Federal Reserve Bulletin, 1974-01

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'inade 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 the two-tone reproduction of the photograph, the gray color is 'printed as a combined "line conversion" with a light-value halftone and the orange is overprinted with a darker-value halftone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 1 • VOLUME 60 • JANUARY 1974 CONTENTS 1 The Economy in 1973 15 Balance of Payments—Revised Guidelines for Banks and Nonbank Financial Institutions 26 Record of Policy Actions of the Federal Open Market Committee 33 Law Department 63 Announcements 67 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 105 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL J. Charles Partee Joseph R. Coyne Robert Solomon COMMITTEE 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

The Economy in 1973 The economy in 1973 was subject to exceptional strains, including shortages and capacity limitations on production, heavy inflationary pressures, and finally, late in the year, the impact of an energy shortage. To an unusual degree these problems were aggravated by international economic forces. The year started on a very strong note, but activity thereafter slowed abruptly from the unsustainably high first-quarter pace; thus by the fourth quarter both real gross national product and industrial production were rising at only minimal rates. The increase in real GNP for the four quarters of 1973 averaged about 4 per cent—in line with the long-run growth potential, but well below the previous year's performance. Strength early in the year reflected a broad range of forces—impressive gains in consumer demand (especially for durable goods) and in business fixed investment, significant improvement in the Nation's trade balance, and some further growth in residential construction activity. Capital outlays continued to rise at a brisk pace throughout the year. Net exports of goods and services CHANGES IN GNP increased dramatically, becoming strongly positive in the second half as earlier devaluations of the dollar and the more rapid price CURRENT increases abroad made U.S. goods more competitive at a time of rapid expansion in world demands. But increasing shortages and capacity constraints were important in curbing the growth of output 20 during the spring and summer, and a more restrictive credit market operated to reduce housing starts and thereby to reverse the sharp rise in residential construction activity after midyear. Growth in consumer demands also weakened after the exceptional first-quarter 1 REAL surge—mainly due to a leveling-off of auto sales at a high rate, but also reflecting in part the erosion of real income gains by inflation. For much of 1973, basic materials-producing industries were Dept. of Commerce data, seasonally operating at rates higher than at any other time in the postadjusted annual rates. "Real" is in terms of 1958 dollars. war period. Shortages appear to have played a significant part in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 FEDERAL RESERVE BULLETIN • JANUARY 1974 curbing inventory investment, and such investment remained quite small until near the year-end. Even the realization of business plans to spend for new capital goods appears to have been delayed somewhat by the increasingly limited availability of such basic materials as steel, lumber, and petroleum, for which there was strong worldwide demand. By year-end a growing awareness of the seriousness of fuel shortages had affected expectations and was beginning to affect demands and activity directly. The decline in auto sales that had begun in early autumn accelerated as buyer preferences shifted from full-size cars to compacts—for which production capacity was too small to meet growing consumer demands. Late in the year there were announcements of curtailed activity and layoffs in auto plants and related activities and in air transport. Employment continued to move up vigorously throughout most of 1973 despite the slowdown in real growth, and the year witnessed a significant improvement in the labor market. Although the labor force rose substantially, the unemployment rate was cut to a 3^2-year low of 4.5 per cent by October. In the closing months of the year, however, labor demand weakened, and the unemployment rate began to rise again. Wages and the cost of fringe benefits increased somewhat faster than in 1972, but they rose less rapidly than consumer prices and real spendable earnings for nonfarm workers declined. Meanwhile, productivity gains slackened, reflecting in part the slowing in real growth, and unit labor costs increased much more sharply than the year before. There were a number of other factors, however, that played an even more important part in accelerating price increases during 1973. Food prices began rising strongly early in the year as a result of a reduction in per capita meat supplies and increases in grain exports, and they continued to move up rapidly in subsequent months. Strong international demands for machinery and industrial CHART 1 PRODUCTION growth slows; high rates of CAPACITY UTILIZATION and strong EXPORT demands keep pressure on PRICES 7.5 5.0 2.5 "Industrial production" and "Capacity use," Federal Reserve data: "Net exports" of goods and services (GNP basis) and "Prices" (the gross private product fixed-weight price index), Dept. of Commerce data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 3 materials, and the easing in mid-January of the relatively strict Phase II controls, contributed to the substantial rise in other prices. A freeze at midyear retarded the rise in prices somewhat. But nonfood prices increased more rapidly after mid-August when Phase IV controls replaced the freeze. In late 1973 an extraordinarily sharp increase in all fuel prices—especially pronounced for petroleum products—was superimposed on already widespread inflationary pressures. BUSINESS FIXED Sustained, strong advances in capital spending continued to provide INVESTMENT a major source of support for economic expansion in 1973. Business fixed investment increased 15 per cent, following a vigorous upswing in 1972. In real terms such outlays rose about 10 per cent. Moreover, had it not been for materials shortages, caused in part by increased demand from abroad, capital spending probably would have risen further. Manufacturers were especially hard hit by an inability to fulfill their demands for capital goods; as delivery times lengthened and unfilled orders increased sharply, manufacturers tended to spend less than their plans had indicated. CHART 2 BUSINESS INVESTMENT continues strong "Business fixed investment,'* Dept. of Commerce data, seasonally adjusted annual rates. "Real" is in terms of 1958 dollars. "Capacity," Federal Reserve data. Although the current investment boom has resulted from a variety of factors, a significant source of the expansion last year was the approach to capacity constraints, after several years of relatively slow growth in capacity of key industries. This was particularly true of the major materials industries such as steel, petroleum, and paper. Producers of major materials have been very hard pressed to satisfy the expanding demands of their customers, and in 1973 their operating rates climbed to record levels. In addition, a sound corporate cash flow position, a continued response to the investment tax credit, and the dynamics of inflationary expectations all continued to provide stimuli for gains in business fixed investment during 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 FEDERAL RESERVE BULLETIN • JANUARY 1974 Increases in capital expenditures were evenly balanced between equipment and construction; each component of investment recorded an increase of about 15 per cent over its 1972 level. Although replacement needs required approximately the same amount of funds as net expansion, many manufacturers were forced by environmental controls to modernize antiquated production facilities. Major materials producers, because of their particular technological requirements, had to bear a proportionately larger share of this responsibility. During 1973 plant and equipment expenditures in manufacturing industries rose much faster than in the nonmanufacturing sector. This was in contrast to the pattern of 1972. In manufacturing, investment was particularly strong for primary metals, paper, and stone, clay, and glass. Aside from manufacturing, mining and public utilities registered the strongest increases. Toward year-end various plant and equipment spending surveys indicated further large increases in 1974, with manufacturers expected to continue the substantial advances made in 1973. Findings of the surveys are further buttressed by the expected shortage-induced carryover from 1973 of demands for capital goods into the first half of 1974. However, the surveys were conducted before the impact of the energy crisis could be fully evaluated. The production processes of many industries, particularly those of the shortage-plagued major materials producers, make intensive use of oil and petrochemical by-products. As a result, if the sizable investment gains being projected by the surveys are to be realized in 1974, the capital-goods-producing industries will have to make more efficient use of existing and alternative energy sources. Furthermore, as the year unfolds, revisions in plans would not be surprising as energy availability is clarified, allocation programs go into effect, and the response of the economy to energy problems is more fully appraised. RESIDENTIAL Outlays for private residential construction, which had advanced CONSTRUCTION steadily since early 1970, turned downward after the first quarter of 1973, reversing what had been a significant source of economic expansion. The decline reflected some slowing in demands in response to a substantial further rise in construction costs and— particularly after midyear—in financing costs as inflows into mortgage-lending institutions slowed, resulting in much less favorable interest-rate as well as nonrate terms on new mortgage commitments. Even so, outlays for the year were about 7 per cent higher in current dollars and down only slightly from the 1972 total in real terms. Private housing starts held at a seasonally adjusted annual rate of 2.4 million units in the first quarter, virtually matching the record pace of a year earlier and almost doubling the low in the first quarter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 5 RESIDENTIAL CONSTRUCTION of 1970. Starts declined rapidly during the last three quarters of 1973, reaching an annual rate of about 1.6 million units in the last quarter. However, they totaled somewhat more than 2 million units for the year compared to the 2.36 million units registered in 1972. Multifamily structures, including an increased number of condo- 3.0 miniums, continued to account for nearly 45 per cent of total 2.0 housing starts in 1973. Some of the emphasis on such structures 1.0 was in response to further advances in the cost of land and related Dept. of Commerce data, seasonally requirements. Unlike other recent years, nonsubsidized starts, adjusted annual rates. -Rear is which incIude the , er and more expensive units, increased in terms of 1958 dollars. ° r substantially in 1973 and accounted for more than 90 per cent of the over-all total. Subsidized starts—new commitments for which remained largely under a moratorium instituted early in the year— were reduced to the lowest level since 1968. Shipments of new mobile homes, which are not counted in residential construction outlays nor in housing starts and completions, also dropped appreciably during 1973 from a peak in the first quarter. Nevertheless, the annual total of such shipments at least matched the record 576,000 in 1972. Completions of new dwelling units, which lag starts, reached a new high estimated at just over 2 million units in 1973. The total fell short of potential,, however, in part because of shortages of some materials. As a result, while average vacancy rates for dwellings available for occupancy remained comparatively low, the overhang of units still under construction at the year-end continued above the advanced year-earlier level. Even though mortgage markets were beginning to ease somewhat during the fourth quarter, new commitments continued to be restrained, especially in States where usury ceilings remained well below the exceptionally high level of mortgage rates elsewhere. Moreover, apart from the large flow of completions still in prospect and questions about the availability of materials, uncertainties about heating facilities and adequacy of transportation that were stemming from the energy crisis were forcing a re-evaluation of future plans by lenders, builders, real estate investors, and potential homebuyers alike. CONSUMER OUTLAYS A slowing in consumer spending during 1973 was also an important AND INCOME factor in the deceleration of over-all activity. For the year as a whole, in current dollars, outlays by consumers for goods and services rose almost in line with the strong gain in disposable income and considerably sharper than in the previous year. But in real terms the increase in consumer spending was substantially smaller—about 2Vi per cent as compared with 7 per cent in 1972. After an unusually large surge in late 1972 and early 1973, real increases in spending moderated considerably in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 FEDERAL RESERVE BULLETIN • JANUARY 1974 second and third quarters, and toward the year-end they weakened further under the impact of reduced gains in aggregate real incomes and the fuel crisis, which affected in particular the sale of larger cars. The large increase in spending for both durable and nondurable goods in the first quarter was stimulated by strong gains in wage and salary income associated with the rapid expansion of employment and earnings, and also by the anticipation of unusually large refunds of personal income taxes. Disposable income increased a remarkable 13 per cent, annual rate, in the 6 months ending in March, and a change in withholding schedules in early 1972 resulted in an extra $7.5 billion refund in personal taxes in the first half of the year. This income growth apparently made consumers particularly willing to incur future liabilities, and there was a sharp increase in extensions of instalment credit. Continuation of the housing boom provided an impetus to sales of furniture and AUTO SALES appliances, which increased almost 30 per cent in the first quarter, and unit sales of new autos reached a record \2lA million, annual rate. Both domestic and foreign car sales were strong with some consumers buying foreign models in advance of anticipated price increases due to the dollar devaluation. The sharp increase in purchases of nondurable goods reflected in part an acceleration in food prices, but sales of other items such as apparel were even stronger. Wards Automotive Reports data. Seasonal adjustment by Federal Re- Exceptionally vigorous quarters such as the first are frequently serve. Domestic-type autos include U.S. sales of cars produced in Can- followed by slower growth because some needs have been tempoada. rarily satiated. This is very likely to be true when some purchases may have been in anticipation of rising prices. A moderation of demand at a high level in the next two quarters was therefore not surprising, particularly with a slowdown in the expansion of real disposable income. A lack of real growth in outlays for furniture and appliances probably also reflected to some extent the leveling-off in housing sales, and the demand for luxury items in the other durable goods category was adversely affected by the decline in the stock market. Real outlays for food were limited by sharply rising prices and reduced supplies of meat. Auto sales weakened slightly, but the annual rate was still a strong 11% million in the second and third quarters, possibly because some consumers bought in anticipation of expected higher prices and of anti-pollution controls announced for the next model year. The saving rate remained stable at a relatively low level during this period, ranging only between 5.7 and 5.9 per cent for the first three quarters. Consumer attitudes toward business conditions and personal financial situations had become more pessimistic during the year and appeared to be a significant factor in further weakening consumer demand in the late fall. With the additional awareness of the energy crisis and associated shortages, consumers reacted by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 7 CHART 3 Growth of PERSONAL SPENDING moderates •i PERSONAL ~ CONSUMPTION EXPENDITURES SAVING RATE Dept. of Commerce data; expenditures are seasonally adjusted annual rates. sharply curtailing further their purchases of automobiles and some other discretionary items at year-end. The personal saving rate rose sharply by more than a full percentage point to 6.9 per cent. INVENTORY INVESTMENT Inventory investment, which usually rises in a cyclical recovery, had shown little increase in 1972 and continued small until late in 1973. Indeed, in marked contrast to earlier postwar business cycles, inventory investment has made no significant contribution BUSINESS INVENTORIES/SALES to growth in the current economic expansion. As measured in the national income accounts, business inventories were accumulated at an average of only $4.6 billion, annual rate, in the first three quarters of 1973. Inventory/sales ratios continued to decline, reaching their lowest levels since early in Dept. of Commerce data. "Ratio," the Korean war. The low rate of nonfarm inventory accumulation end-of-period inventories to quarthroughout much of the year reflected in large part the growing terly average sales. Ratio for 1973 Q4 is November inventories to Oc- shortages of many major materials resulting from near-capacity tober-November average sales. production in basic industries and generally strong business sales. Stocks of finished goods were drawn down in the primary metals and chemicals industries in order to meet shipping schedules. In the fourth quarter business inventories grew at a much more rapid pace. This growth was due in part to a back-up in auto stocks as the drop in auto sales resulted in a substantial involuntary accumulation of large cars and in part from the generally sluggish demands of consumers for nondurable goods. Nonetheless, yearend inventory/sales ratios for total manufacturing and trade were still quite low by historical standards. FEDERAL GOVERNMENT During 1973 the Federal budget moved into balance on a nationalincome-accounts basis, whereas in 1972 it had registered a deficit of nearly $16 billion. This shift was the result both of curbs on expenditures and of increased revenues derived from rising incomes and prices. Receipts increased by more than $36 billion, a record for any calendar year. Corporate profits tax accruals contributed substan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN • JANUARY 1974 tially, increasing by about 30 per cent. Contributions for social insurance—about 25 per cent higher than in 1972—were the next largest revenue gainer; growth in such contributions reflected both higher tax rates and an increased wage base as well as appreciable gains in employment and payrolls. Personal tax receipts and indirect business taxes were only moderately higher. Federal purchases of goods and services—which enter directly into GNP—rose less than 3 per cent from 1972; this was under half the rise registered in the previous year and was well below the increase in the GNP deflator. National defense outlays were virtually unchanged from 1972, representing a considerable cutback in real terms and in their share of total GNP. The Federal work force experienced a small decline during the year as a result of large reductions in civilian employment in the Department of Defense. Federal nondefense purchases, which are relatively less important than defense spending, were held to a smaller increase than in 1972—due in large part to the agricultural sector, which registered large sales from grain and cotton inventories held by the Commodity Credit Corporation. Among other Federal expenditures, total grants-in-aid to State and local governments increased as a result of the rise in general revenue sharing. Other grant-in-aid payments declined, in striking contrast to a rapid pace of expansion in previous years. Somewhat lower farm support payments were responsible for a reduction in subsidy payments. But outlays for interest and other transfer payments grew rapidly, reflecting the sharply higher interest rates payable on the Federal debt and higher outlays for social security benefits and other transfer payments. CHART 4 FEDERAL BUDGET is in balance; STATE AND LOCAL PURCHASES are strong Dept. of Commerce national income and product data, seasonally adjusted annual rates. STATE AND LOCAL Purchases by State and local governments continued to be a strongly GOVERNMENT expansive force in 1973. Their total expenditures rose by approximately $20 billion, an increase of 13 per cent; in real terms they grew by 6.5 per cent. Employee compensation and purchases of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 9 goods and services accounted for the major portion of the total rise. State and local construction expenditures grew at an 8 per cent rate in 1973 but most of this gain can be attributed to higher prices. Average earnings of State and local government employees rose by 6 per cent, and the employment level was up by 400,000 compared with a 500,000 increase in the previous year. The more moderate rise in employment reflected a reduction in the number of people hired under the provisions of the Public Employment Act of 1971. During 1973, the State and local sector as a whole experienced a surplus of $11.0 billion. The fiscal position of State and local governments was improved substantially by general revenue sharing, which permitted a significant accumulation of financial assets and a substantial reduction in the amount of long-term borrowing in 1973. Revenue-sharing funds also were used for tax relief, and it is expected that this trend will continue in 1974, though expenditures of these funds will probably also increase. EXPORTS AND IMPORTS Both the balance of trade and the over-all balance of payments positions of the United States were dramatically transformed during 1973. Exports of goods and services rose by about 35 per cent from the previous year, while imports were up by slightly more than 20 per cent. As a result, the balance in goods and services shifted from a deficit of about $4% billion in 1972 to a surplus of about $5 billion in 1973. Merchandise trade alone shifted from a deficit of $7 billion in 1972 to a position of near balance. Several factors were responsible, including a sharp reduction in U.S. FOREIGN TRANSACTIONS foreign agricultural output in 1972, a strong economic expansion GOODS AND SERVICES abroad, and the effects of the declining value of the U.S. dollar that resulted in a significant reduction in the prices of American goods and services in terms of foreign currencies. The increase in agricultural exports was a particularly prominent element in the trade improvement last year, and accounted for about 40 per cent of the growth in total exports from 1972 to 1973. Such exports—mainly record shipments of wheat, feed grains, and soybeans, but also other commodities such as cotton, rice, and hides—nearly doubled in value. While the physical volume of Dept. of Commerce national income agricultural exports peaked in the first quarter, their dollar value and product data, seasonally adjusted continued to rise during the year as prices moved up. Nonagriculannual rates. tural exports rose sharply during the entire year, on the other hand, reflecting stronger demand conditions in foreign markets. In contrast, the physical volume of imports declined substantially after the first quarter—discouraged by the sharply higher import prices—although rising prices resulted in some further increase in aggregate value. The net export balance was further improved by the strong performance of the services sector, reflecting in large part increased receipts from investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN • JANUARY 1974 While foreign trade developments during the final quarter were affected by higher oil prices, exports continued to do well, resulting in a sizable trade surplus. However, the continued escalation of prices for petroleum products suggests a significantly weaker trade picture for 1974. THE LABOR MARKET Demand for labor remained generally strong throughout most of 1973, despite the slower growth of output after the first quarter. The unemployment rate averaged 4.7 per cent in the fourth quarter, down from 5.3 per cent a year earlier, and nonfarm payroll employment rose by 2% million over the four quarters of 1973, about the same increase as in the preceding year. The employment advance was led by a vigorous increase of three-fourths of a million in manufacturing jobs—returning the factory employment total to near the peak level reached in mid- 1969. Job gains were also strong in service-type industries. Manufacturing employment rose quite rapidly in the first half of the year, with gains concentrated in the metals and metal-using sector—those industries most affected by the strength of business investment and the high level of auto sales. But the pace of manufacturing employment growth slackened in the latter half of the year, and the factory workweek edged off slightly from the relatively high level reached earlier in 1973. Near year-end, energy shortages resulted in layoff announcements by a number of manufacturing and related industries and by many airlines. The expansion in total employment was accompanied by an acceleration in the growth of the labor force. The increase of 2.7 million over the year—compared with 2 million in 1972—was substantially faster than the normal growth estimated on the basis of long-term demographic and participation rate trends. There were large increases among teenagers and young adult women (20-24 CHART 5 LABOR FORCE and EMPLOYMENT grow rapidly; UNEMPLOYMENT declines Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 11 years) and an acceleration in growth among women 25-54 years, reflecting both population growth and a sharp rise in their participation rates. Employment gains about matched labor force increases in the first part of the year and unemployment remained near 5 per cent. It dropped to about 4% per cent at midyear where it stayed for several months. But after falling to AVi per cent in October, the unemployment rate turned up near year-end. Although the rate of increase in wages over the four quarters of 1973 was about the same as in 1972, the pace of earnings increases accelerated substantially after the first quarter. The hourly earnings index—the wage series that most closely approximates changes in wage rates—increased at a 7.2 per cent annual rate in the final three quarters of 1973 compared with 6.5 per cent for all of 1972. Nevertheless, the accelerating pace of price increases completely offset the purchasing power of gains in weekly take-home pay, and real spendable earnings at the end of 1973 were lower than they had been a year earlier. This suggests increased demands for improved cost-of-living clauses and other benefits during the heavily loaded 1974 collective bargaining schedule, which includes steel, aluminum, coal, and railroads. In January 1973 the mandatory wage stabilization program of Phase II was abolished, as was the Pay Board that administered the program, and was replaced by self-administered stabilization programs under the control of the Cost of Living Council. The suggested guidelines of the program remained the same as under Phase II—a limit of 5.5 per cent on increases in wages and salaries plus 0.7 per cent in certain qualified fringe benefits. But mandatory reporting of wage adjustments was made a requirement only for large firms and all pre-notification requirements were eliminated. Compensation per manhour, which includes the costs of fringe benefits and employers' contributions for social security in addition LABOR OUTPUT AND COST PRIVATE NONFARM ECONOMY to wages, accelerated from about a 7 per cent average rise during the four quarters of 1972 to about 8 per cent in 1973, boosted Compensation per manhour in part by a considerably larger increase in social security taxes. At the same time, there was a weaker rate of productivity growth as expansion of output slowed. Output per manhour in the first quarter of 1973 continued the rapid growth of 1972, rising at about a 5 per cent annual rate in the private nonfarm sector. However, there was little change in productivity until the fourth quarter when there was a decline. The speed-up in compensation increases, combined with the poorer productivity performance, resulted in a much larger rise in unit labor costs; in the private nonfarm sector, these costs rose at a 6 per cent annual rate in the first three quarters, and even faster in the fourth quarter, compared with a 2.5 per Dept. of Labor data, seasonally ad- cent rise in 1972. justed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN • JANUARY 1974 PRICES Inflation accelerated in 1973, fanned by a reduction in per capita food supplies, record exports of farm products, shortages of many basic materials, rising labor and other costs, and an energy crisis late in the year. In addition, the drop in the value of the dollar relative to other currencies and the high rates of activity in the industrial nations of the world raised import prices and stimulated exports. Relaxation of Phase II price and wage controls also added to price pressures early in the year. A broad measure of price developments, the fixed-weight index for the gross private product, rose more than 7 per cent in the year ending in the fourth quarter of 1973—more than double the rate in 1972. CHART 6 Wholesale prices rise sharply, particularly FOOD and FUEL Dept. of Labor data, seasonally adjusted. A surprisingly sharp and sustained price advance developed early in 1973. During the first few months meat prices rose dramatically as per capita output dropped. Although ceiling prices on meats were established at the end of March, food prices continued to rise. The price of nonfood commodities and services also accelerated sharply, with the result that the over-all consumer price index advanced at an 8 per cent annual rate in the first half of 1973—faster than the rapid rates in 1969 or 1970. Wholesale prices advanced even more rapidly—at a 22 per cent annual rate in the first half of 1973. Prices of farm products increased most rapidly as poor grain harvests outside the United States in 1972 led to a sharp rise in farm exports and to record price advances. But industrial prices also rose at an annual rate of more than 12 per cent. Record output levels in most industrialized countries stimulated demands for raw materials, and prices of these goods were also increased by devaluation of the dollar. Wholesale prices of finished goods (excluding foods) advanced at a 10 per cent annual rate—four times as fast as in 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE ECONOMY IN 1973 13 CHART 7 FOOD PRICE increases spur strong rise in consumer prices CONSUMER PRICES CONSUMER PRICES SERVICES NONFOOD COMMODITIES Dept. of Labor data, seasonally adjusted. In an effort to slow the surge in prices, a 60-day price freeze was imposed in mid-June. Most food-price ceilings, however, were removed after a month to minimize cutbacks in food production resulting from a cost squeeze on producers; thus processors and distributors were allowed a dollar-for-dollar pass-through of rising farm prices. With foreign demands and speculative activity adding to the effects of decontrol, prices of farm products shot up by about one-fourth between mid-July and mid-August. Although these prices dropped back in the second half of the year, they remained much higher than before the midyear climb. Consumers benefited very little from the drop in livestock prices as the spread between farm and grocery store prices widened appreciably. Moreover, other food prices moved up rapidly in the post-freeze relaxation, and the second-half rise in food prices at retail was almost as severe as in the first half of the year—about 20 per cent at an annual rate. Moreover, increases in service costs accelerated between June and December, with the result that the consumer price index advanced at an annual rate of about 10 per cent—somewhat faster than from January to June. Wholesale prices of industrial commodities also increased rapidly in Phase IV. Prices of materials continued to soar, and a large spread developed between controlled domestic prices and higher foreign prices of nonferrous metals and other commodities. In part to curb exports of scarce goods, a process of selective decontrol was begun, and by year-end prices of several basic commodities had been decontrolled. Prices of new autos were also decontrolled following an agreement by major producers to limit increases. In late 1973, fuel-price increases accelerated. When the freeze was lifted in August, a portion of domestic crude oil production— about one-fifth in the early months—was exempted from control, and this portion rapidly increased in price. Prices of imported crude and refined products soared even faster, especially after the Arab Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN • JANUARY 1974 states embargoed shipments of oil to the United States and reduced supplies to most of the rest of the world. Moreover, in early December, domestic producers of crude were granted a one-dollarper-barrel price rise on the less-than-half of the supplies still under control. Inflationary forces in 1974 are likely to continue strong—especially in view of the probable effects of the oil situation and continued high levels of grain prices. Distributors were permitted to raise prices of gasoline and fuel oil early in 1974 to compensate for reduced sales and other costs as well as for the rising price of petroleum products, and even larger increases are expected by March 1. Increases in gasoline and fuel costs alone may add 1 to 2 percentage points to the over-all rate of price rise this year. Continued selective decontrol may be needed to avoid further dislocations and this is likely to result in further general price increases, although reduced demand in some sectors may operate to moderate price rises as the year progresses. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Revised Guidelines For Banks and Nonbank Financial Institutions The Board of Governors has issued amendments the limits of the bank's available guideline ceilto its Voluntary Foreign Credit Restraint ing. In general, such loans are, and will at this (VFCR) guidelines that will increase foreign time remain, subject to the IET. lending and investment ceilings for banks and 3. U.S. agencies and branches of foreign other financial institutions subject to the pro- banks will have a ceiling of at least $10 million gram and eliminate differences in the degrees for making foreign loans and other investments of restraint on lending in developed countries. of types restrained under the program. The The announcement was made in conjunction present minimum ceiling is $1 million. with actions by the Treasury and Commerce 4. Agencies and branches will be able to Departments to change the Interest Equalization recalculate the "base net foreign position," Tax (IET) and the Foreign Direct Investment which determines the relationship between their Regulations. The three programs constitute a set foreign lending and foreign borrowing, by using of restraints on capital outflow that have been 96 per cent of their foreign liabilities for June part of an over-all Government program to help 30, 1973. They will thereby be allowed to the U.S. balance of payments. The Federal increase foreign assets, or to decrease foreign Reserve has administered the VFCR program liabilities, by approximately 4 per cent from since early 1965 at the request of the President. amounts determined by the previous formula. The VFCR amendments approved by the 5. The restraint against term loans by agen- Board, effective January 1, 1974, are: cies and branches to the developed countries of 1. The present ceiling for each commercial continental Western Europe will be dropped, as bank is increased to $10 million or to an amount it is being dropped for banks. 4 per cent above the ceiling in effect immedi- 6. The ceiling of each nonbank financial inately prior to the present revision. Heretofore, stitution (which includes, among others, insurceilings have ranged upward in size from ance companies, finance companies, and mutual $500,000, depending on the size of the bank funds) will be increased to an amount 5 per cent or on its historical record in foreign lending. above that in effect at the end of 1972 or to Banks without ceilings could hold foreign assets $2 million, whichever is higher. of types subject to restraint up to the lesser of 7. The request that nonbank financial institu- (a) $500,000 or (b) 2 per cent of their end-of- tions refrain from increasing their loans and 1970 total assets. The amendment raises the investments in the developed countries of conti- $500,000 minimum figure for banks with ceil- nental Western Europe beyond the amount held ings to $10 million. Banks previously without at the end of 1968 is eliminated. Any increase ceilings but adopting them under the amendment in such investments is left to compete for availwill be expected to observe the established able latitude with other foreign loans and inprinciple that the ceilings are for loans generated vestments under an institution's guideline ceildirectly by the "newcomer" bank and not for ing. The IET will continue to apply to some loans initiated by other U.S. banks. of these loans and investments. 2. The request that banks refrain from mak- 8. Periodic reports will continue to be filed ing nonexport loans with maturities of over 1 by all banking institutions with $500,000 or year to residents of the developed countries of more in foreign assets and by all nonbank ficontinental Western Europe is eliminated. Such nancial institutions with $500,000 or more in loans by a bank will be left to compete with foreign assets of types subject to restraint or loans to borrowers in other foreign areas within with $5 million or more of total foreign assets. 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN • JANUARY 1974 The VFCR guidelines, as amended, are reproduced in consolidated form below. I. General Purpose In order to help to strengthen the U.S. balance Within these restraints, they are asked to give of payments, U.S. financial institutions are priority to meeting the credit needs of developasked to restrain their foreign credit and invest- ing countries. ments, except credit that finances U.S. exports. II. Banks A. CEILINGS FOR N0NEXP0RT FINANC- takes the initiative to arrange credit that it ex- ING tends, (b) assumes the principal burden of judging the creditworthiness of the borrower, and 1. Basic Restraint on Nonexport Financ- (c) bears responsibility for the administrative ing details concerning the extension and the repay- A bank is requested not to hold claims on ment of the credit. foreigners or other foreign assets in excess of c. Before adopting a ceiling under this subits ceiling. paragraph, a bank should consult with the Federal Reserve Bank in the district in which it is 2. Banks Previously with Ceilings located to apprise itself of the guidelines and A bank that had a ceiling under the guidelines reporting requirements and to notify the Federal in force December 31, 1973 (hereinafter, "the Reserve Bank of the amount of its ceiling. previous guidelines"), shall have a ceiling equal to the greater of: 4. Sales of Foreign Assets a. 104 per cent of its ceiling under the pre- a. SALES WITHOUT RECOURSE. Banks vious guidelines, or are requested not to sell foreign assets that are b. $10 million. subject to the guideline ceilings, without recourse, to a U.S. resident other than a financial 3. Banks Previously without Ceilings institution participating in the Federal Reserve a. A bank that did not have a ceiling under Foreign Credit Restraint Program or other than the previous guidelines may adopt a ceiling a direct investor subject to the Foreign Direct equal to (a) 2 per cent of its total assets, as Investment Program administered by the of December 31, 1970, or (b) $10 million, Department of Commerce. whichever is the larger. A bank established b. SALES WITH RECOURSE. A bank that subsequent to December 31, 1973, may adopt sells a foreign asset that is subject to its ceiling, a ceiling equal to 2 per cent of its total assets, with recourse, to a U.S. resident should conmonth by month. A bank established between tinue to report that asset under its ceiling, unless December 31, 1970, and December 31, 1973, the U.S. resident is a financial institution parmay adopt a ceiling equal to 2 per cent of its ticipating in the Federal Reserve Foreign Credit total assets as of the end of the first year of Restraint Program or is a direct investor subject operation. to the Foreign Direct Investment Program adb. The purpose of making a ceiling available ministered by the Department of Commerce. to a bank that did not have one is to enable the bank to engage directly in foreign financing. 5. Foreign Borrowings The ceiling should not be used to purchase from In principle, the restraints under these guideother U.S. financial institutions loans that the lines are imposed on gross foreign assets, inlatter have already extended to foreigners. The cluding gross claims on foreigners. However, ceiling should be used only when the bank (a) certain liabilities to foreigners may be counted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 17 as offsets to foreign assets, provided that the million and if its foreign lending and investliabilities arise from borrowings abroad that ments otherwise correspond to the provisions of substitute for direct investment capital outflow the guidelines that U.S. banks are requested to from the United States. Such offsetting may be observe. done in the manner described below. b. A U.S. agency or branch of a foreign bank a. BANKS, BANK HOLDING COMPANIES, holding more than $10 million in foreign assets EDGE ACT CORPORATIONS, AND AGREE- of types subject to restraint ("covered assets") MENT CORPORATIONS. A bank, a bank should not incur a "net foreign position" holding company, an "Edge Act" Corporation, greater than its "base net foreign position," as or an "Agreement" Corporation may not count explained in "d" below. its borrowings from, or its other liabilities to, c. The "base net foreign position" is the foreigners as offsets to its claims on foreigners value resulting from subtracting from "covered and other foreign assets. assets," as of June 30, 1973, 96 per cent of b. DOMESTIC SUBSIDIARIES. A domesti- total liabilities to non-U.S. residents as of June cally chartered nonbank subsidiary (for ex- 30, 1973. However, for an agency or branch ample, a so-called Delaware subsidiary) of a that started operating after June 30, 1973, the bank holding company, of an Edge Act Cor- "base net foreign position" shall be zero. poration, or of an Agreement Corporation may d. An agency or branch with a "base net count the outstanding amount of its borrowings foreign position" that showed an excess of the from foreigners as offsets to its claims on for- respective liabilities over "covered assets" eigners and to its other foreign assets, provided should maintain at least an equal excess of total those borrowings are of an original maturity of foreign liabilities over "covered assets"; an 3 years or more. Such borrowings would include agency or branch with a "base net foreign debentures, promissory notes, or other debt ob- position" that showed an excess of "covered ligations of the domestic subsidiary to a for- assets" over the respective liabilities should not eigner. The amount of the offset at any time hold a greater excess of "covered assets" over would be equal to the amount of the outstand- total foreign liabilities. ings after deducting (i) any repayments of e. For the purpose of calculating liabilities principal and (ii) in the case of convertible debt under "a" through "d", residents of Puerto issues, any conversions. This offsetting princi- Rico, the Virgin Islands, and other territories ple may be used to reduce the value of foreign and possessions included in the definition of the assets of the subsidiary in computing the value United States for Treasury Foreign Exchange of foreign assets to be consolidated for reporting Reports should be treated as U.S. residents. purposes with those of the parent institution; any excess of outstanding borrowings of the subsid- B. EXCLUSIONS iary over foreign assets of the subsidiary may 1. Export Credits not be used to reduce the reportable value of a. BASIC EXEMPTION. Export credits, foreign assets of the parent institution. defined in Part IV-3, are exempted from re- 6. Total Assets straint under these guidelines. These include For the purpose of calculating the ceiling, credits of the type previously subject to General total assets are those shown in the Official and Export Term-Loan Ceilings. Banks should Report of Condition submitted to the relevant maintain adequate information and otherwise supervisory agency as of December 31, 1970. take all reasonable measures to provide assurance that credits meet the definition before 7. U.S. Agencies and Branches of treating them as exempted. Foreign Banks b. ACQUISITION OF PREVIOUS FOREIGN a. An agency or branch of a foreign bank EXPORT CREDITS. The purpose of the exempwill be acting in accordance with the spirit of tion for export credits is to ensure that, as of the guidelines if its holdings of foreign assets November 11, 1971, no restraint is applied to of types subject to restraint do not exceed $10 the granting of credit that will finance U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN • JANUARY 1974 exports. A bank should report under its ceiling mercial banks, which should follow the guideany outstanding loans that it purchases or lines for nonbank financial institutions in Part repurchases from a foreigner, including its own III), to their domestically chartered subsidiaries branch, if that loan financed U.S. exports at any level, to bank holding companies and shipped (or financed U.S. services performed their domestically chartered subsidiaries at any abroad) prior to November 11, 1971. level, except where those subsidiaries are covered by other U.S. capital restraint programs 2. Canada as noted in subparagraph 3b, and to U.S. agen- The extension of credit to residents of Canada cies and branches of foreign banks. or other acquisition of Canadian assets is exempted from restraint under these guidelines. 