,666777555 Oct 666666,,,333777333 333,,,444888222 333,,,444666222 888444444 222111,,,555111333 111,,,333000444 222,,,000111111 999888,,,999999000 888999,,,666777777 222,,,555111000 666,,,888000333 1,667 718 617 1,660 444,,,666666222 Nov.. . 666666,,,888999111 333,,,555000777 333,,,444333444 888777111 222111,,,666666444 111,,,333222333 222,,,000111444 999999 ---777000444 999000,,,222222888 222,,,666000777 666,,,888777000 1,624 753 631 1,658 444,,,666666666 Dec 666777,,,555666333 222,,,999777999 333,,,555111000 888777333 222111,,,999000666 111,,,666444444 222,,,111111777 111000000///555999333 999111,,,666111333 222,,,000222444 666,,,999555666 1,593 713 609 1,624 444,,,555333999 1973—Jan.... 666888,,,000222111 333,,,666222444 333,,,444888999 999333555 222222,,,111999000 111,,,333111999 222,,,000555555 111000111,,,666333222 999222,,,333999888 222,,,222222111 777,,,000111444 1,569 915 688 1,541 444,,,777111222 Feb.... 666888,,,333555222 444,,,000333000 333,,,444111999 999888666 222222,,,333888999 111,,,333333111 222,,,000777000 111000222,,,555777777 999222,,,999444999 ''' 222,,,555444000 777,,,000888888 1,729 862 732 1,480 444,,,888000333 Mar... 666888,,,999222000 333,,,999777000 333,,,444555888 111,,,000222888 222222,,,555000999 111,,,555777666 222,,,000555888 111000333,,,555111888 999444,,,000999555 222,,,222888555 777,,,111333999 1,816 886 826 1,355 444,,,888888222 Apr.... 666999,,,444222666 333,,,888333111 333,,,333888888 111,,,000888000 222222,,,555999888 111,,,555888222 222,,,000888999 111000333,,,999999444 999444,,,222111777 222...555888999 777,,,111888999 1,904 888 725 1,395 444,,,999111222 May... 666999,,,999888888 444,,,000999999 333,,,333777666 111,,,000777666 222222,,,666111555 111,,,666222999 222,,,111111666 111000444,,,888999999 999444,,,777444444 222,,,999000444 777,,,222555111 1,792 913 712 1,406 444,,,888222444 June... 777000,,,666333777 333,,,999555999 333,,,333444666 111,,,111222555 222222,,,555666222 111,,,777777555 222,,,222777333 111000555,,,666777777 999555,,,777000666 222,,,666555000 777,,,333222111 1,711 1,020 573 1,378 444,,,666888333 July... 777111,,,222111999 333,,,888111999 333,,,111999000 111,,,000999333 222222,,,666888333 111,,,555555555 222,,,222000222 111000555,,,777666111 999555,,,333555555 333,,,000444444 777,,,333666222 1,626 906 636 1,367 444,,,555333555 Aug.... 777111,,,777111333 333,,,999888666 333,,,000333777 999999999 222222,,,222777777 111,,,555555111 222,,,222222777 111000555,,,777888999 999444,,,888888222 333,,,444999666 777,,,444111111 1,302 840 718 1,315 444,,,111777444 Sept.. . 777222,,,000333444 444,,,222000000 222,,,999444555 999555777 222111,,,777999999 111,,,444999111 222,,,333444555 111000555,,,777777111 999555,,,111888333 333,,,111333444 777,,,444555333 1,411 762 589 1,197 333,,,999555999 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 n&t 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 INSURAIN E COMPANIES (In millio of dollars) Government securities Business securities End of period a T s o s t e a t l s 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 M ga o g r e t s - e R st e a a t l e P lo o a li n c s y Statement value 196 5 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 196 6 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 196 7 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 196 8 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 Book value: 196 6 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 196 7 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 196 8 188,636 10,760 4,456 3,206 3,098 79,653 68,731 10,922 70,044 5,575 11,305 196 9 197,208 10,914 4,514 3,221 3,179 84,566 70,859 13,707 72,027 5,912 13,825 197 0 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16.064 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17.065 1972* 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 1972—Aug.r. 233,540 11,318 4,596 3,361 3,361 109,879 84,990 24,889 75,525 7,246 17,691 Sept... 234,455 11,125 4,385 3,350 3,390 '10,300 85,912 24,388 75,813 7,245 17,773 Oct... 235,972 11,132 4,396 3,347 3,389 111,616 86,874 24,742 75,952 7,229 17,854 Nov... 237,971 11,193 4,459 3,356 3,378 113,066 87,425 25,641 76,207 7,272 17,922 Dec... 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 1973—Jan.. . 241,022 11,191 4,389 3,358 3,444 114,526 88,371 26,155 77,481 7,366 18,080 Feb... 242,069 11,138 4,371 3,319 3,448 115,386 89,247 26,139 77,510 7,434 18,166 Mar... 243,078 11,154 4,417 3,300 3,437 15,972 89,881 26,091 77,587 7,449 18,288 Apr... 242,562 11,455 4,566 3,388 3,501 115,181 89,710 25,471 77,258 7,522 18,420 May.. 243,589 11,434 4,538 3,384 3,512 115,897 90,314 25,583 77,400 7,545 18,533 June.. 244,531 11,359 4,468 3,373 3,518 16,153 90,484 25,669 77,914 7,548 18,673 July... 247,082 11,427 4,480 3,427 3.520 118,061 91,144 26,917 78,243 7,577 18,841 Aug... 247,655 11,416 4,462 3,433 3.521 117,842 91,342 26,500 78,657 7,632 19,181 i 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 • DECEMBER 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Liabilities Mortgage Total loan comassets— mitments End of period M ga o g r e t s - I s i n m e t v i c e e e u 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 o n r e e - d y 4 Loans Other ou a p t t s e e t r a n i n d o d d o i 5 n f g 196 7 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 3,042 196 8 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 196 9 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 197 0 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 197 1 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 1972—Oct.. 200,554 24,648 12,457 237,659 202,012 15,485 8,327 6,086 5,749 12,226 Nov.. 203,266 24,750 12,689 240,705 203,889 15,992 8,503 6,067 6,254 12,274 Dec.. 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 11,578 1973—Jan.. 208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 12,469 Feb.. 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 6,766 13,538 Mar.. 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 14,508 Apr.. 216,250 23,943 17,605 257,798 217,026 16,133 11,336 6,548 6,755 15,009 May. 219,500 24,072 17,990 261,562 218,906 16,505 11,756 6,727 7,668 15,139 June. 222,801 23,362 18,038 264,201 222,183 16,315 12,766 6,770 6,167 14,776 July. 225,490 22,769 18,416 266,675 221,958 16,640 14,295 6,702 7,080 13,778 Aug.. 228,006 21,139 18,826 267,971 220,800 16,986 15,703 6,464 8,018 12,314 Sept., 229,413 20,161 19,131 268,705 222,645 16,872 16,324 6,078 6,786 10,861 Oct.* 230,451 20,809 19,411 270,671 223,600 17,157 16,509 5,540 7,865 9,949 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 period v m a b A t n e e o d m r c - s e - s I m nv e e n s t t s - p C a o d a n s e s i d - h t s B n a o o n n t d e d s s p M o b d e s e e m i r - t s - C s a to p c it k a l M l g o ( a A a o g n r ) e t s - D n t e a ( u o b L n r t e d ) e e n s s - c L a o ( t o o t i A p a o v ) e n e r s s - D t e u ( b L r e e ) s n - c L o a d ( o u A n i a s n d ) n - t s s D t e u ( b L r e e ) s n - M l g o ( a A a o g n r ) e t s - B ( o L n ) d s 196 7 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 4,904 196 8 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 5,399 196 9 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 5,949 197 0 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 6,395 197 1 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—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 i;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 Sept.. 14,298 2,908 102 14,062 1,178 2,089 22,826 21,537 2,738 2,560 8,016 6,833 10,592 9,388 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

DECEMBER 1973 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, SEPTEMBER 30, 1973 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 12/10/70 - 12/10/73.. 5.75 500 4/2/73 - 10/1/73 6.95 9/21/73 - 1/25/74. 9H 500 8/10/71 - 12/10/73.... 7.15 500 5/1/73 - 11/1/73 6.75 6/26/70 -- 22//2255//7744 8.40 250 12/1/71 - 3/11/74. 5.45 400 6/4/73 - 12/3/73 6.85 8/27/71 - 2/25/74 7.10 300 4/10/70 - 3/11/74.... 7.75 350 7/2/73 - 1/2/74 7.55 6/25/71 -5/25/74 6.35 300 8/5/70 - 6/10/74 7.90 400 8/1/73 - 2/4/74 8.70 2/26/73 - 5/28/74 6.45 700 11/10/71 -6/10/74.... 5.7P 350 8/25/69 - 8/25/74 7.65 176 9/10/69 - 9/10/74.. . . 7.85 250 8/25/72 - 8/26/74 5 n 400 2/10/71 - 9/10/74 5.65 300 Federal intermediate 8/27/73 - 8/26/74 9 Ys 800 5/10/71 - 12/10/74.... 6.10 250 credit banks 11/25/69 - 11/25/74... 8.00 221 9/10/71 - 12/10/74.... 6.45 450 Debentures: 5/25/73 - 11/25/74 7.05 1,000 11/10/70 - 3/10/75... 7.55 300 1/2/73 - 10/1/73 5.70 1/26/71 - 2/25/75 6.10 250 10/12/71 - 3/10/75... 6.35 600 2/1/73 - 11/1/73 6.00 11/27/72-2/25/75 5% 400 4/12/71 -6/10/75 5.25 500 3/1/73 - 12/3/73 6.15 9/21/73 - 2/25/75 8.20 500 10/13/70 - 9/10/75... 7.50 350 4/2/73 - 1/2/74 7.00 8/25/70 - 5/26/75 8.05 265 3/12/73 -9/10/75 6.80 650 7/1/71 - 1/2/74 6.85 7/27/70 - 8/25/75 7.95 300 3/10/72 - 12/10/75... 5.70 500 5/1/73 -2/4/74 6.90 4/12/73 - 5/25/75 7.15 700 9/10/73 - 12/10/75.... 8.25 300 6/4/73 - 3/4/74 7.00 7/25/73 -8/25/75 7% 500 3/11/71 - 3/10/76 5.65 500 7/2/73 -4/1/74 12/18/70- 11/25/75.... 6.50 350 6/12/73 -3/10/76 7.13 400 8/1/73 - 5/1/74 8.65 5/25/73 - 11/25/75 7.05 600 6/10/71 -6/10/76 6.70 250 9/4/73 - 6/3/74 8/27/71 -2/25/76 7H 300 2/10/72-6/10/76 5.85 450 1/4/71 - 7/1/74 5.95 8/27/73 - 2/25/76 8% 300 11/10/71 -9/10/76.... 6.13 300 5/1/72 - 1/2/75 6.05 7/25/73 - 8/25/76 7.80 500 6/12/72 - 9/10/76 5.85 500 1/3/72-7/1/75 5.70 6/25/71 - 5/25/77 6.95 200 7/12/71 - 12/10/76.... 7.45 300 3/1/73 - 1/5/76 6.65 6/22/73 - 5/22/77 7.20 600 12/11/72- 12/10/76... 6.25 500 77//22//7733 -- 11//33//7777 7.10 4/12/73 - 8/25/77 7.15 300 2/13/62 - 2/10/77.... 4 Vi 198 2/26/73 - 11/25/77 6% 300 9/11/72-3/10/77 6.30 500 Federal land banks 9/21/73 - 5/25/78 7.60 500 12/10/70 - 6/10/77. .. 6.38 250 Bonds: 3/25/70 - 2/25/80 7.75 350 5/10/71 -6/10/77 6.50 150 2/20/63 - 2/20/73-78... 4^ 10/15/70- 10/15/80.... 7.80 200 9/10/71 -9/12/77 6.88 300 4/20/70 - 10/22/73 7.80 10/27/71 - 11/27/81... 6.60 200 9/10/73 - 9/12/77 7.85 400 10/23/72 - 10/23/73 5.80 4/12/73 - 5/25/83 7.30 200 7/10/73 - 12/12/77.... 7.25 500 7/20/72 - 1/21/74 5.55 8/27/73 - 5/25/83 9 y4 700 6/12/73 -6/12/78 7.15 600 2/20/72 - 2/20/74 4% 10/12/71 - 12/11/78.. 6.75 300 10/20/70 - 4/22/74 7.30 Federal Home Loan 6/12/72-9/10/79 6.40 300 9/15/72-4/22/74 5.85 Mortgage Corporation 9/10/73 - 9/12/79 7.85 300 10/21/71 - 7/27/74 S85 Bo 8 2 7 5 5 1 n / / / / / 1 d 2 1 1 1 1 / / 5 s 0 1 1 1 7 : / / / 1 9 / 7 7 7 7 1 2 2 / - 7 2 - - - - 0 8 2 1 - 5 8 1 / / / / 2 2 / 1 2 2 2 5 6 1 6 6 6 / / / / / / 7 9 9 7 2 7 7 6 7 4 3 7 /95.... 6 6 8 7 7 5 . . . . . . 1 7 1 7 6 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 6 2 2 2 1 1 1 / / / / / 2 2 2 1 1 1 1 / / 6 6 9 0 1 6 1 0 / / / / / 1 7 7 7 7 7 /7 3 3 2 3 2 /7 1 - - - - - 2 7 - - 7 3 1 / 1 3 / / / 1 0 2 3 1 1 1 2 9 1 0 / 2 / 3 / / / / 8 8 1 / 8 8 0 1 0 1 0 0 0 / 0 8 /8 / 0 7 0 . 9 . . . . . . . . 4 6 6 6 6 5 3 . . . . . . . 5 1 9 8 1 1 6 5 5 6 8 8 9 0 2 3 3 1 5 5 0 5 0 0 0 9 6 5 1 4 4 2 4 4 2 2 7 7 / // / // / / / 2 22 2 2 22 2 1 00 3 0 0 0 00 5 // / / / / // / 77 7 7 7 6 77 7 11 1 3 3 5 00 2 - - -- - - -- 4 7 11 1 1 / / 4 11 2 2 0 / 00 / 2 // / // 1 2 1 22 0 2 22 1 / / 00 / 0 11 7 7 7 / // / // 7 5 77 5 5 7 77 5 55 5 44 4 5 7 8 7 7 5 ^ ^ . . . . . 1 6 3 2 7 5 5 0 0 0 federal National Mortgage 3/12/73 - 3/10/81 7.05 350 44//2200//7722 -- 11//2200//7766 614 Association— 4/18/73-4/10/81 6.59 26 22//2211//6666 -- 22//2244//7766 5.00 Secondary market 3/21/73-5/1/81 4.50 18 1/22/73 - 4/20/76 6^ operations 3/12/73 - 5/1/81 5.77 2 7/20/66 - 7/20/76 5H Discount notes 1,638 1/21/71 - 6/10/81.... 7.25 250 4/23/73 - 10/20/76 7.15 Capital debentures: 9/10/71 -9/10/81 7.25 250 7/20/73 - 7/20/77 9/30/68 - 10/1/73 6.00 250 6/28/72-5/1/82 5.84 58 10/27/71 - 10/20/77 «5 4/1/70 - 4/1/75 8.00 200 2/10/71 - 6/10/82 6.65 250 5/2/66 - 4/20/78 9/30/71 - 10/1/96 4.38 248 9/11/72 - 9/10/82 6.80 200 7/20/72 - 7/20/78 6.40 10/2/72- 10/1/97 7.40 250 3/11/71 -6/10/83 6.75 200 2/20/67- 1/22/79 5.00 6/12/73 -6/10/83 7.30 300 9/15/72-4/23/79 6.85 Mortgage-backed bonds: 11/10/71 -9/12/83.... 6.75 250 10/23/72 - 10/23/79 6.80 6/1/70 - 6/2/75 8.38 250 4/12/71-6/11/84 6.25 200 1/22/73 - 1/21/80 6.70 3 3 / / 1 1 4 4 / / 7 7 3 3 - - 1 1 / / 1 1 5 5 / / 8 8 1 1 3 5 . . 5 4 8 8 53 6 3 1 / 2 1 /1 0 0 /7 /7 2 1 - - 3 1 /1 2 0 /1 / 0 9 / 2 8 . 4 .. . . . 7 6 . . 0 9 0 0 2 2 5 0 0 0 2 7 / / 2 2 3 0 / / 7 7 1 3 - - 4 7 /2 /2 0 1 / / 8 8 1 0 6 m . 70 6/21/73 - 7/1/82 5.85 72 6/12/72-6/10/92 7.05 200 4/20/72 - 4/20/82 6.90 6/21/73 - 7/1/82 5.92 35 12/11/97- 12/10/97. .. 7.10 200 4/23/73 -4/20/82 7.30 3/1/73-8/31/84 5.50 10 3/1/73-10/31/84 5.49 21 3/1/73 - 3/1/86 5.74 81 9/29/70- 10/1/90 8.63 200 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 • DECEMBER 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 Period Budget Net Budget surplus Less: Invest- Net lend- out- or Public Plus: ments by Govt, Equals: Trea- Budget ex- ing lays i deficit debt Agency accounts Less: Total sury receipts pendi- (-) securi- securi- Special borrow- operat- Other 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 -581 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 197 3 r232,225 r246,526 — 14,301 30,881 216 12,029 -207 19,275 2,459 -1,613 Half year: 1971—July-Dec. 93,180 110,608 948 111,554 -18,374 26,001 ,117 2,803 523 21,561 973 80 1972—Jan.-June 115,549 120,319 -4,850 3,130 -150 4,010 1,089 -2,114 389 1,028 July-Dec. 106,061 118,586 -12,525 22,037 876 r6,239 -861 17,386 r956 1,525 1973—Jan.-June r126,164 r127,940 '-1,776 8,844 -660 5,790 654 1,889 1,503 Month: 1972—Oc t r14,633 '20,057 -5,425 6,000 24 3,085 r87 2,851 -1,786 r —30 Nov 16,748 21,165 -4,418 4,301 380 -659 42 5,298 305 7 Dec 18,972 19,721 -750 5,051 -93 1,104 -343 4,197 2,795 57 1973—Ja n 21,130 23,631 -2,501 770 18 -900 168 1,519 302 99 Feb 18,067 20,227 -2,160 4,770 -9 780 119 3,863 408 -212 • Mar 15,987 20,806 -4,820 3,768 27 584 206 3,005 1,152 -83 Apr...... 25,860 22,306 3,554 -1,543 -721 -56 -49 -2,159 1,220 1,164 May 16,584 20,157 -3,573 275 -43 1,968 234 -1,970 -5,924 -1,141 June 28,504 20,892 7,612 803 68 3,414 -174 -2,369 4,344 414 July 18,121 22,627 -4,486 862 9 1,258 325 -713 -5,398 -544 Aug 21,291 22,139 -847 2,842 301 3,137 568 -563 -4,105 151 Sept 25,007 20,736 4,271 -406 40 -756 -173 564 5,207 346 Oct. 17,637 23,092 -5,455 1,037 29 -306 -22 1,395 -2,588 -43 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 ep r th i 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 S i p s G I s e n u c o v e i v a s e t l s , tm ac e c n o t O u s n t o h t f s e r S n L p o e e t c s e s i s a : 3 l E p T h q u b o e u b y t l l a d a i l l c s : 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 11,306 424,131 11,044 85,544 22,922 825 325,884 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 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 24,536 825 341,769 1,626 6,582 71 8.279 461,439 11,459 105,378 24,362 825 342.333 1,839 3,781 71 5,691 462,476 11,488 105,071 24,341 823 343,727 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

DECEMBER 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 i e o t l n h d - - fu R n e d - s t N ot e a t l G ce r r i e p o - t s s s fu R n e d - s c E t o P r a n m t a o x a t y l e p r x l - s i e l b o s y u e a m t S m n i e o e d l p n n f l - s t . 1 i e n U m s n u p - r l. . c O e n r i t p e h e - t t e s r 2 t N ot e a t l E ta x x c e is s e t C o u m s s - E a g s n i t f a d t t e c M e r ip i e s - t c s . * 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 3,633 197 3 232,225 98,093 27,019 21,866 103,r'~ 39,045 2,893 52,505 2,371 6,051 3,614 64,542 16,260 3,188 4,917 3,921 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 126,165 52,034 21,235 21,179 52,091 23,730 1,434 30,013 2,206 3,616 1,841 37,675 8,016 1,637 2,584 1,865 Month: 1972—Oc t r14,633 r7,181 469 61 '7,590 1,287 323 '3,224 15 '209 311 '3,758 1,387 281 409 '244 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 1,316 444 302 6,359 1,318 262 330 348 May 16,584 8,813 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June 28,537 9,168 3,735 597 12,306 8,983 188 4,548 145 95 293 5,081 1,386 273 335 360 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 Sept 25,007 7,940 3,903 135 11,707 5,477 230 4,812 177 103 317 5,409 1,436 238 373 597 Oct 17,637 8,752 550 71 9,230 1,515 462 4,119 24 217 351 4,712 1,459 291 454 437 Budget outlays Com. Gen- Na- Nat- Com- mun. Educa- eral Intra- Period tional Intl. Space Agri- ural merce deve- tion Health Vet- Inter- Gen- reve- govt. Total de- affairs re- cul- and lop, and and erans est eral nue transfense search ture 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 1973' 246,526 76,027 3,182 3,311 6,051 556 12,520 4,162 10,821 91,230 12,004 22,785 5,619 6,636 -8,378 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 -4,039 1973—Jan.-June'. 127,940 40,677 1,542 1,635 1,435 227 6,320 1,525 5,< 48,018 6,264 12,181 2,749 4,019 -4,339 Month: 1972—Oc t '20,057 6,305 259 271 806 '-17 1,056 244 800 7,688 896 1,559 '462 '-277 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 6 2,617 -2,474 1973—Ja n 23,630 6,633 82 271 994 -1,053 1,546 483 808 8,130 1,157 1,777 586 2,514 -297 Feb 20,227 6,265 280 241 431 230 567 368 904 7,907 1,046 2,002 374 9 -397 Mar 20,806 6,963 323 301 -77 310 1,072 270 786 7,565 1,064 2,097 462 -329 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 ,066 8,124 1,017 2,165 466 3 -377 June' 20,814 8,015 486 301 -126 118 1,434 309 ,336 8,234 866 2,004 452 -2,616 July 22,607 4,878 308 278 2,011 942 2,104 911 777 7,792 1,099 2,184 563 M95 -850 Aug 22,139 6,772 327 262 440 573 1,090 779 954 7,935 1,054 2,159 466 -3 -670 Sept 20,736 6,095 205 246 -35 422 957 712 661 8,302 970 2,392 643 16 -849 Oct 23,092 6,607 282 248 503 416 1,260 561 955 8,040 1,058 2,135 479 1.494 -850 1 Old-age, disability, and hospital insurance (including premiums for 5 Estimates presented in the Jan. 1974 Budget Document. Breakdowns do uninsured effective July 1, 1973, as provided for in Public Law 92-603), not add to totals because special allowances for contingencies, and Federal and Railroad Retirement accounts. pay increase (excluding Department of Defense), totaling $1,750 million 2 Supplementary medical insurance premiums (including premiums for fiscal 1974, are not included. for disabled effective July 1, 1973, as provided for in Public Law 92-603), 6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments and Federal employee retirement contributions. of $2,600 million for fiscal 1972. 3 Deposits of earnings by Federal Reserve Banks and other 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 • DECEMBER 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p g u r b o l s i s c Marketable Con- Nonmarketable debt 1 Total vert- Total Bills C c e a r t t e i s fi - Bonds 2 b i o b n le d s Total 3 F is o s r u e e i s g n 4 bo m n g 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—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 Oct. 462.5 355.5 264.0 101.6 120.7 41.8 2.3 89.2 27.8 Nov. 464.0 360.5 270.2 107.7 124.6 37.8 2.3 88.0 26.1 1 Includes non-interest-bearing debt (of which $619 million on Nov. 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 p T g d u r o e b o t b a l s t i s l c aagg GG tt UU aa ee rr oo nn nn uu .. vv SS dd cc ss tt .. tt ii ,, ee ss B F a . n R k . s TToottaall mm CC bb ee aa oo rr nn mm cc kk iiaa -- ss ll MM ss bb aa aa uu vv nn ii tt nn uu kk gg aa ss ss ll p I c a n a o n s n m u c i e e r - s - r c O a o t t r i h p o e o n r - s g S l a o o t n v c a a d t te s 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 ffuunnddss 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 15.0 444.2 116.1 69.5 258.6 63.5 2.7 6.1 12.0 27.9 57.4 17Tl 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 12.8 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 18.2 461.4 127.8 76.2 257.4 55.0 2.0 5.7 12.5 28.5 59.8 16.9 58.5 18.5 462.5 127.4 78.5 256.5 55.4 2.0 5.6 13.5 28.0 60.0 16.9 57.5 17.5 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

DECEMBER 1973 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) >J Vithin 1 yea r 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—Sept. 30 262,356 129,114 99,762 29,352 80,576 31,103 15,317 6,245 Oct. 31 264,047 130,940 101,577 29,363 80,535 31,102 15,269 6,201 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—Sept. 30 20,872 1,884 456 1,428 7,016 5,452 4,879 1,640 Oct. 31 20,840 1,878 466 1,412 7,005 5,448 4,888 1,620 Federal Reserve Banks: 197Q—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—Sept. 30 76,217 42,494 34,652 7,842 22,619 9,391 1,522 190 Oct. 31 78,491 44,571 36,647 7,924 22,821 9,376 1,530 192 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—Sept. 30 165,267 84,736 64,654 20,082 50,941 16,260 8,916 4,415 Oct. 31 164,716 84,491 64,464 20,027 50,709 16,278 8,851 4,389 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—Sept. 30 42,403 13,781 5,080 8,701 22,841 4,716 808 258 Oct. 31 42,782 14,130 5,518 8,612 22,943 4,640 805 265 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—Sept. 30 2,037 453 139 314 820 342 279 143 Oct. 31 2,021 493 194 299 805 289 292 142 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—Sept. 30 4,895 732 262 470 1,020 1,278 1,326 539 Oct. 31 4,878 689 223 466 1,075 1,278 1,309 527 Nonfinancial corporations: 1970—Dec. 31 3,057 1,547 1,194 353 1,260 242 2 6 1971—Dec. 31 6,021 4,191 3,280 911 1,492 301 16 20 1972 Dec. 31 4,948 3,604 1,198 2,406 1,198 121 25 1 1973—Sept. 30 3,944 2,766 1,270 1,496 1,009 90 64 15 Oct. 31 4,911 3,480 1,594 1,886 1,228 105 68 29 Savings and loan associations: 1970—Dec. 31 3,263 583 220 363 1,899 281 243 258 1971—Dec. 31 3,002 629 343 286 1,449 587 162 175 1972 Dec. 31 2,873 820 498 322 1,140 605 226 81 1973—Sept. 30 2,341 549 117 432 988 517 207 80 Oct. 31 2,315 552 116 436 963 513 211 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—Sept. 30 10,165 6,016 4,600 1,416 1,815 930 1,054 350 Oct. 31 9,779 5,723 4,563 1,160 1,774 896 1,036 350 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—Sept. 30 99,482 60,439 53,186 7,253 22,448 8,387 5,178 3,030 Oct. 31 98,030 59,424 52,256 7,168 21,921 8,557 5,130 2,999 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 736 insurance companies combined, each about 90 per cent; Ownership. (2) 465 nonfinancial corporations and 485 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) 505 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) 5,611 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES • DECEMBER 1973 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer UUU...SSS... GGGooovvvttt,,, PPPeeerrriiioooddd aaagggeeennncccyyy TToottaall ssseeecccuuurrriiitttiiieeesss Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com- All 1 year years years 10 years securities securities mercial other i dealers brokers banks 1972—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 Sept 3,884 3,021 644 158 61 583 1,182 1,142 977 1,048 Oct 3,375 2,790 374 163 48 568 954 1,072 782 808 Week ending— 1973—Oct. 3 3,547 2,746 577 168 56 530 1,007 1,207 802 822 10 4,428 3,655 500 214 60 765 1,357 1,378 928 1,024 17 3,069 2,578 323 130 38 469 981 895 724 824 24 2,989 2,641 224 88 36 496 852 900 742 852 31 3,223 2,613 325 227 57 578 729 1,125 791 700 Nov. 7 4,008 2,716 610 559 123 590 1,206 1,180 1,032 506 14 4,078 3,024 478 513 63 675 1,226 1,166 1,012 751 21 4,402 3,339 510 446 107 729 11,,331155 1,295 1,063 1,105 28*.. 33,,117766 22,,442255 337722 331155 6644 556699 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U .S. Govt securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks UU..SS.. PPeerriioodd ma t A i t e l u l s r i- W y i e t 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 aa ss GG ee gg tt cc ee oo ii uu ee nn vv ss rr cc tt ii ,, yy -- 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- ot A h l e l r 1972—Oct 3,333 3,452 -29 -132 41 543 1972—Oc t 3,055 1,227 406 490 932 Nov 4,522 4,113 335 8 66 834 Nov 4,198 1,538 617 709 1,334 Dec 4,973 4,903 73 -41 37 556 Dec 4,848 1,695 944 1,399 1973—Jan 4,744 4,959 -53 -259 97 281 1973—Ja n 4,520 1,346 794 932 1,449 Feb 3,394 3,365 -9 — i 39 202 Feb 3,415 1,063 455 490 1,408 Mar 2,702 3,130 -274 -143 -11 180 Mar 2,799 903 292 281 1,323 Apr 2,795 3,105 -159 -143 -9 274 Apr 3,032 935 513 311 1,273 May 2,626 2,596 -324 179 175 356 May 2,667 674 452 252 1,291 June 2,976 2,818 -165 91 232 744 June 3,769 1,242 690 431 1,406 July 1,901 2,062 -250 -43 131 511 July 2,826 725 544 510 1,047 Aug 1,788 1,977 -94 -107 12 273 Aug 2,318 829 327 386 777 Sept 3,201 2,958 316 -111 38 799 Sept 4,244 1,620 877 441 1,306 Oct 3,073 2,858 93 56 67 904 Oct 3,721 1,253 918 328 1,223 Week ending— Week ending— 1973—Sept. 5 2,854 2,597 423 -159 -6 580 1973—Sept. 5.. 3,108 1,120 616 408 964 12 3,566 3,310 382 -140 13 645 12.. 4,668 2,046 883 459 1,280 19 3,347 3,173 280 -141 35 845 19.. 4,754 1,844 967 581 1,363 26, 2,813 2,502 305 -65 71 985 26.. 3,999 1,355 874 413 1,357 Oct. 3 2,645 2,422 178 -23 67 848 Oct. 3.. 4,088 1,313 969 258 1,549 10, 3,247 3,069 114 2 62 912 10.. 3,732 1,125 992 291 1,324 17 2,805 2,629 77 33 65 912 17. . 3,696 1,381 1,006 272 1,037 24 3,084 2,864 90 59 72 838 24.. 3,489 1,258 842 283 1,106 31 3,469 3,183 49 169 69 989 31. . 3,970 1,353 847 492 1,278 NOTE.—The figures include all securities sold by dealers under repur- 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the table on the left. dealer trading positions. Average of daily figures based on number of trading days perioin the d. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, NOVEMBER 30y 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 Dec. 6, 1973 4,310 May 2, 1974 1,801 May 15, 1975.... •57/g 1,776 Feb. 15, .41/8 2,466 Dec. 13, 1973 4,292 May 7, 1974 1,800 May 15, 1975.... .6 6,760 May 15, .4 y4 2,848 Dec. 18, 1973 1,800 May 9, 1974 1,801 Aug. 15, 1975.... • 57/8 7,679 Nov. 15, .3% 1,214 Dec. 20, 1973 4.303 May 16, 1974 1,801 Sept. 30, 1975.... •83/g 2,043 May 15, 1975-85. .414 1,202 Dec. 27, 1973 4.304 May 23, 1974 1,800 Oct. 1, 1975.... .1 LA 30 June 15, 1978-83. 1,484 Jan. 3, 1974 4.302 May 30, 1974 1,797 Nov. 15, 3,115 Feb. 15, 1980.... .4 2,575 Jan. 10, 1974 4,304 June 4,1974 1,801 Dec. 31, 1975 ... .7 1,731 Nov. 15, 1980.... • 3 V4 1,897 Jan. 15, 1974 1,804 June 21, 1974f 1,999 Feb. 15, 1976.... .6 y4 3,739 Aug. 15, 1981 .7 807 Jan. 17, 1974 4.303 July 2,1974 1,802 Feb. 1155,, 1976 ... 4,945 Feb. 15, 1982 .63/g 2,702 Jan. 24, 1974 4,301 July 30, 1974 1,804 Apr. ..iinn 27 Aug. 15, 1984.... •63/g 2,353 Jan. 31, 1974 4,312 Aug. 27, 1974 1,805 May 15^ 1976.... .5 y4 2,802 May 15, 1985.... 960 Feb. 7, 1974 4.303 Sept. 24, 1974 1,802 May 15, 1976.... 2,697 Nov. 15, 1986.... .61/8 1,216 Feb. 12, 1974 1,801 Oct. 22, 1974 1,802 Aug. 15, 1976.... .M 4,194 Aug. 15, 1987-92. .414 3,698 Feb. 14, 1974 4,310 Nov. 19, 1974 1,801 Aug. 15, 1976 , , .. .61/2 3,883 Feb. 15, 1988-93. .4 230 Feb. 21, 1974 4,253 Oct. 1, 1976.... •m 11 May 15, 1989-94. .41/8 1,473 Feb. 28, 1974 4.304 Treasury notes Nov. 15, .61/4 4,325 Feb. 15, 1990.... • 3i/i 4,029 Mar. 7, 1974 1,809 Feb. 15, 1974 7y4 22,,996600 Feb. 1155,, 1977 8 5,163 Feb. 1155,, 1993 6VA 627 Mar. 12, 1974 1,790 Apr. 1, 1974 1 Vt 3344 Apr. 11,, 1977.... ..11 %% 5 Aug. 1155,, 1993.... M 1,363 Mar. 14, 1974 1,802 May 15, 1974 iy4 4,334 Aug. 15, ..773344 4,919 Feb. 15, 1995.... .3 855 Mar. 21, 1974 1,803 Aug. 15, 1974 5% 10,284 Oct. 1, 1977 ,.. .1 % 17 May 15, 1993-98. .7 692 Mar. 28, 1974 1,803 Sept. 30, 1974 6 2,060 Feb. 15, 1978 .... .ey4 8,389 Nov. 15, 1998.... •• 33ii//ii 3,149 Apr. 4, 1974 1,801 Oct. 1, 1974 m 42 Apr. 1, .1 % 15 Apr. 9, 1974 1,802 Nov. 15, 1974 534 5,442 Nov. 15, 1978.,,. .6 8,207 A A A p p p r r r . . . 1 1 1 9 1 8 , , , 1 1 1 9 9 9 7 7 7 4 4 4 , 3 1 1 , , , 0 8 8 0 0 0 8 3 2 D F F e e e b b c . . . 3 1 1 1 5 5 , , , 1 1 1 9 9 9 7 7 7 5 4 5 5 S 5 y y % 8 4 4 2 1 , , , 0 1 2 1 0 2 5 2 2 N A N o u o v g v . . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 7 7 7 9 9 9 . . . . . . , . . . . . • 7 6 6 5 % /g 4 2 1 , , , 5 2 6 5 4 0 9 4 4 Co I AA n n v pp v e rr e r .. s t t i m b J l e e n t b 1 o S 9 n e 7 d r 5 s i - e 8 s 0 B . ..223344 22,,227755 Apr. 25, 1974 1,802 Apr. 1, 1975 UA 8 May 15, 1980 •67/8 7,265 t Tax-anticipation series. NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered3 Total G o e b a n l l e i- r- R n e u v e e - HAA1 G l U o o a . v S n t . s , State di s a s t t n a r d t i . c t Other2 Total c E a d ti u o - n b R r a o id n a g d d e s s i U ti t e i s l- 4 H in o g u s s - V a e a n t i e d s r ' - O p t u h r e - 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 ,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972—Sept.. 1,726 663 803 257 4 298 1,016 414 1,609 238 107 590 270 404 Oct... 2,200 1,662 533 5 487 689 1,025 2,147 444 162 409 52 1,082 Nov.. 1,862 1,147 711 5 425 572 866 1,762 312 215 365 56 814 Dec... 1,797 872 653 268 4 147 754 895 1,507 351 21 204 332 599 1973—Jan... 1,974 1,149 822 602 454 919 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 Aug.. 1,489 950 537 452 471 566 1,436 262 28 303 290 552 Sept.. 1,675 698 682 '293 236 645 1,613 306 64 571 390 277 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 • DECEMBER 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate 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 Others Total Total P o u ff b e l r ic e l d y P p ri l v a a ce te d l y Preferred 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 5,635 474 650 1,701 90 2,720 1,651 862 789 305 9,505 2,530 1,141 1,970 74 3,791 2,336 1,772 565 421 10,987 3,590 2,134 1,816 70 3,377 2,343 1,361 982 154 8,210 2,553 200 1,760 302 3,396 2,625 1,024 1,601 272 6,523 1,199 993 1,889 116 2,327 1,276 989 287 137 7,325 1,603 2,261 1,445 53 1,962 957 641 316 172 9,029 606 1,826 2,304 359 3,933 2,116 1,315 802 833 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 11,225 3,353 3,442 1,870 17 2,543 1,721 1,049 672 187 7,943 559 1,706 2,046 53 3,578 2,757 1,358 1,398 216 7,643 490 2,471 1,992 48 2,631 1,870 857 1,013 226 8,019 3,097 1,600 1,414 22 1,806 1,382 792 590 94 8,012 2,432 2,100 1,609 15 1,857 1,312 684 629 115 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 ea f l i n e a st n a c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds 1964. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 1965. 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 1966. 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 1967. 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 1968. 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 1969. 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1970. 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1971. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 1972—Sept.. 441 162 302 242 61 649 598 32 1 166 Oct.. 269 114 192 326 152 12 522 758 313 58 887 Nov.. 346 79 429 271 61 8 322 472 657 1 528 Dec.. 486 103 343 149 214 25 491 370 34 1,057 17 1973—Jan.. . 113 63 89 105 120 1 529 371 30 395 Feb... 178 35 118 111 96 4 319 277 58 1137 290 Mar.. 772 125 177 327 317 6 1,076 1,351 548 668 1,462 Apr.. 772 22 237 139 91 1 150 369 258 743 May. 387 12 30 143 236 361 410 355 19 351 June. 703 25 133 89 183 1,099 497 303 29 337 July r. 364 169 139 112 250 1 651 269 244 60 223 Aug.r 230 49 149 129 83 15 419 90 320 5 182 Sept. 258 78 120 96 135 2 334 252 228 13 237 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

DECEMBER 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 i & 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 1,104 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) Year MMoonntthh Sales i Redemp- Net Total 2 Cash Other Sales i Redemp- Net Total 2 Cash Other tions sales position 3 tions sales position 3 1960 2,097 842 1,255 17,026 973 16,053 1972—Oct... 384 411 -27 57,525 3,719 53,806 Nov... 387 645 -258 59,854 3,549 56,305 1961 2,951 1,160 1,791 22,789 980 21,809 Dec... 449 619 -170 59,831 3,035 56,796 1962 2,699 1,123 1,576 21,271 1,315 19,956 1963 2,460 1,504 952 25,214 1,341 23,873 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 Feb... 327 530 -203 54,083 3,375 50,708 1964 3,404 1,875 1,528 29,116 1,329 27,787 Mar... 519 531 -12 53,377 3,774 49,603 1965 4,359 1,962 2,395 35,220 1.803 33,417 Apr... 300 452 -120 50,837 3,837 46,464 1966 4,671 2,005 2,665 34,829 2,971 31,858 May.. 285 446 -161 48,588 4,154 44,434 June.. 303 349 -46 48,127 4,164 43,963 1967 4,670 2,745 1,927 44,701 2,566 42,135 July. . 364 357 -7 50,933 4,594 46,339 1968 6,820 3,841 2,979 52,677 3,187 49,490 Aug. . 239 432 -193 49,553 4,567 44,986 1969 6,717 3,661 3,056 48,291 3,846 44,445 Sept... 330 395 -65 52,322 4,641 47,681 Oct... 305 559 -254 51,952 4,168 47,784 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 • DECEMBER 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year 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 p ri r n b o d u f t i i s t e s - d co c a n a t l s l p i o o u i n w t 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 p ri r n b o d u f i t it s e s - d co c a n t a l i s p l o o u n it w m a - l p ances 1 ances 1 1966 84.2 34.3 49.9 20.8 29.1 39.5 85.5 38.4 47.1 25.1 22.0 59.8 1967 79.8 33.2 46.6 21.4 25.3 43.0 III.... 87.0 38.0 49.0 25.2 23.7 61.0 IV.... 86.9 36.4 50.6 24.9 25.7 62.1 1968 87.6 39.9 47.8 23.6 24.2 46.8 1969 84.9 40.1 44.8 24.3 20.5 51.9 1972—1 92.8 40.6 52.2 25.7 26.5 63.4 1970 74.0 34.8 39.3 24.7 14.6 56.0 II 94.8 41.4 53.4 25.9 27.5 66.2 1971 85.1 37.4 47.6 25.1 22.5 60.4 III.... 98.4 42.9 55.6 26.2 29.4 66.0 1972 98.0 42.7 55.4 26.0 29.3 65.9 IV.... 106.1 45.9 60.3 26.4 33.9 68.0 1973—1 119.6 52.7 66.9 26.9 40.0 69.3 II 128.9 57.4 71.6 27.3 44.2 70.5 I Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i , - I t n o v r e ie n s - Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 196 8 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 196 9 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—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 III 200.9 507.2 52.4 7.8 3.9 206.5 201.6 34.9 306.3 5.0 197.4 13.8 90.1 IV 204.9 516.7 55.3 10.4 3.5 207.5 203.1 36.8 311.8 4.9 202.8 14.5 89.7 1972—1.. 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 202.5 15.7 93.3 II. 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 204.0 13.4 96.8 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 CCoommmmuu-- TToottaall PPeerriioodd TToottaall Durable d N ur o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her nniiccaattiioonnss OOtthheerr ii AA ((SS .. ,, RR AA .. .. )) 1969 7777755555.....5555566666 1111155555.....9999966666 1111155555.....7777722222 11111.....8888866666 11111.....8888866666 22222.....5555511111 11111.....6666688888 88888.....9999944444 22222.....6666677777 88888.....3333300000 1111166666.....0000055555 1970 7777799999.....7777711111 1111155555.....8888800000 1111166666.....1111155555 11111.....8888899999 11111.....7777788888 33333.....0000033333 11111.....2222233333 1111100000.....6666655555 22222.....4444499999 1111100000.....1111100000 1111166666.....5555599999 1971 8888811111.....2222211111 1111144444.....1111155555 1111155555.....8888844444 22222.....1111166666 11111.....6666677777 11111.....8888888888 11111.....3333388888 1111122222.....8888866666 22222.....4444444444 1111100000.....7777777777 1111188888.....0000055555 1972 8888888888.....4444444444 1111155555.....6666644444 1111155555.....7777722222 22222.....4444455555 11111.....8888800000 22222.....4444466666 11111.....4444466666 1111144444.....4444488888 22222.....5555522222 1111111111.....8888899999 2222200000.....0000077777 19732 111110000000000.....0000088888 1111199999.....3333399999 1111188888.....6666611111 22222.....7777766666 11111.....9999944444 22222.....4444411111 11111.....6666600000 1111166666.....2222255555 22222.....8888844444 1111133333.....0000033333 2222211111.....2222244444 1971—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—1 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 Ill 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—1 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV2 28.81 5.97 5.45 .73 .54 .60 .41 4.85 .89 9. 37 104.94 1974—12 24.19 4.87 4.56 .70 .54 .51 .38 4.14 .52 7.98 108.16 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

DECEMBER 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 il r y o p a e n r d t ies5 Mo ty r p tg e a 6 ge EE ppee nn rr dd ii oo oo dd ff hh AA ee oo rr ll ll ss dd ll -- tt FF uu ii tt nn ii cc nn ii ii ss oo aa aa tt nn ll ii nn -- ss -- ii 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 A e A e oo rr ll ll ss dd ll -- tt FF uu ii tt ii nn cc nn ii ii ss oo aa aa tt nn ll ii nn -- ss -- ii 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 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 1972 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 1971—III. . 485.6 383.5 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.7 153.5 125.8 27.7 117.5 335.7 IV. . 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 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—1'... 580.1 463.3 47.3 69.5 36.5 10.7 25.8 543.6 353.9 296.3 57.6 189.7 156.4 33.4 132.5 411.1 II... 600.4 480.5 49.0 71.0 37.7 11.0 26.7 562.7 365.7 306.9 58.8 197.0 162.5 34.5 IIIIII**>> .. 661199..88 449944..99 5533..00 7711..99 3388..77 1111..44 2277..33 558811..11 337766..66 331155..00 6611..66 220044..55 116688..55 3366..00 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 Multifamily i G un o d v e e r r w nm rit e t n e t n - CCoonn-- EE ppee nn rr dd ii oo oo dd ff Total t F u i i n c t n i i s a a o t l i n n - - s h O ol t d h e e r r s Total t F u i i n c t n i s i a a o t l i n n - - s h O ol t d h e e r r s End of period TToottaall Total F su H in re A - d - an g V u te A a e r - d - 1 ttii vv oo ee nn nn aa -- ll 1964 231.1 195.4 35.7 33.6 25.1 8.5 196 4 197.6 69.2 38.3 30.9 128.3 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 7 9 5 8 6 2 2 2 2 3 5 6 8 9 1 0 4 0 8 9 . . . . . 1 0 0 6 0 2 2 2 2 2 6 2 5 3 1 3 0 5 6 3 . . . . . 7 8 6 2 0 5 4 4 4 3 4 7 0 3 6 . . . . . 8 0 3 9 4 5 4 4 4 3 2 7 3 0 7 . . . . . 3 2 9 3 2 4 2 3 3 3 1 9 1 4 7 . . . . . 3 5 7 7 0 1 9 9 8 8 0 . . . . . 2 7 2 8 8 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 9 6 5 7 8 2 2 2 2 2 3 5 6 1 2 6 6 1 2 3 . . . . . 1 8 2 9 6 9 8 7 7 7 0 3 6 4 9 . . . . . 1 1 2 4 9 5 5 4 4 4 4 0 4 7 2 . . . . . 5 8 6 0 4 3 3 3 3 3 3 1 5 2 1 . . . . . 1 8 5 3 7 1 1 1 1 1 7 5 6 4 3 6 6 6 9 7 . . . . . 1 6 8 8 6 1 1 19 9 9 7 7 7 1 2 0 4 3 3 2 3 7 2 8 4 . . . 5 2 7 2 3 3 7 0 4 7 6 7 . . . 1 1 9 6 6 7 1 8 4 . . . 1 5 6 5 6 7 6 6 8 . . . 8 4 0 4 5 5 5 9 2 . . . 8 1 0 1 1 1 4 2 7 . . . 9 3 2 1 1 1 9 9 9 7 7 7 2 0 1 2 3 3 8 0 46 7 0 . . . 1 8 2 1 1 9 1 0 7 3 5 . . . 3 0 2 6 6 5 5 9 8 . . . 7 9 2 4 3 3 4 9 7 . . . 7 5 3 2 2 1 3 0 8 3 2 2 . . . 1 6 9 1971— I I V II 3 3 7 6 4 4 . . 7 0 2 3 9 06 8 . . 1 4 6 6 8 5 . . 5 6 6 66 4 . . 8 3 5 5 2 0 . . 0 4 1 1 4 3 . . 9 9 1971— I II V I . . . . 2 3 9 0 9 7 . . 7 8 1 1 0 0 2 5 . . 9 2 6 65 4 . . 7 4 3 39 8 . . 5 5 2 1 0 9 2 6 . . 6 8 1972—1 I I I V I ll 4 4 3 3 2 0 9 8 2 9 5 2 . . . . 5 8 3 9 3 3 3 3 3 1 4 2 6 2 7 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 6 5 . . . . 3 4 6 0 1972— I I I 1 I V I I . . . . . . . . . . . 3 3 3 3 4 3 2 1 6 5 4 4 . . . . 1 8 1 6 1 1 1 1 1 1 0 0 3 1 9 7 . . . . 5 0 6 5 6 6 6 6 8 8 7 6 . . . . 2 4 6 8 4 4 4 4 4 3 2 0 . . . . 7 1 0 7 2 2 2 2 3 2 1 0 3 4 5 6 . . . . 1 3 0 6 1973— I I 1 I I ' I*... 4 4 4 3 6 4 2 1 7 . . . 8 6 9 3 3 3 8 5 7 0 7 0 . . . 0 4 4 7 7 8 5 7 1 . . . 5 5 6 7 8 8 9 5 2 . . . 0 0 2 6 6 6 5 3 1 . . . 5 0 1 2 1 1 0 8 7 . . . 0 7 9 1973— I I 1 I I ' I . . * . . . . . 3 3 33 6 5 77 5 3 66 . . .. 7 9 66 113.7 67.9 45.8 240.2 i Includes outstanding amount of VA vendee accounts held by private i Structures of five or more units. investors under repurchase agreement. NOTE.—Based on data from same source as for "Mortgage Debt Outstanding" table above. NOTE.—For total debt outstanding, figures are FHLBB and F.R. 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 • DECEMBER 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings J Mutual savings bank holdings Residential Residential End of period Other Total non- Farm Total FHA- VA- Con- farm FHA- VA- Con- Total in- guar- ven- Total in- guar- vensured anteed tional sured anteed tional 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 82,515 52,004 8,310 3,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 82,515 52,004 8,310 2,980 40,714 X6,306 4,205 61,978 53,027 16,141 12,074 24,812 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 90,114 56,782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 103,548 65,236 33,342 4,970 68,920 58,169 109,114 68,650 8,482 3,211 56,957 35,224 5,240 70,634 59,397 114,414 71,852 37,070 5,492 72,006 60,282 1 Includes loans held by nondeposit trust companies but not bank NOTE.—Second and fourth quarters, FDIC series for all commercial trust depts. and mutual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm PPPeeerrriiioooddd TToottaall Total in F s H ur A e - d a g n V u t A a e r e - - d Other i FFaarrmm TToottaall Total in F s H ur A e - d a g n V u t A a e r e - - d Other FFaarrmm 1945 997766 66,,663377 55,,886600 11,,339944 44,,446666 776666 196 4 1100,,443333 9,386 1,812 674 6,900 1,047 5555,,115522 5500,,884488 1111,,448844 6,403 3322,,996611 44,,330044 196 5 1111,,113377 9,988 1,738 553 7,697 1,149 6600,,001133 5555,,119900 1122,,006688 6,286 3366,,883366 44,,882233 1100,,221177 9,223 1,300 467 7,456 994 6644,,660099 5599,,336699 1122,,335511 6,201 4400,,881177 55,,224400 88,,447700 7,633 757 444 6,432 837 6677,,551166 6611,,994477 1122,,116611 6,122 4433,,666644 55,,556699 196 8 77,,992255 7,153 733 346 6,074 772 6699,,997733 6644,,117722 1111,,996611 5,954 4466,,225577 55,,880011 196 9 77,,553311 6,991 594 220 6,177 540 7722,,002277 6666,,225544 1111,,771155 5,701 4488,,883388 55,,777733 197 0 77,,118811 6,867 386 88 6,393 314 7744,,337755 6688,,772266 1111,,441199 5,394 5511,,991133 55,,664499 197 1 77,,557733 7,070 322 101 6,647 503 7755,,449966 6699,,889955 1100,,776677 5,004 5544,,112244 55,,660011 197 2 88,,880022 8,101 277 202 7,622 701 7777,,331199 7711,,664400 99,,994444 4,646 5577,,005500 55,,667799 1972—Sept. r 668899 645 29 12 604 44 7755,,558888 6699,,997711 1100,,116644 4,746 5555,,006611 55..661177 Oct 771188 673 10 16 647 45 7755,,995522 7700,,332233 1100,,005533 4,700 5555,,557700 55,,662299 Nov 880033 746 28 13 705 57 7766,,220077 7700,,556677 1100,,000000 4,668 5555,,889999 55,,664400 Dec 11,,883300 1,723 16 18 1,689 107 7777,,331199 7711,,664400 99,,994444 4,646 5577,,005500 55,,667799 1973—Ja n 771111 649 16 20 613 62 7777,,448811 7711,,885566 99,,990011 4,630 5577,,332255 55,,662255 Feb 660033 542 27 24 491 61 7777,,551100 7711,,889922 99,,880066 4,613 5577,,447733 55..661188 Mar 667700 573 37 24 512 97 7777,,558877 7711,,995533 99,,773355 4,594 5577,,662244 55,,663344 Apr 770022 624 20 22 582 78 7777,,225588 7711,,661111 99,,770088 4,572 5577,,333311 55,,664477 May 777744 694 22 21 651 80 7777,,440000 7711,,772211 99,,662277 4,549 5577,,554455 55,,667799 June 11,,110011 1,009 24 27 958 92 7777,,991144 7722,,118877 99,,554444 4,524 5588,,111199 55,,772277 July 993333 849 26 19 804 84 7788,,224433 7722,,447744 99,,446644 4,496 5588,,551144 55,,776699 Aug 11,,003344 947 11 20 916 87 7788,,665577 7722,,883399 99,,338888 4,471 5588,,998800 55,,881188 Sept 994444 862 23 17 822 82 7799,,004400 7733,,118822 99,,333300 4,447 5599,,440055 55,,885588 1 Includes mortgage loans secured by land on which oil drilling or extracting operations are in process. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount Period o N f u l m oa b n e s r ( c m o ( i m d l o l m i l o la i n t r s t s e ) d o f ( o t f h a 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 n r 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 t a 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 a t 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 10.4 197 2 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1971 _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 Oct.. 159 343.5 2,161 8.65 23/0 75.8 9.6 1.29 9.9 Nov. 180 371.7 2,065 8.63 23/2 74.7 9.6 1.28 9.9 Dec., 130 363.9 2,799 8.64 22/8 74.4 9.8 1.37 9.9 NOTE.—American Life Insurance Association data for new commit- limited to cases where information was available or estimates could be ments of $100,000 and over each on mortgages for multifamily and non- made: capitalization rate (net stabilized property earnings divided by residential nonfarm properties located largely in the United States. The 15 property value); debt coverage ratio (net stabilized earnings divided by companies account for a little more than one-half of both the total assets debt service); and per cent constant (annual level payment, including and the nonfarm mortgages held by all U.S. life insurance companies. principal and interest, per $100 of debt). All statistics exclude construction Averages, which are based on number of loans, vary in part with loan loans, increases in existing loans in a company's portfolio, reapprovals, composition by type and location of property, type and purpose of loan, and loans secured by land only. and loan amortization and prepayment terms. Data for the following are MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Members' Period va A n d c - es R m e e p n a ts y - d ( e en p d o si o ts f Period h N o e m w e Home FHA- VA- Con- Total t S e h r o m r t 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 196 5 5,007 4,335 5,997 3,074 2,923 1,043 196 6 3,804 2,866 6.935 5,006 1,929 1,036 196 7 1,527 4,076 4,386 3,985 401 1,432 1965.. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 196 8 2,734 1,861 5,259 4,867 392 1,382 196 6 16,924 3,653 7,828 114,427 5,269 6,157 103,001 196 9 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 7,012 117,132 197 0 3,256 1,929 10,615 3,081 7,534 2,331 196 9 21,847 4,757 11,254 140,347 7,917 7,658 124,772 197 1 2,714 5,392 7.936 3,002 4,934 1,789 197 2 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—Oct.. 542 233 7,045 2,440 4,605 1,334 197 2 51,408 8,553 26,615 206,387 29,391 176,996 Nov. 445 246 7,245 2,520 4,725 1,371 Dec.. 984 251 7,979 2,961 5,018 2,104 1972—Oct... 4,522 761 2,423 200,554 15,378 13,334 171,842 Nov.., 4,393 714 2,307 203,266 15,490 13,544 174,232 1973—Jan.. 332 480 7,831 2,805 5,025 1,306 Dec.. , 4,591 667 2,167 206,387 15,639 13,764 176,964 Feb.. 415 302 7,944 2,774 5,170 1,321 Mar. 764 288 8,421 2,975 5,446 1,290 1973--Jan.... 3,702 590 1,970 208,132 29. 581 178,551 Apr.. 1,187 178 9,429 3,450 5,979 1,142 Feb.. . 3,710 614 2,019 210,260 29, 751 180,509 May. 916 189 10,156 3,428 6,728 1,261 Mar... 4,990 887 2,685 213,259 30, 045 183,214 June. 1,093 104 11,145 4,016 7,129 1,453 Apr... 4,989 886 2,762 216,250 30. 182 186,068 July. 1,373 153 12,365 4,583 7,782 1,183 May. . 5,477 931 3,141 219,500 30: 296 189,204 Aug., 1,380 235 13,510 4,737 8,773 1,091 June. . 5,738 903 3,469 222,801 30, 381 192,420 Sept. 999 212 14,298 4,834 9,464 1,178 July... 5,059 851 3,079 225,490 30; 270 195,220 Oct.. 728 223 14,799 4,805 9,994 1,264 Aug... 4,971 801 3,059 228,006 30, 268 197,738 Sept.r. 3,177 572 1,838 229,413 30, 632 198,781 Oct.... 2,780 531 1,548 230,451 30, 332 200,119 2 1 S S e e c c u u r r e e d d l o o r a u n n s, s e a c m ur o e r d t iz lo ed a n q s u m ar a t t e u r r l i y n , g h i a n v i 1 n g y ea m r a o tu r r l i e ti s e s s . of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. NOTE.—FHLBB data. 2 Includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates 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 • DECEMBER 1973 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans home loans Mortgage Mortgage Mortgage holdings transactions commitments (during Date of auction Mortgage Average Mortgage Average End of period) amounts yield amounts yield period (short- (short- Total F su H in re A - d - a g n V u t A a e r e - - d c P ha u s r e - s Sales d p M u er r a i i d o n e d g st O i a n n u g t d - Offered ce A p c te - d c m o te m e r n m m ts i ) t - Offered ce A p c t - ed c m o te m e r n m m ts i ) t - 196 8 7,167 5,122 2,046 1,944 2,696 1,287 In millions of In In millions of In 196 9 10,945 7,676 3,269 4,120 6,630 3,539 dollars per cent dollars per cent 197 0 15,492 11,063 4,429 5,079 20 8,047 5,203 197 1 17,791 12,681 5,110 3,574 336 9,828 6,497 197 2 19,791 14,624 5,112 3,699 211 8,797 8,124 1972—Dec. 26 108.7 66.3 7.69 1972-Oct... 19,438 14,462 4,939 265 979 7,602 11997733——AApprr.. 1166........ 221166..66 119900..77 77..8899 Nov.. 19,619 14,558 5,016 322 447 7,452 1177 111.0 88.4 8.17 Dec.. 19,791 14,624 5,112 306 1,237 8,124 30.... 261.2 185.9 7.92 128.9 88.2 8.23 1973-Jan... 19,982 14,743 5,170 348 29 458 8,034 May 14 258.3 187.7 7.96 117.6 84.4 8.31 Feb.. 20,181 14,872 5,222 334 478 7,972 28.... 212.4 140.0 8.00 113.3 73.9 8.39 Mar.. 20,571 15,201 5,259 522 933 8,139 Apr.. 20,791 15,390 5,269 355 1,211 8,742 June 11... 184.5 142.2 8.04 110.1 74.1 8.44 May. 21,087 15,581 5,335 472 1,180 9,312 25. .. 199.3 118.7 8.09 95.0 69.4 8.51 June. 21,413 15,768 5,411 516 1,191 9,778 July.. 21,772 15,877 5,574 516 1,102 9,859 July 9.... 539.3 244.8 8.38 108.4 72.5 8.67 Aug.. 22,319 16,085 5,761 699 1,019 9,809 23.... 351.4 181.4 8.54 119.0 61.7 8.79 Sept., 22,831 16,293 5,937 633 724 9,602 Oct... 23,348 16,510 6,101 643 255 8,918 Aug. 6 458.5 201.9 8.71 154.3 77.4 8.98 20. . . 525.0 223.8 8.95 171.3 77.2 9.27 NOTE.—FNMA data. Total holdings include conventional loans. Data Sept. 4. . . 551.0 288.9 9.27 118.6 61.5 9.53 prior to Sept. 1968 relate to secondary market portfolio of former FNMA. 17. . . 138.1 107.9 9.37 48.6 46.8 9.68 Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Mortgage commitments made during the period include some Oct. 1. . . 32.5 24.1 9.11 9.1 7.1 9.43 multifamily and nonprofit hospital loan commitments in addition to 1- to 15. . . 24.8 16.6 8.97 18.6 16.2 9.10 4-family loan commitments accepted in FNMA's free market auction 29. . . 28.2 21.6 8.94 17.4 9.4 9.01 system, and through the FNMA-GNMA Tandem Plan (Program 18). Nov. 12. . . 29.3 23.1 8.87 24.1 16.7 8.94 29. . . 24.9 20.9 8.81 31.0 22.1 8.90 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 dd pp MM uu eerr rr aa ii ii dd oo nn ee dd gg sstt OO ii aa nn nn uu gg dd tt -- Pass-through securities Bonds Period sold Applications Securities 1967 33333333333333333333,,,,,,,,,,,,,,,,,,,,333333333333333333334444444444444444444488888888888888888888 222222,,,,,,777777555555666666 555555999999222222 888888666666000000 11111,,,,,000004444455555 111111,,,,,,111111777777111111 received issued 1968 44444444444444444444,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222200000000000000000000 333333,,,,,,555555666666999999 666666555555111111 111111,,,,,,000000888888999999 11 888886666677777 111111,,,,,,222222666666666666 1969 44444444444444444444,,,,,,,,,,,,,,,,,,,,888888888888888888882222222222222222222200000000000000000000 444444,,,,,,222222222222000000 666666000000000000 888888222222777777 666661111155555 111111 ,,,,,,111111333333111111 1970 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111118888888888888888888844444444444444444444 444444,,,,,,666666333333444444 555555555555000000 666666222222111111 888889999977777 777777333333888888 197 0 1,126.2 452.4 ,315.0 1971 55555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222229999999999999999999944444444444444444444 444444,,,,,,777777777777777777 555555111111777777 333333999999333333 111111,,,,,,444444999999444444 197 1 4,373.6 2,701.9 300.0 1972 55555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111133333333333333333333 197 2 3,854.5 2,661.7 11111111111111999999999999997777777777777722222222222222--------------OOOOOOOOOOOOOOcccccccccccccctttttttttttttt........................................................ 55555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222220000000000000000000033333333333333333333 1972—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 SSSSSSSSSSSSSSeeeeeeeeeeeeeepppppppppppppptttttttttttttt.......................................... 44444444444444444444,,,,,,,,,,,,,,,,,,,,444444444444444444442222222222222222222299999999999999999999 Sept. 533.8 380.0 OOOOOOOOOOOOOOcccccccccccccctttttttttttttt........................................................ 44444444444444444444,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333388888888888888888888 Oct.. 825.7 234.0 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

DECEMBER 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 11 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 1972-—Nov 7.64 7.57 7.70 7.57 1971. 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 Dec 7.66 7.59 7.70 7.56 1972. 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 1973--Jan 7.68 7.68 7.70 7.55 1972--Oct... 847 255 343 155 94 720 204 516 Feb 7.70 7.72 7.75 7.56 Nov.. 985 261 331 296 97 790 246 544 Mar 7.68 7.69 7.80 7.63 Dec.. 964 190 245 444 85 715 220 495 Apr 7.71 7.70 7.90 7.73 May 7.71 7.77 7.95 7.79 1973--Jan... 834 254 324 197 59 681 218 463 June 7.79 7.79 8.05 7.89 Feb.. 710 162 235 262 52 592 187 405 July 7.87 7.84 8.40 8.19 Mar.. 969 195 268 440 65 596 185 411 Aug 7.94 8.01 8.85 Apr.. 620 151 223 172 74 621 187 434 Sept 8.17 8.26 8.95 9.18 May. '589 158 228 122 81 634 198 436 Oct.' 8.31 8.50 8.80 8.97 June. 650 153 229 207 61 646 182 464 Nov 88..3366 88..5566 July.. 559 143 250 100 66 666 204 462 Aug.. '537 100 195 '167 75 569 193 376 Sept.. '485 90 177 '134 84 565 184 381 NOTE.—Annual data are averages of monthly figures. The Oct 665522 222211 443311 Housing and Urban Development (FHA) data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding month. Yields on 1 Monthly figures do not reflect mortgage amendments included in annual FHA-insured mortgages are derived from weighted averages of totals. private secondary market prices for Sec. 203, 30-year mortgages 2 Not ordinarily secured by mortgages. with minimum downpayment and an assumed prepayment 3 Includes refinancing loans, mobile home loans and also a small amount of at the end of 15 years. Any gaps in data are due to periods of alteration and repair loans, not shown separately; only such loans in amounts adjustment to changes in maximum permissible contract in- of more than $ 1,000 need be secured. terest rates. The HUD (FHA) interest rates on conventional first mortgages in primary markets are unweighted and are NOTE.—FHA and VA data. FHA-insured loans represent gross amount rounded to the nearest 5 basis points. The FHLBB effective of insurance written; VA-guaranteed loans, gross amounts of loans closed. rate series reflects fees and charges as well as contract rates (as Figures do not take into account principal repayments on previously insured shown in the table on conventional first-piortgage terms, p. or guaranteed loans. For VA-guaranteed loans, amounts by type are derived A-35) and an assumed prepayment at end of 10 years. from data on number and average amount of loans closed. DELINQUENCY RATES ON HOME MORTGAGES FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— LLooaannss iinn Mortgage Mortgage Mortgage ffoorree-- holdings transactions commitments EEnndd ooff ppeerriioodd cclloossuurree (during period) Total 30 days 60 days 90 days End of period or more FHA- C v o en n - - Pur- Sales d M ur a i d n e g s O ta u n t d - - 1965 3.29 2.40 .55 .34 .40 VA tional chases period ing 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 64 182 197 2 1,789 1,503 286 1,298 408 1,606 198 1970 3.64 2.67 .61 .36 .33 1971 3.93 2.82 .65 .46 .46 1972—Sept. 1,545 1,408 137 66 13 136 318 1972 4.65 3.42 .78 .45 .48 Oct. 1,631 1,439 192 102 9 189 371 Nov. 1,743 1,491 253 128 10 89 293 1971—11 3.27 2.36 .53 .38 .38 Dec. 1,789 1,503 286 143 87 93 198 Ill 3.59 2.54 .62 .43 .41 IV 3.93 2.82 .65 .46 .46 1973—Jan.. 1,761 1,517 244 76 99 142 226 Feb. 1,677 1,535 142 76 150 166 300 1972—1 3.16 2.21 .58 .37 .50 Mar. 1,718 1,589 128 119 68 141 295 II 3.27 2.38 .53 .36 .48 Apr. 1,784 1,646 138 126 51 193 343 Ill 3.82 2.74 .65 .43 .52 May 1,906 1,695 211 147 17 187 344 ITV\/ 1 . \ J 4 4 . . 6 6 5 6 3 3. . 4 4 1 2 . . 7 7 9 8 . .4 4 6 5 . .4 5 8 0 J J u u n ly e . 2 2 , , 1 0 5 2 8 9 1 1 , , 7 7 1 1 6 4 4 3 4 1 4 3 1 1 4 5 0 4 21 1 1 3 5 9 9 2 3 7 1 8 6 Aug. 2,307 1.728 579 161 208 291 1973_I 3.63 2.52 .68 .43 Sept. 2,423 1.729 694 126 143 288 II 333...888444 222...888111 ...666444 ...333999 Ill 444...333666 333...111000 ...777888 ...444888 NOTE.—FHLMC data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Holdings, purchases, 1 First line is old series; second line is new series. and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Commitment data NOTE.—Mortgage Bankers Association of America data from cover the conventional and Govt.-underwritten loan programs. reports on 1- to 4-family FHA-insured, VA-guaranteed, and conventional 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 • DECEMBER 1973 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment EEnndd ooff ppeerriioodd 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 1965, 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 1966 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 1967 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 7,070 5,727 1968. 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 1969. 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 1970, 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 1971 , 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 1972. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1972—Oct 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 Nov 152,968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 8,716 Dec 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973- 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 Feb 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 9,568 Mar 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 Apr 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 9,747 164,277 133,531 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 Sept 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 8,335 9,519 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 8,590 9,495 i Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in "Other consumer goods paper." loans. For back figures and description of the data, see ''Consumer Credit," Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 NOTE.—Consumer credit estimates cover loans to individuals for house- and BULLETINS for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets EEnndd ooff ppeerriioodd TToottaall Com- Finance Mis- Auto- Other Total mercial compa- Credit cellaneous Total mobile retail banks nies 1 unions lenders 1 dealers 2 outlets 1940. 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5.798 5,315 590 102 2,898 287 2,611 1955. 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 I960. 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965., 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 1966., 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 1967., 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 1968. 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 1969., 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 1970, 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 1971, 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 1972, 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1972--Oct 122,505 108,405 58,266 30,970 16,556 2,613 14,100 257 13,843 124,325 109,673 58,878 31,427 16,742 2,626 14,652 259 14,393 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1973- 127,368 111,690 60,148 32,177 16,847 2,518 15,678 263 15,415 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 15,063 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 15,017 133,531 118,165 63,707 33,859 17,832 2,767 15,366 284 15,082 136,018 120,450 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 15,440 140,810 124,823 67,381 35,634 18,961 2,847 15,987 296 15,691 142,093 126,040 67,918 35,993 19,207 2,922 16,053 297 15,756 143,610 127,307 68,627 36,365 19,339 2,976 16,303 300 16,003 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