2. Edge Act and Agreement Corpora- 3. Securities of Certain International In- tions stitutions a. POLICY OF LIMITING AGGREGATE All direct obligations of international institu- CEILINGS. It is intended that the establishment tions of which the United States is a member of new Edge Act Corporations or Agreement are exempted from a bank's ceiling. Corporations not result in the expansion of aggregate ceilings under these guidelines. 4. Insurance and Guaranty Settlements b. ONE-BANK-OWNED CORPORAof OPIC TIONS. An Edge Act or Agreement Corporation A foreign asset acquired directly or through that is owned by one bank and that, under the purchase of a participation in a pool of foreign previous guidelines, had a ceiling separate from assets, provided the foreign asset or the partici- that of its parent bank may continue to have pation is covered by a payment guarantee issued a ceiling separate from that of its parent or may by the U.S. Overseas Private Investment Cor- combine its ceiling with that of its parent. poration (OPIC) under its insurance and guar- i) The ceiling to which it would be entianty claims settlement authority, is exempted tled if it did not combine would be calculated from an institution's ceiling. as under Section A-2 for the corporation as a separate entity. C. BANKS OVER CEILINGS ii) An Edge Act or Agreement Corporation that is owned by one bank and that was Banks are expected to observe their ceilings established after March 3, 1965, should share throughout the monthly reporting periods. the ceiling of its parent bank. Banks are not expected routinely to sell foreign c. MULTIBANK-OWNED CORPORAassets immediately prior to the reporting date TIONS. or otherwise engage in "window-dressing" aci) Separate ceilings. An Edge Act or tivities. Agreement Corporation that is owned by more A bank whose foreign assets are in excess than one bank or by a multibank holding company of its ceiling or otherwise conflict with these will have a ceiling separate from that of its parent restraints and that does not show improvement and from those of the banks in its parent holding will be expected periodically to discuss with the company. The corporation's ceiling is to be deter- Federal Reserve Bank in its district the steps mined in accordance with Section A-2 or, as it has taken or that it proposes to take to bring appropriate, A-3. the amount of its foreign assets into conformity ii) Transfer of parent's ceiling. To acquire with these guidelines. or to increase a ceiling, such an Edge Act or Agreement Corporation may receive from one or D. APPLICABILITY TO BANKS AND more of its parent banks (including banks of its BANK-RELATED FINANCIAL INSTITUparent holding company) a share of the ceilings TIONS of the parent or parents. Once transferred to the 1. General corporation, the ceiling should not be transferred The guidelines are applicable to all U.S. in whole or in part back to the parent or parents, banks (exclusive of trust departments of com- except to meet unforeseen and overriding devel- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 19 opments. If any such exceptional need for transfer that were consolidated before March 9, 1972, should arise, the corporation and its parent or in conformity with the guidelines may remain parents should consult in advance with the Federal consolidated. Reserve Banks in their respective districts. 4. Foreign Branches and Foreign Subd. DOMESTIC SUBSIDIARIES OF EDGE sidiaries of U.S. Banks and Banking Insti- ACT AND AGREEMENT CORPORATIONS. tutions The foreign assets of domestically chartered a. The guidelines are not intended to restrict subsidiaries of Edge Act and Agreement Corthe extension of foreign credit by foreign porations (net of foreign borrowings offset under branches, or foreign subsidiaries, of (i) U.S. Section A-5b, above) should be consolidated banks, (ii) Edge Act Corporations, or (iii) with the foreign assets of the parent corporation Agreement Corporations, except as the result of for the purposes of the guidelines. the restraints on banks, and on Edge and 3. Bank Holding Companies Agreement Corporations (and their domestic subsidiaries), with respect to foreign credit to, a. HOLDING COMPANIES AS BANKS. A or foreign investment in, such foreign branches bank holding company is to be treated as a bank or foreign subsidiaries. for the purpose of these guidelines. b. Claims of a bank's, or banking institub. HOLDING COMPANIES WITH ONE tion's, domestic offices on its foreign branches BANK. A holding company with one bank, and foreign subsidiaries (including permanent which bank subsidiary has a ceiling under these capital invested in, as well as balances due guidelines, together with that bank subsidiary from, such branches and subsidiaries) represent and any nonbank subsidiary should report on foreign assets subject to the guidelines. a consolidated basis. However, the ceiling is to be calculated on the basis of the ceiling of E. CONFORMITY WITH OBJECTIVES OF the bank subsidiary. Furthermore, to minimize GUIDELINES changes from earlier established procedures, any nonbank subsidiary that was reporting prior 1. Department of Commerce Program to December 1, 1969, to the Department of and Nonbank Financial Institution Guide- Commerce under the Foreign Direct Investment lines Program or to a Federal Reserve Bank under Banks should avoid making loans that would the nonbank financial institution part of the directly or indirectly enable borrowers to use guidelines should not report under these bank funds abroad in a manner inconsistent with the guidelines. Department of Commerce Foreign Direct Inc. HOLDING COMPANIES WITH MORE vestment Program or with the guidelines for THAN ONE BANK. A multibank holding com- nonbank financial institutions. pany should share the ceiling of one or more 2. Substitute Loans of its banks. Banks should not extend to U.S. resident d. CONSOLIDATION OF CEILINGS OF subsidiaries, or branches, of foreign companies BANK SUBSIDIARIES OF HOLDING COMloans that otherwise might have been made by PANIES. A bank subsidiary (including a bank, the banks to the foreign parent or other affiliate Edge Act Corporation, or Agreement Corporaof the company or that normally would have tion) of a bank holding company may elect to been obtained abroad. consolidate its ceiling with that of one or more of the holding company's other bank subsidi- 3. Management of Liquid Assets aries only if each bank subsidiary involved in A bank should not hold its own. funds abroad the contemplated consolidation had a ceiling in liquid form for short-term investment purunder the guidelines in effect prior to November poses whether such investments are payable in 11, 1971. Such election should be made known foreign currencies or in U.S. dollars. This is in advance to the respective Federal Reserve not intended to preclude its maintaining neces- Banks. Ceilings adopted under subsequent sary working balances held with its own foreign guidelines should not be consolidated. Ceilings branches or with foreign correspondents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN • JANUARY 1974 4. Transactions for Customers positions to which they would be entitled. Once While recognizing that it must follow a cus- consolidated, they should henceforth report as tomer's instruction, a bank should discourage a unit under the guidelines. customers from placing liquid funds outside the 6. Banks without Ceilings United States. A bank should not place with A bank that has not adopted a ceiling will a customer foreign obligations that, in the abbe acting in conformity with the objectives of sence of the guidelines, it would have acquired the guidelines (a) if its foreign assets of types or held for its own account. subject to restraint do not exceed the lesser of (i) $500,000 or (ii) 2 per cent of its end-of-1970 5. U.S. Branches and Agencies of total assets and (b) if those foreign assets are Foreign Banks otherwise in conformity with the guidelines, for Branches and agencies of foreign banks loexample, with the request against holding funds cated in the United States are requested to act abroad in liquid form except for necessary in accordance with the spirit of these guidelines working balances. and, as they may be requested from time to time, to consult with the Federal Reserve Bank F. REPORTING in the district in which they are located. A U.S. agency or branch of a foreign bank Each U.S. bank (whether or not it has a that holds $10 million or more of foreign assets ceiling), and each U.S. agency and branch of of types subject to restraint should make every a foreign bank, that on a reporting date had reasonable effort to ensure that its foreign assets $500,000 or more in foreign assets (whether or and foreign liabilities are kept throughout the not subject to restraint under the guidelines) monthly reporting periods, as well as on the should file a Monthly Report on Foreign Assets end-of-the month reporting dates, at levels con- (for U.S. Banks or for U.S. Agencies and sistent with its "base net foreign position." Branches of Foreign Banks, as appropriate) with Each agency and branch of a foreign bank may the Federal Reserve Bank in the district in which adopt an individual "base net foreign position." the institution is located within 15 days after Alternatively, one or more agencies or branches the end of the reporting period. (Forms are of a particular foreign bank may consolidate available at the Federal Reserve Banks.) III. Nonbank Financial Institutions A. APPLICABILITY TO FINANCIAL INSTI- ered with respect to foreign financial assets held TUTIONS for their own account and are requested to inform their customers of the program in those This part of the guidelines applies to all U.S. cases where it appears applicable. nonbank financial institutions, including: trust Businesses whose principal activity is the companies, trust departments of commercial leasing of property and equipment, and that are banks; mutual savings banks; insurance companot owned or controlled by a financial institunies; investment companies; financial compation, are not defined as financial institutions. nies; employee retirement and pension funds; Real estate investment trusts whose assets concollege endowment funds; charitable foundasist primarily of real property as contrasted with tions; U.S. branches of foreign insurance comfinancial assets (such as mortgages) also are not panies and of other foreign nonbank financial covered by these guidelines. corporations; and holding companies (other than bank holding companies) whose domestic assets B. CEILING AND PRIORITIES consist primarily of the stock of operating nonbank financial institutions. Investment un- 1. Ceiling derwriting firms, securities brokers and dealers, Each institution is requested to limit its agand investment counseling firms also are cov- gregate holdings of foreign assets covered by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 21 the program to no more than its ceiling as a. 105 per cent of its ceiling as of Dedescribed in Section C, except for special situa- cember 31, 1972, or tions discussed in Section J, below. b. $2 million. 2. Liquid Foreign Balances 2. Minus equity securities of companies es- Institutions generally are expected to hold no tablished in developed countries (except Canforeign deposits or foreign money market in- ada) that are included in Section C-l but had struments, except such minimum working bal- been sold to American investors after December ances abroad as are needed for the efficient 31, 1972. conduct of their foreign business activities. 3. Plus, or minus, the difference between 3. Developing Countries sales proceeds and "carrying" value of covered equities sold after December 31, 1972, to other Among the foreign assets that are subject to than American investors or in other than U.S. the guideline ceiling (covered assets), institumarkets. On each reporting date, "carrying" tions are asked to give priority to credits that value should be the value reflected in the instidirectly benefit the economies of developing tution's report (on Form FR 392R-68) for Decountries. cember 31, 1967, in the case of equities held 4. Conformity with Objectives of Guide- on that date, or it should be the cost in the case lines of equities purchased after that date. Institutions may invest in noncovered foreign assets generally as desired. However, they are D. COVERED ASSETS—SUBJECT TO requested to refrain from making any nonexport CEILING loans or investments, noncovered as well as Foreign financial assets subject to the ceiling covered, that appear to be inconsistent with (covered assets) include investments of the folother aspects of the U.S. balance of payments lowing types (but see exclusions in Section E): program. Among these are the following: 1. Liquid funds in all foreign countries. This a. Noncovered credits under this program category comprises foreign bank deposits, inthat substitute directly for loans that commercial cluding deposits in foreign branches of U.S. banks would have made in the absence of that banks, and liquid money market claims on part of the program applicable to them. foreign obligors, generally defined to include b. Noncovered credits to developing country marketable negotiable instruments maturing in subsidiaries of U.S. corporations that would not 1 year or less. have been permitted under the Department of Commerce Foreign Direct Investment Program 2. All other claims on foreign obligors writif made by the U.S. parent directly. ten, at date of acquisition, to mature in 10 years c. Credits to U.S. borrowers that would en- or less. This category includes bonds, notes, able them to make foreign loans and investments mortgages, loans, and other credits. inconsistent with the Foreign Direct Investment 3. Net financial investment in foreign Program. branches, subsidiaries, and affiliates located in d. Credits to U.S. subsidiaries and branches developed countries other than Canada. Such of foreign companies that otherwise would have financial investment includes payments into eqbeen made to the foreign parent or that would uity and other capital accounts of, and net loans substitute for funds normally obtained from and advances to, any foreign business in which foreign sources. the U.S. institution has an ownership interest of 10 per cent or more. Excluded are earnings C. CALCULATION OF CEILING of such a foreign business if they are directly The ceiling for each nonbank financial insti- retained in its capital accounts. tution will be: 4. Long-term credits entered into after No- 1. The greater of: vember 11, 1971, to finance the construction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN • JANUARY 1974 or operation of foreign-built vessels unless the 3. All direct obligations of international infinancing involves a corresponding transfer of stitutions of which the United States is a memcapital by a direct investor under the Foreign ber. Direct Investment Program. Included in this 4. Long-term investments in all developing category are bonds, notes, mortgages, loans, countries (except as noted in Section D-4), leases, and other credits. A credit is long-term including direct investment in subsidiaries and if at least 10 per cent of the amount to be repaid affiliates, credit instruments of the types and to the lender is scheduled, at the time of acquimaturity described in Section D-4, and all eqsition, to be repaid after 10 years. uity securities issued by firms established in these countries. 5. Long-term credits of foreign obligors established in developed countries other than 5. Equity securities of firms in developed Canada. (Long-term credits are as defined in countries other than Canada that have been paragraph 4.) acquired in U.S. markets from American investors. (See Section D-6.) 6. Equity securities (including American Depositary Receipts) of foreign corporations 6. Foreign assets of types subject to ceiling established in developed countries other than but acquired after December 31, 1967, as "free Canada, except those acquired after September delivery" items—that is, acquired as gifts or, 30, 1965, in U.S. markets from American in- in the case of trust companies or trust departvestors. Exclusion from ceiling normally will ments of commercial banks, deposited with the be indicated if, in acquiring an equity security institution in new accounts. that otherwise would be covered, the purchasing 7. A foreign asset acquired directly or institution receives a certificate of prior Amerithrough purchase of a participation in a pool can ownership or brokerage confirmation of foreign assets, provided the foreign asset or thereof. Securities acquired from a broker who the participation is covered by a payment guarpurchased them from a foreigner in anticipation antee issued by the U.S. Overseas Private Inof early resale are not deemed to be acquisitions vestment Corporation (OPIC) under its insurfrom a prior American investor. ance and guaranty claims settlement authority, 7. Investments made by trust departments of is exempted from an institution's ceiling. commercial banks or by trust companies with trust funds over which the trustee (or co-trustee) F. CREDITS TO CERTAIN U.S. CORPORAhas at least some influence on investment policy TIONS and not separately reported by another financial institution. 1. Any loan or investment acquired by a nonbank financial institution after June 30, 1968, that involves the advance of funds to a E. NONCOVERED ASSETS—EXCLUSIONS domestic corporation that is simply a financing The following foreign financial assets are conduit (commonly known as a Delaware subexcluded from the guideline ceiling: sidiary) and that in turn will transmit the funds to a foreign business is a foreign asset if one 1. Export credits, as defined in Part IV-3. or more foreigners own a majority of the do- Institutions should maintain adequate informamestic corporation. The amounts of such foreign tion and otherwise take all reasonable measures loans or investments should be classified acto provide assurance that credits meet the deficording to the country where the funds are nition before treating them as exempted. actually to be used, not according to the resi- 2. All financial assets in, or claims on resi- dence of the owners of the domestic corporadents of, Canada. tion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 23 2. If U.S. residents, other than the lending J. COVERED ASSETS IN EXCESS OF institution, hold a majority ownership interest CEILING in the domestic corporation, no part of a loan 1. In view of the balance of payments objecor of an investment in such a corporation is to tives of the program, covered investments of be regarded as a foreign asset of the institution. nonbank financial institutions may be permitted to exceed the guideline ceiling to the extent that G. LEASING OF PHYSICAL GOODS the funds for such investment are (a) borrowed The foreign leasing activities of firms that abroad for investment in the same country or engage primarily in the leasing of physical in countries that are subject to the same or more assets (e.g., computers, real property, ships, liberal guideline restraint or (b) derived from aircraft) and that are not owned or controlled equity securities issued by the nonbank financial by a U.S. financial institution are not subject institution and sold to residents of foreign deto these guidelines. However, such activities are veloped countries (other than Canada), provided subject to these guidelines when they are un- that the nonbank financial institution promptly dertaken by nonbank financial institutions. treats as a charge against its ceiling the amount of any such equity securities at any moment it H. INVESTMENT IN CERTAIN FOREIGN IN- is unable to assure itself fully that any such SURANCE VENTURES securities continue in the possession of such foreigners. (For reporting purposes, the amount Net investment in foreign insurance ventures of such securities held by foreigners should be should be reported. In the case only of a foreign included with borrowings in foreign countries.) insurance venture in which a U.S. nonbank Thus, for the purpose of the offset provision, financial institution had an investment before funds borrowed in the developed countries may 1965, if it is not feasible to segregate the net be used to finance investments in these countries investment of the U.S. nonbank financial instiand elsewhere, but funds borrowed in the detution, the latter may exclude from its foreign veloping countries should not be used to finance assets subject to ceiling the aggregate of the investment in the developed countries. Any inlarger of the following in each foreign country stitution desiring to offset foreign borrowing in which a foreign affiliate sells insurance: (a) against foreign investment, however, should 110 per cent of assets held in the foreign country discuss its plans with the Federal Reserve Bank as reserve against insurance sold to residents of before entering into such an arrangement. that country by the foreign affiliate or (b) the minimum deposit of cash or securities required 2. An institution without a guideline ceiling by foreign authorities as a condition of doing may hold covered assets up to $2 million if its insurance business in that country. investments are consistent with guideline restraints (a) with respect to liquid funds and (b) I. REPORTING REQUIREMENT concerning possible conflict with program objectives, as noted in Section III-B-2 and B-4. Each nonbank financial institution holding, on any quarterly reporting date, covered assets of The institution is expected to file an initial $500,000 or more, or total foreign financial statement of its holdings with its Federal Reassets of $5 million or more, should file a serve Bank and thereafter to file a statement with statistical report covering its total holdings on the Bank within 20 days after the end of any that date with the Federal Reserve Bank of the calendar quarter when its total holdings of cov- Federal Reserve district in which its principal ered foreign assets have changed by as much office is located. The reports are due within 20 as $100,000 since its previous report, even days following the close of each calendar though its total holdings remain below the minquarter, and forms may be obtained from the imum reporting levels stipulated in the guide- Federal Reserve Bank. (See also Section J-2.) lines. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN • JANUARY 1974 IV. Definitions The following definitions apply to boh the bank Export credit may be direct or indirect. Direct and nonbank financial institution parts of the credit is a credit that results in the direct acquiguidelines. sition of a debt obligation of a foreign obligor. An indirect credit is a credit extended to a 1. "Claims on foreigners" are claims on foreign financial institution which, in conseforeigners held for an institution's own account. quence, itself acquires debt obligations of obli- For banks, they include: foreign long-term segors resident outside the United States. Therecurities; deferred payment letters of credit defore, credit extended by a U.S. financial instituscribed in Treasury Department Supplemental tion to a foreign buyer of U.S. exports directly Reporting Instruction No. 1 (Revised), Treasury or through a foreign financial institution may Foreign Exchange Reports, Banking Forms, be an export credit. Also, an export credit may September 25, 1972; participations purchased be extended through purchase of documented in loans to foreigners; loans to financial conduits loan paper. incorporated in the United States, 50 per cent or more owned by foreigners; and foreign assets The cost of freight in connection with exporsold, with recourse, to U.S. residents other than tation, the cost of transport insurance in confinancial institutions participating in the Federal nection with exportation, and the cost of export Reserve Foreign Credit Restraint Program or credit guarantees and export credit insurance other than direct investors subject to the controls borne by the foreign buyer or the foreign finanadministered by the Department of Commerce. cial institution may be included in the cost of They also include foreign customers' liability export for the purpose of determining the for acceptances executed, whether or not the amount of credit that is to be considered export accepted drafts are held by the accepting bank. credit. Any element of foreign duty is to be "Claims on foreigners" exclude: contingent excluded for this purpose. claims; unutilized credits; claims held for ac- U.S. goods are goods grown, produced, or counts of customers; and acceptances executed manufactured in the United States. by other U.S. banks. U.S. services performed abroad should be services performed outside the United States by 2. "Foreigners" include: individuals, part- U.S. domiciled or U.S. incorporated companies nerships, and corporations domiciled outside the or by U.S. nationals temporarily resident United States, irrespective of citizenship, except abroad. their agencies or branches located within the A particular credit should be regarded as an United States; branches, subsidiaries, and export credit only if 85 per cent or more of its affiliates of U.S. banks and other U.S. corporatotal amount finances U.S. exports. However, tions that are located in foreign countries; and a single credit agreement exclusively for servany government of a foreign country or official ices may be broken down to exclude non-U.S. agency thereof and any official international or services. The export credit may thereby be regional institution created by intergovernmenidentified as that portion of credit financing the tal agreement, irrespective of location. performance of services by U.S. firms and U.S. 3. "Export credit" means any claim on a nationals, as well as financing the purchase (or foreigner for the demonstrable financing (a) of lease) of U.S. goods incidental to the performthe export of U.S. goods or (b) of the perform- ance of those services. ance abroad of U.S. services. (Items (a) and A participation in export credits should be (b) are hereinafter referred to as exports.) To regarded as export credit of the financial institube demonstrable, the financing must relate to tion purchasing the participation. However, a a specific, individual, identifiable export for participation in a pool of loans would not be which shipping documents or other documents considered export credit by the institution purevidencing the export are obtainable. chasing the participation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 25 A credit that has a substantially longer matu- land, Norway, Portugal, Qatar, Republic of rity than is customary in international export South Africa, San Marino, Saudi Arabia, Spain, financing practice for the type of transaction in Sweden, Switzerland, and the United Kingdom; question should not be regarded as an export and other than: Albania, Bulgaria, the People's credit. Republic of China, Cuba, Czechoslovakia, East Germany, Estonia, Hungary, Communist-con- 4. "Developing countries" are all foreign trolled Korea, Latvia, Lithuania, Outer Mongocountries other than: Abu Dhabi, Australia, lia, Poland (including any area under its provi- Austria, the Bahamas, Bahrain, Belgium, Ber- sional administration), Romania, Tibet, Union muda, Canada, Denmark, France, Germany of Soviet Socialist Republics and the Kurile (Federal Republic), Hong Kong, Iran, Iraq, Islands, Southern Sakhalin, and areas in East Ireland, Italy, Japan, Kuwait, Kuwait-Saudi Prussia that are under the provisional adminis- Arabia Neutral Zone, Libya, Liechtenstein, tration of the Union of Soviet Socialist Repub- Luxembourg, Monaco, Netherlands, New Zea- lics, and Communist-controlled Vietnam. 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 OCTOBER 16, 1973 Domestic policy directive The information reviewed at this meeting suggested that growth in real output of goods and services—which was estimated to have picked up somewhat in the third quarter from an annual rate of about 2.5 per cent in the second quarter—would remain moderate in the current quarter. Staff projections continued to suggest that growth in real output would slacken in the first half of 1974 and that the rise in prices would remain rapid. In September industrial production rose appreciably, owing to a partial recovery in output of motor vehicles—following a sharp reduction in August caused by shortages of parts and by other temporary influences—and to further gains in output of business equipment and industrial materials. Nonfarm payroll employment continued to rise, but expansion during the third quarter was well below the rapid pace earlier in the year, reflecting in large part a leveling-off in employment in manufacturing. The unemployment rate remained at 4.8 per cent. Retail sales declined in both August and September, but sales in the third quarter as a whole were moderately above the second-quarter level. Wholesale prices of farm and food products declined substantially in September—for the most part because of sizable decreases in prices of meat, poultry, and eggs—but the decline was small in relation to the extraordinarily large increase in August. The rise in wholesale prices of industrial commodities, which had slowed for 2 months after mid-June when the freeze was imposed, accelerated in September. From mid-July to mid-August the consumer price index had risen sharply, reflecting not only a record increase in prices of foods following the relaxation of food price controls on July 18 but also exceptionally large advances in average prices of other consumer goods and of consumer services. The index of average hourly earnings of production workers on nonfarm payrolls 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

had advanced at a faster pace in recent months than it had earlier in the year. Staff projections for the current quarter in general were similar to those of 4 weeks earlier. It was expected that both Federal and State and local government purchases of goods and services would rise appreciably, that consumption expenditures would expand at a moderate pace, and that business inventory investment would increase further. It was also anticipated, however, that residential construction outlays would decline substantially. Exchange rates for the dollar against most foreign currencies had changed little since mid-August, following a significant strengthening earlier in the month. In September, as in August, the U.S. balance of payments on an official settlements basis was in surplus. U.S. merchandise exports expanded substantially further in August, reflecting increases in both prices and the physical volume of agricultural commodities; however, imports rose even more—for the most part owing to a large increase in imports of fuels following a dip in July—and the trade balance slipped back into deficit. For July and August combined, the trade balance was close to zero. Net foreign purchases of U.S. equity securities, which had risen considerably in July, remained large in August. At U.S. commercial banks, expansion in loans to business slowed in September to the lowest rate in more than a year, in part because business borrowers shifted to the commercial paper market in response to declines in market interest rates relative to effective rates on bank loans. Most other types of bank loans continued to expand rapidly, but banks again liquidated substantial amounts of their holdings of Government securities. Altogether, the increase in total bank credit was small. The narrowly defined money stock (Mi)1 declined in September for the second successive month; M changed little over the third x quarter, after having grown at a rate of about 10.5 per cent in the second quarter.2 Inflows of time and savings deposits other Private demand deposits plus currency in circulation. 2 Growth rates cited are calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month preceding the quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN • JANUARY 1974 than large-denomination CD's were substantial in September—although well below the high rate of August—and the more broadly defined money stock (M )3 expanded slightly. The outstanding 2 volume of large-denomination CD's continued to rise in early September, but the volume declined after midmonth as banks reduced the rates paid on such CD's in response to the weakening in business loan demand; over the whole month, the outstanding volume changed little, and growth in the bank credit proxy4 slowed markedly. Nonbank thrift institutions experienced a net increase in savings deposits in September—even after adjustment for the crediting of interest and other seasonal influences—following net outflows of funds in August. Although outstanding borrowings by savings and loan associations from the Federal home loan banks rose substantially in September, the increase was below that in each of the two preceding months. Mortgage interest rates rose appreciably further. Short-term market interest rates began to decline sharply soon after the Committee's meeting on September 18, in large part because of widespread market expectations that the recent weakness in the behavior of the monetary aggregates would lead to more aggressive System efforts to supply reserves and, consequently, to an easing in money market conditions. The market rate on 3-month Treasury bills was 7.19 per cent on the day before this meeting, compared with 8.70 per cent on the day before the September meeting and with an inter-meeting period low of 6.96 per cent on September 27. Yields on long-term securities, which had turned down in early August, declined moderately further after the September meeting—although the decline, as usual, was not so sharp as that for short-term instruments. The volume of new public offerings of corporate bonds fell contraseasonally in September, following a more-than-seasonal reduction in August, but a substantial rise in the volume was in prospect for October. 3 Mi plus commercial bank time and savings deposits other than large-denomination CD's. 4Daily-average member bank deposits, adjusted to include funds from nondeposit sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 29 The Treasury was expected to announce on October 24 the terms of its mid-November refunding. Of the maturing issues, $3.6 billion were held by the public. System open market operations since the meeting on September 18 had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead, while taking account of international and domestic financial market developments. Operations initially had been directed toward fostering growth in reserves available to support private nonbank deposits (RPD's) at an annual rate in a range of 15 to 18 per cent, while avoiding unduly sharp changes in money market conditions. In late September incoming data suggested that in the September-October period growth in both M and M would fall short x 2 of acceptable ranges and that RPD's would grow at a rate well below the range that the Committee had specified, in part because of the decline in the outstanding volume of large-denomination CD's that began in late September. The System Open Market Account had been avoiding overly aggressive reserve-supplying operations because of the substantial declines in market interest rates that had occurred and a concern that such operations would contribute to further declines in interest rates. The Federal funds rate remained at about 10% per cent. On October 1 the Account Manager reported that significant inconsistencies existed among the Committee's various objectives and constraints, and the Committee held a telephone meeting on October 2. Following the telephone meeting, at which the majority of the members concluded that money market conditions should be allowed to ease somewhat if such easing did not threaten to reinvigorate the sharp rally in markets for short-term securities, the System became somewhat more aggressive in supplying reserves. Short-term interest rates in general declined further, but the Federal funds rate on most days through October 8 remained close to 10% per cent. Moreover, incoming data indicated that growth in RPD's and the monetary aggregates would be even weaker in the September-October period than had been expected a week earlier. On October 10 the Committee held another telephone meeting, at which the members agreed that in the few days remaining until this meeting, reserves should be supplied at a rate consistent with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN • JANUARY 1974 some easing in money market conditions beyond that decided upon on October 2. In the days just before this meeting, the Federal funds rate was around 10 per cent. In the 4 weeks ending October 10, member bank borrowings averaged about $1,690 million, down from an average of $2,135 million in the preceding 4 weeks. At this meeting the Committee agreed that the economic situation and prospects continued to call for moderate growth in monetary aggregates over the months ahead. A staff analysis indicated that, although the transactions demand for money would probably expand, the sharp rise in short-term interest rates that had occurred through early September would tend to dampen the demand for money in the months ahead. Consequently, achievement of moderate growth in monetary aggregates was likely to require some easing in money market conditions. The staff analysis also indicated that growth of consumer-type time and savings deposits probably would strengthen and that expansion in the outstanding volume of large-denomination CD's would be resumed in response to moderate growth in business loan demand. However, because of the recent weakness in the aggregates in combination with lagged reserve accounting, relatively slow growth in RPD's in the October-November period—at an annual rate in a range of 2 to 4 per cent—was thought likely to be consistent with moderate growth in both the narrowly defined and the more broadly defined money stock over the months ahead. In view of the weak behavior of the monetary aggregates in August and September, the Committee concluded that reservesupplying operations should not become restrictive unless RPD's in the October-November period appeared to be growing at an annual rate of more than 5 per cent. Specifically, the members decided that operations should be directed at fostering RPD growth during that period within a range of 2 to 5 per cent, while avoiding unduly sharp changes in money market conditions. The members also agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments, of the forthcoming Treasury financing, and of deviations in monetary growth from an acceptable range. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 31 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 in the fourth quarter is likely to remain at about the moderate rate indicated for the third quarter. In recent months manufacturing employment has leveled off and total nonfarm employment has expanded less rapidly than earlier; the unemployment rate has remained at 4.8 per cent. The advance in wage rates has been somewhat faster than earlier. In September wholesale prices of industrial commodities rose appreciably; farm and food prices declined, but by far less than they had risen in August. The U.S. merchandise trade balance weakened slightly in August. Net foreign purchases of U.S. stocks continued large, however, and the balance of payments on an official settlements basis was in surplus in both August and September. Exchange rates for the dollar against most foreign currencies have changed little since mid-August. The narrowly defined money stock, which had risen sharply during the second quarter, declined in September for the second successive month. The more broadly defined money stock expanded slightly in September as a result of net inflows at banks of consumer-type time deposits. The deposit experience at nonbank thrift institutions improved somewhat in September following a period of sizable outflows. Bank credit—which had been expanding rapidly—increased little as business loan growth slowed markedly, and after mid-September the outstanding volume of large-denomination CD's declined substantially. Short-term market interest rates fell sharply from mid-September to early October, partly as a result of a shift in market expectations regarding monetary policy, and rates on long-term market securities declined moderately further. 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 the forthcoming Treasury financing and of international and domestic financial market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDERAL RESERVE BULLETIN • JANUARY 1974 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, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Holland, Mayo, Mitchell, Morris, and Sheehan. Votes against this action: None. 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 located in such a city that is permitted by the Board of Governors of the Federal Reserve System, pur- The Board has amended Regulation D to reduce suant to § 204.2(a)(2), to maintain the reserves to 8 per cent the marginal reserve requirement on specified in subparagraph (1) of this paragraph)— those classes of time deposits currently subject to the 11 per cent marginal reserve requirement. AMENDMENT TO REGULATION D (ii) 3 per cent of its other time deposits up to $5 million, plus 5 per cent of such deposits in Effective December 13, 1973, section excess of $5 million: Provided, however, That a 204.5(a)(l)(ii) and 2(ii) of Regulation D is member bank shall maintain a reserve balance amended to read as follows: equal to 8 per cent of the amount by which the SECTION 204.5—RESERVE REQUIREMENT daily average amount of time deposits of the types hereinafter specified exceeds either the daily (a) Reserve percentages. Pursuant to the proaverage amount of such time deposits outstanding visions of section 19 of the Federal Reserve Act during the computation period ending May 16, and § 204.2(a) and subject to paragraph (c) of this 1973, or $10 million, whichever is greater, and section, the Board of Governors of the Federal such 8 per cent reserve percentage shall apply with Reserve System hereby prescribes the following respect to time deposits of the following types: reserve balances that each member bank of the (a) time deposits of $100,000 or more; and Federal Reserve System is required to maintain (b) time deposits represented by promissory on deposit with the Federal Reserve Bank of its notes, acknowledgments of advance, due bills, or district: similar obligations issued by a member bank's (1) If not in a reserve city— affiliate, as provided in § 204.1(f); and (c) time deposits represented by bank acceptances, as provided in § 204.1(f); and (ii) 3 per cent of its other time deposits up to * * * $5 million, plus 5 per cent of such deposits in excess of $5 million: Provided, however, That a MAXIMUM LOAN VALUE OF STOCKS member bank shall maintain a reserve balance The Board of Governors has amended Regulaequal to 8 per cent of the amount by which the tions G, T, and U to change from 35 per cent daily average amount of time deposits of the types to 50 per cent the maximum loan value of margin hereinafter specified exceeds either the daily securities. This will have the effect of decreasing average amount of such time deposits outstanding the amount of margin required for stock-secured during the computation period ending May 16, loans and short sales. 1973, or $10 million, whichever is greater, and such 8 per cent reserve percentage shall apply with SECURITIES CREDIT BY PERSONS respect to time deposits of the following types: OTHER THAN BANKS, BROKERS, OR DEALERS (a) time deposits of $100,000 or more; and 1. Effective January 3, 1974, section 207.5 is (b) time deposits represented by promissory amended to read as follows: notes, acknowledgments of advance, due bills, or similar obligations issued by a member bank's affiliate, as provided in § 204.1(f); and SECTION 207.5—SUPPLEMENT (c) time deposits represented by bank accep- TO REGULATION G tances, as provided in § 204.1(f); and * * * (a) Maximum loan value of margin securi- (2) If in a reserve city (except as to any bank ties. For the purpose of § 207.1, the maximum 33 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN • JANUARY 1974 loan value of any margin security, except convert- MEMBERSHIP OF STATE BANKING INSTITUTIONS ible securities subject to § 207.1(d) and any put, IN THE FEDERAL RESERVE SYSTEM call, or combination thereof, shall be 50 per cent AMENDMENT TO REGULATION H of its current market value, as determined by any reasonable method. No put, call, or combination 1. Effective December 21, 1973 sections 208(b) thereof shall have any loan value for the purposes and (c) are amended to read as follows: of this part. SECTION 208.9—PUBLICATION OF REPORTS OF MEMBER BANKS AND THEIR AFFILIATES CREDIT BY BROKERS AND DEALERS 2. Effective January 3, 1974, sections 220.8(a)(1) and (d) are amended to read as fol- (b) Reports of affiliates.10 (1) If reports of affililows: ates are requested by the Board of Governors of SECTION 220.8—SUPPLEMENT the Federal Reserve System, each report of an TO REGULATION T affiliate of a member State bank, including a holding company affiliate, shall be published at the (a) Maximum loan value for general acsame time and in the same newspaper as the counts. The maximum loan value of securities in affiliated bank's own condition report submitted a general account subject to § 220.3 shall be: to the Federal Reserve Bank, unless an extension (1) Of a registered nonequity security held in of time for submission of the report of the affiliate the account on March 11, 1968, and continuously has been granted under authority of the Board of thereafter, and of a margin equity security (except Governors of the Federal Reserve System. When as provided in § 220.3(c) and paragraphs (b), (c) such extension of time has been granted, the report and (f) of this section) 50 per cent of the current of the affiliate must be submitted and published market value of such securities. before the expiration of such extended period in the same newspaper as the condition report of the bank was published. (d) Margin required for short sales. The amount to be included in the adjusted debit balance (2) The copy of the report for the use of the of a general account, pursuant to § 220.3(d)(3), printer for publication should be prepared on Form as margin required for short sales of securities F.R. 220a. The published information shall agree (other than exempted securities) shall be 50 per in every respect with that shown on the face of cent of the current market value of each security. the report of the affiliate furnished to the Federal Reserve Bank by the affiliated member bank, except that any item appearing under the caption "Financial relations with bank" against which the CREDIT BY BANKS FOR THE PURPOSE OF word "none" appears on the report furnished to PURCHASING OR CARRYING MARGIN STOCKS the Federal Reserve Bank may be omitted in the 3. Effective January 3, 1974, section 221.4(a) published statement of the affiliate: Provided, That if the word "none" is shown against all of the is amended to read as follows: items appearing under such caption in the report furnished to the Federal Reserve Bank the caption SECTION 221.4—SUPPLEMENT TO REGULATION U (a) Maximum loan value of stocks. For the 10Section 21 of the Federal Reserve Act, among other things, provides as follows: "Whenever member banks are required purpose of § 221.1, the maximum loan value of to obtain reports from affiliates, or whenever affiliates of any stock except puts, calls, and combinations member banks are required to submit to examination, the Board of Governors of the. Federal Reserve System or the Comptroller thereof, whether or not registered on a national of the Currency, as the case may be, may waive such requiresecurities exchange shall be 50 per cent of its ments with respect to any such report or examination of any current market value, as determined by any rea- affiliate if in the judgment of the said Board or Comptroller, respectively, such report or examination is not necessary to sonable method. Puts, calls, and combinations disclose fully the relations between such affiliate and such bank thereof shall have no loan value. and the effect thereof upon the affairs of such bank." In any case where the Board has waived the filing of a report of an affiliate, no publication of a report of an affiliate is required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 35 "Financial relations with bank" shall appear in SECTION 217.5—WITHDRAWAL OF the published statement followed by the word SAVINGS DEPOSITS "none." All signatures shall be the same in the published statement as in the original report sub- (c) Manner of payment of savings deposits. mitted to the Federal Reserve Bank, but the signa- (1) Subject to the provisions of subparagraphs tures may be typewritten or otherwise copied on the report for publication. (2) and (3) of this paragraph, * * * (3) A copy of the printed report shall be submitted to the Federal Reserve Bank attached to the certificate on Form F.R. 220a. (3) The provisions of this paragraph do not (c) Waiver of reports of affiliates. Pursuant apply to deposits subject to negotiable orders of to section 21 of the Federal Reserve Act (12 withdrawal authorized by Federal law to be issued U.S.C. 486), the Board of Governors of the Fed- in the States of Massachusetts and New Hampshire eral Reserve System waives the requirement for which shall be subject to the limitation that no the submission of reports of affiliates of State bank member bank may accept more than 150 negotiamembers of the Federal Reserve System, unless ble orders of withdrawal during any calendar year such reports are specifically requested by the Board on any deposit subject to such orders. of Governors. The Board of Governors of the (4) Where a savings deposit is evidenced by a Federal Reserve System may require the submis- passbook, every withdrawal made upon presentasion of reports which are necessary to disclose tion of the passbook shall be entered in the passfully relations between member banks and their book at the time of withdrawal, and every other affiliates and the effect thereof upon the affairs of withdrawal for such a deposit shall be entered in member banks. the passbook as soon as practicable after withdrawal is made. 3. Section 217.6 is amended by adding a new paragraph (i) to read as follows: INTEREST ON DEPOSITS SECTION 217.6—ADVERTISING OF INTER- The Board of Governors has amended its Regu- EST ON DEPOSITS lation Q to prescribe rules governing the use of negotiable orders of withdrawal within Massachusetts and New Hampshire. (i) Negotiable orders of withdrawal. In addition to compliance with the other paragraphs of this section, member banks offering accounts sub- AMENDMENT TO REGULATION Q ject to negotiable orders of withdrawal, to the Effective January 1, 1974, the Board's Regula- extent practicable, shall limit every advertisement, tion Q is amended in the following respects: announcement or solicitation made in any newspaper, magazine, radio, television or other media 1. Section 217.1 is amended by adding a new to such facilities directed toward residents of New subparagraph (3) to paragraph (e) of that section Hampshire and Massachusetts. All other adverto read as follows: tisements, announcements and solicitations of such accounts, including direct mailing, circulars, and SECTION 217.1—DEFINITIONS notices, whether written or oral, to the extent practicable, shall be directed only to persons residing or employed in New Hampshire and Mas- (e) Savings deposits. sachusetts and to persons who are customers of member banks in those states on the effective date (3) In those States where banks are permitted of this amendment. to offer deposits subject to negotiable orders of 4. Section 217.7 is amended by amending parawithdrawal, such deposits may be maintained only graph (c) to read as follows: by individuals and organizations permitted to SECTION 217.7—MAXIMUM RATES OF INmaintain savings deposits under subparagraph (1) TEREST PAYABLE BY MEMBER BANKS ON of this paragraph. TIME AND SAVINGS DEPOSITS 2. Section 217.5 is amended by amending paragraph (c) of that section to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN • JANUARY 1974 (c) Savings deposits. No member bank shall Q". The Board regards transactions which result pay interest at a rate in excess of 5 per cent on in third parties gaining access to the Federal funds any savings deposit including savings deposits that interbank loan market as contrary to the interbank are subject to negotiable orders of withdrawal, the exemption contained in § 217.1(f) of Regulation issuance of which is authorized by Federal law. Q, and § 204.1(f) of Regulation D regardless of whether the nonbank third party is a party to the initial interbank transaction or thereafter becomes CREDIT BY BROKERS AND DEALERS a participant in the transaction through purchase AMENDMENT TO REGULATION T of all or part of the obligation held by "selling" bank. Effective June 21, 1974, section 220.6 of Reg- The Board regards the notice requirements set ulation T is amended to add paragraph (1) as set out in (§ 217.137) as applicable to IBLP-type forth below: transactions as described herein so that a bank SECTION 220.6—CERTAIN TECHNICAL "selling" Federal funds must provide to the pur- DETAILS chasing bank (1) notice of its intention, at the time of the initial transaction, to sell or participate out its loan contract to a nonbank third party, and (2) (1) Credit related to portion of a security. full and prompt notice whenever it (the "selling" Credit for the purpose of purchasing or carrying bank) subsequently sells or participates out its loan any part of an investment contract security (for contract to a nonbank third party. example, but not limited to, the cattle ownership portion of a program to own and feed cattle, or the condominium ownership part of a program to BANK HOLDING COMPANIES own and rent a unit through a rental pool or MISCELLANEOUS INTERPRETATIONS otherwise) shall be deemed to be credit on the entire security. Issuance and sale of short-term debt obligations by bank holding companies. The opinion of the Board of Governors of the Federal Reserve INTERPRETATION OF REGULATION Q System has been requested recently with respect Nonbank participation in "Federal funds" to the proposed sale of "thrift notes" by a bank market. The Board has recently considered holding company for the purpose of supplying whether the use of "interbank loan participations" capital to its wholly-owned nonbanking subsidi- ("IBLPs"), which involves participation by non- aries. bank third parties in Federal funds transactions, The thrift notes would bear the name of the comes within the exemption from "deposit" clas- holding company, which in the case presented, sification for certain obligations between banks was sustantially similar to the name of its affiliated contained in § 204.1(f) of Regulation D and § banks. It was proposed that they be issued in 217.1(f) of Regulation Q. An IBLP transaction is denominations of $50 to $100 and initially be of one through which a bank that has sold Federal 12-month or less maturities. There would be no funds to another bank, subsequently "sells" or maximum amount of the issue. Interest rates would participates out its loan contract to a nonbank third be variable according to money market conditions party without notifying the bank that has "pur- but would presumably be at rates somewhat above chased" its funds. those permitted by Regulation Q ceilings. There The Board's 1970 interpretation regarding Fed- would be no guarantee or indemnity of the notes eral funds transactions (§ 217.137) clarifies the by any of the banks in the holding company system meaning of "bank" as that term is used in the and, if required to do so, the holding company exemption for liabilities to banks. Paragraph (b) would place on the face of the notes a negative of that interpretation states that the purpose of representation that the purchase price was not a requiring that interbank transactions be issued to deposit, nor an indirect obligation of banks in the another bank for its own account, in order to come holding company system, nor covered by deposit within the non-deposit exemption, is "to assure insurance. that the exemption for liabilities to banks is not The notes would be generally available for sale used as a means by which nonbanks may arrange to members of the public, but only at offices of through a bank to 'sell' Federal funds to a member the holding company and its nonbanking subsidibank that are not subject to Regulations D and aries. Although offices of the holding company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 37 may be in the same building or quarters as its substantial contraction and would be an integral banking offices, they would be physically sepa- part of its operations, the Board concluded that rated from the banking offices. Sales would be the issuance and sale of such notes would constimade only by officers or employees of the holding tute a principal activity of a holding company company and its nonbanking subsidiaries. Ini- within the spirit and purpose of the statute. (For tially, the notes would only be offered in the State prior Board decisions in this connection, see 1934 in which the holding company was principally Federal Reserve BULLETIN 485, 12 CFR 218.104, doing business, thereby complying with the ex- 12 CFR 218.105 and 12 CFR 218.101.) emption provided by section 3(a)(ll) of the Se- In reaching this conclusion, the Board distincurities Act of 1933 (15 U.S.C. 77c) for "intra- guished the proposed activity from the sale of state" offerings. If it was decided to offer the notes short-term notes commonly known as "commeron an interstate basis, steps would be taken to cial paper", which is a recognized form of firegister the notes under the Securities Act of 1933. nancing for bank holding companies. For purposes Funds from the sale of the notes would be used of this interpretation, "commercial paper" may only to supply the financial needs of the nonbank- be defined as notes, with maturities not exceeding ing subsidiaries of the holding company. These nine months, the proceeds of which are to be used nonbank subsidiaries are, at present, a small loan for current transactions, which are usually sold to company, a mortgage banking company and a sophisticated institutional investors, rather than to factoring company. In no instance, would the members of the general public, in minimum deproceeds from the sale of the notes be used in nominations of $10,000 (although sometimes they the bank subsidiaries of the holding company nor may be sold in minimum denominations of $5,to maintain the availability of funds in its bank 000). Commercial paper is exempt from regissubsidiaries. tration under the Securities Act of 1933 by reason The sale of the thrift notes, in the specific of the exemption provided by section 3(a)(3) manner proposed, is an activity described in sec- thereof (15 U.S.C. 77c). That exemption is inaption 20 of the Banking Act of 1933 (12 U.S.C. plicable where the securities are sold to the general 377), that is, "the issue, flotation, underwriting, public (17 CFR 231.4412). The reasons for such public sale or distribution . . . of . . . notes, or exemption, taken together with the abuses that other securities". Briefly stated, this statute pro- gave rise to the passage of the Banking Act of hibits a member bank to be affiliated with a com- 1933 ("the Glass-Steagall Act") have lead the pany "engaged principally" in such activity. Board to conclude that the issuance of commercial Since the continued issuance and sale of such paper by a bank holding company is not an activity securities would be necessary to permit mainte- intended to be included within the scope of section nance of the holding company's activities without 20. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF Notice of the application, affording opportunity BANK HOLDING COMPANY ACT for interested persons to submit comments and views, has been given in accordance with § 3(b) CEDAR HOLDINGS LIMITED, BANKERS of the Act. The time for filing comments and views LONDON, ENGLAND has expired, and the Board has considered the ORDER APPROVING FORMATION OF BANK application and all comments received in light of HOLDING COMPANY the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Cedar Holdings Limited, Bankers, London, Applicant, organized under British law, is en- England, has applied for the Board's approval gaged primarily in second mortgage lending under § 3(a)(1) of the Bank Holding Company Act through offices in London and Glasgow, Scotland (12 U.S.C. 1842(a)(1)) of formation of a bank and holds deposits of $94.7 million.1 Applicant holding company through acquisition of up to 51 also controls four nonbank subsidiaries; neither per cent or more of the voting shares of The Chester National Bank, Chester, New York ("Bank"). 'All banking data are as of December 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN • JANUARY 1974 Applicant nor its subsidiaries engage in business Order, unless such period is extended for good activity within the United States. cause by the Board or by the Federal Reserve Bank Bank, which controls deposits of $45.3 million, of New York pursuant to delegated authority. operates in both the Middletown and Mid-Hudson By order of the Board of Governors, effective markets. It is the sixth largest of 15 banks in the December 10, 1973. Middletown market and the nineteenth largest of Voting for this action: Chairman Burns and Governors 26 banks in the Mid-Hudson market. It controls Sheehan, Bucher and Holland. Voting against this action: 6.0 per cent and 1.1 per cent of total deposits in Governor Brimmer. Absent and not voting: Governors Mitchell those two markets, respectively. and Daane. The proposed plan of acquisition includes a (Signed) CHESTER B. FELDBERG, tender offer to all common shareholders of Bank [SEAL] Secretary of the Board. to acquire up to 51 per cent of total outstanding shares of Bank. As British exchange controls re- DISSENTING STATEMENT OF strict investments in a foreign bank by organi- GOVERNOR BRIMMER zations such as Applicant (which is not considered a "bank" for exchange control purposes) to 20 I would disapprove the application by Cedar per cent of a foreign bank's total shares outstand- Holdings Limited, Bankers, to acquire The Chesing, Applicant will divest all shares acquired over ter National Bank. I would do so because I see 20 per cent to its institutional shareholders. Appli- no public benefits to support approval while there cant will then propose a rights offering, whereby are some risks that adverse effects may result. all shareholders of Bank's common stock will be The fact that Applicant will control only 20 per entitled to purchase an additional share for each cent of the common stock of Bank makes it clear share held. All unexercised rights will be publi- that the proposed acquisition is more an investment cally auctioned and Applicant and its institutional undertaking than a serious commitment to the shareholders will be free to purchase rights so business of managing and controlling banks. As auctioned and therefore increase their combined I have previously stated (59 Federal Reserve BULholdings (Applicant would still hold 20 per cent; LETIN 456 (1973)), such an undertaking is not an the overage to be assumed by the institutional appropriate activity for a holding company, is shareholders). contrary to the intent of the 1970 Amendments, Since Applicant does no business in the United and performs a disservice to the interest of stock- States, it is clear that consummation of the pro- holders of the acquired bank and to other holding posal would eliminate no existing or likely poten- companies. On this basis alone, the application tial competition between Applicant and Bank. should be denied. Adequate banking services are presently offered Further, the Board generally has required that in the relevant market area. Bank presently pro- an Applicant demonstrate that it will be a source vides limited retail banking services and Appli- of strength for its subsidiary bank. It is improbacant's proposal to offer its expertise in interna- ble—given Applicant's investment orientation tional financing would at best be of limited benefit toward Bank and the circumstances of this applito Bank and its customers. Thus, the convenience cation—that Applicant will be such a source of and needs of the community will be minimally strength. While it is true that Applicant plans to served by approval of the application. alleviate Bank's immediate capital deficiency, The managerial and financial resources of Ap- there is little evidence that improvements in the plicant are generally satisfactory, while those of overall condition of Bank are a reasonable pros- Bank are considered fair. Bank is somewhat un- pect. Applicant has signed seven year employment dercapitalized and Applicant plans to meet its contracts with two of the present senior officers capital needs. Banking factor considerations lend of Bank. Applicant does not propose to allocate only slight weight toward approval of the applica- any of its managerial resources to Bank on a tion. full-time basis. Instead, it will merely send repre- On the basis of the record, the application is sentatives from London as necessary. Since the approved for the reasons set forth in the Board's expertise which Applicant plans to make available Order of this date. The transaction shall not be to Bank is in the field of international finance, made (a) before the thirtieth calendar day follow- neither the representatives sent to aid Bank nor ing the effective date of this Order or (b) later any other proposed assistance will be of more than than three months after the effective date of this minimal benefit to Bank. Therefore, it seems that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 39 the overall condition and operation of Bank will with management assistance in order to alleviate in no way be improved by Applicant's plan of previously existing managerial problems, and the acquisition. Since I discern no public benefits in continued managerial assistance which Bank will this application, I would not find approval to be receive as a subsidiary of Applicant should in the public interest. strengthen Bank and enhance its financial resources and future prospects. Therefore, banking CENTRAL BANCSHARES OF THE SOUTH, factors lend weight toward approval of the appli- INC., BIRMINGHAM, ALABAMA cation. In view of the fact that affiliation with Applicant will enable Bank to meet the borrowing ORDER APPROVING ACQUISITION OF BANK needs of its larger commercial customers, consid- Central Bancshares of the South, Inc., Bir- erations relating to the convenience and needs of mingham, Alabama, a bank holding company the community to be served are consistent with within the meaning of the Bank Holding Company approval of the application. It is the Board's judgment that consummation of the proposed transac- Act, has applied for the Board's approval under tion would be in the public interest and that the § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to application should be approved. acquire all of the voting shares of The Sumiton Bank, Sumiton, Alabama ("Bank"). On the basis of the record, the application is approved for the reasons summarized above. The Notice of the application, affording opportunity transaction shall not be made (a) before the thirfor interested persons to submit comments and tieth calendar day following the effective date of views, has been given in accordance with § 3(b) this Order or (b) later than three months after the of the Act. The time for filing comments and views effective date of this Order, unless such period has expired, and none has been timely received. is extended for good cause by the Board, or by The Board has considered the application in light the Federal Reserve Bank of Atlanta pursuant to of the factors set forth in § 3(c) of the Act (12 delegated authority. U.S.C. 1842(c)). By order of the Board of Governors, effective Applicant controls eight banks with aggregate December 20, 1973. deposits of about $717 million, representing approximately 10 per cent of total commercial bank Voting for this action: Vice Chairman Mitchell and Goverdeposits in Alabama, and is the third largest bank- nors Daane, Sheehan, Bucher and Holland. Voting against this ing organization in the State. (Banking data are action: Governor Brimmer. Absent and not voting: Chairman Burns. as of June 30, 1973, adjusted to reflect holding (Signed) CHESTER B. FELDBERG, company formations and acquisitions approved by [SEAL] Secretary of the Board. the Board through November 30, 1973.) Acquisition of Bank (deposits of $4.3 million) would DISSENTING STATEMENT OF increase Applicant's share of State deposits by less GOVERNOR BRIMMER than one percentage point. Bank, the only bank in the town of Sumiton, I disagree with the action taken by the majority ranks as the sixth largest of seven banking organi- of the Board on this application by Central Banczations in the relevant market area (approximated shares of the South, Inc., to acquire The Sumiton by Walker County, Alabama) with 5.5 per cent Bank. In approving the proposed acquisition, the of the market deposits. Applicant's closest banking majority has sanctioned a covenant not to compete subsidiary has a branch located 25 miles east of entered into by Applicant and the directors of Bank, and there is no significant existing competi- Bank. The covenant, contained in an agreement tion between the two institutions. Furthermore, it by the directors to sell Applicant their Bank stock, appears unlikely that any significant competition restricts the directors from entering the banking would develop in the future due to the distances business in Walker County, Alabama, or any conseparating the banking offices and the size of Bank. tiguous county, for a period of two years. In effect, The Board concludes that consummation of the such action would preclude for a period of two proposal would not have any adverse effects on years the possibility of these individuals undertakexisting or potential competition, nor on any com- ing to provide an alternative source of banking peting bank. services in the relevant market (as well as con- The financial and managerial resources and tiguous markets) in which Applicant would offer prospects of Applicant and its subsidiary banks are such services through Bank. In my opinion, such satisfactory. Applicant has already supplied Bank agreements are anticompetitive and should not be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN • JANUARY 1974 sanctioned by the Board. For this reason, I would acquisition will eliminate any significant existing deny this application. competition between Applicant's subsidiaries and those of Bancorp. Nor will the proposed acquisition increase the concentration of the market. D. H. BALDWIN COMPANY, The rapid growth of the Colorado Springs area CINCINNATI, OHIO has made the Colorado Springs banking market ORDER APPROVING ACQUISITION OF BANKS an attractive market for foothold or de novo entry. D. H. Baldwin Company, Cincinnati, Ohio, a Applicant, as one of the few large banking orgabank holding company within the meaning of the nizations in the State which is not present in the Bank Holding Company Act, has applied for the market, appears to have the capability to enter the Board's approval under § 3(a)(3) of the Act (12 market de novo. Therefore, some potential com- U.S.C. 1842(a)(3)) to acquire 80 per cent or more petition will be eliminated by this proposed acquiof the voting shares of Central Colorado Bancorp, sition. In view of the expected growth of the Inc., Colorado Springs, Colorado ("Bancorp"), market, the number of independent banks therein and thereby indirectly to acquire State Bank of which might serve as a foothold entry, and the Greeley, Greeley, Colorado; Rocky Ford National fact that two of the State's largest holding compa- Bank, Rocky Ford, Colorado; and Central Colo- nies recently entered the market through acquisirado Bank of Colorado Springs and The Academy tion of smaller banks, it does not appear that Boulevard Bank of Colorado Springs, Colorado Applicant's indirect acquisition of Bancorp's two Springs, Colorado. Colorado Springs banking subsidiaries would have Notice of the application, affording opportunity a significantly adverse effect on future competition for interested persons to submit comments and in the Colorado Springs area. views, has been given in accordance with § 3(b) Bancorp has one banking subsidiary in the of the Act. The time for filing comments and views Rocky Ford market area. This subsidiary, Rocky has expired, and the Board has considered the Ford National Bank (deposits of $6.7 million), application and all comments received in light of ranks second of the four banks in the market with the factors set forth in § 3(c) of the Act (12 U.S.C. 21.5 per cent of total market deposits. Since Ap- 1842(c)). plicant's nearest banking or financial subsidiary is Applicant controls six banks with combined over 150 miles away, this proposed acquisition deposits of $442.3 million, representing 7.4 per will result in no elimination of existing competicent of the total commercial bank deposits in tion between Rocky Ford National Bank and any Colorado, and ranks as the fifth largest banking subsidiary of Applicant. The area's lack of growth organization in the State. (All banking data are and the distance involved make it unlikely that as of December 31, 1972, and reflect acquisitions Applicant would seek de novo entry into the marapproved through October 31, 1973, including five ket. In the Board's judgment, there would be no new acquisitions approved by the Board on Sep- elimination of substantial potential competition tember 28, 1973.) Bancorp, through its four through Applicant's acquisition of Bancorp's banking subsidiaries, controls $65.7 million in Rocky Ford subsidiary. deposits in the State and ranks as the ninth largest Bancorp's fourth banking subsidiary is the State banking organization in Colorado. The acquisition Bank of Greeley ("State Bank"), (deposits of $2.8 of Bancorp would increase Applicant's total de- million), the smallest of six banks in Greeley. posits to $508 million, or 8.4 per cent of the total Applicant's nearest banking subsidiary is located commercial bank deposits in the State. Applicant in Denver, 54 miles away; and there is no existing would remain the fifth largest banking organization competition between Applicant's banking subsidiin Colorado, controlling a statewide network of aries and the State Bank of Greeley. Since the ten banks. other five banks in Greeley are subsidiaries of the Bancorp's two subsidiary banks in the Colorado State's three largest holding companies and since Springs banking market control $56.6 million in the area is still in large part agricultural, it is not deposits which represents 12.7 per cent of the total a promising market for a de novo expansion. commercial bank deposits in this market. Bancorp Applicant's nonbank financial subsidiary, Emranks as the fourth largest of 15 banking organi- pire Savings and Loan (assets of $307.6 million), zations in the market. Applicant's nearest banking has a small office in Greeley. Empire's Greeley or nonbank financial subsidiary is 70 miles away office has total savings deposits of $13.2 million in Denver, and it does not appear that the proposed and ranks second of the savings and loan compa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 41 nies in Greeley. There is little direct competition the slight adverse competitive effects of the between Empire and State Bank, however. State proposed acquisition and that the proposed trans- Bank's size and inability to extend real estate loans action is in the public interest and should be on a long term basis precludes it from any signifi- approved. cant mortgage lending, which is Empire's main On the basis of the record, the application is activity. Thus, the proposed indirect acquisition approved for the reasons summarized above. The of State Bank will not result in the elimination transaction shall not be made (a) before the thirof any significant existing competition. tieth calendar day following the effective date of State Bank may eventually increase in size and this Order or (b) later than three months after the develop into an active mortgage lender, but Ap- effective date of this Order unless such period is plicant must divest its interest in Empire by 1980 extended for good cause by the Board or by the unless the Board approves retention of such inter- Federal Reserve Bank of Kansas City pursuant to est prior to that date. It appears unlikely that any delegated authority. significant potential competition between State By order of the Board of Governors, effective Bank and Empire will be eliminated through con- December 5, 1973. summation of the proposal. Empire has no offices Voting for this action: Chairman Burns and Governors and does not compete in the other markets in which Sheehan, Bucher, and Holland. Voting against this action: Bancorp's subsidiary banks are located. Governors Mitchell and Brimmer. Absent and not voting: The financial condition of Applicant and its Governor Daane. subsidiaries is satisfactory. Bancorp's need for (Signed) CHESTER B. FELDBERG, funds for debt servicing, however, has not permit- [SEAL] Secretary of the Board. ted sufficient retention of earnings by Bancorp's two Colorado Springs banks to permit them to DISSENTING STATEMENT OF maintain capital at adequate levels. In view of GOVERNOR MITCHELL Applicant's commitment to replace $1.8 million I would deny the application by D. H. Baldwin of Bancorp's debt with equity capital and to pro- Company to acquire Central Colorado Bancorp, vide an additional $1.7 million to Bancorp to repay Inc. ("Bancorp"). It is my view that the proposed further indebtedness, the Board finds that financial acquisition of Bancorp is without the positive factors lend weight to approval of this application. public interest factors necessary to outweigh the There is no evidence indicating that the major transaction's adverse effects on competition. There banking needs of the Colorado Springs, Greeley, is no showing that Bancorp's affiliation with Apand Rocky Ford areas are not being adequately plicant would benefit the convenience and needs met by the existing institutions serving these marof the communities Bancorp serves in such a kets. Applicant has the capability and has exmanner as to offset the elimination of one of the pressed the desire, however, to provide the capital few local multibank organizations which competes for further improvements in the Bancorp subsidieffectively against the State's larger multibank aries, improvements which are presently limited holding companies. by Bancorp's capital position. Both of Bancorp's The majority recognizes that Applicant has the Colorado Springs subsidiaries have expressed a capability, proximity, and interest to enter the need for building expansion programs which Apattractive and expanding Colorado Springs market plicant could provide. Applicant also intends to de novo; and, therefore, potential competition beprovide a unified and expanded computer program tween Applicant and Bancorp's lead bank would for all its subsidiaries. It should also be in position be eliminated. In addition, the proposed acquisito provide the necessary expertise for such spetion will eliminate the ninth largest banking orgacialized services as trust services, agricultural nization in the State, and one of the nine multibank leasing, and mortgage lending. In addition, Aporganizations in Colorado, as an independent plicant can assist the smaller subsidiaries of Bancompetitor. corp by handling an increased volume of overline Section 3(c)(2) of the Bank Holding Company participation loans. Considerations relating to the Act (12 U.S.C. 1842(c)(2)) provides that the convenience and needs of the communities to be Board may approve a proposal having such subserved lend weight to approval of the application. stantial anticompetitive consequences only if the It is the Board's judgment that considerations adverse effects are: relating to banking factors and convenience and needs of the communities to be served outweigh . . . clearly outweighed in the public interest by the probable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN • JANUARY 1974 effect of the transaction in meeting the convenience and needs served." Accordingly, I would deny the applicaof the community to be served. tion. In my opinion, the financial considerations relied upon by the majority as positive public interest DISSENTING STATEMENT OF factors are insufficient to counterbalance the ad- GOVERNOR BRIMMER verse competitive effects of the proposed acquisition. I would deny the application by D. H. Baldwin Growth and earnings by Bancorp indicate it is Company to acquire Central Colorado Bancorp, an able competitor. At the same time, the rapid Inc. ("Bancorp") and, thereby, to acquire indigrowth of its lead bank has strained the capital rectly four additional banks in Colorado. My views position of that bank, and the cash purchase of with respect to the expansion of D. H. Baldwin its Rocky Ford subsidiary has forced Bancorp to Company as a multibank holding company while incur significant debt. However, Bancorp recently it remains a manufacturing conglomerate have issued a $1.5 million, 10-year capital debenture been set forth in my dissenting statement to the to temporarily alleviate the need for capital funds, Board's Order of September 28, 1973, wherein and its earnings appear sufficient to continue a Applicant was permitted to acquire five additional satisfactory amortization of this debt. banks in Colorado (1973 Federal Reserve BULLE- Bancorp's earnings record over the past two TIN 752). I have held consistently that the opporyears places it among the top 50 per cent of all tunities for holding companies to engage in nonsimilarly sized banking organizations in the Tenth banking activities authorized by Congress through Federal Reserve District. The net income per- the 1970 Amendments to the Bank Holding Comformance of its lead bank in Colorado Springs over pany Act do not give Applicant the privilege to the same period places it in the upper 25 per cent expand as a multibank holding company while of all Tenth District Banks of similar size. In retaining sizable nonbanking interests. addition, the strong management of Bancorp's I dissented to the Board's determination of June smaller bank subsidiaries enhances the outlook for 14, 1973, that Applicant's activities relating to its a more significant contribution to Bancorp's con- musical instruments business be accorded indefisolidated income from these subsidiaries. nite grandfather privileges (1973 Federal Reserve Bancorp's strong earning record is evidence of BULLETIN 536). I still believe the history of the its ability to manage its outstanding debt. It also Act indicates the intention of Congress to keep is an indication that Bancorp, under favorable the business of banking separate from other commarket conditions, could float an issue of equity mercial enterprises and that Applicant, therefore, securities to provide further capital. Thus, any should be required to decide whether it wants to financial difficulties which Bancorp might experi- be a bank holding company or whether it wishes ence can be remedied through the bank supervisory to be in the manufacturing business. Since Appliprocess without resort to an acqusition—such as cant's further expansion as a multibank holding proposed here—under the Bank Holding Company company through this proposed acquisition is con- Act. trary to the aim of Congress in passing the Act, The evidence indicates that Bancorp can con- I would deny this application. tinue to be a strong regional competitor without In addition, I concur with Governor Mitchell's affiliation with a larger banking organization. It statement that the acquisition of Bancorp is withcan be expected to enter additional Colorado mar- out the positive public interest factors necessary kets. All of the advantages which Applicant claims to outweigh the transaction's adverse effects on it can provide through this acquisition can eventu- competition. The proposed acqusition will result ally be provided by Bancorp itself, perhaps on a in the elimination of potential competition between somewhat slower timetable. I can find no over- Applicant and Bancorp's lead bank. It will mean whelming need for such improvements (a building the elimination of the ninth largest banking orgaexpansion program or a greater volume of overline nization in the State—and one of nine multibank participation loans) on an immediate basis as the organizations in Colorado—as an independent majority seems to contemplate. competitor. It will also permit Applicant (the only In short, I conclude that the anticompetitive banking organization in the State to have the strong effects of this proposal are not outweighed by "the competitive advantage of affiliation with a savings probable effect of the transaction in meeting the and loan association) to exploit this advantage convenience and needs of the community to be through further expansion. [See my dissent to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 43 Board Order of September 28, 1973 (1973 Federal FIRST INTERNATIONAL BANCSHARES, Reserve BULLETIN 752), for further discussion of INC., DALLAS, TEXAS this point.] In my opinion, the financial considerations relied upon by the majority as positive ORDER DENYING ACQUISITION OF BANK public interest factors under § 3(c)(2) of the Act First International Bancshares, Inc., Dallas, are insufficient to counterbalance the adverse Texas, a bank holding company within the meancompetitive efects of the proposed acquisition. ing of the Bank Holding Company Act, has ap- Although the rapid growth of Bancorp's lead plied for the Board's approval under § 3(a)(3) of bank has strained the capital position of that bank the Act (12 U.S.C. 1842(a)(3)) to acquire all of and the cash acquisition of its Rocky Ford subsid- the voting shares (less directors' qualifying shares) iary has forced Bancorp to incur significant debt, of the successor by merger to Citizens First Nathe favorable earnings record of Bancorp is an tional Bank of Tyler, Tyler, Texas ("Bank"). The indication that it can manage these problems. Over bank into which Bank is to be merged has no the last two years, Bancorp's lead bank in Colo- significance except as a means to facilitate the rado Springs has ranked in the upper 25 per cent acquisition of the voting shares of Bank. Accordof all Tenth District Banks of similar size in terms ingly, the proposed acquisition of shares of the of its net income performance. The strong man- successor organization is treated herein as the agement of Bancorp's other subsidiary banks gives proposed acquisition of the shares of Bank. every indication that they will be able to make' Notice of the application, affording opportunity a more significant contribution to Bancorp's con- for interested persons to submit comments and solidated income in the future. views, has been given in accordance with § 3(b) Moreover, I have consistently held that it is not of the Act. The time for filing comments and views proper to use the Act as a means to acquire banks has expired, and none has been timely received. simply because they are experiencing some finan- The Board has considered the application in light cial difficulties. I stated in my dissents to the of the factors set forth in § 3(c) of the Act (12 applications of State Street Boston Financial Cor- U.S.C. 1842(c)). poration to acquire Union National Bank (1973 Applicant is the largest banking organization Federal Reserve BULLETIN 526) and D. H. Bald- and bank holding company in Texas, and has been win Company to acquire five Colorado banks following an aggressive program of expansion (1973 Federal Reserve BULLETIN 752) that I through the acquisition of subsidiary banks. The would look to other bank supervisory agencies to current phase of Applicant's expansion program remedy such financial problems. Accordingly, any involves entry into a number of the secondary difficulties which Bancorp might experience in SMS A markets1 in Texas through acquisition of maintaining adequate capital levels or amortizing a major bank in each market it plans to enter. This its debt can and should be handled by the bank pattern is evidenced by the recent acquisitions of supervisory process. Applicant as shown on the attached Table I. The evidence indicates that Bancorp can con- Section 3(c) of the Act provides, in part, that tinue to be a strong regional competitor without the Board not approve any proposed acquisition, affiliation with a larger holding company. It can the effect of which, in any section of the country, be expected to enter other Colorado markets. I can may be substantially to lessen competition or to find no advantages which Applicant would provide tend to create a monopoly, or which in any other which would outweigh the adverse competitive manner would be in restraint of trade, unless the effects of this proposal. Board finds that the anticompetitive effects of the Since this proposed acquisition would permit the transaction are clearly outweighed in the public expansion of a multibank holding company which interest by the probable effect of the transaction retains significant manufacturing and other non- in meeting the convenience and needs of the combanking interests in contravention of Congres- munity to be served. [Emphasis added.] sional intent in enacting the 1970 Amendments to In 1970, the five largest banking organizations the Bank Holding Company Act and since the adverse competitive effects of the proposal are not outweighed by "the probable effect of the transaction in meeting the convenience and needs of 'A secondary SMSA market in Texas is defined as an SMSA the community to be served" as required by § market other than Texas' four largest SMSA markets, i.e., other than the Dallas, Fort Worth, Houston, and San Antonio 3(c)(2) of the Act, I would deny the application. SMSA markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN • JANUARY 1974 in Texas,2 held aggregate deposits of approxi- significant existing competition would be elimimately $5.8 billion, or 22 per cent of the total nated between Bank and Applicant's banking subcommercial bank deposits in the State. Today, the sidiaries upon consummation of this proposal. five largest banking organizations in the State The three largest of the nine banks in the Tyler (each a multi-bank holding company)3 hold aggre- market hold 82 per cent of the area's total comgate deposits approximating $10.6 billion, or al- mercial bank deposits, and 75 per cent of the area's most 31 per cent of the total commercial bank total IPC deposits in accounts of $100,000 or less. deposits in the State.4 This increase in the concen- Bank presently controls 30 per cent of the total tration of the State's commercial bank deposits commercial bank deposits in the Tyler market, held by the largest banking organizations in Texas while the second and third largest banks control, represents a trend which, in the Board's view, has respectively, 29 and 23 per cent of such deposits. proceeded to an extent that is a cause for concern. In addition, these three banks together control a There are presently some 24 multi-bank holding sizable block of the voting shares of the fourth companies in Texas, which together control $17 largest bank in the Tyler market.5 The future billion in deposits, or 49 per cent of all commercial prospects of the Tyler market appear favorable in bank deposits in the State. The five largest of these view of the facts of record, including the populabanking organizations control amost two-thirds of tion growth in the market; Tyler's geographical all deposits controlled by the State's bank holding position as the hub for an extensive oil and lumcompanies. The Board is concerned over the bering area; and healthy deposit gains in all five present size disparity among the State's bank Tyler banks, with local economic conditions faholding companies and the likelihood that this voring a continuation of this trend. It is in this disparity may become greater in the future by context of a favorable economic market that the virtue of the present acquisition policy. The Board potential competitive effects of Applicant's prois not required to await the development of undue posal must be considered. concentration among bank holding companies in The available evidence indicates clearly that Texas before it intervenes. Indeed, the underlying entry into the smaller metropolitan areas by the purpose of the Clayton Act, as incorporated in the State's largest banking organizations through ac- Bank Holding Company Act, is to break the force quisition of the larger independent commercial of a trend toward undue concentration before it banks in these areas will increase present levels gathers momentum. (See Brown Shoe Co. v. of deposit concentration. It is also apparent that United States, 370 U.S. 294, 317-18). It is, these markets will only become less concentrated therefore, the tendency toward undue concentra- if the major holding companies enter de novo or tion the Board must guard against when viewing via foothold acquisitions, thereby creating addithe probable effect of an acquisition upon future tional competition in the markets. competition in a banking market. The Board concludes that this proposal, for this Applicant's proposal would affiliate the largest organization, in light of previous acquisitions, commercial bank in the Tyler SMSA banking would have significant adverse effects on potential market with Applicant's 15 present subsidiary competition with respect to the Tyler SMSA banks (with aggregate deposits of $2.8 billion) and banking market and throughout the State. Accord- Applicant's four nonsubsidiary banks (with aggre- ingly, it is the Board's view that the competitive gate deposits of $41.9 million). There is no sig- factors weigh against approval of this application. nificant existing competition between Bank and The financial and managerial resources and fu- Applicant's present and prospective banking sub- ture prospects of Bank, and of Applicant and its sidiaries. Applicant's banking subsidiary closest to present subsidiary banks, are regarded as satis- Bank is located in Dallas, about 104 miles from factory and consistent with approval of the appli- Tyler. Accordingly, the Board concludes that no cation. However, these factors do not outweigh the anticompetitive effects connected with this proposal. There is no indication in the record that 2Republic National Bank of Dallas; First National Bank of Dallas; First City National Bank of Houston; Texas Commerce Bank, N.A.; Bank of the Southwest. ,3First International Bancshares, Inc.; First City Bancorpora- 5Bank controlled 17.8 per cent of the voting shares of tion of Texas, Inc.; Republic of Texas Corporation; Texas Southside State Bank, Tyler, Texas, through Bank's Employ- Commerce Bancshares, Inc.; Southwest Bancshares, Inc. ees Pension Trust Fund; however, Applicant and Bank were 4Deposit figures are as of December 31, 1972, and reflect committed to the disposition of these shares by December 3, approved and pending acquisitions as of November 15, 1973. 