DECEMBER 1973 d CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Commercial banks Finance companies 1 Automobile Other consumer Other consumer paper goods paper Home Per- Auto- goods paper Home Total improve- sonal Total mobile improvement loans paper ment Pur- Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1,452 339 276 232 165 440 2,278 1,253 159 745 66 143 114 110 312 910 202 40 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 58,266 15,996 10,534 5,590 4,782 5,053 3,555 12,756 30,970 9,914 2,862 3,430 58,878 16,180 10,674 5,690 4,868 5,063 3,557 12,846 31,427 10,026 2,899 3,476 59,783 1<S,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 60,148 16,464 10,889 5,839 5,311 5,135 3,527 12,983 32,177 10,177 2,928 3,644 60,582 16,680 10,977 5,932 5,283 5,158 3,515 13,037 32,431 10,267 2,909 3,752 61,388 16,951 11,216 6,035 5,243 5,289 3,538 13,116 32,750 10,419 2,943 3,796 62,459 17,327 11,436 6,163 5,290 5,401 3,581 13,261 33,078 10,617 2,991 3,831 63,707 17,716 11,680 6,321 5,360 5,538 3,635 13,457 33,859 10,872 3,025 3,985 64,999 18,138 11,866 6,473 5,502 5,688 3,700 13,632 34,367 11,121 3,081 4,002 66,065 18,439 12,023 6,629 5,603 5,815 3,774 13,782 35,020 11,365 3,132 4,103 67,381 18,771 12,190 6,825 5,792 5,923 3,863 14,017 35,634 11,583 3,187 4,194 67,918 18,886 12,160 6,956 5,909 5,978 3,903 14,126 35,993 11,721 3,235 4,265 68,627 19,123 12,262 7,106 5,991 6,012 3,950 14,183 36,365 11,859 3,269 4,316 1 Finance companies consist of those institutions formerly classified as See also NOTE to table at top of preceding page, sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single- Other payment Charge accounts Auto- con- Home Per- loans Total mobile sumer improve- sonal paper goods ment loans Total paper loans End of period Com- Other mer- finan- Retail Credit cial cial outlets cards 1 188 36 7 13 132 banks insti- 121 16 4 10 91 tutions 692 159 40 102 391 1,959 560 130 313 956 4,566 1.460 297 775 2,034 1940 2,824 636 164 1,471 1945 3,203 674 72 1,612 8,289 3,036 498 933 3,822 1950 6,768 1,576 245 3,291 76 9,315 3,411 588 980 4,336 1955 9,924 2,635 367 4,579 216 10,216 3,678 654 1,085 4,799 1960 13,173 3,884 623 4,893 436 11,717 4,238 771 1.215 5,493 13,722 4,941 951 1,443 6,387 196 5 18,990 6,690 981 5,724 706 196 6 19,994 6,946 1,026 5,812 874 15,088 5,116 1,177 1,800 6,995 196 7 21,355 7,478 1,080 6,041 1,029 17,021 5,747 1,472 1,930 7,872 196 8 23,025 8,374 1,158 5,966 1,227 19,511 6,598 1,690 2,160 9,063 196 9 24,041 8,553 1,194 5,936 1,437 19,169 6.461 1,656 2,157 8,895 197 0 25,099 8,469 1,206 6,163 1,805 19,368 6,535 1,675 2,165 8,993 197 1 27,099 9,316 1,269 6,397 1,953 19,511 6,598 1,690 2,160 9,063 197 2 30,232 10,857 1,399 7,055 1,947 19,365 6,560 1,680 2,138 8,987 1972—Oct.... 28,071 10,339 1.378 5,794 1,986 19,617 6,627 1,698 2,162 9,130 Nov 28,643 10,527 1,390 6,081 1,929 20,052 6,752 1,732 2,209 9,359 Dec.... 30,232 10,857 1,399 7,055 1,947 20,190 6,820 1,748 2.216 9,406 20,599 6,966 1,785 2,250 9,598 1973—Jan.... 29,859 10,825 1.379 6,402 1,955 21,084 7,135 1,828 2,294 9,827 Feb.... 29,623 10,989 1,420 5,735 1,911 21,394 7,232 1,853 2,338 9,971 Mar 29,945 11,074 1,466 5,825 1,877 21,808 7,392 1,893 2,375 10,148 Apr 30,469 11,237 1,449 6,129 1,907 22,129 7,493 1,920 2,408 10,308 May... 30,746 11,359 1,458 6,387 1,932 22,315 7,548 1,935 2,438 10,394 June... 31,065 11,520 1,470 6,544 2,011 July. .. 30,936 11,491 1,477 6,424 2,055 Aug 31,168 11,655 1,456 6,475 2,130 NOTE.—Other financial lenders consist of credit unions and miscel- Sept.... 30,942 11,608 1,480 6,229 2,106 laneous lenders. Miscellaneous lenders include savings and loan associa- Oct 31,230 11,654 1,491 6,554 2,036 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 • DECEMBER 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 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 222222222777777777,,,,,,,,,222222222000000000888888888 222222222222222222,,,,,,,,,888888888555555555777777777 222222222,,,,,,,,,222222222777777777000000000 222222222666666666,,,,,,,,,333333333222222222666666666 1966 888888888222222222,,,,,,,,,888888888333333333222222222 222222222777777777,,,,,,,,,111111111999999999222222222 222222222666666666,,,,,,,,,333333333222222222999999999 222222222,,,,,,,,,222222222222222222333333333 222222222777777777,,,,,,,,,000000000888888888888888888 1967 888888888777777777,,,,,,,,,111111111777777777111111111 222222222666666666,,,,,,,,,333333333222222222000000000 222222222999999999,,,,,,,,,555555555000000000444444444 222222222,,,,,,,,,333333333666666666999999999 222222222888888888,,,,,,,,,999999999777777777888888888 1968 999999999999999999,,,,,,,,,999999999888888888444444444 333333333111111111,,,,,,,,,000000000888888888333333333 333333333333333333,,,,,,,,,555555555000000000777777777 222222222,,,,,,,,,555555555333333333444444444 333333333222222222,,,,,,,,,888888888666666666000000000 1969 111111111000000000999999999,,,,,,,,,111111111444444444666666666 333333333222222222,,,,,,,,,555555555555555555333333333 333333333888888888,,,,,,,,,333333333333333333222222222 222222222,,,,,,,,,888888888333333333111111111 333333333555555555,,,,,,,,,444444444333333333000000000 1970 111111111111111111222222222,,,,,,,,,111111111555555555888888888 222222222999999999,,,,,,,,,777777777999999999444444444 444444444333333333,,,,,,,,,888888888777777777333333333 222222222,,,,,,,,,999999999666666666333333333 333333333555555555,,,,,,,,,555555555222222222888888888 1971 111111111222222222444444444,,,,,,,,,222222222888888888111111111 333333333444444444,,,,,,,,,888888888777777777333333333 444444444777777777,,,,,,,,,888888888222222222111111111 333333333,,,,,,,,,222222222444444444444444444 333333333888888888,,,,,,,,,333333333444444444333333333 1972 111111111444444444222222222,,,,,,,,,999999999555555555111111111 444444444000000000,,,,,,,,,111111111999999999444444444 555555555555555555,,,,,,,,,555555555999999999999999999 444444444,,,,,,,,,000000000000000000666666666 444444444333333333,,,,,,,,,111111111555555555222222222 111999777222———OOOccc ttt 12,404 111111111222222222,,,,,,,,,333333333333333333777777777 3,504 333333333,,,,,,,,,666666666666666666333333333 4,971 444444444,,,,,,,,,888888888333333333111111111 335 333333333444444444777777777 3,594 333333333,,,,,,,,,444444444999999999666666666 12,846 111111111222222222,,,,,,,,,888888888000000000666666666 3,620 333333333,,,,,,,,,555555555000000000555555555 5,118 555555555,,,,,,,,,222222222000000000222222222 327 333333333222222222111111111 3,781 333333333,,,,,,,,,777777777777777777888888888 DDDeeeccc 12,627 111111111333333333,,,,,,,,,666666666444444444333333333 3,763 333333333.........111111111999999999555555555 4,876 666666666,,,,,,,,,111111111777777777111111111 351 222222222888888888000000000 3,637 333333333,,,,,,,,,999999999999999999777777777 111999777333———JJJaaa nnn 13,304 111111111111111111,,,,,,,,,999999999222222222333333333 4,006 333333333,,,,,,,,,333333333999999999333333333 5,282 444444444,,,,,,,,,999999999444444444999999999 329 222222222555555555999999999 3,687 333333333,,,,,,,,,333333333222222222222222222 FFFeeebbb 13,434 111111111111111111,,,,,,,,,222222222111111111444444444 3,972 333333333,,,,,,,,,444444444000000000777777777 5,245 444444444,,,,,,,,,222222222555555555222222222 364 333333333000000000000000000 3,853 333333333,,,,,,,,,222222222555555555555555555 MMMaaarrr 13,852 111111111333333333,,,,,,,,,666666666888888888111111111 4,001 444444444,,,,,,,,,111111111666666666444444444 5,349 555555555,,,,,,,,,111111111666666666999999999 406 333333333777777777777777777 4,096 333333333,,,,,,,,,999999999777777777111111111 AAAppprrr 13,465 111111111333333333,,,,,,,,,666666666666666666111111111 3,822 444444444,,,,,,,,,111111111000000000111111111 5,563 555555555,,,,,,,,,333333333777777777888888888 365 333333333777777777222222222 3,715 333333333,,,,,,,,,888888888111111111000000000 MMMaaayyy 13,932 111111111444444444,,,,,,,,,777777777999999999222222222 3,989 444444444,,,,,,,,,444444444000000000999999999 5.504 555555555,,,,,,,,,666666666999999999888888888 374 444444444333333333111111111 4,065 444444444,,,,,,,,,222222222555555555444444444 JJJuuunnneee 13,646 111111111444444444,,,,,,,,,666666666000000000888888888 3,762 444444444,,,,,,,,,333333333111111111333333333 5.505 555555555,,,,,,,,,666666666777777777888888888 400 444444444555555555000000000 3,979 444444444,,,,,,,,,111111111666666666777777777 JJJuuulllyyy 14,542 111111111444444444,,,,,,,,,888888888111111111222222222 3,930 444444444,,,,,,,,,111111111777777777777777777 5,943 555555555,,,,,,,,,777777777555555555333333333 433 444444444777777777222222222 4,236 444444444,,,,,,,,,444444444111111111000000000 AAAuuuggg 14,294 111111111555555555,,,,,,,,,000000000999999999999999999 3,968 444444444,,,,,,,,,222222222555555555222222222 5,961 666666666,,,,,,,,,000000000666666666555555555 408 444444444777777777111111111 3,957 444444444,,,,,,,,,333333333111111111111111111 SSSeeepppttt 13,691 111111111222222222,,,,,,,,,666666666222222222444444444 3,939 333333333,,,,,,,,,444444444777777777666666666 5,537 555555555,,,,,,,,,222222222111111111777777777 410 444444444222222222000000000 3,805 333333333,,,,,,,,,555555555111111111111111111 OOOcccttt 14,149 111111111444444444,,,,,,,,,444444444555555555444444444 3,912 444444444.........111111111999999999666666666 5,911 555555555,,,,,,,,,888888888999999999444444444 415 444444444333333333999999999 3,911 333333333,,,,,,,,,999999999222222222555555555 Repayments 111999666555 777777777000000000,,,,,,,,,444444444666666666333333333 222222222333333333,,,,,,,,,777777777000000000666666666 222222222000000000,,,,,,,,,777777777000000000777777777 222222222,,,,,,,,,111111111111111111222222222 222222222333333333,,,,,,,,,999999999333333333888888888 1966 777777777777777777,,,,,,,,,444444444888888888000000000 222222222555555555,,,,,,,,,666666666111111111999999999 222222222444444444,,,,,,,,,000000000888888888000000000 222222222,,,,,,,,,111111111111111111888888888 222222222555555555,,,,,,,,,666666666666666666333333333 1967 888888888333333333,,,,,,,,,999999999888888888888888888 222222222666666666,,,,,,,,,555555555333333333444444444 222222222777777777,,,,,,,,,888888888444444444777777777 222222222,,,,,,,,,222222222000000000222222222 222222222777777777,,,,,,,,,444444444000000000555555555 1968 999999999111111111,,,,,,,,,666666666666666666777777777 222222222777777777,,,,,,,,,999999999333333333111111111 333333333111111111,,,,,,,,,222222222777777777000000000 222222222,,,,,,,,,333333333000000000333333333 333333333000000000,,,,,,,,,111111111666666666333333333 1969 999999999999999999,,,,,,,,,777777777888888888666666666 222222222999999999,,,,,,,,,999999999777777777444444444 333333333444444444,,,,,,,,,666666666444444444555555555 222222222,,,,,,,,,444444444555555555777777777 333333333222222222,,,,,,,,,777777777111111111000000000 1970 111111111000000000777777777,,,,,,,,,111111111999999999999999999 333333333000000000,,,,,,,,,111111111333333333777777777 444444444000000000,,,,,,,,,777777777222222222111111111 222222222,,,,,,,,,555555555000000000666666666 333333333333333333,,,,,,,,,888888888333333333555555555 1971 111111111111111111555555555,,,,,,,,,000000000555555555000000000 333333333111111111,,,,,,,,,333333333999999999333333333 444444444444444444,,,,,,,,,999999999333333333333333333 222222222,,,,,,,,,999999999000000000111111111 333333333555555555,,,,,,,,,888888888222222222333333333 1972 111111111222222222666666666,,,,,,,,,999999999111111111444444444 333333333444444444,,,,,,,,,777777777222222222999999999 444444444999999999,,,,,,,,,888888888777777777222222222 333333333,,,,,,,,,222222222111111111888888888 333333333999999999,,,,,,,,,000000000999999999555555555 111999777222———OOOccc ttt 10,908 111111111111111111,,,,,,,,,000000000222222222555555555 3,041 333333333,,,,,,,,,111111111444444444555555555 4,354 444444444,,,,,,,,,333333333666666666000000000 263 222222222777777777222222222 3,250 333333333,,,,,,,,,222222222444444444888888888 NNNooovvv 11,128 111111111000000000,,,,,,,,,999999999888888888666666666 3,023 222222222,,,,,,,,,999999999999999999333333333 4,444 444444444,,,,,,,,,333333333555555555444444444 271 222222222777777777111111111 3,390 333333333,,,,,,,,,333333333666666666888888888 DDDeeeccc 10,964 111111111000000000,,,,,,,,,666666666333333333666666666 2,977 222222222,,,,,,,,,777777777444444444000000000 4,341 444444444,,,,,,,,,111111111555555555555555555 263 222222222555555555333333333 3,383 333333333,,,,,,,,,444444444888888888888888888 111999777333———JJJaaa nnn 11,355 111111111111111111,,,,,,,,,888888888888888888777777777 3,097 333333333,,,,,,,,,111111111666666666999999999 4,649 555555555,,,,,,,,,000000000777777777777777777 267 222222222666666666777777777 3,342 333333333,,,,,,,,,333333333777777777444444444 FFFeeebbb 11,437 111111111000000000,,,,,,,,,666666666222222222333333333 3,145 222222222,,,,,,,,,999999999444444444333333333 4,627 444444444,,,,,,,,,444444444000000000999999999 275 222222222555555555444444444 3,390 333333333,,,,,,,,,000000000111111111777777777 MMMaaarrr 11,808 111111111222222222,,,,,,,,,222222222666666666555555555 3,225 333333333.........333333333777777777111111111 4,755 555555555,,,,,,,,,000000000111111111333333333 286 222222222888888888888888888 3,542 333333333,,,,,,,,,555555555999999999333333333 AAAppprrr 12,061 111111111222222222,,,,,,,,,000000000111111111444444444 3,218 333333333,,,,,,,,,222222222333333333333333333 4,963 444444444,,,,,,,,,888888888888888888888888888 294 222222222999999999222222222 3,586 333333333,,,,,,,,,666666666000000000111111111 MMMaaayyy 11,941 111111111222222222,,,,,,,,,222222222888888888333333333 3,261 333333333,,,,,,,,,333333333666666666999999999 4,917 555555555,,,,,,,,,000000000444444444333333333 290 222222222999999999888888888 3,473 333333333,,,,,,,,,555555555777777777333333333 JJJuuunnneee 12,034 111111111222222222,,,,,,,,,111111111222222222111111111 3,253 333333333,,,,,,,,,222222222888888888222222222 4,955 444444444,,,,,,,,,999999999222222222111111111 300 333333333000000000333333333 3,526 333333333,,,,,,,,,666666666111111111555555555 JJJuuulllyyy 12,544 111111111222222222,,,,,,,,,666666666111111111888888888 3,334 333333333,,,,,,,,,333333333777777777444444444 5,141 555555555,,,,,,,,,000000000333333333111111111 308 333333333111111111555555555 3,761 333333333,,,,,,,,,888888888999999999888888888 AAAuuuggg 12,399 111111111222222222,,,,,,,,,555555555000000000111111111 3,293 333333333.........333333333777777777222222222 5,168 555555555,,,,,,,,,111111111333333333555555555 298 333333333000000000777777777 3,640 333333333,,,,,,,,,666666666888888888777777777 SSSeeepppttt 12,332 111111111111111111,,,,,,,,,333333333444444444111111111 3,406 333333333,,,,,,,,,111111111555555555111111111 5,072 444444444,,,,,,,,,777777777000000000333333333 322 333333333000000000999999999 3,532 333333333,,,,,,,,,111111111777777777888888888 OOOcccttt 12,449 111111111222222222,,,,,,,,,999999999333333333777777777 3,427 333333333,,,,,,,,,666666666666666666111111111 5,149 555555555,,,,,,,,,222222222888888888111111111 308 333333333222222222444444444 3,565 333333333,,,,,,,,,666666666777777777111111111 Net change in credit outstanding 2 111999666555 888888888,,,,,,,,,111111111999999999888888888 333333333,,,,,,,,,555555555000000000222222222 222222222,,,,,,,,,111111111555555555000000000 111111111555555555888888888 222222222,,,,,,,,,333333333888888888888888888 1966 555555555,,,,,,,,,333333333555555555222222222 111111111,,,,,,,,,555555555777777777333333333 222222222,,,,,,,,,222222222444444444999999999 111111111000000000555555555 111111111,,,,,,,,,444444444222222222555555555 1967 333333333,,,,,,,,,111111111888888888333333333 ---------222222222111111111444444444 111111111,,,,,,,,,666666666555555555777777777 111111111666666666777777777 111111111,,,,,,,,,555555555777777777333333333 1968 888888888,,,,,,,,,333333333111111111777777777 333333333,,,,,,,,,111111111555555555222222222 222222222,,,,,,,,,222222222333333333777777777 222222222333333333111111111 222222222,,,,,,,,,666666666999999999777777777 1969 999999999,,,,,,,,,333333333666666666000000000 222222222,,,,,,,,,555555555777777777999999999 333333333,,,,,,,,,666666666888888888777777777 333333333777777777444444444 222222222,,,,,,,,,777777777222222222000000000 1970 444444444,,,,,,,,,999999999555555555999999999 ---------333333333444444444333333333 333333333,,,,,,,,,111111111555555555222222222 444444444555555555777777777 111111111.........666666666999999999333333333 1971 999999999,,,,,,,,,222222222333333333111111111 333333333,,,,,,,,,444444444888888888000000000 222222222,,,,,,,,,888888888888888888888888888 333333333444444444333333333 222222222,,,,,,,,,555555555222222222000000000 1972 111111111666666666,,,,,,,,,000000000333333333777777777 555555555,,,,,,,,,444444444666666666555555555 555555555,,,,,,,,,777777777222222222777777777 777777777888888888888888888 444444444,,,,,,,,,000000000555555555777777777 1972—Oc t 1,496 111111111,,,,,,,,,333333333111111111222222222 463 555555555111111111888888888 617 444444444777777777111111111 72 777777777555555555 344 222222222444444444888888888 Nov 1,718 111111111,,,,,,,,,888888888222222222000000000 597 555555555111111111222222222 674 888888888444444444888888888 56 555555555000000000 391 444444444111111111000000000 Dec 1,663 333333333,,,,,,,,,000000000000000000777777777 786 444444444555555555555555555 535 222222222,,,,,,,,,000000000111111111666666666 88 222222222777777777 254 555555555000000000999999999 1973—Jan . 1,949 333333333666666666 909 222222222222222222444444444 633 ---------111111111222222222888888888 62 ---------888888888 345 ---------555555555222222222 Feb 1.997 555555555999999999111111111 827 444444444666666666444444444 618 ---------111111111555555555777777777 89 444444444666666666 463 222222222333333333888888888 Mar 2,044 111111111,,,,,,,,,444444444111111111666666666 776 777777777999999999333333333 594 111111111555555555666666666 120 888888888999999999 554 333333333777777777888888888 Apr 1,404 111111111,,,,,,,,,666666666444444444777777777 604 888888888666666666888888888 600 444444444999999999000000000 71 888888888000000000 129 222222222000000000999999999 May 1,991 222222222,,,,,,,,,555555555000000000999999999 728 111111111,,,,,,,,,000000000444444444000000000 587 666666666555555555555555555 84 111111111333333333333333333 592 666666666888888888111111111 June 1,612 222222222,,,,,,,,,444444444888888888777777777 509 111111111,,,,,,,,,000000000333333333111111111 550 777777777555555555777777777 100 111111111444444444777777777 453 555555555555555555222222222 July 1.998 222222222,,,,,,,,,111111111999999999444444444 596 888888888000000000333333333 802 777777777222222222222222222 125 111111111555555555777777777 475 555555555111111111222222222 Aug 1,895 222222222,,,,,,,,,555555555999999999888888888 675 888888888888888888000000000 793 999999999333333333000000000 110 111111111666666666444444444 317 666666666222222222444444444 Sept 1,359 111111111,,,,,,,,,222222222888888888333333333 533 333333333222222222555555555 465 555555555111111111444444444 88 111111111111111111111111111 273 333333333333333333333333333 Oct 1,700 111111111,,,,,,,,,555555555111111111777777777 485 555555555333333333555555555 762 666666666111111111333333333 107 111111111111111111555555555 346 222222222555555555444444444 1 Includes adjustments for differences in trading days. sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less re- the amount of extensions and repayments without affecting the amount payments. outstanding. For back figures and description of the data, see "Consumer NOTE.—Estimates are based on accounting records and often include Credit," Section 16 (New) of Supplement to Banking and Monetary financing charges. Renewals and refinancing of loans, purchases and Statistics, 1965, and BULLETINS for Dec. 1968 and Oct. 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 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———OOOccc ttt 12,404 111111111222222222,,,,,,,,,333333333333333333777777777 5,227 555555555,,,,,,,,,222222222222222222444444444 3,334 333333333,,,,,,,,,333333333444444444888888888 1.705 111111111,,,,,,,,,666666666777777777999999999 2,138 222222222,,,,,,,,,000000000888888888666666666 NNNooovvv 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 MMMaaarrr 13,852 111111111333333333,,,,,,,,,666666666888888888111111111 5,853 555555555,,,,,,,,,888888888999999999000000000 3,654 333333333,,,,,,,,,555555555999999999888888888 2,131 222222222,,,,,,,,,000000000888888888333333333 2,214 222222222,,,,,,,,,111111111111111111000000000 AAAppprrr 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 JJJuuunnneee 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 AAAuuuggg 14,294 111111111555555555,,,,,,,,,000000000999999999999999999 6,195 666666666,,,,,,,,,555555555111111111888888888 3,685 333333333,,,,,,,,,888888888777777777777777777 1,943 222222222,,,,,,,,,111111111999999999444444444 2,471 222222222,,,,,,,,,555555555111111111000000000 SSSeeepppttt 13,691 111111111222222222,,,,,,,,,666666666222222222444444444 5,809 555555555,,,,,,,,,333333333777777777666666666 3,602 333333333,,,,,,,,,111111111888888888999999999 2,019 111111111,,,,,,,,,999999999111111111222222222 2,261 222222222,,,,,,,,,111111111444444444777777777 OOOcccttt 14,149 111111111444444444,,,,,,,,,444444444555555555444444444 6,060 666666666,,,,,,,,,111111111666666666999999999 3,623 333333333,,,,,,,,,777777777666666666555555555 1,951 111111111,,,,,,,,,999999999666666666888888888 2,515 222222222,,,,,,,,,555555555555555555222222222 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———OOOccc ttt 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———JJJaaa nnn 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 AAAppprrr 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 SSSeeepppttt 12,332 111111111111111111,,,,,,,,,333333333444444444111111111 5,167 444444444,,,,,,,,,888888888333333333999999999 3,144 222222222,,,,,,,,,888888888333333333000000000 1,757 111111111,,,,,,,,,555555555999999999111111111 2,264 222222222,,,,,,,,,000000000888888888111111111 OOOcccttt 12,449 111111111222222222,,,,,,,,,999999999333333333777777777 5,212 555555555,,,,,,,,,444444444666666666000000000 3,287 333333333,,,,,,,,,333333333999999999333333333 1,703 111111111,,,,,,,,,777777777888888888222222222 2,247 222222222,,,,,,,,,333333333000000000222222222 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—Oc t 1,496 111111111,,,,,,,,,333333333111111111222222222 819 777777777000000000000000000 311 333333333222222222000000000 155 111111111000000000777777777 211 111111111888888888555555555 Nov 1,718 111111111,,,,,,,,,888888888222222222000000000 882 666666666111111111222222222 373 444444444555555555777777777 214 111111111999999999999999999 249 555555555555555555222222222 Dec 1,663 333333333,,,,,,,,,000000000000000000777777777 828 999999999000000000555555555 403 666666666666666666111111111 230 111111111444444444333333333 202 111111111,,,,,,,,,222222222999999999888888888 1973—Ja n 1,949 333333333666666666 1,028 333333333666666666555555555 484 888888888999999999 174 ---------111111111444444444666666666 263 ---------222222222777777777222222222 Feb 1.997 555555555999999999111111111 980 444444444333333333444444444 527 222222222555555555444444444 339 222222222555555555222222222 151 ---------333333333444444444999999999 Mar 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 May 1,991 222222222,,,,,,,,,555555555000000000999999999 883 111111111,,,,,,,,,222222222444444444888888888 720 777777777888888888111111111 256 444444444000000000999999999 132 777777777111111111 June 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 Aug 1,895 222222222,,,,,,,,,555555555999999999888888888 1,049 111111111,,,,,,,,,333333333111111111666666666 444 666666666111111111444444444 205 444444444111111111444444444 197 222222222555555555444444444 Sept 1,359 111111111,,,,,,,,,222222222888888888333333333 642 555555555333333333777777777 458 333333333555555555999999999 262 333333333222222222111111111 -3 666666666666666666 Oct 1,700 111111111,,,,,,,,,555555555111111111777777777 848 777777777000000000999999999 336 333333333777777777222222222 248 111111111888888888666666666 268 222222222555555555000000000 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. • DECEMBER 1973 MARKET GROUPINGS (1967 = 100) 1967 1972 1972 1973 pro- Grouping p ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Oct. Total index 100.0 115.2 119.2 120.2 121.1 122.2 123.4 123.7 124.1 124.8 125.6 126.7 126.5 126.8 127.0 Products, total 62.21 113.8 117.3 118.6 119.1 120.7 121.5 121.7 122.0 122.9 123.7 124.2 123.7 124.3 124.5 Final products 48.95 111.9 115.3 116.3 116.8 118.6 119.3 119.6 120.0 120.8 121.3 122.1 121.4 122.6 122.8 Consumer goods 28.53 123.6 127.0 127.4 127.7 129.8 130.2 130.8 130.9 131.8 131.9 132.8 131.2 132.4 132.9 Equipment 20.42 95.5 98.9 100.7 101.5 102.9 104.1 104.1 104.7 105.7 106.6 107.3 107.6 109.0 108.6 Intermediate products 13.26 121.1 124.7 127.6 127.7 128.4 129.5 129.4 129.3 130.5 132.0 132.5 132.1 131.0 130.9 Materials 37.79 117.4 122.3 122.8 124.4 124.5 126.7 127.0 127.7 128.3 129.0 130.9 130.9 131.3 131.2 Consumer goods Durable consumer goods 7.86 125.7 129.1 131.0 135.0 136.0 137.8 140.4 140.5 141.5 141.8 142.4 134.0 138.2 139.1 Automotive products 2.84 127.7 132.3 138.3 142.9 138.6 141.7 144.1 141.7 142.6 142.6 141.7 121.1 129.8 132.5 Autos 1.87 112.7 118.9 126.6 133.9 130.2 131.5 130.8 128.1 129.8 132.6 134.0 103.9 118.4 122.5 Auto parts and allied goods... .97 156.5 158.0 160.6 160.0 155.0 161.4 169.9 167.5 167.0 161.9 156.7 154.2 151.8 151.5 Home goods , 5.02 124.5 127.3 126.9 130.5 134.5 135.8 138.3 139.8 140.9 141.3 142.9 141.1 143.0 142.9 Appliances, TV, and radios 1.41 124.6 124.1 121.7 133.3 140.7 137.8 143.0 149.7 148.0 147.2 147.8 146.3 150.2 150.3 Appliances and A/C .92 144.5 147.9 141.9 151.1 153.2 153.8 156.9 157.6 157.8 154.1 156.0 153.3 159.5 159.4 TV and home audio .49 87.5 79.4 83.9 99.9 117.4 108.0 116.8 135.0 129.6 134.3 132.8 Carpeting and furniture 1.08 132.6 137.6 137.6 139.0 142.1 145.0 145.7 146.7 147.8 148.9 155.4 154.2 153.3 153.9 Misc. home goods 2.53 121.0 124.7 125.2 125.3 127.5 130.9 132.7 131.4 134.0 134.7 134.7 132.9 134.8 134.1 Nondurable consumer goods 20.67 122.8 126.2 126.0 125.0 127.4 127.3 127.1 127.2 128.0 128.1 129.1 130.2 130.1 130.7 Clothing 4.32 122.8 113.5 114.8 112.2 115.1 115.2 115.4 114.5 114.2 116.0 116.5 117.0 118.0 Consumer staples 16.34 109.7 129.5 128.9 128.4 130.7 130.5 130.3 130.6 131.7 131.4 132.5 133.6 133.4 i 34.5 Consumer foods and tobacco.. 8.37 117.5 119.5 119.9 119.1 121.1 121.5 120.9 121.0 120.9 119.6 121.3 121.9 122.5 123.2 Nonfood staples 7.98 135.3 140.0 138.3 138.1 140.9 140.0 140.1 140.7 143.1 143.7 144.1 145.8 144.8 146.5 Consumer chemical products, 2.64 144.6 149.1 145.1 143.9 148.8 149.9 151.1 151.5 154.9 153.5 153.0 155.6 153.4 156.5 Consumer paper products..., 1.91 114.8 118.6 119.3 119.3 119.1 119.4 118.7 119.0 121.7 121.7 122.5 124.1 124.4 124.0 Consumer fuel and lighting .. 3.43 139.5 144.7 143.7 144.1 147.1 144.0 143.8 144.4 145.6 148.2 149.2 150.4 149.7 151.2 Residential utilities 2.25 147.8 153.0 152.5 153.6 156.5 154.4 153.5 152.3 152.1 155.4 157.8 160.0 160.9 161.2 Equipment Business equipment 12.74 106.1 111.6 113.4 114.4 116.9 118.2 118.6 119.6 121.3 122.5 123.0 124.6 126.5 125.8 Industrial equipment 6.77 102.5 109.1 110.4 111.5 113.0 114.5 115.6 117.4 119.1 119.8 120.5 122.5 124.4 124.2 Building and mining equip 1.45 104.8 108.3 108.7 112.3 113.0 115.1 116.0 118.1 118.8 119.1 119.6 123.0 124.2 125.2 Manufacturing equipment 3.85 92.7 101.0 102.6 102.5 104.7 106.1 107.5 109.4 112.0 113.1 113.9 115.1 117.3 117.2 Power equipment 1.47 125.6 131.2 132.9 134.1 134.6 135.5 137.1 137.6 138.2 138.3 138.5 141.0 143.7 141.1 Commercial, transit, farm eq 5.97 110.3 114.4 116.6 117.6 121.4 122.4 121.9 122.2 123.7 125.4 125.8 127.0 128.8 127.7 Commercial equipment 3.30 118.4 123.9 125.5 126.5 128.8 129.9 130.6 131.3 131.6 134.1 135.9 137.0 140.2 138.4 Transit equipment 2.00 96.8 96.8 101.9 101.7 110.0 111.8 110.2 107.5 109.8 109.7 109.0 108.4 109.6 109.4 Farm equipment .67 110.5 120.3 116.3 120.0 118.3 117.6 114.6 120.9 126.5 129.3 126.4 132.8 129.4 129.4 Defense and space equipment 7.68 77.9 77.9 79.6 80.1 79.8 80.6 80.1 80.0 79.7 80.1 81.1 79.7 79.8 80.0 5.15 80.1 79.4 81.5 81.8 81.0 82.0 81.5 81.0 80.1 80.0 81.1 79.0 79.1 79.2 Military products Intermediate products 5.93 120.8 125.6 130.0 128.7 129.6 130.3 130.7 132.2 132.2 135.9 134.5 135.3 134.9 135.0 Construction products 7.34 121.3 123.9 125.9 126.9 127.4 128.9 128.3 127.0 129.2 128.9 132.7 129.6 128.1 127.1 Misc. intermediate products Materials 20.91 113.5 120.2 121.4 123.5 124.1 126.6 127.6 127.9 128.6 129.2 131.7 131.8 132.5 133.0 4.75 113.8 119.0 120.5 123.6 123.9 125.4 125.9 129.0 125.7 128.8 126.9 128.6 129.9 128.7 Durable goods materials 5.41 99.3 107.5 109.7 112.0 111.6 113.0 114.6 113.8 118.0 118.2 124.5 122.3 122.1 123.4 Consumer durable parts 10.75 120.6 127.2 127.7 129.2 130.6 134.2 134.9 134.7 135.3 134.9 137.6 138.0 139.0 139.6 Equipment parts Durable materials nec 13.99 122.5 125.3 124.6 126.4 126.3 127.7 127.1 128.5 128.9 129.4 130.4 130.6 129.8 129.3 Nondurable goods materials 8.58 129.2 132.9 132.9 136.0 136.0 136.5 136.3 138.8 139.4 140.2 142.2 142.4 141.2 140.5 Textile, paper, and chem. mat.... 5.41 111.9 113.3 111.8 111.4 110.9 113.9 112.7 112.2 112.3 112.3 112.1 111.7 112.0 111.5 Nondurable materials n.e.c 2.89 120.9 123.2 122.6 119.5 120.6 122.7 122.6 122.1 122.9 125.3 126.9 126.3 128.7 127.6 Fuel and power, industrial Supplementary groups Home goods and clothing 9.34 117.7 120.9 121.1 122.0 125.5 126.3 127.6 128.1 128.6 129.7 130.7 130.0 131.5 130.5 Containers 1.82 129.7 133.2 134.1 135.0 137.1 138.8 145.2 139.1 138.0 141.4 135.1 140.5 139.8 137.8 Gross value of products in market structure (In billions of 1963 dollars) Products, total 444444333333000000......000000 444444333333555555......777777 444444333333777777......333333 444444444444222222......888888 444444444444555555......777777 444444444444666666......999999 444444444444666666......222222 444444444444999999......777777 444444555555111111......888888 444444555555222222......999999 444444444444666666......222222 444444555555000000......555555 444444555555333333......444444 Final products 333333333333111111......666666 333333333333444444......777777 333333333333666666......333333 333333444444000000......555555 333333444444222222......777777 333333444444333333......999999 333333444444333333......777777 333333444444666666......666666 333333444444777777......888888 333333444444777777......777777 333333444444111111......999999 333333444444666666......999999 333333555555000000......000000 Consumer goods... 222222333333333333......111111 222222333333444444......444444 222222333333555555......999999 222222333333777777......666666 222222333333888888......222222 222222333333999999......555555 222222333333888888......999999 222222444444111111......111111 222222444444111111......333333 222222444444111111......000000 222222333333555555......444444 222222333333999999......222222 222222444444222222......444444 Equipment 999999888888......555555 111111000000000000......222222 111111000000000000......666666 111111000000333333......000000 111111000000444444......666666 111111000000444444......555555 111111000000444444......888888 111111000000555555......666666 111111000000666666......666666 111111000000666666......666666 111111000000666666......666666 111111000000777777......888888 111111000000777777......888888 Intermediate products. 999999888888......333333 111111000000000000......888888 111111000000111111......333333 111111000000222222......222222 111111000000333333......000000 111111000000222222......777777 111111000000222222......333333 111111000000333333......111111 111111000000444444......333333 111111000000444444......888888 111111000000444444......666666 111111000000333333......555555 111111000000333333......444444 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Manufacturing 88.55 114.0 118.5 119.5 120.4 121.4 122.7 123.4 123.8 124.9 125.6 126.5 126.1 126.4 126.4 Durable 52.33 108.4 113.8 115.3 116.3 117.5 118.7 119.9 120.6 121.8 123.0 123.8 122.6 123.4 123.9 Nondurable 36.22 122.1 125.2 125.6 126.2 127.0 1-28.4 128.6 128.4 129.3 129.3 130.5 130.9 130.7 130.1 Mining and utilities 11.45 124.1 126.6 126.7 126.1 127.3 128.0 127.3 126.6 127.0 128.2 130.4 130.7 131.4 131.4 6.37 108.8 110.2 109.7 108.2 108.5 110.2 109.5 109.0 109.1 109.5 111.0 111.5 112.0 112.1 Utilities 5.08 143.4 147.1 148.2 148.5 151.0 150.5 149.6 148.7 149.5 151.5 154.8 154.8 155.8 155.6 Durable manufactures Primary and fabricated metals 12.55 113.9 121.3 122.6 124.0 124.3 125.4 125.8 127.3 128.1 128.7 130.6 129.5 129.8 131.5 Primary metals 6.61 113.1 122.1 122.9 125.4 123.1 124.7 123.5 125.8 126.1 124.5 128.1 125.6 128.4 130.2 Iron and steel, subtotal 4.23 107.1 118.4 119.2 120.0 118.6 120.0 117.5 119.7 119.8 119.9 120.9 118.5 122.0 122.9 Fabricated metal products 5.94 114.8 120.4 122.2 122.3 125.7 126.2 128.4 128.9 130.3 133.4 133.5 133.8 131.5 132.7 Machinery and allied goods 32.44 103.5 108.2 110.1 111.2 112.5 113.7 115.1 115.7 117.3 118.8 119.3 117.7 118.9 118.9 Machinery 17.39 107.5 114.0 115.7 116.8 118.4 119.1 121.4 122.6 124.7 126.9 127.6 128.5 130.0 129.0 Nonelectrical machinery 9.17 105.7 113.5 115.3 114.4 116.3 117.3 119.0 121.5 124.0 126.1 127.1 128.9 130.0 128.6 Electrical machinery 8.22 109.6 114.7 116.1 119.6 120.8 121.2 123.9 123.8 125.4 127.8 128.0 128.2 130.0 129.5 Transportation equipment 9.29 99.0 102.7 105.0 106.6 107.6 110.0 110.3 110.0 111.0 112.2 112.1 105.7 107.3 109.2 Motor vehicles and parts 4.56 123.1 128.7 132.3 135.9 139.3 141.5 141.0 140.1 140.9 143.3 144.1 131.0 133.9 136.1 Aerospace and misc. trans, eq... 4.73 75.8 77.6 78.7 78.3 77.1 79.7 80.8 81.1 82.2 82.2 81.3 81.3 81.7 83.2 Instruments 2.07 120.2 125.0 125.1 126.6 130.1 131.9 133.8 134.7 138.9 140.2 140.8 140.9 141.5 140.9 3.69 86.0 85.2 87.3 87.8 87.0 87.6 87.1 86.4 85.4 86.7 86.7 83.8 83.7 83.5 Lumber, clay, and glass 4.44 120.0 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 129.2 129.8 129.2 128.8 130.4 Lumber and products 1.65 122.4 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.5 126.6 125.4 128.4 128.9 131.1 Clay, glass, and stone products.... 2.79 118.6 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.5 132.3 129.6 128.8 130.0 Furniture and miscellaneous 2.90 122.7 126.9 126.6 127.7 130.3 132.8 133.4 133.1 136.0 135.4 135.9 137.5 138.2 136.0 Furniture and fixtures 1.38 113.5 117.6 118.5 120.3 119.1 122.3 122.8 123.8 126.5 126.5 127.5 129.5 130.4 128.7 Miscellaneous manufactures 1.52 131.1 135.4 134.0 134.5 140.5 142.4 143.0 141.6 144.5 143.6 143.5 144.9 145.3 142.8 Nondurable manufactures 6.90 108.1 112.1 113.0 113.2 113.4 114.4 114.6 114.0 113.3 115.0 114.5 115.4 117.2 116.2 Textile mill products 2.69 117.4 123.2 125.7 124.2 125.3 126.1 127.1 126.1 127.2 129.2 128.9 129.0 129.4 129.3 Apparel products. 3.33 105.7 109.5 110.1 111.1 112.3 112.6 112.4 111.7 110.0 111.0 112.1 113.6 115.4 .88 88.9 88.0 85.9 87.4 81.3 85.1 85.0 86.8 83.0 86.6 79.2 81.0 86.4 83! i Paper and printing 7.92 116.1 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 122.8 123.8 124.5 122.1 120.6 Paper and products 3.18 128.2 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 134.6 135.3 137.0 134.8 133.1 4.74 107.9 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 114.8 116.0 116.2 113.6 112.1 Chemicals, petroleum, and rubber.... 11.92 137.8 141.6 142.0 143.8 145.5 146.3 146.3 147.9 150.2 149.8 151.8 151.0 150.7 151.2 Chemicals and products 7.86 139.6 143.9 143.2 144.7 146.4 147.2 146.8 147.8 150.2 150.4 152.0 151.4 152.7 153.1 Petroleum products 1.80 120.6 123.8 124.4 125.5 127.3 124.1 123.5 126.9 128.5 129.7 129.3 128.2 126.0 129.2 Rubber and plastics products 2.26 145.5 148.4 151.5 154.7 157.1 160.4 163.4 165.1 166.8 163.9 168.8 167.9 163.6 162.1 Foods and tobacco 9.48 117.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 121.5 119.5 121.3 122.0 122.6 121.6 Foods 8.81 118.6 119.0 119.4 119.7 120.5 122.9 121.8 121.3 122.4 120.3 122.4 122.9 123.5 122.6 Tobacco products .67 103.7 111.8 112.5 102.5 107.9 110.3 118.1 112.9 111.2 108.1 105.3 110.1 109.1 Mining Metal, stone, and earth minerals 1.26 107.3 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.8 116.9 120.6 120.3 120.9 .51 120.9 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.0 121.6 128.4 131.4 136.2 137.9 Stone and earth minerals .75 98.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2 Coal, oil, and gas 5.11 109.2 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.3 108.9 109.5 109.2 110.0 110.0 Coal .69 104.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 108.0 109.0 104.0 110.0 104.9 4.42 110.0 111.5 110.0 108.2 107.7 109.1 107.9 108.3 108.4 109.1 109.5 110.0 110.0 110.8 Utilities 3.91 149.4 154.2 155.2 155.6 159.1 158.3 157.4 156.2 156.8 159.7 164.0 163.8 165.1 164.6 11..1177 112233..44 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. • DECEMBER 1973 MARKET GROUPINGS (1967 = 100) 1967 1972 1972 1973 pro- aver- Grouping p ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Total index 100.0 115.2 122.7 120.4 117.3 118.9 123.6 124.6 124.5 125.6 128.9 122.4 126.7 131.1 Products, total , 62.21 113.8 121.9 118.5 114.2 116.6 120.6 121.8 121.2 122.4 127.3 121.6 125.1 130.7 Final products 48.95 111.9 119.7 116.1 112.0 115.3 119.1 120.0 118.9 120.0 125.1 118.9 122.2 128.8 Consumer goods 28.53 123.6 133.2 126.8 120.2 125.3 129.2 130.8 129.2 130.3 136.4 128.6 134.1 141.9 Equipment 20.42 95.5 100.8 101.1 100.5 101.4 104.9 105.0 104.6 105.5 109.2 105.2 105.7 110.3 Intermediate products 13.26 121.1 130.1 127.5 122.2 121.2 126.1 128.5 129.6 131.4 135.2 131.8 135.5 137.6 Materials 37.9 117.4 124.0 123.5 122.5 122.8 128.6 129.2 129.9 130.9 131.4 123.7 129.2 131.8 Consumer goods Durable consumer goods 7.86 125.7 140.2 134.8 125.1 133.3 140.6 143.5 141.3 142.7 147.5 129.2 126.9 146.4 Automotive products 2.84 127.7 147.0 141.9 123.9 138.5 149.1 151.5 147.6 147.4 154.4 124.3 100.5 136.6 Autos 1.87 112.7 135.6 132.9 109.8 134.8 144.6 143.9 135.8 138.2 148.5 108.5 69.1 121.9 Auto parts and allied goods.... .97 156.5 168.9 159.0 150.9 145.7 157.7 166.0 170.2 165.0 165.8 154.5 160.8 164.9 Home goods 5.02 124.5 136.3 130.8 125.8 130.3 135.8 138.9 137.7 140.1 143.6 132.0 141.8 152.0 Appliances, TV, and home audio 1.41 124.6 142.7 129.1 122.0 139.7 142.6 149.0 148.2 148.5 146.8 130.1 135.0 162.6 Appliances and A/C .92 144.5 164.9 143.5 134.6 153.7 157.0 166.2 165.6 166.1 162.7 150.5 134.1 168.4 TV and home audio .49 87.5 101.2 102.2 98.4 113.6 115.7 116.9 115.4 115.7 117.1 91.9 Carpeting and furniture 1.08 132.6 139.7 140.8 140.0 141.0 150.2 149.1 146.1 146.3 151.1 134.4 156.5 159.1 Misc. home goods 2.53 121.0 131.3 127.6 121.9 120.4 125.9 129.0 128.2 132.7 138.6 132.1 139.3 143.0 Nondurable consumer goods 20.67 122. 130.6 123.7 118.4 122.2 124.9 126.0 124.6 125.6 132.2 128.4 136.8 140.3 Clothing 4.32 109.7 118.0 112.5 103.0 105.9 116.6 120.0 119.3 115.3 122.4 104.3 121.7 124.3 Consumer staples 16.34 126.2 133.9 126.7 122.5 126.5 127.1 127.6 126.0 128.3 134.8 134.8 140.8 144.5 Consumer foods and tobacco... 8.37 117.5 125.9 119.3 111.6 113.8 117.0 118.4 117.8 120.7 123.8 120.2 128.0 133.5 Nonfood staples 7.98 135.3 142.2 134.4 134.0 139.9 137.8 137.2 134.7 136.2 146.3 150.1 154.3 156.0 Consumer chemical products. 2.64 144.6 157.4 145.0 133.8 139.9 140.2 147.3 146.9 154.0 164.2 157.6 157.5 166.4 Consumer paper products.... 1.91 114.8 124.9 118.5 113.2 112.4 116.2 115.5 117.8 117.0 125.1 123.1 133.2 132.1 Consumer fuel and lighting.. 3.43 139.5 140.1 135.1 145.8 155.3 148.0 141.6 134.6 133.2 144.4 159.5 163.6 161.4 Residential utilities 2.25 147.8 146.4 139.4 154.5 168.5 160.1 151.8 140.4 135.5 148.7 172.3 178.9 177.5 Equipment Business equipment 12.74 106.1 114.5 113.7 112.0 114.4 119.6 119.8 119.7 121.1 126.4 120.3 121.9 128.6 Industrial equipment 6.77 102.5 111.2 111.2 110.6 111.6 116.4 116.8 116.8 117.9 122.6 117.4 121.0 126.1 Building and mining equip 1.45 104.8 111.7 113.0 114.3 112.0 118.6 117.2 115:7 115.6 120.2 115.9 119.3 128.3 Manufacturing equipment 3.85 92.7 102.0 102.3 101.7 103.4 108.9 109.6 109.3 111.4 116.2 108.8 115.7 118.6 Power equipment 1.47 134.6 132.9 130.2 132.7 133.9 135.3 137.3 137.1 141.8 141.3 136.7 143.7 Commercial, transit, farm eq 5.97 110.3 118.3 116.5 113.6 117.6 123.3 123.2 122.9 124.7 130.7 123.5 122.9 131.5 Commercial equipment 3.30 118.4 126.0 125.2 122.3 123.0 127.8 126.9 129.1 131.6 140.1 139.3 140.4 144.7 Transit equipment 2.00 96.8 104.0 104.6 99.2 108.1 114.8 114.9 110.8 112.0 113.8 102.6 96.8 108.0 Farm equipment .67 110.5 123.2 109.0 113.2 118.9 126.2 129.7 128.2 128.6 134.9 108.2 113.9 136.3 Defense and space equipment 7.68 78.0 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.7 80.0 78.8 79.9 5.15 80.1 79.1 81.7 82.4 81.2 81.9 81.8 80.8 80.3 81.3 80.5 78.4 79.0 Military products Intermediate products 5.93 131.0 128.3 121.9 120.5 128.0 131.9 135.0 136.4 140.7 131.6 136.0 139.8 Construction products 7.34 121.3 129.3 126.9 122.5 121.7 124.5 125.7 125.2 127.4 130.7 131.9 135.0 135.9 Misc. intermediate products Materials 20.91 121.3 121.0 121.8 121.6 128.8 130.7 131.2 132.2 132.8 124.4 128.9 133.5 4.75 113.8 120.5 122.1 126.8 126.8 129.3 129.4 130.0 128.8 130.5 120.4 122.9 128.7 Durable goods materials 5.41 99.3 107.2 108.7 111.0 110.8 114.7 117.5 117.4 118.7 120.7 116.3 119.4 123.3 Consumer durable parts 10.75 128.7 126.7 125.1 124.7 135.7 137.9 138.7 140.6 139.9 130.3 136.3 140.8 Equipment parts Durable materials n.e.c 13.99 128.2 127.1 123.9 124.5 129.2 128.2 129.4 130.7 130.8 123.4 130.1 130.1 Nondurable goods materials 8.58 135.7 135.6 131.8 133.7 139.6 139.0 140.9 142.2 142.2 132.1 141.3 141.2 Textile, paper, and chem. mat 5.41 116.4 113.7 111.4 110.0 112.8 111.2 111.1 112.6 112.7 109.7 112.4 112.4 Nondurable materials n.e.c 2.89 123.3 123.6 120.3 122.6 124.5 123.2 122.3 122.7 123.9 119.9 126.6 127.9 Fuel and power, industrial Supplementary groups Home goods and clothing 9.34 127.8 122.3 115.3 119.0 126.9 130.2 129.2 128.6 133.8 119.2 132.5 139.2 Containers 1.82 141.3 133.3 125.0 129.4 140.5 142.6 139.4 140.9 145.8 131.2 144.6 142.9 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Oct. Manufacturing, total 88.55 114.0 122.2 120.0 116.3 117.6 123.2 124.6 124.7 125.8 128.9 121.1 125.3 130.3 130.4 Durable 52.33 108.4 116.4 115.3 113.3 114.9 121.0 122.5 122.4 123.2 125.8 117.9 119.3 126.1 126.8 Nondurable 36.22 122.1 130.6 126.7 120.6 121.5 126.3 127.7 128.0 129.5 133.3 125.6 133.9 136.3 135.6 Mining and utilities 11.45 124.1 126.5 123.8 125.2 128.6 127.5 125.0 122.7 123.6 128.2 133.0 137.2 137.2 132.0 6.37 108.8 111.3 110.6 109.2 107.0 109.2 107.6 108.5 110.7 110.9 108.3 112.3 112.7 113.1 Utilities 5.08 143.4 145.5 140.5 145.4 155.7 150.6 146.8 140.5 139.9 149.9 164.1 168.4 168.0 155.8 Durable manufactures Primary and fabricated metals 12.55 113.9 121.1 120.3 120.5 120.4 130.0 132.1 131.7 131.2 130.5 121.6 125.5 131.5 131.2 Primary metals 6.61 113.1 119.4 117.1 118.9 118.5 131.3 133.8 133.9 131.7 127.7 116.4 121.6 129.9 127.3 Iron and steel, subtotal 4.23 107.1 113.4 110.9 114.2 112.3 125.8 128.3 128.5 125.8 121.1 112.7 117.1 124.9 117.7 Fabricated metal products 5.94 114.8 123.0 123.9 122.3 122.6 128.5 130.1 129.3 130.7 133.7 127.5 129.8 133.3 135.6 Machinery and allied goods 32.44 103.5 111.3 110.6 109.0 111.8 116.0 117.1 116.7 117.9 121.7 114.1 113.0 121.2 122.5 Machinery 17.39 107.5 117.1 115.0 114.6 116.9 121.8 123.3 123.5 124.9 129.4 122.2 125.8 133.1 132.6 Nonelectrical machinery 9.17 105.7 114.3 113.1 112.5 114.0 121.2 122.2 122.3 124.0 129.6 122.9 126.3 132.2 129.5 Electrical machinery 8.22 109.6 120.3 117.1 117.0 120.2 122.4 124.5 124.8 125.9 129.2 121.4 125.2 134.2 136.0 Transportation equipment 9.29 99.0 107.2 108.0 103.2 108.7 113.5 114.0 112.8 113.4 116.3 104.0 94.0 108.3 114.0 Motor vehicles and parts 4.56 123.1 137.5 138.3 129.2 142.6 148.6 147.3 144.9 145.6 151.2 129.0 108.5 135.2 145.5 Aerospace and misc. trans, eq. .. 4.73 75.8 78.0 78.9 78.1 76.0 79.6 82.0 81.8 82.4 82.7 79.8 80.1 82.4 83.6 Instruments 2.07 120.2 128.9 126.5 125.3 126.3 128.1 131.5 130.5 137.5 143.1 140.8 143.9 147.4 145.3 Ordnance, private and Govt 3.69 86.0 84.6 87.4 88.2 87.5 87.9 87.8 86.4 85.6 87.1 86.0 82.8 83.4 82.9 Lumber, clay, and glass 4.44 120.0 130.9 124.5 115.4 115.3 123.2 127.2 130.9 132.8 135.1 128.9 134.9 134.5 136.7 Lumber and products 1.65 122.4 133.0 124.8 111.9 115.6 128.4 130.5 131.3 128.6 132.3 123.3 132.8 134.4 137.0 Clay, glass, and stone products.... 2.79 118.6 129.7 124.3 117.5 115.1 120.1 125.3 130.7 135.3 136.8 132.3 136.2 134.6 136.5 Furniture and miscellaneous 2.90 122.7 131.1 131.3 127.6 126.1 134.3 133.9 132.4 132.5 137.2 127.6 138.9 142.9 140.4 Furniture and fixtures 1.38 113.5 118.8 122.1 121.5 121.6 128.7 127.3 124.2 123.0 125.7 114.5 128.7 131.7 130.0 Miscellaneous manufactures 1.52 131.1 142.2 139.6 133.2 130.2 139.4 139.9 139.9 141.2 147.6 139.5 148.2 153.1 149.9 Nondurable manufactures Textiles, apparel, and leather 6.90 108.1 115.3 112.0 103.9 106.4 115.4 118.2 116.9 113.8 120.4 102.0 120.0 121.4 119.5 Textile mill products 2.69 117.4 125.7 125.1 117.0 117.8 126.1 129.6 128.7 129.1 135.0 112.1 133.6 132.4 131.9 Apparel products 3.33 105.7 113.0 108.2 98.7 103.9 113.7 116.3 115.6 110.0 117.4 102.6 118.1 121.7 Leather and products .88 88.9 92.1 86.5 83.3 80.6 88.7 89.9 85.8 81.3 87.1 68.7 85.5 86.7 ' 87 !O Paper and printing 7.92 116.1 126.3 122.3 113.8 113.2 118.7 120.4 121.4 122.8 125.7 121.8 128.4 127.1 127.0 Paper and products 3.18 128.2 137.9 133.7 123.6 130.2 137.5 138.9 137.6 138.5 138.4 127.6 136.7 133.0 140.0 Printing and publishing 4.74 107.9 118.5 114.7 107.3 101.7 106.0 107.9 110.6 112.2 117.2 117.9 122.8 123.1 118.2 11.92 137.8 145.6 143.0 140.3 141.1 144.8 145.6 147.6 150.6 153.8 147.1 151.3 154.6 155.3 Chemicals and products 7.86 139.6 146.8 143.2 139.5 140.5 143.8 145.0 148.8 152.2 155.5 150.3 152.6 156.7 156.2 Petroleum products 1.80 120.6 125.8 124.3 125.2 123.9 120.9 119.5 121.3 127.0 132.8 132.8 133.2 130.4 130.9 Rubber and plastics products 2.26 145.5 157.2 157.0 155.0 156.8 167.3 168.3 164.4 164.0 164.6 147.4 161.2 166.5 171.7 9.48 117.6 126.4 120.5 113.8 114.9 117.4 118.1 117.1 120.0 123.1 119.2 .126.6 132.0 129.6 Foods 8.81 118.6 126.9 121.0 115.9 115.4 117.7 118.1 117.8 120.7 123.7 121.1 127.2 133.2 130.6 Tobacco products ..6677 110033..77 112200..44 111133..44 8866..00 110077..77 111133..55 111188..33 110088..00 111100..11 111155..66 9933..99 111188..55 111155..99 Mining Metal, stone, and earth minerals 1.26 107.3 114.4 110.8 108.7 103.4 105.7 109.0 116.4 125.7 125.3 119.0 125.5 126.0 125.1 Metal mining .51 120.9 123.2 115.0 115.0 114.0 120.6 118.7 127.2 143.4 144.0 133.9 139.7 143.0 138.3 Stone and earth minerals .75 98.1 108.5 107.9 104.4 96.2 95.5 102.4 109.0 113.6 112.6 108.9 115.8 114.4 116.2 Coal, oil, and gas 5.11 109.2 110.5 110.5 109.3 107.9 110.1 107.2 106.5 107.0 107.3 105.6 109.0 109.4 110.1 Coal .69 104.2 107.8 104.9 98.0 98.0 104.2 104.3 101.7 102.9 103.2 89.3 110.8 112.9 112.1 4.42 110.0 110.9 111.4 111.1 109.5 111.0 107.6 107.2 107.7 108.0 108.1 108.7 108.8 109.8 Utilities 3.91 149.4 152.0 145.3 151.6 165.1 158.5 153.8 145.4 144.6 157.5 175.9 181.5 181.0 164.9 1.17 123.4 NOTE.—Pages A-58 and A-59 include revisions stemming from changes lications Services, Division of Administrative Services, Board of Governors in seasonal adjustment factors, and pages A-60 and A-61 include re- of the Federal Reserve System, Washington, D.C. 20551. visions in some series that are not seasonally adjusted, beginning in Published groupings include series and subtotals not shown sepa- March 1972 in both instances. Data for the complete year of 1972 are rately. Figures for individual series and subtotals are published in the available in a pamphlet Industrial Production Indexes 1972 from Pub- monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 BUSINESS ACTIVITY; CONSTRUCTION • DECEMBER 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production fac M tu a r n in u g - 2 Prices 4 IInn-- CCaa-- Market dduussttrryy ppaacciittyy NNoonnaagg-uuttiilliizzaa-- CCoonn-- rriiccuull-- Products ttiioonn ssttrruucc-- ttuurraall TToottaall Period Total Total C Fi o n n a - l m In ed te ia r- te M ri a a t l e s - ff MM aacc ii aa nn tt nn uu gg uu rr -- -- ii oo == nn (( uu 11 tt 11 mm 99 pp 00 66 ff uu 00 77 gg tt )) .. ttrr cc tt aa ii oo oo cc nn nn tt -- ss TT mm pp ee oo ee ll mm tt oo nn aa yy tt -- ll —— -- 11 p m E l e m o 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 a h m d l o e i l - t e y - Total sumer Equipgoods ment 195 4 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72. 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 197 0 106.7 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1972—Oc t 119.2 117.3 115.3 127.0 98.9 124.7 122.3 118.5 11 171.0 111.7 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. 119. 116.8 127.7 101.5 127.7 124.4 120.4 JI 163.0 112.4 99.6 139.3 151 127.3 122.9 1973—Ja n 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. 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. 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 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 175.0 114.6 101.8 146.3 164 132.7 134.9 Aug 126.5 '123.7 r121.4 131.2 r107.6 132.1 130.9 126.1 . 83.3 206.0 115.0 102.1 146.7 162 135.1 142.7 Sept r126.8 r124.3 r122.6 '132.4 109.0 131.0 131.3 126.4 182.0 115.3 102.1 149.8 162 135.5 140.2 Oct r127.0 r124.5 r122.8 r132.9 r108.6 130.9 131.2 126.4 191.0 115.8 102.9 151.8 165 136.6 139.5 Nov.p.... 127.2 125.0 123. 133.2 109.0 132.0 130.7 112266..99 111166..11 110033..00 115544..44 116655 114411..88 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Company 2 Production workers only. F.W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering; 4 Prices are not seasonally adjusted. Latest figure is final. does not include data for Alaska and Hawaii. NOTE.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor, Statistics data; Capacity utilization: Based on data from Federal Reserve, McGraw- includes data for Alaska and Hawaii beginning with 1959. Hill Economics Department, and Dept. of Commerce. 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 Sept.r Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total construction i 80,188 91,183 8,047 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 9,228 10,303 8,151 By type of ownership: Public 23,927 24,084 2,041 1,668 1,785 1,650 1,918 1,717 2,046 2,071 2,359 2,995 2,581 2,968 2,328 Private 1 56,261 67,098 6,006 6,557 5,462 4,814 4,877 5,122 6,599 6,743 7,069 6,916 6,647 7,335 5,822 By type of construction: Residential building 1 34,754 45,123 4,027 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 4,224 4,233 3,638 Nonresidential building 25,574 27,082 2,338 2,384 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 3,241 2,719 Nonbuilding 19,282 18,982 1,682 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 2,828 1,794 Private housing units authorized... 1,925 2,399 2,366 2,318 2,226 2,399 2,233 2,209 2,129 1,939 1,838 2,030 1,780 1,750 1,591 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, McGraw-Hill Informations Systems Company, F.W. Dodge Division. some totals are not strictly comparable with those prior to 1968. To im- Totals of monthly data exceed annual totals because adjustments— prove comparability, earlier levels may be raised by approximately 3 per negative—are made in accumulated monthly data after original figures cent for total and private construction, in each case, and by 8 per cent for have been published. residential building. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems; 1971 data are for NOTE.—Dollar value of construction constracts as reported by the 13,000 reporting areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser- Period Total Total d R en e t s i i a - l Total In tr d i u al s - B m u C i e l o r d m c i i n - a g l s b O in u t g i h s l e d r 1 - Other Total M ta i r l y i- H w ig ay h - d v e m a v t & e e i n l o o t n p - Other 2 1962 3 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 . ... 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1,750 10,590 1965 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4.382 10,292 27,605 808 9,321 1,973 15,503 1969 93,368 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 4,822 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 4,832 197 1 109,238 79,367 43,268 36.099 5,423 11,619 5,437 13,620 29,871 901 10,658 2,095 4,820 197 2 123,836 93,640 54,186 39,454 4,676 13,462 5,898 13,418 30,196 1,080 10,448 2,172 4,996 1972—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.. 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. 137,960 104,331 61,240 43,091 5,479 15,071 6,179 16,362 33,629 1,303 2,490 Apr., 135,511 102,951 59,851 43.100 5,287 15,473 6,282 16,057 32,560 1,158 1,675 May 136,453 104,104 59,849 44,255 5,338 16,118 6,251 16,547 32,349 1,277 2,291 June, 135,878 104,906 60,116 44,790 5,928 15,704 6.383 16,775 30,972 1,162 1,870 July. 138,434 106,939 60,238 46,701 6,340 16,110 6,492 r17,759 31,495 1,341 1,658 Aug. 138,164 107,112 60,087 47,025 6,687 15,800 6,122 18,416 31,052 1,048 1,833 Sept. 137,234 104,341 58,917 45,424 6,324 15,111 5,742 18,247 32,893 972 1,859 Oct.. 134,654 102,720 56,099 46,621 6,516 15,554 6,189 18,362 31,934 1,053 1,956 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.) GGoovveerrnnmmeenntt-- Mobile PPrriivvaattee aanndd ppuubblliicc uunnddeerrwwrriitttteenn home Period ((NN..SS..AA..)) ((NN..SS..AA..)) 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 family 2 f - a m to il 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 196 3 1,603 261 328 591 430 1,012 5 89 1,635 1,603 32 292 221 71 151 196 4 1,529 254 340 578 357 970 108 450 1,561 1,529 32 264 205 59 191 196 5 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 196 6 1,165 206 288 472 198 778 61 325 1 196 1,165 31 195 158 37 217 196 7 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 196 8 1,508 227 369 618 294 900 81 527 1,546 1,508 38 283 227 56 318 196 9 1,467 206 349 588 324 814 85 571 1,500 1,467 33 284 233 51 413 197 0 1,434 218 294 612 310 813 85 536 1,469 1,434 35 482 421 61 401 197 1 2,052 264 434 869 486 1,151 120 781 2,084 2,052 32 621 528 93 497 197 2 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 22 475 371 104 576 1972—Oct.. 2,446 372 469 1,125 480 1,315 153 978 218 217 2 34 25 9 54 Nov.. 2,395 353 400 1,106 536 1,324 134 937 187 186 1 29 21 8 50 Dec.. 2,369 486 330 1,080 473 1,207 128 1,034 153 151 2 48 42 6 38 1973—Jan.. 2,497 348 599 1,086 464 1,450 163 884 147 147 j 19 12 7 41 Feb.. 2,456 366 571 1,087 434 1,372 123 961 140 138 2 21 14 7 43 Mar., 2,260 297 415 1,142 406 1,245 123 892 201 200 1 27 19 8 57 Apr.. 2,123 292 387 890 554 1,202 131 790 205 205 27 18 9 62 May. 2,413 267 595 999 552 1,271 162 980 234 234 29 18 11 57 June. 2,128 370 474 837 447 1,124 129 875 203 203 1 27 17 8 57 July. 2,191 225 487 1,063 416 1,247 151 793 203 203 1 20 12 8 r50 Aug. 2,094 287 481 841 485 1,125 111 858 200 197 3 23 14 9 54 Sept. 1,761 279 400 723 359 977 96 688 146 145 1 15 10 6 45 Oct.. 1,613 225511 338800 665544 332288 994455 6688 660000 114477 114444 2 6 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 • DECEMBER 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) i p n T ( o s o N t p t i a t u .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 a S o o b . r t A c o a e r . l ) Total Total E In m c u n p l o t l n u o a r y a g e l r d i 1 - In U pl n o e y m ed industries agriculture 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 146,709 57,309 89,454 87,023 82,525 78,969 3,556 4,498 146,923 57,486 89,707 87.267 82,780 79,130 3,650 4,487 147,129 59,008 89,325 86,921 82,555 79,054 3,501 4,366 147,313 58,238 89,961 87,569 83,127 79,703 3,424 4,442 147,541 57,856 90,629 88.268 83,889 80,409 3,480 4,379 147,729 57,906 90,700 88,350 83,917 80,606 3,311 4,433 147,940 58,050 90,739 88,405 84,024 80,749 3,275 4,381 148,147 55,417 91,247 88,932 84,674 81,271 3,403 4,258 148,361 55,133 91,121 88,810 84,614 81,098 3,516 4,196 148,565 56,129 90,958 88,651 84,434 80,991 3,443 4,217 148,782 57,484 91,694 89,403 85,127 81,757 3,370 4,276 149,001 56,955 92,053 89,764 85,695 82,224 3,471 4,069 149,208 57,040 92,235 89,952 85,688 82,052 3,636 4,264 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) Manufac- Contract Transporta- Period Total turing Mining con ti s o tr n u c- t l i i o c n u & til i p t u ie b s - Trade Finance Service 196 7 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 196 8 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 196 9 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 197 0 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 197 1 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 197 2 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 SEASONALLY ADJUSTED 1972—No v 73,835 19,312 608 3,524 4,549 15,911 3,981 12,497 Dec 74,002 19,402 607 3,459 4,558 15,946 3,991 12,537 1973—Ja n 74,252 19,463 610 3,498 4,574 16,013 3,995 12,621 Feb 74,715 19,586 612 3,594 4,580 16,114 4,014 12,682 Mar 74,914 19,643 610 3,604 4,580 16,163 4,024 12,716 Apr 75,105 19,727 608 3,571 4,591 16,217 4,031 12,746 May 75,321 19,782 608 3,620 4,593 16,256 4,044 12,776 June 75,526 19,856 629 3,654 4.597 16,262 4,049 12,820 July 75,493 19,804 631 3,680 4.598 16,294 4,048 12,828 Aug 75,747 19,861 634 3,676 4,617 16,352 4,064 12,906 Sept 75,961 19,882 633 3,700 4,629 16,388 4,078 12,995 Oct.2' 76,275 20,007 639 3,689 4,670 16,472 4.089 13,035 Nov.? 76,476 20,053 640 3,708 4,647 16,540 4.090 13,087 NOT SEASONALLY ADJUSTED 1972—No v 74,449 19,414 607 3,630 4,554 16,162 3,965 12,472 Dec 74,778 19,423 603 3,373 4.558 16,669 3,971 12,474 1973—Ja n 73,343 19,279 598 3,155 4,510 15,865 3,959 12,406 Feb 73,724 19,420 598 3,184 4,507 15,776 3,978 12,530 Mar 74,255 19,521 598 3,294 4,539 15,880 4,000 12,627 Apr 74,861 19,586 603 3,442 4.559 16,088 4,019 12,771 May 75,404 19,667 608 3,616 4,593 16,200 4,040 12,865 June 76,308 20,002 642 3,837 4,661 16,335 4,089 12,999 July 75,384 19,729 644 3,934 4,653 16,262 4,113 12,982 Aug 75,686 20,018 648 3,981 4,659 16,279 4,121 13,009 Sept 76,238 20,132 641 3,944 4,671 16,367 4,082 12,982 Oct.f 76,827 20,160 640 3,918 4,679 16,522 4,077 13,048 Nov.** 77,114 20,160 639 3,819 4,652 16,800 4,074 13,061 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

DECEMBER 1973 • EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted * Not seasonally adjusted1 Industry group 1972 1973 1972 1973 Nov. Sept. Oct.P Nov.f Nov. Sept. Oct.f NOV.P 14,175 14,609 14,717 14,735 14,281 14,841 14,864 14,842 Durable goods 8,200 8,599 8,679 8,678 8,248 8,681 8,729 8,728 Ordnance and accessories 102 96 96 93 103 98 96 94 Lumber and wood products 535 544 544 545 535 555 551 545 Furniture and fixtures 419 434 434 434 425 437 440 441 Stone, clay, and glass products 539 554 561 565 542 568 569 569 Primary metal industries 1,025 1,082 1,006 1,099 1,010 1,072 1,075 1,083 Fabricated metal products 1,075 1,123 1,132 1,131 1,087 1,135 1,143 1,143 Machinery 1,298 1,398 1,413 1,431 1,289 1,396 1,405 1,421 Electrical equipment and supplies 1,288 1,386 1,415 1,418 1,304 1,404 1,426 1,436 Transportation equipment 1,294 1,332 1,332 1,306 1,311 1,350 1,348 1,323 Instruments and related products 287 311 314 317 289 312 315 318 Miscellaneous manufacturing industries 338 339 342 339 353 355 362 354 5,975 6,010 6,038 6,057 6,033 6,160 6,135 6,114 Food and kindred products 1,171 1,157 1,169 1,188 1,195 1,274 1,236 1,212 Tobacco manufactures 57 57 59 63 62 69 69 68 Textile-mill products 887 899 902 904 891 901 902 909 Apparel and related products 1,176 1,160 1,160 1,150 1,189 1,171 1,174 1,163 Paper and allied products 546 558 563 564 550 561 563 568 Printing, publishing, and allied industries 659 661 661 664 663 660 664 668 Chemicals and allied products 589 606 609 607 587 606 607 605 Petroleum refining and related industries 119 120 120 122 118 122 121 126 Rubber and misc. plastic products 513 538 542 540 518 543 546 545 Leather and leather products 258 254 253 255 260 253 252 256 1 Data adjusted to 1971 benchmark. NOTE.—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked1 Average weekly earnings1 Average hourly earnings i (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1972 1973 1972 1973 1972 Nov. Sept. Oct.P NOV.P Nov. Sept. Oct.® Nov.* Nov. Sept. Total 40.8 40.8 40.6 40.6 159.49 169.33 168.50 169.32 3.89 4.13 Durable goods 41.7 41.4 41.3 41.3 173.05 183.06 181.75 182.16 4.14 4.39 Ordnance and accessories 42.3 42.5 42.4 42.7 175.11 185.73 185.27 190.03 4.13 4.37 Lumber and wood products 41.0 40.7 40.3 40.3 139.06 150.51 148.96 146.73 3.40 3.68 Furniture and fixtures 40.3 39.7 39.5 39.6 127.39 133.87 133.60 134.00 3.13 3.33 Stone, clay, and glass products 41.8 42.2 41.9 42.2 167.60 181.48 180.62 181.04 4.00 4.26 Primary metal industries 42.7 42.7 42.6 42.5 203.04 220.85 216.82 218.50 4.80 5.16 Fabricated metal products 41.6 41.5 41.5 41.7 169.72 179.74 179.71 181.41 4.07 4.30 Machinery 42.6 43.0 42.8 42.8 187.03 198.23 197.27 199.06 4.38 4.61 Electrical equipment and supplies 40.8 40.4 40.0 39.9 153.71 158.75 157.18 157.58 3.74 3.91 Transportation equipment 42.2 41.1 41.6 40.9 206.98 212.16 215.27 211.77 4.87 5.10 Instruments and related products 40.5 40.9 40.8 40.9 152.97 161.52 160.74 162.31 3.74 3.93 Miscellaneous manufacturing industries.. 39.3 39.1 38.6 38.9 125.06 129.42 128.43 131.26 3.15 3.31 Nondurable goods 39.8 39.8 39.7 39.7 141.20 150.00 149.27 150.42 3.53 3.75 Food and kindred products 40.3 40.6 40.7 40.8 147.86 159.01 158.32 159.51 3.66 3.85 Tobacco manufactures 38.0 37.9 40.0 42.0 133.32 143.52 155.63 162.89 3.49 3.68 Textile-mill products 41.3 40.9 40.5 40.6 115.93 123.82 123.02 125.05 2.78 3.02 Apparel and related products 36.1 35.9 35.8 35.6 97.55 101.96 101.67 102.32 2.68 2.84 Paper and allied products 43.1 42.8 42.6 42.8 174.50 183.61 182.33 184.04 4.03 4.26 Printing, publishing, and allied industries 38.2 38.0 37.8 38.0 174.65 182.31 179.17 180.59 4.56 4.76 Chemicals and allied products 41.9 42.0 41.9 41.8 180.18 190.26 189.81 190.23 4.29 4.53 Petroleum refining and related industries 42.4 42.5 42.1 42.2 213.35 227.47 223.55 222.08 5.02 5.29 Rubber and misc. plastic products 41.6 41.0 40.9 41.2 153.46 159.42 158.67 160.24 3.68 3.86 Leather and leather products 37.8 38.4 38.0 38.0 103.09 107.35 107.54 109.73 2.72 2.84 i 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 • DECEMBER 1973 CONSUMER PRICES (1967 = 100) Housing Health and recreation PPeerriioodd iitt AA eemm llll ss FFoooodd Total Rent H ow s o h n m ip e e r - - F c a o o u n i a d l e l l t e r G a l i n e c a d c i s t - y o n F p t i a n i i u e n o s g r h d r n s a - - - AA uu pp pp aa pp kk nn aa ee dd rr ee pp eell TT pp tt oo rr ii aa rr oo nn tt nn aa ss -- -- 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 a r 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 1929 5555511111.....33333 4444488888.....33333 7777766666.....00000 4444488888.....55555 1933 3333388888.....88888 3333300000.....66666 5555544444.....11111 3333366666.....99999 1941 4444444444.....11111 3333388888.....44444 555333...777 5555577777.....22222 444000...555 888111...444 4444444444.....88888 444444...222 333777...000 444111...222 444777...777 444999...222 1945 5555533333.....99999 5555500000.....77777 555999...111 5555588888.....88888 444888...000 777999...666 6666611111.....55555 444777...888 444222...111 555555...111 666222...444 555666...999 1960 8888888888.....77777 8888888888.....00000 999000...222 9999911111.....77777 86.3 888999...222 999888...666 93.8 8888899999.....66666 888999...666 85.1 777999...111 999000...111 888777...333 888777...888 196 5 9999944444.....55555 9999944444.....44444 999444...999 9999966666.....99999 92.7 999444...666 999999...444 95.3 9999933333.....77777 999555...999 93.4 888999...555 999555...222 999555...999 999444...222 196 6 9999977777.....22222 9999999999.....11111 999777...222 9999988888.....22222 96.3 999777...000 999999...666 97.0 9999966666.....11111 999777...222 96.1 999333...444 999777...111 999777...555 999777...222 196 7 111110000000000.....00000 111110000000000.....00000 111000000...000 111110000000000.....00000 100.0 111000000...000 111000000...000 100.0 111110000000000.....00000 111000000...000 100.0 111000000...000 111000000...000 111000000...000 111000000...000 196 8 111110000044444.....22222 111110000033333.....66666 111000444...222 111110000022222.....44444 105.7 111000333...111 111000000...999 104.4 111110000055555.....44444 111000333...222 105.0 111000666...111 111000444...222 111000444...777 111000444...666 196 9 111110000099999.....88888 111110000088888.....99999 111111000...888 111110000055555.....77777 116.0 111000555...666 111000222...888 109.0 111111111111111.....55555 111000777...222 110.3 111111333...444 111000999...333 111000888...777 111000999...111 197 0 111111111166666.....33333 111111111144444.....99999 111111888...999 111111111100000.....11111 128.5 111111000...111 111000777...333 113.4 111111111166666.....11111 111111222...777 116.2 111222000...666 111111333...222 111111333...444 111111666...000 197 1 111112222211111.....33333 111111111188888.....44444 111222444...333 111111111155555.....22222 133.7 111111777...555 111111444...777 118.1 111111111199999.....88888 111111888...666 122.2 111222888...444 111111666...888 111111999...333 111222000...999 197 2 111112222255555.....33333 111112222233333.....55555 111222999...222 111111111199999.....22222 140.1 111111888...555 111222000...555 121.0 111112222222222.....33333 111111999...999 126.1 111333222...555 111111999...888 111222222...888 111222555...555 1972—Oc t 111112222266666.....66666 111112222244444.....99999 111333000...444 111112222200000.....33333 141.8 111111888...111 111222000...999 121.8 111112222244444.....33333 111222111...222 127.2 111333333...999 111222000...888 111222444...000 111222666...444 Nov 111112222266666.....99999 111112222255555.....44444 111333000...888 111112222200000.....55555 142.0 111111999...333 111222222...222 122.1 111112222255555.....00000 111222111...444 127.4 111333444...111 111222111...000 111222444...111 111222666...444 Dec 111112222277777.....33333 111112222266666.....00000 111333111...222 111112222211111.....00000 142.6 111111999...444 111222222...555 122.3 111112222255555.....00000 111222111...333 127.5 111333444...444 111222111...555 111222444...000 111222666...555 1973—Ja n 111112222277777.....77777 111112222288888.....66666 111333111...444 111112222211111.....55555 142.6 111222000...777 111222444...111 122.2 111112222233333.....00000 111222111...000 127.8 111333444...999 111222111...888 111222444...111 111222666...777 Feb 111112222288888.....66666 111113333311111.....11111 111333222...000 111112222222222.....11111 142.9 111222777...222 111222444...555 122.6 111112222233333.....66666 111222111...111 128.1 111333555...333 111222222...444 111222444...333 111222777...111 Mar 111112222299999.....88888 111113333344444.....55555 111333222...333 111112222222222.....66666 143.2 111222777...888 111222555...000 123.0 111112222244444.....88888 111222111...555 128.6 111333555...888 111222333...111 111222444...555 111222777...666 Apr 111113333300000.....77777 111113333366666.....55555 111333222...888 111112222233333.....00000 143.6 111222888...333 111222555...555 123.6 111112222255555.....88888 111222222...666 129.2 111333666...222 111222333...888 111222555...222 111222888...222 May 111113333311111.....55555 111113333377777.....99999 111333333...333 111112222233333.....55555 144.2 111222999...333 111222555...777 123.9 111112222266666.....77777 111222333...555 129.6 111333666...666 111222444...444 111222555...666 111222888...555 June 111113333322222.....44444 111113333399999.....88888 111333333...999 111112222233333.....99999 145.0 111333111...666 111222555...444 124.7 111112222266666.....88888 111222444...666 130.0 111333777...000 111222444...999 111222555...999 111222999...000 July 111113333322222.....77777 111114444400000.....99999 111333444...222 111112222244444.....33333 145.2 111333111...777 111222555...555 125.0 111112222255555.....88888 111222444...888 130.3 111333777...333 111222555...333 111222666...222 111222999...555 Aug 111113333355555.....11111 111114444499999.....44444 111333555...222 111112222255555.....00000 147.0 111333222...888 111222555...888 125.3 111112222266666.....55555 111222444...555 130.5 111333777...666 111222555...777 111222666...111 111222999...444 Sept 111113333355555.....55555 111114444488888.....33333 111333666...666 111112222255555.....44444 149.2 111333333...666 111222666...555 126.1 111112222288888.....33333 111222333...999 131.1 111333888...333 111222666...333 111222666...888 111222999...999 Oct 111113333366666.....66666 111114444488888.....44444 111333888...111 111112222255555.....99999 151.5 111444111...111 111222777...444 126.7 111112222299999.....66666 111222555...000 132.1 111444000...666 111222777...333 111222777...222 111333000...333 NOTE.—Bureau of Labor Statistics index for city wage-earners and 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 aa oo ee ss nn ee oo ss dd dd dd eedd 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 q a e h n r u i a y n d 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 m p 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 o l i l s u a - s ment I960 999999999444444444.........999999999 999999999777777777.........222222222 888888888999999999.........555555555 999999999555555555.........333333333 999999999999999999.........555555555 999999999000000000.........888888888 999999999666666666.........111111111 111111111000000000111111111.........888888888 111111111000000000333333333.........111111111 999999999555555555.........333333333 999999999888888888.........111111111 999999999222222222.........444444444 999999999222222222.........000000000 999999999999999999.........000000000 999999999777777777.........222222222 999999999333333333.........000000000 1961 999999999444444444.........555555555 999999999666666666.........333333333 999999999111111111.........000000000 999999999444444444.........888888888 999999999777777777.........777777777 999999999111111111.........777777777 999999999777777777.........222222222 111111111000000000000000000.........777777777 999999999999999999.........222222222 999999999111111111.........000000000 999999999555555555.........222222222 999999999111111111.........999999999 999999999111111111.........999999999 999999999888888888.........444444444 999999999777777777.........666666666 999999999333333333.........333333333 1962 999999999444444444.........888888888 999999999888888888.........000000000 999999999111111111.........999999999 999999999444444444.........888888888 999999999888888888.........666666666 999999999222222222.........777777777 999999999666666666.........777777777 999999999999999999.........111111111 999999999666666666.........333333333 999999999111111111.........666666666 999999999666666666.........333333333 999999999111111111.........222222222 999999999222222222.........000000000 999999999777777777.........777777777 999999999777777777.........666666666 999999999333333333.........777777777 1963 999999999444444444.........555555555 999999999666666666.........000000000 999999999222222222.........555555555 999999999444444444.........777777777 999999999888888888.........555555555 999999999000000000.........000000000 999999999666666666.........333333333 999999999777777777.........999999999 999999999666666666.........888888888 999999999333333333.........555555555 999999999555555555.........666666666 999999999111111111.........333333333 999999999222222222.........222222222 999999999777777777.........000000000 999999999777777777.........111111111 999999999444444444.........555555555 1964 999999999444444444.........777777777 999999999444444444.........666666666 999999999222222222.........333333333 999999999555555555.........222222222 999999999999999999.........222222222 999999999000000000.........333333333 999999999333333333.........777777777 999999999888888888.........333333333 999999999555555555.........555555555 999999999555555555.........444444444 999999999555555555.........444444444 999999999333333333.........888888888 999999999222222222.........888888888 999999999777777777.........444444444 999999999777777777.........333333333 999999999555555555.........222222222 1965 999999999666666666.........666666666 999999999888888888.........777777777 999999999555555555.........555555555 999999999666666666.........444444444 999999999999999999.........888888888 999999999444444444.........333333333 999999999555555555.........555555555 999999999999999999.........000000000 999999999555555555.........999999999 999999999555555555.........999999999 999999999666666666.........222222222 999999999666666666.........444444444 999999999333333333.........999999999 999999999666666666.........999999999 999999999777777777.........555555555 999999999555555555.........999999999 1966 999999999999999999.........888888888 111111111000000000555555555.........999999999 111111111000000000111111111.........222222222 999999999888888888.........555555555 111111111000000000000000000.........111111111 111111111000000000333333333.........444444444 999999999777777777.........888888888 999999999999999999.........444444444 999999999777777777.........888888888 111111111000000000000000000.........222222222 999999999888888888.........888888888 999999999888888888.........888888888 999999999666666666.........888888888 999999999888888888.........000000000 999999999888888888.........444444444 999999999777777777.........777777777 1967 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 111111111000000000000000000.........000000000 IQfiR 111111111000000000222222222.........555555555 111111111000000000222222222.........555555555 111111111000000000222222222.........222222222 111111111000000000222222222.........555555555 111111111000000000333333333.........777777777 111111111000000000333333333.........222222222 999999999888888888.........999999999 999999999999999999.........888888888 111111111000000000333333333.........444444444 111111111111111111333333333.........333333333 111111111000000000111111111.........111111111 111111111000000000222222222.........666666666 111111111000000000333333333.........222222222 111111111000000000222222222.........888888888 111111111000000000333333333.........777777777 111111111000000000222222222.........222222222 1969. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1972—Nov 120.7 128.8 123.1 119.1 115.1 144.0 121.3 104.7 109.8 149.4 115.0 124.1 118.5 112.3 127.3 113.0 115.0 Dec 122.9 137.5 129.4 119.4 115.6 142.2 121.9 104.8 109.8 149.8 115.1 124.4 118.6 112.4 127.4 114.2 115.1 1973—Jan 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 128.2 114.1 115.8 Feb 126.9 150.9 137.0 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 128.4 114.2 117.1 Mar 129.7 160.9 141.4 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 129.0 114.5 117.9 Apr 130.7 160.6 139.8 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 130.0 114.9 118.6 May 133.5 170.4 145.0 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 130.5 115.1 119.5 June 136.7 182.3 151.8 126.9 123.7 140.9 142.8 110.4 112.6 183.1 122.0 132.5 121.9 115.2 131.1 115.0 120.2 July 134.9 173.3 146.5 126.9 124.2 141.4 142.8 110.8 112.9 177.8 122.3 132.8 122.0 115.2 130.0 115.0 120.9 Aug 142.7 213.3 166.2 127.4 125.2 143.0 142.9 111.0 113.1 178.8 123.3 133.7 122.3 115.9 130.0 115.1 121.0 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 Oct 139.5 188.4 153.1 129.6 128.5 143.8 150.5 112.7 114.0 180.3 125.8 135.9 123.1 116.6 130.9 115.9 121.0 Nov 141.8 184.0 151.9 133.5 130.0 143.0 179.2 113.5 114.8 184.7 127.6 138.5 123.8 117.2 131.5 116.1 121.3 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1972 1973 1972 1973 Group GGrroouupp Nov. Sept. Oct. Nov. Nov. Sept. Oct. Nov. Farm products: Pulp, paper, and allied products: Fresh and dried produce 141.8 149.0 162.1 168.2 Pulp, paper and products, excluding Grains 113.6 231.5 229.0 220.8 building paper and board 115.3 124.8 126.1 127.9 Livestock 139.5 207.4 185.5 180.0 111.5 133.3 145.7 146.2 Live poultry 102.8 226.5 189.2 154.4 136.9 230.5 252.9 293.2 Plant and animal fibers 112.2 267.9 266.5 234.0 117.3 121.7 122.3 124.7 Fluid milk 123.5 158.7 168.2 177.2 Paperboard 106.8 116.7 118.0 119.7 Eggs 123.1 191.5 177.7 181.2 Converted paper and paperboard... 115.6 123.8 123.8 124.4 Hay and seeds.... 124.6 304.5 211.1 194.3 BBuuiillddiinngg ppaappeerr aanndd bbooaarrdd 107.2 115.9 117.7 118.8 Other farm products 134.0 153.2 154.7 152.6 Processed foods and feeds: Metals and metal products: Cereal and bakery products 118.3 147.7 150.5 156.2 Meat, poultry, and fish 127.9 187.3 170.2 165.0 Iron and steel 129.0 136.5 138.6 141.6 Dairy products 121.8 137.2 139.6 139.9 Steelmill products 130.2 134.3 135.3 135.3 Processed fruits and vegetables 123.8 130.0 135.0 136.3 Nonferrous metals 117.2 138.5 140.7 144.9 Sugar and confectionery 121.7 136.9 139.8 143.8 Metal containers 131.1 135.6 134.8 134.8 Beverages and beverage materials 119.4 121.6 123.0 123.8 121.4 126.8 127.7 128.2 Animal fats and oils 134.9 264.7 308.8 247.8 Plumbing equipment 120.8 127.2 127.8 129.1 Crude vegetable oils 93.7 195.2 223.0 164.7 Heating equipment 119.2 120.7 120.8 121.1 Refined vegetable oils 104.6 164.8 180.5 159.1 Fabricated structural metal products 123.1 128.7 129.6 130.9 Vegetable oil end products 121.6 160.1 167.6 164.8 MMiisscceellllaanneeoouuss mmeettaall pprroodduuccttss 124.9 131.4 132.2 133.8 Miscellaneous processed foods 116.1 128.1 129.3 129.4 Manufactured animal feeds 130.5 190.1 184.5 183.3 Textile products and apparel: Machinery and equipment: Cotton products 124.2 153.1 155.5 161.2 Agricultural machinery and equip... 122.9 125.6 127.5 128.9 Wool products 107.1 133.7 130.2 128.9 Construction machinery and equip.. 126.3 131.4 132.5 132.7 Manmade fiber textile products 109.5 126.7 127.7 128.6 Metalworking machinery and equip. 121.3 126.6 127.5 128.0 Apparel 115.9 119.5 121.5 121.9 General purpose machinery and Textile housefurnishings 109.9 112.3 115.2 119.1 equipment 123.3 127.6 128.4 130.3 Miscellaneous textile products 118.7 121.4 127.0 132.0 Special industry machinery and equipment 124.5 132.6 132.9 133.3 Hides, skins, leather, and products: Electrical machinery and equip 110.6 112.8 113.0 113.3 MMiisscceellllaanneeoouuss mmaacchhiinneerryy 120.6 125.0 125.2 125.6 Hides and skins 287.0 257.3 256.3 239.8 Leather 162.6 162.8 160.7 160.4 Footwear 128.5 130.3 131.0 131.9 Other leather products 127.1 130.4 130.5 130.1 Furniture and household durables: Fuels and related products, and power: Household furniture 118.1 124.4 125.2 126.6 Commercial furniture 123.4 132.8 133.6 133.9 Coal 201.2 222.6 224.1 239.0 99.1 102.6 103.3 103.4 Coke 157.0 167.3 167.3 167.3 Household appliances 108.0 109.0 109.1 109.5 Gas fuels 119.0 132.2 133.4 133.1 Home electronic equipment 92.5 91.5 91.5 91.5 Electric power 123.0 130.9 132.1 133.5 OOtthheerr hhoouusseehhoolldd dduurraabbllee ggooooddss........ 126.9 130.5 131.3 132.0 Crude petroleum 114.7 133.3 133.3 139.3 Petroleum products, refined 111.5 146.1 156.6 210.9 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals 100.9 104.3 105.3 105.4 Flat glass 122.5 118.2 118.2 120.6 Prepared paint 118.2 121.2 126.0 128.1 Concrete ingredients 128.5 131.7 131.9 132.0 Paint materials 105.1 116.2 116.8 117.1 Concrete products 127.3 132.5 133.6 134.1 Drugs and pharmaceuticals 103.6 104.7 104.7 104.9 Structural clay products excluding Fats and oils, inedible 123.2 279.5 273.0 241.8 refractories 118.8 123.9 124.6 124.6 Agricultural chemicals and products., 92.4 95.9 95.9 104.9 132.1 136.3 136.3 136.3 Plastic resins and materials 89.6 93.1 92.4 93.1 Asphalt roofing 131.2 136.3 136.8 139.7 Other chemicals and products 114.1 118.3 121.2 122.1 Gypsum products 115.0 122.0 122.4 122.0 136.4 137.1 143.5 143.5 Rubber and plastic products: Other nonmetallic minerals 127.3 127.3 127.3 127.7 Rubber and rubber products 114.6 118.4 120.2 121.2 Crude rubber 100.8 113.4 111.4 113.9 Tires and tubes 109.7 110.4 115.1 116.3 Transportation equipment:1 Miscellaneous rubber products. 122.0 125.8 126.4 126.8 Plastic construction products (Dec. Motor vehicles and equipment 117.0 118.3 120.0 120.1 1969 = 100) 93.3 94.0 94.7 94.4 Railroad equipment 130.2 136.1 136.2 136.7 Unsupported plastic film and sheeting (Dec. 1970=100) 98.6 100.9 101.1 101.4 Laminated sheets, high pressure (Dec. 1970= 100) 97.9 98.5 97.7 99.5 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition 115.0 118.3 119.2 119.9 Lumber 166.8 216.9 214.5 211.1 Tobacco products 117.5 122.5 122.7 122.8 Millwork 130.9 149.0 149.4 149.5 112.9 113.6 115.5 117.1 Plywood 133.3 138.2 134.6 169.9 Photographic equipment and supplies 107.0 108.6 108.6 108.7 Other wood products 130.2 155.9 158.2 159.0 Other miscellaneous products 116.9 129.5 127.8 128.2 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 • DECEMBER 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 III IV I II III 1 103.1 55.6 124.5 284.8 864.2 930.3 977.1 1,055.5 1,155.2 1,166.51,199.2 1,243.5 1,272.0 1,304.5 101.4 57.2 120.1 278.0 857.1 922.5 972.6 1M9.4 1,149.1 1,157.81,191.0 1,287.8 1,267.5 1,299.8 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 734.1 752.6 779.4 795.6 816.0 9.2 3.5 9.6 30.5 84.0 90.8 91.3 103.6 117.4 120.2 122.9 132.2 132.8 132.8 37.7 22.3 42.9 98.1 230.8 245.9 263.8 278.7 299.9 302.3 310.7 322.2 330.3 341.6 30.3 20.1 28.1 62.4 221.3 242.7 262.6 284.9 309.2 311.6 319.0 325.0 332.6 341.6 16.2 1.4 17.9 54.1 126.0 139.0 136.3 153.2 178.3 181.5 189.4 194.5 198.2 202.0 14.5 3.0 13.4 47.3 118.9 131.1 131.7 147.1 172.3 172.9 181.2 189.9 193.7 197.3 10.6 2.4 9.5 27.9 88.8 98.5 100.6 104.4 118.2 118.3 124.3 130.9 134.1 138.0 Structures . 5.0 .9 2.9 9.2 30.3 34.2 36.1 37.9 41.7 41.3 43.0 45.3 47.2 49.5 5.6 1.5 6.6 18.7 58.5 64.3 64.4 66.5 76.5 77.0 81.2 85.5 86.9 88.6 Residential structures 4.0 .6 3.9 19.4 30.1 32.6 31.2 42.7 54.0 54.5 56.9 59.0 59.6 59.2 3.8 .5 3.7 18.6 29.5 32.0 30.7 42.2 53.5 53.9 56.4 58.4 59.1 58.6 Change in business inventories 1.7 -1.6 4.5 6.8 7.1 7.8 4.5 6.1 6.0 8.7 8.2 4.6 4.5 4.7 1.8 -1.4 4.0 6.0 6.9 7.7 4.3 4.5 5.6 8.4 7.9 4.4 4.4 3.2 1.1 .4 1.3 1.8 2.5 1.9 3.6 .8 -4.6 -3.8 -3.5 .0 2.8 7.6 Exports 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.3 73.5 74.0 79.7 89.7 97.2 104.5 5.9 2.0 4.6 12.0 48.1 53.6 59.3 65.5 78.1 77.7 • 83.2 89.7 94.4 97.0 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 199.6 210.0 219.5 234.3 255.0 254.7 260.7 268.6 275.3 279.0 Federal 1.3 2.0 16.9 18.4 98.8 98.8 96.2 98.1 104.4 102.3 102.7 105.5 107.3 106.8 National defense 13.8 14.1 78.3 78.4 74.6 71.6 74.4 71.9 12 A 74.3 74.2 74.2 Other 3.1 4.3 20.5 20.4 21.6 26.5 30.1 30.4 30.3 31.2 33.1 32.7 State and local 7.2 6.0 7.9 19.5 100.8 111.2 123.3 136.2 150.5 152.4 158.0 163.0 168.0 172.2 Gross national product in constant (1958) 203.6 141.5 263.7 355.3 706.6 772255..66 722.5 745.4 790.7 796.7 812.3 829.3 834.3 841.3 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 III IV I II III* 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 949.2 978.6 1,015.0 1,038.2 1,067.8 Compensation of employees 51.1 29.5 64.8 154.6 514.6 566.0 603.9 644.1 707.1 713.1 731.2 757.4 774.9 794.0 Wages and salaries 50.4 29.0 62.1 146.8 464.9 509.7 542.0 573.8 627.3 632.5 648.7 666.7 682.3 699.3 Private 45.5 23.9 51.9 124.4 369.2 405.6 426.9 449.7 493.3 497.5 510.9 525.1 538.7 553.2 .3 .3 1.9 5.0 17.9 19.0 19.6 19.4 20.3 20.0 20.1 20.9 20.5 20.4 Government civilian 4.6 4.9 8.3 17.4 77.8 85.1 95.5 104.7 113.8 115.1 117.7 120.7 123.1 125.7 Supplements to wages and salaries .7 .5 2.7 7.8 49.7 56.3 61.9 70.3 79.7 80.5 82.5 90.8 92.6 94.7 Employer contributions for social in- .1 . 1 2.0 4.0 24.3 27.8 29.7 33.7 39.0 39.3 40.2 47.4 48.3 49.4 .6 .4 .7 3.8 25.4 28.4 32.2 36.6 40.7 41.3 42.3 43.3 44.2 45.3 Proprietors' income. 15.1 5.9 17.5 37.5 64.2 67.2 66.9 68.7 74.2 74.1 77.1 80.6 81.5 85.0 9.0 3.3 11.1 24.0 49.5 50.5 50.0 51.9 54.0 54.3 55.3 56.3 57.1 57.9 Farm 6.2 2.6 6.4 13.5 14.7 16.7 16.9 16.8 20.2 19.8 21.8 24.3 24.4 27.1 5.4 2.0 3.5 9.4 21.2 22.6 23.9 24.5 24.1 24.9 24.9 24.7 24.6 25.3 Corporate profits and inventory valuation 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 91.5 98.8 104.3 107.9 112.4 10.0 1.0 17.7 42.6 87.6 84.9 74.0 85.1 98.0 98.4 106.1 119.6 128.9 129.4 Profits tax liability 1.4 .5 7.6 17.8 39.9 40.1 34.8 37.4 42.7 42.9 45.9 52.7 57.4 57.9 8.6 .4 10.1 24.9 47.8 44.8 39.3 47.6 55.4 55.6 60.3 66.9 71.6 71.5 Dividends 5.8 2.0 4.4 8.8 23.6 24.3 24.7 25.1 26.0 26.2 26.4 26.9 27.3 28.1 Undistributed profits 2.8 -1.6 5.7 16.0 24.2 20.5 14.6 22.5 29.3 29.4 33.9 40.0 44.2 43.5 .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.8 -4.9 -6.9 -6.9 -7.3 -15.4 -21.1 -17.0 Net interest 4.7 4.1 3.2 2.0 26.9 30.5 36.5 42.0 45.2 45.7 46.6 47.9 49.4 51.1 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