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 45 the banking needs of the relevant market are not DISSENTING STATEMENT OF being met. Accordingly, although considerations GOVERNORS DAANE AND SHEEHAN relating to the convenience and needs of the communities to be served are consistent with approval, We would approve the application of First Inthey do not outweigh the adverse competitive ternational Bancshares, Inc., to enter the Tyler effects of the proposal. It is the Board's judgment SMSA banking market through acquisition of the that consummation of the proposed acquisition Citizens First National Bank of Tyler. would not be in the public interest and that the While the instant proposal would give Applicant application should be denied. control of the largest bank in the Tyler banking On the basis of the record, the application is market, we note that each of the three largest banks denied for the reasons summarized above. in this market are of near-equal size. Thus, ap- By order of the Board of Governors, effective proval would not give Applicant a dominant posi- December 28, 1973. tion in the market nor raise the barriers to entry for bank holding companies now outside this mar- Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Bucher, and Holland. Voting against this ket. We believe the introduction of a strong and action: Governors Daane and Sheehan. competitive holding company such as Applicant (Signed) THEODORE E. ALLISON, in the Tyler banking market will foster increased [SEAL] Assistant Secretary of the Board. competition there. Furthermore, Citizens has divested a substantial block of shares in the fourth largest bank in order to eliminate a potentially adverse factor from the consideration of this ap- TABLE 1* plication; we deem this action to be procompetitive. Recent Acquisitions of First International Bancshares, Inc. There are significant benefits that would flow to the banking public through approval of this Three proposal. Applicant has specialized divisions Bank Bank Size Con- within its organization which deal with data pro- Total Market Number of cen- cessing, international trade financing, and the Name of Bank SMSA Deposits Share Market Banks in tration unique problems of the petroleum industry. Bank (Date of Approval) Market ($ Millions) (%) Rank Market (%) and its customers would be able to draw upon Temple National Applicant's expertise in each of these areas. Bank, Temple Killeen- Moreover, the entire community would benefit Texas (5/25/73) Temple 56.1 21.4 1st 15 60 The State National from Bank's increased lending capacity. Thus, we Bank of Denison, conclude that the convenience and needs of the Denison, Texas Sherman- (6/25/73) Denison 37.0 16.4 3rd 13 63 Tyler area would be significantly improved upon The First National approval of this proposal, and that the benefits Bank of Odessa, derived from the acquisition outweigh whatever Odessa, Texas Midland- (7/3/73) Odessa 54.0 11.1 3rd 9 73 anticompetitive effects that the majority find exist. The First National It is apparent from reviewing the recent growth Bank of Harlingen, Brownsville- Harlingen, Texas Harlingen- of other banking organizations in Texas that Ap- (7/3/73) San Benito 62.7 23 2nd 9 66 plicant's competitors have been equally active in Citizens National the acquisition of banks in secondary SMSA's. Bank in Abilene, Abilene, Texas However, none of the five largest bank holding 9/17/73) Abilene 88.1 26.4 2nd 15 73 companies in Texas has acquired a dominant posi- First Hutchingstion in a secondary SMSA, nor have their acquisi- Sealy National Bank of Galves- tions to date foreclosed the opportunity for other ton, Galveston, Galveston- State-wide or regional bank holding companies to Texas (9/18/73) Texas City 82.7 24.2 1st 13 57 develop in Texas. Citizens First National Bank of Finally, the majority states: "There is no indi- Tyler, Tyler, cation in the record that the banking needs of the Texas (present proposal) Tyler 86 30 1st 9 82 relevant market are not being met." We believe, however, that approval would serve—in a modest way—to foster the economic development of * All banking data are as of December 31, 1972, and reflect acquisitions approved by the Board through September 30, 1973. Texas, as well as the Southwest region of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN • JANUARY 1974 United States, by encouraging the development of throughout Florida.1 Upon acquisition of Miami "local" institutions which are capable of serving Bank (deposits of $10.6 million), Applicant's the growing domestic and international interests share of deposits in the State would increase by of Texas corporations not now being met by Texas 0.1 percentage point and its rank among banking banking institutions. The large industrial organi- organizations in the State would be unchanged.2 zations in Texas have a strong need for the kind Miami Bank is located in the Greater Miami of financial services that can best be fulfilled by Banking Market which includes all of Dade large wholesale banking organizations. The devel- County and portions of southern Broward County, opment in Texas, of large wholesale banking in- Florida. Miami Bank controls approximately 0.3 stitutions, capable of competing with similar insti- per cent of the deposits in commercial banks in tutions in the major money centers, can only be the market. Three of Applicant's subsidiary banks fostered through acquisitions of smaller banks. are located in this market and control a total of Such acquisitions will not injure competition at approximately $227 million of deposits, reprethe retail level in local markets. It is estimated senting approximately 4.6 per cent of deposits in that the State's banking industry is losing a billion commercial banks in the Miami market. Applidollars a year in potential business to out-of-State cant's two subsidiary banks closest to Miami Bank banks, primarily because Texas banks are not large are located, respectively, approximately three enough to compete effectively with the major miles north and eight miles south of Miami Bank. money center banks and cannot provide loans and Some direct competition exists between Miami services adequate to meet demand.1 We believe Bank and all three of Applicant's Miami area that the continued growth of Texas banking orga- subsidiary banks, some direct competition would nizations is necessary if they are to compete ef- be eliminated as a result of consummation of fectively in the nation's major money centers. Applicant's proposal. Miami Bank derives more than 65 per cent of its total deposits and approximately 60 per cent of its total loans from the area FLORIDA NATIONAL BANKS OF FLORIDA, served by Applicant's second largest subsidiary JACKSONVILLE, FLORIDA bank, Florida National Bank and Trust Company, Miami, Florida (deposits of about $164 million). ORDER APPROVING ACQUISITION OF BANK In the circumstances of th is matter, particularly Miami Bank's relatively small size, and the large Florida National Banks of Florida, Jacksonville, number of competing banks located in the Miami Florida, a bank holding company within the area, elimination of Miami Bank as a competitor meaning of the Bank Holding Company Act, has of Applicant would have only a slightly adverse applied for the Board's approval under § 3(a)(3) effect on existing competition in this market and of the Act (12 U.S.C. 1842(a)(3)) to acquire 90 a minimal effect on the concentration of banking per cent or more of the voting shares of Northside resources in this area. Moreover, acquisition of Bank of Miami, Miami, Florida ("Miami Bank"). Miami Bank by Applicant may serve to increase future competition among the largest banking or- Notice of the application, affording opportunity ganizations in the Miami area where Applicant for interested persons to submit comments and ranks seventh, with control of approximately 5 per views, has been given in accordance with § 3(b) cent of deposits. The largest banking organization of the Act. The time for filing comments and views in this market controls more than 23 per cent of has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 'All banking data are as of December 31, 1972. U.S.C. 1842(c)). 2By Notice dated July 5, 1973, the Board informed the Trustees of the Alfred I. duPont Testamentary Trust that the Applicant, the fifth largest banking organization Board had made a preliminary determination that the Trust in Florida has deposits of $1,186.1 million repre- exercised control and/or a controlling influence over Applicant. senting 6 per cent of total deposits in commercial Upon the Trust's failure to contest this determination, and after notice of its willingness to divest its share holdings in Applibanks in the State, and controls 32 banks located cant, the Board ordered the Trust to divest its holdings in Applicant (constituting approximately 24.7 per cent of Applicant's outstanding voting shares) as early as possible but in no case later than December 31, 1974. (Determination and Order for Diverstiture of Control dated October 15, 1973.) 'Federal Reserve Bank of Dallas Business Review, October Details of the Trust's divestiture plan have not yet been 1973, p. 7. approved by the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 47 bank deposits and each of the next two largest On the basis of the record, the application is organizations controls approximately 9 per cent of approved for the reasons summarized above and bank deposits. subject to prior approval by the Board of a plan On the basis of the record before it, the Board of divestiture by the duPont Trust of control of concludes that consummation of the proposal Applicant. In addition to the condition so imposed, herein would not substantially lessen competition the transaction shall not be made (a) before the nor have a significant adverse effect on competition thirtieth calendar day following the effective date and may, in fact, have a beneficial effect upon of this Order or (b) later than three months after the development of future competition among the effective date of th is Order, unless such period banking organizations in the Miami area. is extended for good cause by the Board, or by The financial condition and managerial re- the Federal Reserve Bank of Atlanta pursuant to sources and prospects of Applicant and its subsid- delegated authority. iary banks are regarded as generally satisfactory. By order of the Board of Governors, effective These factors as they relate to Miami Bank are December 20, 1973. regarded as consistent with approval. Affiliation Voting for this action: Chairman Burns and Governors with Applicant should enable Miami Bank to draw Brimmer, Sheehan, Bucher, and Holland. Absent and not upon the additional financial and managerial re- voting: Governors Mitchell and Daane. sources of Applicant. Although there is no evi- (Signed) CHESTER B. FELDBERG, dence in the record that the banking needs of the [SEAL] Secretary of the Board. Miami area are going unserved, consummation of the proposed acquisition should enable Miami Bank to expand the qu ality and range of its CAPITAL NATIONAL CORPORATION, banking services, including consumer finance, fi- HOUSTON, TEXAS nancial counseling, computer and trust services presently offered by Applicant's subsidiary banks. ORDER APPROVING MERGER OF BANK HOLDING Considerations relating to the convenience and COMPANIES needs of the Miami area are consistent with ap- Capital National Corporation ("Applicant"), proval . Houston, Texas, a bank holding company within In light of the Board's Determination and Order the meaning of the Bank Holding Company Act, for Divestiture of Control of Florida National has applied for the Board's approval under § Banks of Florida, Inc., issued on October 15, 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to merge 1973, requiring the Alfred I. duPont Trust to divest with Federated Texas Bancorporation, ("Fedits share holdings of Applicant, an acquisition by erated"), San Antonio, Texas, under the certifi- Applicant would be regarded by the Board as an cate of incorporation of Applicant. The name of acqu isition by the duPont Trust, a "company" the corporation will be changed to Federated Capengaged in nonpermissible activities under the ital Corporation on the effective date of the provisions of the Bank Holding Company Act. merger. However, the duPont Trust, through its Trustees, Notice of the receipt of the application, affordhas formally committed itself to divest its holdings ing an opportunity for interested persons to submit of shares of Applicant as soon as possible but in comments and views, has been given in accorno event later than December 31, 1974; and purdance with § 3(b) of the Act. The time for filing suant to the Board's Determination and Order of comments and views has expired, and the Board October 15, 1973, the duPont Trustees are re- has considered the application and all comments quired to submit to the Board a plan of divestiture received in light of the factors set forth in § 3(c) containing provisions to assure termination of the of the Act (12 U.S.C. 1842(c)). control and/or the controlling influence found to Applicant, the twenty-third largest banking orexist. In view of the duPont Trust commitment ganization in Texas, controls one bank with deto divest control of Applicant and in light of the posits of about $219 million, representing .6 per Board's requirement that an appropriate plan of cent of total commercial bank deposits in the divestiture be submitted to the Board, the Board State.1 Federated controls three banks with total concludes that the proposed acquisition may go deposits of approximately $580 million and ranks forward, provided, however, that the transaction shall not be executed prior to approval by the Board of a plan of divestiture by the duPont Trust deposit data are as of June 30, 1973, and reflect acquisitions of control of Applicant. approved through October 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN • JANUARY 1974 as the ninth largest banking organization in Texas, eludes, therefore, that the competitive factors are controlling 1.7 per cent of the total commercial consistent with, and lend some weight toward, deposits in the State. Upon consummation of the approval of the application. proposal, the resulting holding company would The financial condition, managerial resources, control about 2.3 per cent of total commercial bank and prospects of Applicant, Federated and their deposits in the State, making it the seventh largest subsidiary banks are considered to be generally holding company in Texas. satisfactory. Applicant has committed itself to Applicant's one subsidiary bank, Capital Na- injecting an additional $2 million in the capital tional Bank, is located in Houston where it is the account of Capital National Bank, which should sixth largest bank in the market, controlling 2.3 have the effect of strengthening the overall finanper cent of the market deposits.2 Federated's sub- cial condition of the resulting bank holding comsidiary banks operate in three distinct markets. pany. These factors, therefore, are regarded by the Corpus Christi State National Bank is the largest Board as being consistent with approval of the of the 26 banks competing in the Corpus Christi proposal. market and holds about 31.2 per cent of the total There is no evidence in the record that the deposits in the market. The Alamo National Bank banking needs of the markets involved are not of San Antonio, which controls about 10 per cent being adequately served. However, the internaof the deposits in the San Antonio SMSA, is the tional financial capabilities of Applicant will be third largest bank in that market. American Na- expanded through the combination of Alamo National Bank of Austin is the fourth largest bank tional Bank's Latin American expertise and Capiin its market and holds about 15.2 per cent of tal National's European experience. Considtotal deposits. erations relating to the convenience and needs of Consummation of the proposed merger would the communities to be served are, therefore, connot appear to have an adverse effect on existing sistent with approval. It is the Board's judgment competition since the distance separating Appli- that execution of the proposed merger is in the cant's subsidiary bank from Federated's closest public interest and that the application should be subsidiary is about 160 miles. In addition, it does approved. not appear that the proposal will have significantly On the basis of the record, the application is adverse effects on potential competition. Applicant approved for the reasons summarized above. The does not appear to possess the resources for transaction shall not be made (a) before the thirmeaningful entry into any of the markets now tieth calendar day following the effective date of served by any of the banking subsidiaries of Fed- this Order or (b) later than three months after the erated. While Federated probably could gain effective date of th is Order, unless such period access to the Houston market through means other is extended for good cause by the Board, or by than its combination with Applicant, this factor the Federal Reserve Bank of Dallas pursuant to alone does not provide sufficient grounds for denial delegated authority. in view of the large number (over 130) of banks By order of the Board of Governors, effective in the Houston market, as well as the fact that December 28, 1973. Applicant does not occupy a dominant position in Voting for this action: Vice-Chairman Mitchell and Goverthat market. On the other hand, the proposed nors Daane, Brimmer, Sheehan, Bucher and H olland. Absent merger should result in the development of a new and not voting: Chairman Burns. state-wide holding company with the financial re- (Signed) THEODORE E. ALLISON, sources to compete effectively with the State's [SEAL] Assistant Secretary of the Board. largest bank holding companies. The Board con- CONCURRING STATEMENT OF 2Applicant also owns approximately 24 per cent of North- GOVERNOR BRIMMER west National Bank, Houston, Texas, (deposits approximately $25 million). The Board's action herein does not constitute I concur in the Board's action approving Capital a determination that this bank is or may become a subsidiary National Corporation's application to merge with of Applicant; nor does the action herein indicate that the Board Federated Texas Bancorporation. However, I want would in the future permit Applicant to acquire directly or indirectly any additional shares of this bank. However, the to emphasize one of the factors relied upon by determination herein does not preclude the Board from deter- the Board which I feel strongly supports our apmining that Applicant exercises a controlling influence over proval of this application and distinguishes it from the management or policies of the bank within the meaning of § 2(a)(2)(C) of the Act. some other proposals which have arisen in Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 49 I refer specifically to the fact that the surviving merged has no significance except as a means to corporation will be a medium-sized holding com- facilitate the acquisition of the voting shares of pany formed by large—but by no means the larg- Bank. Accordingly, the proposed acquisition of est—banks in a State where significantly larger shares of the successor organization is treated banking organizations have been mainly responsi- herein as the proposed acquisition of the shares ble for expansion. of Bank. An examination of the deposit data for the State Notice of the application, affording opportunity of Texas indicates that each of the four largest for interested persons to submit comments and holding companies controls between 5 per cent and views, has been given in accordance with § 3(b) 7.5 per cent of the total commercial deposits. Each of the Act. The time for filing comments and views of the next five largest holding companies controls has expired, and the Board has considered the between 2 per cent and 3 per cent of total com- application and all comments received in light of mercial deposits. This second group includes the the factors set forth in § 3(c) of the Act (12 U.S.C. new Federated Capital Corporation which will 1842(c)). control approximately 2.3 per cent of total com- Applicant, the fifth largest banking organization mercial deposits. The combination of Federated's in Virginia, controls nine banks with aggregate financial resources and Capital National's location deposits of approximately $840 million, reprein the Houston market should enable the new senting 7.4 per cent of the total deposits of comholding company to compete vigorously with the mercial banks in the State.1 Approval of this larger banking organizations. application would not significantly increase Appli- I would contrast this merger with the Board's cant's share of Statewide deposits or change Apapproval of the application of First International plicant's ranking among Virginia banking organi- Bancshares to become a bank holding company zations. through the acquisition of the shares of the second Bank ($5.6 million in deposits) is the ninth largest bank in Dallas and the fifth largest bank largest of 15 banks in the Roanoke banking marin Houston. (1972 Federal Reserve BULLETIN ket, which is approximated by the Roanoke 1028). SMSA, and controls .8 per cent of deposits in that In my dissent from the Board's approval of that market. Bank's main office and only branch are application I expressed my belief that any action located in Botetourt County, which comprises the cementing the ties among the large banks in the northeast part of the Roanoke SMSA. Although State's two largest financial centers would encour- Applicant's acquisition of Bank would increase its age a concentration of resources in the banking share of market deposits by only .8 percentage industry. I stated that I favored the continuing points, this would aggravate the high level of independence of banks with deposits of $100 mil- deposit concentration in the market (the four larglion or more or, alternatively, the formation of est banking organizations presently control over their own holding companies. Therefore, the ap- 85 per cent of market deposits). Furthermore, proval of this application is consistent with the Applicant's lead bank, First National Exchange opinion expressed in my dissent. Bank ("Exchange Bank") controls 43.6 per cent of total market deposits and is clearly the predominant banking organization in the Roanoke SMSA. ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT The second and third largest banks in the market are less than one-half and one-third the size of Exchange Bank, controlling 18.6 per cent and 13.6 DOMINION BANKSHARES CORPORATION per cent of market deposits, respectively. Ex- ROANOKE, VIRGINIA change Bank is restricted from branching into Botetourt County; however, Exchange Bank has ORDER DENYING ACQUISITION OF BANK 15 banking offices within 20 miles of Bank's Dominion Bankshares Corporation, Roanoke, branch, with the closest office being 4.7 miles from Virginia, a bank holding company within the Bank's Daleville branch with no other banking meaning of the Bank Holding Company Act, has office intervening. It appears that Exchange Bank applied for the Board's approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire all of the voting shares of the successor by merger 'All banking data are as of June 30, 1973, and reflect bank to The Bank of Fincastle ("Bank"), Fincastle, holding company formations and acquisitions approved by the Virginia. The bank into which Bank is to be Board through November 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN • JANUARY 1974 derives a significant dollar volume of loans and By order of the Board of Governors, effective deposits from Bank's primary service area. Al- December 21, 1973. though the loans and deposits derived from Bank's Voting for this action: Chairman Burns and Governors primary service area represent a relatively small Daane, Brimmer, Bucher, and Holland. Absent and not voting: percentage of Exchange Bank's total loans and Governors Mitchell and Sheehan. deposits, they represent, respectively, approxi- (Signed) CHESTER B. FELDBERG, mately 110 and 87 per cent of the total loans and [SEAL] Secretary of the Board. deposit dollar volume that Bank derives from its own primary service area. Further, Bank derives FIRST NATIONAL CITY CORPORATION approximately 8 per cent of its deposits and 4 per NEW YORK, NEW YORK cent of its loans from Exchange Bank's service area. Accordingly, on the basis of these and other ORDER DENYING RETENTION OF ADVANCE facts of record, the Board concludes that signifi- MORTGAGE CORPORATION cant existing competition would be eliminated First National City Corporation, New York, upon consummation of this proposal. New York, a bank holding company within the The acquisition of Bank by a banking organi- meaning of the Bank Holding Company Act of zation not presently represented in this part of the 1956, has applied for the Board's approval, under Roanoke SMSA banking market, without the per- § 4(c)(8) of the Act and § 225.4(b)(2) of the centage of deposits that Applicant controls in this Board's Regulation Y, to retain all of the voting market, could have a beneficial effect on competi- shares of Advance Mortgage Corporation, Southtion in this area. The Board therefore finds that field, Michigan ("Advance").1 Advance engages it is likely that the proposed acquisition would in the origination and placement of 1-4 family have significant adverse effects on the relevant residential mortgage loans, loans on apartments banking market by increasing deposit concentra- and other income-producing properties, and contion and removing a banking alternative therein, struction loans; Advance also services mortgage by eliminating existing competition, and by fore- loans for institutional investors. Such activities closing the possibility that Bank could serve as have been determined by the Board to be closely a potential means of entry by other banking orga- related to the business of banking (12 CFR nizations not presently represented in the market. 225.4(a)(1) and (3)). Accordingly, competitive considerations require Notice of the application, affording opportunity denial of this application unless the anticompeti- for interested persons to submit comments and tive effects of the proposal are outweighed by views on the public interest factors, has been duly benefits to the public in meeting the convenience published (38 Federal Register 8193). The time and needs of the communities to be served. for filing comments and views has expired; and The financial and managerial resources of Ap- the Board has considered all comments received plicant and its subsidiaries, and Bank, are satis- in light of the public interest factors set forth in factory, and future prospects appear favorable. § 4(c)(8) of the Act (12 U.S.C. 1843(c)). Thus, banking factors are consistent with approval Applicant, a multibank holding company, is the but provide no significant support for such action. second largest banking organization in New York There is no evidence in the record to suggest that State, and the third largest nationally. Applicant the banking needs of the communities to be served controls the First National City Bank, New York, are not presently being met by existing financial New York ("Bank"), and six other commercial institutions. Although Applicant proposes to assist banks which, collectively, hold $15.5 billion of Bank in expanding and improving its services, it domestic deposits,2 representing 14.1 per cent of appears that none of the proposed additions or total deposits in commercial banks in New York improvements is of such import or benefit to the State. Applicant's total consolidated assets amount public that they would override the adverse effects to $34.4 billion; assets of Bank represent 97 per this proposal would have on competition in the Roanoke area. It is the Board's judgment that consummation of the proposed acquisition would not be in the public interest and that the application 'Such shares were purchased by Applicant in July, 1970, should be denied. and, under the provisions of § 4(a)(2) of the Act, may not be retained beyond December 31, 1980, without Board ap- On the basis of the record, the application is proval. denied for the reasons summarized above. 2Deposit data as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 51 cent ($33.5 billion) of this total.3 During the 5-year mortgage loans totalled $450 million. Its servicing period ending December 31, 1972, Applicant's1 volume had increased to $1.5 billion and it was consolidated assets increased by 76 per cent, con- then warehousing mortgage loans totalling $166.8 solidated net income by 96 per cent, domestic and million. This increased activity elevated Advance foreign deposits by 123 per cent, and total equity to the rank of the third largest mortgage company capital by 21 per cent. Although much of this in the United States. Moreover, based on data growth is attributable to Bank, Applicant has ac- provided by Applicant, it appears that Advance quired a number of firms during this period, in- enjoys a significant presence in each of the local cluding six commercial banks and two consumer markets in which it originates loans on 1-4 family finance companies. Applicant's nonbanking activ- residences as well as in the national markets for ities include leasing, factoring, and commercial the origination of construction loans and loans on financing. It appears that Applicant is a well-man- apartments and other income-producing properaged, growing (through both external and internal ties.5 expansion), profitable, and significant leader in Applicant, through its banking subsidiaries, commercial banking and finance in the United originates 1-4 family residential mortgage loans, States. primarily in New York State, and construction Advance was and is a profitable enterprise and loans and loans on apartments and other incomeone of the nation's major mortgage banking com- producing properties in many parts of the country. panies. It maintains 32 offices in 11 States and Applicant does not service mortgage loans for the District of Columbia, and is represented in 20 others; nor does Applicant own a mortgage banklocal markets.4 However, its competitive influence ing subsidiary other than Advance. At the time extends to at least 35 States and the District of of subject acquisition, Bank was Applicant's only Columbia where its loans originate from. In addi- commercial banking subsidiary. In 1969, Bank tion, at offices in Chicago, Illinois, and Detroit, originated $47 million of 1-4 family residential Michigan, Advance originated in 1969 (the last mortgage loans, $13.6 million of construction full year preceding acquisition) construction loans loans, and $3.1 million of loans on incomeas well as loans on income-producing property not producing properties. These figures increased to only in Illinois and Michigan, but also in Califor- $54 million, $38.7 million, and $6.3' million, nia, Oklahoma, Texas, Montana, and other distant respectively, for 1970, and to $90 million, $144.6 States. These same offices, in 1971, were broker- million, and $18.1 million, respectively, for 1971. ing long-term loans on income-producing proper- At the time of the acquisition, Bank originated ties located throughout the United States and in no 1-4 family residential mortgage loans in areas Canada. in which offices of Advance were located; and such In 1969 Advance was the fourth largest mort- is the case at the present time. However, Applicant gage company in the United States based upon then originated construction loans and loans on a servicing volume of approximately $1.2 billion. income-producing property on a nationwide basis During that year it originated a total volume of and continues to do so. Moreover, Applicant mortgage loans of approximately $282 million, of reports a substantial volume of business loans which $31 million were mortgages on income- outstanding in 16 of the cities in which Advance producing property, and $22.6 million were con- is presently represented.6 struction loans. Also in 1969, Advance warehoused mortgage loans having a total volume of $79.6 million. In 1971, the first full year following subject acquisition, Advance's originations of 5It appears, for example, that Advance's volume of originations of 1-4 family residential mortgage loans, in those local markets for which figures are available, is comparable with the volumes enjoyed by those mortgage company competitors of Advance which Applicant lists among Advance's principal •'Data as of December 31, 1972. competitors; and that such volumes place Advance among the 4 Such local markets are approximated by the various market leaders in most such areas. SMSA's in which Advance's offices are located. The local 6Based on figures provided by Applicant, the total of such market concept is useful for analysis of competitive effects loans, as of December 31, 1971, exceeded $883 million. In with respect to origination of 1-4 family residential mortgage addition, offices of Advance and of Acceptance Finance Corloans. Said concept is not applicable, however, in analysis poration, Applicant's consumer finance subsidiary, coexist in of competitive effects with respect to origination of con- six such cities. Moreover, Bank's San Francisco loan producstruction loans and of loans on apartments and other income- tion office, established in 1972, is capable of originating certain producing property, where relevant markets tend to be nation- mortgage loans that can also be originated by Advance's San wide in scope. Francisco area offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN • JANUARY 1974 At the time of the acquisition, no significant acquisition, Applicant would have entered some direct competition existed between Applicant and or all of the local mortgage banking markets served Advance in the origination of 1-4 family residen- by Applicant either de novo or by the acquisition tial mortgage loans, since 186 road miles separated of a smaller firm. The loss of such probable future Bank from Advance's closest office (Harrisburg, competition between a substantial potential entrant Pennsylvania). However, both Advance and Bank and a major competitor in various local markets competed in the origination of construction loans as well as national markets for certain loans conand loans on income-producing properties in the stitutes an adverse effect which weighs against national markets for such loans. In 1969, origina- approval of the application.9 tions by Advance of loans on income-producing The 1970 Amendments to the Bank Holding property amounted to about 1 per cent of the total Company Act direct the Board to consider, among of such originations by all mortgage companies possible adverse effects that could arise from the in the United States. Advance also enjoyed about affiliation of a bank holding company with a non- 1 per cent of the nationwide market for con- banking firm, the adverse effect stemming from struction loans. Bank's loan volume was smaller an undue concentration of resources. This specific than Advance's for both kinds of loans in 1969.7 adverse effect is of particular concern to the Board These percentages, although relatively small, in the instant application for, as noted, the acquishould be read in light of the fact that there are sition combined the nation's third largest banking approximately 800 mortgage banking firms in the organization with the fourth largest mortgage United States and only one such firm accounts for company in the country. The affiliation created a more than 2 per cent of the industry volume. financial organization with an immediate nation- Moreover, it is clear that the subject acquisition wide presence in both commercial banking and did eliminate some direct competition between mortgage banking. The dangers which Congress Applicant and Advance in the origination of both feared might arise from an undue concentration construction loans and loans on income-producing of financial resources would appear to be present property. The Board regards such loss of competi- through the combination of one of the country's tion as an adverse factor weighing against approval largest banking organizations with one of its largof the application. est mortgage bankers. Applicant's resources gave it the capability to As noted in the Conference Report accompanyenter each of the local markets for 1-4 family ing the 1970 Amendments, "the dangers of undue residential mortgages served by Advance at the concentration of resources include, but are not time of the acquisition.8 However, Applicant could limited to, specific competitive effects which are have entered such markets either de novo or by themselves relevant factors under the Act."10 The acquisition of a firm less substantial in size than Advance. It appears likely that, absent subject 9The Conference Report accompanying the 1970 Amend- 7Since the acquisition, both Advance and Bank have sub- ments, in discussing this factor, states: stantially increased their volume of such loans; and Bank's "Equally important will be adverse competitive effects volume of construction loans, in 1971, actually exceed that which may result from a bank holding company's acquisition of Advance. Between 1969 and 1971, however, Advance of a going concern with which it may not presently compete. accelerated its construction loan volume three times faster than One of the asserted justifications for permitting bank holding the industry as a whole. companies to engage in activities that the Board has determined "Applicant maintains that Bank and Advance serve different independently to be closely related to banking, is to permit product markets with respect to their originations of 1-4 family the introduction of new innovative and competitive vigor into residential mortgage loans, since Advance originates primarily these markets which could benefit therefrom. Where a bank FHA and VA loans, whereas Bank's originations are, for the holding company enters a market through acquisition of a major most part, conventional. We disagree. Available data indicate going concern, it may not have the incentive to compete that the effective rates (all costs, including the cost of FHA vigorously, thereby bringing the possible benefits into play, insurance) for conventional and for FHA loans are almost as it would immediately succeed to what it might consider identical, and the fluctuations in such rates tend to coincide. its fair share of the market. On the other hand, where a bank From the borrower's view point, the respective advantages and holding company enters a new market de novo, or through disadvantages of conventional, FHA and VA loans present acquisition of a small firm, as opposed to acquisition of a competitive alternatives and, accordingly, all such loans should substantial competitor, its desire to succeed in its new endeavor be regarded as reasonable substitutes for one another. This is more likely to be competitive. This legislation specificially conclusion is confirmed by recent developments within the emphasizes the importance of the manner in which a bank mortgage banking industry which, in early 1972, began to holding company may enter new activities. Such considerations increase its volume of conventional loan originations by so will be particularly important in the context of expansion by great a factor that, in February, 1973, total industry origina- bank holding companies into new geographic markets." H.R. tions of conventional loans exceeded all industry originations Rep. No. 91-1747, 91st Cong., 2d Sess. 17 (1970). of either FHA or VA loans. ,0H.R. Rep. No. 91-1747, 91st Cong., 2d Sess. 17 (1970). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 53 adverse competitive effects which are of concern Applicant has also claimed public benefits to the Board have been previously noted. Another through Applicant's recent authorization that perpossible danger—though not the only one—arising mitted Advance to originate and warehouse $30 from an undue concentration of financial resources million of mortgages without investor "take-out" lies in the potential for abuse of the power to grant commitments. Such a practice, Applicant maincredit, and thereby favor a holding company sub- tains, has a counter-cyclical effect on the flow of sidiary over its nonbanking competitiors. The funds into mortgage markets during tight money record herein indicates that Applicant's loans to periods and is accordingly socially beneficial. Advance increased by 1100 per cent between 1970 However, both affiliated and independent mortand 1972, and that such loans greatly exceeded gage bankers appear to warehouse an increased those extended to any of Advance's competitors volume of mortgage loans during periods of tight during the same period. This financial support money. Thus, the record does not permit an inferfollowing the subject acquisition permitted Ad- ence that Applicant caused Advance to originate vance, in no small part, to improve its position a greater volume of mortgages during periods of significantly within the mortgage banking industry. tight money than it would have originated as an Consideration of the dangers of undue concentra- independent firm. tion of resources as may reasonably be found to Applicant states that upon approval of this aparise from a consolidation of two financial instituplication Advance will open new offices before the tions which, as here, have already achieved sigend of 1974. However, considering the size and nificant power in their respective industries, reresources of Applicant, it appears that Applicant quires the Board to observe the Congressional has the capability to enter all such proposed new mandate "to consider all reasonable ramifications markets without acquiring one of the nation's of the concentration of resources in fulfilling its largest mortgage banking firms. In the Board's responsibilities under section 4."11 It is the judgment, such entry could be accomplished either Board's judgment, upon consideration of the entire de novo or through the acquisition of a mortgage record, that the dangers which the Congress feared banking firm smaller in size than Advance. Where might arise from an undue concentration of reless anticompetitive means of entry are available sources are present in the instant application and and such entry is likely to increase the vigor of constitute an adverse effect which weighs against competition in either a local, regional, or national approval. mortgage market, the public is likely to benefit Applicant has made an attempt to meet its thereby. Accordingly, the Board is unable to conburden of establishing public benefits which outclude that the overall public benefits ascribed to weigh the adverse effects noted above. One such Advance's affiliation with Applicant are sufficient public benefit is said to be a substantial increase to outweigh the substantial adverse effects of the in the volume of Advance's origination of conacquisition. struction loans on apartment buildings in 1971, The Board is cognizant of the fact that Appliand that such increase was made possible largely cant, rather than await the eve of the statutory because of "the availability of funds provided by deadline of December 31, 1980, sought prompt [Applicant], primarily through use of commercial Board approval of its retention of Advance through paper at lower rates than Advance could have submission of this § 4 application. In so doing, obtained." However, construction loans made by Applicant may have denied itself the opportunity Bank during the same period increased by an even to present evidence relating to the public benefits greater margin than did those of Advance. Of aspect of the acquisition which could only be equal importance, however, is the fact that origishown through a longer period of operation than nations made by Advance on 1 -4 family residences Applicant afforded itself. Accordingly, the during this period increased by a lesser margin Board's issuance of an order herein denying Apthan did such originations for the industry as a plicant's present application is without prejudice whole. In this respect, it would appear that whatto any subsequent application Applicant may file ever public benefits flowed from Advance's affiliawith the Board at such time it believes more tion with Applicant were equally achievable by persuasive evidence is available which may tend independent mortgage bankers in the country. to outweigh the anticompetitive effects of the proposal. The Board should caution Applicant, however, that its willingness to receive additional "ibid. post-acquisition evidence does not imply that such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN • JANUARY 1974 evidence will be "given conclusive weight or and susceptible of judgment as to their signifiallowed to override all probabilities." (See F.T.C. cance. v. Consolidated Foods Corp., 380 U.S. 592, 598.) Under these circumstances, it is not enough for Such post-acquisition evidence will only be Applicant to imply that it can make a strong deemed relevant to the extent that it is helpful in mortgage company stronger, or to offer conjectural illuminating or filling in details that are otherwise evidence regarding the effect of subject acquisition difficult to evaluate at the present time. on a housing shortage perceived at the time of Based upon the foregoing and other consid- the acquisition. Applicant needs a stronger demerations reflected in the record, the Board con- onstration of lower cost, better service, or other cludes that the public interest factors the Board public benefits to offset the loss of probable future is required to consider under § 4(c)(8) do not competition associated with this particular acquioutweigh the probable adverse effects, and that the sition. Applicant has not, in my opinion, made application should be denied. a sufficiently strong case for public benefits; Ap- Accordingly, the application is herewith denied. plicant is a competent competitor and certain of By order of the Board of Governors, effective the benefits it claims as realizable would be more December 26, 1973. relevant to the issue were a differently circumstanced or smaller mortgage banking firm in- Voting for this action: Chairman Burns and Governors volved. Mitchell, Brimmer, Bucher, and Holland. Voting against this action: Governors Daane and Sheehan. Since Applicant has not demonstrated public (Signed) THEODORE E. ALLISON, benefits needed to outweigh the adverse effects that [SEAL] Assistant Secretary of the Board. appear from the record, I join in the Board's denial of the present application. CONCURRING STATEMENT OF GOVERNOR MITCHELL CONCURRING STATEMENT OF GOVERNOR BRIMMER I have joined my colleagues in voting to deny First National City Corporation's application to I joined the majority in voting to deny First retain Advance Mortgage Corporation because I National City Corporation's application to retain agree that Applicant has not demonstrated public Advance Mortgage Corporation; and, in general, benefits which outweigh the adverse effects asso- I concur with the Board's analysis and with the ciated with this acquisition. However, my decision language in its Order. In my view, however, the is based solely upon the absence of meaningful Board should not act "without prejudice to any public benefits to offset the loss of present and subsequent application"; rather the Board should future competition associated with the acquisition. deny this application unequivocally and without In my view, the record does not reflect any undue reservation. The Board has, in effect, invited Apconcentration of resources. plicant to reapply for retention if, and when, new It appears that Applicant was responding to a evidence becomes available which adds credence profit opportunity when it acquired Advance in to Applicant's claim of public benefits. Such an July, 1970. Such a response, of course, is not invitation is, in my view, inappropriate, since it improper and, other things being equal, should not is inconsistent with the purposes of the Act and be presumed to be prejudicial to the public interest. encourages uncertainty regarding the meaning and However, in enacting the 1970 Amendments to effect of the Board's Order. the Bank Holding Company Act, Congress deter- In denying Applicant permission to retain Admined that bank holding companies may engage vance Mortgage Corporation, the Board deterin nonbanking activities pursuant to § 4(c)(8) only mined that the possible adverse effects associated if such activities can reasonably be expected to with acquisition of the Nation's fourth largest produce public benefits that outweigh whatever mortgage company by its third largest banking adverse effects are associated with said activities. organization were not outweighed by public bene- Thus, Congress appears to have required public fits which might reasonably be expected therefrom. benefits beyond those presumed to be associated The legal standards applicable to this determiwith the pursuit of the corporate interest. Thus nation will be the same on December 31, 1980, where adverse effects exist, Congress required the statutory deadline for retention. New data, something more: i.e., the public benefits emanat- reflecting changed economic circumstances, will ing from the proposed activity must be discernible not alter the fact that the acquisition, when made, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 55 violated the standards of the Bank Holding Com- Among Advance's competitors in both cities—as pany Act. well as in most other markets where Advance does business—are some of the Nation's largest mortgage bankers. Hence, it is unlikely that affiliation DISSENTING STATEMENT OF with Applicant would enable Advance to dominate GOVERNOR SHEEHAN any relevant market; and the record since acquisi- I would approve the application by First Na- tion indicates that no such dominance has octional City Corporation to retain Advance Mort- curred. Moreover, Advance's low market shares gage Corporation. I do not believe Applicant's size and the presence of so many strong competitors and past performance record form an adequate in each relevant market negate whatever effect the basis upon which the Board should bar its entry acquisition might have had on potential competiinto nonbanking fields. This is particularly true tion in any such market. Indeed, had Applicant where it can be shown, as here, that Applicant's sought to acquire only the Indianapolis office of operation of the acquired financial institution has Advance, I am confident that the Board would permitted the latter to render superior service to have approved the application without difficulty. the public. Merely because additional offices were acquired Applicant and Advance, combined, hold but a in other markets does not, in my view, permit a small percentage of total national originations in finding of adverse competitive effects. construction loans and an equally small percentage I have previously expressed the view—in definof loans on income-producing property. For ex- ing the term "undue concentration of reample, in 1971, Advance accounted for less than sources"—that Congress was "concerned with 1.1 per cent of total national originations by mort- concentration in particular product lines and pargage companies of loans on income properties and ticular markets rather than generalized bigness per less than 0.3 per cent of all such originations by se."4 It appears from the legislative history of the all mortgage lending institutions. Moreover, in the 1970 Amendments to the Bank Holding Company same year, Advance accounted for less than 0.5 Act that the legislators were not particularly conper cent of total construction loan originations in cerned with the kind of "concentration" which the United States.1 Originations in both of these results from acquisition of a large mortgage comproduct markets by Applicant's lead bank were pany by a large banking organization. similarly insubstantial. Thus the amount of direct The debate on aggregate concentration of financompetition actually foreclosed by this acquisition cial resources appears to have centered about a is far too minute to constitute a significant adverse need, perceived by some in Congress, to prevent effect. the concentration in a few hands of the power to The Board correctly notes that, at the time of grant credit. For this reason, concern was exthe acquisition, Applicant and Advance did not pressed, particularly in the House, that large compete in any of the same markets for the origi- banking organizations and large insurance companation of 1-4 family residential mortgage loans. nies might join forces to unduly concentrate con- Moreover, in those markets in which Advance trol of available credit resources in the United does compete, its largest share of originations of States. For example, during debate on the House 1-4 family residential mortgages was but 5.2 per floor, Congressman Patman remarked: cent (Detroit, Michigan)2 and 4.5 per cent (Indi- In addition, serious questions were raised by several witanapolis, Indiana).3 In Indianapolis Advance nesses during our hearings on H.R. 6778, including leading competes for such originations with approximately economists, concerning the tremendous economic power that would be created by the concentration of giant insurance 30 savings and loan associations, 35 commercial companies and large banks under a single holding company banks, and 10 other mortgage companies. It faces umbrella. The assets of commercial banks and insurance coman even greater number of competitors in Detroit. panies comprise most of the assets available for use by all the institutional investors in the United States. Insurance companies and banks combined control roughly $865 billion or 77.2 percent of the $1.1 trillion of institutional investors in 1 Based upon Department of Housing and Urban Develop- the American economy. Commercial banks alone control $646 ment data covering commercial banks, mutual savings banks, billion, or 57.7 percent of this total. Various news media have savings and loan associations, life insurance companies, mortgage investment trusts, Federal credit agencies and State and local retirement funds. 2Based upon 1969 data. 4Concurring Statement of Governors Mitchell, Daane, and Sheehan in BankAmerica Corporation, 1973 Federal Reserve 'Based upon 1971 data. BULLETIN 692. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN • JANUARY 1974 indicated possible mergers, through the holding company de- cant, through use of its commercial paper, has vice, of several of the largest commercial banks and largest provided Advance with funds at rates lower than insurance companies in the country.5 Advance could otherwise have obtained. Affilia- In my view, mortgage banking companies differ tion thus satisfies Advance's need for funds and fundamentally from insurance companies with re- provides increased benefits to the public through gard to the nature and significance of their eco- Advance's contribution to the Nation's housing nomic power. Mortgage companies, like Advance, needs. serve merely as conduits for the dispersal of mort- For each of the foregoing reasons, and based gage funds actually controlled by an institutional upon the entire record of this case, I would apinvestor for whom they service loans. Insurance prove Applicant's retention of Advance Mortgage companies, on the other hand, are—like banks— Corporation. themselves significant institutional investors who Governor Daane joins Governor Sheehan in actually control credit granting resources. There- voting to approve the retention application of First fore, I am not surprised to discover that Advance's National City Corporation for reasons substantially year-end 1971 total assets were less than $200 as expressed in the above Dissenting Statement million.6 Applicant, in acquiring Advance, did not of Governor Sheehan. significantly increase its total financial power.7 Now, as before the acquisition, Advance must rely NCNB CORPORATION, on the confidence of its institutional investors in CHARLOTTE, NORTH CAROLINA order to maintain a competitive posture in the various markets that it serves. Moreover, the ac- ORDER APPROVING CONTINUATION OF CERTAIN quisition neither increased Applicant's ability to INSURANCE SALES ACTIVITIES generate lendable funds nor gave Applicant control of any other investor of such funds. Congress did NCNB Corporation, Charlotte, North Carolina, not express concern with the kind of forward a bank holding company within the meaning of integration reflected by the instant application. The the Bank Holding Company Act, has applied for Board, therefore, attributes too much financial the Board's approval, under section 4(c)(8) of the power to Advance and is, for this reason, able Act and § 225.4(b)(2) of the Board's Regulation to conclude that subject acquisition created an Y, to continue to engage, indirectly through C. undue concentration of resources. Douglas Wilson & Co. ("Wilson"), Greenville, South Carolina, in the sale, as agent, of credit The record reflects that, since the acquisition, life and credit health and accident insurance to Advance has reduced the cost of financing FHA mortgagors of its wholly-owned subsidiary, Wilmultifamily construction projects and has also reson, which primarily engages in mortgage banking duced the discount on its FHA 1-4 family residenactivities. Such insurance sales activities have tial mortgages. In addition, Advance has signifibeen determined by the Board to be closely related cantly increased its total commitments, especially to banking (12 CFR 225.4(a)(9)). on construction loans, and has, in general, played Notice of the application, affording opportunity a more active role in the housing market since for interested persons to submit comments and its affiliation with Applicant. Such reduced costs views on the public interest factors, has been duly and increased activity are possible because Applipublished (38 Federal Register 23363). The time for filing comments and views has expired, and 5115 Cong. Rec. 33134 (1969). See also, H.R. Rep. No. none has been received. 91-387, 91st Cong., 1st Sess. 24 (1969). When hearings on On August 1, 1972, the Board approved1 Apthe proposed amendments began in the House of Representatives on April 15, 1969, the news media had reported plicant's application to acquire Wilson. That apthat four of the nation's largest banking organizations might plication indicated that Wilson's activities were acquire large insurance companies. Hearings on H.R. 6778 Before the House Comm. on Banking and Currency, 91st limited to mortgage banking and described an item Cong., 1st Sess., pt. 1 at 26 (1969). entitled "Insurance Commissions" on Wilson's 6In comparison, the four insurance companies that Congress Consolidated Statement of Earnings as "servicing feared would be acquired by banking organizations had total fees received by [Wilson] in connection with its assets, respectively, of $6.2 billion, $4.1 billion, $1.6 billion, and $500 million. Hearings on H.R. 6778 Before the House collection, in conjunction with mortgage pay- Comm. on Banking and Currency, 91st Cong., 1st Sess., pt. ments, of premiums on life, accident, and health 1 at 26 (1969). 7For example, as of June 30, 1973, Applicant held about policies." Furthermore it was expressly stated in 2.4 per cent of total deposits in commercial banks in the United States. The acquisition of Advance did not, of course, affect such deposit data. 158 Federal Reserve BULLETIN 844 (1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 57 the application that 4 4 [Wilson] does not perform Applicant controls one bank with aggregate dea sales role in connection with insurance in- posits of $1.9 billion representing approximately volved." Accordingly, neither published notice of 19 per cent of the total deposits of commercial receipt of the application, nor the Board's Order banks in North Carolina. (All banking data are of August 1, 1972, contained any reference to as of June 30, 1973.) Applicant has nonbanking insurance sales activities as the Board only con- subsidiaries which are engaged principally in considered the mortgage banking activities of Wilson. sumer finance activities, mortgage activities, fac- However, the Order expressly subjected the toring activities, and insurance agency activities. Board's determination to the conditions set forth Wilson has previously engaged in the sale of in section 225.4(c) of Regulation Y which proinsurance as agent in connection with its mortgage vides, inter alia, "the activities involved shall not company activities. Wilson had gross commission be altered in any significant respect from those income of approximately $78 thousand for its considered by the Board in making the determifiscal year 1972. All of the commissions resulted nation." from the sale, at Wilson's seven offices in South On August 16, 1972, Applicant acquired shares Carolina, of declining coverage term life insurance of Wilson, which, both prior and subsequent to policies where the coverage was equal to the that date, was a party to agency agreements with outstanding balance of a mortgage held or serviced two different group credit underwriters, under by Wilson and of accident and health insurance which it sold, and received commission income policies where the coverage was equal to monthly for the sale of, credit life and credit health and mortgage payments. Thus, it appears all of Wilaccident insurance. On April 16, 1973, Applicant son's gross commission income is directly related filed the instant application and, shortly thereafter, to an extension of credit by Wilson or directly ceased the insurance sales activities of Wilson. related to provision of other financial services by The Board has considered both whether Appli- Wilson. cant has "knowingly and willfully" made a false Although Applicant engages in certain insurance statement to the Board within the meaning of agency activities through some of its existing subsection 1001 of Title 18 of the United States Code sidiaries, approval of the proposed acquisition and whether Applicant has "willfully" violated would not eliminate any significant existing comthe Bank Holding Company Act and Regulation petition between Applicant's subsidiaries and Y, within the meaning of section 8 of the Act Wilson in the area of insurance sales because of (12 U.S.C. 1847). In doing so, the Board has the limited nature of the respective insurance acconsidered Applicant's asserted reliance on distivities. Applicant's subsidiaries do not derive inclaimers made by officers of Wilson at the time come from the sale of credit life or credit accident of the Wilson application to the effect that Wiland health insurance to mortgage customers in son's insurance activities did not constitute "act- South Carolina, nor does Wilson receive income ing as insurance agent or broker."2 That reliance from the sale of any such insurance in North may have been misplaced, particularly in that the Carolina. question whether certain activities constitute "act- It is anticipated that the provision of insurance ing as insurance agent or broker" for purposes by Wilson will provide a convenient alternative of Regulation Y is a question of law, not of fact, source of insurance agency services for its mortand not susceptible to resolution by officers of gage customers. There is no evidence in the record Wilson. However, upon the basis of the facts indicating that continuation of Wilson's insurance presented, the Board concludes that Applicant did sales activities would result in any undue concenneither knowingly and willfully make a false tration of resources, unfair competition, conflicts statement in its application nor engage in a willful of interests, unsound banking practices or other violation of the Act. adverse effects. Based upon the foregoing and other considerations reflected in the record, the Board has 2That the sale of credit-related insurance coverage under a group policy is contemplated within the phrase "acting as determined that the balance of the public interest insurance agent or broker" has been recognized by the Board factors the Board is required to consider under § virtually since the promulgation of section 225.4(a)(9) of 4(c)(8) is favorable. Accordingly, the application Regulation Y (12 CFR 225.4(a)(9) after enactment of the 1970 Amendments. For example, see Order of January 27, 1972 is hereby approved. The insurance sales activities Approving Acquisition of IDS Credit Corporation by First shall resume not later than three months after the Bank System, Inc., Minneapolis, Minnesota, 58 Federal Reeffective date of this Order, unless such period serve BULLETIN 172, 173 (1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN • JANUARY 1974 is extended for good cause by the Board, or by and developing computer programs. Royal the Federal Reserve Bank of Richmond. This proposes to indirectly acquire ISD contemporandetermination is also subject to the conditions set eously with and as an incident to its acquisition forth in § 225.4(c) of Regulation Y (12 CFR of Computel. Pursuant to § 225.4(g)(3) of Regu- 225.4(c)) and to the Board's authority to require lation Y and § 4(c)(9) of the Act, Royal has such modification or termination of the activities requested the Board to exempt its indirect acquisiof a holding company or any of its subsidiaries tion of ISD from the prohibition against nonbankas the Board finds necessary to assure compliance ing interests contained in § 4 of the Act. with the provisions and purposes of the Act and Section 4(c)(9) of the Act provides that the the Board's regulations and orders issued prohibitions of § 4 shall not apply to the investthereunder, or to prevent evasion thereof. ments or activities of foreign bank holding com- By order of the Board of Governors, effective panies that conduct the greater part of their busi- December 28, 1973. ness outside the United States if the Board by regulation or order determines that, under the Voting for this action: Vice Chairman Mitchell and Gover- circumstances and subject to the conditions set nors Daane, Brimmer, and Holland. Absent and not voting: Chairman Burns and Governors Sheehan and Bucher. forth in the regulation or order, the exemption would not be substantially at variance with the (Signed) THEODORE E. ALLISON, purposes of the Act and would be in the public [SEAL] Assistant Secretary of the Board. interest. Royal has applied for a special exemption for its acquisition of ISD under § 225.4(g)(3) of Regulation Y, contending that such acquisition ORDER UNDER SECTION 4(c)(9) would be consistent with the purposes of the Act OF BANK HOLDING COMPANY ACT and would be in the public interest. In support of its request for an exemption pur- THE ROYAL TRUST COMPANY, suant to § 4(c)(9), Royal states that the acquisition MONTREAL, QUEBEC, CANADA of ISD is merely an incident to an essentially foreign transaction which would have no adverse ORDER DENYING ACQUISITION OF INFORMATION effects in the United States. Although Royal's SYSTEMS DESIGN, INC. indirect acquisition of ISD is part of an essentially The Royal Trust Company, Montreal, Quebec, foreign transaction, a domestic bank holding com- Canada ("Royal"), a foreign bank holding com- pany would be prohibited from acquiring a company within the meaning of § 225.4(g)(l)(iii) of pany engaged in the range of data processing Regulation Y, has applied for the Board's approval activities of ISD.2 The Board believes that the under § 4(c)(9) of the Bank Holding Company Act acquisition of a data processing company engaged ("Act") to indirectly acquire Information Systems in the range of activities of ISD could give a Design, Inc. ("ISD"), Oakland, California. foreign bank holding company a competitive ad- Royal proposes to acquire Computel Systems, vantage over a domestic bank holding company Ltd. ("Computel"), a Canadian corporation that and that the acquisition of such a company is is primarily engaged in the business of selling inappropriate for a foreign bank holding company. computer time.1 Royal proposes to acquire Com- Royal has not presented arguments that would putel in order to obtain an internal source of support a contrary conclusion. On the basis of the computer services that may increase efficiency and foregoing and other considerations reflected in the reduce Royal's cost of obtaining such services. record, the Board hereby denies Royal's request ISD is a wholly-owned subsidiary of Computel for an exemption pursuant to § 4(c)(9) to permathat is also primarily engaged in selling computer nently acquire ISD. Since Royal proposes to inditime. ISD provides other related services, includ- rectly acquire ISD simultaneously with its acquiing storage of information and programs on mag- sition of Computel and as an incident to an essennetic recording devices, leasing remote terminal computer devices and telephone lines, and writing 2Selling more than excess computer time, storing and processing information that is not financial in nature, and devel- 'Although the data processing activities of Computel are oping programs that are not financial in nature are not permitted broader than those permissible for a domestic bank holding by the Board's data processing regulation and interpretation company under § 4(c)(8) of the Act, § 225.4(g)(2)(i) of Reg. unless such data processing services are requested by a cus- Y provides that a foreign bank holding company may engage tomer and are not otherwise reasonably available in the relevant in direct activities of any kind outside the United States. market area (§ 225.4(a)(8) of Reg. Y and 12 CFR § 225.123). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 59 tially foreign transaction, the Board finds that it in ISD after two years from the date of its acquisiwould be consistent with the standards of § 4(c)(9) tion of Computel. to permit Royal to temporarily acquire ISD and By order of the Board of Governors, effective to grant Royal a reasonable period of time in which December 6, 1973. to effect an orderly divestiture of ISD. Gn this basis, the Board hereby permits Royal to tempo- Voting for this action: Governors Brimmer, Sheehan, rarily acquire ISD subject to the condition that Bucher and Holland. Absent and not voting: Chairman Burns and Governors Mitchell and Daane. Royal shall use its best efforts to divest ISD as soon as practicable after its acquisition of Compu- (Signed) CHESTER B. FELDBERG, tel, but in no event shall Royal retain any interest [SEAL] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During December 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 Lloyds Bank Limited, London, First Western Bank and Trust 12/10/73 38 F.R. 31691 England and Lloyds First Company, Los Angeles, 12/17/73 Western Corporation, Wilm- California ington, Delaware Victoria Bankshares, Inc., Victoria Bank and Trust Company, 12/27/73 39 F.R. 1323 Victoria, Texas Victoria; Farmers State Bank 1/7/74 and Trust Co., Cuero; The First National Bank of Nordheim, Nordheim, Home State Bank, Westhoff; Community State Bank, Runge; and Smiley State Bank, Smiley, all in Texas 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 Austin Bancshares Corporation, Oak Hill National Bank, 12/12/73 38 F.R. 34834 Austin, Texas Oak Hill, Texas 12/19/73 Boatmen's Bancshares, Inc., Boatmen's National Bank of North 12/21/73 39 F.R. 1120 St. Louis, Missouri St. Louis County, St. Louis 1/4/74 County, Missouri Boatmen's Bancshares, Inc., Bank of Pevely, 12/6/73 38 F.R. 34510 St. Louis, Missouri Pevely, Missouri 12/14/73 Charter New York Corporation, The First National Bank of 12/4/73 38 F.R. 34511 New York, New York Hancock, Hancock, New York 12/14/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 FEDERAL RESERVE BULLETIN • JANUARY 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation Fidelity American Bankshares, The Peoples Bank of Buena Vista, 12/6/73 38 F.R. 34512 Inc., Lynchburg, Virginia Virginia, Inc., Buena Vista, 12/14/73 Virginia First Amtenn Corporation, City National Bank of Memphis, 12/21/73 39 F.R. 1123 Nashville, Tennessee Memphis, Tennessee 1/4/74 First Bancorp of N.H., Inc., Laconia Peoples National Bank and 12/3/73 38 F.R. 34027 Exeter, New Hampshire Trust Company, Laconia, 12/10/73 New Hampshire First Bancorp of N.H., Inc., The Merchants National Bank of 12/12/73 38 F.R. 34834 Exeter, New Hampshire Manchester, Manchester, 12/19/73 New Hampshire First Financial Corporation, Gadsden State Bank, 12/27/73 38 F.R. 1397 Tampa, Florida Chattahoochee, Florida 1/8/74 FrostBank Corporation, Colonial National Bank, 12/13/73 38 F.R. 35054 San Antonio, Texas San Antonio, Texas 12/21/73 Mercantile Bankshares Corpora- The Fidelity Bank, 12/28/73 39 F.R. 1400 tion, Baltimore, Maryland Frostburg, Maryland 1/8/74 Mercantile Bancorporation, High Ridge Bank, 12/13/73 38 F.R. 35055 Inc., St. Louis, Missouri High Ridge, Missouri 12/21/73 Mercantile Bancorporation Inc., Rozier Bank, Ste. 12/4/73 38 F.R. 34514 St. Louis, Missouri Genevieve, Missouri 12/14/73 PanNational Group Inc., Franklin National Bank, 12/7/73 38 F.R. 35055 El Paso, Texas El Paso, Texas 12/21/73 Southeast Banking Corporation, Bank of Wildwood, 12/12/73 38 F.R. 34835 Miami, Florida Wildwood, Florida 12/19/73 Southeast Banking Corporation, First Citizens Bank and Trust 12/27/73 39 F.R. 1402 Miami, Florida Company, Titusville, Florida 1/8/74 Southwest Florida Banks, Inc., North First Bank, North Fort 12/28/73 39 F.R. 1403 Fort Myers, Florida Myers, Florida, and South First 1/8/74 Bank, Fort Myers, Florida Tennessee Valley Bancorp, Inc., First Trust & Savings Bank, 12/7/73 38 F.R. 34093 Nashville, Tennessee Clarksville, Tennessee 12/17/73 Northern States Bancorporation, Union National Bank and Trust 12/28/73 39 F.R. 1402 Inc., Detroit, Michigan and Company of Marquette, 1/8/74 Twin Gates Corporation, Wilm- Marquette, Michigan ington, Delaware ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking Company (effective Register Applicant (or activity) date) citation Bank America Corporation, BA Insurance Company, Inc., 12/27/73 39 F.R. 1396 San Francisco, California San Francisco, California 1/8/74 Fidelity Corporation of Penn- Local Finance Corporation of 12/27/73 39 F.R. 1397 sylvania, Rosemont, Pennsyl- Florida 1/8/74 vania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 61 ORDER UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank(s) date) citation New Victoria Bank and Trust Victoria Bank and Trust 12/27/73 39 F.R. 1404 Company, Victoria, Texas Company, Victoria, Texas 1/8/74 ORDERS ISSUED BY FEDERAL RESERVE BANKS During December or 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. Federal Effective Register Applicant Bank(s) Reserve Bank date citation State Street Boston Financial Chatham Trust Company, Boston 12/10/73 38 F.R. 34836 Corporation, Boston, Mass- Chatham, Massachusetts 12/19/73 achusetts Central Bancorporation, Inc., The Commercial Banking & Cleveland 12/6/73 38 F.R. 34690 Cincinnati, Ohio Trust Company, Wooster, 12/17/73 Ohio American Banks of Florida, American Beach Boulevard Atlanta 12/21/73 39 F.R. 1395 Inc., Jacksonville, Florida Bank, American Arlington 1/8/74 Bank, and American Mandarin Bank, in Jacksonville, Florida Community Banks of Florida, Clearwater Mall Community Atlanta 11/28/73 38 F.R. 34156 Seminole, Florida Bank, Clearwater, Florida 12/11/73 Twin Gates Corporation, First Citizens Bank, Chicago 11/30/73 38 F.R. 34692 Wilmington, Delaware and Troy Michigan 12/17/73 Northern States Bancorporation, Inc., Detroit, Michigan ORDER UNDER BANK MERGER ACT- APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank Reserve Bank date) citation Brownsburg State Bank, Hendricks County Bank and Chicago 12/10/73 38 F.R. 35053 Brownsburg, Indiana Trust Company, 12/21/73 Plainfield, Indiania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF The action covers new extensions of credit for the purpose of purchasing or carrying stocks that The Board of Governors of the Federal Reserve are registered on a national stock exchange or are System has announced, effective January 1, 1974, included in the Board's over-the-counter margin the following promotions: Samuel B. Chase, Jr., list. As a result of the action, persons buying such from Associate Director, Division of Research and stocks on credit will be required to put up a Statistics, to Adviser to the Board, Office of Manminimum of 50 per cent of the purchase price— aging Director for Research and Economic Policy; instead of 65 per cent—at the time of the transacand Edward C. Ettin and Eleanor J. Stock well tion. Credit may be obtained for the remaining from Assistant Advisers to Associate Advisers in 50 per cent. This action was taken under the the Division of Research and Statistics. Effective authority granted to the Board in the Securities January 6, 1974, Griffith L. Garwood, Adviser, Exchange Act of 1934 to prevent the excessive Division of Supervision and Regulation, has been use of credit to finance securities transactions. named Adviser in the Legal Division. In announcing the change, the Board noted the The Board also has announced the following sharp reduction that has occurred in stock market official staff appointments, effective January 14, credit since margin requirements were increased 1974: from 55 to 65 per cent effective November 24, James L. Kichline has been appointed an As- 1972. Margin credit extended by brokers and sistant Adviser in the Division of Research and dealers declined last November for the eleventh Statistics. On the Board's staff since 1966, Mr. consecutive month. The level of margin debt at Kichline holds a Ph.D. degree from the University broker-dealers on November 30 was about $5.5 of Maryland. billion, or 31 per cent below the peak of $7.9 Thomas D. Thomson has been named an Asbillion in December 1972. sistant Adviser in the Division of Research and In line with the new margin requirement, the Statistics. Mr. Thomson, who has been on the required deposit on short sales was lowered from Board's staff since 1965, holds a Ph.D. degree 65 to 50 per cent, also effective January 3, 1974. from the Graduate School of Business at the Uni- The 50 per cent margin requirement for purchasing versity of Chicago. or carrying convertible bonds and the 70 per cent Helmut F. Wendel has been appointed an As- ''retention requirement" that applies to undersistant Adviser in the Division of Research and margined accounts remain the same. This latter Statistics. Mr. Wendel, who joined the Board's requirement relates to that portion of the proceeds staff in 1951, holds M.A. and Ph.D. degrees from of a sale of securities that must be retained in an Columbia University. account if the account's equity does not meet the Charles W. Wood has been appointed Assistant initial margin requirement—50 per cent. Director in the Division of Personnel. Mr. Wood, The action applies specifically to new extensions a graduate of the College of William and Mary, of credit by brokers and dealers (Regulation T) joined the Board's staff in 1960. and loans by banks and other lenders (Regulations In addition, Pauline B. Heller, Assistant Gen- U and G, respectively) for the purpose of pureral Counsel in the Legal Division, has retired, chasing or carrying margin stocks. and Jerold E. Slocum, Director, Division of Data Processing, has resigned. AMENDMENT TO REGULATION T The Board of Governors has announced an CHANGE IN MARGIN REQUIREMENTS amendment to its Regulation T—extension of The Board of Governors lowered its margin re- credit on securities by brokers or dealers—withquirement for purchasing or carrying stocks from drawing permission for brokers or dealers to sell 65 per cent to 50 per cent, effective January 3, certain kinds of investment contract securities on 1974. credit. 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 FEDERAL RESERVE BULLETIN • JANUARY 1974 The amendment, to become effective June 21, EARNINGS, EXPENSES, AND DISTRIBUTION OF NET EARNINGS OF FEDERAL RESERVE BANKS, 1974, will provide uniform treatment of every 1973 AND 1972 security, for credit purposes, as an indivisible In thousands of dollars whole. The amendment was published for comment July 5, 1973. Item 1973 1972 The amendment relates to, but is not limited Current earnings 5,016,769 3,792,334 to, the arrangement for credit by securities brokers Current expenses 495,117 414,606 or dealers in the sale of investment contract se- Current net earnings 4,521,652 3,377,728 curities such as a program to own and feed cattle, or to own and rent, through a related rental ar- Net deduction from current net earnings -80,654 -49,616 rangement, a condominium unit. In general, the Net earnings before payments to combination, in one package, of both property U.S. Treasury 4,440,998 3,328,1 12 ownership and provision for services such as cattle Dividends paid 49,140 46,183 feeding or rental management makes such an in- Payments to U.S. Treasury (investment a "security" subject to securities credit terest on F. R. notes) 4,340,680 3,231,268 regulation. Transferred to surplus 51,178 50,661 The Board has held that, in most cases, securities brokers and dealers are not permitted, under Compared with 1972, gross earnings were up Regulation T, to arrange credit for the sale of such $1,225 million, or 32 per cent. The principal investment contract securities. However, the changes in earnings were as follows: on U.S. Board had made an exception where the property Government securities, an increase of $1,125 milsale and the management contract were separate lion; on discounts and advances, an increase of items and the credit involved was connected only $95 million. with the property. The current amendment negates that exception, and makes the extension of credit NEW PUBLICATION on any part of such an investment an extension of credit on the whole. This makes it impermissi- Joint Treasury-Federal Reserve Study of the U.S. ble for securities brokers and dealers to arrange Government Securities Market: Staff Studies— for such credit unless collateral is supplied that Part 3 is available for distribution. It consists of meets the requirements of the regulation. Others the following three papers: "New Techniques in may continue to sell such investment programs on Debt Management from the Late 1950's Through credit. 1966" by Lawrence B any as; "Dealer Profits and Capital Availability in the U.S. Government Se- EARNINGS AND EXPENSES OF THE FEDERAL curities Industry, 1955-65" by William G. Colby, RESERVE BANKS IN 1973 Jr.; and "Automating Operations in the Government Securities Market" by Felix T. Davis and Preliminary figures from the Federal Reserve Matthew J. Hoey. Copies may be obtained from Banks indicate that their 1973 gross current earn- Publications Services, Division of Administrative ings amounted to $5,017 million. Expenses totaled Services, Board of Governors of the Federal Re- $495 million, leaving net current earnings of $4,serve System, Washington, D.C. 20551. The price 522 million. With an $81 million net deduction is $1.00 per copy; in quantities of 10 or more from profit and loss account (due to losses of $35 sent to one address, 85 cents each. million on the sale of U.S. Government securities and $46 million on foreign exchange transactions), REVISED CHARTS FOR STAFF STUDY net earnings before payments to the U.S. Treasury ON ENERGY were $4,441 million. Payments to the Treasury as interest on Federal Reserve notes amounted to Three charts appearing in "U.S. Energy Supplies $4,341 million; statutory dividends to member and Uses" published in the December 1973 Fedbanks, $49 million; and additions to surplus ac- eral Reserve BULLETIN have been revised and are counts, $51 million. included in the reprint. Under the policy adopted by the Board of Gov- Revised Charts 13 and 14 provide more approernors at the end of 1964, all net earnings after priate subdivisions of annual energy data between the statutory dividend to member banks and addi- end-product and processing uses in the period tions to surplus to bring it to the level of paid-in immediately after World War II. At that time total capital were paid to the U.S. Treasury as interest coal shipments for rail, vessel, and space-heating on Federal Reserve notes. purposes were still large, and this was not ade- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 65 quately illustrated by the data used for the original taining the published interpretations as of June 30, charts. 1973, is now available. Chart 17 has been amended to show an approximate adjustment for the quantity of Btu's "lost" ADMISSION OF STATE BANKS TO MEMBERSHIP in the conversion of fossil fuels in the generation IN THE FEDERAL RESERVE SYSTEM of electricity. The three revised charts are available, either The following banks were admitted to membership separately or in the reprint, from Publications in the Federal Reserve System during the period Services, Division of Administrative Services, December 16, 1973, through January 15, 1974: Board of Governors of the Federal Reserve Sys- Florida tem, Washington, D.C. 20551. Hillsborough County American Guaranty Bank PUBLISHED INTERPRETATIONS OF THE BOARD Michigan Supplement No. 20 to the looseleaf compilation Livonia Manufacturers Bank of Livonia of "Published Interpretations of the Board of New York Governors of the Federal Reserve System," con- Syracuse Chemical Bank of Syracuse Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication January 16 Total industrial production declined 0.5 per cent INDUSTRIAL PRODUCTION SEASONALLY ADJUSTED, RATIO SCALE, 1967=100 in December, reflecting a sharp drop in automobile output and reduced use of electricity and gas mainly by residential and commercial users. Excluding motor vehicles and parts and electric and gas utilities, the index rose slightly. The total index, at 126.6 per cent of the 1967 average, was 4.5 per cent above a year earlier. Auto assemblies in December were at an annual rate of 8.2 million units, down 14.6 per cent from November. Preliminary January output schedules indicate a further decline of about 15 per cent. Production of other consumer durable goods was off slightly in December, as output of some household appliances declined. Nondurable consumer goods, excluding the decline in electric and gas utilities, also edged off. Output of business equipment, however, rose 0.4 per cent to a new - QMUAARJTOERR LMYA TERIALS: high. Production of construction products and steel —^CAPACIT l/ Y / and other durable and nondurable materials was - U-f | PRODUCTOIN maintained at about their previous advanced levels. -4 1967 1969 1971 1973 1967 1969 1971 1973 F.R. indexes, seasonally adjusted. Latest figures: December. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1973 MMoonntthh YYeeaarr 1973 Oct. Nov.p Dec.e aaggoo aaggoo QII QUI QIV Total 127.0 127.3 126.6 -.5 4.5 5.5 6.1 .9 Products, total 124.4 124.9 123.9 -.8 4.0 5.3 3.9 1.0 Final products 122.8 123.2 122.0 -1.0 4.5 5.0 4.3 2.3 Consumer goods 132.8 133.2 130.7 -1.9 2.3 3.7 1.8 .3 Durable goods 138.2 138.9 134.4 -3.2 -.4 9.3 -8.8 -2.8 Nondurable goods 130.8 130.9 129.4 -1.1 -3.5 1.3 6.6 1.8 Business equipment 126.2 127.1 127.6 .4 11.5 10.9 11.2 8.0 Intermediate products 130.5 131.2 131.0 -.2 2.6 4.6 4.0 -3.2 Construction products 134.3 135.0 135.0 4.9 7.4 6.9 -.4 Materials 131.5 131.3 131.0 -.2 5.3 7.0 8.4 .9 p Preliminary. e Estimated. 67 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

A 70 FEDERAL RESERVE BULLETIN • JANUARY 1974 U.S. STATISTICS—Continued A 58 Industrial production A 62 Business activity A 62 Construction A 64 Labor force, employment, and earnings A 66 Consumer prices A 66 Wholesale prices A 68 National product and income A 70 Flow of funds INTERNATIONAL STATISTICS: A 72 U.S. balance of payments A 73 Foreign trade A 74 U.S. gold transactions A 75 U.S. reserve assets; position in the IMF A 76 International capital transactions of the United States A 91 Foreign exchange rates A 92 Central bank rates A 93 Open market rates; arbitrage on Treasury bills A 94 Gold reserves of central banks and governments A 95 Gold production TABLES PUBLISHED PERIODICALLY: A 96 Stock market credit A 105 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-l 11 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. 1974 A-96—A-97 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 • JANUARY 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities i Special Gold Drawing Held Other stock Rights under Loans Float 2 F.R. Total 4 certificate Bought repur- assets 3 account Total out- chase right agreement Averages of daily figures 1939—Dec 2,510 2,510 8 83 2,612 17,518 1941—Dec 2,219 2,219 5 170 2,404 22,759 1945—Dec 23,708 23,708 381 652 24,744 20,047 1950—Dec 20,345 20,336 9 142 1,117 21,606 22,879 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 1971— Dec 69,158 68,868 290 107 3,905 982 74,255 10,132 400 1972—De c 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 1973—J A M F a e p n a b r r 7 7 7 7 5 2 4 2 , , , , 3 0 1 3 1 5 9 0 9 3 4 7 7 7 7 7 1 4 2 3 . , , , 7 9 0 6 1 8 1 2 1 2 4 4 4 2 4 3 8 3 2 9 3 9 5 5 1 1 1 1 , , , , 7 8 1 5 2 5 9 6 1 8 3 5 2 2 3 2 , , , , 3 3 2 5 1 8 6 5 9 7 7 6 1 1 1 , , , 0 3 0 8 4 2 0 3 3 9 4 9 7 7 8 7 9 8 0 7 , , , , 2 0 5 6 1 6 4 0 9 3 2 0 1 1 1 1 0 0 0 0 , , , , 4 4 4 4 1 1 1 1 0 0 0 0 4 4 4 4 0 0 0 0 0 0 0 0 May 76,758 76,205 553 1,786 2,247 960 81,889 10,410 400 June 75,355 75,047 308 1,789 2,369 942 80,546 10,410 400 July 77,448 76,875 573 2,051 3,113 1,180 83,880 10,410 400 Aug 76,653 76,475 178 2,143 2,566 1,018 82,445 10,410 400 Sept. 76,073 75.712 361 1,861 2,924 889 81,809 10,410 400 Oct 78,042 77,500 542 1,467 2,933 1,122 83,643 10,933 400 Nov 78,457 77,937 520 1,399 2,763 1.078 83,755 11,567 400 Dec.* 79,701 78,833 868 1,298 3,326 1.079 85,554 11,567 400 Week ending— 1973—Oct. 3 77,917 76,503 1,414 1,519 2,551 990 83,110 10,410 400 10 77,376 76,360 1,016 1,351 3,096 1,041 82,981 10,410 400 17 78,053 77,692 361 1.169 3,482 1,109 83,884 10,410 400 24 78,419 78,267 152 1,912 3,120 1,198 84,705 11,567 400 31 78,325 78,072 253 1,455 2,251 1,198 83,284 11,567 400 Nov. 7 78,007 78,007 1.170 2,194 1,281 82,701 11,567 400 14 77,154 76,867 287 1,521 2,526 1,378 82,633 11,567 400 21 79,692 78,365 1,327 1,572 877 826 85,044 11,567 400 28 78,886 78,404 482 1,287 339 871 84,438 11,567 400 Dec. 5 79,532 78,232 1,300 1,475 2,500 942 84,569 11,567 400 12 78,727 78,036 691 1,303 2,580 963 83,673 11,567 400 2 1 6 9 p p 8 7 0 9, , 5 0 7 8 1 7 7 7 9 8 , , 2 7 4 5 2 2 8 8 1 4 9 5 1 1 , , 4 0 8 4 9 2 4 3 , , 6 2 9 5 7 5 1 1 , , 0 2 3 2 7 9 8 8 5 7 , ,2 4 7 8 6 0 1 1 1 1 , , 5 5 6 6 7 7 4 4 0 0 0 0 End of month 1973—Oct 80,378 8 78,606 1,772 2,198 2,654 1,265 86,602 11,567 400 D No e v c .p 8 7 0 9 , , 4 1 9 0 5 7 8 7 0 8 , , 3 2 9 0 5 3 9 1 0 0 4 0 1 1 , , 9 2 1 5 5 7 2 2 , , 7 1 9 2 9 4 1,1 9 5 1 2 6 8 8 5 4 , , 7 1 7 3 1 3 1 1 1 1 , , 5 5 6 6 7 7 4 4 0 0 0 0 Wednesday 1973—Oct. 3 78,766 8 76,657 2,109 1,205 3,474 1,028 84,612 10,410 400 10 73,802 9 73,802 705 4,561 1,117 80,228 10,410 400 17 78,952 8 77,849 1,103 1,536 3,770 1,170 85,558 10,410 400 24 79,371 8 78,302 1,069 3,367 3,281 1,215 87,329 11,567 400 31 80,378 8 78,606 1,772 2,198 2,654 1,265 86,602 11,567 400 Nov. 7 77,207 9 77,207 840 2,997 1,315 82,406 11,567 400 14 79,417 9 77,406 2,011 3,992 3,146 1,375 88,036 11,567 400 21 80,862 8 78,441 2,421 1,385 3,649 859 86,873 11,567 400 28 79,466 8 78,507 959 1,486 3,750 923 85,685 11,567 400 Dec. 5f 79,639 8 78,203 1,436 686 3,819' 970 85,292 11,567 400 2 11 6 92* * * 8 7 7 1 6 8 , , , 9 7 2 6 4 0 5 0 6 9 9 8 7 7 7 9 6 7 , , , 2 7 5 2 4 9 3 0 0 2,7 6 4 1 2 6 1 1 , , 5 5 4 6 8 8 8 0 5 4 2 5 , , , 6 8 5 8 7 9 9 9 3 1 1 1 , , , 0 9 0 6 5 6 3 6 4 8 8 8 9 4 3 , , , 5 8 8 2 4 2 5 3 0 1 1 1 1 1 1 , , , 5 5 5 6 6 6 7 7 7 4 4 4 0 0 0 0 0 0 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 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 8 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