DECEMBER 1973 • NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 III IV II HIP Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 977.1 1,055.51,155.2 1,166.5 1,199. 21 ,242.51,272.01 304.5 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 74.5 81.6 87.3 93.8 102.4 102.3 105.1 106.9 109.0 110.6 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 78.6 85.9 93.5 102.4 109.5 110.5 112.8 115.6 117.2 118.5 Business transfer payments .6 .7 .5 .8 3.4 3.8 4.0 4.3 4.6 4.7 4.7 4. 4.9 5.0 Statistical discrepancy .7 .6 .4 1.5 -2.7 -6. -6.4 -3.4 -1.5 1.6 0.2 3.2 3.3 Plus: Subsidies less current surplus of government enterprises .2 .7 1.0 1.7 1.2 1.7 1.8 2.2 .9 .4 .6 Equals: National income 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 949.2 978. 61 ,015.01,038.21,067.8 Less: Corporate profits and inventory valuation adjustment 10.5 15.2 37.7 84.3 79.8 69.2 80.1 91.1 91.5 98.8 104.3 107. 112.4 Contributions for social insurance... .2 2. 6.9 47.1 54.2 57.7 73.7 74.5 75.8 89.3 90. 93.0 Excess of wage accruals over disburse- 64.6 ments .0 -.5 -.2 .0 .0 .0 .6 Plus: G Ne o t v e in rn te m re e s n t t p t a r i a d 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 96.4 107.3 108.8 110.1 113.7 consumers 2.5 1.6 2.2 7.2 26. 28.7 31.0 31.0 32.7 32.9 33.7 34.7 36. 38.0 Dividends 5.8 2.0 4.4 8.8 23.6 24.3 24.7 25.1 26.0 26.2 26.4 26.9 27.: 28.1 Business transfer payments .6 .7 .5 .8 3.4 3.8 4.0 4.3 4.6 4.7 4.7 4.8 4.' 5.0 Equals: Personal income 85.9 47.0 96.0 227.6 688.9 750.9 808.3 863.5 939.2 943.7 976.1 996.61,019.01,047.1 Less: Personal tax and nontax payments 2.6 1.5 3.3 20.7 97.9 116.5 116.6 117.5 142.2 142.8 147.4 145.1 149. 156.0 Equals: Disposable personal income , 83.3 45.5 92.7 206.9 591.0 634.4 691.7 746.0 797.0 800.9 828.7 851.5 869. 891.1 Less: Personal outlays 79. 46.5 81.7 193.9 551.2 596.2 635.5 685.8 747.2 755.1 774.3 801.5 818. 840.1 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 734.1 752.6 779.4 795. 816.0 Consumer interest payments 1.5 .5 .9 2.4 14.3 17.7 19.7 20.0 20.7 21.2 22. 23.0 Personal transfer payments to for- 15.8 16.8 eigners .3 .2 .2 .5 .9 1.0 1.0 1.0 1.0 1. .9 1.1 Equals: Personal saving. 4.2 -.9 11.0 13.1 39.8 60.2 49.7 45.8 54.4 50.0 51.0 51.1 38.2 56.2 Disposable personal income in constant (1958) dollars 150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.9 579.3 595.1 603.9 604.8 609.5 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 IItteemm 11997711 11997722 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.f Total personal income 863.5 939.2 967.0 977.6 983.6 989.1 997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1,067.7 Wage and salary disbursements 573.3 627.8 643.8 648.4 654.0 661.7 667.2 671.1 677.6 682.0 688.2 693.2 698.9 706.0 712.3 Commodity-producing industries.. 206.3 226.0 232.8 235.0 236.8 239.2 242.2 243.5 245.9 248.3 251.7 253.4 254.8 257.8 260.1 Manufacturing only 160.5 175.9 181.6 183.8 185.6 187.1 189.6 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.7 Distributive industries 138.3 151.5 155.2 155.6 157.2 158.7 159.3 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 Service industries 104.7 116.1 119.2 119.8 121.3 122.9 124.1 124.9 126.4 126.8 127.7 129.4 130.8 132.5 133.4 Government 123.9 134.2 136.7 138.1 138.7 140.9 141.6 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 Other labor income 36.6 40.7 42.0 42.3 42.7 43.0 43.3 43.6 43.9 44.2 44.5 44.8 45.3 45.8 46.2 Proprietors' income 68.7 74.2 75.9 77.5 77.9 80.1 80.6 81.0 81.0 81.5 81.9 83.7 85.1 86.4 86.5 Business and professional 51.9 54.0 55.1 55.1 55.6 56.1 56.3 56.4 56.8 57.1 57.3 57.8 58.0 58.1 58.2 Farm 16.8 20.2 20.8 22.4 22.3 24.0 24.3 24.6 24.2 24.4 24.6 25.9 27.1 28.3 28.3 Rental income 24.5 24.1 25.1 24.7 24.9 24.8 24.8 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 Dividends 25.1 26.0 26.3 26.3 26.5 26.8 26.9 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 Personal interest income 73.0 78.0 79.6 80.4 81.1 81.9 82.6 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.2 Transfer payments 93.2 103.0 109.7 113.7 112.6 112.5 113.8 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.4 Less: Personal contributions for social insurance 30.9 34.7 35.4 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 Nonagricultural income 839.8 911.5 938.8 947.7 953.6 957.4 965.3 970.9 979.5 986.4 994.2 1,001.8 1,012.1 1,021.8 1,030.8 Agricultural income 23.7 27.7 28.2 29.9 30.0 31.8 32.1 32.4 32.0 32.2 32.4 33.8 35.2 36.7 36.9 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 • DECEMBER 1973 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors 67.7 82.2 94.6 91.4 97.5 146.7 166.1 134.7 158.7 145.2 187.3 201.0 1 2 Excluding equities 66.9 80.0 95.9 88.0 92.6 135.0 156.1 123.8 146.1 134.7 177.8 192.1 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 17.1 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 15.8 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 84.7 121.2 148.8 112.0 130.4 132.8 165.1 183.9 6 7 Corporate equities .8 2.2 -1.4 3.4 4.9 11.7 10.0 10.9 12.6 10.4 9.5 8.8 7 8 Debt instruments 63.3 67.0 82.6 91.6 79.8 109.5 138.8 101.1 117.8 122.3 155.6 175.1 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 92.3 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 7.4 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 10.0 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 74.9 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 41.4 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 14.1 14 15 5.7 4.7 6.4 5.3 5.3 10.0 14.8 8.5 11.5 13.5 16.0 15.1 15 16 1.8 2.3 2.2 1.9 1.8 2.0 2.6 1.7 2.3 2.7 2.5 4.3 16 17 Other private credit 24.4 21.3 32.0 41.0 22.1 26.3 46.4 21.7 30.9 35.0 58.0 82.8 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 14.5 29.3 54.0 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 -3.4 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 7,6 21 22 By borrowing sector 64.1 69.2 81.2 95.0 84.7 121.2 148.8 112.0 130.4 132.8 165.1 183.9 22 23 Debt instruments 63.3 67.0 82.6 91.6 79.8 109.5 138.8 101.1 117.8 122.3 155.6 175.1 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 11.2 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 7.5 25 26 Households 22.6 19.0 29.6 32.2 22.9 38.3 63.2 30.0 46.6 56.2 70.5 71.9 26 27 Nonfinancial business 32.8 36.0 40.2 45.9 42.5 48.5 59.5 47.9 49.0 50.9 68.2 84.5 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 7.3 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 13.4 29 30 Corporate 24.3 27.4 31.8 35.4 33.9 35.7 44.2 34.6 36.8 37.0 51.2 63.8 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 8.8 31 32 Foreign -.3 .1 .2 .5 .1 * -.4 .4 -.3 -.2 -.6 -.4 32 33 Corporate business 1.1 2.2 -1.5 2.9 4.8 11.7 10.4 10.5 12.9 10.7 10.1 9.2 33 Totals including 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 10.8 34 35 Nonfinancial business 33.9 38.2 38.7 48.8 47.3 60.2 69.9 58.4 61.9 61.6 78.3 93.7 35 36 Corporate 25.4 29.6 30.3 38.3 38.8 47.4 54.6 45.1 49.7 47.7 61.3 73.0 36 37 Memo: U.S. Govt, cash balance -.4 1.2 — 1.1 .4 2.8 3.2 .5 -.2 6.6 -3.0 4.0 3.6 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised 68.1 81.1 95.7 91.0 94.7 143.5 165.6 134.9 152.1 148.1 183.3 197.4 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 13.5 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1 190.6 188.1 207.6 226.7 224.2 252.5 291.1 246.3 258.7 279.9 302.3 323.8 1 2 Capital consumption 2 118.5 128.4 140.4 154.3 166.0 179.0 193.4 175.8 182.2 190.3 196.6 205.5 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 88.4 108.5 117.7 148.8 165.6 4 5 Excess net investment 3 15.7 2.4 -1.1 -8.6 -12.0 -25.0 -35.4 -17.9 -32.0 -28.0 -43.1 -47.4 5 Total business 6 Total capital outlays 96.4 93.4 97.9 108.9 108.0 116.6 133.3 115.8 117.3 127.4 139.3 145.6 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 92.7 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 53.0 8 9 Net debt funds raised 32.8 36.0 40.2 45.9 42.5 48.5 59.5 47.9 49.0 50.9 68.2 84.5 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 9.2 10 11 Excess net investment 3 8.4 -3.2 -4.0 -9.4 -13.8 -23.9 -24.1 -21.4 -26.4 -20.4 -27.9 -40.7 11 Corporate business 12 Total capital outlays 76.5 71.4 75.0 83.7 84.0 86.7 100.7 86.5 87.0 96.0 105.4 108.6 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 66.5 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 42.1 14 15 Net debt funds raised 24.3 27.4 31.8 35.4 33.9 35.7 44.2 34.6 36.8 37.0 51.2 63.8 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 9.2 16 17 Excess net investment 3 12.9 .3 -.4 -4.4 -8.4 -18.3 -16.8 -15.3 -21.4 -13.5 -19.8 -30.9 17 Households 18 Total capital outlays 94.2 94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.2 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 65.3 20 21 Net funds raised 22.6 19.0 29.6 32.2 22.9 38.3 63.2 30.0 46.6 56.2 70.5 71.9 21 22 Excess net investment 3 i 7.3 5.7 2.9 .8 1.8 -1.1 -11.3 3.5 -5.6 -7.6 -15.2 -6.6 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 sponsored credit agencies are excluded as borrowing by financial institu- NOTE.—Full statements for sectors and transaction types are available tions. Such issues are in U.S. Government securities on p. A-71, line 11. on a quarterly basis and annually for flows and for amounts outstanding. Corporate share issues are net cash issues by nonfinancial and foreign Requests for these statements should be addressed to the Flow of Funds corporations. Mortgages exclude loans in process. Open-market paper is Section, Division of Research and Statistics, Board of Governors of the commercial paper issued by nonfinancial corporations plus bankers' Digitized for FRAFSedEerRa l Reserve System, Washington, D.C., 20551. acceptances. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 1973 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1966 1967 1968 1969 1970 1971 1972 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 66.9 80.0 95.9 88.0 92.6 135.0 156.1 123.8 146.1 134.7 177.8 192.1 1 By public agencies and foreign 2 Total net advances 11.9 11.3 12.2 15.8 28.0 41.3 16.9 38.6 44.0 19.7 14.1 42.6 2 3 U.S. Government securities 3.4 6.8 3.4 '.9 15.7 33.4 7.3 32.9 34.0 12.7 2.0 21.4 3 4 Residential mortgages 2.8 2.1 2.8 4.6 5.7 5.7 5.2 4.2 7.1 6.2 4.3 5.0 4 5 FHLB advances to S&L's .9 -2.5 .9 4.0 1.3 -2.7 * -5.5 .2 -2.4 2.5 7.8 5 6 Other loans and securities 4.8 4.9 5.1 6.3 5.2 4.9 4.3 7.1 2.7 3.2 5.4 8.5 6 By agency— 7 U.S. Government 4.9 4.6 44..99 22..99 2.8 3.2 2.3 44..33 2.2 1.5 3.1 .5 7 8 Sponsored credit agencies 5.1 —. 1 3.2 9.0 9.9 2.8 6.0 -1.4 7.0 7.5 4.5 18.7 8 9 Monetary authorities 3.5 4.8 3.7 4.2 5.0 8.8 .2 8.4 9.3 4.5 -4.1 12.0 9 10 Foreign -1.6 2.0 .3 -.3 10.3 26.4 8.4 27.3 25.5 6.2 10.6 11.5 10 11 Agency borrowing not included 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 86.1 109.9 122.4 168.6 167.1 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 13.4 13 14 State and local obligations 5.6 7.8 9.5 9.9 11.3 16.6 11.9 17.9 15.4 12.0 11.9 7.4 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 9.7 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 50.4 16 17 Other mortgages and loans 27.4 23.1 35.9 42.2 24.6 33.7 59.5 25.0 42.3 48.3 71.0 94.0 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 74.9 111.4 150.2 112.2 110.6 130.5 170.1 188.0 19 20 Commercial banking 17.5 35.9 38.7 18.2 35.1 50.6 69.7 53.2 48.0 57.2 82.4 100.8 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 49.9 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 23.1 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 14.2 23 24 Sources of funds 45.4 63.5 75.3 54.9 74.9 111.4 150.2 112.2 110.6 130.5 170.1 188.0 24 25 Private domestic deposits 22.5 50.0 45.9 2.6 63.2 90.8 97.8 107.7 73.9 97.9 97.9 103.0 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 36.9 26 27 Other sources 19.8 13.9 21.0 33.3 12.1 11.3 32.2 1.9 20.8 16.2 48.2 48.1 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 5.0 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 16.5 30 31 Other, net 3.0 -.6 7.2 13.5 4.5 2.7 15.1 2.2 3.2 5.9 24.3 28.0 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 16.0 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 11.3 33 34 State and local obligations 2.6 -2.5 -.2 8.7 -1.1 -.1 2.1 -2.7 2.6 .9 3.4 1.3 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 1.6 35 36 Commercial paper 2.3 1.9 5.8 10.2 -4.4 -.6 3.7 -7.3 6.0 6.7 .8 -.4 36 37 Other 2.3 1.7 2.1 2.0 1.4 1.3 .6 .3 2.3 -.4 1.7 2.2 37 38 Deposits and currency 24.4 52.1 48.3 5.4 66.6 94.2 102.2 110.6 77.9 103.3 101.3 109.0 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 99.0 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 27.3 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 33.9 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 37.9 42 43 Money 4.1 12.8 14.5 7.7 10.5 13.0 16.5 17.9 8.1 14.5 18.7 10.0 43 44 Demand deposits 2.1 10.6 12.1 4.8 7.1 9.6 12.1 15.1 4.1 9.1 15.3 3.9 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 6.0 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 93.0 111.7 123.8 125.1 46 47 Putyic 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 22.2 47 48 Private financial intermediation (in per cent) 75.9 93.2 86.4 67.9 102.8 113.7 103.3 130.3 100.7 106.6 100.9 112.5 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 16.4 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 9.6 1 2 Mutual fund shares 3.7 3.0 5.8 4.8 2.6 1.2 — .o .3 2.1 -.8 -.4 -1.7 2 3 Other equities .9 2.3 -.7 4.7 6.9 13.5 12.6 12.7 14.2 13.3 12.0 11.3 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 -2.8 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 • DECEMBER 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 LLiinnee CCrreeddiittss++,, ddeebbiittss —— 1970 1971 1972 II III IV I II v Summary—Seasonally adjusted 1 Merchandise trade balance 1 2,176 -2,698 -6,912 -1,774 -1,573 -1,745 -960 -230 2 Exports 41,964 42,768 48,769 11,539 12,362 13,213 15,320 16,747 3 Imports -39,788 -45,466 -55,681 -13,313 -13,935 -14,958 -16,280 -16,977 4 Military transactions, net -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 Foreign investments in the United States -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 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 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 16 U.S. Government capital flows excluding nonscheduled repayments, net 4 -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 Other, reported by U.S. nonbanking concerns 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 Net liquidity balance -3,851 -21,965 -13,882 -2,307 -4,531 -3,851 -6,661 -1,607 34 Liquid private capital flows, net -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 Reported by U.S. banks -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 -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 Official reserve transactions balance --99,,883399 --2299,,775533 --1100,,334400 -851 --44,,552244 --11,,448844 --1100,,449999 376 Financed by changes in: 43 Liquid liabilities to foreign official agencies 77,,663377 2277,,661155 9,720 1,057 4,467 11,,664455 9,121 -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 1,350 153 185 -15 -16 -13 8 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14) 22,,558866 3,153 44,,220000 920 11,,118899 949 716 832 52 Re U in . v S e . s f t i e r d m s e a (e r x n c i l n u g d s e d o f f r f o o m re l i i g n n e s in 7 c a o n r d p o 2 r 0 a ) t ed affiliates of 2,948 33,,119922 ((66)) ((<<00 ((**)) ((66)) ((66)) ((66)) 53 Re f i o n r v e e i s g t n e d f irm ea s r n (e i x n c g l s u d o ed f f U ro . m S. li i n n e c s o 9 rp a o n r d a t 2 ed 1 ) affiliates of 434 498 (6) (6) (<0 (6) (6) (6) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 HP 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 ' -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 2 Trade balance 1970 1971 1972 1973 1970 1971 1972 1973 1970 1971 1972 1973 Month: Jan 33333,,,,,444440000066666 33333,,,,,666660000011111 44444,,,,,000007777744444 4,977 33333,,,,,222222222222222 33333,,,,,555559999999999 44444,,,,,444441111155555 5,281 111118888844444 22222 -----333334444411111 -304 Feb 33333,,,,,555554444466666 33333,,,,,666669999955555 33333,,,,,888882222244444 5,065 33333,,,,,222227777799999 33333,,,,,555556666644444 44444,,,,,444447777733333 5,541 222226666677777 111113333300000 -----666664444499999 -476 Mar 33333,,,,,333337777755555 33333,,,,,777779999900000 33333,,,,,888886666699999 5,380 33333,,,,,222221111199999 33333,,,,,666662222288888 44444,,,,,555551111155555 5,432 111115555566666 111116666600000 -----666664444477777 -53 Apr 33333,,,,,444441111100000 33333,,,,,666663333311111 33333,,,,,888882222200000 5,487 33333,,,,,222226666622222 33333,,,,,777777777744444 44444,,,,,444441111177777 5,291 111114444488888 -----111114444433333 -----555559999966666 196 May 33333,,,,,666666666611111 33333,,,,,777774444466666 33333,,,,,888888888822222 5,603 33333,,,,,333336666677777 33333,,,,,999990000088888 44444,,,,,444448888866666 5.761 333332222244444 -----111116666611111 -----666660000044444 -158 June 33333,,,,,777772222277777 33333,,,,,666667777722222 33333,,,,,999997777711111 5,778 33333,,,,,222226666655555 44444,,,,,000003333377777 44444,,,,,444446666688888 5,794 444446666622222 -----333336666655555 -----444449999977777 -16 July 33333,,,,,777770000044444 33333,,,,,555557777733333 44444,,,,,000007777744444 5,869 33333,,,,,222225555544444 33333,,,,,888883333322222 44444,,,,,555556666655555 5.762 444445555500000 -----222225555599999 -----444449999911111 106 Aug 33333,,,,,555559999911111 33333,,,,,666666666677777 44444,,,,,111119999977777 6,004 33333,,,,,333334444466666 33333,,,,,999991111133333 44444,,,,,777772222266666 6,021 222224444455555 -----222224444477777 -----555553333300000 -17 Sept 33333,,,,,555555555533333 44444,,,,,444448888877777 44444,,,,,111117777766666 6,448 33333,,,,,444442222233333 44444,,,,,111117777799999 44444,,,,,666661111122222 5,575 111113333300000 333330000088888 -----444443333366666 873 Oct 33333,,,,,666668888888888 22222,,,,,666666666699999 44444,,,,,333331111166666 6,432 33333,,,,,444449999988888 33333,,,,,444446666699999 44444,,,,,777773333388888 5,905 111119999900000 -----888880000000000 -----444442222211111 527 Nov 33333,,,,,444449999999999 33333,,,,,111119999966666 44444,,,,,444447777733333 33333,,,,,444442222288888 33333,,,,,444445555566666 55555,,,,,111114444488888 7777711111 -----222226666600000 -----666667777755555 Dec 33333,,,,,555556666699999 33333,,,,,888888888811111 44444,,,,,555555555588888 33333,,,,,444440000011111 44444,,,,,111116666699999 55555,,,,,000000000022222 111116666688888 -----222228888888888 -----444444444444444 Quarter: I 1111100000,,,,,333332222277777 1111111111,,,,,000008888866666 1111111111,,,,,777776666677777 15,421 99999,,,,,777772222200000 1111100000,,,,,777779999922222 1111133333,,,,,444440000033333 16,254 666660000077777 222229999944444 -----11111,,,,,666663333377777 -833 I I 1111100000,,,,,777779999988888 1111111111,,,,,000004444499999 1111111111,,,,,666667777733333 16,868 99999,,,,,888886666644444 1111111111,,,,,777771111199999 1111133333,,,,,333337777700000 16,846 999993333333333 -----666667777700000 -----11111,,,,,666669999977777 22 II I 1111100000,,,,,888884444488888 1111111111,,,,,777772222277777 1111122222,,,,,444444444477777 18,321 1111100000,,,,,000002222233333 1111111111,,,,,999992222244444 1111133333,,,,,999990000033333 17,358 888881111166666 -----111119999977777 -----11111,,,,,444445555566666 963 I V 1111100000,,,,,777775555566666 99999,,,,,777774444466666 1111133333,,,,,333334444477777 1111100000,,,,,333332222277777 1111111111,,,,,000009999944444 1111144444,,,,,888888888888888 444442222255555 -----11111,,,,,333334444488888 -----11111,,,,,555554444400000 Year3 4444422222,,,,,666665555599999 4444433333,,,,,555554444499999 4444499999,,,,,222220000088888 3333399999,,,,,999995555522222 4444455555,,,,,555556666633333 5555555555,,,,,555555555555555 22222,,,,,777770000077777 -----22222,,,,,000001111144444 -----66666,,,,,333334444477777 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 • DECEMBER 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 IV I II III Western Europe: --8822 -----------5555555555555555555555 ----111100000000 --2255 44 -----------4444444444400000000000 ----88883333 ---555888 ---111111000 --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333333222222555555 --112299 ---444777333 -----------222222222222222222222255555555555 555555000000000000 -----------11111111111 -------2222222 ---222 ---222 ----55552222 444444111111 22 Italy 222222222220000000000000000000000 -------88888880000000 ---666000 ---888555 ----222200009999 ------777777666666 -----------6666666666600000000000 -------33333335555555 ----11119999 ----55550000 --2255 --113300 -----------3333333333322222222222 -------111111188888880000000 55551111 -----------8888888888811111111111 -------55555550000000 ---222 ---333000 ---555000 --2255 ----55550000 --117755 332299 666666666661111111111188888888888 111111155555550000000 888000 ---888777999 ---888333555 Other 11 --66 --3355 ——4499 1166 --4477 222HHH000000 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 Canada 222222000000000000 111115555500000 5555500000 LLaattiinn AAmmeerriiccaann rreeppuubblliiccss:: AArrggeennttiinnaa ---333000 ------333333999999 -----2222255555***** --2255 ----22228888 BBrraazziill 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: Iraq ---111000 -----44444 ---222111 ---444222 -----5555566666 --111199 Lebanon --1111 -----1111111111 --11 -------99999995555555 ----33335555 -------33333334444444 ----11110000 Philippines . ...... 2255 2200 ** --11 9999999 4400 --44 ----2222 -------55555550000000 -------88888881111111 111111 ---333000 Other --1133 --66 --1144 --1144 --2222 -------77777775555555 ---999 22--9911 333999 --33 TToottaall 111222 333 ---222444 ---888666 ---444444 ---333666666 444222 ---222111333 ---333888 --33 All other ---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 Intl Monetary Fund 5 6666----222222225555 111177777777 22222222 ----3333 11110000 ————111155556666 ----22222222 ----555544444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ----1111,,,,000000009999 ----1111,,,,111122221111 999966667777 ————777788887777 ----888866667777 ----555544447777 1 Includes purchase from Denmark of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 2 Includes purchase from Kuwait of $25 million. by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 3 Includes sales to Algeria of $150 million in 1967 and $50 million in first withdrawal ($17 million) was made in June 1968 and the last with- 1968. drawal ($144 million) was made in Feb. 1972. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Treasury to the IMF. The country data include U.S. gold sales to various countries securities. IMF repurchased $400 million in Sept. 1970 and the remaining in connection with the IMF quota payments. Such U.S. sales to countries $400 million in Feb. 1972. and resales to the United States by the IMF total $548 million each. 6 Payment to the IMF of $259 million increase in U.S. gold subscription 5 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 5 Includes $259 million gold subscription to the IMF in June 1965 for IMF operations. Does not include transactions in gold relating to gold a U.S. quota increase, which became effective on Feb. 23, 1966. In figures deposit or gold investment (see Table 6). published by the IMF from June 1965 through Jan. 1966, this gold sub- 2 Positive figures represent purchases from the IMF of currencies of scription was included in the U.S. gold stock and excluded from the other members for equivalent amounts of dollars; negative figures repre- reserve position. sent repurchase of dollars, including dollars derived from charges on 6 Includes $30 million of Special Drawing Rights. purchases and from other net dollar income of the IMF. The United 7 Represents amount payable in dollars to the IMF to maintain the States has a commitment to repurchase within 3 to 5 years, but only to value of IMF holdings of U.S. dollars. the extent that the holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. Purchases of dollars by other countries reduce the U.S. NOTE.—The initial U.S. quota in the IMF was $2,750 million. The U.S. commitment to repurchase by an equivalent amount. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 3 Includes dollars obtained by countries other than the United States 1966, to $6,700 million in Dec. 1970, and revalued to $7,274 million in from sales of gold to the IMF. May 1972 and $8,083 million in Oct. 1973 as a result of changes in par 4 Represents the U.S. gold tranche position in the IMF (the U.S. value of the U.S. dollar. Under the Articles of Agreement subscription quota minus the holdings of dollars of the IMF), which is the amount payments equal to the quota have been made 25 per cent in gold and 75 that the United States could purchase in foreign currencies automatically per cent in dollars. if needed. Under appropriate conditions, the United States could purchase additional amounts equal to its quota. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1973 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r o t Total To G ta o l2 l d st T o r c e k a i s ury v c fo u e C c r r r o i t e r e i n i e b s g n - l n e - p R I o e M s s i e t F r io 3 v 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 n e t F r i o v 3 n e SDR's4 1959.. 21,504 19,507 19,456 1,997 1972 I960.. 19,359 17,804 17,767 1,555 Nov... 13,307 10,487 10,410 403 459 1,958 1961.. 18,753 16,947 16,889 116 1,690 Dec... 13,151 10,487 10,410 241 465 1,958 1962.. 17,220 16,057 15,978 99 1,064 1963.. 16,843 15,596 15,513 212 1,035 1973 1964.. 16,672 15,471 15,388 432 769 Jan... 13,054 10,487 10,410 140 469 1,958 Feb... 12.926 10,487 10,410 8 473 1,958 1965.. 15,450 6 13,806 613,733 781 6 863 Mar. . 12,931 10,487 10,410 8 478 1,958 1966.. 14,882 13,235 13,159 1,321 326 Apr... 12,904 10,487 10,410 8 460 1,949 1967.. 14,830 12,065 11,982 2,345 420 May.. 12,916 10,487 10,410 16 464 1,949 1968.. 15,710 10,892 10,367 3,528 1,290 June. . 12,914 10,487 10,410 470 1,949 1969.. 716,964 11,859 10,367 72,781 2,324 July.. 12,918 10,487 10,410 474 1,949 Aug... 12,923 10,487 10,410 479 1,949 1970.. 14,487 11,072 10,732 629 1,935 851 Sept... 12.927 10,487 10,410 483 1,949 1971.. 812,167 10,206 10,132 8 276 585 1,100 Oct... 1014,367 1011,652 1011,567 10541 102,166 19729. 13,151 10,487 10,410 241 465 1,958 Nov... 14,373 11,652 11,567 547 2,166 1 Includes (a) gold sold to the United States by the IMF with the right 7 Includes gain of $67 million resulting from revaluation of the German of repurchase, and (b) gold deposited by the IMF to mitigate the impact mark in Oct. 1969, of which $13 million represents gain on mark holdings on the U.S. gold stock of foreign purchases for the purpose of making at time of revaluation. gold subscriptions to the IMF under quota increases. For corresponding 8 Includes $28 million increase in dollar value of foreign currencies liabilities, see Table 6. revalued to reflect market exchange rates as of Dec. 31, 1971. 2 Includes gold in Exchange Stabilization Fund. 9 Total reserve assets include an increase of $1,016 million resulting 3 The United States has the right to purchase foreign currencies equiva- from change in par value of the U.S. dollar on May 8, 1972; of which, lent to its reserve position in the IMF automatically if needed. Under ap- total gold stock is $828 million (Treasury gold stock $822 million), reserve propriate conditions the United States could purchase additional amounts position in IMF $33 million, and SDR's $155 million. equal to the U.S. quota. See Table 5. 10 Total reserve assets include an increase of $1,436 million resulting 4 Includes allocations by the IMF of Special Drawing Rights as follows: from change in par value of the U.S. dollar on Oct. 18, 1973; consisting $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 of $1,165 million total gold stock, $1,157 million Treasury gold stock, $54 million on Jan. 1, 1972; plus net transactions in SDRs. million reserve position in IMF, and $217 million special drawing rights. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 6 Reserve position includes, and gold stock excludes, $259 million gold NOTE.—See Table 24 for gold held under earmark at F.R. Banks for subscription to the IMF in June 1965 for a U.S. quota increase which foreign and international accounts. Gold under earmark is not included became effective on Feb. 23, 1966. In figures published by the IMF from in the gold stock of the United States. June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 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)) UU..SS.. ttrraannssaaccttiioonnss wwiitthh IIMMFF TTTrrraaannnsssaaaccctttiiiooonnnsss bbbyyy UUUUU.....SSSSS..... ooottthhheeerrr cccooouuunnntttrrriiieeesss rrrrreeeeessssseeeeerrrrrvvvvveeeee PPPPPeeeeerrrrriiiiioooooddddd PP ss tt uu aa dd ii bb oo yy oo nn mm ss oo llll cc ff ss aa ee rr rr ii nn ii pp ss nn tt -- ss bbyy ss gg NN II aa oo MM ll ee ll ee dd tt FF ss ii TT tt cc ff ii rr oo cc uu oo aa ii rr rr nn ee nn ee rr ss ss ii ss ee gg aa nn 22 ii nn nn cc -- -- 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 l c o l h a f a www r s s iii e 3 ttt s hhh III p MMM u d FFF r o R c l i l h n e a - a r s s e s cccc TTTT hhhhaaaa oooo nnnn ttttaaaa gggg llll eeee AAAmmmooouuunnnttt PPP qqq eee UUU rrr uuu ooo ... ooo fff ccc SSS ttt eee ... aaa nnn ttt ppppp ppppp ((((( iiiii eeeee nnnnn eeeee ooooo rrrrr nnnnn sssss iiiii ddddd IIIII iiiii ooooo ttttt MMMMM ddddd iiiiiooooo ooooo ))))) FFFFF 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 1970 11,,115555 6666777711112222**** 111155550000 2222222222222222222222255555555555555555555555 ---------888888888555555555444444444 777744441111 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999992222222222222222222222299999999999999999999999 44444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777776666666666666666666666655555555555555555555555 7777777777777777777777711111111111111111111111 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999993333333333333333333333355555555555555555555555 1971 1111,,,,333366662222 -----------------------2222222222222222222222288888888888888888888888 ---------222222222444444444 44440000 11111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333335555555555555555555555500000000000000000000000 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111155555555555555555555555 9999999999999999999999911111111111111111111111 555555555555555555555558888888888888888888888855555555555555555555555 1972 77 554411 222200000000 -----------------------4444444444444444444444477777777777777777777777 666666666666666666666669999999999999999999999944444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111100000000000000000000000 9999999999999999999999944444444444444444444444 444444444444444444444446666666666666666666666655555555555555555555555 1972—Nov -----------------------44444444444444444444444 -----------------------44444444444444444444444 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888881111111111111111111111166666666666666666666666 9999999999999999999999944444444444444444444444 444444444444444444444445555555555555555555555599999999999999999999999 Dec -----------------------66666666666666666666666 -----------------------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 Aug -----------------------55555555555555555555555 -----------------------55555555555555555555555 66666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777779999999999999999999999955555555555555555555555 9999999999999999999999933333333333333333333333 444444444444444444444447777777777777777777777799999999999999999999999 O" S e c p t t 77 775544 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 77777777777777777777777 -----------------------44444444444444444444444 55555555555555555555555 00000000000000000000000 77777777777777777777777 66666666666666666666666 ,,,,,,,,,,,,,,,,,,,,,,, ....................... 55555555555555555555555 77777777777777777777777 44444444444444444444444 99999999999999999999999 11111111111111111111111 11111111111111111111111 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 44444444444444444444444 55555555555555555555555 88888888888888888888888 44444444444444444444444 33333333333333333333333 11111111111111111111111 Nov -----------------------55555555555555555555555 -----------------------55555555555555555555555 77777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555553333333333333333333333366666666666666666666666 9999999999999999999999933333333333333333333333 555555555555555555555554444444444444444444444477777777777777777777777 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. • DECEMBER 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 f I r g r t r i M i a o s o o n l i m F n d n s s g - 1 Total t p S l b i i t o h e a a e b s i r b o r n n y t m r i k r e l t e i d s - - - M n T b U o a a o r a t b r e n n . e S k a l d d s e . e s s 3 . t - N v k T b o e e U c o n a r r t o n e n t . a m n S i a d b d b - . a s s l l . e e r - N n v k T b o o n e e U o a n r n r o t n e n t . a m c t S i a d e b d o b . a s s s l n l . e 4 r e - - m r l O i e t a a a a i t r b b e h d k l s i e i e l 5 e l i r y t - - a t m L o l b b i e a i r a t q c r i b o n e o c u a i s k i l m i d a i s d - l - 6 Total p t l S b i i t o e h a a e b i s r b o n r n y t m i r k r e l t e i d s - - - n M T b o U a a o a t r e b r n e n . s S k a l d d e 3 . s e » s . t 7 - U.S. notes U.S. 24,268 800 12.914 11,963 751 200 5,346 3,013 2,565 J26,433 800 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 (29,313 800 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 J35,819 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 f 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 io/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 \67,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 81,420 60,931 40,266 4,457 12.097 3,651 460 14,173 4,822 4,416 82,373 61,127 40,045 4,834 12.098 3,651 499 14,776 4,745 4,322 82,883 61,520 39,994 5,236 12,108 3,639 543 14,785 4,952 4,527 82,048 60,796 38,534 5,798 12,110 3,780 574 14,767 4,892 4,467 87,854 68,475 45,413 6,377 12,110 3.627 948 12,791 4,968 4,596 1290,884 1271,331 46,924 6,917 1212,128 3,617 1,745 12,955 4,960 4,584 1390,580 70,748 45,949 6,934 12,245 3,631 1,989 13,052 5,149 4,750 92,085 70.915 46,112 6,934 12,245 3.628 1,996 14,274 5,147 4,763 92,185 70,693 45,705 6,934 12,245 3,805 2,004 14,500 5,323 4.940 93,212 71,019 46,129 6,934 12,245 3,705 2,006 15,420 5,257 4,883 92,569 70,513 45,714 6,906 12,319 3,555 2,019 15,204 5,322 4,987 92,101 69,775 45,172 6,914 12,319 3,355 2,015 15,219 5,490 5.143 93,121 69,691 45,201 6,929 12,319 3,233 2,009 16,092 5,518 5.144 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. 7 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 i o 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

DECEMBER 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 t b 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 /17,407 8,070 1,867 1,865 5,043 259 303 1968 3 \17,340 8,062 1,866 1,865 4,997 248 302 4 15,975 4 7,074 1,624 1,888 4,552 546 291 1969 3 15,998 7,074 1,624 1,911 4,552 546 291 /23,786 13,620 2,951 1,681 4,713 407 414 1970 3 123,775 13,615 2,951 1,681 4,708 407 413 /51,209 30,010 3,980 1,414 14,519 415 871 1971 5 150,651 30,134 3,980 1,429 13,823 415 870 1972—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.r. 60,796 34,146 4,201 1,728 17,033 673 3,015 Feb.. . 68,475 40,773 4.290 1,895 17,907 809 2,801 Mar.., 6 71,331 6 45,229 4,221 1,749 16,564 823 2,745 Apr... 7 70,748 7 45,608 4,157 1,915 15,415 839 2,814 Mayr. 70,915 46,646 4,104 1,903 14,425 940 2.897 Juner. 70,693 46,967 4,111 1,998 13,727 992 2.898 July r. 71,019 47,140 4,043 2,072 13,686 928 3,150 Aug... 70,513 47,260 3,836 2,014 13,631 738 3,034 Sept.* 69,775 47,099 3,759 1,860 13,289 769 2,999 Oct.*. 69,691 47,515 3,851 1,927 12,601 735 3,062 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 Deposits End of period Payable gold U.S Total 1 Total Dem D an e d p os T its im e2 b T i c c r l e U l e a s r a t . t S e s 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 4 r - r fo e c r n i u e n c r i i g - e n s in m v e e n st t - 5 Demand Time2 b T i c r l c e l e s a r a t t s i e a f u s i n r - d y 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 59,598 7,071 5,146 33,071 14,310 538 1,281 63 210 204 60,112 7,011 5,379 32,774 14,948 543 1,512 95 242 380 60,222 8,288 5,629 31,850 14,455 496 1,412 86 202 326 58,622 7,452 5,533 30,134 15,504 526 1,380 118 172 279 63,705 7,786 5,595 36,522 13,801 513 1,418 133 144 287 65,341 7,606 5,612 37,947 14,175 548 1,426 114 134 260 64,596 8,118 5,654 36,440 14,383 584 1,429 119 112 221 66,157 8,364 5,714 35,965 16,114 572 1,579 141 119 148 66,070 9,113 5,829 34,931 16,197 644 1,569 155 134 169 67,312 8,988 5,876 34,556 17,892 607 1,486 206 114 116 66,779 8,435 6,139 34,257 17,948 611 1,485 178 116 61 66,424 8,779 6,139 33,702 17,804 660 1,550 80 98 62 67,628 9,076 6,760 32,869 18,923 577 1,767 70 93 173 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. • DECEMBER 1973 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions l0 Payable in dollars Payable in dollars Payable Total Dema D n e d p osi T ts i me2 T b c i r c l e U e a l r s a t . t e s S i a u s f . n i r 3 - d y s O l t i h 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 n e d p osits T bi c c r l U e e a ls r a t . t e S s a i u s . f n i r 3 - d y s O t l h i e a t 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 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 /53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 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 59,306 8,203 5,427 31,523 13,657 496 39,994 1,589 2,876 31,453 3,905 57,768 7,333 5,361 29,855 14,693 526 38,534 1,405 2,875 29,779 4,303 62,800 7,653 5,450 36,235 12,948 513 45,413 1,756 2,841 36,147 4,497 64,463 7,492 5,478 37,687 13,257 548 46,924 1,543 2,832 37,620 4,757 63,751 7,999 5,542 36,219 13,407 584 45,949 1,714 2,916 36,137 4,996 65,149 8,223 5,596 35,817 14,942 572 46,112 1,719 2,945 35,736 5,525 65,145 8,958 5,695 34,762 15,087 644 45,705 1,940 3,117 34,684 5,777 66,432 8,781 5,761 34,440 16,843 607 46,129 1,934 3,185 34,360 6,461 65,905 8,257 6,023 34,196 16,819 611 45,714 1,575 3,348 34,118 6,545 65,534 8,699 6,042 33,640 16,494 660 45,172 1,631 3,226 33,554 6,634 66,437 9,006 6,666 32,696 17,493 577 45,201 1,810 3,836 32,613 6,815 To banksii To other foreigners Payable in dollars Total Total Dema D n e d p osi T ts i me2 T b c i r c l e U e l a r s a . t t s S e i a u f s . n i r - d y s O l t i h e a t o r h b r m e . t 4 r - Total Dema D nd ep osi T ts i me2 T b c i r c l e U e l a r s a . t t s S e i a u f . s n i r - d y s O l t h i e a t o r h b r m e . t 4 r - 27,709 23,419 16,756 1,999 4,644 4,064 1,711 1,935 107 312 21,166 16,917 12,376 1,326 3,202 4,029 1,688 1,886 131 325 21,208 16,949 12,385 1,354 3,197 4,039 1,688 1,895 131 325 13,953 10,034 7,047 850 2,130 3,691 1,660 1,663 96 274 14,643 10,721 3,399 320 6,995 3,694 1,660 1,666 96 271 18,589 13,805 3,798 434 9,570 4,417 1.875 1,933 70 538 19,097 14,404 3,938 481 9,981 4,322 1,706 2,014 75 528 19,312 14,460 4,649 525 9,270 4,527 1,954 2,026 65 481 19,234 14,413 4,155 415 9,835 4,467 1,773 20,70 69 555 17,387 12,449 4,084 483 7,877 4,596 1,813 2.127 83 573 17,539 12,579 4,144 518 7,912 4,584 1,805 2.128 63 588 17,803 12,654 4,335 514 7,799 4,751 1,951 2,113 75 611 19,037 13,889 4,645 535 8,701 4,764 1,859 2,116 73 716 19,440 14,042 5,053 404 8,577 4,941 1,965 2,174 70 732 20,303 15,003 4,957 432 9,605 4,883 1,890 2,144 72 776 20,191 14,720 4,806 491 9,413 4,987 1.876 2,183 68 861 20,362 14,686 5,096 603 8,979 5,143 1,972 2,213 77 881 21,236 15,642 5,219 651 9,765 5,145 1,977 2,179 76 912 1 Data exclude "holdings of dollars" of the IMF. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches, which were previously reported as deposits, are included in "Other." in "Other short-term liabilities"; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as "Official institutions" are included in "Banks"; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers' acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities to official time certificates of deposit. See also note 8(a). institutions of foreign countries revalued to reflect market exchange rates. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of lOForeign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac- ii 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

DECEMBER 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) 1972 1973 AArreeaa aanndd ccoouunnttrryy Dec.r Jan.r Feb.' Mar.r Apr.r Mayr Juner July Aug. Sept.p Oct.f Europe: Austria 272 268 267 281 292 301 297 305 302 292 204 1,092 974 1,165 1,253 1,245 1,373 1,376 1,456 1,378 1,377 1,410 Denmark 284 321 364 400 406 502 489 477 437 409 470 163 152 158 142 168 244 194 165 153 145 135 4,441 4,434 4,483 5,000 5,167 5,327 5,406 5,452 5,246 5,301 4,135 Germany 5,346 5,034 10,494 12,990 12,701 12,161 12,003 12,837 12,912 13,256 14,162 238 210 224 223 175 219 219 240 236 215 280 Italy 1,338 1,085 1,041 968 1,020 1,171 1,072 870 1,506 1,140 1,095 1,468 1,356 1,762 2,532 2,543 2,427 2,369 2,029 1,945 2,022 2,534 Norway 978 973 995 1,018 1,035 1,046 1,049 1,082 1,055 1,024 999 Portugal 416 439 498 518 502 511 500 477 472 459 467 Spain 256 231 222 256 250 325 334 282 237 259 284 Sweden 1,184 1,189 1,403 1,483 1,682 1,787 1,905 1,951 1,871 1,835 1,787 Switzerland 2,857 2,924 2,845 2,901 2,959 3,272 3,268 3,310 3,226 3,309 3,320 Turkey 97 109 94 105 118 71 75 102 115 72 83 United Kingdom 5,011 5,510 4,546 4,657 4,741 5,899 6,317 6,457 5,943 5,593 6,403 Yugoslavia 117 82 78 58 69 73 66 66 57 58 69 Other Western Europe1 1,483 1,464 1,502 1,619 1,772 2,164 2,360 2,965 3,015 3,099 3,423 11 14 21 14 8 9 11 18 17 16 40 Other Eastern Europe 81 71 65 71 71 66 74 81 90 114 96 Total 27,134 26,840 32,227 36,488 36,924 38,949 39,383 40,621 40,212 39,994 41,393 3,467 3,861 3,306 3,293 3,600 3,796 3,327 3,392 3,786 3,720 3,811 Latin America: Argentina 631 631 689 687 694 730 727 750 800 889 765 Bahamas 2 539 291 263 200 228 502 462 796 563 589 457 Brazil 605 643 648 671 703 768 770 920 732 700 745 Chile 137 132 136 143 140 137 140 134 126 127 137 210 210 218 184 197 219 200 200 168 167 207 Cuba 6 7 7 6 7 7 10 7 7 7 7 Mexico 831 783 800 788 853 843 925 919 975 1,044 1,029 Panama 167 193 201 171 168 192 186 194 217 204 231 Peru 225 176 167 172 167 170 180 190 177 178 152 Uruguay 140 140 138 132 143 150 180 128 126 114 115 Venezuela 1,077 995 1,051 948 1,044 967 1,054 1,066 1,078 941 1,130 Other Latin American republics 860 839 827 804 818 778 783 744 791 791 742 Netherlands Antilles and Surinam 86 81 84 76 72 64 68 78 61 65 70 Other Latin America 44 236 237 216 243 269 648 408 402 463 529 Total 5,558 5,356 5,463 5,197 5,478 5,796 6,323 6,532 6,224 6,279 6,317 Asia: China, People's Rep. of (China Mainland 39 39 37 49 43 44 41 38 43 40 37 China, Republic of (Taiwan) 675 737 783 816 831 832 846 790 810 813 779 Hong Kong 318 336 319 337 330 368 341 289 356 349 363 India 98 115 134 114 125 145 110 141 103 99 105 Indonesia 108 101 96 89 90 117 155 176 140 254 169 Israel 177 139 146 137 144 142 161 159 146 173 278 Japan 15,843 14,570 14,733 12,344 10,415 9,056 8,458 8,126 8,003 7,680 7,061 Korea 192 224 210 227 214 231 226 219 217 213 198 Philippines 438 445 453 513 520 575 544 545 541 482 480 Thailand 171 211 187 170 166 177 175 146 140 143 161 Other 1,071 951 897 869 940 873 883 958 1,139 1,165 1,138 Total 19,131 17,867 17,995 15,665 13,818 12,560 11,940 11,588 11,640 11,412 10,769 Africa: Egypt 24 21 28 17 33 67 29 29 41 34 34 Morocco 12 9 8 13 9 8 11 15 10 11 10 South Africa 115 111 104 125 125 120 155 169 100 132 103 Zaire 21 18 23 22 28 45 17 21 27 19 26 Other 768 573 728 739 798 786 904 803 683 765 747 Total 939 733 891 917 992 10,25 1,118 1,037 862 962 920 Other countries: Australia 3,027 3,046 2,861 2,489 2,882 2,961 2,985 3,202 3,124 3,106 3,169 All other 51 65 57 54 57 60 71 61 57 61 59 Total 3,077 3,111 2,918 2,903 2,939 3,022 3,056 3,263 3,181 3,168 3,228 Total foreign countries 59,306 57,768 62,800 64,463 63,751 6,5149 65,145 66,432 65,905 65,534 66,437 International and regional: International 3 952 931 958 980 983 1,132 1,149 1,097 1,123 1,181 1,402 Latin American regional 307 301 318 320 337 345 329 309 289 298 299 Other regional4 154 147 141 126 109 102 89 81 72 71 66 Total 1,412 1,380 1,418 1,426 1,429 1,579 1,569 1,486 1,485 1,550 1,767 Grand total 60,719 59,148 64,218 65,889 65,180 66,729 66,714 67,919 67,389 67,085 68,204 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. • DECEMBER 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 AArreeaa aanndd ccoouunnttrryy Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec Other Western Europe: Other Asia—Cont.: Cyprus 7 2 2 3 9 36 20 16 39 Iceland 10 11 9 9 12 2 3 3 2 Ireland, Rep. of 29 16 15 17 22 60 46 60 55 28 23 25 54 Other Latin American republics: 28 33 58 59 Bolivia 59 55 53 87 65 Ryukyu Islands (incl. Okinawa)6 39 29 53 Costa Rica 43 62 70 92 75 Saudi Arabia 41 79 80 344 Dominican Republic 90 123 91 114 104 Singapore 43 35 45 77 Ecuador 72 57 62 121 109 Sri Lanka (Ceylon) 4 4 6 5 El Salvador 80 78 83 76 86 3 4 6 4 Guatemala 97 117 123 132 127 161 159 185 135 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 13 23 31 32 Paraguay 15 17 17 22 26 Ethiopia (incl. Eritrea) 12 11 29 57 Trinidad & Tobago 14 10 15 20 17 6 8 11 10 13 9 14 23 Ot B h e er r m L u a d ti a n America: (2) (2) (2) (2) 127 9 2 1 1 2 2 7 3 4 2 2 9 5 6 39 3 3 0 British West Indies 38 32 23 36 100 25 46 56 85 Southern Rhodesia 2 2 2 2 Other Asia: 1 1 5 3 B B A a u fg h r h r m a a a i n n i stan 3 1 5 3 5 2 1 1 1 0 9 1 1 5 7 8 2 2 5 4 2 ( ( 1 7 79 ) ) 1 6 5 0 9 6 3 1 7 6 0 1 1 7 1 0 Cambodia 2 5 2 3 3 14 13 7 28 I I r ra a q n 67 7 5 1 9 0 88 9 9 1 3 0 1 ( 174 ) All other: Jordan 3 2 2 4 4 New Zealand 22 23 27 30 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in "Europe." 3 Data exclude "holdings of dollars" of the International Monetary 5 Represent a partial breakdown of the amounts shown in the "other" Fund but include IMF gold investment until Feb. 1972, when investment categories (except "Other Eastern Europe"). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To intl. Total and Official Other Ger- United Other Total Other regional Total institu- Banks i foreign- many King- Europe Latin Japan Asia tions ers dom America 2,490 889 1,601 1,505 56 40 46 7 239 655 1,703 789 914 695 165 53 110 42 26 152 385 902 446 457 144 257 56 164 52 30 111 3 1,068 615 453 97 269 87 165 68 37 135 1,051 600 450 94 269 88 165 68 37 134 (1,000 562 439 93 259 87 165 63 32 136 \1,018 580 439 93 259 87 165 63 32 136 1,044 617 427 74 257 96 165 61 30 127 1,276 613 663 304 258 100 164 59 233 118 1,406 697 709 328 269 112 164 66 234 133 1,399 686 713 329 274 111 164 68 239 128 1,379 688 691 313 274 104 164 68 231 115 1,467 769 697 311 274 113 164 68 233 125 1,527 770 757 311 305 141 164 68 265 145 1,532 777 755 322 305 127 165 68 265 143 1,504 760 744 318 302 123 165 68 263 145 1,473 735 738 312 305 122 165 68 265 140 i Excludes central banks, which are included with "Official institutions.' 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.* Oct.f Europe: Belgium-Luxembourg 6 6 6 6 6 6 6 6 6 6 6 7 7 Sweden 35 85 85 110 135 135 135 135 135 135 135 165 165 45 45 45 45 44 43 44 43 43 42 37 37 37 308 326 327 327 276 278 300 281 280 275 236 247 290 Other Western Europe 79 79 79 79 79 79 79 85 85 85 85 85 85 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 478 545 547 572 544 546 569 555 554 547 504 546 588 479 "559 558 558 559 561 561 560 560 560 560 560 560 Latin America: Latin American republics 1 1 1 1 1 11 11 1 11 4 8 9 9 Other Latin America 6 6 6 6 6 6 6 6 6 3 3 3 3 Total 7 7 7 7 7 7 7 7 7 7 11 12 12 Asia: 3,756 4,003 4,380 4,867 5,421 5,961 5,978 5,978 5,977 5,977 5,949 5,950 5,950 Other Asia 10 10 10 10 10 10 10 10 10 9 9 11 11 Total 3,766 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 133 133 133 183 183 183 183 183 183 183 183 158 158 • * 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 4,863 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 International and regional: International 186 186 186 186 176 186 176 142 72 1 1 21 6 Latin American regional 27 28 28 28 26 26 27 27 27 28 45 45 47 Total 213 214 214 214 202 212 202 169 100 29 46 66 53 Grand total 5,076 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 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 EEnndd ooff ppeerriioodd TToottaall China, Total g B iu e m l- a C d a a n - 1 ( R Ta ep iw . a o n f ) m G a e n r- y Italy 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 - 1969 44444444444444444 33333333333333333,,,,,,,,,,,,,,,,,111111111111111118888888888888888811111111111111111 11111111111111111,,,,,,,,,,,,,,,,,444444444444444443333333333333333311111111111111111 3333333333322222222222 11111111111111111,,,,,,,,,,,,,,,,,111111111111111112222222222222222299999999999999999 2222222222200000000000 111111111111111113333333333333333355555555555555555 111111555555 111111111111000000000000000000000000 44444444444444444 11111111111111111,,,,,,,,,,,,,,,,,777777777777777775555555555555555500000000000000000 444444444444444 111111111111111,,,,,,,,,,,,,,,000000000000000888888888888888444444444444444 112255 555555555555555554444444444444444411111111111111111 1970 33333333333333333,,,,,,,,,,,,,,,,,555555555555555556666666666666666633333333333333333 22222222222222222,,,,,,,,,,,,,,,,,444444444444444448888888888888888800000000000000000 3333333333322222222222 22222222222222222,,,,,,,,,,,,,,,,,222222222222222228888888888888888899999999999999999 2222222222200000000000 2222222222222222255555555555555555 111111555555 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,000000000000000008888888888888888833333333333333333 555555555555555444444444444444222222222222222 555555555555555554444444444444444411111111111111111 1971 55555555555555555 99999999999999999,,,,,,,,,,,,,,,,,666666666666666665555555555555555577777777777777777 77777777777777777,,,,,,,,,,,,,,,,,888888888888888882222222222222222299999999999999999 3333333333322222222222 22222222222222222,,,,,,,,,,,,,,,,,666666666666666664444444444444444400000000000000000 2222222222200000000000 555555555555555,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000 2222222222222222222222222222222222 111111555555 111111111111000000000000000000000000 55555555555555555 11111111111111111,,,,,,,,,,,,,,,,,888888888888888882222222222222222277777777777777777 666666666666666111111111111111222222222222222 11111111111111111,,,,,,,,,,,,,,,,,222222222222222221111111111111111155555555555555555 1972—Nov 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888887777777777777777722222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,333333333333333334444444444444444455555555555555555 3333333333322222222222 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 2222222222200000000000 111111111111111111111111111111,,,,,,,,,,,,,,,333333333333333111111111111111555555555555555 2222222222222222222222222222222222 111111555555 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555552222222222222222288888888888888888 333333333333333000000000000000666666666666666 11111111111111111,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222 Dec 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888887777777777777777722222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 2222222222200000000000 111111111111111111111111111111,,,,,,,,,,,,,,,333333333333333111111111111111555555555555555 2222222222222222222222222222222222 111111555555 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555553333333333333333399999999999999999 333333333333333000000000000000666666666666666 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 2222222222200000000000 1973—Jan 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111166666666666666666 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444447777777777777777744444444444444444 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 2222222222222222222222222222222222 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555554444444444444444422222222222222222 333333333333333000000000000000666666666666666 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333366666666666666666 Feb 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888886666666666666666633333333333333333 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444447777777777777777744444444444444444 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 2222222222200000000000 111111111111111111111111111111,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 2222222222222222222222222222222222 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888899999999999999999 111111111111111555555555555555333333333333333 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333366666666666666666 Mar 666666666666666661111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888887777777777777777700000000000000000 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444446666666666666666644444444444444444 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 1111111111100000000000 111111111111111111111111111111,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 2222222222222222222222222222222222 111111111111000000000000000000000000 6666666666666666611111111111111111,,,,,,,,,,,,,,,,,444444444444444440000000000000000077777777777777777 111111111111111555555555555555333333333333333 11111111111111111,,,,,,,,,,,,,,,,,222222222222222225555555555555555544444444444444444 Apr 666666666666666661111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111155555555555555555 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444445555555555555555599999999999999999 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 55555555555 111111111111111111111111111111,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 2222222222222222222222222222222222 111111111111000000000000000000000000 6666666666666666611111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 May 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111122222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444445555555555555555566666666666666666 2222222222200000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 22222222222 111111111111111111111111111111,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 2222222222222222222222222222222222 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 June 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,111111111111111118888888888888888899999999999999999 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,666666666666666663333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 111111111111000000000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 July 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000008888888888888888899999999999999999 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,555555555555555553333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 Aug 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111155555555555555555 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,333333333333333338888888888888888833333333333333333 22222222222222222,,,,,,,,,,,,,,,,,666666666666666669999999999999999900000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,666666666666666663333333333333333311111111111111111 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555588888888888888888 Sept 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888881111111111111111133333333333333333 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,111111111111111118888888888888888833333333333333333 22222222222222222,,,,,,,,,,,,,,,,,444444444444444449999999999999999900000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,666666666666666663333333333333333311111111111111111 111111111111111777777777777777222222222222222 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555588888888888888888 Oct 1111111111111111155555555555555555.................666666666666666669999999999999999911111111111111111 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 11111111111111111.................444444444444444445555555555555555588888888888888888 11111111111111111.................444444444444444445555555555555555588888888888888888 Nov 1111111111111111155555555555555555.................666666666666666669999999999999999922222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 111111111111111111111111111111,,,,,,,,,,,,,,,666666666666666777777777777777000000000000000 2222222222222222222222222222222222 11111111111111111.................444444444444444445555555555555555599999999999999999 11111111111111111.................444444444444444445555555555555555599999999999999999 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 oblieations 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. • DECEMBER 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 AArreeaa aanndd ccoouunnttrryy Dec. Dec.1 Mar.r Apr.r Mayr Juner July Aug. Sept.? Oct.P Europe: Austria 11 8 8 9 9 9 12 10 18 14 14 Belgium-Luxembourg 57 120 120 100 87 73 94 96 107 190 150 Denmark 49 59 59 60 63 69 69 56 67 52 50 Finland 135 118 118 131 134 140 141 134 125 114 97 France 263 330 330 424 451 447 389 434 368 413 461 Germany 235 321 321 371 345 356 399 349 281 313 371 Greece 30 29 29 29 32 19 19 28 20 16 26 Italy 160 255 255 269 288 327 326 278 278 242 282 Netherlands 105 108 108 118 129 115 109 101 155 144 127 Norway 67 69 69 70 66 67 65 79 70 67 74 Portugal 12 19 19 20 30 17 19 18 14 18 23 Spain 70 207 ,207 282 238 360 387 272 251 183 183 Sweden 118 156 164 243 246 267 234 224 184 166 155 Switzerland 145 125 125 152 186 190 245 208 206 234 242 Turkey 3 6 6 5 5 6 9 7 6 6 8 United Kingdom 559 849 967 1,032 918 984 999 1,061 1,346 1,304 11,,223366 Yugoslavia 19 22 22 18 20 13 12 12 10 10 88 Other Western Europe 12 20 20 22 29 21 29 20 21 26 34 U.S.S.R 28 41 41 54 61 50 56 56 42 46 49 Other Eastern Europe 37 49 49 52 60 69 73 84 83 97 87 Total 2,114 2,911 3,037 3,462 3,396 3,599 3,684 3,526 3,654 3,654 3,677 Canada 1,627 1,897 1,914 2,481 2,305 2,400 2,034 2,168 2,186 1,907 2,210 Latin America: Argentina 305 379 379 406 396 408 408 431 442 455 468 Bahamas 2 262 476 476 461 505 409 399 495 454 617 686 Brazil 435 649 469 740 759 851 891 965 915 879 837 Chile 139 52 52 51 45 40 43 36 50 40 80 Colombia. 380 418 418 380 401 398 412 420 422 423 423 Cuba 13 13 13 13 13 13 14 13 13 13 15 Mexico 934 1,202 1,202 1,320 1,343 1,343 1,399 1,376 1,338 1,322 1,388 Panama 125 244 244 212 183 190 218 223 262 252 273 Peru 176 145 145 132 143 147 169 180 176 178 208 Uruguay 41 40 40 40 36 31 34 34 35 39 45 Venezuela 268 383 383 404 401 440 454 454 441 430 436 Other Latin American republics 374 388 388 369 382 383 380 373 394 409 431 Netherlands Antilles and Surinam 18 14 14 17 24 35 38 48 38 31 23 Other Latin America 26 36 36 03 85 74 66 71 89 90 136 Total 3,494 4,437 4,437 4,646 4,715 4,762 4,925 5,119 5,069 5,176 5,449 Asia: China, People's Rep. of (China Mainland) 1 1 2 2 5 3 7 6 7 15 China, Republic of (Taiwan) 110099 194 194 231 238 216 200 198 183 141 136 Hong Kong 70 93 93 111 122 132 204 218 116 128 121 India 21 14 14 16 14 19 21 18 17 19 14 41 87 87 127 127 97 94 91 77 81 89 Israel 129 105 105 142 126 116 111 133 133 145 145 Japan 4,280 4,158 4,158 5,568 5,665 5,536 5,756 5,753 5,791 5,801 5,745 Korea 348 296 296 301 331 338 347 348 336 343 372 Philippines 138 149 149 140 150 139 144 134 129 121 105 Thailand 172 191 191 205 197 194 173 188 185 179 206 Other 252 300 300 274 296 324 354 352 350 361 349 Total 5,560 5,589 5,589 7,118 7,269 7,116 7,407 7,441 7,321 7,325 7,296 Africa: Egypt 10 21 21 20 22 25 34 44 41 43 38 Morocco 4 4 4 7 5 4 4 5 5 11 4 South Africa 156 143 143 155 151 166 163 150 151 157 150 Zaire 21 13 13 11 13 13 42 43 49 48 51 Other 96 124 124 133 137 136 145 149 173 144 161 Total 288 304 304 325 327 343 388 391 419 403 404 Other countries: Australia 158 291 291 244 249 232 260 271 230 218 224 All other 28 40 40 47 50 47 46 40 41 36 36 Total 186 330 330 291 299 280 305 310 271 254 260 Total foreign countries 13,269 15,468 15,611 18,323 18,311 18,501 18,744 18,956 1,9821 18,719 19,295 International and regional 3 3 3 1 2 2 1 2 1 1 1 Grand total 13,272 15,471 15,614 18,324 18,312 18,502 18,745 18,957 18,922 18,720 19,297 1 Data in the two columns shown for this date differ because of changes made to, and acceptances made for, foreigners; drafts drawn against in reporting coverage. Figures in the first column are comparable in foreigners, where collection is being made by banks and bankers for coverage with those shown for the preceding date; figures in the second their own account or for account of their customers in the United States; column are comparable with those shown for the following date. and foreign currency balances held abroad by banks and bankers and 2 Includes Bermuda through Dec. 1972. their customers in the United States. Excludes foreign currencies held NOTE.—Short-term claims are principally the following items payable by U.S. monetary authorities. on demand or with a contractual maturity of not more than 1 year: loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Loans to Collec- Accept- g F o o v r t e , ig se n - End of period Total tions ances Deposits curities, Total Total O in f s f t i i c t i u a - l Banks1 Others st o i a n u n g t d - - fo o m r f a a fo d c r e c - t. Other Total w e i i t g h n e f r o s r - a c n n o a d m n c f l e i . tions eigners paper 196 9 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 1971 2 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 1972—Oct... 13,845 13,069 5,138 146 2,666 2,326 2,987 2,953 1,991 776 408 209 Nov.. 14,419 13,649 5,306 157 2,700 2,448 3,130 3,129 2,085 770 412 219 15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 Dec. 3, 15,614 14,768 5,682 163 2,975 2,543 3,298 3,204 2,584 846 441 223 1973—Jan'.. 15,172 14,347 5,437 142 2,814 2,480 3,280 3,103 2,527 825 443 253 Feb.'. 17,973 16,902 6,460 162 3,674 2,624 3,608 3,283 3,551 1,071 596 313 Mar.r 18,324 17,374 6,534 141 3,683 2,711 3,751 3,464 3,624 951 524 262 Apr.r. 18,312 17,494 6,842 146 3,931 2,765 3,834 3,464 3,354 819 460 207 Mayr, 18,502 17,649 6,931 163 3,812 2,956 3,844 3,602 3,271 854 499 237 Juner. 18,745 17,907 7,285 205 4,037 3,043 3,901 3,963 2,758 838 552 140 Julyr. 18,957 18,095 7,015 162 3,916 2,936 3,891 3,899 3,290 862 561 151 Aug.. 18,922 18,036 6,964 176 4,021 2,767 3,967 3,694 3,411 886 488 151 Sep.?. 18,720 17,943 6,815 151 3,912 2,752 4,088 3,697 3,344 777 459 143 Oct.?. 19,297 18,436 6,998 206 3,994 2,798 4,119 3,755 3,563 861 510 187 t Excludes central banks, which are included with "Official institutions." "Other short-term claims"; and (b) a number of reporting banks are included 2 Data on second line differ from those on first line because (a) those in the series for the first time. claims of U.S. banks on their foreign branches and those claims of U.S. 3 Data on the two lines shown for this date differ because of changes agencies and branches of foreign banks on their head offices and foreign in reporting coverage. Figures on the first line are comparable in coverbranches, which were previously reported as "Loans", are included in age with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 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 t O lo t n h g e - r c fo u r r i e r n i e g n n - U K d n i o n i m t g e - d E O u t r h o e p r e Canada A L m a 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 18 67 411 408 1,329 88 568 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 4,649 4,323 796 412 3,114 292 35 139 658 340 1,897 305 828 4,702 4,378 819 432 3,127 291 33 143 658 360 1,880 305 863 J4,954 4,539 833 430 3,276 375 40 145 704 406 1,996 319 881 \5,014 4,539 835 430 3,274 436 40 145 701 406 2,006 348 901 5,017 4,536 835 442 3,258 440 41 144 724 403 1,967 353 918 5,126 4,625 836 477 3,311 449 52 135 763 434 1,987 342 930 5,270 4,763 883 496 3,384 460 47 121 851 453 978 336 987 5,413 4,917 903 544 3,469 448 49 122 904 477 2,000 337 1,031 5,514 5,010 932 545 3,532 456 48 131 923 511 2,000 331 1,059 5,605 5,096 978 550 3,568 464 45 131 980 523 2,003 311 1,096 5,626 5,116 957 554 3,605 456 54 128 1,029 517 1,983 310 1,123 5,521 5,009 1,002 514 3,492 466 46 137 1,007 404 1,964 304 1,158 5,392 4,865 1,010 511 3,345 457 70 131 975 418 1,924 252 1,192 5,565 5,009 1,041 537 3,432 476 80 130 1,011 491 1,958 258 1,203 t 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. • DECEMBER 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 i 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 e p s s u o r r - ch P a u s r e - s Sales c N ha s e a t s e l 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.-Oct.f 1,482 -161 1,643 1,692 -49 15,251 10,672 4,579 1,216 1,927 -711 1,414 1,232 182 1972—Oc t 356 356 340 17 1,353 1,045 309 154 207 -53 188 119 69 Nov 395 395 377 18 1,927 1,295 632 136 171 -35 192 110 82 Dec 404 404 403 1 2,014 1,375 639 243 465 -222 233 178 55 1973—Jan. ' 562 562 562 * 1,852 1,116 736 191 323 -132 161 158 3 Feb.r 515 -12 527 579 -52 1,761 1,045 716 145 144 1 194 145 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 -1 1,097 899 198 125 103 22 123 111 12 July -79 -71 -9 -9 1,320 843 477 94 194 -100 107 107 * Aug -51 17 -68 -28 -39 1,343 819 524 96 157 -61 117 125 -8 Sept.* 40 20 20 8 12 1,172 962 210 67 101 -34 115 105 10 Oct.? 29 -13 42 15 27 1,779 1,735 45 97 336 -239 129 131 -2 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, NOTE.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Other Total Latin Period chases Sales chases or France many lands land King- Europe EEuurrooppee Canada America Asia Other sales ( —) dom 1970 8,927 8,301 626 58 195 128 110 -33 24 482 -9 47 85 21 1971 11,626 10,894 731 87 131 219 168 -49 71 627 -93 37 108 52 1972 14,361 12,173 3,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973—Jan.-Oct.f 10,399 8,010 2,389 303 -34 253 680 320 261 1,782 125 12 435 35 1972—Oct 1,005 846 159 65 6 24 83 -89 19 109 8 2 29 11 Nov 1,560 1,070 490 85 44 55 61 150 53 449 13 25 -8 12 Dec 1,464 1,114 350 48 -3 42 59 132 19 297 -1 8 42 4 1973—Jan.r 1,401 924 477 32 29 46 143 108 21 380 25 -20 85 8 Feb.'.. . . 1,282 835 446 25 5 67 150 82 42 371 37 -11 44 5 Mar 1,144 793 350 35 8 47 148 21 29 288 25 5 21 11 Apr 866 728 139 21 9 -8 53 -16 46 105 34 -10 5 4 May 777 898 -121 -2 -43 -14 -22 -39 3 -117 -7 -16 11 9 June 766 632 134 2 -23 7 52 15 21 74 8 -2 55 -2 July 880 564 316 67 -19 25 80 28 28 210 19 11 71 5 Aug 972 631 341 53 1 60 57 40 34 245 10 11 81 -6 Sept.* 947 734 213 63 6 18 52 15 14 167 * 27 21 -3 Oct.* 1,366 1,271 94 6 -7 5 -34 66 24 60 -26 17 41 4 1 Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 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 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 o a n n a d l 1970 956 35 48 37 134 118 91 464 128 25 28 j -12 324 1971 684 15 35 — 1 197 327 39 612 37 19 -2 * -21 39 1972 1,871 336 77 74 135 357 315 1,293 82 22 323 2 * 148 1973—Jan.-Oct.p. 2,190 188 46 -21 217 165 436 1,031 70 25 980 * 11 73 1972—Oct 150 36 7 1 35 34 54 168 5 3 2 * * -28 Nov 142 2 30 27 -1 46 42 147 -6 1 1 * * * Dec 289 56 30 * 14 49 60 210 8 3 29 1 * 38 1973—Jan 260 12 * -2 29 49 73 161 1 6 31 * * 60 Feb 270 6 4 2 30 46 60 149 36 1 110 * * -26 Mar 759 45 3 -22 -7 -3 158 174 * 4 623 * * -42 Apr 385 33 2 * 65 -96 94 98 16 4 199 * * 68 May 161 1 -4 -1 76 120 22 215 7 1 2 * * -63 June 64 6 -3 * -3 -9 -2 -10 7 -1 * * 10 59 July 161 * -2 * 13 -15 7 3 3 3 1 * * 150 Aug 183 31 46 1 -5 72 10 154 -1 4 2 * * 24 Sept.? -2 2 * * -1 14 12 26 — 1 1 11 * * -39 Oct.? -50 53 * 1 21 -14 1 62 4 1 1 * -118 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- rrooppee ica rica tries period (due to (due from gional tries foreigners) foreigners) 1970 -915 -254 -662 50 -586 -11 -129 -6 20 1970—Sept 291 203 1971 -992 -310 -682 31 -275 -46 -366 -57 32 349 281 1972 -651 -90 -561 492 -651 -69 -296 -66 29 511 314 1973—Jan.- 419 300 Oct.p... -529 79 -608 -50 -478 -86 -30 1 35 333 320 311 314 1972—Oct 16 16 * 46 -73 2 23 * 2 Nov 47 11 36 39 -4 8 -8 * * 325 379 Dec -167 9 -176 7 -158 -26 -2 2 1 312 339 286 336 1973—Jan.''... -129 9 -138 7 -67 -70 -9 * * 372 405 Feb.. . . 49 -2 51 -3 41 -16 29 * * Mar 116 23 93 24 34 8 27 * 1 310 364 Apr.. .. -166 16 -182 22 -193 -6 -5 * * 316 243 May.. . -1 11 -10 -22 -13 6 6 -1 14 290 255 June. . . 34 7 27 10 6 13 -13 1 9 July.... -100 3 -103 -14 -100 * 9 * 3 Aug -69 5 -75 -21 -44 -4 -8 * 3 NOTE.—Data represent the money credit balances and Sept.3'.. -25 4 -28 -28 8 -8 — 1 * 2 money debit balances appearing on the books of reporting Oct.33... -240 4 -244 -25 -148 -8 -64 1 1 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $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

INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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—Dec.. 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1971—Dec.. 61,334 4.798 2,311 2,486 54,752 11,211 24,550 1,167 17,823 1972—July. 69,963 4,058 1,514 2,544 63,941 11,622 30,419 1,407 20,492 Aug.. 72,856 4,504 1,759 2,745 66,268 11,655 31,821 1,566 21,225 Sept.. 74,906 4,952 2,243 2,709 67,607 11,335 33,395 1,539 21,338 Oct.., 74,796 4,967 2,239 2,728 67,599 11,343 33,098 1,549 21,610 Nov.. 76,241 4,456 1,824 2,632 69,425 11,350 34,203 1,577 22,295 Dec.. 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 22,910 1973—Jan.. 81,200 4,926 2,327 2,600 74,007 11,946 36,797 1,621 23,643 Feb.. 87,989 4,327 1,565 2,762 81,106 12,273 42,206 1,747 24,881 Mar.. 91,646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 25,679 Apr.. 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 26,247 May. 92,994 4,218 1,926 2,292 85,577 13,490 42,746 2,004 27,337 June. 98,756 4,955 2,333 2,622 90,207 13,528 46,277 1,900 28,501 July. 103,667 5,403 2,505 2,898 94,460 15,298 47,454 2,035 29,674 Payable in U.S. dollars. 1970—Dec.. 34,619 9,452 7,233 2,219 24.642 4,213 13,265 362 6,802 1971—Dec.. 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 9,536 1972—July. 45,034 3,811 1,488 2,324 40,523 7,260 21,666 984 10,613 Aug.. 47,175 4,263 1,741 2,523 42,184 7,320 22,717 1,063 11,085 Sept.. 48,704 4,685 2,222 2.463 43,141 7.048 23,840 1,105 11,148 Oct.. 48,986 4,669 2,216 2,453 43,556 7,391 23,555 1,084 11,526 Nov.. 49,631 4,173 1,803 2,371 44,664 7,439 24,123 1,083 12,019 Dec.. 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 12,651 1973—Jan.. 54,197 4,592 2,303 2,289 48,829 8,094 26,764 1,063 12,908 Feb.. 57,633 3.987 1,534 2,452 52,718 8,551 29,831 1,097 13,239 Mar.. 58.745 3.988 1,957 2,031 53,752 8,438 30,568 1,124 13,622 Apr.. 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 13,839 May. 58,019 3,930 1,899 2.031 52,871 8,548 28,677 1,140 14,506 June. 61,843 4,602 2,285 2,317 55,885 8,493 31,261 1,129 15,003 July. 64,034 4.799 2,469 2,330 57,757 9,211 31,715 1,220 15,612 IN UNITED KINGDOM Total, all currencies 1970—Dec.. 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 6,235 1971—Dec.. 34,552 2,694 1,230 1.464 30,996 5,690 16,211 476 8,619 1972—July., 39,463 1,876 810 1,066 36,741 5,742 20,946 546 9,507 Aug.. 40,596 2,117 1,078 1,039 37,538 5,688 21,411 595 9,844 Sept.. 42,053 2,350 1,253 1,097 38,606 5,651 22,559 650 9,745 Oct.. 41,649 2,409 1,386 1,023 38,201 5,751 22,157 630 9,662 Nov.. 41,600 1,939 907 1.032 38.643 5,490 22,671 584 9,898 Dec.. 43,684 2,234 1,138 1.096 40,430 5,659 23,983 609 10,179 1973—Jan.. 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 10,252 Feb.. 48,533 1,945 848 1.097 45,487 5,887 28,473 585 10,542 Mar.. 49,696 2,052 1,130 922 46.520 5,783 29,148 663 10,926 Apr.. 49,181 1,662 794 868 46,332 5,437 29,255 651 10,989 May. 49,080 1,744 910 834 46.001 5,725 28,394 614 11,268 June. 51,415 1,876 1,012 864 48,031 5,279 30,348 607 11,797 July. 54.203 2,500 1,492 1,008 50,129 6,274 30,769 649 12,436 Payable in U.S. dollars. 1970—Dec.. 22,574 6,596 15,655 2,223 9,420 4,012 1971—Dec.. 24,428 2,585 21.493 4,135 12,762 4,596 1972—July. 26,680 1,791 24.494 4,097 15,589 4,808 Aug.. 27,185 2,036 24,734 4,013 15,768 4,953 Sept.. 28.204 2,264 25,463 4,004 16,609 4,851 Oct.. 27,978 2,307 25,244 4,169 16,249 4,827 Nov.. 27,865 1,846 25,579 4.049 16,399 5,132 Dec.. 30,381 2,146 27,787 4,326 17,976 5,485 1973—Jan.. 30.652 2,468 27,778 4,184 18,069 5,526 Feb.. 32.746 1,814 30,423 4,568 20,219 5,637 Mar.. 32,658 1,953 30,183 4,324 20,033 5,827 Apr.. 31,833 1,539 29,778 4,034 20,119 5,625 May. 30,906 1,654 28,666 3,943 18,848 5,874 June. 32,864 1,784 30,386 3,900 20,413 6,073 July. 33,437 2,193 30.521 4,042 20,164 6,316 IN THE BAHAMAS Total, all currencies. 1970—Dec.. 4,815 1,173 455 717 3,583 2,119 1,464 1971—Dec.. 8,493 1,282 505 778 7,119 3,798 3,320 1972—July. 10.329 1,409 110 1,298 8,786 4,924 3,863 Aug.. 11,515 1,530 118 1,413 9,846 5,682 4,164 Sept.. 11,914 1,612 221 1,391 10,150 5,929 4,221 Oct.. 12,017 1,739 251 1,489 10,120 5,836 4,284 Nov.. 12.330 1,586 221 1,365 10,577 6,209 4,368 Dec.. 13,091 1,496 225 1,272 11,419 6,965 4,454 1973—Jan.. 13,065 1,387 182 1,206 11,496 6,754 4,742 Feb.. 13,559 1,461 83 1,378 11,860 7,189 4,671 Mar.. 13,764 1,211 90 1,121 12,283 7,520 4,764 Apr.. 13.653 1,407 293 1,113 11,988 6,726 5,262 May. 14,730 1,498 272 1,227 12, * 7,242 5,647 June. 16,184 1,917 410 1,507 14.002 8,206 5,796 July. 117,086 1,929 350 1,579 14,862 8,802 6,060 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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. Month-end Location and currency form IN ALL FOREIGN COUNTRIES ... Total, all currencies .Payable in U.S. dollars IN UNITED KINGDOM ... Total, all currencies .Payable in U.S. dollars IN THE BAHAMAS .Total, all currencies 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. • DECEMBER 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 ia ie b s i ! 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- Ma li t a u b r i i l t i y ty of 1973 June July Aug. 1968 1972 1973 2.57 3.19 2.45 J S M D u e e a p n c r t e . . . 2 2 2 3 5 6 7 1 (1/1/69) 4 6 7 4 6 7 4 6 7 4 6 7 6666 ,,,, ,,,, ,,,, ,,,,0000 2222 9999 1111 3333 0000 2222 0000 9999 2222 0000 4444 J F AA M a e pp a n b rr r . . .. . 2 2 2 22 9 3 6 66 . . . .. . . . .. . . . .. 1 1 1 1 , , , , 4 5 0 3 1 6 3 7 9 8 2 4 June 2 2 1 0 7 6 3 . . . . . . . . . . . . 1 1 11 , ,, , 55 2 2 9 22 6 4 4 11 6 2 0 O Ca t i m d h l n l a e o r t n e 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 e u n p r d o in a r r g t 3.04 3.16 2.55 May 31... 1,465 July 3... 1,766 15.47 13.38 13.56 June 28... 11,,444433 11... 1,664 2nd 7.61 8.14 8.90 J S D M u e e a p n c r t e . . . 2 2 2 3 4 5 6 1 1969 11 1 1 1 1 99 33 22 44 ,, ,, ,, ,, 66 22 88 33 22 00 66 44 11 55 99 99 J S O N D A u e e c u o p l t c y v g . t . . . . 2 3 2 2 2 2 6 0 9 7 7 5 . . . . . . . . . . . . . . . . . . 2 1 1 1 1 1 , , , , , , 0 3 7 4 2 4 2 4 4 1 7 0 3 5 5 5 0 6 Aug. 2 2 2 1 1 8 5 9 2 8 5 1 . . . . . . . . . . . . . . . . . . . . . 2 22 2 2 2 2 2 2 2 222 111 , ,, , ,,, ,,, ,,, ,,, 1 00 2 222 777 444 999 4 88 2 777 999 444 000 6 66 6 666 333 000 000 7 8 t t h h 6 3 3 3 . . . . . . . . 5 0 6 9 8 9 5 5 5 8 7 6 2 6 4 4 7 4 3 3 . . . . . . . . 4 4 5 2 9 8 7 3 9 5 5 0 8 9 2 8 6 3 3 3 1 . . . . . . . . 7 8 8 5 0 5 7 3 3 9 9 6 2 3 4 6 Mar. 25 1970 1111111111,,,,,888888888855555 J M F a e a n b 1 r . . 9 . 7 3 3 2 2 1 8 8 . . . . . . . . . 1 1 , , 4 1 7 2 1 9 7 3 0 Sept. 2 1 1 5 2 6 9 . . . . . . . . . . . . 1 1 1 1 , , , , 8 7 5 9 3 0 1 4 1 1 2 2 Maturities of more than 1 1. . . 9 3 3 2 6 2 1. . . 8 7 3 8 6 4 1. . . 8 6 8 9 6 2 June 24 1111122222,,,,,111117777722222 Sept. 30 99999,,,,,666666666633333 AApprr.. 44.. .... 1,011 Oct. 3... 1,695 Dec. 30 77777,,,,,666667777766666 1111...... 1,203 10'.. 1,790 Total 51.27 52.50 51.54 18. .. 1,193 17r.. 1,814 1971 25... 1,123 24 r.. 1,642 3311 rr.... 11,,770022 NOTE.—Includes interest-bearing U.S. dollar Mar. 31 2,858 4,358 May 2... 1,238 deposits and direct borrowings of all branches in June 30 1,492 4,500 9... 1,073 Nov. 7... 1,693 the Bahamas and of all other foreign branches Sept. 29 2,475 3,578 16... 1,721 14... 1,826 for which such deposits and direct borrowings Dec. 29 909 23... 1,492 21... 2,428 amount to $50 million or more. 30... 1,351 28... 2,412 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 Payable in dollars foreign currencies Assets in custody EE pp nn eerr dd ii oo oo dd ff DDeeppoossiittss U se . c S u . r T it r i e e a s1 s . Ear g m o a ld r ked EE pp nn eerr dd ii oo oo dd ff TToottaall Deposits i S n t h e v o r e m r s t t - - Deposits i S n t h e v o r e m r s t t - - UU KK dd nn ii oo ii nn mm tt gg ee -- dd CCaannaaddaa 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—Nov... 188 51,874 215,530 1Q£Q 2 / \1 1 , , 4 3 9 1 1 9 1,0 9 6 5 2 2 1 16 1 1 6 1 1 7 8 4 3 7 8 6 6 6 6 1 6 0 3 4 5 6 3 9 4 Dec.. . 325 50,934 15,530 1970 1,141 697 150 173 121 372 443 1973— F J e a b n . . .. . . . 4 3 5 1 5 0 5 5 0 6 , , 1 9 1 1 8 4 1 1 5 5 , , 5 5 2 2 6 2 1lyQ /71I —uTe\0c« .'2 . . . \ f 1 1 , , 5 6 0 4 7 8 1 1 , ,0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 7 8 7 0 4 5 4 8 3 7 Mar... 327 359,389 15,519 Apr... 328 358,255 15,513 1972—Sept , , , 2,101 1,527 170 359 45 685 604 May, . 289 58,015 15,511 Oct 2,033 1,472 171 332 57 681 551 June.. 334 57,545 15,486 Nov 2,058 1,493 167 343 55 635 587 J A u u l g y . . . . . . 2 2 8 5 0 9 5 5 7 5 , , 0 8 5 5 4 5 1 1 5 5 , , 4 45 6 5 4 _ 60 2 \ f 2 1 , , 2 9 1 6 9 5 1 1 , , 7 4 5 4 8 6 1 5 6 5 9 3 3 3 0 8 7 4 6 2 8 7 8 0 6 2 8 4 5 8 0 5 6 Sept... 250 55,407 15,437 Oct.... 426 54,766 417,122 1973—Jan 2,369 1,861 74 342 93 915 655 Nov... 420 52,998 17,104 Feb 2,901 2,155 149 373 225 1,010 1,042 Mar 2,963 2,191 139 408 225 1,093 914 1 Marketable U.S. Treasury bills, certificates of in- A M p a r y 2 3 , , 9 0 3 6 8 3 2 2 , , 1 3 7 0 5 9 1 11 1 3 0 4 4 1 3 4 0 2 21 3 1 8 1,0 9 3 9 3 6 9 8 4 4 0 0 debtedness, notes, and bonds and nonmarketable U.S. June 3,109 2,457 67 451 134 1,054 835 Treasury securities payable in dollars and in foreign July 3,153 2,387 118 473 175 1,060 898 cur 2 r e I n n c c i r e e s a . se reflects principally change in par value of the A Se u p g t 3 3 , , 2 0 3 5 8 2 2 2, , 4 4 0 7 3 7 6 6 5 7 4 4 8 1 1 3 2 1 1 6 4 9 1 1 , , 0 0 5 2 9 9 8 8 3 7 0 4 U.S. dollar in May 1972. 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value of foreign currency obliga- 1 Negotiable and other readily transferable foreign obligations payable on demand tio 4 n s I n r c e r v e a a lu se e d r t e o f le r c e t f s l ec c t h m an a g r e k et in e x p c a h r a n v g a e l u r e a te o s f . the U.S. o o r b l h ig a a v t i i n o g n a w c a o s n t i r n a c c u t r u r a e l d m b a y t ur th it e y f o o f r e n i o g t n e m r o . re than 1 year from the date on which the dollar in Oct. 1973. 2 Data on the two lines for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding NOTE.—Excludes deposits and U.S. Treas. securities date; figures on the second line are comparable with those shown for the following date. held for international and regional organizations. Earmarked gold is gold held for foreign and international NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in accounts and is not included in the gold stock of the the United States. They are a portion of the total claims on foreigners reported by United States. 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

DECEMBER 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) Liability to foreigners Claims on foreigners Area and country 1972 1973 1972 1973 Sept. Dec. i Mar. Junef Sept. Dec.1 Mar. June*5 Europe: 2 2 2 3 2 15 20 19 14 17 Belgium-Luxembourg 82 75 83 75 81 63 62 73 106 93 Denmark 5 9 7 8 19 19 28 29 26 20 3 4 4 4 4 16 23 25 21 21 France 145 163 167 161 165 188 220 230 290 318 Germany, Fed, Rep. of 130 145 156 146 165 200 176 194 242 270 Greece 14 24 15 19 24 30 39 35 36 40 Italy 108 118 121 107 103 174 194 202 204 199 Netherlands 79 102 109 100 110 71 78 83 96 97 Norway 5 9 14 14 13 19 17 16 17 19 Portugal 3 4 4 5 4 20 21 19 19 25 Spain 63 79 81 82 72 130 137 157 159 140 Sweden 14 12 12 22 23 45 56 57 45 49 Switzerland 119 122 106 127 85 57 79 82 85 89 Turkey 2 3 4 3 3 8 47 47 23 15 United Kingdom 943 949 1,009 857 702 992 1,044 1,155 1,385 1,360 Yugoslavia 5 7 7 16 17 11 12 12 14 18 Other Western Europe 2 2 2 2 3 11 14 12 9 9 Eastern Europe 9 3 3 6 21 47 42 42 40 91 Total 1,733 1,830 1,905 1,758 1,617 2,117 2,309 2,489 2,831 2,890 Canada 183 209 211 267 246 996 899 930 1,308 1,256 Latin America: Argentina 16 19 29 30 24 52 59 78 74 62 Brazil 24 35 35 42 47 163 175 168 170 176 Chile 17 18 18 17 13 33 33 34 31 29 Colombia 6 8 7 8 7 39 41 40 40 36 Cuba I 1 * * 1 1 1 1 1 Mexico 21 27 27 34 38 154 180 183 195 205 Panama 5 8 18 17 18 20 19 67 72 72 Peru 5 5 4 4 6 36 40 36 33 34 Uruguay 2 6 7 5 3 7 4 4 5 5 Venezuela 17 17 21 23 23 74 89 92 106 99 Other L.A. republics 30 35 45 46 47 96 91 94 95 101 Bahamas 2 293 319 366 288 382 519 520 547 534 740 Neth. Antilles and Surinam. 9 10 10 10 11 11 12 13 12 11 Other Latin America 6 7 4 8 19 23 23 35 44 91 Total 453 514 589 532 638 1,226 1,289 1,390 1,410 1,661 Asia: China, People's Republic of (China Mainland) 28 32 32 32 3311 1 * * 1 10 China, Rep. of (Taiwan) 26 28 26 33 35 51 67 65 61 76 12 12 12 12 12 22 24 32 31 34 India 7 7 7 7 7 36 33 34 31 28 Indonesia 6 12 16 16 15 32 33 33 38 35 Israel 11 12 13 16 9 18 31 31 34 27 Japan 223 149 160 194 234 452 456 467 509 500 Korea 16 20 20 19 18 57 63 63 47 40 Philippines 5 15 15 25 19 63 49 48 47 47 Thailand 5 5 5 5 6 14 15 22 25 24 Other Asia 112 117 152 156 140 171 201 203 188 203 Total 451 410 458 513 525 918 972 999 1,012 1,024 Africa: Egypt 1 25 32 37 20 7 7 16 25 23 South Africa 17 7 8 6 6 45 53 52 55 52 Zaire 2 1 1 12 12 7 5 8 16 15 Other Africa 37 59 61 66 67 64 75 79 78 84 Total 57 92 103 121 105 122 140 155 173 174 Other countries: Australia 46 47 46 54 72 92 94 84 82 77 All other 11 13 13 11 11 18 20 21 22 23 Total 57 60 59 64 82 110 114 105 104 100 International and regional. . .. * * * * * 5 1 1 1 1 Grand total 2,933 3,115 3,324 3,256 3,213 5,495 5,723 6,068 6,839 7,106 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. • DECEMBER 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 Payable Payable Payable Total dol in la rs cu f r o r r i e e n n i g c n ie s Total dol in la rs D ba e n p k o s s i a ts b r w o i a th d in reporter's Other name 1969—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 / \ 2 1, , 7 1 8 2 6 4 1 1 , , 3 6 9 5 9 4 4 3 7 8 1 7 4 3 . , 1 7 5 1 9 0 3 3 , , 1 5 2 3 4 2 2 2 2 4 1 4 3 3 6 8 5 3 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 / I 2 2 , ,7 7 6 0 3 4 2 2, , 3 2 0 2 1 9 4 4 6 7 3 5 5 5 , , 1 0 8 0 5 4 4 4 , , 5 4 3 6 5 7 2 3 9 1 0 8 2 3 4 3 7 3 1972—Mar.. 2,844 2,407 437 5,177 4,557 318 302 June., 2,925 2,452 472 5,331 4,685 376 270 Sept.. 2,933 2,435 498 5,495 4,833 432 230 Dec.1 J \ 3 3 , , 1 3 1 2 5 4 2 2, , 8 6 2 3 5 0 4 49 8 9 4 6 5 , , 0 7 6 23 8 5 5 , , 0 3 7 9 4 4 4 3 1 9 1 3 2 23 8 8 1 1973—Mar.. 3,256 2,743 513 6,839 5,945 458 436 June? 3,213 2,652 561 7,106 6,249 502 355 i Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g it d e o d m E O u t r h o e p r e Canada Mexico A O L m a t e h t r i e i n r c a Japan O A t s h i e a r Africa o A th ll e r 1969—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. i 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 Dec.1 3 3, , 1 1 3 5 8 9 3 3 , , 1 1 1 1 8 8 1 1 2 2 8 8 7 7 0 0 5 5 7 7 6 6 1 7 1 1 7 7 4 4 6 6 0 0 6 65 5 3 2 1 14 3 1 6 3 3 2 2 5 7 8 86 6 8 8 5 4 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 Dec.1 3 3 , , 5 85 4 8 0 3 3 , , 3 4 6 7 9 2 1 1 6 7 2 9 7 7 5 1 5 5 8 8 3 7 3 0 1 18 8 7 4 6 6 0 3 6 6 5 9 9 8 1 1 3 5 4 6 4 3 0 9 6 4 8 8 7 0 1 1 1 09 1 1973—Mar.., 3,988 3,604 144 808 884 165 62 783 124 409 102 125 June*. 3,963 3,662 157 819 894 146 64 797 138 412 105 131 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

DECEMBER 1973 a EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period A (d u o st l r la a r li ) a (s A ch u i s l t l r in ia g ) B (f e r lg a i n u c m ) C (d a o n ll a a d r a ) C (r e u y p l e o e n ) D ( e k n r m on a e r ) k (m Fi a n r l k an k d a ) F (f r r a a n n c c e ) 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 19.302 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 18.087 113.61 4.0009 2.0598 99.021 16.800 13.508 23.758 18.148 119.23 4.3228 2.2716 100.937 16.057 14.384 24.022 19.825 1972—Nov 119.09 4.3064 2.2685 101.279 15.026 14.510 24.022 19.839 Dec 120.74 4.3172 2.2670 100.326 14.936 14.601 24.000 19.657 1973 Jan 127.16 4.3203 2.2665 100.071 14.904 14.536 23.986 19.671 Feb 135.46 4.8582 2.3981 100.440 15.407 15.386 24.728 20.987 Mar 141.29 4.8759 2.5378 100.333 15.774 16.275 25.628 22.191 Apr 141.50 4.8330 2.4895 99.928 15.777 16.099 25.872 21.959 May 141.50 4.9082 2.5356 99.916 15.883 16.241 25.277 22.341 141.58 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 Oct 148.22 5.5871 2.7328 99.891 15.481 17.692 27.202 23.718 Nov 148.22 5.2670 2.5882 100.092 15.503 16.744 26.894 22.687 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 el u a n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t d n h e d - r s ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 1971 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 31.364 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 1972—Nov 31.215 12.540 235.05 .17109 .33224 36.124 8.0000 30.964 Dec 31.262 12.467 234.48 .17146 .33196 35.531 8.0000 30.962 1973—Jan 31.288 12.494 235.62 .17079 .33136 35.523 8.0000 31.084 Feb 33.273 12.910 242.75 .17421 .36041 37.679 8.0000 33.119 Mar 35.548 13.260 247.24 .17604 .38190 39.922 8.0000 34.334 Apr 35.252 13.255 248.37 .16971 .37666 40.307 8.0000 33.890 May 35.841 13.340 253.05 .17100 .37786 40.333 8.0000 34.488 June 38.786 13.753 257.62 .16792 .37808 40.865 8.0000 36.582 July 42.821 13.605 253.75 .17200 .37801 43.121 8.0000 38.700 Aug 41.219 13.220 247.57 .17423 .37704 43.859 8.0000 37.596 Sept 41.246 12.987 241.83 .17691 .37668 43.361 8.0000 38.542 Oct 41.428 12.938 242.92 .17656 .37547 43.641 8.0000 40.011 Nov 38.764 12.767 238.70 .16904 .35941 41.838 8.0000 37.267 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 ) 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1970 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—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 Oct 148.64 18.285 4.3014 148.54 1.7576 23.942 33.019 242.92 Nov 147.74 17.872 4.1155 148.45 1.7479 23.019 31.604 238.70 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 • DECEMBER 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months RRaattee aass ooff NNoovv.. 3300,, 11997722 RRRRaaaatttteeee Country 11997722 11997733 aaaassss ooooffff NNNNoooovvvv.... 33330000,,,, PPeerr MMoonntthh 1111999977773333 cceenntt eeffffeeccttiivvee Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Argentina 111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888...................................................000000000000000000000000000000000000000000000000000 FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeebbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222 111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888...................................................000000000000000000000000000000000000000000000000000 Austria 555555555555555555555555555555555555555555555555555...................................................555555555555555555555555555555555555555555555555555 NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNooooooooooooooooooooooooooooooooooooooooooooooooooovvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222 666...000 666666666666666666666666666666666666666666666666666...................................................000000000000000000000000000000000000000000000000000 Belgium 444444444444444444444444444444444444444444444444444...................................................555555555555555555555555555555555555555555555555555 NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNooooooooooooooooooooooooooooooooooooooooooooooooooovvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222 55..00 55..5500 666...000 66..55 77..7755 777777777777777777777777777777777777777777777777777...................................................777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555 Brazil 111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888...................................................000000000000000000000000000000000000000000000000000 FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeebbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb................................................... 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SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeepppppppppppppppppppppppppppppppppppppppppppppppppppttttttttttttttttttttttttttttttttttttttttttttttttttt................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000 888...000 88..7755 888888888888888888888888888888888888888888888888888...................................................777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555 United Kingdom 777777777777777777777777777777777777777777777777777...................................................555555555555555555555555555555555555555555555555555 OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOcccccccccccccccccccccccccccccccccccccccccccccccccccttttttttttttttttttttttttttttttttttttttttttttttttttt................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222 99..00 88..7755 888...555 77..7755 77..5500 1111..5500 tttttttttttttttttttttttttttttttttttttttttttttttttttiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiilllllllllllllllllllllllllllllllllllllllllllllllllll...................................................555555555555555555555555555555555555555555555555555000000000000000000000000000000000000000000000000000 Venezueia 555555555555555555555555555555555555555555555555555...................................................000000000000000000000000000000000000000000000000000 OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOcccccccccccccccccccccccccccccccccccccccccccccccccccttttttttttttttttttttttttttttttttttttttttttttttttttt................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000 555555555555555555555555555555555555555555555555555...................................................000000000000000000000000000000000000000000000000000 Vietnam 111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888...................................................000000000000000000000000000000000000000000000000000 SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeepppppppppppppppppppppppppppppppppppppppppppppppppppttttttttttttttttttttttttttttttttttttttttttttttttttt................................................... 111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000 111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888...................................................000000000000000000000000000000000000000000000000000 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 f 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 5Vi 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

DECEMBER 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- MMoonntthh 3 T m r b e o i a l n s ls t u , h r s y i D m a o d y n a - e y t y o 2 - 3 m P b b r o a i i l n n m ls 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 s - Tr 6 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 t e o y - d P is r r c i a v o t a u e t n e t 197 1 3333333.......66666662222222 3333333.......77777776666666 6666666.......44444441111111 5555555.......55555557777777 4444444.......99999993333333 3333333.......88888884444444 5.84 44..5544 666666......111111000000 444444......333333444444 333333......777777666666 5555....22224444 197 2 3333333.......55555555555555 3333333.......66666665555555 6666666.......00000006666666 5555555.......00000002222222 4444444.......88888883333333 3333333.......88888884444444 33..0044 444444......333333000000 222222......111111555555 111111......999999777777 4444....88881111 1972—No v 3333333.......66666661111111 3333333.......77777771111111 7777777.......22222228888888 6666666.......88888888888888 5555555.......77777770000000 5555555.......22222225555555 666666......333333333333 33..7755 555555......777777111111 333333......111111333333 333333......333333111111 4444....77775555 Dec 3333333.......66666666666666 3333333.......77777771111111 8888888.......00000008888888 7777777.......77777776666666 6666666.......22222223333333 5555555.......55555557777777 777777......333333222222 44..2255 666666......666666999999 333333......111111222222 333333......222222000000 4444....77775555 1973—Ja n 3333333.......77777779999999 3333333.......77777772222222 8888888.......77777776666666 8888888.......44444449999999 7777777.......66666666666666 6666666.......55555555555555 777777......222222333333 44..7755 555555......555555888888 333333......111111666666 222222......777777888888 5555....00000000 Feb 3333333.......99999991111111 3333333.......99999993333333 9999999.......33333334444444 8888888.......11111114444444 8888888.......33333331111111 7777777.......33333330000000 777777......777777111111 55..7755 222222......111111888888 222222......333333333333 111111......555555555555 5555....00000000 Mar 4444444.......22222228888888 4444444.......22222221111111 9999999.......77777776666666 8888888.......11111116666666 7777777.......55555552222222 7777777.......55555550000000 777777......444444999999 55..7755 111111111111......333333777777 111111......555555333333 ......666666111111 5555....00000000 Apr 4444444.......77777773333333 4444444.......55555553333333 8888888.......66666664444444 7777777.......88888887777777 7777777.......22222220000000 7777777.......22222225555555 777777......444444666666 55..7755 111111444444......888888444444 111111......222222222222 ......777777777777 5555....00000000 May 5555555.......00000008888888 4444444.......66666667777777 8888888.......33333335555555 7777777.......44444445555555 8888888.......22222229999999 7777777.......11111111111111 777777......777777111111 55..7755 777777......444444000000 222222......888888999999 333333......888888888888 5555....00000000 June 5555555.......44444440000000 5555555.......00000000000000 8888888.......11111114444444 7777777.......11111112222222 6666666.......66666666666666 6666666.......55555555555555 777777......444444666666 77..0000 111111000000......999999000000 333333......555555999999 444444......222222888888 5555....00000000 July 5555555.......66666667777777 5555555.......22222228888888 9999999.......00000006666666 8888888.......33333335555555 5555555.......88888889999999 6666666.......22222225555555 888888......555555000000 111111555555......777777888888 555555......555555888888 555555......666666555555 5555....00000000 Aug 6666666.......44444447777777 5555555.......88888887777777 11111112222222.......77777778888888 11111110000000.......99999998888888 9999999.......77777770000000 8888888.......99999999999999 999999......111111555555 111111000000......666666333333 555555......999999222222 777777......222222444444 5555....22225555 Sept 6666666.......44444441111111 6666666.......33333331111111 11111112222222.......11111112222222 11111111111111.......33333337777777 9999999.......11111113333333 9999999.......55555550000000 111111000000......222222222222 999999......777777666666 555555......666666777777 777777......999999777777 Oct. 6666666.......55555556666666 6666666.......55555554444444 11111111111111.......33333337777777 11111110000000.......77777775555555 11111110000000.......55555553333333 9999999.......55555550000000 111111111111......111111333333 111111000000......555555777777 555555......222222555555 777777......999999333333 Nov . ... 6666666.......44444448888888 6666666.......55555556666666 11111113333333.......33333338888888 11111111111111.......77777776666666 8888888.......88888880000000 9999999.......55555550000000 111111111111......000000888888 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers' acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers' allowance on NOTE.—For description and back data, see "International Finance," deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates PPrreemmiiuumm DDaattee q K ( u U i a b o n U n d a t g j i . s a . S t d i t e s . 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 d v f e o o a r d n ) PP dd ff (( (( pp oo rr ii —— ss ++ ee rr oo cc mm )) ww uu oo )) nn aa ii uu oo 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 tt oo oo ii rr nn vv ee )) qu A i o n s t ed C ar la q d u A a o U d t j . a . S t . t i o o n U S n ta i t t e e s d C S ( a f p a n o r v a f e 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 ee aa ff tt tt oo dd ii rr vv aa ee )) Canada basis 1973 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 Oct. 5 10.74 7.36 3.38 -3.73 -.35 6.68 6.26 7.36 -1.11 1.41 .30 12 10.67 7.08 3.59 -3.56 .03 6.51 6.29 7.08 -.79 .46 -.33 19 10.56 6.98 3.58 -3.68 -.10 6.53 6.30 6.98 -.68 .08 -.60 26 10.54 6.99 3.55 -4.08 -.53 6.51 6.30 6.99 -.69 -.70 -1.39 Nov. , 2 10.46 7.39 3.07 -3.79 -.72 6.53 6.30 7.39 -1.09 -.28 -1.37 9 10.57 8.01 2.56 -3.54 -.98 6.52 6.33 8.01 — 1.68 -.06 -1.74 16 12.24 7.51 4.73 -5.11 -.38 6.47 6.25 7.51 -1.26 .18 -1.08 23 12.31 7.74 4.57 -5.92 -1.35 6.47 6.23 7.74 -1.51 .22 -1.29 30 12.28 7.32 4.76 -5.50 -.54 6.43 6.22 7.32 -1.10 .30 -.80 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, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 BULLETIN. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 GOLD RESERVES • DECEMBER 1973 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 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 i - a 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 r41,160 4,732 10,206 r26,220 192 90 259 729 1,544 46 22 792 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 '44,890 5,830 10,487 r28,575 208 152 281 792 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 '44,880 5,830 10,487 p28,565 208 152 282 793 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 44,865 5.831 10,487 28,545 208 152 281 793 1,603 50 12 834 5,826 10,487 208 281 793 1,603 50 12 834 5,826 10,487 208 281 793 1,603 50 11 834 'P44,$95 5,826 10,487 ^28j 580 208 282 793 1,603 50 834 6,474 11,652 231 312 881 1,781 927 Ger- E pe n r d i o o d f ( R C T 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 R m F e a p e n . d y . o , f Greece India Iran Iraq l I a r n e d - Israel 1965. 55 35 97 139 84 4,706 4,410 78 281 146 110 21 56 1966. 62 26 108 93 45 5,238 4,292 120 243 130 106 23 46 1967, 81 31 107 93 45 5,234 4,228 130 243 144 115 25 46 1968. 81 31 114 93 45 3,877 4,539 140 243 158 193 79 46 1969. 82 26 89 93 45 3,547 4,079 130 243 158 193 39 46 1970. 82 17 64 85 29 3,532 3,980 117 243 131 144 16 43 1971. 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 1972--Oct 87 16 69 92 53 3,826 4,436 132 264 142 156 17 42 Nov 87 16 69 92 53 3,826 4,436 132 264 142 156 17 44 Dec 87 16 69 92 53 3,826 4,459 133 264 142 156 17 43 1973--Jan 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Feb 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Mar 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Apr 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 May 87 16 69 92 53 3,834 4,469 133 264 142 156 17 41 June 87 16 69 92 53 3,841 4,462 133 264 142 156 17 41 July 87 16 69 92 53 3,835 4,469 133 142 156 17 41 Aug 888777 11116666 66669999 9922 55553333 3333,,,,888833335555 4444,,,,444466669999 111133333333 111144442222 111155556666 11117777 444111 Sept 888777 11116666 66669999 55553333 3333,,,,888833335555 4444,,,,444466669999 111133333333 111144442222 111155556666 11116666 444111 Oct.? 11118888 77777777 55559999 4444,,,,222266661111 4444,,,,999966666666 111144448888 111155558888 111177773333 11119999 Italy Japan Kuwait a L n e o b n - Libya M s a i l a a y- Mexi- 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 68 158 21 1,756 31 53 2,414 329 67 193 68 109 21 1,730 18 53 2,400 338 136 193 68 31 166 21 1,711 18 53 2,923 356 122 288 85 66 165 21 1,697 24 54 2,956 413 86 288 85 63 169 21 1,720 25 54 2,887 532 86 288 85 48 176 21 1,787 23 54 2,884 679 87 322 85 58 184 21 1,909 33 55 3,130 801 94 350 93 63 188 23 2,078 36 60 3,130 801 94 350 93 63 188 23 2,059 36 60 3,130 801 94 350 93 63 188 23 2,059 37 60 3,134 801 94 350 93 63 188 23 2,059 37 60 3,134 801 94 350 93 63 188 23 2,059 37 60 3,134 801 94 350 93 63 188 23 2,059 37 60 3,134 801 94 350 93 63 188 23 2,059 37 60 3,134 802 350 93 63 188 23 2,059 37 60 3,134 802 350 93 63 186 23 2,063 37 60 3,134 802 350 93 63 184 23 2,063 37 60 3,134 802 350 93 63 23 2,065 37 60 3,134 802 350 93 63 2,065 37 60 3,483 891 388 103 2,294 41 67 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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, at $38 from May 1972-Sept. 1973, and at $42.22 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- Turkey U K d n i o i n t 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 r108 410 498 200 2,909 82 130 775 148 391 51 310 1972—Oct... 1,021 '117 636 541 217 3,158 89 122 800 169 425 56 267 Nov.. 1,021 '117 662 541 217 3,158 89 122 800 169 425 56 255 Dec.. 1,021 rl 17 681 541 217 3,158 89 136 800 133 425 56 218 1973—Jan... 1,022 rl 17 706 542 220 3,162 89 136 810 133 425 56 218 Feb... 1,022 rl 17 711 542 220 3,162 89 136 810 133 425 56 214 Mar.. 1,022 '117 714 542 220 3,162 89 136 810 133 425 56 214 Apr.. 1,022 '117 720 542 220 3,162 89 136 810 133 425 56 214 May., 1,022 '117 721 542 220 3,162 89 136 810 133 425 56 199 June. 1,022 '117 724 542 220 3,162 89 136 810 133 425 56 205 July.. 1,022 '117 734 542 220 3,162 89 136 133 425 56 204 Aug.. 1,035 '117 740 542 220 3,162 89 136 133 425 56 205 Sept.. 11,,003366 116 738 542 220 3,162 89 136 133 425 56 213 Oct.*. 112299 882200 224444 33,,551122 9999 114488 447722 6611 222277 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table, and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun- in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank's gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual NOTE.—For back figures and description of the data in this and the countries. following tables on gold (except production), see "Gold," Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa North and South America Asia Other WWoorrlldd PPeerriioodd pprroodduucc-ttiioonn ii 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 - t A ra u l s i - a ot A h l e l ri 1966 111111,,,,,,444444444444555555......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000008888888888888888888800000000000000000000....................88888888888888888888 2222222244444444........00000000 55555555........66666666 6666666633333333........11111111 111111111111111111111111111111111111111111444444444444444444444.....................666666666666666666666 77777777777...........55555555555 55555555........22222222 99999999999999999.................88888888888888888 4444444444444444................2222222222222222 11111111119999999999..........4444444444 1111111155555555........88888888 3333333333333322222222222222..............11111111111111 666666222222......999999 1967 111111,,,,,,444444111111000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000006666666666666666666688888888888888888888....................77777777777777777777 2222222266666666........77777777 55555555........44444444 5555555533333333........44444444 111111111111111111111000000000000000000000333333333333333333333.....................777777777777777777777 55555555555...........88888888888 55555555........22222222 99999999999999999.................00000000000000000 3333333333333333................4444444444444444 22222222223333333333..........7777777777 1111111177777777........22222222 2222222222222288888888888888..............44444444444444 555555999999......444444 1968 111111,,,,,,444444222222000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000008888888888888888888888888888888888888888....................00000000000000000000 2222222255555555........44444444 55555555........99999999 5555555533333333........99999999 999999999999999999999444444444444444444444.....................111111111111111111111 66666666666...........22222222222 44444444........99999999 88888888888888888.................44444444444444444 4444444444444444................0000000000000000 22222222221111111111..........5555555555 1111111188888888........55555555 2222222222222277777777777777..............66666666666666 666666111111......666666 1969 111111,,,,,,444444222222000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000009999999999999999999900000000000000000000....................77777777777777777777 2222222244444444........88888888 66666666........00000000 6666666600000000........11111111 888888888888888888888999999999999999999999.....................111111111111111111111 66666666666...........33333333333 33333333........77777777 77777777777777777.................77777777777777777 3333333333333333................4444444444444444 22222222223333333333..........7777777777 2222222200000000........00000000 2222222222222244444444444444..............55555555555555 666666000000......000000 1970 111111,,,,,,444444555555000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222288888888888888888888....................00000000000000000000 2222222244444444........66666666 66666666........22222222 6666666633333333........55555555 888888888888888888888444444444444444444444.....................333333333333333333333 66666666666...........99999999999 44444444........00000000 77777777777777777.................11111111111111111 3333333333333333................7777777777777777 22222222224444444444..........8888888888 2222222211111111........11111111 2222222222222211111111111111..............77777777777777 555555444444......111111 19712* 11111111111111111111....................000000000000000000009999999999999999999988888888888888888888....................77777777777777777777 2222222244444444........44444444 66666666........00000000 5555555522222222........33333333 777777777777777777777999999999999999999999.....................111111111111111111111 55555555555...........33333333333 33333333........77777777 66666666666666666.................66666666666666666 4444444444444444................1111111111111111 22222222227777777777..........0000000000 2222222222222222........22222222 2222222222222233333333333333..............55555555555555 1972? 11111111111111111111....................111111111111111111110000000000000000000099999999999999999999....................88888888888888888888 2222222277777777........55555555 55555555........33333333 5555555544444444........33333333 777777777777777777777777777777777777777777.....................222222222222222222222 55555555555...........66666666666 33333333........00000000 77777777777777777.................11111111111111111 4444444444444444................0000000000000000 33333333332222222222..........2222222222 2222222233333333........00000000 2222222222222288888888888888..............77777777777777 1972—Sept 9999999999999999999933333333333333333333....................99999999999999999999 666666666666666666666.....................333333333333333333333 ...........44444444444*********** .................66666666666666666 ................3333333333333333 3333333333..........1111111111 22222222222222..............33333333333333 Oct 9999999999999999999944444444444444444444....................22222222222222222222 666666666666666666666.....................333333333333333333333 ...........44444444444 .................55555555555555555 ................3333333333333333 2222222222..........7777777777 22222222222222..............11111111111111 Nov 9999999999999999999911111111111111111111....................55555555555555555555 666666666666666666666.....................000000000000000000000 ...........55555555555 .................77777777777777777 ................4444444444444444 22222222222222..............00000000000000 Dec 8888888888888888888844444444444444444444....................33333333333333333333 666666666666666666666.....................333333333333333333333 .................55555555555555555 ................3333333333333333 11111111111111..............99999999999999 1973—jan 8888888888888888888888888888888888888888....................22222222222222222222 666666666666666666666.....................222222222222222222222 .................88888888888888888 ................3333333333333333 22222222222222..............44444444444444 Feb 8888888888888888888866666666666666666666....................55555555555555555555 666666666666666666666.....................111111111111111111111 .................55555555555555555 ................3333333333333333 11111111111111..............88888888888888 Mar 8888888888888888888888888888888888888888....................55555555555555555555 666666666666666666666.....................333333333333333333333 .................55555555555555555 ................4444444444444444 Apr 8888888888888888888866666666666666666666....................66666666666666666666 666666666666666666666.....................222222222222222222222 .................66666666666666666 ................2222222222222222 May 8888888888888888888866666666666666666666....................00000000000000000000 666666666666666666666.....................888888888888888888888 .................66666666666666666 June 8888888888888888888877777777777777777777....................66666666666666666666 666666666666666666666.....................444444444444444444444 July 8888888888888888888888888888888888888888....................33333333333333333333 555555555555555555555.....................666666666666666666666 Aug 8888888888888888888899999999999999999999....................44444444444444444444 555555555555555555555.....................777777777777777777777 Sept 555555555555555555555.....................777777777777777777777 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 BUSINESS FINANCE • DECEMBER 1973 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1971 1972 1973 Industry 1969 1970 1971 1972 III IV I II III IV lr II Total (170 corps.): Sales 299,533 305,370 334,957 371,946 80,916 87,214 88,349 93,853 89,550 100,194 102,379 109,598 Total revenue 303,257 309,532 339,134 376,604 82,017 88,317 89,452 95,271 90,803 101,078 103,586 111,065 Profits before taxes........ 34,311 29,266 35,771 41,164 7,893 9,709 9,715 10,467 8,978 12,003 12,695 14,063 Profits after taxes 18,830 16,556 19,146 21 ,753 4,293 5,031 5,212 5,674 4,936 5,931 6,801 7,534 Memo: PAT unadj.1 18,335 16,436 18,020 21,233 3,950 4,373 5,162 5,687 4,490 5,894 6,754 7,375 Dividends 9,962 10,024 10,104 10,538 2,509 2,581 2,538 2,598 2,525 2,877 2,646 2,738 Nondurable goods industries (86 corps.):2 Sales 138,621 147,808 160,973 176,329 40,188 41,887 42,254 43,395 43,865 46,815 46,966 49,857 Total revenue 140,837 150,312 163,448 178,915 40,928 42,382 42,930 44,273 44,689 47,023 47,706 50,799 Profits before taxes 17,404 16,935 19,900 21,799 4,940 5,438 5,043 4,998 5,278 6,479 6,487 7,173 Profits after taxes 10,223 9,649 10,490 11 ,154 2,672 2,672 2,673 2,682 2,852 2,946 3,411 3,699 Memo: PAT unadj.1 9,529 9,591 10,085 10,859 2,625 2,409 2,625 2,625 2,574 3,035 3,348 3,587 Dividends 5,386 5,560' 5,664 5,780 1,417 1,442 1,447 1,430 1,427 1,476 1,487 1,485 Durable goods industries (84 corps.):3 Sales 160,912 157,562 173,985 195,618 40,727 45,327 46,095 50,458 45,685 53,379 55,413 59,741 Total revenue 162,420 159,220 175,686 197,690 41,090 45,935 46,522 50,999 46,115 54,055 55,880 60,266 Profits before taxes 16,907 12,332 15,871 19,365 2,953 4,271 4,673 5,469 3,697 5,524 6,208 6,890 Profits after taxes 8,607 6,908 8,656 10,599 1,621 2,359 2,539 2,992 2,083 2,984 3,390 3,835 Memo: PAT unadj.1 8,806 6,845 7,935 10,374 1,325 1,964 2,537 3,062 1,916 2,859 3,406 3,788 Dividends 4,577 4,464 4,440 4,758 1,092 1,139 1,091 1,168 1,097 1,401 1,159 1,253 Selected industries: Food and kindred prod. (28 corps.): Sales 28,962 31,966 34,584 37,624 8,717 9,073 8,824 9,229 9,531 10,039 9,561 10,183 Total revenue 29,341 32,393 35,090 38,091 8,831 9,206 8,941 9,371 9,665 10,115 9,711 10,346 Profits before taxes 2,845 3,122 3,372 3,573 898 863 794 880 940 960 890 989 Profits after taxes 1,364 1,571 1,714 1,845 453 446 414 454 486 490 470 509 Memo: PAT unadj. * 1,266 1,540 1,644 1,805 448 386 408 452 492 452 453 490 Dividends 764 812 862 893 216 218 221 222 223 227 237 230 Chemical and allied prod. (22 corps.): Sales 29,961 31,086 33,005 36,638 8,344 8,432 8,779 9,167 9,099 9,593 10,153 10,693 Total 30,308 31,490 33,388 37,053 8,423 8,574 8,868 9,265 9,196 9,723 10,264 10,849 Profits before taxes 4,123 3,863 4,123 4,853 1,060 1,031 1,172 1,184 1,216 1,280 1,487 1,615 Profits after taxes 2,180 2,111 2,290 2,672 580 586 652 667 683 669 838 900 Memo: PAT unadj. 1 2,206 2,137 2,167 2,671 573 494 649 626 684 712 834 884 Dividends 1,262 1,298 1,332 1,395 336 342 337 341 340 378 346 359 Petroleum refining (15 corps.): Sales 56,411 61,360 68,534 74,662 16,805 18,007 18,269 18,169 18,298 19,925 19,924 21,323 Total revenue 57,770 62,826 69,903 76,133 17,291 18,154 18,695 18,756 18,837 19,845 20,339 21,876 Profits before taxes 8,490 8,509 10,835 11,461 2,590 3,138 2,684 2,433 2,628 3,717 3,514 3,889 Profits after taxes 5,630 5,158 5,624 5,562 1 ,421 1,418 1,384 1,270 1,398 1,509 1,760 1,903 Memo: PAT unadj. i 4,987 5,131 5,519 5,325 1,396 1,390 1,356 1,273 1,119 1,578 1,737 1,888 Dividends 2,836 2,917 2,952 2,992 734 755 763 742 741 746 777 772 Primary metals and prod. (23 corps.): Sales 30,460 30,769 31,441 34,359 7,144 7,335 7,848 8,886 8,525 9,099 9,635 10,784 Total revenue 30,928 31,288 31,808 34,797 7,232 7,445 7,931 8,984 8,629 9,253 9,733 10,891 Profits before taxes 2,721 2,072 1,517 1,969 52 254 386 581 413 589 618 888 Profits after taxes 1,544 1,316 969 1,195 50 189 247 372 274 302 383 545 Memo: PAT unadj. 1 1,731 1,371 561 1,109 41 -213 260 465 128 256 397 538 Dividends 890 913 739 653 180 162 162 161 162 168 200 178 Machinery (27 corps.): Sales 44,858 46,486 49,206 55,615 12,170 13,368 12,939 13,796 13,862 15,018 14,828 16,033 Total revenue 45,314 47,028 49,846 56,348 12,317 13,561 13,102 13,993 14,050 15,203 14,997 16,228 Profits before taxes 5,281 4,885 5,277 6,358 1,290 1 ,453 1,416 1,550 1,583 1,810 1,705 1,883 Profits after taxes 2,593 2,566 2,884 3,522 702 806 781 854 870 1,017 933 1,037 Memo: PAT unadj. 1 2,596 2,477 2,560 3,388 435 786 774 848 865 902 931 1,019 Dividends 1,165 1,327 1,450 1,497 364 366 373 374 375 375 389 401 Motor vehicles and equipment (9 corps.): Sales 53,996 48,905 61,481 70,653 13,621 16,109 17,273 18,953 14,703 19,725 21,616 22,256 Total revenue 54,248 49,108 61,804 71,139 13,670 16,308 17,353 19,105 14,735 19,946 21,710 22,361 Profits before taxes 5,315 2,153 5,648 6,955 696 1,598 2,017 2,290 628 2,019 2,716 2,704 Profits after taxes 2,644 1,306 2,948 3,626 385 831 1,037 1,186 343 1,060 1,405 1,446 Memo: PAT unadj. 1 2,638 1,301 2,952 3,640 381 849 1,034 1,178 337 1,091 1,429 1,436 Dividends 1,750 1,434 1,433 1,762 359 359 359 439 365 599 369 474 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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A 97 Board of Governors and Staff shown on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 OFFICE OF MANAGING DIRECTOR FOR OFFICE OF MANAGING DIRECTOR FOR OPERATIONS AND SUPERVISION OFFICE OF BOARD MEMBERS RESEARCH AND ECONOMIC POLICY DAVID C. MELNICOFF, Managing Director *ROBERT SOLOMON, Adviser to the Board J. CHARLES PARTEE, Managing Director DANIEL M. DOYLE, Deputy Managing ROBERT L. CARDON, Assistant to the Board STEPHEN H. AXILROD, Adviser to the Board Director JOSEPH R. COYNE, Assistant to the Board ARTHUR L. BROIDA, Assistant to the Board GORDON B. GRIMWOOD, Assistant Director JOHN J. HART, Special Assistant to the Board MURRAY ALTMANN, Special Assistant to the and Program Director for FRANK O'BRIEN, JR., Special Assistant to the Board Contingency Planning Board WILLIAM W. LAYTON, Director of Equal JOHN S. RIPPEY, Special Assistant to the DIVISION OF RESEARCH AND STATISTICS Employment Board BRENTON C. LEAVITT, Program Director J. CHARLES PARTEE, Director for Banking Structure LYLE E. GRAMLEY, Deputy Director SAMUEL B. CHASE, Associate Director JAMES L. PIERCE, Associate Director LEGAL DIVISION PETER M. KEIR, Adviser STANLEY J. SIGEL, Adviser DIVISION OF FEDERAL RESERVE BANK THOMAS O'CONNELL, General Counsel MURRAY S. WERNICK, Adviser OPERATIONS PAULINE B. HELLER, Assistant General KENNETH B. WILLIAMS, Adviser Counsel JAMES B. ECKERT, Associate Adviser RONALD G. BURKE, Director JOHN NICOLL, Assistant General Counsel ROBERT J. LAWRENCE, Associate Adviser E. MAURICE MCWHIRTER, Associate ROBERT S. PLOTKIN, Assistant General JOSEPH S. ZEISEL, Associate Adviser Director Counsel EDWIN C. ETTIN, Assistant Adviser WALTER A. ALTHAUSEN, Assistant Director BALDWIN B. TUTTLE, Assistant General ELEANOR J. STOCKWELL, Assistant Adviser HARRY A. GUINTER, Assistant Director Counsel STEPHEN P. TAYLOR, Assistant Adviser JAMES R. KUDLINSKI, Assistant Director ANDREW F. OEHMANN, Special Assistant LOUIS WEINER, Assistant Adviser P. D. RING, Assistant Director to the General Counsel LEVON H. GARABEDIAN, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE JEROLD E. SLOCUM, Director CHESTER B. FELDBERG, Secretary RALPH C. BRYANT, Director CHARLES L. HAMPTON, Associate Director THEODORE E. ALLISON, Assistant Secretary JOHN E. REYNOLDS, Associate Director GLENN L. CUMMINS, Assistant Director NORMAND R. V. BERNARD, Assistant ROBERT F. GEMMILL, Adviser HENRY W. MEETZE, Assistant Director Secretary REED J. IRVINE, Adviser WARREN N. MINAMI, Assistant Director ELIZABETH L. CARMICHAEL, Assistant SAMUEL I. KATZ, Adviser RICHARD S. WATT, Assistant Director Secretary BERNARD NORWOOD, Adviser SAMUEL PIZER, Adviser DIVISION OF PERSONNEL GEORGE B. HENRY, Associate Adviser DIVISION OF SUPERVISION HELEN B. JUNZ, Associate Adviser AND REGULATION KEITH D. ENGSTROM, Director tNoRMAN S. FIELEKE, Assistant Adviser FREDERIC SOLOMON, Director OFFICE OF THE CONTROLLER BRENTON C. LEAVITT, Deputy Director fOn loan from the Federal Reserve Bank of Boston. FREDERICK R. DAHL, Assistant Director JOHN KAKALEC, Controller JACK M. EGERTSON, Assistant Director JOHN M. DENKLER, Assistant Controller JANET O. HART, Assistant Director JOHN N. LYON, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES JOHN T. MCCLINTOCK, Assistant Director THOMAS A. SIDMAN, Assistant Director WALTER W. KREIMANN, Director WILLIAM W. WILES, Assistant Director DONALD E. ANDERSON, Assistant Director GRIFFITH L. GARWOOD, Adviser JOHN D. SMITH, Assistant Director *On leave of absence. CO CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 FEDERAL OPEN MARKET COMMITTEE ARTHUR F. BURNS, Chairman ALFRED HAYES, Vice Chairman JOHN J. BALLES J. DEWEY DAANE GEORGE W. MITCHELL ANDREW F. BRIMMER DARRYL R. FRANCIS FRANK E. MORRIS JEFFREY M. BUCHER ROBERT C. HOLLAND JOHN E. SHEEHAN ROBERT P. MAYO ARTHUR L. BROIDA, Secretary ^ROBERT SOLOMON, Economist MURRAY ALTMANN, Assistant Secretary (International Finance) NORMAND R. V. BERNARD, Assistant LEON ALL C. ANDERSEN, Associate Economist Secretary RALPH C. BRYANT, Associate Economist THOMAS J. O'CONNELL, General Counsel ROBERT W. EISENMENGER, Associate Economist EDWARD G. GUY, Deputy General Counsel GEORGE GARVY, Associate Economist JOHN NICOLL, Assistant General Counsel LYLE E. GRAMLEY, Associate Economist J. CHARLES PARTEE, Senior Economist JOHN E. REYNOLDS, Associate Economist STEPHEN H. AXILROD, Economist KARL A. SCHELD, Associate Economist (Domestic Finance) KENT O. SIMS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager, System Open Market Account DAVID E. BODNER, Deputy Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL G. MORRIS DORRANCE, JR., THIRD FEDERAL RESERVE DISTRICT, President HARRY HOOD BASSETT, SIXTH FEDERAL RESERVE DISTRICT, Vice President JAMES F. ENGLISH, JR., FIRST FEDERAL DAVID H. MOREY, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT GABRIEL HAUGE, SECOND CHESTER C. LIND, NINTH FEDERAL FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL MORRIS F. MILLER, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT THOMAS I. STORRS, FIFTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH FEDERAL H. A. ROGERS, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 101 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch Boston 02106 James S. Duesenberry Frank E. Morris Louis W. Cabot James A. Mcintosh New York 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs Buffalo 14240 Rupert Warren A. A. Maclnnes, Jr. Philadelphia 19101 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes Cleveland 44101 Horace A. Shepard Willis J. Winn J. Ward Keener Walter H. MacDonald Cincinnati 45201 Graham E. Marx Fred O. Kiel Pittsburgh 15230 Robert E. Kirby Robert D. Duggan Richmond 23261 Robert W. Lawson, Jr. Robert P. Black Stuart Shumate Baltimore 21203 John H. Fetting, Jr. H. Lee Boatwright, III Charlotte 28201 Charles W. DeBell Jimmie R. Monhollon Culpeper Communications J. Gordon Dickerson, Jr. Center 22701 Atlanta 30303 John C. Wilson Monroe Kimbrel H. G. Pattillo Kyle K. Fossum Birmingham 35202 David Mathews Hiram J. Honea^ Jacksonville 32203 Henry Cragg Edward C. Rainey Nashville 37203 James W. Long Jeffrey J. Wells New Orleans 70161 Fred Adams, Jr. George C. Guynn Miami Office 33152 W. M. Davis Chicago 60690 William H. Franklin Robert P. Mayo Peter B. Clark Ernest T. Baughman Detroit 48231 W.M. Defoe William C. Conrad St. Louis 63166 Frederic M. Peirce Darryl R. Francis Sam Cooper Eugene A. Leonard Little Rock 72203 Roland R. Remmel John F. Breen Louisville 40201 William H. Stroube Donald L. Henry Memphis 38101 Alvin Huffman, Jr. L. Terry Britt Minneapolis 55480 David M. Lilly Bruce K. MacLaury Bruce B. Dayton M. H. Strothman, Jr. Helena 59601 William A. Cordinglev Howard L. Knous Kansas City 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boy sen Denver 80217 Maurice B. Mitchell George C. Rankin Oklahoma City 73125 Joseph H. Williams William G. Evans Omaha 68102 A. James Ebel Robert D. Hamilton Dallas 75222 Chas. F. Jones Philip E. Coldwell John Lawrence T. W. Plant El Paso 79999 Herbert M. Schwartz Frederic W. Reed Houston 77001 M. Steele Wright, Jr. James L. Cauthen San Antonio 78295 Irving A. Mathews Carl H. Moore San Francisco 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi JohnB. Williams Los Angeles 90051 Edward A. Sloan Gerald R. Kelly Portland 97208 Frank Anderson William M. Brown Salt Lake City 84110 Theodore C. Jacobsen 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 102 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) ANNUAL REPORT LOANS. 1965. 73 pp. $.50 each; 10 or more to one address, $.40 each. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per THE PERFORMANCE OF BANK HOLDING COMPAyear or $.60 each in the United States and its NIES. 1967. 29 pp. $.25 each; 10 or more to one possessions, Bolivia, Canada, Chile, Colombia, address, $.20 each. Costa Rica, Cuba, Dominican Republic, Ecuador, THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 Guatemala, Haiti, Republic of Honduras, Mexico, each; 10 or more to one address, $.85 each. Nicaragua, Panama, Paraguay, Peru, El Salvador, TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 Uruguay, and Venezuela; 10 or more of same issue each; 10 or more to one address, $.85 each. to one address, $5.00 per year or $.50 each. Else- U.S. TREASURY ADVANCE REFUNDING, JUNE ' where, $7.00 per year or $.70 each. 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or FEDERAL RESERVE CHART BOOK ON FINANCIAL more to one address, $.40 each. AND BUSINESS STATISTICS. Monthly. Subscrip- BANK CREDIT-CARD AND CHECK-CREDIT PLANS. tion includes one issue of Historical Chart Book. 1968. 102 pp. $1.00 each; 10 or more to one $6.00 per year or $.60 each in the United States address, $.85 each. and the countries listed above; 10 or more of same INTEREST RATE EXPECTATIONS: TESTS ON YIELD issue to one address, $.50 each. Elsewhere, $7.00 SPREADS AMONG SHORT-TERM GOVERNMENT per year or $.70 each. SECURITIES. 1968. 83 pp. $.50 each; 10 or more HISTORICAL CHART BOOK. Issued annually in Sept. to one address, $.40 each. Subscription to monthly chart book includes one SURVEY OF FINANCIAL CHARACTERISTICS OF issue. $.60 each in the United States and countries CONSUMERS. 1966. 166 pp. $1.00 each; 10 or listed above; 10 or more to one address, $.50 each. more to one address, $.85 each. Elsewhere, $.70 each. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. THE FEDERAL RESERVE ACT, as amended through 321 pp. $1.00 each; 10 or more to one address, December 1971, with an appendix containing pro- $.85 each. visions of certain other statutes affecting the Federal REPORT OF THE JOINT TREASURY-FEDERAL RE- Reserve System. 252 pp. $1.25. SERVE STUDY OF THE U.S. GOVERNMENT SE- REGULATIONS OF THE BOARD OF GOVERNORS OF CURITIES MARKET. 1969. 48 pp. $.25 each; 10 THE FEDERAL RESERVE SYSTEM. or more to one address, $.20 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF JOINT TREASURY-FEDERAL RESERVE STUDY OF GOVERNORS, as of June 30, 1973. $2.50. THE GOVERNMENT SECURITIES MARKET: DEBITS AND CLEARING STATISTICS AND THEIR USE. STAFF STUDIES—PART 1. 1970. 86 pp. $.50 each; 1959. 144 pp. $1.00 each; 10 or more to one 10 or more to one address, $.40 each. PART 2. 1971. 153 pp. $1.00 each; 10 or more to one SUPPLEMENT TO BANKING AND MONETARY STA- address, $.85 each. TISTICS. Sec. 1. Banks and the Monetary System. OPEN MARKET POLICIES AND OPERATING PROCE- 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. DURES—STAFF STUDIES. 1971. 218 pp. $2.00; 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. 10 or more to one address, $1.75 each. $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. REAPPRAISAL OF THE FEDERAL RESERVE DIS- Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. Sec. 10. Member Bank Reserves and Related Items. 2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 volume $3.00 each; 10 or more to one address, pp. $.35. Sec. 12. Money Rates and Securities $2.50 each. Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. THE ECONOMETRICS OF PRICE DETERMINATION 24 pp. $.35. Sec. 15. International Finance. 1962. CONFERENCE, October 30-31, 1970, Washington, 92 pp. $.65. Sec. 16 (New). Consumer Credit. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; 1965. 103 pp. $.65. 10 or more to one address, $4.50 each. Paper ed. INDUSTRIAL PRODUCTION—1971 edition. 383 pp. $4.00 each; 10 or more to one address, $3.60 each. $4.00 each; 10 or more to one address, $3.50 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- BANK MERGERS & THE REGULATORY AGENCIES: ERATE FLUCTUATIONS IN HOUSING CON- APPLICATION OF THE BANK MERGER ACT OF STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 1960. 1964. 260 pp. $1.00 each; 10 or more to or more to one address, $3.60 each. one address, $.85 each. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKING MARKET STRUCTURE & PERFORMANCE IN BANKS: A HISTORY, by Howard H. Hackley. 1973. METROPOLITAN AREAS: A STATISTICAL STUDY 271 pp. $3.50 each; 10 or more to one address, OF FACTORS AFFECTING RATES ON BANK $3.00 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 103 STAFF ECONOMIC STUDIES BUSINESS FINANCING BY BUSINESS FINANCE COM- PANIES. 10/68. Studies and papers on economic and financial subjects HOUSING PRODUCTION AND FINANCE. 3/69. that are of general interest in the field of economic THE CHANNELS OF MONETARY POLICY, Staff Ecoresearch. nomic Study by Frank de Leeuw and Edward Summaries only printed in the BULLETIN Gramlich. 6/69. REVISION OF WEEKLY SERIES FOR COMMERCIAL (Limited supply of mimeographed copies of full BANKS. 8/69. text available upon request for single copies) EURO-DOLLARS: A CHANGING MARKET. 10/69. RECENT CHANGES IN STRUCTURE OF COMMER- EXAMINATION OF THE MONEY STOCK CONTROL CIAL BANKING. 3/70. APPROACH OF BURGER, KALISH, AND BABB, by SDR's IN FEDERAL RESERVE OPERATIONS AND Fred J. Levin. March 1973. 18 pp. STATISTICS. 5/70. OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS MEASURES OF SECURITY CREDIT. 12/70. CHARACTERISTICS, by James L. Kichline, P. Mi- MONETARY AGGREGATES AND MONEY MARKET chael Laub, and Guy V. G. Stevens. May 1973. CONDITIONS IN OPEN MARKET POLICY. 2/71. 30 pp. BANK FINANCING OF MOBILE HOMES. 3/71. THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF INTEREST RATES, CREDIT FLOWS, AND MONETARY FUNDS, by Frederic Brill Ruckdeschel. June 1973. AGGREGATES SINCE 1964. 6/71. 171 pp. TWO KEY ISSUES OF MONETARY POLICY. 6/71. MORTGAGE COMMITMENTS ON INCOME PROPER- SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. TIES: A NEW SERIES FOR 15 LIFE INSURANCE COMPANIES, 1951-70, by Robert Moore Fisher and BANK RATES ON BUSINESS LOANS—REVISED Barbara Negri Opper. Aug. 1973. 83 pp. SERIES. 6/71. INDUSTRIAL PRODUCTION—REVISED AND NEW Printed in full in the BULLETIN MEASURES. 7/71. REVISED MEASURES OF MANUFACTURING CAPAC- (Staff Economic Studies shown in list below. ITY UTILIZATION. 10/71. Except for Staff Papers, Staff Economic Studies, and some leading articles, most of the articles reprinted do REVISION OF BANK CREDIT SERIES. 12/71. not exceed 12 pages.) PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. 12/71. REPRINTS ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. 2/72. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. WAYS TO MODERATE FLUCTUATIONS IN THE CON- STRUCTION OF HOUSING. 3/72. SEASONAL FACTORS AFFECTING BANK RESERVES. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 2/58. 6/72. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste- SOME ESSENTIALS OF INTERNATIONAL MONETARY phen H. Axilrod. 10/61. REFORM. 6/72. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. CHARACTERISTICS OF FEDERAL RESERVE BANK 7/62. DIRECTORS. 6/72. INTEREST RATES AND MONETARY POLICY, Staff BANK DEBITS, DEPOSITS, AND DEPOSIT TURN- Paper by Stephen H. Axilrod. 9/62. OVER—REVISED SERIES. 7/72. MEASURES OF MEMBER BANK RESERVES. 7/63. RECENT REGULATORY CHANGES IN RESERVE RE- REVISION OF BANK DEBITS AND DEPOSIT TURN- QUIREMENTS AND CHECK COLLECTION. 7/72. OVER SERIES. 3/65. YIELDS ON NEWLY ISSUED CORPORATE BONDS. RESEARCH ON BANKING STRUCTURE AND PER- 9/72. FORMANCE, Staff Economic Study by Tynan RECENT ACTIVITIES OF FOREIGN BRANCHES OF Smith. 4/66. U.S. BANKS. 10/72. A REVISED INDEX OF MANUFACTURING CAPACITY, REVISION OF CONSUMER CREDIT STATISTICS. Staff Economic Study by Frank de Leeuw with 10/72. Frank E. Hopkins and Michael D. Sherman. 11/66. SURVEY OF FINANCE COMPANIES, 1970. 11/72. REVISED SERIES ON COMMERCIAL AND INDUS- ONE-BANK HOLDING COMPANIES BEFORE THE 1970 TRIAL LOANS BY INDUSTRY. 2/67. AMENDMENTS. 12/72. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. 7/67. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. INTEREST COST EFFECTS OF COMMERCIAL BANK REVISION OF THE MONEY STOCK MEASURES AND UNDERWRITING OF MUNICIPAL REVENUE MEMBER BANK RESERVES AND DEPOSITS. 2/73. BONDS. 8/67. DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 4/73. 1960-67. 4/68. STATE AND LOCAL BORROWING ANTICIPATIONS FEDERAL FISCAL POLICY IN THE 1960's. 9/68. AND REALIZATIONS. 4/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 FEDERAL RESERVE BULLETIN • DECEMBER 1973 YIELDS ON RECENTLY OFFERED CORPORATE CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- BONDS. 5/73. MERCIAL BANKS. 9/73. FEDERAL FISCAL POLICY, 1965-72. 6/73. RATES ON CONSUMER INSTALMENT LOANS. 9/73. SOME PROBLEMS OF CENTRAL BANKING. 6/73. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. OPEN MARKET OPERATIONS IN 1972. 6/73. 10/73. CHANGES IN TIME AND SAVINGS DEPOSITS, APRIL- CHANGES IN BANK LENDING PRACTICES, 1972. 7/73. JULY 1973. 10/73. BANKING AND MONETARY STATISTICS, 1972. Se- NEW SERIES FOR LARGE MANUFACTURING CORlected series of banking and monetary statistics for PORATIONS. 10/73. 1972 only. 3/73 and 7/73. FINANCIAL DEVELOPMENTS IN THE THIRD CAPACITY UTILIZATION IN MAJOR MATERIALS IN- QUARTER OF 1973. 11/73. DUSTRIES. 8/73. U.S. ENERGY SUPPLIES AND USES. 12/73. TREASURY AND FEDERAL RESERVE FOREIGN EX- TREASURY AND FEDERAL RESERVE FOREIGN EX- CHANGE OPERATIONS. 9/73. CHANGE OPERATIONS, INTERIM REPORT. 12/73. ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Approximate Date or period to Weekly releases release day which data refer Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received, or Acted on, by the Board Friday Week ended previous (H.2) Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday Wednesday, 2 weeks States (H.8) earlier Capital Market Developments (H.16) Monday Week ended previous Friday Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding by Industry (H.12)2 Wednesday Wednesday, 1 week earlier Condition Report of Large Commercial Banks in New York and Thursday Previous Wednesday Chicago (H.4.3) Condition Report of Large Commercial Banks and Domestic Subsid- Wednesday Wednesday, 1 week iaries (H.4.2)3 earlier Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday Week ended 3 Wednesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks (H.4.1) Wednesday Money Stock Measures (H.6) Thursday Week ended Wednesday of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednesday of previous week Selected Interest and Exchange Rates for Major Countries and the Thursday Week ended previous United States (H.13) Saturday Weekly Foreign Exchange Rates (H.10) Monday Week ended previous Friday Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week Weekly U.S. Government Security Yields and Prices (H.15) Monday Week ended previous Saturday Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2Contains monthly H.12b release on second Wednesday of month. 'Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 105 Semimonthly and bimonthly releases Finance Rates and Other Terms on Selected Categories of Consumer 20th of month 2nd month previous Instalment Credit Extended by Finance Companies (J.3) Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last release of month Monthly releases Assets and Liabilities of All Member Banks by Districts (G.7.1). 14th of month Last Wednesday of previous month Automobile Loans by Major Finance Companies (G.25) 7th working day of month 2nd month previous Automobile Instalment Credit Developments (G.26) 6th working day of month 2nd month previous Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Commercial and Industrial Term Loans Outstanding by Industry 2nd Wednesday Last Wednesday of (H.12b) Available only as attachment to weekly H.12 release of month previous month Consumer Credit (G.19) 3rd working 2nd month previous day of month Consumer Instalment Credit at Commercial Banks (G.18) 4th working day 2nd month previous of month Finance Companies (G.20) 5th working day 2nd month previous of month Finance Rate and Other Terms on New and Used Car Instalment 30th of month Previous month Credit Contracts purchased from Dealers by Major Auto Finance Companies (G.ll) Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15th of month Previous month (Similar data also available annually, see p. A-106) 15th of month Previous month Interdistrict Settlement Fund (G.15) 15th of month 2nd month previous Interest Rates Charged on Selected Types of Bank Loans (G.10) Maturity Distribution of Euro-Dollar Deposits in Foreign Branches 1st of month Last day of 3rd month of U.S. Banks (G.17) previous Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposits (G.9) previous month Monthly Foreign Exchange Rates (G.5) 1st of month Previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month State Member Banks of Federal Reserve System and Non-member 1st week of Previous month Banks that Maintain Clearing Accounts with Federal Reserve month Banks (G.4) 1st week of End of previous year (Also annual) February Last week of Release date Summary of Equity Security Transactions (G.16) month 4th of month Previous month U.S. Government Security Yields and Prices (G.14) Quarterly releases Bank Rates on Short Term Business Loans (E.2) 18th of March, 1st 15 days of February, June, September, May, August, No- December vember Capacity Utilization in Manufacturing (E.5) 21st of January, Previous quarter April, July, October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Approximate Date or period to Quarterly releases (cont.) release day which data refer Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of February, Previous quarter Seasonally adjusted only (Z.la) May, August, and November Volume and Composition of Individuals' Saving (Flow of funds series) (E.8) Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of April, 2nd quarter previous rations (E.6) June, September, December Semiannual releases Assets and Liabilities of All Commercial Banks, by Class of Bank May and No- End of previous De- (E.3.4) vember cember and June List of OTC Margin Stocks (E.7) June 30, De- Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No- End of previous De- Savings Banks—Reports of Call (Joint Release of Federal De- vember cember and June posit Insurance Corp., Board of Governors of Federal Reserve System, and Office of Comptroller of the Currency. Published and distributed by FDIC.) Approximate Date or period to Annual releases release day which data refer Bank Debits to Demand Deposit Accounts Except Interbank and U.S. March 25 Previous year Government Accounts (C.5) End of Month Demand Deposits Except Interbank and U.S. Govern- March 25 Previous year ment Accounts (C.5a) Federal Reserve Par List (G.3) Early November Previous September 30 (Also monthly supplements) 5th of month Period since last release Industrial Production and Related Data November Previous year (Available upon request, after being announced) Member Bank Income (C.4) End of May Previous year 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: Agricultural loans of commercial banks, 22, 24 Adjusted, commercial banks, 14, 17, 23 Arbitrage, 93 Banks, by classes, 18, 23, 27 Assets and liabilities (See also Foreigners): Ownership by individuals, partnerships, and Banks, by classes, 18, 22, 23, 24, 37 corporations, 30 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Nonfinancial corporations, current, 48 Turnover, 14 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 54, 55, 56 Accumulated at commercial banks for payment of Production index, 58, 59 personal loans, 30 Banks, by classes, 18, 23, 27, 37 Euro-dollars, 88 Bank credit proxy, 17 Federal Reserve Banks, 12, 13, 88 Bankers' balances, 23, 26 Postal savings, 23 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 17 Banks for cooperatives, 38 Discount rates (See Interest rates) Bonds (See also U.S. Govt, securities): Discounts and advances by Reserve Banks (See Loans) New issues, 45, 46, 47 Dividends, corporate, 48, 96 Yields and prices, 34, 35 Dollar assets, foreign, 75, 81 Branch banks: Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Earnings and hours, manufacturing industries, 65 Brokerage balances, 85 Employment, 62, 64, 65 Business expenditures on new plant and equipment, 48 Euro-dollar deposits in foreign branches of U.S. banks, 88 Business indexes, 62 Business loans (See Commercial and industrial loans) Farm mortgage loans, 49, 50 Federal agency obligations, 11, 12, 13, 14 Capacity utilization, 62 Federal finance: Capital accounts: Receipts and outlays, 40, 41 Banks, by classes, 18, 23, 28 Treasury operating balance, 40 Federal Reserve Banks, 12, 13 Federal funds, 7, 22, 24, 28, 33 Central banks, 92, 94 Federal home loan banks, 38, 39, 51 Certificates of deposit, 28 Federal Home Loan Mortgage Corporation, 53 Coins, circulation, 15 Federal Housing Administration, 49, 50, 51, 52, 53 Commercial and industrial loans: Federal intermediate credit banks, 38, 39 Commercial banks, 17, 22, 31 Federal land banks, 38, 39 Weekly reporting banks, 24, 29 Federal National Mortgage Assn., 38, 39, 52 Commercial banks: Federal Reserve Banks: Assets and liabilities, 17, 18, 22, 23, 24 Condition statement, 12 Consumer loans held, by type, 55 U.S. Govt, securities held, 4, 12, 14, 42, 43 Deposits at, for payment of personal loans, 30 Federal Reserve credit, 4, 6, 12, 14 Loans sold outright, 31 Federal Reserve notes, 12, 13, 15 Number, by classes, 18 Federally sponsored credit agencies, 38, 39 Real estate mortgages held, by type, 50 Finance companies: Commercial paper, 31, 33 Loans, 24, 54, 55, 57 Condition statements (See Assets and liabilities) Paper, 31, 33 Construction, 62, 63 Financial institutions, loans to, 22, 24 Consumer credit: Float, 4 Instalment credit, 54, 55, 56, 57 Flow of funds, 70 Noninstalment credit, by holder, 55 Foreign: Consumer price indexes, 62, 66 Currency operations, 11, 12, 13, 75, 81 Consumption expenditures, 68, 69 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Corporations: Exchange rates, 91 Profits, taxes, and dividends, 48 Trade, 73 Sales, revenue, profits, and dividends of large manufac- Foreigners: turing corporations, 96 Claims on, 82, 83, 88, 89, 90 Security issues, 46, 47 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Security yields and prices, 34, 35 Cost of living (See Consumer price indexes) Gold: Currency and coin, 5, 9, 23 Certificates, 12, 13, 15 Currency in circulation, 5, 15, 16 Earmarked, 88 Customer credit, stock market, 36 Net purchases by United States, 74 Production, 95 Debits to deposit accounts, 14 Reserves of central banks and govts., 94 Debt (See specific types of debt or securities) Stock, 4, 75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 108 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Government National Mortgage Assn., 52 Prime rate, commercial banks, 32 Gross national product, 68, 69 Production, 58-61, 62 Profits, corporate, 48, 96 Hours and earnings, manufacturing industries, 65 Real estate loans: Housing permits, 62 Banks, by classes, 22, 25, 37, 50 Housing starts, 63 Delinquency rates on home mortgages, 53 Mortgage yields, 35, 51, 52, 53 Income, national and personal, 68, 69 Type of holder and property mortgaged, 49-53 Industrial production index, 58-61, 62 Reserve position, basic, member banks, 7 Instalment loans, 54, 55, 56, 57 Reserve requirements, member banks, 9 Insurance companies, 37, 42, 43, 50, 51 Reserves: Insured commercial banks, 20, 22, 30 Central banks and govts., 94 Interbank deposits, 18, 23 Commercial banks, 23, 26, 28 Interest rates: Federal Reserve Banks, 12, 13 Business loans by banks, 32 Member banks, 5, 6, 17, 23 Federal Reserve Banks, 8 U.S. reserve assets, 75 Foreign countries, 92, 93 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Money market rates, 33 Retail credit, 54 Mortgage yields, 51, 52, 53 Retail sales, 62 Prime rate, commercial banks, 32 Time and savings deposits, maximum rates, 10 Sales, revenue, profits, and dividends of large manufacturing Yields, bond and stock, 34 corporations, 96 International capital transactions of U.S., 76-90 Saving: International institutions, 74, 75, 92, 94 Flow of funds series, 70 Inventories, 68 National income series, 68 Investment companies, issues and assets, 47 Savings and loan assns., 38, 43, 51 Investments (See also specific types of investments): Savings deposits (See Time deposits) Banks, by classes, 18, 22, 25, 26, 37 Savings institutions, principal assets, 37, 38 Commercial banks, 17 Securities (See also U.S. Govt, securities): Federal Reserve Banks, 12, 14 Federally sponsored agencies, 38, 39 Life insurance companies, 37 International transactions, 84, 85 Savings and loan assns., 38 New issues, 45, 46, 47 Yields and prices, 34, 35 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 (See also Securities): Capacity utilization, 62 New issues, 46, 47 Production index, 59, 62 Yields and prices, 34, 35 Margin requirements, 10 Member banks: Tax receipts, Federal, 41 Assets and liabilities, by classes, 18, 22 Time deposits, 10, 17, 18, 23, 27 Borrowings at Federal Reserve Banks, 6, 12 Treasury cash, Treasury currency, 4, 5, 15 Number, by classes, 18 Treasury deposits, 5, 12, 13, 40 Reserve position, basic, 7 Treasury operating balance, 40 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: Weekly reporting banks, 24 Consumer and wholesale commodity, 62, 66 Security, 35 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A' '' ppaaggeess)) Other ("A' '' ppaaggeess)) TTeexxtt TTTeeexxxttt eettcc.. Index to eeetttccc... Index to Issue total Total tables Issue total Total tables January ... 1- 50 1-109 108-109 July 481-550 1-109 108-109 February .. 51-128 1-109 108-109 August 551-610 1-107 106-107 March 129-242 1-125 124-125 September ... 