JANUARY 1974 • 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 reserves, Other reserves Period or date Treas- with F.R. Banks Other F.R. ury F.R. liacash ac- bilities h i o n l g d s - T u re 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 F W a . n R it k h . s r c C a e o n n u in c d r y - 6 Total? Averages of daily figures 2,402 616 739 248 11,473 11,473 1939—Dec. 2,189 592 1,531 292 12,812 12,812 1941—Dec. 2,269 625 1,247 493 16,027 16.027 1945—Dec. 1,290 615 920 353 739 17,391 17,391 1950—Dec. 408 522 250 495 1,029 16,688 2,595 19,283 1960—Dec. 756 360 225 458 -1,105 22,484 4,737 27,221 1968—Dec. 656 1,194 146 458 2,192 23,071 4,960 28,031 1969—Dec. 427 849 145 735 2,265 23,925 5,340 29,265 1970—Dec. 453 i 1.926 290 728 2,287 25,653 5,676 31,329 1971—Dec. 350 1,449 272 631 2,362 24,830 6,095 31,353 1972—Dec. 364 2,033 294 644 2,365 26,220 6,463 32,962 1973—Jan. 382 2,956 302 645 2,482 25,432 6,031 31,742 Feb. 384 3,598 338 666 2,530 25,848 5,856 31,973 Mar. 414 3,471 275 666 2,622 26,281 5,824 32,277 Apr. 413 4,121 330 652 2,721 26,214 6,007 32,393 May 386 2,408 266 698 2,732 25,776 6,086 32.028 June 346 3,375 341 782 2,846 27.156 6,274 33,542 July 344 1,674 300 838 2,877 27;377 6,296 33,785 Aug. 349 792 332 781 2,848 27,509 6,402 34,019 Sept. 622 1,718 266 5 752 2,866 28,457 6,371 34,912 Oct. 340 1,772 522 5 689 2,854 28,260 6,383 34,727 Nov. 323 1,892 406 5 717 2,942 28,264 6,639 34,984 Dec. P Week ending— 371 1,771 252 713 2,972 28,073 6,515 34,672 1973—Oct. 3 350 1,362 270 682 2,735 28,105 6,606 34,795 10 354 1,439 276 764 2,802 28,518 6,413 35,015 17 ,522 1,566 254 5 950 2,904 29,128 5,899 35,111 24 365 2,422 279 5 655 3,004 28,368 6,496 34,948 364 2,087 332 5 662 2,726 28,062 6,479 34,625 Nov. 7 338 1,120 580 5 696 2,738 27,924 6,720 34,728 14 333 1,946 557 5 722 2,913 29,009 5,997 35,090 21 329 1,853 651 5 684 2,986 28,058 6,286 34,428 28 334 1,884 440 5 670 2,958 28,418 6,400 34,902 Dec. 5 315 1,597 297 5 651 2,769 27,448 6,912 34,444 12 307 1,654 397 5 674 2,923 28,477 6,567 35,128 19P 328 2,228 531 5 694 3,047 28,854 6,508 35,446 26p End of month 342 1,837 426 5 719 3,065 31,787 6,496 38,367 1973—Oct. 317 1,945 420 5 672 3,025 28,108 6,400 34,592 Nov. 332 2,542 251 5 1,419 2,669 26,759 6,780 33,606 Dec. p Wednesday 367 1,594 239 5 612 3,101 29,405 6,515 36,004 1973—Oct. 3 355 2,638 265 5 654 2,742 23,652 6,606 30,342 10 381 1,124 286 5 743 2,846 30,419 6,413 36,916 17 1,537 1,252 272 5 673 2,986 32,122 5,899 38,105 24 342 1,837 426 5 719 3,065 31,787 6,496 38,367 31 353 1,557 413 5 654 2,679 27,717 6,479 34,280 Nov. 7 343 1,530 552 5 697 2,808 32,547 6,745 39,376 14 333 1,404 759 5 662 2,988 30,828 5,997 36,909 21 333 2,001 516 5 645 3,029 29,133 6,286 35,503 28 333 1,705 369 5 716 2,720 29,104 6,400 35,588 Dec. 5 p 335 1,524 297 5 632 2,801 27,155 6,912 34,151 12* 303 2,092 283 5 670 2,986 31,702 6,567 38,353 19 p 321 2,716 729 5 593 3,021 25,361 6,508 31,953 2 6p 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. i 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 • JANUARY 1974 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 h T e o l t d a 1 l qu R i e r - ed Excess1 Total s S o e n a a - l Excess Bo in rr g o s w- Excess Bo in r g ro s w- Excess Bo in rr g o s w- Excess Bo in rr g o s w- 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 1144 418 96 1,011 46 1950—Dec 17,391 16,364 1,027 142 125 58 88 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 1155 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 88 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1 19 9 7 6 0 9 — — D D e e c c 2 2 8 9 , , 0 2 3 6 1 5 2 2 7 8 , ,9 7 9 7 3 4 2 25 7 7 2 1,0 3 8 2 6 1 3 5 4 6 25 2 9 5 1 7 8 27 4 42 6 4 2 7 6 9 4 1 18 7 9 7 32 2 1 8 1971—De c 31,329 31,164 165 107 25 35 8 -35 22 174 42 1972—De c 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 -33 578 286 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 S A e u p g t 3 3 4 3 , , 0 78 1 5 9 3 3 3 3 , , 7 5 8 3 2 9 2 2 3 4 7 6 2 1 , , 1 86 4 1 3 1 1 6 4 3 7 -7 3 7 1 1 0 1 9 5 -7 22 44 5 6 3 2 31 6 7 71 5 2 4 9 8 8 1 1,2 9 2 7 7 2 O N c o t v 3 3 4 4 , , 9 72 1 7 2 3 3 4 4 , , 7 5 1 2 2 3 2 2 0 0 0 4 1 1 , , 4 3 6 9 7 9 1 8 2 4 6 2 1 7 1 1 7 8 4 0 -24 5 2 4 8 - - 1 1 1 9 5 5 8 9 9 3 1 1 1 3 5 6 7 5 5 9 0 8 Dec.* 34,984 34,791 193 1,298 41 -11 74 29 29 -24 763 118 432 Week ending- 1972—Dec. 1 6 3 . . . . 3 3 1 1 , , 0 0 0 6 9 8 3 3 0 0 , , 6 8 7 2 3 4 2 33 4 6 4 8 5 0 8 5 9 2 2 1 4 2 4 0 3 6 -2 3 4 3 7 1 5 3 - - 4 3 2 4 3 1 0 1 0 8 - - 1 1 2 7 6 2 2 3 8 5 6 3 20.. 31,408 31,202 206 1,221 17 422 3344 2211 -80 514 -215 264 27.. 31,441 31,252 189 1,118 -37 278 11 -81 654 -144 186 1973—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 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.. 35,090 34,706 384 1,572 85 111 224 2 15 65 625 122 708 28.. 34,428 34,343 85 1,287 84 -56 94 -13 28 -33 541 103 624 Dec. 5.. 34,902 34,456 446 1,475 57 168 15 11 29 889 150 575 12.. 34,444 34,472 -28 1,303 45 -139 102 -23 1111 -37 769 87 421 19*. 35,128 34,865 263 1,489 40 136 163 -20 -35 843 98 483 26*. 3355,,444466 3344,,994499 449977 11,,004422 3355 221122 2244 -17 681 194 361 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

JANUARY 1974 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers 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 l u it s r P r e e e q a s r o u 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 a n s l a - s y 2 b c b o P u h f a y a u n n i s r k n e e - s t g s s o b S e f a l a l n n l i e n k e s g s t d L ea o t l a o e n rs s 3 de f r B i a r n o o o l w g e r m s r - - s 4 lo N a e n t s Total—46 banks Nov. 2 2 1 7 1 8 4 - 1 5 5 6 3 4 7 2 4 6 2 8 5 2 7 7 6 7 0 1 1 1 1 2 1 1 2 , , , , 8 9 7 5 3 7 4 8 3 3 9 4 - - - - 1 1 1 1 2 2 3 1 , , , , 0 9 6 9 3 0 2 5 4 4 8 5 7 7 8 8 9 7 8 4 . . . . 8 3 7 0 1 1 1 1 9 9 8 8 , , , , 1 8 2 9 3 6 6 3 1 1 5 9 7 6 6 6 , , , , 5 1 9 4 4 0 1 9 7 6 2 2 4,8 0 3 1 7 2 0 0 1 4 0 8 1 1 1 1 4 4 4 2 , , , , 0 8 0 9 6 4 2 6 8 2 2 2 2 1 1 1 , , , , 2 8 4 1 3 9 3 8 5 3 9 9 2 2 1 1 , , , , 4 9 5 8 1 6 6 9 1 3 0 0 ,0 7 7 6 0 6 7 8 4 5 4 3 1 1 1 , , , 1 7 7 9 2 8 8 0 5 6 0 8 Dec. 2 1 1 6 5 2 9 3 1 4 3 7 0 3 9 8 7 3 5 1 6 3 2 8 8 1 2 0 1 1 1 1 4 4 4 2 , , , , 4 9 0 1 0 4 7 9 9 9 6 0 - - - - 1 1 1 1 5 4 2 4 , , , , 6 7 2 0 7 3 1 3 7 2 9 7 1 9 9 8 0 0 8 0 0 . . . . 8 0 5 5 2 2 1 1 0 0 9 8 , , , , 5 0 8 0 3 6 8 9 7 5 9 0 6 5 5 5 , , , , 5 6 0 7 8 5 1 0 8 5 3 0 4 4 5 5 , , , , 9 9 0 0 2 8 3 4 8 7 6 1 1 1 1 1 4 5 3 5 , , , , 9 5 0 1 0 0 4 2 3 9 8 9 9 7 7 56 1 7 2 1 3 2 0 2 2 2 1 , , , , 0 3 6 8 6 2 6 0 7 2 0 1 4 6 5 5 4 6 2 0 6 9 3 3 2 1 1 1 , , , , 2 8 5 1 1 1 4 3 4 9 5 2 8 in New York City 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 Dec. 5 149 3,774 -3,625 58.7 4,686 912 912 3,774 1,198 351 847 12 -19 102 4,759 -4,881 79.8 5,589 830 830 4,759 1,429 334 1,096 19 86 163 4,940 -5,017 78.7 5.788 848 848 4,940 1,674 329 1,344 26 188 4,944 -4,757 76.1 5,843 899 899 4,944 1,669 273 1,395 38 outside New York City 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 Dec. 5 29 322 8,302 -8,594 95.4 13,403 101 4,129 9,274 972 603 318 285 12 28 429 9,650 -10,051 110.1 14,476 825 4,106 10,370 720 638 189 449 19 -46 606 10,009 -10,661 115.4 14,749 740 4,180 10,570 561 649 174 475 26 145 180 9,246 -9,281 100.7 14,047 801 4,088 9,959 713 991 172 819 5 in City of Chicago Nov. 1 7 4 - - 2 1 5 51 3 3 , , 5 9 1 8 8 3 - -4 3 , , 0 5 3 4 5 3 2 2 1 4 6 7 . . 2 4 4 4 , , 2 5 5 0 4 4 7 52 3 1 6 6 46 5 6 2 4 3 , , 0 6 3 0 8 2 8 5 4 5 5 6 0 0 9 0 9 9 5 5 4 5 1 0 4 5 21 -2 4,142 -4,144 263.6 4,943 801 717 4,225 84 316 54 261 28 11 3,448 -3,437 226.2 4,371 924 847 3,525 77 330 330 Dec. 5 14 3,455 -3,442 232.7 4,386 931 859 3,527 72 356 356 1 1 9 2 - - 2 7 3 4 3 , , 0 83 8 8 5 - -4 3 , , 1 8 0 5 8 6 2 2 4 5 7 1 . . 3 3 4 4 , , 5 7 7 6 0 6 7 6 3 8 2 1 7 68 3 1 2 4 3 , ,8 0 3 8 8 4 4 3 0 6 5 6 4 3 0 6 5 6 26 57 3,208 -3,151 206.1 4,007 799 727 3,281 72 364 364 33 others Nov. 7 86 3,243 -3,324 43.6 9,006 5,763 3,612 5,394 2,152 298 205 93 14 328 4,185 -4,537 58.6 9,650 5,466 3,628 6,023 1,838 297 258 39 21 298 4,398 -4,614 60.0 9,095 4,698 3,343 5,753 1,355 241 528 -287 28 195 4,633 -4,763 63.3 9,107 4,474 3,362 5,745 1,112 287 370 -82 Dec. 5 322 4,847 -5,153 68.4 9,018 4,171 3,270 5,747 901 247 318 -71 12 418 5,812 -6,196 81.8 9,906 4,094 3,374 6,532 720 233 189 44 19 606 5,924 -6,553 86.2 9,983 4,059 3,498 6,485 561 283 174 109 26 180 6,038 -6,130 79.7 10,040 4,002 3,361 6,679 641 627 172 455 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 • JANUARY 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Sees. 13 and 13a i Under Sec. 10(b) 2 last par. Sec. 13 3 Federal Reserve Bank D R e a 1 c t 9 . e 7 3 3 o 1 n , Ef d fe a c t t e i ve Pr r e a v t i e o us D R e a 1 c t 9 . e 7 3 3 o 1 n , Ef d fe a c t t e i ve Pr r e a v t i e o us D R e a 1 c t 9 . e 7 3 3 o 1 n , Ef d fe a c t t e i ve Pre r v a i t o e us P B N h o e i w s l t a o Y d n e o l r p k h ia.. 7 m 7 * * 4 4 A A A u u u g g g . . . 2 1 1 3 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 A A A u u u g g g . . . 2 1 1 3 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 7 7 7 * * * 4 4 4 49 9 9 * * * 4 4 4 A A A u u u g g g . . . 2 1 1 3 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 C R l i e c v h e m la o n n d d m 7* 4 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 m m 49 9 * * 4 4 A A u u g g . . 1 14 4 , , 1 1 9 9 7 7 3 3 Atlanta m Aug. 16, 1973 Aug. 16, 1973 7*4 4m Aug. 16, 1973 Chicago m Aug. 14, 1973 Aug. 14, 1973 m <9 Vt Aug. 14, 1973 S M t. i n L n o e u a i p s olis.. m 7*4 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 A Au u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 m m 49*4 A A u u g g . . 1 1 4 4 , , 1 19 9 7 7 3 3 K Da a l n l s a a s s City.. 7 7 * * 4 4 A Au u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 A A u u g g . . 1 14 4 , , 1 1 9 9 7 7 3 3 7 7 * % 4 4 49 9 * y 4 2 A A u u g g . . 1 1 4 4 , , 1 1 9 9 7 7 3 3 San Francisco m Aug. 14, 1973 Aug. 14, 1973 7% 9% Aug. 14, 1973 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain < Also effective on the same dates as the other rates shown above for bankers' acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of li/i 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 1*4 1*4 1959—Mar. 1 6 6, 2* 3 4 -3 3 3 1970—Nov. 1 1 1 3 5 5 3 3 / 44- - 6 6 5 6 3 4 1955—Apr. 14 1*4 May 29, 3 -3*4 31/2 16 534 53/4 1956— A A S A N M e u p u o a p r g g v y t . . . . . 2 2 2 1 3 1 1 1 1 4 3 4 9 3 1 2 3 0 5 3 2 ::::::: 2 2 2 2 2 2 1 1 IY * * 3 % 3 V 2 4 2 4 4 3 4 m 4 % - 1 - - - - - i 2 3 - 3 2 / - - 3 2 2 4 V 2 * I y i 4 4 V / » 4 4 4 A 2 2 2 2 2 2 2 2 3 3 1 l 1 1 3 V * 3 3 * 3 3/ / 4 4 / 4 4 4 4 4 4 4 1 1 1 9 9 9 6 6 6 3 0 4 — — — J S J J S A N u u u e e u o l p p n n y v g t e e t . . . . 2 2 1 3 1 1 1 1 1 1 6 4 9 2 0 8 7 1 4 2 3 0 , , . . , . . , , , , . 3 3 3 3 3 3 * * * 4 4 3 3 3 * 3 4 4 4 * * * - - 4 - - - 4 3 4 3 4 4 4 4 - 4 * * 4 4 4 4 4 4 4 3 3 3 3 3 3 3 * * * * * 4 4 4 4 4 1971—J J F N D a u e e o n l b c y v . . . . 2 2 2 1 1 1 1 1 1 1 2 9 6 9 4 3 1 1 5 3 1 9 8 4 5 5 5 5 5 * * 3 f 4 4 5 c 4 4 5 5 5 4 4 3 * * - - 3 3 - - - - 5 5 5 5 4 4 5 4 4 5 4 3 1 * 3 1 - - / / 4 4 4 4 5 5 4 5 5 5 4 5 5 5 5 5 5 5 5 3 1 1 1 * 3 / / / / 4 4 4 4 4 4 1957—Aug. 2 9 3 3 3» - / 3 2 *4 3 3 *4 1965—Dec. 1 6 3 . . 4 4* - 4 4 *4 4 41 * / 4 2 Dec. 1 1 1 3 9 7 4 M 34 4 4 4 3 * 3 4 4 4 Nov. 15 3 -3*4 3 1967—Apr. 7. 4 -4i/2 4 2 4 4*4 4*4 1958—J S A M D M A O a e p e u c n a a p c t r g y r . t . . . . . . 2 2 2 2 1 2 1 1 1 2 2 9 3 4 7 5 1 2 4 8 3 2 2 2 2 2 l 1 1 3 1 * % y * 3 / / 2 2 3 4 m 4 4 4 4 4 1 - - - - - - - - 3 3 / 2 2 2 2 3 2 4 3 * 4 4 2 2 2 i 2 2 2 3 3 1 1 * 1 3 1 3 1 3 / / / / 4 4 4 4 / 4 4 1 1 9 9 6 6 8 9 — — N A M A D A p p o u e a c r v r g r . . . . . . 2 2 2 2 2 1 1 3 1 1 1 2 0 7 0 6 8 4 6 0 9 4 5 . . . . . . , . . . . . 4 5 5 4 5 5 * * * * 4 5 5 4 5 5 4 4 4 4 * 1 * * - - - - - - 5 4 5 5 6 5 4 4 4 4 V * 1 * / 4 4 2 4 4 4 5 5 5 4 4 5 5 6 5 5* * * * * * * * * 4 4 4 4 4 4 4 4 4 1973— J J J A A M M F a u u e u p a n a n l b r y g y r . e . . . . 2 2 1 2 1 1 1 1 1 6 4 3 2 4 2 3 1 5 1 5 8 7 6 5 5 5 * 3 6 7 7 5 6 5 4 5 4 1 * * 3 - - - - - / 7 4 5 4 4 6 5 2 6 % * * * 4 4 4 6 7 7 6 6 6 7 5 5 5 5 5 3 * * * * * * * / 4 4 4 4 4 4 4 4 Nov. 7 2*4 2*4 8. 6 6 In effect Dec. 31, 1973... 7*4 7*4 NOTE.—Rates under Sees. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 2f4 Time 3 banks) EEEffffffeeeccctttiiivvveee EEEffffffeeeccctttiiivvveee dddaaattteee iii Reserve city Other Other time dddaaattteee Other time SSaavv-- 00--22 22--1100 1100--110000 110000--440000 OOvveerr SSaavv-- Over Over iinnggss Over 440000 55 iinnggss Over 0-5 5 0-5 5 0-5 5 0-5 5 6 In effect 1972—Nov. 9. .. , 8 10 12 777777 111111666666%%%%%% 17% 83 8 5 Jan 1 1963 1166%% 1122 4 Nov. 16 111111333333 1966—July 14, 21 44 44 555 1973—July 19 1111100000%%%%% 1111122222%%%%% 1111188888 Sept. 8 15 666 111111333333%%%%%% 1967—Mar. 2 333%%% 333%%% IIIInnnn eeeeffffffffeeeecccctttt 11996688——JJ M aann ar .. . 11 1 11 6 ,, 1188...... 111666%%% 111777 111222 111222%%% 333 333 DDDDeeeecccc.... 33331111,,,, 1111999977773333 8888 1111100000%%%%% 1111122222%%%%% 111111333333%%%%%% 1111188888 3333 3333 5555 11996699——AApprr.. 1177 111777 111777 %%% 111222%%% 111333 1970—Oct 1 55 PPPrrreeessseeennnttt llleeegggaaalll rrreeeqqquuuiiirrreeemmmeeennnttt::: MMMiiinnniiimmmuuummm MMMaaaxxxiiimmmuuummm NNNeeettt dddeeemmmaaannnddd dddeeepppooosssiiitttsss,,, rrreeessseeerrrvvveee ccciiitttyyy bbbaaannnkkksss 111000 222222 NNNeeettt dddeeemmmaaannnddd dddeeepppooosssiiitttsss,,, ooottthhheeerrr bbbaaannnkkksss 777 111444 TTTiiimmmeee dddeeepppooosssiiitttsss 333 111000 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 Dec. 27, 1973, member banks are puted on the basis of net balances due from domestic offices to their foreign subject to an 8 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 8 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. Previous requirements have been: 8 per cent 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 and 11 per cent from Sept. 20 to Dec. 26, 1973. For details, see Regulation be eliminated by April 1974. For details, see Regulations D and M and D and appropriate supplements and amendments. appropriate supplements and amendments thereto. 7 The 16% per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 8 See preceding columns for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate reserve cities, and on the same date requirements for reserves against net NOTE.—All required reserves were held on deposit with F.R. Banks demand deposits of member banks were restructured to provide that each June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member member bank will maintain reserves related to the size of its net demand banks were allowed to count part of their currency and coin as reserves; deposits. The new reserve city designations are as follows: A bank having effective Nov. 24, 1960, they were allowed to count all as reserves. For net demand deposits of more than $400 million is considered to have the further details, see Board's Annual Reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • JANUARY 1974 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 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 41/2 Savings deposits Other time deposits—i Other time deposits (multiple- and single- Multiple maturity: 2 maturity)— 30-89 days 4 41/2 Less than $100,000: 90 days to 1 year.. 5 30-89 days 5 5 1 year to 2 years. . 5% 90 days to 1 year 51/2 Singl 2 e - y m e a a t r u s r o it r y : m ore... 5 5V 4 i 1 y 2 y ea y r e a t r o s 2 o l/ r 2 m y o e r a e r s 6 61 /2 2 61/ * 2 Less than $100,000— 4 years or more in minimum denom- 30 days to 1 year.. 5 ination of $1,000 (4) 71/4 2 1 y y e e a a r r s t a o n d 2 o y v e e a r r . s . .. . 5% $100,000 or more (3) (3) $100,000 or more— 5y 2 3 60 0 - - 8 5 9 9 d d a a y y s s 55V3i4 ( ( 3 3 ) ) 90-179 days 5% 6 (3) 180 days to 1 year. I61/4 (3) 1 year or more.... 51/2 (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 per cent 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 6l/i per cent ceiling that applies to time deposits maturing in 2l/i 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 7% per cent was imposed on of $100,000 or more have been suspended. Rates that were effective certificates maturing in 4 years or more 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 1 V /a i p p e e r r c c e e n n t t l J June 24, 1970 NOTE.—Maximum rates that may be paid by meipber banks are estab- 90-179 days 6% per cent | lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 yean. 7 per cent \ May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more 7V£ per cent) rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning 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) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4 40 50 1945—Feb. 5 July 4, 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 16. 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 15, 70 70 1958—Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5. 50 50 1963—Nov. 6 1968—Mar. 10 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 5 80 60 80 1970— May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan. 3, 1974 50 50 50 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

JANUARY 1974 • 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 1-5 years 5-10 years Over 10 years PPeerriioodd 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- sales maturity pur- sales maturity pur- sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions ) 1111111111111111111111111111111111,,,,,,,,,,,,,,,,,000000000000000007777777777777777744444444444444444 555555555,,,,,,,,,222222222111111111444444444 22222,,,,,111116666600000 99999999 ------333333,,,,,,444444888888333333 888844448888 55555,,,,,444443333300000 222244449999 ----1111,,,,888844445555 99993333 ----111100002222 [ 88888888888888888,,,,,,,,,,,,,,,,,888888888888888889999999999999999966666666666666666 333333333,,,,,,,,,666666666444444444222222222 11111,,,,,000006666644444 1111,,,,000033336666 ------666666,,,,,,444444666666222222 1111,,,,333333338888 44444,,,,,666667777722222 999933333333 666688885555 333311111111 111155550000 > 88888888888888888,,,,,,,,,,,,,,,,,555555555555555552222222222222222222222222222222222 666666666,,,,,,,,,444444444666666666777777777 22222,,,,,555554444455555 111122225555 222222,,,,,,999999333333333333 777788889999 -----11111,,,,,444440000055555 555533339999 ----2222,,,,000099994444 111166667777 222255550000 >>——NNoovv.... .... 333333333333333339999999999999999933333333333333333 666666666333333333555555555 333330000000000 333333666666000000 -----444441111111111 DDeecc 999999999999999994444444444444444411111111111111111 444444444999999999888888888 ------111111333333555555 )—Jan . .. 11111111111111111,,,,,,,,,,,,,,,,,888888888888888885555555555555555555555555555555555 555555555333333333000000000 Feb 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555588888888888888888 666666666999999999555555555 222222222000000000000000000 2255 --11,,440088 6611 33,,447766 7799 --22,,006688 3322 MMaarr.... .... 11111111111111111,,,,,,,,,,,,,,,,,555555555555555556666666666666666699999999999999999 222222222666666666000000000 222222222000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,333333333333333337777777777777777777777777777777777 555555555111111111 5500 112277 1199 1111 MMMMMMaaaaaayyyyyy 777777777777777771111111111111111177777777777777777 666666662222222233333333 666666666000000000000000000 11,,331166 --11,,331166 JJJJJJuuuuuunnnnnneeeeee 11111111111111111,,,,,,,,,,,,,,,,,000000000000000004444444444444444477777777777777777 222222221111111188888888 111111111666666666333333333 1177 111222333 3377 7788 5511 --7788 JJJJJJuuuuuullllllyyyyyy............ ............ 11111111111111111,,,,,,,,,,,,,,,,,666666666666666664444444444444444400000000000000000 444444449999999955555555 666666666000000000 222777 AAAAAAuuuuuugggggg............ ...... ...... 666666666666666665555555555555555555555555555555555 999999994444444455555555 444444444555555555666666666 333555111 ---999111999 444666888 110000 SSSSSSeeeeeepppppptttttt 444444444444444448888888888888888800000000000000000 444444440000000011111111 555555555666666666444444444 888333666 ---888111333 ---222333 OOOOOOcccccctttttt 22222222222222222,,,,,,,,,,,,,,,,,111111111111111111111111111111111177777777777777777 111111115555555533333333 NNoovv.... .. .. 555555555555555558888888888888888833333333333333333 444444448888888899999999 11,,110011 4411 11,,551155 112255 668800 333311 --22,,222200 3355 2255 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 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 22 181 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 393 635 351 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 36 1,855 530 1,205 1,205 9,719 8,928 2,116 48 23 1,754 695 200 4,521 4,521 2,774 3,034 599 18 -28 _3 95 1 ,569 260 200 1,941 1,941 6,024 5,478 1,656 14 61 — 1 -66 1,584 51 2,101 2,101 5.664 5,978 1,218 19 -65 -36 717 623 600 1,105 1,105 7,379 8,240 -1,367 21 -29 — l -52 1,274 218 163 4,630 4,630 5,621 5,621 893 229 19 -17 1,666 495 60 3,405 3,405 7.651 6,686 2,076 174 6 106 -12 78 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 20 157 — 7 -41 1,316 401 1,400 6,981 6,981 3,309 2.752 72 30 -95 -9 69 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 -46 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 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) 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 ese g N u l e a i t l n h d d e e s r r s - f S r w an is c s s 1,967 1,575 199 60 125 257 154 98 18 3 2 211221 1 8 6 5 4 16 200 164 20 192 164 20 92 67 20 4 4 4 4 4 4 5 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BULLETIN • JANUARY 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1973 1973 1972 Dec. 26 Dec. 19 Dec. 12 Dec. 5 Nov. 28 Dec. 31 Nov. 30 Dec. 31 Assets 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 400 400 400 400 400 400 400 400 278 289 293 294 297 271 305 313 Loans: 485 1,568 1,580 686 1,486 1,257 1,915 1,981 Other Acceptances: 61 5533 4488 4433 4433 68 4455 7700 118877 5511 113355 1177 2266 3366 Federal agency obligations: 1,798 11,,779988 11,,772255 11,,881100 11,,881100 1,937 11,,881100 11,,331111 Held under repurchase agreements 441199 7799 221155 7799 42 116688 1133 U.S. Govt, securities: Bought outright: Bills 33,484 3366,,001177 3344,,553300 3355,,005588 3355,,336622 36,897 3355,,005588 2299,,666644 Other 38,309 38,259 38,186 38,186 38,186 38,412 38,186 36,681 3,149 3,149 3,149 3,149 3,149 3,149 3,149 3,463 TTTTTTTToooooooottttttttaaaaaaaallllllll bbbbbbbboooooooouuuuuuuugggggggghhhhhhhhtttttttt oooooooouuuuuuuuttttttttrrrrrrrriiiiiiiigggggggghhhhhhhhtttttttt i 2 74,942 i 77,425 i 2 75,865 1 76,393 i 76,697 i 78,458 1 76,393 i 69,808 2,323 537 1,221 880 58 736 98 TTTTTTTToooooooottttttttaaaaaaaallllllll UUUUUUUU........SSSSSSSS........ GGGGGGGGoooooooovvvvvvvvtttttttt,,,,,,,, sssssssseeeeeeeeccccccccuuuuuuuurrrrrrrriiiiiiiittttttttiiiiiiiieeeeeeeessssssss 74,942 79,748 76,402 77,614 77,577 78,516 77,129 69,906 77,286 83,773 79,885 80,503 81,012 81,820 81,093 73,317 ^10,849 ^10,865 f 8,516 p9,470 9,286 2>7,868 6,810 9,172 222 222 221 221 221 223 221 194 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr aaaaaaaasssssssssssssssseeeeeeeettttttttssssssss:::::::: DDDDDDDDeeeeeeeennnnnnnnoooooooommmmmmmmiiiiiiiinnnnnnnnaaaaaaaatttttttteeeeeeeedddddddd iiiiiiiinnnnnnnn ffffffffoooooooorrrrrrrreeeeeeeeiiiiiiiiggggggggnnnnnnnn ccccccccuuuuuuuurrrrrrrrrrrrrrrreeeeeeeennnnnnnncccccccciiiiiiiieeeeeeeessssssss 9 4 4 4 4 4 4 192 1,733 837 831 745 698 925 691 874 *102,237 ^107,850 ^101,610 103,097 103,378 ^102,971 100,984 94,765 LLLLLLLLiiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss 64,561 63,941 63,564 62,832 62,518 64,262 62,128 58,757 DDDDDDDDeeeeeeeeppppppppoooooooossssssssiiiiiiiittttttttssssssss:::::::: f25,361 ^31,702 P27,155 ^29,104 29,133 P26,759 28,108 25,647 2,716 2,092 1,524 1,705 2,001 2,542 1,945 1,855 729 283 297 369 516 251 420 325 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr:::::::: AAAAAAAAllllllllllllllll ooooooootttttttthhhhhhhheeeeeeeerrrrrrrr33333333 593 670 632 716 645 1,633 672 840 *>29,399 p34,747 P29,608 P 31,894 32,295 ?31,185 31,145 28,667 5,256 6,176 5,637 5,651 5,536 4,855 4,686 5,198 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss aaaaaaaannnnnnnndddddddd aaaaaaaaccccccccccccccccrrrrrrrruuuuuuuueeeeeeeedddddddd ddddddddiiiiiiiivvvvvvvviiiiiiiiddddddddeeeeeeeennnnnnnnddddddddssssssss 978 1,048 959 975 973 981 942 557 TTTTTTTToooooooottttttttaaaaaaaallllllll lllllllliiiiiiiiaaaaaaaabbbbbbbbiiiiiiiilllllllliiiiiiiittttttttiiiiiiiieeeeeeeessssssss P100,194 ^105,912 p99,768 P101,352 101,322 p101,283 98,901 93,179 CCCCCCCCaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 883388 883388 883388 883377 883388 844 883388 793 779933 779933 779933 779933 779933 844 779933 793 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr ccccccccaaaaaaaappppppppiiiiiiiittttttttaaaaaaaallllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss •••••••••••••••• 441122 330077 221111 111155 442255 445522 TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss aaannnddd cccaaapppiiitttaaalll aaaccccccooouuunnntttsss f102,237 ^107,850 f101,610 P103,097 103,378 f102,971 100,984 94,765 CCCooonnntttiiinnngggeeennnttt llliiiaaabbbiiillliiitttyyy ooonnn aaacccccceeeppptttaaannnccceeesss pppuuurrrccchhhaaassseeeddd fffooorrr 609 616 613 607 605 581 604 179 MMMaaarrrkkkeeetttaaabbbllleee UUU...SSS... GGGooovvvttt,,, ssseeecccuuurrriiitttiiieeesss hhheeelllddd iiinnn cccuuussstttooodddyyy fffooorrr fffooorrreeeiiigggnnn aaannnddd iiinnnttteeerrrnnnaaatttiiiooonnnaaalll aaaccccccooouuunnntttsss 26,752 26,955 27,136 27,489 26,958 26,365 27,354 30,858 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 67,680 67,359 67,680 66,388 66,084 68,161 66,229 62,492 Collateral held against notes outstanding: 2,555 2,535 22,,555555 22,,448855 22,,445555 22,,555555 22,,448855 22,,556611 66,245 65,940 66,245 65,225 64,930 66,335 65,130 61,015 68,800 68,475 68,800 67,710 67,385 68,890 67,615 63,576 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

JANUARY 1974 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON DECEMBER 31, 1973 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C la le n v d e - m Ri o c n h d - At t l a a n- c C a h g i o - L S o t u . is M ap i o n l n is e - K C s a i a t n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 111111,,,444666000 339911 333,,,222333111 881177 827 11,,228833 884477 11,,559955 335599 114 441166 225533 11,,332277 Special Drawing Rights certificate 444000000 2233 999333 2233 33 3366 2222 7700 1155 7 1155 1144 4499 111,,,222000888 9966 111999888 6633 89 110099 118899 6699 4499 27 6622 8866 117711 222777111 1155 111999 22 32 2288 3399 3333 1199 10 3322 1144 2288 Loans: Sec o u b r l e ig d a t b i y o n U s .S. Govt, and agency 888 333 777 888 222 555 99 22 444222 666 222 333 1188 95 4477 66 5 5 5 5 9 0 9 0 11 33 55 88 88 11 33 88 10 1 1 1 1 6 1 6 1 22 11 33 55 11 55 44 33 00 AAAAAAAcccccccccccccceeeeeeeppppppptttttttaaaaaaannnnnnnccccccceeeeeeesssssss::::::: BBBBBBBooooooouuuuuuuggggggghhhhhhhttttttt ooooooouuuuuuutttttttrrrrrrriiiiiiiggggggghhhhhhhttttttt 666888 666888 HHHHHHHeeeeeeelllllllddddddd uuuuuuunnnnnnndddddddeeeeeeerrrrrrr rrrrrrreeeeeeepppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeee aaaaaaagggggggrrrrrrreeeeeeeeeeeeeemmmmmmmeeeeeeennnnnnntttttttsssssss.............. FFFFFFFeeeeeee BBBBBBB dddddddeeeeeee ooooooo rrrrrrr uuuuuuu aaaaaaa ggggggg lllllll hhhhhhh aaaaaaa ttttttt ggggggg ooooooo eeeeeee uuuuuuu nnnnnnn ttttttt ccccccc rrrrrrr yyyyyyy iiiiiii ggggggg ooooooo hhhhhhh bbbbbbb ttttttt llllllliiiiiiigggggggaaaaaaatttttttiiiiiiiooooooonnnnnnnsssssss::::::: 111,,,999333777 91 444777777 106 149 147 111 316 72 40 76 89 263 HHHHHHHeeeeeeelllllllddddddd uuuuuuunnnnnnndddddddeeeeeeerrrrrrr rrrrrrreeeeeeepppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeee aaaaaaagggggggrrrrrrreeeeeeeeeeeeeemmmmmmmeeeeeeennnnnnntttttttsssssss.............. 444222 444222 UUUUUUU....... BBBBBBB SSSSSSS....... ooooooo uuuuuuu GGGGGGG ggggggg ooooooo hhhhhhh vvvvvvv ttttttt ttttttt ,,,,,,, ooooooo uuuuuuu ssssssseeeeeee tttttttrrrrrrr ccccccc iiiiiii uuuuuuu ggggggg rrrrrrr hhhhhhh iiiiiiittttttt ttttttt iiiiiii 1111111 eeeeeee sssssss::::::: 777888,,,444555888 3,680 111999,,,333111444 4,296 6,016 5,959 4,506 12,781 2,935 1,631 3,091 3,593 10,656 HHHHHHHeeeeeeelllllllddddddd uuuuuuunnnnnnndddddddeeeeeeerrrrrrr rrrrrrreeeeeeepppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeee aaaaaaagggggggrrrrrrreeeeeeeeeeeeeemmmmmmmeeeeeeennnnnnntttttttsssssss.............. 555888 555888 TTTTTTToooooootttttttaaaaaaalllllll llllllloooooooaaaaaaannnnnnnsssssss aaaaaaannnnnnnddddddd ssssssseeeeeeecccccccuuuuuuurrrrrrriiiiiiitttttttiiiiiiieeeeeeesssssss 8811,,882200 3,782 2200,,444444 4,421 66,,226600 6,159 4,726 1133,,229933 3,028 1,681 3,194 3,720 1111,,111122 CCCCCCCaaaaaaassssssshhhhhhh iiiiiiittttttteeeeeeemmmmmmmsssssss iiiiiiinnnnnnn ppppppprrrrrrroooooooccccccceeeeeeessssssssssssss ooooooofffffff cccccccooooooolllllllllllllleeeeeeeccccccctttttttiiiiiiiooooooonnnnnnn..................... 99,,88 22 55 22 22 33 3 4 6 4 1 22,,5577 11 55 00 39 1 4 0 4444 22 55 77 79 1 0 4 75 1 9 5 11,,2288 11 88 66 46 1 3 4 40 3 0 6 60 1 2 7 56 1 2 2 11,,221133 88 OOOOOOOttttttt DDDDDDD hhhhhhheeeeeee eeeeeee rrrrrrr nnnnnnn ooooooo aaaaaaa mmmmmmm ssssssssssssss iiiiiii eeeeeee nnnnnnn ttttttt aaaaaaa sssssss::::::: ttttttt eeeeeeeddddddd iiiiiiinnnnnnn fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn cccccccuuuuuuurrrrrrrrrrrrrreeeeeeennnnnnnccccccciiiiiiieeeeeeesssssss.............. 992255 44 39 22 22 00 77 11 48 6655 67 59 113322 11 32 50 32 38 115566 11 106,163 4,751 2266,,777788 55,,777788 77,,777799 8,486 6,656 16,497 3,979 2,325 4,370 4,699 14,065 Liabilities 65,470 3,257 1166,,008822 44,,009922 55,,224433 5,844 3,560 10,926 2,602 1,171 2,544 2,489 7,660 Deposits: 26,759 771 77,,778800 11,,002299 11,,770011 1,350 1,819 3,516 771 619 1,067 1,496 4,840 U.S. Treasurer—General account.. 2,5 2 4 5 2 1 18 1 8 1 33 33 99 55 44 99 1133 11 99 33 11 22 55 44 11 36 1 5 3 23 1 7 8 20 4 8 1 17 9 8 89 6 11 1 4 1 13 1 0 4 34 3 9 2 Ot A he ll r : o thers 1,633 21 667744 3399 3311 50 247 438 15 9 16 22 71 31,185 991 8,907 1,220 1,907 1,778 2,321 4,203 973 723 1,208 1,662 5,292 D O D O ee tthh ffee ee rr rr rr ll ee ii dd aa bb aa iill vv iitt aa ii ii ee ll ss aa bb aa ii nn llii dd ttyy aa cc cc cc aa rr ss uu hh ee dd iitt ee dd mm iivv ss ii ddeennddss 6,8 9 3 S 9 1 3 4 9 4 1 1,1 2 1 4 8 1 33 5 1 1 40 7 7 4 70 6 1 9 58 6 4 7 9 1 5 5 3 1 31 3 1 5 36 2 8 3 51 3 1 7 41 4 3 3 7 1 5 4 1 6 104,475 4,683 26,348 5,694 7,631 8,392 6,532 16,233 3,921 2,285 44,,330000 44,,660077 1133,,884499 Capital accounts 844 34 215 42 74 47 62 132 29 20 3355 4466 110088 844 34 215 42 74 47 62 132 29 20 3355 4466 110088 TToottaall lliiaabbiilliittiieess aanndd ccaappiittaall aaccccoouunnttss.... 106,163 4,751 26,778 5,778 7,779 8,486 6,656 16,497 3,979 2,325 4,370 44,,669999 1144,,006655 CCoonnttiinnggeenntt lliiaabbiilliittyy oonn aacccceeppttaanncceess ppuurrcchhaasseedd ffoorr ffoorreeiiggnn ccoorrrreessppoonndd-- 581 24 4 152 29 53 30 41 91 20 13 24 3311 7733 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to 6688,,116611 33,,339933 16,698 44,,117744 55,,446644 66,,003333 3,799 1111,,224422 22,,772288 1,222 2,660 22,,663388 8,110 Collateral held against notes outstanding: 22,,555555 117755 440000 335500 775500 770000 117755 55 6666,,333355 33,,223300 16,850 33,,880000 55,,220000 55,,334400 3,900 1100,,660000 22,,662200 1,240 2,700 22,,665555 8,200 68,890 3,405 16,850 4,200 5,550 6,090 3,900 11,300 2,795 1,240 2,700 2,660 8,200 1 See note 8 on p. A-5. 4 After deducting $429 million participations of other Federal Reserve 2 After deducing $3 million participations of other Federal Reserve Banks. Banks. See note 5 on p> A 3 After deducting $192 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 • JANUARY 1974 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 Dec. 26 Dec. 19 Dec. 12 Dec. 5 Nov. 28 Dec. 31 Nov. 30 Dec. 31 Loans—Total 485 1,568 1,580 686 1,486 1,257 1,914 1,982 Within 15 days 475 1,499 1,507 645 1,428 1,250 1,849 1,980 16 days to 90 days. 10 69 73 41 58 7 65 2 91 days to 1 year.. Acceptances—Total.. 61 240 99 178 60 68 71 106 Within 15 days.. .. 19 200 60 143 25 19 31 53 16 days to 90 days. 42 40 39 35 35 49 40 53 91 days to 1 year.. U.S. Government securities—Total. 74,942 79,748 76,402 77,614 77,577 78,516 77,129 69,906 Within 15 daysi 2,215 7,345 5,661 6,895 5,895 4,495 4,018 3,838 16 days to 90 days 19,372 19,374 19,007 18,297 19,139 20,352 20,689 17,833 91 days to 1 year 21,099 20,773 19,550 20,238 20,359 21,369 20,238 16,097 Over 1 year to 5 years 22,991 22,991 22,953 22,953 22,953 23,035 22,953 24,484 Over 5 years to 10 years 7,503 7,503 7,469 7,469 7,469 7,503 7,469 6,108 Over 10 years 1,762 1,762 1,762 1,762 1,762 1,762 1,762 1,546 Federal agency obligations—Total. 1,798 2,217 1,804 2,025 1,889 1,980 1,978 1,324 Within 15 days1 18 436 79 299 163 60 252 13 16 days to 90 days 114 115 133 89 85 115 85 32 91 days to 1 year 282 282 282 276 280 282 280 207 Over 1 year to 5 years 733 733 659 665 665 787 665 612 Over 5 years to 10 years 424 424 424 469 469 497 469 269 Over 10 years 227 227 227 227 227 239 227 191 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) SM T 2 o S 3 t 3 A a l ' s Leading S 6 M o S t A h ' e s r s2 T S o N M ( t e a . x S Y l c A l . 2 ) . ' 3 s 2 SM o 2 th S 26 e A r ' s SM T 2 o 3 S t 3 A a l ' s Leading S 6 M o S t A h ' e s r s2 T S o N M ( t e a . x S Y l c A . l 2 ) . ' 3 s 2 SM o 2 th S 26 e A r ' s 1972—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 3.804.8 842.4 5.037.6 97.9 238.0 103.1 66.1 52.0 Mar.. 15,954.5 6.844.8 3.868.7 109.7 5.241.0 97.1 228.3 104.4 67.8 53.9 April 15.966.3 6.297.5 3,852.6 ,038.8 5.186.2 95.7 228.9 101.8 66.2 52.5 May. 16.447.0 7,177.0 3.913.4 270.1 5.356.7 97.8 235.1 103.6 67.3 53.6 June. 16.634.4 7.244.6 4.046.6 409.8 5.363.3 99.9 245.0 107.5 68.7 54.0 July. 17.218.8 7,381.4 4.277.8 837.4 5,559.5 102.6 247.5 111.5 71.3 55.8 Aug.. 17,885.3 7,744.6 4,315.3 140.6 5,825.3 106.1 252.5 113.5 73.6 58.4 Sept.. 17.914.5 8,025.3 4,192.1 889.1 5.697.1 107.4 266.4 111.5 72.4 57.5 Oct.. r18,388.6 8,137.2 4.413.5 ,251.3 r5,837.8 M09.5 265.3 116.3 r74.7 r58.8 Nov., 19.091.1 8.437.9 4.550.7 653.2 6,102.5 113.4 274.9 119.5 77.4 61.3 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

JANUARY 1974 • U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1 1 9 9 4 4 5 1 2 1 8 1 . , 5 1 1 6 5 0 2 8 0 , , 1 6 2 8 0 3 1,2 75 7 1 4 1,0 6 3 9 9 5 4 7 4 3 2 1 , , 3 3 1 5 3 5 2 6 , , 7 7 3 8 1 2 2 9 , , 5 2 4 0 5 1 3 7 , , 0 8 4 3 4 4 2,3 7 2 2 7 4 4 1 , , 2 43 2 3 0 2 4 6 54 1 5 8 5 0 6 1 24 7 4 2 6 4 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 1,806 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 3 197 1 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 1972— D N e o c v . . 6 6 6 5 . , 5 1 1 3 6 7 4 4 5 4 , , 1 2 0 0 5 8 7 7 , , 2 2 3 8 7 7 2 2 , , 5 4 2 3 3 7 1 1 3 3 5 5 3 3, , 4 3 4 0 9 5 9 9 , ,8 6 2 0 7 2 2 2 1 1 , , 4 8 9 8 1 3 2 2 0 1, , 4 9 1 2 1 8 5 5 , , 8 7 6 1 8 4 1 1 5 4 , , 1 7 1 8 8 9 1 1 9 9 3 4 2 2 2 2 5 5 2 2 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 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 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 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 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 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 J A u u l g y . . 6 6 8 8 , , 3 22 7 3 6 4 4 5 5 , , 5 5 5 6 3 4 7 7 , , 5 5 7 4 7 2 2 2 . , 4 4 4 3 0 0 1 1 3 3 5 5 3 3 , , 3 2 0 8 1 8 9 9, , 5 6 6 0 6 2 2 22 2 , , 5 5 5 4 7 4 2 2 2 2 , , 6 8 5 2 9 2 6 6 , , 1 1 4 1 9 6 1 1 6 6 , , 2 1 6 3 1 0 118888 2 21 1 9 9 2 2 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 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 Nov. 70,296 46,799 7,696 2,528 135 3,418 9,819 23,204 23,497 6,290 16,799 186 217 2 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- NOTE.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 Total, out- Held by standing, As security For F.R. 1973 1972 Kind of currency Nov. 30, against Treasury F.R. Banks 1973 gold cash Banks and certificates and Agents Nov. Oct. Nov. Agents 30 31 30 Gold 11,567 (11,460) 107 Gold certificates (11,460) 2 11,459 Federal Reserve notes 66,229 138 4,100 61,991 60,790 57,289 Treasury currency—Total.. 8,684 73 306 8,305 8,253 7,848 Dollars 767 9 31 727 722 665 F U r n a i c te ti d o n S a t l a t C es o i n n o tes 7,3 3 0 2 6 3 62 1 275 6,9 3 6 2 9 1 6,9 3 2 2 2 1 6,5 3 7 2 3 0 In process of retirement3 288 288 288 291 Total—Nov. 30, 1973 4 86,481 (11,460) 317 11,459 4,408 70,296 Oct. 31, 1973 4 85,336 (11,460) 342 11,459 4,492 69,043 Nov. 30, 1972 4 79,579 (10,303) 333 10,302 3,807 65,137 1 Outside Treasury and F.R. Banks. Includes any paper currency held 4 Does not include all items shown, as gold certificates are secured by outside the United States and currency and coin held by banks. Esti- gold. Duplications are shown in parentheses. mated totals for Wed. dates shown in table on p. A-5. 2 Consists of credits payable in gold certificates, the Gold Certificate NOTE.—Prepared from Statement of United States Currency and Coin Fund—Board of Governors, FRS. and other data furnished by the Treasury. For explanation of currency 3 Redeemable from the general fund of the Treasury. reserves and security features, see the Circulation Statement or the Aug. 1961 BULLETIN, p. 936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 MONEY STOCK • JANUARY 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mi Mi M 2 MI Composition of measures is described in the NOTE below. 1969—De c 208.8 392.3 594.0 214.9 397.0 1970—De c 221.3 425.2 641.3 227.7 430.0 1971—De c 236.0 473.8 727.7 242.8 478.7 1972—De c 255.5 525.1 822.0 262.9 530.3 1973—Ja n 255.4 527.9 828.7 262.6 534.1 Feb 256.7 530.5 834.9 254.0 527.8 Mar 256.6 532.6 839.7 254.1 531.4 Apr 258.2 536.2 845.6 259.5 539.5 May 260.5 540.6 852.0 256.0 538.2 June 263.2 545.3 859.4 261.2 544.7 July 264.3 547.6 863.5 263.2 546.6 Aug 263.9 550.5 866.5 260.7 547.0 Sept 263.4 552.3 868.8 261.9 550.3 O N c o t v rr2 2 6 6 4 6 . . 6 6 r5 5 6 5 2 7 . . 4 1 8 8 8 7 2 5 . . 6 4 r2 26 6 4 8 . . 0 4 r5 5 6 5 1 5 . . 0 8 Dec.p 268.6 566.5 889.1 276.3 571.9 Week ending— 1973—Dec. 5. 266.6 563.3 271.3 565.2 12. 267.9 564.3 274.5 568.6 19. 268.8 567.4 276.3 572.7 26 p 269.0 567.7 276.8 573.2 1974—Jan. 2 p 269.2 567.7 282.0 579.1 NOTE.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD's of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial Mz: Mi plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see "Revision of the Money Stock Meascommercial banks. ures and Member Bank Reserves and Deposits" on pp. 61-79 of the Feb. Mr. 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.... NNNooonnn--- NNNooonnn--- GGGGoooovvvvtttt,,,, bbbaaannnkkk bbbaaannnkkk ddddeeeeppppoooossss---- CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt iiiittttssss 3333 rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--- rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--ddeeppooss-- tttiiiooonnnsss 222 ddeeppooss-- tttiiiooonnnsss 222 iittss iittss CD's i Other Total CD's 1 Other Total 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 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 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 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 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 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 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 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 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 59.4 203.9 62.0 282.0 344.1 314.2 59.4 201.8 59.3 283.4 342.7 315.3 6.9 59.5 204.9 64.5 283.3 347.7 315.9 59.9 203.2 62.3 283.5 345.8 317.0 6.3 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 60.1 203.3 66.8 288.9 355.6 316.6 60.1 201.8 68.8 288.4 357.2 316.1 5.1 60.3 204.0 63.4 292.8 356.1 '318.3 60.3 203.6 66.3 291.8 358.2 317.6 5.8 60.8 r205.8 61.1 295.8 356.8 r320.2 r61.3 r207.1 64.1 292.6 356.7 >"318.9 4.2 61.4 207.2 62.5 297.9 360.5 322.6 62.5 213.8 64.1 295.6 359.7 321.8 6.0 60 8 205 9 61 1 296 7 357.8 61 8 209 6 63.5 293 8 357.3 4.2 6666611111.....''''' 44444 222220000066666.....44444 6666622222 .....'''''88888 222229999966666.....44444 333335555599999 .....'''''22222 6666622222.....55555 222221111111111.....99999 6666644444.....44444 222229999944444.....22222 333335555588888.....66666 33333.....11111 6666611111.....44444 222220000077777.....33333 6666622222.....00000 222229999988888.....77777 333336666600000.....77777 6666622222.....66666 222221111133333.....66666 6666633333.....44444 222229999966666.....44444 333335555599999.....88888 55555.....44444 6666622222.....11111 222220000077777.....00000 6666622222.....99999 222229999988888.....77777 333336666611111.....66666 6666633333.....22222 222221111133333.....55555 6666644444.....44444 222229999966666.....55555 333336666600000.....99999 88888.....22222 6666622222.....00000 222220000077777.....22222 6666644444.....11111 222229999988888.....55555 333336666622222.....66666 6666622222.....00000 222222222200000.....00000 6666644444.....77777 222229999977777.....11111 333336666611111.....88888 99999.....66666 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also NOTE above, mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) 3 Member bank reserves, S.A.i Deposits subject to reserve requirements TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss44 PPPPeeeerrrriiiioooodddd NNNooonnn--- TTToootttaaalll bbbooorrr--- RRReee--- AAAvvvaaaiiilll--- Demand Demand rrrooowwweeeddd qqquuuiiirrreeeddd aaabbbllleee 222 TTiimmee TTiimmee TToottaall aanndd U.S. TToottaall aanndd U.S. SS..AA.. NN..SS..AA.. ssaavviinnggss Private Govt. ssaavviinnggss Private Govt. 1969—Dec 27.96 26.70 27.73 25.34 287.7 150.4 131.9 5.3 291.2 149.7 136.9 4.6 307.7 311.1 1970—Dec 29.12 28.73 28.91 26.98 321.3 178.8 136.0 6.5 325.2 178.1 141.1 6.0 332.9 336.8 1971—Dec.... 31.21 31.06 31.06 28.91 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972—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 34.97 33.55 34.71 32.76 439.7 276.7 156.4 6.6 439.7 278.8 156.1 4.8 446.5 446.5 Nov.... '34.80 '33.54 34.58 '32.57 '449.5 276.2 '157.4 '5.9 '438.2 276.6 '158.3 '3.3 '446.6 '445.3 Dec.*... 34.94 33.24 34.71 32.61 442.3 278.6 158.3 5.4 447.6 278.4 164.3 4.9 449.7 455.0 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in- 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as "the ad- Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy." Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. NOTE.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined "Revision of the Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits" on pp. 61-79 of the Feb. 1973 BULLETIN. and savings deposits, and (c) nondeposit sources subject to reserve re- Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial Joans Commercial and and industrial3 and and industrial3 invest- Plus U.S. invest- PPlluuss UU..SS.. ments1 s lo o a ld n 2 s Total l P oa lu n s s Tr u e r a y s - Other4 ments1 Total1 s lo o a ld n 2 s Total l P oa lu n s s Tr u e r a y s - Other4 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 7l!l 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—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. 29*.. 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. 26*.. 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 Dec. 31* . 625.4 444.5 448.8 156.3 158.9 53.2 127.7 642.3 455.6 459.9 159.9 162.5 58.6 128.1 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 • JANUARY 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Cash lia- Bor- Class of bank assets 3 bilities rowand date Total and Total 3 ings 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 1,343, 94,367 35,360 65 1966--Dec. 31 .. 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 1967--Dec. 30.. 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 1968--Dec. 31.. 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,010 199,901 203,154 8,899 1969--Dec. 31 7 421,597 295,547 54,709 71,341 89,984 530,665 435,577 27,174 735 5,054 208,870 193,744 18,360 1970--Dec. 31.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 1971--Dec. 31.. 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 1972--Dec. 31.. 598,808 414,696 67,028 117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 1973--Jan. 31.. 591,270 409,220 65,560 490 96,490 716,680 589,850 29,260 3,890 10,400 228,040 318,260 42,700 Feb. 28.. 599,970 421,500 61,620 850 99,590 729,670 598,520 29,5JO 4,170 11,370 227,190 326,260 45,480 Mar. 28.. 608,320 429,400 61,180 740 90,980 729,250 596,690 25,960 4,530 11,390 220,290 334,520 45,420 Apr. 25.. 616,480 437,520 60,400 560 91,580 738,740 604,570 26,220 4,880 10,910 225,170 337,390 45,830 May 30.. 622,340 444,120 58,330 ,890 95,410 749,470 611,920 27,770 5,250 5,810 229,050 344,040 47,360 June 30.. 635,756 456,780 57,877 099 103, ( 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 July 25*. 634,220 456,480 56,360 380 95,880 761,870 618,670 28,710 5,830 6,750 228,310 349,070 52,580 Aug. 29*. 640,100 462,630 54,720 750 92,010 765,200 618,440 26,500 6,620 3,460 224,450 357,410 53,150 Sept. 26*. 645,150 466,420 54,800 930 100,030 778,070 628,700 27,720 7,190 8,210 227,880 357,700 56,180 Oct. 31*. 652,330 470,780 55,640 910 111,720 798,550 643,790 32,830 6,820 5,680 240,390 358,070 60,220 Nov. 28*. 656,700 474,300 57,300 100 104,140 794,420 635,940 30,130 7,010 4,350 237,650 356,800 62,400 Dec. 26*. 675,820 490,680 58,180 960 95,650 806,420 650,290 25,720 6,850 7,950 249,530 360,240 60,290 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—Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 1973—Jan. 31... 458,760 324,637 47,333 86,790 82,499 565,071 458,943 27,757 3,260 8.461 177,677 241,788 40,256 Feb. 28... 465,024 334,601 43,698 86,725 85,364 575,322 465,495 28,037 3,537 9,364 176,525 248,032 42,912 Mar. 28... 470,997 340,665 43,259 87,073 77,719 573,564 462,997 24,505 3,895 9,407 170,540 254,650 42,642 Apr. 25... 476.739 346.865 42,517 87,357 78,219 580,412 468,385 24,744 4,242 9,167 173,671 256,561 43,076 May 30. . . 480,394 351,223 41,030 88,141 81,169 587,722 473,623 26,139 4,621 4,511 176,766 261,586 44,214 June 30... 490,533 360,908 41,080 88,545 88,227 604,414 486,770 29,311 4,879 8,167 182,439 261,975 46,529 July 25... 489,240 360,813 39,331 89.096 82,091 597,607 478,417 27,121 5,121 5,423 175,351 265,401 48,761 Aug. 29... 494,200 365,951 38,233 90,016 78,475 600,202 478,273 24,972 5,911 2,701 172,082 272,607 49,283 Sept. 26... 498,322 368,842 38,372 91,108 85,802 611,359 486,975 26,182 6,480 6,740 175,016 272,557 52,485 Oct. 31. 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. 28... 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 Dec. 26*.. 524,142 388,327 41,718 94.097 79,946 632,728 502,194 24,000 6,136 6,554 192,446 273,058 57,048 Large member banks: New York City : 1941—Dec. 31.. 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1945—Dec. 31.. 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 1947—Dec. 31.. 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 1966—Dec. 31.. 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 1967—Dec. 30.. 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 1968—Dec. 31.. 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 1969—Dec. 31 7 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 1970—Dec. 31.. 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 1971—Dec. 31.. 63,342 48,714 5,597 9,031 22,663 91,461 71,723 13,825 1,186 1,513 30,943 24,256 5,195 1972—Dec. 31.. 75,034 58,713 5,696 10,625 26,416 107,603 82,446 15,094 1,833 1,418 35,373 28,728 9,502 1973—Jan. 31.. 73,744 58,304 5,439 10,001 23,203 102,923 77,213 13,919 1,574 1,257 31,292 29,171 10,142 Feb. 28.. 75,727 61,629 4,463 9,635 23,059 105,571 79,567 14,040 1,708 1,506 30,533 31,780 10,321 Mar. 28.. 76,368 62,584 4,498 9,286 20,133 103,402 77,435 11,744 1,951 1,789 29,032 32,919 9,938 Apr. 25.. 76,834 63,395 4,254 9,185 19,710 103,622 77,295 11,935 2,229 1,732 29,068 32,331 9,891 May 30. . 78,078 64,505 4,424 9,149 19,587 104,550 77,980 11,780 2,491 521 30,035 33,153 10,496 June 30.. 79,212 65,428 4,661 9,124 24,518 111,028 82,718 15,340 2,773 1,115 30,607 32,883 11,597 July 25.. 79,869 66,117 4,047 9,705 23,544 110,392 81,473 13,787 2,969 769 30,164 33,784 12,857 Aug. 29.. 80,338 66,610 4,095 9,633 20,095 108,141 78,925 12,092 3,558 310 28,185 34,780 12,368 Sept. 26.. 81,900 67,694 4,075 10,131 22,531 111,675 82,016 13,069 4,019 1,073 29,656 34,199 13,729 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 Dec. 26.. 89,287 72,251 5,880 11,156 14,307 110,550 80,505 9,192 3,770 1,213 32,718 33,612 14,333 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • COMMERCIAL BANKS A 19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Class of bank lia- Borand date Cash bilities row- Total Loal ns U.S. assets3 ca a p n i d ta l Total3 Demand ings Treas- Other ac- De- Time Time 5 ury 2 counts4 mand U.S. Govt. Other Large member banks (cont.) City of Chicago: 8,9 1941—Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 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,! 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 3,01 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1972—Dec. 31 21,362 16,294 1,873 3,195 3,580 26,009 19,851 1,615 160 509 7,387 10,179 3,008 1973—Jan. 31. 21,026 16,371 1,562 3,093 2,939 25,035 18,709 1,364 247 358 6,605 10,135 3,276 Feb. 28. 21,983 17,544 1,384 3,055 3,513 26,575 19,429 1,433 224 442 6,778 10,552 4,075 Mar. 28. 22,660 17,980 1,470 3,210 3,092 26,821 19,854 1,326 266 461 6,439 11,362 3,910 A M p a r y . 3 2 0 5 . . 2 23 2 , , 7 8 7 0 7 0 1 1 8 8 , , 2 9 5 5 3 6 1 1 , , 4 5 1 6 4 4 3 3 , , 1 2 3 5 3 7 3 3 , , 2 2 7 0 7 9 2 28 7 , , 1 1 3 7 4 0 2 2 0 1 , , 0 20 1 1, , 5 3 0 0 1 4 4 3 1 3 1 3 4 1 2 5 6 4 6 6 , , 6 8 3 8 9 2 1 1 1 2 , , 3 1 1 4 8 0 3 3 , , 9 9 7 5 1 4 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 Dec. 26. 26,858 21,453 1,557 3,848 3,956 32,298 23,013 1,693 544 308 7,534 12,934 5,944 Other large member: 8,9 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1 1 9 9 4 4 5 7 — — D D e e c c . . 3 3 1 1 4 3 0 6 , , 1 0 0 4 8 0 1 8 3 , , 5 4 1 4 4 9 2 20 9 , , 1 5 9 5 6 2 2 2, , 3 0 9 4 6 2 1 1 3 1 , , 0 2 6 8 6 6 4 5 9 1 , , 6 8 5 9 9 8 4 4 9 6 , , 0 4 8 6 5 7 6 5 , , 4 6 1 2 8 7 2 3 2 0 8,2 4 2 0 1 5 2 2 8 4 , , 9 65 9 5 0 1 9 1 , , 7 4 6 2 0 3 1 1966- Dec. 31 . 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 1967--Dec. 30. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 1968--Dec. 31. 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 1969--Dec. 31 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 1970- Dec. 31. 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10.391 1971- Dec. 3t. 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- Dec. 31. 171,549 126,661 16,316 28,572 36,729 217,170 173,913 11,133 1,173 3,860 71,376 86,372 19.392 1973—Jan. 31. 168,522 123,907 15,844 28,771 30,426 207,904 163,418 9,239 1,044 3,470 63,01 86,654 21,086 Feb. 28. 169,711 126,893 13,957 28,861 32,497 211,396 165,150 9,365 1,210 3,942 62,627 88,006 22,434 Mar. 28. 172,604 129,983 13,615 29,006 29,626 211,390 165,247 8,372 1,283 3,761 60,660 91,171 22,175 Apr. 25. 175,754 133,253 13,414 29,087 30,1 215,262 168,360 8,470 1,285 4,069 61,487 93,049 22,606 May 30., 175,455 133,519 12,547 29,389 31,779 217,001 170,123 9,540 1,324 1,653 62,744 94,862 22,183 June 30. 180,663 138,452 13,066 29,144 31,899 222,344 173,183 9,177 1,371 2,988 64,875 94,771 24,032 July 25. 178,493 137,056 11,982 29,455 28,878 217,220 169,837 8,518 1,368 2,223 61,418 96,310 22,492 Aug. 29. 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 Dec. 26. 193,640 148,619 13,144 31,877 33,365 237,873 182,634 9,682 1,480 2,707 69,109 99,656 28,903 All other member: 8,9,10 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 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 1 1 9 9 6 6 8 7 — — D D e e c c . . 3 3 1 0 . . . . 1 1 3 2 4 2, , 5 7 1 5 1 9 8 7 3 4 , , 3 9 9 9 7 5 2 2 4 4 , , 9 6 9 8 8 9 2 2 6 2 , , 3 8 6 2 4 6 2 2 2 0 , , 6 3 6 3 4 4 1 16 4 1 6 , , 1 0 2 5 2 2 1 1 3 4 1 4 , , 1 6 5 8 6 2 2 2 , , 8 7 3 6 9 6 1 9 6 1 1, ,5 2 6 8 4 1 6 66 1 , , 5 1 7 6 8 1 6 7 5 3 , , 5 8 6 7 9 3 8 5 0 5 4 2 1969—Dec. 317. 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 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.. 175,211 110,357 24,343 40,51 26,783 207,798 181,780 3,853 263 2,993 74,072 100,600 3,118 1972—Dec. 31.. 197,843 127,881 24,830 45,132 29,841 234,342 205,914 4,116 395 3,238 83,681 114,483 4,455 1973—Jan. 31.. 195,468 126,055 24,488 44,925 25,931 229,209 199,603 3,235 395 3,376 76,769 115,828 5.752 Feb. 28.. 197,603 128,535 23,894 45,174 26,295 231,780 201,349 3,199 395 3,474 76,587 117,694 6,082 Mar. 28.. 199,365 130,118 23,676 45,571 24,868 231,951 200,461 3,063 395 3,396 74,409 119,198 6,619 Apr. 25.. 201,351 131,964 23,435 45,952 25,121 234,358 202,710 3,035 395 2,940 76,477 119,863 6,608 May 30. . 203,084 134,243 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 28,131 246,675 211,026 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 79,496125; 870 8,577 Dec. 26*. 214,357 146,004 21,137 47,216 28,318 252,007 216,042 3,433 342 2,326 83,085126,856 7,868 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS • JANUARY 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— CCllaassssiiffiiccaattiioonn bbyy Securities Total Interbank3 Other FFRRSS mmeemmbbeerrsshhiipp Cash lia- Bor- Total Numaanndd FFDDIICC assets 3 bbiilliittiieess row- ccaappiittaall bbeerr iinnssuurraannccee Total Loans aanndd Total3 Demand ings aacc-- ooff l 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,( 554 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, i$ 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310.730 273,657 15,077 443 6,712 140,702 110,723 3,571 25.277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dcc. 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 1972—Dec. 31.. 594,502 411,525 66,679 116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Mar. 28.. 606.852 428,235 178 ,617 89,402 724,105 594,805 25,721 4,339 11,322 219,601 333,821 43,921 53,529 13,766 June 30.. 630,379 452,587 57,532 120,261 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 Oct. 17.. 647.853 467,941 52,485 127,426 101,182 780,051 633,069 28,443 6,570 5,820 234,493 357,743 55,888 56,714 13,923 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6, 786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9, 229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 •3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—Dec. 317. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 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 1 2,874 6,181 137,116 201,318 33,804 31,867 4,629 Oct. 17.. 377,128 276,956 27,628 72,544 63,550 460,019 368,240 15,797 3,404 3,368 136,108 209,564 38,801 32,504 4,642 Sta 1 t 9 e 4 m 1— em D b e e c r . : 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3, 7 i 39 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4, 411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—Dec. 317. 90,088 65,560 10,257 14,271 24,313 119,219 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 1972—Dec. 31.. 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Mar. 28.. 117,547 87,421 30 ,126 24,248 148,345 117,906 10,511 1,495 2,457 43,377 60,065 12,044 10,973 1,074 June 30.. 121,052 91,095 9,429 20,527 26,891 155,017 123,016 12,671 2,005 1,986 45,322 61,032 12,725 11,231 1,076 Oct. 17.. 125,715 95,056 8,863 21,796 25,491 158,250 123,123 11,505 2,604 1,146 44,735 63,132 15,352 11,432 1,078 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—Dec. 317. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1972—Dec. 31.. 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 i 52,876 73,685 1,199 10,938 8,017 1973—Mar. 28.. 134,306 86,368 47 ,939 11,365 149,725 131,558 1,076 559 1,999 49,223 78,701 1,541 11,631 8,085 June 30.. 139,471 91,304 16,452 31,716 13,490 157,461 138,171 1,248 567 2,241 52,735 81,379 1,884 • 12,143 8,137 Oct. 17.. 145,010 95,929 15,994 33,087 12,141 161,783 141,706 1,141 563 1,305 53,650 85,047 r 1,735i 12,778 8,203 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 Interbank 3 Other FFFRRRSSS aaa nnn mmm ddd eee FFF mmm DDD bbbeee IIICCC rrrsss hhhiiippp aaa CCC ssssss aaa eee sss ttt hhh sss 333 bbbiii lll lll iii iii aaa tttiii --- eeesss rrr BBB ooo ooo www rrr --- --- ccc TTT aaappp ooottt iiittt aaa aaa lll lll NNN bbb uuu eee mmm rrr --iiinnnsssuuurrraaannnccceee TToottaall LLooaa ll nnss T U r u e . r S a y . s - Oth 2 er ccc ccc ooo aaa aaa uuu aaa ppp nnn nnn ccc iii ddd --- ttt tttsss aaa lll 444 TToottaall33 m D a e n - d Time U. D S. e n land Tim 5 e iiinnngggsss cccooo aaa uuu ccc nnn --- tttsss bbbaaa ooo nnn fff kkk sss Govt. Other Noninsured nonmember: 1941—Dec. 31 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1945—Dec. 31 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 316 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30? 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dcc. 31 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1971—Dec. 31 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—June 30 5,915 4,732 345 838 1,892 8,196 4,438 488 145 26 1,779 2,000 885 500 204 Total nonmember: 1941 —Dec. 31 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1963—Dec. 20 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—Dec. 31 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1967—Dec. 30 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 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 1 Beginning June 30, 1966, loans to farmers directly guaranteed by 9 Regarding reclassification as a reserve city, see Aug. 1962 BULLETIN, CCC were reclassified as securities, and Export-Import Bank portfolio p. 993. For various changes between reserve city and country status in fund participations were reclassified from loans to securities. This reduced 1960-63, see note 6, p. 587, May 1964 BULLETIN. (See also note 8.) "Total loans" and increased "Other securities" by about $1 billion. "Total 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 • JANUARY 1974 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments Class of lo T a o n ta s l 1 F er e a d l - Com- o p r u r c c F a h r o a r r s y i i n n g g in f s in ti a T tu n o t c i i o a n l s Other, U s . e S c . u T r r it e i a es su 6 r y State bank and and funds mer- Agri- securities Real to and call date invest- sold, Total cial cul- es- in- Other local Other ments etc. 2 3, 4 a i n n d - a tu l r 5 - b T r o o - tate v d id i- - Bills s g e o c v u t - , r s it e i c e u s - 5 d tr u ia s- l k an er d s ot T h o er s 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 ,660 830 1,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1972—Dec. 3110 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028 89,504 27,579 1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877 91,312 29,787 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.. '14,274 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—June 30.. 630,379 26,162 426,425 148,825 15,967 7,295 4,727 9,060 27,574 108,008 94,060 10,909 57,532 90,967 29,293 Oct. 17. . 647,853 28,567 439,375 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 1947—Dec. 31.. 97,846 32,628 16,962 ,046 811 1,065 113 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1972—Dec. 31 io 466,169 19,961 309,969 112,110 8,495 10,863 3,870 5,783 22,026 73,131 64,490 9,201 48,715 69,640 17,884 1973—June 30.. 490,908 19,705 341,577 127,194 9,467 7,103 4,122 8,634 26,258 79,840 69,006 9,953 41,080 69,374 19,172 Oct. 17. . 502,843 20,824 351,189 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 7,057 841 2,271 6,413 5,789 5,225 2,390 5,696 9,107 1,518 1973—June 30.. 79,212 1,394 64,033 31,880 4,563 772 3,776 8,776 6,352 5,158 2,676 4,661 7,224 1,900 Oct. 17. . 81,550 1,578 65,392 City of Chicago:11 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31. . 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1972—Dec. 31 io 21,362 718 15,576 7,851 140 ,330 282 341 2,780 1,0 66 1,138 648 1,873 2,820 375 1973—June 30.. 24,566 1,097 18,549 10,034 129 843 313 598 3,558 1,146 1,207 721 1,715 2,796 409 Oct. 17.. 25,802 1,229 Other large banks:11 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 387 29,552 8,016 5,653 15,883 ,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 ,342 1,053 1972—Dec. 31 io 171,618 9,927 116,802 44,483 ,977 2,024 1,707 2,716 10,268 27,014 22,669 3,943 16,316 24,049 4,523 1973—June 30.. 180,726 9,333 129,182 50,457 2,241 1,415 1,784 3,603 11,440 29,705 24,357 4,181 13,066 24,435 4,710 Oct. 17.. 184,252 9,210 132,627 All other member:11 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,544 16,722 1,342 I,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 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—June 30.. 206,404 7,882 129,813 34,824 7,015 282 1,253 657 2,484 42,638 38,284 2,376 21,638 34,919 12,153 Oct. 17.. 211,239 8,807 133,947 Nonmember: 1947—Dec. 31.. 18,454 5,432 ,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 1,219 1,427 28,359 25,410 1,067 16,797 21,939 10,615 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for 1941 and 1945 appear in the add to the total and are not entirely comparable with prior figures. Total table on pp. A-18—A-21. loans continue to be shown net. See also note 10. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed 2 Includes securities purchased under resale agreements. Prior to June 30, by CCC were reclassified as "Other securities," and Export-Import Bank 1967, such securities were included in loans—for the most part in loans to portfolio fund participations were reclassified from loans to "Other "Banks." Prior to Dec. 1965, Federal funds sold were included with securities." This increased "Other securities" by about $1 billion. "Total" loans and loans to "Banks." 6 Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes), Deposits Accumulated for Payment of Personal at book value; they do not add to the total (shown at book value) and are Loans, p. A-30. not entirely comparable with prior figures. See also note 10. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 w F e R a r . i n v e R th k - e . s s r C c a e o n n u i d c r 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 ju m p D s o d a 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 a d t t e l . c C c h o f a e e i e f n e r r f 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 l g a o o t n c a v a d t t e l . IPC 3 r B i o n o w g r s - - C t a a p l ietc. Total:3 1947—Dec. 31.... 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 866 34,383 10,059 1972—Dec. 31 io. 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 606 37,161 277,683 38,083 52,658 1973—June 30... 25,143 7,669 29,842 202,109 26,978 4,069 10,434 18,166 11,162 207,625 5,590 730 40,734 304,265 49,299 55,740 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 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 54 111 826 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—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 Oct. 17... 30,983 9,230 24,957 203,878 24,626 3,816 5,820 15,613 9,903 208,977 6,571 580 42,907 314,256 55,888 56,714 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 36,357 41,228 1973—June 30... 25,143 5,754 18,004 148,306 25,684 3,627 8,167 13,251 8,781 160,407 4,879 569 30,812 230,969 46,529 43,098 Oct. 17... 30,983 7,016 16,007 150,891 23,667 3,634 4,514 11,206 8,380 161,257 6,008 427 32,392 239,878 54,153 43,936 New York C/7v;U 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—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 Oct. 17... 5,972 581 4,567 22,240 10,617 2,656 644 497 3,358 25,615 3,809 2,371 31,522 13,260 8,405 City of Chicago: a 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 20 1,552 237 66 3,160 719 377 1947—Dec. 31.... 1,070 30 175 3,737 1,196 21 72 285 63 3,853 902 426 1972—Dec. 31 i®. 1,496 152 173 5,783 1,516 99 509 223 264 6,899 160 95 847 9,237 3,008 1,891 1973—June 30... 1,512 126 138 5,827 1,206 117 299 225 229 6,918 392 224 930 11,357 4,146 1,947 Oct. 17... 1,576 124 333 5,136 1,303 137 141 314 206 6,542 459 2 ,360 11,656 5,827 1,988 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,e 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—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 Oct. 17.. 13,367 2,234 3,900 49,190 8,408 742 1,768 3,107 2,587 58,604 1,388 233 13,167 86,214 27,830 15,450 All other member: 11 1941—Dec. 31... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1972—Dec. 31 io 8,794 3,807 9,681 76,597 4,047 70 3,238 8,726 2,571 72,384 395 181 13,373 101,243 4,455 16,608 1973—June 30.. 9,305 3,373 8,211 72,658 3,353 118 3,766 8,426 2,421 68,737 342 167 14,661 107,293 6,753 17,604 Oct. 17.. 10,068 4,077 7,208 74,325 3,340 99 1,962 7,288 2,229 70,496 352 161 15,494 110,485 7,236 18,091 Nonmember:3 1947—Dec. 31... 3,947 13,595 385 55 167 1,295 180 12,284 190 172 6,858 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, 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports and one through June 1962. Those banks are not included in all insured or (including figures for all bank-premises subsidiaries and other significant total banks. majority-owned domestic subsidiaries) and (2) reporting of figures for A small noninsured member bank engaged exclusively in trust business total loans and for individual categories of securities on a gross basis—that is treated as a noninsured bank and not as a member bank for the period is before deduction of valuation reserves. See also notes 1 and 6. June 30, 1969-June 30, 1970. 11 Beginning Nov. 9,1972, designation of banks as reserve city banks for Comparability of figures for classes of banks is affected somewhat by reserve-requirement purposes has been based on size of bank (net demand changes in F.R. membership, deposit insurance status, and the reserve deposits of more than $400 million), as described in the BULLETIN for classifications of cities and individual banks, and by mergers, etc. July 1972, p. 626. Categories shown here as "Large" and "All other" For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS • JANUARY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. i 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 Agrimer- U.S. others Total and culcial Treas- Other indus- tural banks ury se- trial U.S. U.S. se- curi- Treas- Other Treas- Other curi- ties ury sees. ury sees. ties sees. sees. Large banks— Total 1972 Dec. 6 316,846 12,817 11,571 791 295 160 220,018 88,794 2,737 1,649 7,790 205 2,843 1 3 318,315 13,212 12,054 658 348 152 220,695 89,374 2,781 887 7,715 207 2,858 20 322,157 12,778 11,230 827 464 257 225,178 90,794 2,788 1,154 8,767 220 2,890 2 7 325,375 13,356 11,054 ,424 541 337 227,414 91,103 2,841 1,663 8,615 264 2,911 1973 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 1 4 360,150 15,811 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 2 8 359,766 14,447 12,843 1,100 321 183 262,469 107,411 3,428 623 5,564 142 2,865 Dec. 5* 363,957 15,410 13,771 1,144 332 163 263,541 107,959 3,419 760 5,340 144 2,841 12* 366,024 13,951 12,253 1,128 401 169 265,410 108,222 3,475 902 6,090 150 2,840 19* 368,702 15,015 13,581 831 402 201 267,945 109,119 3,477 1,020 5,572 148 2,843 26* 374,617 18,248 16,187 1,371 502 188 270,633 109,821 3,535 1,739 6,225 153 2,825 New York City 1972 Dec. 6. 66,212 439 432 51,010 25,01 1,494 4,8 684 13. 66,740 923 914 50,430 25,122 761 4,746 709 20. 68,218 914 879 52,491 25,780 992 5,564 726 27. 69,270 1,354 1,317 53,204 25,739 1,443 5,355 732 Nov. 7. 79,250 1,060 940 120 63,271 30,783 107 1,318 3,781 685 14. 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. 78,616 2; 298 2,178 120 61,839 30,935 112 514 3,296 652 Dec. 5*. 79,386 1,439 1,398 40 62,091 31,084 1 671 3,077 647 12*. 80,632 1,164 1,134 10 62,795 30,928 125 764 3,776 638 19*. 81,081 1,354 1,323 10 63,530 31,238 127 901 3,250 647 26*. 83,249 2,213 2,163 50 64,990 31,439 131 1,598 3,890 633 Outside New York City 1972 Dec. 6 250,634 12,378 11.139 787 295 157 169,008 63,783 2,693 155 2,902 167 2,159 1 3 251,575 12,289 11.140 654 348 147 170,265 64,252 2,734 126 2,969 170 2,149 20 253,939 11,864 10,351 823 464 226 172,687 65,014 2,743 162 3,203 184 2,164 2 7 256,105 12,002 9,737 1,420 541 304 174,210 65,364 2,795 220 3,260 228 2,179 1973 Nov. 7 283,957 15,230 13,460 1,192 349 229 200,000 76,258 3,299 127 2,231 108 2,218 1 4 282,096 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 2 8 281,150 12,149 10,665 980 321 183 200,630 76,476 3,316 109 2,268 111 2,213 Dec. 5* 284,571 13,971 12,373 1,104 332 162 201,450 76,875 3,308 89 2,263 114 2,194 12* 285,392 12,787 11,119 1,118 401 149 202,615 77,294 3,350 138 2,314 109 2,202 19* 287,621 13,661 12,258 821 402 180 204,415 77,881 3,350 119 2,322 108 2,196 26* 291,368 16,035 14,024 1,321 502 188 205,643 78,382 3,404 141 2,335 112 2,192 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 Notes and bonds To commercial maturing— banks Wednesday Consumer For- All Certifinstal- eign other Bills icates m D e o s - - e F i o g r n - ment govts.2 W 1 i t y h r i . n 5 1 y t r o s . 5 A f y t r e s r . tic Large banks— Total 1972 2 2 2 2 , , , , 3 0 1 3 1 4 2 7 3 3 6 6 3 3 3 3 , , , , 0 0 1 2 6 9 6 2 8 4 4 2 2 2 2 2 7 8 7 7 , , , , 8 1 8 9 3 1 1 6 6 5 3 3 1 1 1 1 , , , , 1 1 1 1 4 5 6 4 6 8 1 6 1 1 1 1 8 8 7 8 , , , , 0 7 8 1 5 2 2 2 4 6 5 3 2 2 2 2 8 8 8 8, , , , 6 3 1 2 4 5 8 0 5 7 5 1 6 6 6 5 , , , 3 1 9 , 4 1 f 5 " 3 0 7 4 4 4 4, , , , 4 4 3 5 1 9 3 1 3 5 5 4 1 1 1 1 4 4 5 5 , , , , 9 0 8 0 5 0 7 4 8 5 4 2 2 2 2 2 , , , , 7 7 5 5 0 1 6 5 9 0 5 0 Dec. 2 2 1 6 7 0 3 1973 3 3 3 3 , , , , 5 8 4 7 2 6 0 9 6 3 6 0 4 4 4 4 , , , , 4 3 5 4 9 6 4 2 5 5 3 2 3 3 3 3 2 2 2 2 , , , , 3 2 5 4 9 9 3 5 1 8 6 0 1 1 1 1 , , , , 4 4 4 3 0 3 0 5 8 5 3 4 2 2 2 2 1 0 0 0 , , , , 1 2 1 2 7 7 6 8 1 8 6 0 2 2 2 2 4 4 4 4 , , , , 1 2 8 1 2 5 7 8 9 7 2 0 4 4 5 5 , , , , 8 4 1 0 3 3 1 5 7 4 4 2 4 4 4 3 , , , , 4 0 4 91 2 7 1 1 6 9 5 1 1 1 1 1 1 2 2 , , , , 9 8 4 3 0 6 1 5 8 5 6 4 2 2 3 3 , , , , 7 8 4 6 2 0 9 0 1 4 6 6 Nov. 2 2 1 7 8 1 4 4 4 3 3 . . , , 0 0 9 9 2 2 8 9 1 2 7 2 4 4 5 5 , , , , 6 8 0 1 7 8 9 6 8 3 9 6 3 3 3 3 2 2 2 2 , , , , 5 8 6 9 9 3 9 4 1 8 8 2 1 1 1 1 , , , , 5 5 4 5 3 8 2 8 8 9 7 0 2 2 2 2 0 0 0 1 , , , , 3 2 8 0 4 0 9 1 9 6 5 0 2 2 2 2 5 6 5 5 , , , , 4 2 5 9 4 0 2 7 1 1 7 4 6 6 5 5 , , , , 7 4 7 0 7 5 6 7 9 2 4 6 4 4 4 4 , , , , 1 1 0 0 0 7 3 1 9 4 3 3 1 1 1 1 2 2 2 2 , , , , 4 2 1 2 9 2 9 16 1 9 8 3 3 3 3 , , , , 3 4 4 3 5 1 6 7 1 9 5 4 Dec. 2 1 1 6 2 5 9 P " p p New York City 1972 6 5 5 5 3 2 4 1 5 8 3 6 1 1 1 1 , , , , 5 5 4 5 6 0 6 8 9 9 3 2 2 2 2 2, , , , 1 1 0 0 3 1 6 8 1 7 3 6 7 7 7 7 3 3 3 3 6 9 2 4 3 3 3 3 , , , , 9 9 6 7 1 1 5 3 8 9 9 4 4 5 5 5 , , , , 2 8 1 0 2 0 2 0 8 0 3 9 1 1 1 1 , , , , 2 4 2 4 5 3 6 8 9 7 5 6 7 7 7 7 5 2 2 4 4 0 0 4 2 2 2 2 , , , , 7 6 6 7 5 2 3 6 6 0 0 4 2 2 3 1 8 0 2 9 1 3 7 4 Dec. 2 2 1 6 7 0 3 1973 1 1 1 1 , , , , 4 6 3 6 6 6 6 4 8 8 1 7 2 2 1 1 , , , , 0 0 9 9 6 9 7 3 6 0 2 0 2 2 2 2 , , , , 4 4 4 4 1 1 4 3 1 9 3 2 6 7 7 7 4 2 8 2 8 8 5 2 4 4 4 5 , , , , 4 3 4 2 5 9 4 0 6 0 0 0 4 4 4 5 , , , , 7 8 8 0 1 3 9 2 9 4 0 9 1 1 1 1 , , , , 1 4 7 7 8 4 9 3 8 3 7 4 6 6 7 7 1 6 5 8 1 4 9 7 1 1 1 1 , , , , 7 6 6 6 1 5 3 8 9 9 4 1 1 1 , , 1 1 6 7 8 9 6 5 6 3 7 0 Nov. 2 2 1 7 8 1 4 1 1 1 1 , , , , 6 7 7 6 9 0 3 6 8 5 5 7 2 2 2 2 , , , ,1 0 3 3 8 8 5 0 5 9 4 8 2 2 2 2 , , , , 4 4 4 4 4 6 4 8 9 6 6 0 7 7 7 7 0 6 6 6 1 8 3 2 4 4 4 4 , , , , 6 4 5 4 8 8 8 8 1 9 4 4 6 5 5 5 , , , , 5 6 8 0 8 1 6 8 8 4 9 1 2 2 2 2 , , , , 4 0 1 1 8 9 6 2 9 5 2 0 6 7 7 5 1 8 1 6 5 3 2 5 1 1 1 1 , , , , 7 6 7 7 0 7 6 6 3 8 8 9 1 1 1 1 , , , , 2 1 1 1 0 7 5 6 1 7 5 0 Dec. 2 1 1 5 6 2 9 " " " " Outside New York City 1972 1 1 1 1 , , , , 7 5 7 6 4 1 7 1 1 5 0 0 1 1 1 1 , , , , 6 6 5 5 5 5 8 2 9 5 6 5 2 2 2 2 5 5 5 5 , , , , 5 7 8 9 2 7 3 8 7 5 6 4 4 4 4 4 0 2 1 2 7 6 0 7 1 1 1 1 4 4 4 4 , , , , 0 7 1 5 9 6 3 0 1 7 6 4 2 2 2 2 3 3 3 3 , , , , 3 1 0 6 9 2 8 1 8 9 5 6 4 4 5 5 , , , , 6 6 0 3 7 9 8 2 3 2 4 2 3 3 3 3 , , , , 7 6 6 7 4 1 9 7 1 5 3 0 1 1 1 1 2 2 2 2 , , , , 3 2 2 2 2 4 8 5 8 1 4 6 2 2 2 2 , , , , 3 3 4 3 7 4 2 8 1 7 9 2 Dec. 2 2 1 6 7 0 3 1973 2 2 2 2 , , , , 1 0 0 1 5 4 4 9 3 5 8 5 2 2 2 2 , , , , 4 4 4 3 2 9 5 9 9 3 3 2 2 2 3 3 9 9 0 0 , , , , 8 0 0 9 1 9 8 7 8 3 7 2 6 6 6 7 6 6 0 8 9 7 0 1 1 1 1 1 5 5 5 5 , , , , 9 8 7 8 7 3 7 2 1 8 6 4 1 1 1 1 9 9 9 9 , , , , 5 8 2 2 3 4 9 9 8 3 5 0 3 3 3 3 , , , , 3 3 2 3 1 1 4 9 8 7 6 4 3 3 3 3 , , , ,7 3 7 2 1 1 2 4 8 6 9 7 1 1 1 1 0 0 0 0 , , , , 1 7 2 7 8 3 0 2 9 5 0 6 2 2 2 2 , , , , 4 3 0 0 1 1 5 5 3 0 4 4 Nov. 2 2 1 7 1 8 4 2 2 2 2 , , , , 7 8 6 5 9 0 9 9 5 7 5 3 ! j 3 3 3 3 0 0 0 0 , , , , 2 1 4 3 4 4 6 7 9 5 2 2 8 7 8 7 1 2 7 21 8 6 5 1 1 1 1 6 6 5 5 , , , , 4 2 7 8 2 2 1 6 6 2 4 0 2 2 1 1 0 0 9 9 , , , , 1 1 9 8 0 2 3 2 5 0 9 7 3 3 3 3 , , , , 6 9 9 6 6 1 8 4 4 3 4 4 3 3 3 3 , , , , 3 5 4 2 9 4 6 5 8 4 2 0 1 1 1 1 0 0 0 0 , , , , 5 4 5 7 2 1 6 2 1 3 0 2 2 2 2 2, , , , 2 1 2 2 5 1 8 6 1 9 4 2 Dec. 5 2 1 1 * 6 9 2 > " " 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 • JANUARY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities CCaasshh IInnvveesstt-- Obligations Other bonds, iitteemmss Re- BBaall-- mmeennttss Total of State corp. stock, iinn serves Cur- aanncceess iinn ssuubb-- assets/ Wednesday and and pprroocceessss with rency wwiitthh ssiiddiiaarr-- Other total political securities ooff F.R. and ddoo-- iieess nnoott assets liabil- Total subdivisions ccoolllleecc-- Banks coin mmeessttiicc ccoonnssooll-- ities ttiioonn bbaannkkss iiddaatteedd Tax Certif. war- All of All rants 3 other partici- other5 pation4 Large banks— Total 1972 Dec. 6 55,654 8,898 37,907 1,771 7,078 28,841 18,423 3,837 10,309 1,084 17,295 396,635 1 3 56,223 8,969 38,382 1,800 7,072 28,178 21,174 4,275 9,766 1,084 17,239 400,031 20 56,000 9,039 38,100 1,766 7,095 31,299 19,927 4,184 10,535 1,094 17,379 406,575 2 7 55,960 8,971 38,142 1,760 7,087 34,192 16,452 4,689 11,291 1,096 17,493 410,588 1973 Nov. 7 59,466 7,749 39,187 2,212 10,318 36,848 20,940 3,955 14,314 1,355 20,599 461.218 1 4 58,572 7,348 38,666 2,230 10,328 36,059 25,990 4,360 12,417 1,360 19,883 460.219 21 58,637 7,180 38,970 2,193 10,294 31,700 23,570 4,021 10,576 1,363 20,033 449,825 2 8 58,593 7,152 38,907 2,298 10,236 31,361 22,713 4,745 12,228 1,368 20,016 452,197 Dec. 5* 59,032 7,152 39,411 2,278 10,191 32,576 22,285 4,064 11,865 1,367 20,773 456,887 12* 60,462 7,603 39,999 2,341 10,519 34,479 20,303 4,601 14,083 1,364 20,553 461,407 19* 60,301 7,385 40,121 2,327 10,468 34,915 24,720 4,538 12,696 1,381 20,885 467,837 26* 60,209 7,405 39,940 2,351 10,513 29,772 18,052 4,846 7,480 1,396 21,139 457,302 New York City 1972 Dee. 6 9,535 2,485 5,451 545 1,054 10,236 4,751 492 4,262 544 5,282 91,779 1 3 10,287 2,710 5,896 578 1,103 9,314 5,603 501 3,690 544 5,201 91,593 20 10,010 2,829 5,582 543 1,056 11,064 4,847 480 4,219 542 5.441 94,811 2 7 9,683 2,672 5,462 540 1,009 11,986 3,260 512 4,431 544 5,463 95,466 1973 Nov. 7 10,029 2,311 5,070 611 2,037 16,504 5,719 508 7,972 663 5,945 116,561 1 4 9,790 2,368 4,803 601 2,018 13,296 7,197 511 6,431 662 5,636 111,787 21 9,853 2.247 4,975 590 2,041 9,870 5,358 454 4,328 665 5,909 104,572 2 8 9,760 2.248 4,878 594 2,040 11,711 5,387 539 6,308 668 5,804 109,033 Dec. 5* 9,987 2,214 5,114 588 2.071 10,872 6,024 516 5,306 664 5,991 108,759 12* 10,592 2,392 5,473 608 2,119 12,511 5,106 533 7,713 667 5,942 113,104 19* 10,583 2,266 5,622 590 2,105 11,992 7,053 517 5,863 666 6,123 113,295 26* 10,458 2,264 5,526 599 2,069 7,613 3,805 546 1,512 670 6,118 103,513 Outside New York City 1972 Dec. 6 46,119 6,413 32,456 1,226 6,024 18,605 13,672 3,345 6,047 540 12,013 304,856 1 3 45,936 6,259 32,486 1,222 5,969 18,864 15.571 3,774 6,076 540 12,038 308,438 20 45,990 6,210 32,518 1,223 6,039 20,235 15,080 3,704 6,316 552 11,938 311,764 27 46,277 6,299 32,680 1,220 6,078 22,206 13,192 4,177 6,860 552 12,030 315,122 1973 Nov. 7 49,437 5,438 34,117 1,601 8,281 20,344 15,221 3,447 6,342 692 14,654 344,657 1 4 48,782 4,980 33,863 1,629 8,310 22,763 i8,793 3,849 5,986 698 14,247 348,432 21 48,784 4,933 33,995 1,603 8,253 21,830 18,212 3,567 6,248 698 14,124 345,253 28... 48,833 4,904 34,029 1,704 8,196 19,650 17,326 4,206 5,920 700 14,212 343,164 Dec. 5* 49,045 4,938 34,297 1,690 8,120 21,704 16,261 3,548 6,559 703 14,782 348,128 12* 49,870 5,211 34,526 1,733 8,400 21,968 15,197 4,068 6,370 697 14,611 348,303 19* 49,718 5,119 34,499 1,737 8,363 22,923 17,667 4,021 6,833 715 14,762 354,542 26* 49,751 5,141 34,414 1,752 8,444 22,159 14,247 4,300 5,968 726 15,021 353,789 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi- and Dopolit- fied polit- mes- For- Total IPC ical U.S. and Total 6 ical tic eign sub- Govt. Com- Mutual Com- offi- sub- inter- gOVtS.2 divi- mer- sav- Govts., mer- cers' Sav- Other divi- bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1972 154,028 109,290 6,505 4,384 22,542 724 1,018 3,205 6,360 158,633 58,259 72,878 17,875 2,985 6,017 Dec. 6 152,099 111,905 6,751 i,615 20,698 662 983 3,078 6,407 159,867 58,162 73,162 18,767 2,997 6,161 13 160,530 114,452 6,718 5,980 21,062 695 932 3,284 7,407 160,440 58,091 73,199 19,253 3,050 6,226 20 166,145 119,052 7,043 5,073 22,652 744 1,005 3,486 7,090 161,395 58,284 73,567 19,512 3,067 6,329 27 1973 164,691 112.458 6,800 2,200 28,248 820 1,021 3,999 9,145 187,077 56,257 94,097 22,079 5,622 8,525 Nov. 7 159,601 112,884 6,410 1,494 23,768 685 888 4,011 9,461 186,338 56,262 93,622 21,886 5,795 8,278 14 153,280 111,914 6,450 2,424 21,189 629 954 3,835 5,885 186,468 56,315 93,872 21,670 5,815 8,310 21 156,083 112.459 6,173 2,138 22,406 604 1,055 3,777 7,471 186,481 56,278 94,014 21,568 5,849 8,267 28 159,314 113,193 6,406 2,449 23,532 683 1,164 4,155 7,732 186,071 56,383 93,822 21,617 5,690 7,973 Dec. 5® 163,856 115,463 6,416 1,503 25,090 623 1,246 4,151 9,368 187,609 56.304 94,678 22,250 5,521 8,302 12® 167,002 116,870 6,390 5,600 23,278 670 1,163 4,180 8,851 187,036 56,241 93,738 22,769 5,538 8,319 19® 161,824 121,364 6,714 5,152 16,767 639 1,024 4,670 5,494 188,273 56.305 94,858 22,738 5,643 8,295 26® New York City 1972 41,466 23,115 373 809 10,681 360 863 2,363 2,902 27,022 5,628 14,963 1,695 1,707 2,931 Dec. 6 39,421 23,579 361 233 9,029 340 823 2,222 2,834 27,236 5,921 15,066 1,712 1,694 3,047 13 43,916 25,072 561 1,527 9,462 338 762 2,376 3,818 27,187 5,596 14,897 1,750 1,762 3,128 20 45,892 26,466 554 1,048 10,501 385 831 2,568 3,539 27,426 5,603 15,046 1,833 1,722 3,102 27 1973 52,027 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 45,954 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 40,924 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 44,706 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 44,601 23,794 443 558 11,283 367 966 3,158 4,032 34,682 4,965 19,599 2,156 3,936 3,933 Dec. 5® 48,456 24,722 338 206 13,305 308 1,059 3,084 5,434 34,995 4,958 19,993 2,110 3,736 4,104 12® 47,368 24,812 360 1,510 11,399 368 973 3,060 4,886 34,445 4,949 19,336 2,210 3,733 4,144 19® 40,692 27,034 513 1,176 5,144 350 825 3,554 2,096 34,475 4,958 19,407 2,131 3,722 4,179 26® Outside New York City 1972 112,562 86,175 6,132 3,575 11,861 364 155 842 3,458 131,611 52,631 57,915 16,180 1,278 3,086 Dec. 6 112,678 88,326 6,390 1,382 11,669 322 160 856 3,573 132,631 52,541 58,096 17,055 1,303 3,114 13 116,614 89,380 6,157 4,453 11,600 357 170 908 3,589 133,253 52,495 58,302 17,503 1,324 3,098 20 120,253 92,586 6,489 4,025 12,151 359 174 918 3,551 133,969 52,681 58,521 17,679 1,345 3,227 27 1973 112,664 86,730 6,336 1,723 12,564 420 158 1,018 3,715 153,021 51,291 74,987 20,005 1,886 4,434 Nov. 7 1 1 1 1 3 2 , , 6 35 4 6 7 8 88 9 , , 0 1 6 3 3 2 6 6 , ,0 0 1 4 7 4 1 1, , 9 3 6 4 6 4 1 1 1 1 , , 7 2 3 9 8 9 3 3 3 0 9 6 1 1 5 5 7 0 1 1 , , 0 0 6 7 2 2 3 3 , , 8 4 3 8 1 3 1 15 5 1 1 , , 5 7 1 8 6 0 5 5 1 1 , , 2 3 8 5 5 4 7 7 4 4 , , 1 1 7 6 3 6 1 1 9 9 , ,7 5 4 2 3 2 1 1 , , 8 7 6 7 1 6 4 4 , ,3 2 0 8 9 2 2 14 1 111,377 87,893 5,829 1,775 10,845 293 160 1,000 3,582 151,568 51,317 74,320 19,428 1,805 4,269 28 114,713 89,399 5,963 1,891 12,249 316 198 997 3,700 151,389 51,418 74,223 19,461 1,754 4,040 Dec. 5® 115,400 90,741 6,078 1,297 11,785 315 187 1,067 3,930 152,614 51.346 74,685 20,140 1,785 4,198 12® 119,634 92,058 6,030 4,090 11,879 302 190 1,120 3,965 152,591 51,292 74,402 20,559 1,805 4,175 19® 121,132 94,330 6,201 3,976 11,623 289 199 1,116 3,398 153,798 51.347 75,451 20,607 1,921 4,116 26® For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS • JANUARY 1974 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 n ties of pur- F.R. ties, Secur- ac- loans invest- mand banks chased, Banks Others etc. 8 Loans ities counts (gross) ments deposits to etc. 7 ad- (gross) ad- Issued Issued their justed 9 ad- justed i o Total to to foreign justed 9 IPC's others branches Large banks— Total 1972 Dec. 6 32,768 150 2,237 15,201 4,207 29,339 219,221 303,232 98,261 43,665 28,300 15,365 1,618 1 3 36,026 898 2,128 15,372 4,202 29,367 219,727 304,135 101,608 44,173 28,554 15,619 1,705 20 32,866 1,238 2,023 15,92l2 4,170 29,315 224,413 308,614 102,189 44,355 28,520 15,835 1,807 2 7 31,085 1,293 1,878 15,151 4,139 29,431 227,340 311,945 104,228 44,911 28,822 16,089 1,400 1973 Nov. 7 49,546 531 5,894 17,488 4,613 31,313 261,698 345,344 97,395 64,470 42,554 21,916 1,692 1 4 51,676 3,699 5,645 17,223 4,613 31,359 259,760 342,461 98,280 63,814 41,979 21,835 1,826 21 48,791 975 5,653 18,678 4,606 31,309 259,204 342,713 97,967 64,117 42,257 21,860 2,428 2 8 48,407 1,025 5,533 18,598 4,606 31,399 260,267 343,117 100,178 64,042 42,377 21,665 2,479 Dec. 5* 50,823 370 5,818 18,227 4,615 31,584 261,193 346,199 100,757 63,429 42,194 21,235 1,946 12* 48,232 1,350 5,795 18,344 4,585 31,571 263,116 349,779 102,784 64,442 43,044 21,398 1,973 19* 52,315 1,267 5,588 18,596 4,547 31,520 265,358 351,100 103,209 63,366 41,999 21,367 2,432 26* 47,759 274 5,274 17,759 4,513 31,560 268,672 354,408 110,133 64,390 42,986 21,404 1,759 New York City 1972 Dec. 6 8,268 610 5,659 1,238 7,516 50,489 65,252 19,740 14,364 9,810 4,554 1,174 1 3 9,560 250 574 5,791 1,237 7,524 49,923 65,310 20,845 14,495 9,927 4,568 1,349 20 7,948 487 510 6,038 1,222 7,503 51,983 66,796 21,863 14,447 9,748 4,699 1,487 2 7 6,878 430 422 5,711 1,214 7,493 52,606 67,318 22,357 14,704 9,913 4,791 1,169 1973 Nov. 7 13,092 2,417 5,744 1,324 7,901 62,023 76,942 19,362 20,026 12,443 7,583 1,200 1 4 12,536 1,491 2,405 5,503 1,323 8,017 60,237 74,861 20,478 20,428 12,724 7,704 1,389 21 10,286 325 2,482 6,274 1,320 8,009 59,819 74,701 20,706 20,850 12,964 7,886 1,715 2 8 11,097 258 2,524 6,214 1.320 8,001 60,298 74,777 21,071 20,830 12,985 7,845 1,687 Dec. 5* 11,544 2,819 5,706 1.321 8,086 60,434 76,290 21,888 20,510 12,827 7,683 1,242 12* 10,715 715 2,950 5,870 1,306 8,097 61,158 77,831 22,434 20,871 13,184 7,687 1,220 19* 13,311 90 2,834 5,879 1,289 8,079 61,826 78,023 22,567 20,377 12,585 7,792 1,569 26* 10,900 2,536 5,571 1,273 8,066 63,335 79,381 26,759 20,436 12,708 7,728 1,316 Outside New York City 1972 Dec. 6 24,500 150 1,627 9,542 2,969 21,823 168,732 237,980 78,521 29,301 18,490 10,811 444 1 3 26,466 648 1,554 9,581 2,965 21,843 169,804 238,825 80,763 29,678 18,627 11,051 356 20 24,918 751 1,513 9,884 2,948 21,812 172,430 241,818 80,326 29,908 18,772 11,136 320 2 7 24,207 863 1,456 9,440 2,925 21,938 174,734 244,627 81,871 30,207 18,909 11,298 231 1973 Nov. 7 36,454 531 3,477 11,744 3.289 23,412 199,675 268,402 78,033 44,444 30,1 14,333 492 1 4 39,140 2,208 3,240 11,720 3.290 23,342 199,523 267,600 77,802 43,386 29,255 14,131 437 21 38,505 650 3,171 12,404 3,286 23,300 199,385 268,012 77,261 43,267 29,293 13,974 713 2 8 37,310 767 3,009 12,384 3,286 23,398 199,969 268,340 79,107 43,212 29,392 13,820 792 Dec, 5* 39,279 370 2,999 12,521 3,294 23,498 200,759 269,909 78,869 42,919 29,367 13,552 704 12* 37,517 635 2,845 12,474 3,279 23,474 201,958 271,948 90,350 43,571 29,860 13,711 753 19* 38,904 1,177 2,754 12,717 3,258 23,441 203,532 273,077 80,742 42,989 29,414 13,575 863 26* 36,859 274 2,738 12,188 3,240 23,494 205,337 275,027 83,374 43,954 30,278 13,676 443 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Inclydes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 Dec. Dec. Dec. Dec. Nov. 2nd 1st 26 19 12 5 28 Dec. Nov. Oct. IV III II half half Durable goods manufacturing: Primary metals 1,809 1,886 1,908 1,997 1,957 -148 -21 -78 -247 18 -102 -229 20 T M r a a c n h s i p n o e r r t y a tion equipment 2 6 , , 5 6 2 71 0 ] 6 2 , , 5 5 4 1 8 3 2 6 , ,3 4 5 4 3 4 2 6 , , 3 2 6 4 0 4 ] ] 62, 2"31" 4 1 4 5 0 6 119 3 -4 -6 2 9 3 1 9 3 0 6 4 2 7 7 9 2 64 3 5 2 6 3 1 6 5 2 1,45 6 3 4 Other fabricated metal products... 2,333' 2,3721 2,334 2,324 2 7 18 -10 15 56 267 71 503 Other durable goods 3,703 3,763 3,763 3,718 3,735 -32 -120 -211 -363 290 323 -73 872 Nondurable goods manufacturing: Food, liquor, and tobacco 4,157] 4,103 4,015 3,977] 269 211 -140 340 393 -194 733 -23 Textiles, apparel, and leather 3,219 3,295 3,326 3,330] -137 -119 -184 -440 235 275 -205 730 Petroleum refining 1,391 1,101 1,114 1,089 294 -84 -26 184 19 -7 203 211 C O h th e e m r ic n a o l n s d a u n r d a b r l u e b g b o e o r ds 2 2 , , 5 1 1 45 6 ] 2 2 , , 4 1 3 7 7 9 2 2 , ,1 41 8 6 2 2 2, , 1 4 7 25 6 ] 22, 4~68 -2 4 5 8 - - 9 1 1 5 -1 -2 5 5 5 -1 -6 9 5 8 1 4 5 8 6 1 6 5 3 7 -15 9 0 1 8 3 0 6 9 0 Mining, including crude petroleum and natural gas 3,804 3,775 3,816 3,801 i -6 -79 -148 -233 77 -156 331 Trade: Commodity dealers 1,842 1,8101 1,826 1,794 99 318 213 630 -42 -603 588 -540 Other wholesale 5,415I 5,318' 5,337] 5,341 5,321 94 -27 84 151 43 183 194 567 Retail 6,073 6,340] 6,312 6,522 6 -394 64 146 -184 165 457 -19 1,092 Transportation 5,964 5,951 5,879 5,857 161 -21 -126 14 66 283 80 294 Communication 2,026 1,992 1,927 1,902 138 -119 -97 -78 -13 79 -91 258 Other public utilities 5,877 5,786 5,675 5,695 352 328 -84 596 734 670 1,330 961 Construction 5,553 5,582 5,697] 5,588 -26 -69 -156 -251 212 624 -39 928 Services 11,056 10,944 10,748 10,815 351 190 24 565 362 455 927 997 All other domestic loans 8,271 8,146 8,042 7,977 408 28 -134 302 380 782 682 1,754 Bankers' acceptances 1,274 1,270 1,153 1,223 62 -21 158 199 -322 76 -123 -154 Foreign commercial and industrial loans 4,073 4,058 4,015 3,991 17 60 -54 23 -384 -18 -361 554 Total classified loans 91,6921 91,169 90,282] 90,146 • 2,128 553 -1,495 1,186 3,244 4,447 4,430 12,041 Total o c f o l m ar m ge e r c c o i m al m a e n r d c i i a n l d u b s a t n r k ia s l loans *109,821* >109,119* 107,959* 107,4J1 1 07,411 2,410 712 -1,534 1,588 3,370 4,998 4,958 13,760 See NOTE to table below. "TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1973 1973 1973 Industry Dec. Nov. Oct. Sept. Aug. July June May Apr. 2nd 26 28 31 26 29 25 27 30 25 IV half Durable goods manufacturing: T P M r r a i a m c n h a s i p r n y o e r r m t y a e t t i a on ls equipment. 2 1 1 , , , 1 8 2 0 6 8 6 0 8 1 2 1 1 , , , 7 2 2 2 5 4 9 1 0 2 1 1 , , , 7 2 2 3 3 6 4 3 0 2 1 1 , , , 6 3 2 8 1 6 1 0 1 2 1 1 , , , 6 2 2 3 2 9 8 4 6 2 1 1 , , , 6 1 2 6 9 9 4 3 3 1 2 1 1 , , , 6 1 3 4 8 2 1 9 8 21 1 , , ,15 3 66 1 0 4 8 21 1 ,, , 15 3 85 1 05 5 1 -2 1 0 8 1 5 9 8 3 -7 2 1 8 5 - 1 3 6 5 1 7 9 -2 2 2 9 2 2 7 1 O O t t p h h r e e o r r d d u u f c a r t a s b b ri le c a g te o d o ds metal 1,7 8 5 8 8 5 1,7 9 4 0 1 2 1,7 8 8 9 2 1 ] 1,7 8 7 6 7 3 1,7 84 30 6 1 1,7 8 2 6 0 1 ] 1,6 8 9 6 0 9 ] 1,5 8 9 3 2 3 ] 1,6 8 1 4 4 2 -1 2 9 2 1 1 8 7 4 0 | 28 65 1 ] 6 1 8 6 Nondurable goods manufacturing: Food, liquor, and tobacco. 1,491 1,466 1,465 1,472 1,405 1,410] 1,393 1,372 1,3551 19 79 116] 98 Textiles, apparel, and leather 1,001 1,0361 1,030 1,026 1,021 1,003 969] 942| 978 -25 57 77 169 32 Petroleum refining 933 839 883 920] 925 947] 876 885 858 13 44 34 144 57 Chemicals and rubber 1,561 1,509 1,535 1,553 1,494] 1,486 1,481 1,441 1,459 8 72 2 326 80 Other nondurable goods. . 1,071 1,058 1,076] 1,092 1,069 1,050| 1,063| 1,063 1,108 -21 29 -37 206 Mining, including crude petroleum and natural gas. 2,960| 2,950] 2,958 2,990] 2,921 3,022 2,846 2,908 2,895 -30] 144 -26 187 114 Trade: C O o th m e m r o w d h i o ty le s d a e le a lers.. 1,1 1 9 2 1 7 1,1 1 7 3 1 5 1,2 1 2 2 4 0 ] 1,1 1 7 1 8 6 ] L,1 1 4 1 9 5 I 1,1 1 1 7 8 8 1,016263 j 1,0 1 5 3 1 9 1,0 1 6 36 8 ) 1 1 1 3 1 -7 1 2 -2 1 7 1 1 2 6 9 1 12 4 5 Retail 2,2041 2,226! 2,179 2,145 2,1361 2,066 2,006 1,979 1,947 59 139l 183 231 198 Transportation 4,307 4,199 4,214] 4,272 4,287 4,255 4,305 4,161 4,202 35 -33 71 54 2 Communication 861 828 819 857 835 814] 785 760] 738 4 72 39 64] 76 O Co th n e s r t r p u u c b ti l o ic n utilities 3 1 , , 2 9 5 0 3 4 ] 3 1 , , 1 9 1 35 4 | 2 1 , ,9 8 5 5 2 3 1 2 1 , , 8 9 2 9 9 2 2 2, , 0 6 0 7 0 1 1 2 2 , , 5 0 4 0 8 9 2 1 , , 4 8 0 9 9 6 2 1 , , 3 8 2 5 8 2 21,,834030 - 4 8 2 8 4 42 9 0 6 ] ] 1 1 8 7 7 5 2 1 5 5 9 1 844 8 Services 5,029 4,899 4,752 4,701 4,646 4,568 4,562| 4,402 4,417 328 139 223 313 467 All other domestic loans 2,603 2,616 2,552| 2,585 2,458 2,389 2,201 2,180 2,061 18 384] 330| 274] 402 Fore d ig u n s t c ri o a m l m lo e a r n c s i al and in- 2,334] 2,306| 2,308 2,186| 2,292] 2,497 2,585] 2,647 2,410| 148 -399 181 201 -251 Total loans P40,727 *40,150 *39,820 f39,806 *39,158 f39,091 p38,283 *37,577 37,281 921 ,523 1,893 3,426 2,444 NOTE.—About 160 weekly reporting banks are included in this series; Commercial and industrial "term" loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount- an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article "Revised Series on Commercial and Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 DEMAND DEPOSIT OWNERSHIP • JANUARY 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdei 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 ot A h l e l r IPC All 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—Nov 14.5 60.5 26.7 1.3 6.2 109.2 Dec 14.7 64.4 27.1 1.4 6.6 114.3 1973—Jan 15.0 63.1 27.8 1.4 6.8 114.1 Feb 14.3 60.3 26.3 1.6 6.5 109.0 Mar 14.4 59.0 26.5 1.6 6.4 107.9 Apr 14.3 59.4 28.6 1.8 6.4 110.4 May 13.8 59.1 26.9 1.9 6.4 108.0 June 14.2 60.8 27.1 1.9 6.3 110.2 July 14.8 61.1 27.3 1.9 6.6 111.7 Aug 14.3 59.5 27.3 1.9 6.1 109.1 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 Nov 14.8 62.9 27.5 2.1 6.7 113.9 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Oct. 17, Class of Dec. 31, Dec. 31, June 30, Oct. 17, bank 1971 1972 1973 1973 bank 1971 1972 1973 1973 All commercial.... 680 559 538 All member—Cont. Insured 677 554 533 505 Other large banks 1 112 69 63 59 National member 387 311 304 281 All other member 1 371 313 312 291 State member.... 95 71 71 70 All nonmember 197 177 163 All member 482 381 375 350 Insured 195 172 158 155 Noninsured 2 5 5 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for NOTE.—These hypothecated deposits are excluded from "Time deposits" reserve-requirement purposes has been based on size of bank (net demand and "Loans" at commercial banks, as shown in the tables on pp. A-18, deposits of more than $400 million), as described in the BULLETIN for A-19, and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as "Other large" and "All other bottom of p. A-17. These changes resulted from a change in Federal member" parallel the previous "Reserve City" (other than in New York Reserve regulations. See June 1966 BULLETIN, p. 808. City and the City of Chicago) and "Country" categories, respectively These deposits have not been deducted from "Time deposits" and (hence the series are continuous over time). "Loans" for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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—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 1,768 333 1,435 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 ••1,809 r354 '1,455 Dec. 5 4,407 2,669 1,738 1,808 346 1,462 12 4,393 2,620 1,773 1,790 337 1,453 19 4,297 2,580 1,717 1,790 332 1,458 26 4,300 2,603 1,697 1,792 331 1,461 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 Other2 Total Own Bills Own eign United United bills bought acct. 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 1,1 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972—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 6,1 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 A M p a r y . . .. . 3 3 4 5 , , 4 6 0 7 4 2 1 1 , , 1 0 4 4 8 4 8 8, , 2 2 8 9 8 0 2 2 , , 7 9 6 2 7 2 2 2 2 3 , , 3 3 0 1 3 4 6 6, , 7 r 1 ~ 3 2 2 , ,0 1 6 9 8 7 1 1 , ,6 7 4 6 1 3 4 43 2 3 7 1 8 3 3 6 3 3 4 8 4 4 4 4 , , 2 1 2 6 5 5 2 1 , , 0 9 0 9 9 6 2 2 , , 5 3 0 5 9 9 2 2, , 3 3 7 5 1 9 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 Nov... 42,945 1,317 12,824 3,655 25,149 8,493 2,566 2,129 437 71 604 5,252 2,320 3,340 2,833 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 • JANUARY 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date 1969 —J J M a u a n n r . e . 1 9 7 7 . . . 8 7 m V 4 1972—Jan. 2 1 4 3 7 . . . 4 4 5 3 5 -5 4 / 8 - i - 5 / 4 8-5 - 3 5 1 4 i 4 - 4 5 - . - 1972—Sept. 5 4 . . 5 5 5 1 1 1 /6 / / 2 2 -5 - " -5 V 5/ i 8 " 1973—June 2 1 5 8 9 , , , 7 7 7 1 3 1 / / /2 2 4 - - --73/4 31. 4i/ -434«_5 25! 5l/2._55/8_ 1971 — —J D M N S F M A a e e e p o a a n p b c r v r r . t . . . . . . . 2 2 2 2 1 2 1 1 1 1 1 2 8 3 2 5 6 1 3 6 9 1 5 . . . . . . . . . . . . 6 m 7 6 6 6 5 5 m 5 V V V V V V 4 4 £ a 4 4 - 5K A M M Fe p a a b r y r . . . 2 2 2 3 1 1 3 7 3 8 5 0 1 3 7 . . . . . . . . . 4 4 4 4 4 55 5 5 J V - - 3 3 3 - - A - 4/ 4 - 4 4 5 8 2 5 - m 3 4 - 1 - - 4 3 4 ^ - I / A 1 / 5 7 4 8 - a - /2 / 5 8 1 - - 4 5 1973— D N J O a e o c n c t v . . . . 2 2 2 1 1 6 0 4 6 7 2 4 1 6 . . . . . . . . . 5 5 5 5 5 5 5 5 3 3 1 3 3 3 i 3 / / 4 5 4 4 4 i 4 4 2 " - 3 - - - . - - - 4 5 > 6 5 5 - 3 5 7 - 3 - / % 6 / 4 4 S - J A u u ly g . 2 2 3 22 1 1 1 9 8 3 3 6 1 2 0 7 7 3 8 2 . . . . . . . . . . . . 7 8 9 7 8 8 9 8 8 8 9 9 9 . 1 1 3 1 1 1 3 - 1 - 1 3 / 8 / 9 / / / / / 4 4 2 2 4 2 4 4 4 2 1 . 1 - - _ - - - - - - - - 8 8 4 8 9 - 9 4 8 9 8 1 3 - . . 1 . / 3 1 2 4 / / 4 2 2 - . . J M u a ly y 11 6 . . 5 5 V ^ i -6 June 2 1 6 2 . . 55---551I4/8 " Feb. 2. 6--614 29 934- Oct. 20 7 . . 6 5 V4 July 1 3 0 . , 5 5 1 14 4 - " -5 -5 3/ % 8- 2 2 1 6 7 4 . . . 6 6 61 - - - /4 61 - 4 Sept. 2 1 1 7 4 8 , 91 304. . -10 Nov. 1. 5V4»-5% 5% 934_10. 4 8 . . 5 5 5 V V3 2 i / • m 8 - - 5 5% i/ " 3 1 1 7 , 5 5 1 1 5 4 4 1 - - - / - 5 2 5 1 3 / / 2 8 - Mar. 2 1 6 9 . . 6 6 1 1/ 4 2 - - -6% Oct. 2 2 4 2 9 9 1 I/ / 2 2 -9 -9 3 3 4 4 . - - 1 1 0 0 . Dec. 2 2 2 6 9 , , 51/4-53/8 2 - Aug. 2 1 1 1 1 4 5 5 5 1 1 1 / / 4 4 4- - -- - 5 53 3 / / 8 8 Apr. 1 18 9 , . 6 6 1 3 / 4 2- - 634 . 25 514--53/8- May 4, 634.-7 27 5V4-5V2* 51/2 7, 7- 31 5Ya* 29 51/4-53/8- 24, 7--714 51/2" 25, 7-71/4- NOTE.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two tier or "dual prime rate keyed to money market variables. . denotes the predominate prime rate," this table shows only the "large-business prime rate." which is the rate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1--9 10-99 100-499 500-999 1,000 and over Center 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

JANUARY 1974 • INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 PPrriimmee FFFiiinnnaaannnccceee ccoommmmeerrcciiaall CCCOOO... PPPrrriiimmmeee FFFeeeddd--ppaappeerr11 pppaaapppeeerrr bbbaaannnkkkeeerrrsss''' eeerrraaalll 3-month bills 5 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 111 Rate Market Rate Market 1-year iissssuueess 77 days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other 6 issue issue ket yield) 5 1967 55555.....1111100000 44444.....8888899999 44444.....7777755555 44444.....2222222222 44444.....333332222211111 44444.....2222299999 44444.....666663333300000 44444.....6666611111 44444.....7777711111 44444.....8888844444 55555.....0000077777 1968 55555.....9999900000 55555.....6666699999 55555.....7777755555 55555.....6666666666 55555.....333333333399999 55555.....3333344444 55555.....444447777700000 55555.....4444477777 55555.....4444466666 55555.....6666622222 55555.....5555599999 1969 77777.....8888833333 77777.....1111166666 77777.....6666611111 88888.....2222222222 66666.....666667777777777 66666.....6666677777 66666.....888885555533333 66666.....8888866666 66666.....7777799999 77777.....0000066666 66666.....8888855555 1970 77777.....7777722222 77777.....2222233333 77777.....3333311111 77777.....1111177777 66666.....444445555588888 66666.....3333399999 66666.....555556666622222 66666.....5555511111 66666.....4444499999 66666.....9999900000 77777.....3333377777 1971 55555.....1111111111 44444.....9999911111 44444.....8888855555 44444.....6666666666 44444.....333334444488888 44444.....3333333333 44444.....555551111111111 44444.....5555522222 44444.....6666677777 44444.....7777755555 55555.....7777777777 1972 r4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1972—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 Dec.. 9.28 9.08 8.16 8.94 9.95 7.364 7.45 7.444 7.56 7.01 7.38 6.80 Week ending— 11997733——SSeepptt.. 1 10.48 10.45 9.00 10.25 10.79 8.668 8.62 8.577 8.58 8.22 8.53 7.35 8 10.50 10.38 9.09 10.25 10.79 8.778 8.80 8.735 8.75 8.19 8.51 7.27 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 r6.88 Dec. ! 9.25 9.10 8.05 8.75 10.09 7.695 7.52 7.679 7.77 7.29 7.36 r6.78 8, . . 9.43 9.20 8.25 9.10 10.17 7.358 7.47 7.766 7.94 7.39 7.53 6.89 15 9.35 9.10 8.18 9.15 10.04 7.386 7.51 7.530 7.52 7.01 7.37 6.75 22 9.15 9.00 8.20 8.75 10.18 7.366 7.35 7.164 7.32 6.75 7.22 6.74 29 9.19 9.00 8.00 8.75 9.52 7.346 7.50 7.315 7.46 6.84 7.41 6.83 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 • JANUARY 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i States ( tt l ee o rr n mm g )) - Total 1 Aaa Baa New ce R n e t - ly Aaa Baa In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Pre- Com- Comissue offered ferred mon mon Seasoned issues 1963 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 1969 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 1970 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 '6.46 1971 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 '5.41 1972 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1972—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 '5.44 1973—Jan 5.94 5.13 4.90 5.39 7.38 7.37 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 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 '6.10 Apr 6.11 5.17 4.95 5.42 7.46 7.47 7.62 7.26 8.09 7.43 7.98 7.64 7.11 2.90 May 6.22 5.13 4.90 5.41 7.51 7.50 7.62 7.29 8.06 7.41 8.01 7.63 7.13 3.01 June 6.32 5.25 5.05 5.51 7.64 7.64 7.69 7.37 8.13 7.49 8.07 7.69 7.25 3.06 '6.93 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 ''7.06 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 Dec 6.35 5.14 4.90 5.43 8.00 8.03 8.05 7.68 8.48 7.84 8.28 8.17 7.76 3.70 Week ending— 1973—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 8.. 6.31 5.20 5.00 5.45 8.06 7.98 8.02 7.65 8.43 7.81 8.25 8.13 7.61 3.77 15.. 6.30 5.13 4.90 5.45 7.97 7.98 8.04 7.67 8.48 7.83 8.26 8.17 7.70 3.72 22.. 6.34 5. 11 4.85 5.40 7.98 8.05 8.06 7.68 8.50 7.85 8.31 8.18 7.82 3.67 29.. 6.47 5.11 4.85 5.40 8.10 8.08 7.73 8.52 7.87 8.31 8.21 7.90 3.64 i Number of issues 2 1122 2200 5 5 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- only, based on Thurs. figures; from Moody's Investor Service. (3) 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: 1 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 5l/i hours per day, or 27l/i 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- 22i/2; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 - te Total In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u al s - T p t o r i a r o n t n a s - - Utility na F n i- ce in to d t e a x l 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—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 Dec 62.37 86.1 62.9 94.78 106.16 41.48 45.73 50.39 55.12 34.69 33.47 62.49 88.39 19,227 3,553 Week ending— 1973—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 93.46 18,764 3,281 8 62.74 85.6 63.1 94.12 105.60 39.85 44.64 50.10 55.05 33.66 32.60 61.76 90.63 20,525 3,456 15 62.75 86.7 62.9 94.65 106.01 40.46 45.88 50.38 55.17 34.12 33.32 62.45 89.32 19,003 3,250 22 62.46 86.3 62.8 94.08 105.31 41. 14 45.78 49.96 54.51 34.28 33.69 62.05 85.78 17,849 3,225 29 61.35 85.9 62.8 95.98 107.36 44.14 46.58 50.94 55.53 36.51 34.23 63.53 87.19 18,548 3,715 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t n c e r t - t ) c F c h ( e e a p e n r e s t g r ) & e i s M (y a e t a u r r s i ) t y L c p r ( o e a p r n a t i e c i r n 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 L m 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 e n 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 ( e o a p r n a t e ic i r n 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 1965 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967. 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970, 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971 . 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1972. 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1972--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.r 8.22 1.08 26.0 75.5 38.9 28.8 8.42 .94 22.2 71.2 32.3 22.6 Dec 8.28 1.13 26.4 75.7 38.9 29.0 8.45 .92 22.3 72.9 30.8 22.1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT • JANUARY 1974 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregulated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin accts. 1972—Oct.. 9,024 8,081 943 7,800 872 250 53 31 18 1,875 389 Nov. 9,068 8,166 902 7,890 831 249 52 27 19 1,871 390 Dec. 9,045 8,180 865 7,900 798 254 50 26 17 1,896 414 1973—Jan.. 8,840 7,975 865 7,700 796 249 48 26 21 1,940 413 Feb.. 8,640 7,773 867 7,480 800 248 50 25 17 1,954 431 Mar. 8,347 7,468 879 7,197 813 244 48 24 18 1,917 442 Apr., 8,165 7,293 872 7,040 804 232 49 21 19 1,969 389 May 7,650 6,784 866 6,540 802 224 47 20 18 2,010 413 June1 7,301 6,416 885 6,180 817 215 53 21 15 1,973 396 July 7,347 6,243 1,104 6,010 1,020 216 67 17 17 2,072 379 Aug. 7,129 6,056 1,073 5,830 993 210 63 16 16 2,065 348 Sept. 6,981 5,949 1,052 5.730 973 204 63 15 16 2,027 379 Oct.. 7,142 5,912 1,230 5,690 1,150 203 62 19 18 1,998 419 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 Free credit balances are in accounts with no unfulfilled commitments 1971. to the brokers and are subject to withdrawal by customers on demand. 2 In addition to assigning a current loan value to margin stock generally, EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) TToottaall Equity class (per cent) Equity class of accounts ddeebbtt Net in debi t status Total EE ppee nn rr dd ii oo oo dd ff ll (( dd ii mm oo oo oo ff nn ii ll ll -- ss -- 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t r a e t d u i s t 60 o r p e m r o c r e e n t 6 L 0 e p ss e r t h c a e n n t of ( b m d a o i l l a l l l n i a o c r n e s s ) llaarrss))!! 1972—Oct 33.3 53.4 13.3 5,950 1972—Oct... 7,800 5.5 8.1 13.6 30.8 25.0 17.0 33.6 54.5 11.8 6,140 Nov.. 7,890 6.0 9.4 16.6 35.1 20.5 12.4 34.4 52.9 12.7 6,100 Dec.. 7,900 6.5 8.6 17.6 31.9 20.3 15.0 1973—Jan 35.1 51.7 13.1 5,850 1973—Jan.. 7,700 5.8 8.2 16.8 27.8 21.2 20.0 Feb 35.8 49.8 14.4 5,770 Feb.. 7,500 5.3 7.8 14.7 23.9 22.5 25.6 36.3 47.9 15.7 5,790 Mar.. 7,200 5.7 7.5 15.9 23.1 22.7 25.1 35.3 46.9 18.0 5,660 Apr.. 7,040 4.8 7.3 13.4 19.8 22.4 32.4 35.8 45.0 19.1 5,670 May. 6,540 4.9 7.2 12.7 18.7 21.9 34.9 35.8 43.5 20.7 5,750 June. 6,180 4.9 7.1 13.2 17.5 22.1 35.3 July 35.9 46.7 17.4 5,740 July.. 6,010 5.8 8.8 17.7 22.7 25.3 19.7 35.9 45.6 18.5 5,650 Aug.. 5,830 5.0 8.4 16.4 19.6 24.2 26.4 Sept 37.4 53.1 9.4 5,740 Sept.r 5,730 5.0 13.9 18.9 23.9 23.5 16.8 38.5 46.7 14.8 5,860 Oct. . 5,690 7.2 10.0 19.9 22.6 22.1 18.2 NOTE.—Special miscellaneous accounts contain credit balances that 1 See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities TTToootttaaalll MMoorrttggaaggee llooaann aaasssssseeetttsss——— ccoommmmiittmmeennttss33 EEEnnnddd ooofff pppeeerrriiioooddd MM ggaa oo gg rr ee tt -- OOtthheerr GG UU oo .. vv SS tt .. .. SS gg ll aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. C o C ott rr aa oo hh aa nn rr ee tt dd pp ee rr oo 11 -- CCCaaassshhh OOO aaasss ttt sss hhh eee eee ttt rrr sss lll ggg rrr iii TTT eee eee aaa aaa ttt sss nnn ooo bbb iii nnn eee eee eee ttt iii rrr ddd aaa sss lll rrr 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 iii rrr --- 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 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 c> 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—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 Oct 777222,,,333666777 444,,,111888111 333,,,000000777 999333999 222111,,,222777666 111,,,555000111 222,,,222888555 111000555,,,555555777 999444,,,999444444 333,,,111333999 777,,,444777444 1,318 771 510 1,096 333,,,666999555 Nov.... 777222,,,777666000 444,,,444222444 222,,,999444888 999222555 222111,,,111555000 111,,,555111999 222,,,222666444 111000555,,,999999111 999555,,,222555999 333,,,222000111 777,,,555333000 1,272 685 479 1,079 333,,,555111555 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross-oforganizations and nonguaranteed issues of U.S. Govt, agencies. valuation-reserves basis. The data differ somewhat from balance sheet 2 Beginning with data for June 30, 1966, about $1.1 billion in "Deposits data previously reported by National Assn. of Mutual Savings Banks accumulated for payment of personal loans" were excluded from "Time which were net of valuation reserves. For most items, however, the difdeposits" and deducted from "Loans" at all commercial banks. These ferences are relatively small. changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30. NOTE.—NAMSB data; figures are estimates for all savings banks in 3 Commitments outstanding of banks in New York State as reported to the United States and differ somewhat from those shown elsewhere in the Savings Banks Assn. of the State of New York. Data include building the BULLETIN; the latter are for call dates and are based on reports filed loans beginning with Aug. 1967. with U.S. Govt, and State bank supervisory agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort- Real Policy End of period assets Total U S n ta it te e s d Sta lo te c a a l n d Foreign Total Bonds Stocks gages estate loans 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 1 1 9 9 7 7 0 1 2 2 0 2 7 2 , ,1 2 0 54 2 1 1 1 1 , ,0 0 6 0 8 0 4 4, , 4 5 5 7 5 4 3 3, , 3 3 6 0 3 6 3 3, , 1 1 8 8 2 8 8 9 8 9 , , 5 8 1 0 8 5 7 7 9 3, , 0 1 9 9 8 8 2 1 0 5 , , 6 4 0 2 7 0 7 7 5 4 , ,3 4 7 9 5 6 6 6 , , 3 9 2 0 0 4 1 1 7 6 . . 0 0 6 6 5 4 197 2 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 1972—Sept.r. 234,633 11.401 4,625 3.362 414 110,338 85,634 24,704 75,588 7,242 17,771 Oct.r. , 236,229 11,473 4,694 3.363 416 111,665 86,593 25,072 75,692 7,220 17,855 Nov.r. 238,338 11,619 4,832 3,379 408 113.180 87.139 26,041 75,904 7,261 17,927 Dec.r. 239,730 11,372 4,562 3,367 443 12,985 86.140 26,845 76,948 7,295 18,003 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 3,437 115,972 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 '15,897 90,314 25,583 77,400 7,545 18,533 June.. 244,531 11,359 4,468 3,373 3,518 116,153 90,484 25,669 77,914 7,548 18,673 July... 247,082 11,427 4,480 3,427 3.520 '18,061 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 Sept... 250,203 11,404 4,424 3,439 3,541 19,200 91,480 27,720 79,040 7,677 19,511 Oct... 251.590 11.402 4,423 3,438 3,541 119,714 91,707 28,007 79,516 7,765 19,768 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book NOTE.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. "Other assets." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 SAVINGS INSTITUTIONS • JANUARY 1974 SAVINGS AND LOAN ASSOCIATIONS fin millions of dollars) Assets 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 t t h 3 m r B o o w n o e r e y - d 4 p L r o o i a n ce n s s s Other ou a p t t s e e t r a n i n d o d d o i 5 n f g 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 3,042 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 203,266 24,750 12,689 240,705 203,889 15,992 8,503 6,067 6,254 12,274 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 11,578 6 208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 12,469 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 6,766 13,538 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 14,508 216,250 23,943 17,605 257,798 217,026 16,133 11,336 6,548 6,755 15.009 219,500 24,072 17,990 261,562 218,906 16,505 11,756 6,727 7,668 15,139 222,801 23,362 18,038 264,201 222,183 16,315 12,766 6,770 6,167 14,776 225,490 22,769 18,416 266,675 221,958 16,640 14,295 6,702 7,080 13,778 228,006 21,139 18,826 267,971 220,800 16,986 15,703 6,464 8,018 12,314 229,413 20,161 19,131 268,705 222,645 16,872 16,324 6,078 6,786 10,861 230,425 20,756 19,421 270,602 223,594 17,131 16,505 5,548 7,824 9,970 231,319 21,362 19,578 272,259 224,855 17,411 16,400 5,013 8,580 9,761 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 v m a b A n t 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 M po 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 s s n - c L a o ( t o o t i A p a o v ) n e e s r 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 - 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 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 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 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 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 7,245 2,850 107 6,971 1,380 1,741 19,619 19,041 2,313 1,905 6,048 5,872 8,972 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 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 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 8,420 1,938 108 7,220 1,291 1,943 20,571 19,985 2,896 2,188 6,414 6,076 9,591 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 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 11,145 2,516 108 10,215 1,453 2,008 21,413 20,364 2,725 2,316 6,958 6,645 10,li7 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 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 14,298 2,908 102 14,062 1,178 2,089 22,826 21,537 '2,811 2,560 '7,789 6,833 10,256 14,799 3,498 106 15,362 1,270 2,107 23,348 22,243 2,738 2,728 8,016 6,901 10,592 14,867 3,649 77 15,362 1,545 2,112 23,912 22,404 2,711 2,704 7,961 6,890 10,781 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

JANUARY 1974 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, NOVEMBER 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: 9 1 / / 2 2 1 6 / / 7 7 3 0 - • - 1 1 1 / / 2 2 5 5 / / 7 7 4 4 . . . .. . . 983.4/0 8 3 5 0 0 0 0 De 1 b 2 e / n 1 t 0 u / r 70 e s: - 12/10/73. . 5.75 500 6 7 / / 4 2 / / 7 7 3 3 - - 1 1 / 2 2 / / 3 7 / 4 7 . 3 . . . . 7 6 . . 5 8 5 5 6/26/70 -- 2/25/74. . . 8.40 250 8/10/71 - 12/10/73.... 7.15 500 8/1/73 - 2/4/74. .. 8.70 8/27/71 - - ;2 /25/74.... 7.10 300 12/1/71 - 3/11/74 5.45 400 10/1/73 - 3/4/74.. 9.90 8/27/73 - - '2 /25/74 9.75 700 4/10/70 - 3/11/74 7.75 350 10/1/73 -4/1/74. . 9.85 6/25/71 -- 5/25/74.... 6.35 300 8/5/70 - 6/10/74 7.90 400 11/1/73 - 5/1/74.. 7.95 2/26/73 -- 5/28/74.. .. 6.45 700 11/10/71 - 6/10/74 5.70 350 10/1/73 -4/4/77. . 7.70 8/25/69 -- !8 /25/74. . . 7.65 176 9/10/69 - 9/10/74. 7.85 250 8 8 / /2 2 7 5 / / 7 7 3 2 - - - - * F 8 8 / / 2 2 6 6 /7 / 4 7 4.... 9535//88 4 8 0 0 0 0 5 2 / / 1 1 0 0 / / 7 7 1 1 - - 9 1 /1 2/ 0 1 / 0 7 / 4 7 4 6 5 . . 1 65 0 2 3 5 0 0 0 Federal intermediate 11/25/69 - 11/25/74. 8.00 221 9/10/71 - 12/10/74.... 6.45 450 credit banks 5/25/73 -- 11/25/74. . . 7.05 ,000 11/10/70 - 3/10/75. . . 7.55 300 Debentures: 1 1 1 /2 / 6 2 / 7 7 / 1 7 2 - - - - 2 2 /2 /2 5 5 /7 /7 5 5 .. . . . . . 5 6. % 10 4 2 0 5 0 0 4 1 / 0 1 / 2 1 / 2 7 / 1 7 1 -6 - /10 3 / / 7 1 5 0 /75... 5 6 . . 2 3 5 5 5 6 0 0 0 0 4 3 / / 2 1 / / 7 7 3 3 - - 1 1 / 2 2 / / 3 7 / 4 7 . 3 . . 7 6 . . 0 1 0 5 9/21/73 -- 2/25/75 8.20 500 10/13/70 - 9/10/75. . . 7.50 350 7/1/71 - 1/2/74.. 6.85 4/12/73 - - I5 /25/75. . . . 7.15 700 3/12/73 - 9/10/75 6.80 650 5/1/73 -2/4/74.. 6.90 8/25/70 - , 5/26/75. . . 8.05 265 3/10/72 - 12/10/75.. . 5.70 500 6/4/73 - 3/4/74.. 7.00 7 7 1 / / 0 2 2 / 5 7 2 / / 5 7 7 / 3 0 7 3 • - I - - - 8 8 / 8 2 / / 2 2 5 5 5 / / 7 / 7 7 5 5 5 . . . . . . . . . . 77 7 7. . /9 1 85 5 4 5 3 0 0 0 0 0 0 9 6 3 / / / 1 1 1 1 0 2 / / / 7 7 7 1 3 3 - - - 3 3 1 / / 2 1 1 0 0 /1 / / 7 7 0 6 6 / 75.... 5 7 8 . . . 6 1 2 5 3 5 4 5 3 0 0 0 0 0 0 9 8 7 / / / 4 1 2 / / / 7 7 7 3 3 3 - - - 4 6 5 / / / 1 3 1 / / / 7 7 7 4 4 4 . . . . . . 98 71 3. / 64 2 5 12/18/70- 11/25/75.. 6.50 350 6/10/71 - 6/10/76 6.70 250 10/1/73 -7/1/74. 934 5 8 8 / / / 2 2 2 5 7 7/ / / 7 7 7 1 3 3 - - - - - • 1 ' 1 2 2 1 / / 2 / 2 5 2 5 / 5 7 / / 6 7 7 6 5 . .. . .. . 77 83 .H0 4 5 6 3 3 0 0 0 0 0 0 2 6 1 / / 1 1 1 /1 0 2 0 / / 7 7 / 2 2 7 1 - - 9 - 6 / 9 / 1 1 / 0 0 1 / / 0 7 7 6 6 / 76.... 5 6 5 . . . 8 1 8 5 3 5 4 5 3 5 0 0 0 0 0 1 5 1 / / 1 4 1 / / 1 / 7 7 / 1 2 7 3 - - - 1 7 8 / / 2 / 1 1 / / / 7 7 7 5 4 4 . . . . 5 7 6 . . . 9 9 0 5 5 5 6/22/73 - -F 5 /25/76 7,20 600 7/12/71 - 12/10/76.... 7.45 300 1/3/72 - 7/1/75. . 5.70 11/27/73 -- 5/25/76. . . 7.45 300 12/11/72- 12/10/76... 461.2/25 500 3/1/73 - 1/5/76. . 6.65 7/25/73 - -J8 /25/76... . 7.80 500 2/13/62 - 2/10/77 198 7/2/73 - 1/3/77. . 7.10 10/25/73 --2/25/77. . . 7.20 500 9/11/72 - 3/10/77 6.30 500 6/25/71 - 5/25/77... . 6.95 200 12/10/70 - 6/10/77. . . 6.38 250 Federal land banks 4 2 / / 1 2 2 6 / / 7 7 3 3 - - -F 1 8 1 / 1 2 / 5 2 / 5 7 / 7 7 . 7 .. . .. . 76. 3145 3 3 0 0 0 0 9 5 / / 1 1 0 0 / / 7 7 1 1 - - 9 6/ / 1 1 0 2 / / 7 7 7 7 6 6. . 8 50 8 3 1 0 5 0 0 Bo 2 n / d 20 s: / 63 - 2/20/73-78. 9 1 / 1 2 / 1 2 / 7 7 / 3 7 3 ! - - - I - 5/ 1 2 1 5 / / 2 7 5 8 / 77. . 7 7 . . 4 6 5 0 3 5 0 0 0 0 7 9 / / 1 1 0 0 / / 7 7 3 3 - - 9 1 /1 2/ 2 1 / 2 7 / 7 7 7. ... 7 7 . . 2 8 5 5 5 4 0 0 0 0 7 2 / / 2 2 0 0 / / 7 6 2 2 - - 1 2 / / 2 2 1 0 / / 7 7 4 4 451./525 3/25/70 - 2/25/80. . . 7.75 350 10/1/73 - 12/12/77.... 7.55 500 10/20/70 - 4/22/74. . . 7.30 10/15/70- 10/15/80.. 7.80 200 6/12/73 - 6/12/78 7.15 600 9/15/72-4/22/74 5.85 10/27/71 - 11/27/81. 6.60 200 10/12/71 - 12/11/78. . 6.75 300 10/21/71 - 7/27/74.. .. 5.85' 4 1 / 0 1 / 2 2 / 5 7 / 3 7 3 - - • 5/ 1 2 1 5 /2 /8 6 3 / . 9 3 . . . . . 773.3/08 2 4 0 00 0 6 9 / / 1 10 2 / / 7 7 3 2 - - 6 9 / / 1 1 1 0 / / 7 7 9 9 7 6 . . 8 4 5 0 3 3 0 0 0 0 4 2 / / 2 2 0 0 / / 7 7 1 0 - - 1 1 0 / / 2 2 0 1 / / 7 7 5 4 . . 58.M30 Fe B de o M r 2 7 5 5 5 1 n a / / / / / 1 d 1 1 1 2 1 l o / 5 s 0 9 1 1 1 r H : / / / / t / 9 7 7 7 7 7 g o / 1 2 3 2 2 7 a m 0 g - - - - - e e - 8 8 8 2 5 L C / / / / / 1 2 2 o 2 2 2 o 5 6 a 6 5 1 6 r n / / / / / / p 7 7 7 9 9 2 o 6 4 7 6 7 7 r / a 9 ti 5 o . n . .. 6 7 8 7 7 5 . . . . . . 1 0 7 1 3 6 5 5 5 5 0 0 4 2 3 1 1 1 0 0 5 4 5 5 0 0 0 0 0 0 4 2 6 2 2 3 1 1 1 1 / / / / / / 2 / 2 0 1 1 1 2 1 1 1 / / / 8 6 2 6 1 9 0 6 1 1 / 0 / / / / / / / 1 7 7 7 7 7 7 7 7 / / 3 3 3 3 3 2 2 3 7 7 1 2 - - - - - - - - 4 - - 9 3 7 7 3 1 / 1 1 / / / / / / 1 2 1 1 0 1 3 3 1 0 9 0 2 0 0 1 1 / 2 / 3 / / / / / / / / 8 8 8 8 8 8 8 1 1 0 1 1 1 0 0 0 0 0 0 / 8 / /7 8 0 9 0 . . . . . . . . . 4 6 6 7 6 6 6 5 3 7 . . . . . . . . . . 5 1 9 8 1 5 6 0 1 5 5 5 6 8 9 5 9 0 8 0 4 2 3 3 3 1 0 5 5 2 0 5 5 0 0 0 0 6 0 6 9 5 4 4 7 2 7 4 2 7 1 1 / / / / / / / / 0 / 2 2 2 2 2 1 2 2 2 / 0 3 0 0 1 5 0 0 2 2 / / / / / / / 3 / / 7 7 7 6 6 6 7 7 7 / 1 3 3 5 6 6 2 3 2 7 3 - - - - - - - - - 4 4 - 7 1 / / 1 1 4 7 2 2 / 2 / 1 / / 0 2 / 2 2 / 1 0 0 2 2 1 2 / 0 0 / / / 1 0 2 / 4 / 2 / 7 7 7 / / 7 0 7 / 0 5 6 7 7 5 6 7 5 / / 6 5 . 7 7 6 . . 5 5 . . . . . . . . . . 47 7 7 7 6 5 6 5 5 . . . ^ . . . H % % 1 6 2 7 4 0 8 5 5 0 0 0 0 Feder A a s l s o N c a ia ti t o i n on al — M ortgage 3 3 / / 2 1 1 2 / / 7 7 3 3 - - 5 5 / / 1 1 / / 8 8 1 1 4 5 . . 5 7 0 7 1 2 8 4 7 / / 2 2 3 0 / / 7 7 3 3 - - 7 1 / 0 2 / 0 2 / 0 7 / 7 7 6.. .. 771.1/52 Secondary market 1/21/71 - 6/10/81.... 7.25 250 10/27/71 - 10/20/77.. 65.K35 operations 9/10/71 -9/10/81 7.25 250 5/2/66 - 4/20/78 Discount notes 1,855 6/28/72 - 5/1/82 5.84 58 7/20/72 - 7/20/78 6.40 Ca 4 p / i 1 ta /7 l 0 d - e b 4 en /1 t / u 7 r 5 e s: 8.00 200 9 2 / /1 1 0 1 / / 7 7 1 2 - - 9 6/ / J 1 0 0 / /8 8 2 2 6 6 . .8 65 0 2 20 50 0 2 1 / 0 2 / 0 2 / 3 6 / 7 7 3 - - 1/ 1 2 0 2 / / 1 7 9 9 / 78. .. 7 5 . . 3 0 5 0 Mo 9 6 6 6 3 3 1 / r / / / / / 0 3 2 2 1 1 1 t / g 0 1 1 4 / 4 2 7 / a / / / / / 7 0 7 7 7 7 7 g 1 3 3 3 3 2 e - - - - - - - - b a 6 7 7 1 1 1 1 c / / 0 / 0 / / 2 k 1 1 1 1 / / / e 1 / 1 / 5 5 7 8 8 d / / / / 5 2 2 8 9 8 9 1 6 1 7 b onds: 4 7 8 3 5 5 5 . . . . . . . 3 3 4 5 4 8 9 8 8 0 8 8 5 2 2 2 2 4 5 5 5 7 3 8 0 0 3 2 5 6 6 6 4 3 3 1 1 1 / / / / / 2 1 2 1 1 1 1 1 / / / 1 2 2 1 2 1 0 1 / / 0 / 0 / / 7 1 7 7 7 7 / / 1 1 3 7 2 2 7 / 1 9 1 - - - - 7 - 6 - - - 6 6 6 / 3 9 / / / 1 1 1 1 1 / 1 / 2 1 1 0 0 0 1 2 / / 0 / / / 1 / 2 8 8 8 9 / 1 0 4 3 3 9 / 2 0 / 2 8 9 / 3 8 7. 4 . . . . . . . . 6 6 7 7 6 6 7 7 . . . . . . . . 7 7 2 0 0 3 9 1 5 5 5 5 0 0 0 0 2 2 2 3 2 2 2 2 5 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 2 4 4 7 1 1 1 / / / / / / 0 0 2 1 2 2 2 2 / / 3 5 3 0 2 2 2 0 / / / / / 3 3 / 7 7 7 7 7 / / 7 1 3 3 2 3 7 7 2 3 2 - - - - - - 4 4 - - 4 7 1 / / / 1 2 2 / / 2 1 1 0 2 2 3 0 0 0 0 1 / 1 / / / 2 / / / / 2 8 7 8 8 2 8 0 1 9 0 2 0 0 3 / / 8 / 8 7 2 3 9 . . . . . . . . , . 6 6 67 6 6 7 7 1 . . . . . . . 8 8 7/ 7 3 9 3 5 20 0 0 0 0 0 3/1/73-8/31/84 5.50 10 3/1/73 - 10/31/85 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 • JANUARY 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public - Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest- of Net lend- out- or Public Plus: ments by Govt, Equals: Trea- financ- Budget ex- ing lays i deficit debt Agency accounts Less: Total sury ing, receipts pendi- (-) securi- securi- Special borrow- operat- Other net4 tures ties ties notes 3 ing ing Special Other balance issues Fiscal year: 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 197 3 r232,225 r246,526 14,301 30,881 216 12,029 -207 19,275 2,459 -1,613 "-4,128 Half year: 1971—July-Dec.... 93,180 110,608 948 111,554 -18,374 26,001 -1,117 2,803 523 21,561 973 80 -2,122 1972—Jan.-June... 115,549 120,319 -4,850 3,130 -150 4,010 1,089 -2,114 389 1,028 8,377 1973— J J u a l n y . - - D J e u c n e... r 1 12 0 6 6 , ,0 16 6 4 1 1 1 1 2 8 7 , , 5 9 8 4 6 0 - - 1 1 2 , , 7 5 7 2 6 5 2 8 2, , 0 8 3 4 7 4 -6 8 6 7 0 6 '" 5 6 , , 7 2 9 3 0 9 -8 6 6 5 1 4 17 1 , 3 , 8 r 6 ~ 1, r 5 9 0 5 3 6 1,525 - 1 5 , , 3 4 0 3 2 0 Month: 1972—No v '•16,746 r21,234 r4,488 4,300 r374 -659 42 r5,292 305 r28 '•-420 Dec 18,972 19,721 -750 5,051 -93 1,104 -343 4,197 2,795 57 -595 1973—Ja n 21,130 23,631 -2,501 770 18 -900 168 1,519 302 99 1,383 Feb 18,067 20,227 -2,160 4,770 -9 780 119 3,863 408 -212 -1,507 Mar 15,987 20,806 -4,820 3,768 27 584 206 3,005 1,152 -83 2,883 Apr 25,860 22,306 3,554 -1,543 -721 -56 -49 -2,159 1,220 1,164 988 May 16,584 20,157 -3,573 275 -43 1,968 234 -1,970 -5,924 -1,141 -1,522 June 28,504 20,892 7,612 803 68 3,414 -174 -2,369 4,344 414 -485 July 18,121 22,627 -4,486 862 9 1,258 325 -713 -5,398 -544 -743 Aug.. 21,291 22,139 -847 2,842 301 3,137 568 -563 -4,105 151 -2,544 O Se c p t t 2 1 5 7 , , 0 6 0 3 7 7 2 2 0 3 , , 7 0 3 9 6 2 -5 4 , , 4 2 5 7 5 1 1 - , 4 0 0 3 6 7 4 2 0 9 - - 3 7 0 5 6 6 -1 -2 73 2 1,3 5 9 6 5 4 -2 5 , , 5 2 8 0 8 7 - 3 4 4 3 6 1,4 7 3 1 1 8 Nov 20,208 22,099 -1,891 1,561 273 -3,510 3,141 2,202 -1,010 -48 -1,368 Selected balances Treasury operating balance Federal securities End Memo: pe o ri f o d F.R. T an a d x Other Public Agency G In o v v e t s L , tm e a s c e s c n : o t u s n o t f s Less: E T q o u t a a l l s: s c p D o G o r e n o p b s v s t o t .— r . o - e f d Banks ac l c o o a u n n ts d ta e r p i o e s s i 5 - Total sec d u e r b it t i es securities Special Other S n p o e t c es ia 3 l p h u b e b y ld l i c pr N iv o a w t e6 issues Fiscal year: 197 0 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 197 2 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41.044 197 3 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 51,325 Calendar year: 197 1 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 39,860 197 2 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 42,640 Month: 1972—Nov.... 1,182 6,786 310 8.278 444,247 11,863 94,821 23,506 825 336,958 43,217 Dec 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 43,459 1973—Ja n 2,749 8,317 310 11,376 450,068 11,787 95.024 23,332 825 342,674 43,993 Feb 2,073 9,401 310 11,784 454,838 11,779 95,804 23,451 825 346,537 45,400 Mar.... 2,882 9,744 309 12,935 458,606 11,806 96,413 23,632 825 349,542 45,566 Apr 4,162 9,683 311 14,156 457,063 11,084 96,356 23,583 825 347,383 47,905 May.... 3,242 4,679 311 8,232 457,338 11,041 98,324 23,817 825 345,414 49,731 June.... 4,038 8,433 106 12,576 458,142 il,109 101,738 24,093 825 343,045 51,325 July.... 2,867 4,203 108 7,178 459,003 11,118 102,996 23,968 825 342.332 52,780 Aug.. .. 847 2,217 8 3,072 461,845 11,419 106,133 24,536 825 341,769 54,409 Sept 1,626 6,582 71 8.279 461,439 11.459 105,378 24,362 825 342.333 56,691 Oct 1,839 3,781 71 5,691 462,476 11,488 105,071 24,341 823 343,727 59,330 Nov.... 1,945 2,666 70 4,681 464,037 11,760 101,561 27,482 825 345,930 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

JANUARY 1974 • 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 o e 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 - s ts s fu R n e d - s c E o P n m t a a t y p r x - i l e b o s u y a m t S n i e o e d l n n f- s t 1 i e n U m s n u p - r l. . c O e n i t p h e t t e s r : t N ot e a t l E ta x x c e is s e t C o u m s s - E a g s n i t f d a t t e c M e r ip i e s - t c s . 3 roll empl. taxes Fiscal year: 197 0 193,743 77,416 26,236 13,240 90,412 35,037 2,208 37,190 1,942 3,465 2,700 45,298 15,705 2,430 3,644 3,424 197 1 188,392 76,490 24,262 14,522 86,230 30,320 3,535 39,751 1,948 3,673 3,206 48,578 16,614 2,591 3,735 3,858 197 2 208,649 83,200 25,679 14,143 94,737 34,926 2,760 44,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,225 98,093 27,019 21,866 103,246 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 1,51 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 1,77? 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 Mo 1 n 9 t 7 h 2 : — D N e o c v r1 1 6 8 , , 7 9 4 7 6 2 r8 7 , ,9 5 1 0 5 9 2 3 5 5 7 3 r8 8 , , 6 2 9 0 7 6 5,7 8 7 5 2 3 2 1 9 4 4 0 4 2, ,0 60 44 1 6 9 3 2 7 2 2 7 8 7 7 2 4 , , 9 9 7 6 5 9 1 1 , , 2 4 8 52 6 2 2 3 8 4 4 4 3 8 6 7 4 r2 2 9 7 8 6 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 ,104 8,067 865 193 5,900 167 684 278 7,029 1 ,186 255 568 289 Mar 15,987 8,748 1,494 ,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 ,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 ,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June 2§,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,( 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 Nov 20,209 9,81' 261 66 10,006 939 287 5,578 825 321 6,724 1,563 301 462 501 Budget outlays Com. Gen- Na- Nat- Com- mun. Educa- eral Intra- Period tional Intl. Space Agri- ural merce deve- tion Health Vet- Inter- Gen- reve- govt. Total de- affairs re- cul- re- and lop, and and erans est eral nue transfense search ture sources transp. and man- wel- govt. shar- achous- power fare ing tions 4 ing Fiscal year: 197 1 211,425 77,661 3,095 3,381 5,096 2,716 11,310 3,357 8,226 70,607 9,776 19,608 3,970 -7,376 197 2 231,876 78,336 3,786 3,422 7,061 3,759 11,197 4,216 10,198 81,536 10,747 20,584 4,889 -7,858 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 r2,034 1,645 1,062 1,807 r5,167 2,035 r5,843 r43,405 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 62,6H -4,039 1973—Jan.-June r 127,940 40,677 1,542 1,635 1,435 227 6,320 1,525 5,688 48,018 6,264 12,181 2,749 4,019 -4,339 Month: 1972—No v r21,234 '6,536 350 272 329 r354 r981 384 851 7,851 1,279 r\ ,926 r481 '352 Dec 19,721 6,135 221 284 -146 -40 829 414 960 7,710 989 1,809 415 62,617 -2,474 1973—Ja n 23,630 6,633 82 271 994 1,053 1,546 483 8,130 1,157 1,777 586 2,514 -297 Feb 20,227 6,265 280 241 431 230 567 368 904 7,907 1,046 2,002 374 9 -397 Mar 20,806 6,963 323 301 -77 310 1,072 270 786 7,565 1,064 2,097 462 -329 Apr 22,306 6,417 237 265 368 324 793 243 788 8,058 1,114 2,120 409 1,493 -324 May 20,157 6,401 136 255 -155 298 907 -148 1,066 8,124 1,017 2,165 466 3 -377 June r.... 20,814 8,015 486 301 -126 118 1,434 309 1,336 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 1,495 -850 Aug 22,139 6,772 327 262 440 573 1,090 779 954 7,935 1,054 2,159 466 -3 -670 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 Nov 22,099 6,900 276 246 782 424 912 36 805 8,373 1,194 2,401 438 29 -717 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 • JANUARY 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t t l a s i s l c i Total Total Bills Ma C r c e k a r e t t e t if s a i b - le Notes Bonds 2 b C v i o e b o n r l n e t d - - s Total N 3 o nm F is o s a r u r e e k i s e g t n 4 a ble b S o in a n g v d s - s i S s p su e e c s i a 5 l & notes 1941— Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 2.4 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 1.5 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Jan.. 450.1 353.2 271.1 104.9 121.5 44.7 2.3 79.7 20.5 58.4 95.0 Feb. 454.8 357.1 269.9 105.0 120.2 44.6 2.3 84.9 25.4 58.7 95.8 Mar. 458.6 360.4 269.8 105.0 120.2 44.6 2.3 88.3 28.3 59.0 96.4 Apr. 457.1 358.9 267.8 103.2 120.2 44.5 2.3 88.7 28.5 59.3 96.4 May 457.3 357.1 265.9 103.0 117.8 45.1 2.3 88.9 28.3 59.7 98.3 June 458.1 354.6 263.0 100.1 117.8 45.1 2.3 89.4 28.5 59.9 101.7 July. 459.0 354.2 262.7 99.9 117.8 45.0 2.3 89.2 28.2 60.2 103.0 Aug. 461.8 353.8 262.4 101.8 118.7 42.0 2.3 89.1 27.9 60.3 106.1 Sept. 461.4 354.1 262.4 99.8 120.7 41.9 2.3 89.5 28.2 60.3 105.4 Oct. 462.5 355.5 264.0 101.6 120.7 41.8 2.3 89.2 27.8 60.5 105.1 Nov. 464.0 360.5 270.2 107.7 124.6 37.8 2.3 88.0 26.1 60.8 101.6 Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 26.0 60.8 107.1 1 Includes non-interest-bearing debt (of which $618 million on Dec. 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 31, 1973, was not subject to statutory debt limitation). Treasury foreign series and foreign currency series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, 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; anr* paragraph in NOTE to table below. before Oct. 1965, Series A investment bonds. OWNERSHIP OF PUBLIC PEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a t i s l c ag G t U e a r o n n u . v S c d s t . i t , e s B F a . n R k . s Total m C b e a o r n m c k ia - s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m 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 t s e l . Savi I n n g d s i v idu O a t l h s 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 O i m o n r t v i h s s e c e s 2 . r funds bonds securities 1939—Dec 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1965—Dec 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 1969—Dec 368.2 89.0 57.2 222.0 56.8 2.9 7.1 11.7 25.9 51.8 29.6 11.2 25.0 1970—Dec 389.2 97.1 62.1 229.9 62.7 2.8 7.0 9.4 25.2 52.1 29.8 20.6 20.4 1971—Dec 424.1 106.0 70.2 247.9 65.3 2.7 6.6 12.4 25.0 54.4 19.6 46.9 15.0 1972—Dec 449.3 U6.9 69.9 262.5 67.0 2.6 6.0 11.7 28.3 57.7 17.0 55.3 17.0 1973—Jan 450.1 116.2 72.0 261.8 66.0 2.6 6.1 12.3 29.5 58.0 16.8 54.2 16.5 Feb 454.8 117.1 72.6 265.1 62.4 2.6 5.8 12.7 29.0 58.3 16.6 61.1 16.7 Mar 458.6 117.9 74.3 266.4 61.6 2.5 5.9 13.0 28.9 58.6 16.6 63.1 16.3 Apr 457.1 117.9 75.5 263.7 60.1 2.5 5.7 12.5 28.7 58.9 16.5 61.7 17.2 May 457.3 120.1 74.1 263.1 57.9 2.4 5.7 13.3 28.1 59.2 16.4 61.1 18.9 Jur}e 458.1 123.4 75.0 259.7 57.9 2.4 5.7 12.0 28.3 59.5 16.4 60.2 17.4 July 459.0 125.0 77.1 256.9 55.5 2.2 5.8 12.8 27.9 59.7 16.5 59.7 16.7 Aug 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 Sept 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 Oct 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 Nov 446644..00 112277..11 7777..11 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

JANUARY 1974 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date TToottaall 1-5 5-10 10-20 Over years years years 20 years Total Bills Other Ail 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—Oct. 31 264,047 130,940 101,577 29,363 80,535 31,102 15,269 6,201 Nov. 30 270,234 139,433 107,749 31,684 83,817 25,136 15,679 6,169 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—Oct. 31 20,840 1,878 466 1,412 7,005 5,448 4,888 1,620 Nov. 30 23,984 5,161 3,570 1,591 7,789 4,405 5,008 1,620 Federal Reserve Banks: 1970—Dec. 31 62,142 36,338 25,965 10,373 19,089 6,046 229 440 1971—Dec. 31 70,218 36,032 31,033 4,999 25,299 7,702 584 601 1972—Dec. 31 69,906 37,750 29,745 8,005 24,497 6,109 1,414 136 1973—Oct. 31 78,491 44,571 36,647 7,924 22,821 9,376 1,530 192 Nov. 30 77,129 44,709 35,471 9,239 23,109 7,543 1,584 184 Held by private investors: 1970—Dec. 31 168,479 84,080 61,250 22,830 57,154 12,631 6,579 8,036 1971—Dec. 31 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 1972—Dec. 31 180,243 91,063 73,451 17,612 57,649 17,547 9,570 4,413 1973—Oct. 31 164,716 84,491 64,464 20,027 50,709 16,278 8,851 4,389 Nov. 30 169,121 89,563 68,708 20,854 52,919 13,188 9,087 4,365 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—Oct. 31 42,782 14,130 5,518 8,612 22,943 4,640 805 265 Nov. 30 44,135 15,048 6,336 8,712 24,027 3,909 900 252 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—Oct. 31 2,021 493 194 299 805 289 292 142 Nov. 30 1,968 526 231 295 777 220 308 138 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—Oct. 31 4,878 689 223 466 1,075 1,278 1,309 527 Nov. 30 4,803 681 238 443 1,058 1,232 1,306 526 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—Oct. 31 4,911 3,480 1,594 1,886 1,228 105 68 29 Nov. 30 5,637 3,623 1,850 1,773 1,622 292 72 28 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—Oct. 31 2,315 552 116 436 963 513 211 77 Nov. 30 2,240 583 143 440 1,045 325 212 76 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—Oct. 31 9,779 5,723 4,563 1,160 1,774 896 1,036 350 Nov. 30 9,838 5,890 4,743 1,147 1,771 790 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—Oct. 31 98,030 59,424 52,256 7,168 21|921 8,557 5,130 2,999 Nov. 30 100,500 63,212 55,167 8,044 22,619 6,420 5,253 2,995 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 736 insurance companies combined, each about 90 per cent; Ownership. (2) 464 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) 5,610 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES • JANUARY 1974 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—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 3,384 2,798 374 163 48 568 954 1,073 789 810 Nov 4,024 3,002 485 447 89 655 1,188 1,174 1,007 810 Week ending— 1973—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 1,315 1,295 1,063 1,105 28 3,179 2,425 374 316 64 567 911 887 814 569 Dec. 5 4,007 3,305 353 278 69 631 1,094 1,230 1,050 989 12 4,528 3,724 388 378 39 776 1,502 1,215 1,036 852 19 4,321 3,528 374 327 94 772 1,108 1,252 1,191 1,223 26 3,029 2,460 285 240 44 527 686 911 906 716 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commerc ial banks UU..SS.. PPeerriioodd m t a A i t e l u l s r i- W y i e t 1 a h r i n y 1 ea -5 r s y 5 ea -1 r 0 s y O e 1 v a 0 e r r s 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—Nov 4,522 4,113 335 8 66 834 1972—Nov 4,198 1,538 617 709 1,334 Dec 4,973 4,903 73 -41 37 556 4,848 1,695 808 944 1,399 1973—Jan 4,744 4,959 -53 -259 97 281 4,520 1,346 794 932 1,449 Feb 3,394 3,365 -9 — 1 39 202 3,415 1,063 455 490 1,408 Mar 2,702 3,130 -274 -143 -11 180 Mar 2,799 903 292 281 1,323 Apr 2,795 3,105 -159 -143 -9 274 3,032 935 513 311 1,273 May 2,626 2,596 -324 179 175 356 May 2,667 674 452 252 1,291 June 2,976 2,818 -165 91 232 744 June 3,769 1,242 690 431 1,406 July 1,901 2,062 -250 -43 131 511 July - 2,826 725 544 510 1,047 Aug 1,788 1,977 -94 -107 12 273 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 Nov 3,618 3,034 95 350 139 1,185 Nov 4,469 1,809 900 570 1,190 Week ending— Week ending— 1973—Oct. 3 2,645 2,422 178 -23 67 848 1973—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 Nov. 7 4,300 3,295 327 521 157 1,163 Nov: 7... 4,919 2,213 1,067 559 1,081 14. , . 3,851 3,237 60 391 161 1,197 14... 4,841 1,951 862 624 1,403 21 3,211 2,836 -50 291 135 1,125 21... 4,149 1,554 864 489 1,242 28 , 3,022 2,583 76 246 117 1,188 28... 4,103 1,595 835 572 1,101 NOTE.—The figures include all securities sold by dealers under repur- i All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, DECEMBER 31 1973 f (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds J J a a n n . . 1 3 0 , , 1 1 9 9 7 7 4 4 . . 4 4 , . 3 3 0 0 4 2 J M u a n y e 3 4 0, , 1 1 9 9 7 7 4 4 1 1 . ,8 79 0 8 1 M M a a y y 1 1 5 5 , , 1 1 9 9 7 7 5 5 6 5 % 6 1 , , 7 77 6 6 0 F M e a b y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 4 4 1 V /4 & 2 2 , , 8 4 4 6 8 6 Jan. 15, 1974. 1,804 June 6, 1974 1,801 Aug. 15, 1975 5% 7,679 Nov. 15, 1974 37/s 1,214 Jan. 17, 1974. 4.303 June 13, 1974 1,801 Sept. 30, 1975 8 % 2,043 May 15, 1975-85. .4% 1,202 Jan. 24, 1974. 4,301 June 20, 1974 1.799 Oct. 1, 1975 V/2 30 June 15, 1978-83.. 3 V4 1,483 Jan. 31, 1974. 4,312 June 21, 1974-t 2,000 Nov. 15, 1975 7 3,115 Feb. 15, 1980 4 2,575 F F e e b b . . 1 7 2 , , 1 1 9 9 7 7 4 4 . . 4 1 , , 3 8 0 0 3 1 J J u u l n y e 2 2 7, , 1 1 9 9 7 7 4 4 1 1 , , 8 8 0 02 2 D Fe e b c . . 3 1 1 5 , , 1 1 9 9 7 7 5 6 6 7 V 4 3 1 , , 7 7 3 3 9 1 A N u o g v . . 1 1 5 5 , , 1 19 9 8 8 1 0 3 7 y2 1,8 8 9 0 7 7 Feb. 14, 1974. 4,309 July 30, 1974 1.804 Feb. 15, 1976 5% 4,945 Feb. 15, 1982 6H 2,702 F F e e b b . . 2 2 1 8 , , 1 1 9 9 7 7 4 4 . . 4 4. , 3 2 0 5 3 4 S A e u p g t . . 2 2 7 4 , , 1 1 9 9 7 7 4 4 1 1 . ,8 8 0 05 2 A M p a r y . 15 1 , , 1 1 9 9 7 7 6 6 5 1 % Vi 2,80 2 2 7 A M u a g y . 1 1 5 5 , , 1 19 9 8 8 5 4 3 6 % y8 2,3 9 5 5 3 4 Mar. 7, 1974. 4,320 Oct. 22, 1974 1,802 May 15, 1976 6% 2,697 Nov. 15, 1986 6i/s 1,216 Mar. 12, 1974. 1,790 Nov. 19, 1974 1,801 Aug. 15, 1976 7Vi 4,194 Aug. 15, 1987-92.. 414 3,695 Mar. 14, 1974. 4.304 Dec- 17, 1974 1,803 Aug. 15, 1976 6V2 3,883 Feb. 15, 1988-93.. 4 230 M M a a r r . . 2 2 1 8 , , 1 1 9 9 7 7 4 4 . . 4 4 . , 3 3 0 2 5 7 O No ct v . . 15 1 , , 1 1 9 9 7 7 6 6 6 V V J 4 i 4,32 1 5 1 M Fe a b y . 1 1 5 5 , , 1 19 9 9 8 0 9 -94. .4 3 V % 8 4 1 , , 0 4 1 7 8 0 A A A p p p r r r . . . 1 9 4 1 , , , 1 1 1 9 9 9 7 7 7 4 4 4 . . . 1 1 1 , , , 8 8 8 0 0 03 2 1 Tr A e F a e p s b r u . . r y 1 n 5 1 , , o t 1 1 es 9 9 7 7 4 4 7 V y A 4 2,96 3 0 4 F A A e p u b r g . . . 1 1 5 5 1 , , , 1 1 1 9 9 9 7 7 7 7 7 7 7 8 V 1 A /4 4 5 , , 9 1 1 6 8 3 5 A F F e e u b b g . . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 9 9 9 3 3 5 3 7 6 1 y /2 4 1,3 6 8 6 2 5 4 7 1 Apr. 18, 1974. 1,802 May 15, 1974 7 Va 4,334 Oct. 1, 1977 UA 17 May 15, 1993-98.. 7 692 Apr. 19, 1974. 3,009 Aug. 15, 1974 5 5/s 10,284 Feb. 15, 1978 6V4 8,389 Nov. 15, 1998 3Vi 3,132 Apr. 25, 1974. 1,802 Sept. 30, 1974 6 2,060 Apr. 1, 1978 11/2 15 May 2, 1974. 1,801 Oct. 1, 1974 1V2 42 Oct. 1, 1978 11/2 M Ma a y y 9 7 , , 1 1 9 9 7 7 4 4 . . 1 1, ,8 8 0 0 0 1 D N e o c v . . 3 1 1 5 , , 1 1 9 9 7 7 4 4 S 5% y4 2 5 , , 1 4 0 42 2 N Au o g v . . 1 1 5 5 , , 1 1 9 9 7 7 9 8 6 6 V 4 4 8 , , 5 2 5 0 9 7 Convertible bonds M M a a y y 2 1 3 6 , , 1 1 9 9 7 7 4 4 . . 1 1, ,8 8 0 00 1 F F e e b b . . 1 1 5 5 , , 1 1 9 9 7 7 5 5 5 5 V % 4 4 1 , , 0 2 1 2 5 2 N N o o v v . . 1 1 5 5 , , 1 1 9 9 7 7 9 9 7 65 /8 2 1 , , 2 6 4 0 4 4 I A n p v r e . s tm 1 e , n t 1 S 9 e 7 r 5 i - e 8 s 0 B .. 2% 2,273 Apr. 1, 1975 1 Vi May 15, 1980 6% 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 n t 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 - V a e a n t id e s r ' - O p p o t u h s r e e - s r gations auth. 196 4 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 196 5 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 197 1 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 1972—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 '1,806 369 215 418 117 '689 Feb... '1,500 768 731 47 561 '892 '1,399 365 '66 406 10 '551 Mar... 2,451 1,227 916 303 613 914 924 2,194 373 153 497 347 823 Apr.'. 1,817 866 '941 159 '730 '926 '1,751 '306 12 448 88 '897 Mayr. '1,920 '819 1,093 291 '931 '698 '1,756 299 232 '422 222 '580 Juner. 2,138 1,016 856 261 189 1,076 874 2,130 538 10? 639 334 517 July r. 2,003 1,455 542 516 349 1,138 1,982 392 231 360 3 996 Aug.'. 1,528 951 575 452 477 600 1,475 263 29 331 290 563 Sept... 1,675 698 682 '293 236 '794 645 '1,608 306 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 • JANUARY 1974 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . . 2 a G g U e o n . v S c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 a l Other 5 Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d l y Preferred Common 196 4 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 196 5 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 196 6 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 196 7 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 196 8 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 196 9 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 197 0 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 197 1 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972— D N e o c v . . . 1 8 0, ,2 98 1 7 0 2 3 , , 5 5 5 9 3 0 2,1 2 3 0 4 0 1 1 , ,8 7 1 60 6 3 7 0 0 2 3 3 , , 3 3 7 9 7 6 2 2 , , 6 3 2 4 5 3 1 1, , 3 0 6 2 1 4 1,6 9 0 82 1 2 1 7 5 2 4 4 8 9 8 8 0 1973—Jan.. 6,523 1,199 993 1,889 116 2,327 1,276 989 287 137 913 M Fe a b r . . . 9 7 , , 0 3 2 2 9 5 1,6 6 0 0 3 6 2 1 , ,8 2 2 61 6 2 1 , , 3 4 0 4 4 5 35 5 9 3 3 1 , , 9 9 3 6 3 2 2,1 9 1 5 6 7 1,3 6 1 4 5 1 8 3 0 1 2 6 8 1 3 7 3 2 9 8 8 3 4 2 Apr.. 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 558 May. 11,225 3,353 3,442 1,870 17 2,543 1,721 1,049 672 187 635 June. 7,943 559 1,706 2,046 53 3,578 2,757 1,358 1,398 216 606 July 7,643 490 2,471 1,992 48 2,631 1,870 857 1,013 226 536 Aug. 8,019 3,097 1,600 1,414 22 1,806 1,382 792 590 94 330 Sept. 8,091 2,432 2,100 1,630 15 1,915 1,366 684 682 119 430 Oct.. 8,901 485 2,612 2,232 195 3,377 2,314 1,807 507 355 707 Nov. 12,311 4,521 2,200 2,165 45 3,380 2,106 1,669 437 630 644 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r la c n ia e l o u a s n d Transportation Public utility Communication a R nd e a f l in e a st n a c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Bonds Stocks 196 4 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1 1 9 9 6 6 6 5 4 5 , , 7 8 1 6 2 1 1,2 7 0 04 8 1 1 , , 1 1 5 6 3 6 2 2 5 5 1 7 1,8 9 5 5 6 3 1 6 16 0 2 3 , , 3 11 3 7 2 6 5 0 4 4 9 1,8 8 1 0 4 8 1 1 3 8 9 9 3 1 , , 7 74 6 7 2 5 1 1 9 4 3 196 7 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 196 8 5,668 1,311 1,759 116 1,665 ,579 4,407 873 1,724 43 2,159 662 196 9 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 197 0 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 197 1 9,426 2,152 2,272 2,390 1,9 98 420 7,605 4,195 4,227 1,592 6,601 2,212 1972—Nov. 346 79 429 271 61 322 472 657 528 202 Dec. 486 103 343 149 214 491 370 34 17 1,057 107 1973—Jan.. 113 63 89 105 120 529 371 30 3 395 509 Feb.. 178 35 118 111 96 319 277 58 117 290 461 Mar. 772 125 177 327 317 1,076 1,351 548 668 1,462 1,397 Apr. 772 22 237 139 91 150 369 258 743 228 May, 387 12 30 143 236 361 410 355 19 351 231 J J u u n ly e 7 7 3 0 6 3 4 1 2 6 5 9 1 1 3 3 3 9 1 8 1 9 2 2 1 5 8 0 3 1 1,0 6 9 5 9 1 4 2 9 6 7 9 2 30 4 3 4 2 6 9 0 2 3 2 3 3 7 1 1 8 5 1 1 Aug. 230 49 149 129 83 15 419 90 320 5 182 136 Sept. 270 78 149 96 140 2 334 252 228 16 244 106 Oct.. 462 72 54 147 98 337 608 633 46 731 192 Nov. 343 68 51 91 226 584 489 296 499 605 123 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

JANUARY 1974 • 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—III 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 ILL 6,638 2,150 4,488 4,521 1,579 2,941 2,118 571 1,547 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—III 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 ILL 165 450 108 247 414 -44 1,217 557 752 77 284 260 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- NOTE.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) YYeeaarr MMoonntthh Sales 1 Redemp- Net Total 2 Cash Other Sales 1 Redemp- Net Total 2 Cash Other tions sales position 3 tions sales position 3 1960 22,,009977 842 1,255 1177,,002266 973 1166,,005533 1972—Nov... 387 645 -258 59,854 3,549 56,305 Dec... 449 619 -170 5599,,883311 33,,003355 5566,,779966 1961 2,951 1,160 1,791 22,789 980 21,809 1962 2,699 1,123 1,576 21,271 1,315 19,956 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 1963 22,,446600 1,504 952 2255,,221144 1,341 2233,,887733 Feb... 327 530 -203 54,083 3,375 50,708 Mar... 519 531 -12 53,377 3,774 49,603 1964 3,404 1,875 1,528 29,116 1,329 27,787 Apr... 300 452 -120 50,837 3,837 46,464 1965 4,359 1,962 2,395 35,220 1.803 33,417 May.. 285 446 -161 48,588 4,154 44,434 1966 44,,667711 22,,000055 22,,666655 3344,,882299 22,,997711 31,858 June.. 303 349 -46 48,127 4,164 43,963 July. . 364 357 -7 50,933 4,594 46,339 1967 4,670 2,745 1,927 44,701 2,566 42,135 Aug.. 239 432 -193 49,553 4,567 44,986 1968 6,820 3,841 2,979 52,677 3,187 49,490 Sept... 330 395 -65 52,322 4,641 47,681 1969 66,,771177 3