611-712 1-105 104-105 April 243-316 1-107 106-107 October 713-778 1-104 103-104 May 317-382 1-121 120-121 November 779-836 1-108 107-108 June 383-480 1-118 117-118 December 837-924 1-119 107-108 (References to "A" pages in this index are to such pages in the December issue.) Pages Pages Acceptances made by State member banks, amount lim- Bank holding companies (For orders issued to individual itations, interpretation 450 companies under the Bank Holding Company Act, Air Force, joint experiment with Treasury and Federal see Bank Holding Company Act): Reserve to automate Govt, payrolls 608 Groups, banking offices, assets, and deposits of banks Alexander, Ridley, director, Memphis Branch, appoint- in addtional data 923 ment 47 Regulation Y: Alibrandi, Joseph F., Class C director and Deputy Chair- Amendments 19, 833, 892 man, San Francisco, appointment 42 Interpretations and statement 833, 892 Allison, Theodore E., Assistant Secretary of the Board, Bank Holding Company Act: appointment 478 Board elimination of equal offer to all stockholders as Altmann, Murray, Special Assistant to the Board, Office criterion for Reserve Banks' consideration of appliof Managing Director for Research and Economic cations under, amendment of regulation 811 Policy, appointment 831 Board review under grandfather proviso in: Andersen, Harold W., Class C director, Kansas City, Alaska Bancshares, Inc 211 appointment 41 Alexandria Shares Corp 224 Annual Report, 1972, Board of Governors 380 Amalgamated Associates Co 224 Articles: Amalgamated Investments Co 224 Bank lending practices, 1972, changes 501 Bankshares of Indiana, Inc. (formerly Indiana In- Capacity utilization in major materials industries ... 564 dustries, Inc.) 225 Consumer instalment loans, rates 641 Barclay's Bank, Ltd., London, England 225 Corporate bonds, yields on recently offered bonds . 336 Charles Stewart Mott Foundation 225 Corporate external financing, recent patterns 837 Chicago City Bancorporation, Inc 308 Corporations, large manufacturing, new series 731 Columbia Union Bancshares 225 Credit-card, check-credit plans at commercial banks 646 Contract Leasing Corporation and Clayton Bank- Federal fiscal policy, 1965-72 383 shares Corporation 215 Financial developments, quarterly reports to Congress: Coronado Financial Corp 225 Q-4, 1972 51 D. H. Baldwin Company 536 Q-l, 1973 317 Delta Loan & Finance Company 225 Q-2, 1973 551 Doyle, Frank P. Trust, Article IX 224 Q-3, 1973 779 Financial General Corp 225 Industrial production, expansion 611 Financial Investments Corp 224 Member bank income, 1972 329 Financial Network Corp 224 Money stock measures and member bank reserves and First Bancorporation 224 deposits, revision of series 61 First Highland Corp 224 Mortgage, construction, and real estate markets 481 First National Bank in Dallas 219 1972: A year of accelerating recovery 1 First National Bank of Cicero Corp 224 Open market operations in 1972 405 First Nationald Bank Voting Trust 211 Price developments, recent 129 First Oklahoma Bancorporation, Inc 217 State and local borrowing anticipations and realizations 257 First Railroad & Banking Company of Georgia .. 220 Time and savings deposits, surveys 261, 493, 724 Hong Kong and Shanghai Banking Corporation, Treasury and Federal Reserve foreign exchange opera- Hong Kong 224 tions, reports 142, 506, 622, 871 Hopeton Holding Corp 224 U.S. balance of payments, developments, and adjust- Houston National Co 225 ment since 1971 243, 713 Independent Bancorporation 225 Assets and liabilities, foreign branches, member banks 710 Industrial Bank of Japan, Ltd., Tokyo, Japan ... 225 Automobile credit statistics, 1960-72, revision 240 International Equities, Inc 224 Axilrod, Stephen H., Adviser to Board, Office of Man- Investment Securities Corp 224 aging Director for Research and Economic Policy, Keystone Consolidated Industries, Inc 222 appointment 831 Marine Bancorporation 224 Memphis Trust Company 225 Balance of payments (See U.S. balance of payments) Mercantile Commerce Co 225 Balles, John J., Steering Committee member for foreign Millikin, James, Estate of, deceased 225 banking study, announcement 123 Minnesota Small Loan Company 225 A 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 110 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Board review under grandfather proviso in—cont. Orders issued under—Cont. National Bank of Greece, S.A., Athens, Greece . 225 Connecticut BancFederation, Inc 898 Patagonia Corporation 539 Continental Banksystem, Inc 597 Perpetual Corporation and Pierce National Life In- Continental Illinois Corporation 919 surance Company 218 County National Bancorporation 312, 919 Potomac Securities Corp 224 Crocker National Corporation 476 Republic National Bank of Dallas 600, 768 D. H. Baldwin Company 750, 752 Royal Bank of Canada, Montreal, Canada 225 Dawson Corporation 917, 919 Sealy & Smith Foundation for the John Sealy Hos- Dearborn Financial Corporation 372 pital 225 Deposit Guaranty Corp 593 South St. Louis Investment Company or Hampton Dominion Bankshares Corporation 373, 543, 707, 919 Bankshares Corporation 225 Doraco, Inc 311 Southeastern Shares Corp 225 Ellis Banking Corporation 300,311, 828 Sumitomo Bank, Ltd., Osaka, Japan 224 Elmer Crosley and Sons Investment Corporation 31 Swiss-Israel Trade Bank, Geneva, Switzerland; Equitable Bancorporation 121 Beaver Securities Co. Inc., New York, N.Y.; and Exchange Bancorporation, Inc 708 Exchange Place Corp., New York, N.Y 771 F&M National Corporation 905 Tennessee Shares Corp 225 F & M Operating Company 117 U T Securities Corp 225 Farmer City Agency, Inc 918 Virginia Bankshares, Inc 224 Farmers & Merchants Insurance Agency, Inc. ...372, 373 Wasatch National, Inc 225 Federated Texas Bancorporation, Inc 310 Western and Southern Life Insurance Company . 225 Fidelity American Bankshares, Incorporated ..32, 33, Whitney Holding Corporation 371 774, 919 Zachary Taylor Life Insurance Company 225 Fidelity Corporation of Pennsylvania 373, 472 Zions Utah Bancorporation 213 Fidelity Financial Corporation of Michigan 120 Orders issued under: Fidelity Union Bancorporation 373 ASB Investment Company 706 Financial Data Systems, Inc 774 Affiliated Bankshares of Colorado, Inc 682 Financial General Bankshares, Inc 677, 678 Alabama Bancorporation 120,372, First Alabama Bancshares, Inc 372, 584, 583, 602, 828, 918 756, 757, 828 Alabama Financial Group, Inc 311, 543, 603, 775 First Amtenn Corporation 122, 373, 475, 706 Alpha Agency, Inc 918 First & Merchants Corporation 587, 603, 829 American Bancorporation 311 First Arkansas Bankstock Corporation ... 28, 476, 828 American Bancorporation, Inc 544 First at Orlando Corporation 302, 311, 918 American Bancshares, Inc 708 First Banc Group, Inc 774 American Fletcher Corporation 476, 544 Frist Banc Group of Ohio, Inc 828 American National Holding Company 23. 32, 774 First Bancgroup-Alabama, Inc 542 Associated Bank Corporation 828 First Bancorp, Inc 311 Atlantic Bancorporation 685, 776 First Bancorporation of Texas, Inc 603 BancOhio Corporation ..32,120,372,475,543, 830 First Bancshares of Florida, Inc. .. 545, 603,829, 830 Bancorporation of Montana 543 First Bankshares Corp. of S.C 829 Bank of Virginia Company 312, 918 First Chicago Corporation 604 Bank America Corporation 544, 592, 687 First City Bancorporation of Texas, Inc 105, 107, Bankers Trust New York Corporation ..364, 543, 694 451,475,543, 603 Barnett Banks of Florida, Inc 299, 311, First Commerce Corporation 604 372, 475, 476, 602, 706, 828, 918 First Commercial Banks Inc 20, 118, 776 Berkshire Bancorp Inc 603 First Continental Corporation 32 Boone County Insurance Agency 121 First Finance Company and Mid-Continent Banc- CBT Corporation Ill, 469 shares 602, 604 C-M Company, Inc 31, 33 First Financial Corporation 121, 543 Cambridge Agency, Inc 120, 122 First Florida Bancorporation 121, 183, 543, 603 Cegrove Corporation 676 First Georgia Bancshares, Inc 542 Central Bancompany 829 First International Bancshares, Inc 453, 529 Central Bancorp., Inc 461 543, 603, 775, 812, 813, 814, 828 Central Bancshares of the South, Inc. ..372,543, 918 First Jersey National Corporation 373 Central Mortgage Company, Inc 475, 476 First National Agency of Aitkin, Inc 705, 707 Central National Bancshares, Inc 828, 829, 920 First National Bancorporation, Inc 360, 543 Central National Corporation 776, 919 First National Bank in Dallas and First National Central Texas Financial Corporation 705 Securities Company in Dallas 32 Centran Bancshares Corporation 471, 544 First National Bankshares of Florida, Inc 362 Century Bancorp, Inc 121 First National Boston Corporation 758, 759 Century Bancshares, Inc 31, 33 First National Charter Corporation 311, 603, 605 Charter New York Corporation 311, 372 First National City Corporation 27, 114, 775, 919 Chase Manhattan Corporation 475, 918 First National Company of Missouri Valley, Inc. 209 Chemical New York Corporation 121,698, 919 First National Financial Corporation 121, 373, 475, 920 Citibanc Group, Inc 31 First National Holding Corp 203, 210, 373, 775 Citizens Agency, Inc 310, 312 First National State Bancorporation 210, 900 Citizens and Southern Holding Company, Inc. .. 707 First New Mexico Bankshare Corporation ....589, 706 Citizens Bancshares Corporation 705 First Newton Bankshares, Inc 705 Citizens Commercial Corporation 828 First Pennsylvania Corporation 33, 477, 544, 604 CleveTrust Corporation 602 First Piedmont Corporation 456 Commerce Bancshares, Inc 32, 311, 603, 829 First Pioneer Bancorp, Inc 542 Commonwealth National Corporation 918 First Railroad & Banking Company of Georgia .. 25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 A 111 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Orders issued under—Cont. First Security Corporation 32, 455, 603 North Shore Capital Corporation 31 First Security National Corporation 373, 543, 920 Northeast Bankshare Association 828 First State Bancshares Corporation 31 Northern Virginia Bankshares Incorporated 33 First Steuben Bancorp, Inc 121, 918 Northwest Bancorporation ....194, 477, 701, 706, 762 First Tennessee National Corporation 20, 373, Northwest Iowa Bancorporation 310 544, 775, 918 Oakland Banshares, Inc ...209, 210 First Texas Bancorp, Inc 829 Old Kent Financial Corporation 544, 776, 823 First Union, Incorporated 210,543, 603 Orbanco, Inc 367, 604 First United Bancorporation, Inc 373, 543 Palmer Bank Corporation 182 First Valley Corporation 829 Pan American Bancshares, Inc 605, 707 First Virginia Bankshares Corporation ..202,475, 907 PanNational Group Inc 544, 603 First Wisconsin Bankshares Corporation 191 Patagonia Corporation 369, 544, 604 First Wyoming Bancorporation 705 Peninsular Holding Corporation of Michigan 209 First York Ban Corp 542 Peoples National Corporation 776 Florida Bancorp, Inc 816 Philadelphia National Corporation 545,775, 913 Florida Bankshares, Inc 372 Piedmont Carolina Financial Services, Inc 766 Florida National Banks of Florida, Inc 210 Pierce Agency, Inc 918 Forest Lake Finance Company 917, 919 Poplar Insurance Agency, Inc 31, 33 Fort Worth National Corporation 311,706, 775 R. R. Donnelley & Sons Company 477 Fourth Financial Corporation 208 Redwood Bancorp 122, 604 Franklin Bancorporation 917 Republic of Texas Corporation 827 Frisco-Dillon, Inc 31 Rock County BanCorp and Jackman Management 310 Frost Realty Company 311 Schroder International Limited and Schroder Inter- FrostBank Corporation 919 national Holdings Limited, London, England 917 General Financial Systems, Inc 706, 903 Security National Corporation 32, 122, 468 Geneva Investment Company 475, 477 Security New York State Corporation 476 Globe Corporation 373 South Carolina National Corporation 707 Great American Corporation 122 Southeast Banking Corporation 121, 460, 476, 775, 918 Great Lakes Bancorp, Inc 706 Southern Bancorporation 764 Great Lakes Holding Company 706 Southwest Bancshares, Inc 32, 121, 311 Greater Jersey Bancorp 543, 544 Southwest Company 599 Hamilton Bancshares, Inc 109, 544, 817 Southwest Florida Banks, Inc 310 Hathdel Inc 602 Standard and Chartered Banking Group, Limited, Hawkeye Bancorporation of Des Moines 706 London, England 775 Heldenfels Brothers 122 State National Corporation 31 Heritage Bancorporation 918 State Street Boston Financial Corporation —526, 544 Illinois Neighborhood Development Corporation . 917 Stockgrowers State Bank Company Inc 542 Indian Head Banks Inc 210, 918 Suburban Bancorporation 825 Industrial National Corporation 206 Survco Bancorp, Inc 542, 545 Iron City Eagle Coal, Inc 602 Tennessee Homestead Company 32 Irwin Union Corporation 919 Tennessee National Bancshares, Inc 700 Jackman Management 311 Tennessee Valley Bancorp, Inc 373, 604 Jacob Schmidt Company and American Bancor- Texas Commerce Bancshares, Inc 32, 373 poration, Inc 829 Third National Corporation 121, 373, 477, 706 Landmark Banking Corporation of Florida 543, 775, 830 Twin Gates Corporation 920 Liberty National Corporation 919 Twin Gates Corporation and Northern States Ban- Maine Bancorporation 604 corporation, Inc 829 Manufacturers Hanover Corporation 32, 121, U.N. Bancshares, Inc 204, 476 311,532,543,775, 908 Union Bancorp, Inc 914 Manufacturers National Corporation 209 Union Bancshares Company 707 Marine Bancorporation 707 Union Commerce Corporation, Cleveland, Ohio 829 Marine Midland Banks, Inc 919 Union Commerce Corporation, Wash., D.C 476 Mark Twain Bancshares, Inc 476 Union Planters Corporation 828 Marshall & Ilsley Corporation 22 United Alabama Bancshares, Inc 545 Mellon National Corporation 775, 910 United Banks of Colorado, Inc 121, 706, 828 Mercantile Bancorporation, Inc. .. 603, 776, 828, 830 United Banks of Wisconsin, Inc 32 Mercantile Bankshares Corporation 476, 918 United Carolina Bancshares Corporation 596 Merchants National Corporation 312 United First Florida Banks, Inc 706, 918 Michigan Financial Corporation 542 United Jersey Banks 544 Michigan National Corporation 819 United Michigan Corporation 372 Mid-America Fidelity Corporation 706 United Missouri Bancshares, Inc 775 Midlantic Banks, Inc 707 United Ohio Bancorp 542 Midwest Bank Shares, Inc 31 United Tennessee Bancshares Corporation 530 Moody Foundation 604 United Virginia Bankshares, Incorporated ..707, 828, 919 Mountain Banks, Ltd 312 Virginia National Bankshares, Inc 373, 544 Multibank Financial Corp 679, 776 Walter Heller International Corp 463 NBS Financial Corporation 918 Waverly Investment Company 827, 829 NCNB Corporation 305 Wells Fargo & Company 122, 707 National Bancshares Corporation of Texas 210 Whitmore Bancorporation, Inc 542 New England Merchants Company, Inc 459, 476 Worcester Bancorp Inc 477 New Jersey National Corporation 312 Wyoming Bancorporation 180, 210, 775 North American Mortgage Corporation 32 Zions Utah Bancorporation 312, 919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Bank Merger Act: Board of Governors—Continued Orders issued under: Staff changes—Cont. Alabama Bank of Guin, Guin, Ala 312 Burke, Ronald G 375 Bank of Fulton County, East Point, Ga 545 Coyne, Joseph R 240 Bank of Lansing, Lansing, Mich 33 Denkler, John M 313 Cheboygan State Bank, Cheboygan, Mich 374 Doyle, Daniel M 606, 831 Citizens Bank of Poquoson, Poquoson, Va 546 Engstrom, Keith D 606 Cleveland Trust Company of Lorain, Lorain, Ohio 605 Feldberg, Chester B 240, 375 Cleveland Trust Company of Painesville, Paines- Fieleke, Norman S., on leave of absence from Fedville, Ohio . 605 eral Reserve Bank of Boston 709 Cuyahoga Bank, Cleveland, Ohio 605 Garwood, Griffith L 240 Delta Bank, Delta, Ohio 122 Gramley, Lyle E 831 FBT Bank, Fremont, Mich : 776 Hackley, Howard H 375 Grand Haven State Bank, Grand Haven, Mich. . 33 Halley, Harry J 313 Interim Bank of Oxford, Oxford, Ala 920 Hart, John J 606 Menominee State Bank, Menominee, Mich 477 Henry, George B 709 Montana Street State Bank, El Paso, Tex 545 Hersey, A. B 478 Mountain Bank, Roanoke, Va 707 Johnson, Edwin J 478 New Corpus Christi Bank and Trust, Corpus Christi, Junz, Helen B 709 Tex 452 Kelleher, Joseph E 35, 478 North Moore Street Bank, Arlington, Va 312 Kiley, John N., Jr 478 PSB Bank, Holland, Mich 825 Kreimann, Walter W 35 Peoples Bank and Trust Company, Selma, Ala. .. 920 Kudlinski, James R 606 Peoples Bank of Stark County, Canton, Ohio ... 708 Lawrence, Robert J 478 Peoples Savings Bank Company, Delta, Ohio ... 829 Mcintosh, James A 375 Rice Avenue State Bank, Ballaire, Tex 815 McWhirter, E. Maurice 606 Sandusky Security Bank, Sandusky, Ohio 33 Melnicoff, David C 831 Texas Bank & Trust Company of Dallas, Dallas, Minami, Warren N 606 Tex 545 Nicoll, John 240 Traverse City Bank and Trust Company, Traverse Oehmann, Andrew F 240 City, Mich 33 Partee, J. Charles 831 West Branch Bank, West Branch, Mich 776 Pierce, James 831 Barton, David W., Jr., director, Baltimore Branch, ap- Plotkin, Robert S 240 pointment 40 Smith, Tynan 375 Beaird, Charles T., Class C director, Dallas, appointment 42 Tuttle, Baldwin B 606 Bennion, Sam H., director, Salt Lake City Branch, ap- Wiles, William W 478 pointment 42 Wood, Ralph C 478 Black, Robert P., President, Federal Reserve Bank of Bonds, yields on recently offered corporate bonds, article 336 Richmond, appointment 606 Borrowing anticipations and realizations, State and local, Board of Governors (See also Federal Reserve System): article 257 Annual Report, 1972 380 Auditing, statement on proposed legislation 734 Branch banks: Bank credit actions taken 375, 548, 549, 709, 921 Federal Reserve: Bank holding company and bank merger applications Cincinnati and Pittsburgh Branches, transfer of part (See Bank Holding Company Act and Bank Merger of territory of Cleveland Reserve Bank to 549 Act) Construction and renovation, statement on proposed Delegation of authority (See Regulations) legislation to increase ceiling on expenditures . 734 Foreign banking study, announcement of review ... 123 Directors (See Directors) Foreign credit restraint program (See Foreign credit Vice Presidents in charge A-101 restraint program guidelines) Foreign: Interpretations (See Interpretations) Branches of member banks, assets and liabilities 710 Loan commitments, letter sent to State member banks 313 Policy statement on availability of information to Members: facilitate supervision, interpretation 449, 541 Burns, Arthur F.: Reserve requirements, amendment of Regulations D Addresses at International Monetary Conference and M 445, 447 and dedication of new Reserve Bank Brimmer, Andrew F., statement on proposed legislation building 417, 655 concerning consumer finance 429 Statement on termination of official gold transac- Broeker, Bernard D., Class B director, Philadelphia, tions agreement 831 election 43 Holland, Robert C., appointment 478 Broida, Arthur L.: List, 1913-73 433 Assistant to the Board, Office of Managing Director Mitchell, George W., Vice Chairman, designation 375 for Research and Economic Policy, appointment 831 Robertson, James L., resignation 375 Secretary, Federal Open Market Committee, appoint- Statements to Congress (See Statements to Congress) ment _ 548 Members and officers A-98 Bruner, William W., director, Charlotte Branch, ap- Publications (See Publications) pointment 46 Regulations and Rules (See Regulations) Bucher, Jeffrey M.: Staff changes: Consumer finance, statement 420 Allison, Theodore E 478 Member, Federal Reserve System Labor Relations Altmann, Murray 831 Panel, appointment 240 Axilrod, Stephen H 831 Steering committee member for foreign banking study, Broida, Arthur L 831 announcement 123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 A 113 Pages Pages Burke, Ronald G., Director, Division of Federal Reserve Coyne, Joseph R., Assistant to the Board, appointment 240 Bank Operations, appointment 375 Credit (See also Loans): Burns, Arthur F.: Automobile credit statistics, 1960-72, revision 240 Central banking, some problems, remarks at Interna- Bank credit actions taken by Board of tional Monetary Conference 417 Governors ...., 375, 548, 549, 709, 921 Economic Stabilization Act, statements on extension, Bank holding companies, extension by 19 in capacity as Chairman of Committee on Interest and Consumer finance (See Consumer finance) Dividends 81, 280 Federal Reserve, extensions by, revisions of Regula- Economy, statement on condition 164, 567 tion A 313, 353 Federal budget, statement on proposed legislation con- Mortgage credit and housing markets, statement of cerning congressional review and control 171 Chairman Burns 658 Federal Reserve System, excerpt from address on its State and local borrowing anticipations and realizaobjectives and responsibilities 655 tions, article 257 Foreign exchange markets and U.S. balance of pay- Stocks and bonds (See Stock market credit) ments, statements on recent developments 508, 879 Truth in lending (See Truth in lending) Gold transactions, statement on termination of official Credit-card and check-credit plans at commercial banks, agreement 831 article 646 Money supply in conduct of monetary policy, letter Curry, Robert E., director, Nashville Branch, appointto Senator Proxmire 791 ment 46 Mortgage credit and housing markets, statement ... 658 Custer, Harley, director, Oklahoma City Branch, ap- Par Value Modification Act of 1972, statements on pointment 41 proposed amendment 168, 176 Cyrnak, Anthony W., article 329 Reserve requirements, address on structure 339 Business conditions, national summary (See also Indus- Daane, J. Dewey: trial Production) 49, 126, 241, 315, 381, 479, 924 Foreign exchange markets and U.S. balance of payments, statement 425 Calvert, Richard W., director, San Antonio Branch, Steering committee member for foreign banking study, appointment 48 announcement 123 Capacity utilization in major materials industries, article 564 Davidson, Linda, article 641 Central banking, some problems, remarks of Chairman Deck, Beryl, article 336 Burns at International Monetary Conference 417 Denkler, John M., Assistant Controller, appointment . 313 Central banks, statement of Chairman Burns on termina- Deposits: tion of official gold transactions agreement 831 Financial Institutions Act of 1973, statement on Chairman and Deputy Chairman of Federal proposed legislation affecting 799 Reserve Banks 37, A-101 Interest rates (See Interest on deposits) Chart Book, Board of Governors, revision 832 Nondeposit borrowings of banks, interpretation .... 524 Check clearing and collection, statement on proposed Reserve requirements (See Reserve requirements) .. legislation affecting 799 Revision of series 61 Check-credit and credit-card plans at commercial banks, Time and savings deposits, surveys 261, 493, 724 article 646 Deputy Chairmen of Federal Reserve Banks 37, A-101 Chittin, Reed H., director, El Paso Branch, appointment 48 Directors: Clark, Peter B., Class C director and Deputy Chairman, Federal Reserve Banks: Chicago, appointment 41 Chairmen and Federal Reserve Agents 37, A-101 Clausen, A. W., Class A director, San Francisco, election 45 Class A and Class B, elections 43 Coleman, John R., Chairman, Philadelphia, designation 40 Class C, appointments 38 Commercial banks: Deputy Chairmen 37, A-101 Credit-card and check-credit plans, article 646 List 226 Financial Institutions Act of 1973, statement on Federal Reserve branch banks: proposed legislation affecting 799 Appointments 38, 46, 606 Foreign branches of member banks, assets and List 226 liabilities 710 Resignation 606 Loans and investments series, revision 831 Discount rates (See Interest rates) Time and savings deposits, surveys 261, 493, 724 Dividends: Commercial paper issued by affiliate of member bank, Federal Reserve Banks 35 amendment and interpretation of Regulation D 375-77, Member banks 329 523, 549, 581, 675, 709, 921 Doyle, Daniel M., Deputy Director for Management, Condition and income reports, availability of tapes with Office of Executive Director, and subsequent Deputy banking data 380 Managing Director for Operations and Supervision, Construction: appointments 606, 831 Federal Reserve branch banks, statement on proposed Dwyer, Edward J., Class C director and Deputy Chairlegislation to increase ceiling on expenditures ... 734 man, Philadelphia, appointment 40 Mortgage, real estate, and construction markets, article 481 Consumer finance: Earnings and expenses: Consumer protection warranties and Federal Trade Federal Reserve Banks 35 Commission improvements, and "Truth in Savings Member banks, 1972, article 329 Act," statement on proposed legislation 429 Economic Stabilization Act, statements Report of National Commission, statement 420 on extension 81, 280 Consumer instalment loans, article on rates 641 Edmonson, Nathan, article 564 Coombs, Charles A., reports on Treasury and Federal Electronic funds transfers 608, 874 Reserve foreign exchange operations 142, 506, 622, 871 Energy supplies and uses, staff economic study 847 Corporate external financing, recent patterns, article .. 837 Engstrom, Keith D., Director, Division of Personnel Corporations, large manufacturing, new series 731 Administration, appointment 606 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 114 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Pages Pages Euro-dollar borrowings and foreign branch loans to U.S. Financing, article on recent patterns of corporate external residents by member banks, amendment of Regula- financing 837 tions D and M concerning reserves Fiscal policy, Federal, 1965-72, article 383 376, 377, 445, 447 Foreign banking and financing corporations, interpretation 104, 179, 449, 541 Federal Advisory Council A-100 Foreign banking study, Board announcement of review 123 Federal fiscal policy, 1965-72, article 383 Foreign branches of member banks: Federal Open Market Committee: Assets and liabilities 710 Appointments 548 Reserve requirements, amendment, Regulations D and Foreign exchange operations, reports 142, 506, 622, 871 M 445, 447 Members and staff A-100 Foreign credit restraint program guidelines: Minutes, 1967, availability 379 Amendments 607 Open market operations in 1972, article 405 Interpretations 123, 378, 832 Policy actions 13,87,286, 345 Revised, publication 123 435, 513, 574, 665, 739, 804, 884 Foreign currency arrangements (See "Swap" arrange- Regulation and rules, amendments 99, 298, 449 ments) "Swap" arrangements 548 Foreign exchange: Federal Reserve Act, statement on proposed amendments 734 Markets, statements on recent Federal Reserve and Treasury reports, foreign exchange developments 425, 508, 879 operations 142, 506, 622, 871 Operations, Treasury and Federal Reserve, Federal Reserve Banks: reports 142, 506, 622, 871 Branches (See Branch banks) Foreign operations of member banks, policy statement Chairmen and Deputy Chairmen 37, A-101 on availability of information to facilitate supervision, Cleveland Reserve Bank, transfer of part of territory interpretation 449, 541 to Cincinnati and Pittsburgh Branches 549 Foster, Joseph B., director, Detroit Branch, appointment 47 Delegation by Board of certain authority to, amend- Franco, Michael J., director, Jacksonville Branch, apment of rules 103, 298, 355 pointment 46 Directors (See Directors) Franklin, William H., Chairman, Chicago, designation 41 Discount rates (See Interest rates) Earnings and expenses 35 Garwood, Griffith L., Adviser, Division of Supervision Extensions of credit, revisions of Regulation A 313, 353 and Regulation, appointment 240 Federal Open Market Committee, amendment of regu- Gehman, Clayton, staff economic study 847 lation and rules relating to open market operations 99 Gold transactions, statement on termination of official Lending functions, a history, new publication by agreement 831 Howard H. Hackley 923 Goodfellow, Harry S., director, Seattle Branch, appoint- Presidents and First Vice Presidents: ment 48 Black, Robert P., President, Richmond, appoint- Gramley, Lyle E., Deputy Director, Division of Research ment 606 and Statistics, appointment 831 Heflin, Aubrey N., President, Richmond, death . 35 Grymes, Douglas, director, Pittsburgh Branch, appoint- Latham, Earle O., First Vice President, Boston, ment 40 retirement 375 Guy, Edward G., Deputy General Counsel, Federal Open List A-101 Market Committee, appointment 548 Mcintosh, James A., First Vice President, Boston, appointment 375 Security devices, minimum, and procedures, revision Hackley, Howard H.: of Regulation P 746, 777 Assistant to the Board, retirement 375 U.S. Govt, obligations, authority to purchase directly Lending Functions of the Federal Reserve Banks: A from Treasury, statement on proposed extension.. 734 History 923 Federal Reserve notes, interest paid to Treasury 35 Halley, Harry J., Assistant Controller, resignation .... 313 Federal Reserve System (See also Board of Governors): Halverson, Jerry A., director, Pittsburgh Branch, ap- Admissions of State banks to membership 125, 314 pointment 46 380, 479, 549, 609, 710, 777, 834, 923 Handler, Ruth, director, Los Angeles Branch, Auditing, statement on proposed legislation 734 resignation 606 Check clearing and collection, statement on proposed Harrison, C. Bennett, director, Memphis Branch, aplegislation affecting 799 pointment 47 Construction and renovation of branch bank buildings, Hart, John J., Special Assistant to the Board, appointstatement on proposed legislation to increase ceiling ment 606 on expenditures 734 Hassler, John H., Class A director, Philadelphia, elec- Labor Relations Panel, change in membership 240 tion 43 Objectives and responsibilities, excerpt from address Hayes, Alfred, Steering committee member for foreign of Chairman Burns 655 banking study, announcement 123 Payrolls, joint experiment with Air Force and Treasury Heflin, Aubrey N., President, Federal Reserve Bank of to automate Govt, payrolls, and statement concern- Richmond, death 35 ing electronic funds transfers 608, 874 Henry, George B., Associate Adviser, Division of Inter- "Swap" arrangements 548 national Finance, appointment 709 Feldberg, Chester B., Assistant Secretary and subsequent Herrick, Thomas W., Class B director, Dallas, election 44 Secretary of the Board, appointments 240, 375 Hersey, A. B., Senior Adviser, Division of International Fieleke, Norman S., Assistant Adviser, Division of In- Finance, retirement 478 ternational Finance, temporary appointment 709 Holland, Robert C.: Finance bills, reserve requirements against amendment Financial Institutions Act of 1973, statement on and interpretation of Regulation D 375-77, proposed legislation 799 523, 549, 581, 675, 709, 921 Member of Board of Governors, appointment 478 Financial developments, quarterly reports Holley, Jeanne L., director, Memphis Branch, appointtoCongress 51, 317, 551, 779 ment 41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 A 115 Pages Pages Holmes, Alan R., article 405 Jackson, Jack B., Class B director, New York, election 43 Housing: Jenkins, George W., Class B director, Atlanta, election 44 Mortgage, construction, and real estate markets, Johnson, Edwin J., Assistant to the Board, retirement 478 article 481 Junz, Helen B., Associate Adviser, Division of Interna- Mortgage credit and housing markets, statements .. 658 tional Finance, appointment 709 Staff study 36 Hull, David, article 641 Kelleher, Joseph E., Assistant to the Board, appoint- Income and expenses (See Earnings and expenses) ment, and retirement 35, 478 Industrial production: Kichline, James L., article 336 Board release replacing National Summary of Business Kiley, John N., Jr., Associate Director, Division of Conditions ... 479, 480, 550, 610, 711, 778, 835, 924 Federal Reserve Bank Operations, retirement 478 Combination of releases 609 Killefer, Tom, director, Detroit Branch, appointment.. 41 Expansion, article 611 Kreimann, Walter W., Director, Division of Administra- Interest on deposits: tive Services, appointment 35 Financial Institutions Act of 1973, statement on Kudlinski, James R., Assistant Director, Division of proposed legislation affecting 799 Federal Reserve Bank Operations, appointment 606 Negotiable orders of withdrawal (NOW's) against interest-bearing savings accounts, statement and amendment of Regulation Q permitting such accounts in member banks in Massachusetts and New Labor Relations Panel, Federal Reserve System, change 240 Hampshire 276, 921 Ladd, Ernest, F., Jr., director, New Orleans Branch, Nondeposit borrowings of member banks, meaning of appointment 47 "bank" as used in exemption from Regulation Q, Latham, Earle O., First Vice President, Boston, retireinterpretation 524 ment 375 Time and savings deposits, maximum permissible Laub, P. Michael, article 336 rates: Lawrence, John, Deputy Chairman, Dallas, appoint- Flexible authority for Federal supervisory agencies ment 42 to set, statement on extension 276 Lawrence, Robert J., Associate Adviser, Division of Increase, amendment of Research and Statistics, appointment 478 Regulation Q 521, 547, 582, 608 Legislation: Time deposits: Auditing of Federal Reserve by General Accounting Payment before maturity, amendment of Regulation Office, statement on proposed legislation 734 Q 521,547,581,607,675,709, 759 Budget control, statement on proposed congressional Single maturity, $1,000 or more (but less than review 171 $100,000) with maturity of 4 years or more, Consumer finance, statement on proposed legislation 429 suspension of rate ceiling, limit on amount issued, Economic Stabilization Act, statements on proposed and new rate ceiling, amendment of Regulation extension 81, 280 Q 521,547,582,608, 811 Federal Reserve System expenditures for construction Single maturity, $100,000 or more with maturity of and renovation of branch bank buildings, statement 90 days or more, suspension of rate ceiling, on proposed legislation to increase ceiling 734 amendment of Regulation Q 375-76, 377, 447, 547 Financial Institutions Act of 1973, statement on Interest rates (See also Interest on deposits): proposed legislation 799 Corporate bonds, article on yields 336 Interest or dividend rates payable on time deposits of Federal Reserve Banks, increases 35, 240 less than $100,000 with maturities of 4 years or 377, 478, 548, 606 more, limitation pursuant to P.L. 93-123 81 1 Interpretations: Interest rate ceilings on deposits, flexible authority for Acceptances made by State member banks, amount Federal supervisory authorities to set maximum, limitations 450 statement on proposed extension 276 Bank holding companies, nonbanking activities 833, 892 Negotiable orders of withdrawal (NOW's), statement Foreign credit restraint program guidelines 123, 378, 832 on proposed legislation, and amendment of Regula- Foreign operations of member banks, statement of tion Q 276 Board policy on availability of information to facili- Par Value Modification Act of 1972, statements on tate supervision 449, 541 proposed amendment 168, 176 Insurance premium funding programs, independent U.S. Govt, obligations, authority of Reserve Banks to broker/dealers arranging credit in connection with purchase directly from Treasury, statement on sale of 358 proposed extension 734 International arbitrage joint account incidental to se- Loan commitments, letter sent to certain State member curities business abroad 179 banks by Board of Governors 313 Nondeposit borrowings of member banks, meaning of Loans (See also Credit): "bank" as used in exemption from Regulation Q 524 Bank lending practices, 1972, article on changes ... 501 Options, put and call, and combination 525 Commercial bank loans and investments series, re- Options, treatment of simultaneous long and short vision 831 positions in margin account 358 Consumer instalment, article on rates 641 Prepaid finance charges; add-ons and discounts 676 Financial Institutions Act of 1973, statement on Reserves against commercial paper of member banks proposed legislation affecting 799 and their affiliates and proper marginal reserve re- Stocks and bonds (See Stock market credit) quirements 523 Lucero, Edward R., director, Denver Branch, appoint- Same-day substitution rule for margin securities and ment 41 exchange-listed convertible bonds 524 Lumpkin, John H., Class A,director, Richmond, elec- Special purpose leasing corporations 104 tion 43 Truth in lending (Regulation Z) 359, 526 Lyons, James E., director, Jacksonville Branch, appoint- Investments (See Loans) ment 40 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Pages Pages Mcintosh, James A., Director of Division of Personnel Nesbitt, Donald R., director, Buffalo Branch, appoint- Administration, resignation, and appointment as First ment 40 Vice President, Boston 375 Nicoll, John, Assistant General Counsel of Board and MacLaury, Bruce K., Steering committee member for of Federal Open Market Committee, appointments foreign banking study, announcement 123 240, 548 McPherson, Rene C., Class B director, Cleveland, elect- Nissen, Anton, article 61 ion 43 Nonmember banks, Board action regarding special mar- McWhirter, E. Maurice, Associate Director, Division of ginal reserves on large certificates of deposit held by 921 Federal Reserve Bank Operations, appointment 606 Mallinson, Eugenie, article 731 O'Connell, Thomas J., General Counsel, Federal Open Margin account, treatment of simultaneous long and short Market Committee, appointment 548 positions in, with respect to options, interpretation.. 358 Oehmann, Andrew F., Special Assistant to General Margin requirements: Counsel, appointment 240 Delegation of authority, amendment of rules regarding 449 Oliver, John T., director, Birmingham Branch, appoint- Insurance premium funding programs, independent ment 46 broker/dealers arranging credit in connection with sale Operations subsidiaries of member banks, interpretation 523 of, interpretation 358 Over-the-counter securities (See Stock market credit) Options, put and call and/or combinations, amendment Owen, Edward F., director, Omaha Branch, appointof Regulations G, T, and U, and interpretation of ment 42 Regulations T and U 447, 525 Partee, J. Charles, Managing Director for Research and Options, treatment of simultaneous long and short Economic Policy, appointment 831 positions in, interpretation 358 Over-the-counter margin stocks list, changes 380 Payrolls: Same-day substitution rule for margin securities and Electronic funds transfers, statement 874 exchange-listed convertible bonds, interpretations ... 524 U.S. Govt., joint experiment to automate 608 Mayer, Oscar G., Class B director, Chicago, election 44 Person, Robert T., Deputy Chairman, Kansas City, Melnicoff, David C., Managing Director for Operations appointment , 41 and Supervision, appointment 831 Peters, Bookman, director, Houston Branch, appoint- Member banks (See also National banks): ment 48 Branches (See Branch banks) Phillips, James E., Class A director, San Francisco, Foreign operations, policy statement on availability of election 45 information to facilitate supervision, interpreta- Pickering, Margaret H., article 731 tion 449, 541 Pierce, James, Associate Director, Division of Research Income and expenses, 1972, article 329 and Statistics, appointment 831 Reserve requirements (See Reserve requirements) Pierce, W. M., director, Little Rock Branch, appoint- Reserves and deposits, revision of series 61 ment 41 State member banks (See State member banks) Plotkin, Robert S., Assistant General Counsel, appoint- Milliken, Frank R., Class C director and Deputy Chairment 240 man, New York, appointment 40 Policy actions, Federal Open Market Committee.... 13, 87, Minami, Warren N., Assistant Director, Division of Data 286, 345, 435, 513, 574, 665, 739, 804, 884 Processing, appointment 606 Presidents of Federal Reserve Banks: Mitchell, George W.: Black, Robert P., Richmond, appointment 606 Electronic funds transfers, statement 874 Heflin, Aubrey N., Richmond, death 35 Federal Reserve Act, proposed amendments, state- Price developments, recent, article 129 ment 734 Pruitt, Eleanor M., article 257 Interest rate ceilings on deposits, flexible authority for Publications of Board of Governors: Federal supervisory authorities to set maximum, In 1973: statement on proposed extension 276 Annual Report, 1972 380 Negotiable orders of withdrawal (NOW's), statement 276 Banking data on Reports of Condition and Reports Steering committee member for foreign banking study, of Income and Dividends, availability on tapes 380 announcement 123 Federal Reserve Staff Study: Ways to Moderate Vice Chairman of Board of Governors, designation. 375 Fluctuations in Housing Construction 36 Money stock measures, revision of series 61 Industrial production statistical release, combination Money supply in conduct of monetary policy, letter of of releases 609 Chairman Burns to Senator Proxmire 791 Lending Functions of the Federal Reserve Banks: Morales, Pete, Jr., director, San Antonio Branch, ap- A History, by Howard H. Hackley 923 ment 42 Monthly Chart Book, revision 832 Mortgage markets (See Housing) Voluntary Foreign Credit Restraint Guidelines, Mutual fund shares, credit on shares and insurance, revised 123 interpretation 358 List of available publications A-102 Puckett, Richard H., article 501 National banks: Financial Institutions Act of 1973, statement on Real estate (See Housing) proposed legislation affecting 799 Record of policy actions of Federal Open Market Com- Foreign activities of member banks: mittee 13, 87, 286, 345, 435, 513 Reserve requirements, amendment of Regulations D 574, 665, 739, 804, 884 and M 445, 447 Regulations, Board of Governors: Policy statement on availability of information to A, Advances and Discounts by Federal Reserve Banks: facilitate supervision, interpretation 449, 541 Revisions 313, 353 National summary of business conditions (See also In- D, Reserves of Member Banks: dustrial production) 49, 126, 241, 315, 381, 479 Bank credit actions of Board, announcements 375-77, Negotiable orders of withdrawal (NOW's), 276, 921 548, 549, 709, 921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 A 117 Pages Pages Regulations, Board of Governors—Continued Regulations, Board of Governors—Continued D, Reserves of Member Banks—Cont. T, Credit by Brokers and Dealers—Cont. Commercial paper issued by affiliate of member insurance premium funding programs, independent bank, amendments and interpretation ...375-77, 523, broker/dealers arranging credit in connection with 549, 581, 675, 709, 921 sale of, interpretation 358 Demand deposits, gross, definition, amendment .. 892 Options, put and call, and/or combination, loan Demand deposits, net, above first $2 million, in- value, amendments and interpretations 447, 525 crease, amendment 521, 548 Options, treatment of simultaneous long and short Euro-dollar borrowings, reduction, positions in margin account with respect to, inamendment 375-77, 445 terpretation 358 Finance bills not eligible for discount, requirements Same-day substitution rule for margin securities and against outstanding bills, amendments and inter- exchange-listed convertible bonds, interpretations 524 pretation .... 375-77, 523, 549, 581, 675, 709, 921 Securities credit transactions, amendment regarding Marginal reserve requirements against certain time special cash account 19 deposits and application to certain deposits form- U, Credit by Banks for the Purpose of Purchasing or erly exempt, establishment, increase, and re- Carrying Margin Stocks: duction, amendments and interpretation 375-77, Delegation of authority, amendment of rules re- 445, 523, 549, 581, 675, 709, 921 garding 449 Delegation of authority, amendment of rules ....103, 298, Options, put and call, and/or combination, loan 355,449, 811 value, and definition of stock, amendments and Federal Open Market Committee, amendment of regula- interpretation 447, 525 tion and rules 99 X, Rules Governing Borrowers Who Obtain Securities G, Securities Credit by Persons Other Than Banks, Credit: Brokers, or Dealers: Delegation of authority, amendment of rules re- Delegation of authority, amendment of rules re- garding 449 garding 449 Y, Bank Holding Companies: Extension of credit under, amendment 746 Nonbanking activities: Options, put and call, or combination, loan value, Armored car services, no action taken 833 amendment 447 Courier service business, amendment, interpreta- J, Collection of Checks and Other Items by Federal tion and statement 833, 892 Reserve Banks: Underwriting credit life insurance and credit acci- Electronic funds transfers, proposal for revision to dent and health insurance directly related to accommodate, statement 874 extensions of credit, amendment 19 K, Corporations Engaged in Foreign Banking and Z, Truth in Lending: Financing Under the Federal Reserve Act: Amendments 522,549, 582 International arbitrage joint account incidental to Interpretations 359, 526, 676 securities business abroad, interpretation 179 Reichel, John, director, Helena Branch, appointment.. 47 Policy statement on availability of information to Reserve requirements (See also Reserves): facilitate supervision, interpretation 449, 541 Financial Institutions Act of 1973, statement on Special-purpose leasing corporations, interpretation 104 proposed legislation affecting 799 M, Foreign Activities of National Banks: Member banks: Policy statement on availability of information to Bank credit actions of Board, announcements 375-77, facilitate supervision, interpretation 449, 541 548, 549, 709, 921 Reserve requirements, amendment .445, 447 Commercial paper issued by affiliate of, amendment P, Minimum Security Devices and Procedures for and interpretation of Regulation D 375-77, 523, Federal Reserve Banks and State Member Banks: 549,581,675, 709 Clarification of standards, revision 746, 777 Demand deposits, gross, definition, amendment of Q, Interest on Deposits: Regulation D 892 Negotiable orders of withdrawal (NOW's) against Demand deposits, net, above first $2 million, ininterest-bearing savings accounts, amendment per- crease, amendment of Regulation D 521, 548 mitting such accounts in member banks in Massa- Euro-dollar borrowings, reduction, amendment of chusetts and New Hampshire 921 Regulation D 375-77, 445 Nondeposit borrowings of member banks, meaning Finance bills not eligible for discount, requirements of "bank" as used in exemption from regulation, against outstanding bills, amendment and interinterpretation 524 pretation of Regulation D 375-77, 445, Time and savings deposits, maximum permissible 523, 549, 581, 675, 709, 921 rates, increase, amendments 521, 547, 582, 608 Marginal requirements against certain time deposits Time deposits: and application to certain deposits formerly ex- Payment before maturity, amendments 521, 547 empt, establishment, increase, and reduction, 581, 607, 675, 709, 749 amendment and interpretation of Regulation Single maturity, $1,000 or more (but less than D 375-77, $100,000) with maturity of 4 years or more, 445, 523, 549, 581, 675, 709, 921 suspension of rate ceiling, limit on amount National banks, foreign activities, amendment of issued, and new rate ceiling, amendments .. 521, Regulation M 445, 447 547,582,608, 811 Structure, address of Chairman Burns 339 Single maturity, $100,000 or more with maturity Reserves, member banks (See also Reserve requireof 90 days or more, suspension of rate ceiling, ments): amendment 375-76, 377, 447, 547 Revision of series 61 Rules of Organization and Rules of Procedure, Robertson, James L., Vice Chairman of Board of Goverrevisions 293, 295 nors, resignation 375 T, Credit by Brokers and Dealers: Rockefeller, David C., Class A director, New York, Delegation of authority, amendment of rules election 43 regarding 449 Rogers, Nat S., director, Houston Branch, appointment 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 118 FEDERAL RESERVE BULLETIN • DECEMBER 1973 Pages Pages Scanlon, Martha Strayhorn, articles 261, 493, 724 Stock Market Credit—Continued Securities (See also U.S. Govt, securities): Insurance premium funding programs, independent Eligibility for extensions of credit by Reserve Banks, broker/dealers arranging credit in connection with revision of Regulation A 313, 353 sale of, interpretation 358 Stocks and bonds (See Stock market credit) Options, put and call, and/or combination, loan value, Seiders, David, article 646 amendment of Regulations G, T, and U, and inter- Shepard, Horace A., Chairman, Cleveland, designation 40 pretation of Regulations T and U 447, 525 Shuchter, Claude. F., director, Buffalo Branch, appoint- Options, treatment of simultaneous long and short ment 46 positions in margin account with respect to in- Singletary, Otis A., Class C director, Cleveland, appoint- terpretation 358 ment 40 Over-the-counter margin stocks list, availability of list Smith, David M., Class A director, Minneapolis, election44 of changes 380 Smith, Tynan, Secretary of the Board, retirement 375 Same-day substitution rule for margin securities and Staff economic studies: exchange-listed convertible bonds, interpretations. 524 U.S. energy supplies and uses 847 Special cash account, amendment of Regulation T.. 19 Summaries 140, 327, 403, 562 Strayhorn, Martha (See Scanlon, Martha Strayhorn) State and local borrowing anticipations and realizations, "Swap" arrangements 548 article 257 State member banks: Acceptances by, amount limitations, interpretation .. 450 Tables (See list at bottom of p. A-3 for tables published Admissions to membership in Federal Reserve periodically; see guide at top of p. A-109 for index System 125, 314, 380, 479, 549, 609, to tables published monthly) 710, 777, 834, 923 Territories of districts and branches, transfer from Cleve- Loan commitments, letter sent by Board of land to Cincinnati and Pittsburgh Branches 549 Governors 313 Thomas, Alvin I., director, Houston Branch, appoint- Mergers (See Bank Merger Act) ment 42 Security devices, minimum, and procedures, revision Thrift institutions: of Regulation P 746, 111 Electronic funds transfers, statement 874 Statements to Congress (includes reports and letters): Financial Institutions Act of 1973, statement on Auditing of Federal Reserve by General Accounting proposed legislation affecting 799 Office, proposed legislation 734 Treasury and Federal Reserve reports, foreign exchange Consumer finance: operations 142, 506, 622, 871 Consumer protection warranties and Federal Trade Treasury Department, joint experiment with Air Force Commission improvements, and "Truth in Sav- and Federal Reserve to automate Govt, payrolls .... 608 ings Act," proposed legislation 429 Truth in lending (Regulation Z): Report of National Commission, comments con- Amendments 522,549, 582 cerning 420 Interpretations 359, 526, 676 Economic Stabilization Act, proposed extension.. 81, 280 Tuttle, Baldwin B., Assistant General Counsel, appoint- Economy, condition 164, 567 ment 606 Electronic funds transfers 874 Federal budget, congressional review and control, proposed legislation 171 U.S. balance of payments: Federal Reserve System expenditures for construction Articles 243, 713 and renovation of branch bank buildings, proposed Foreign credit restraint program (See Foreign credit increase in ceiling 734 restraint program) Financial developments, quarterly reports to Congress: Statements 425,508, 879 Q-4, 1972 51 U.S. Govt, securities, authority of Reserve Banks to Q-l, Q-2, and Q-3, 1973 317, 551, 779 purchase directly from Treasury, statement on Financial Institutions Act of 1973, proposed legislation proposed extension 734 affecting loan and investment powers of commercial banks and thrift institutions, interest ceilings, deposit and check powers, and reserve requirements 799 Van Sinderen, Alfred W., Class B director, Boston, Foreign exchange markets and U.S. balance of payelection 43 ments, recent developments 425, 508, 879 Vaughan, Joseph R., director, Los Angeles Branch, ap- Interest rate ceilings on deposits, flexible authority for pointment 606 Federal supervisory authorities to set maximum, Vinson, Thomas G., director, Little Rock Branch, approposed extension 276 pointment 47 Money supply in conduct of monetary policy 791 Voluntary foreign credit restraint program f. .123, 378, Mortgage credit and housing markets 658 607, 832 Negotiable orders of withdrawal (NOW's) 276 Voss, Tom G., director, Louisville Branch, appoint- Par Value Modification Act of 1972, proposed ment 47 amendment 168, 176 U.S. Govt, obligations, authority of Reserve Banks to purchase directly from Treasury, proposed extension 734 Stewart, Robert H., Ill, Class A director, Dallas, elec- Wait, Newman E., Jr., Class A director, New York, tion 44 election 43 Stock market credit: Wasson, Field, director, Little Rock Branch, appoint- Corporate bonds, yields on recently offered bonds, ment 47 article 336 Weigel, Wm. E., Class A director, St. Louis, election 44 Delegation of authority, amendment of rules regard- Weir, Osby L., Class B director, Richmond, election 43 ing 449 Whitwam, Robert C., director, Seattle Branch, appoint- Extension of credit under Regulation G, amendment 746 ment 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 59 A 119 Pages Pages Wiles, William W., Assistant Director, Division of Woodard, W. Bryan, director, Nashville Branch, ap- Supervision and Regulation, appointment 478 pointment 46 Wood, Ralph C., Advisor, Division of International Finance, retirement 478 Yarnall, Sam I., Class A director, Atlanta, election .. 44 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^, Detroit/ 1 Chicago j saSS® Omafia.* jOtnctvrtajU Kansas City^ ;t.Louis ^fuirCotul Vd Oklahoma City '.ittie $pck i Dallas Jiouston portion* >anAntvnio< Miami 'Drawn byTZM Qafvin, Cart (o THE FEDERAL RESERVE SYSTEM g) A 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 Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis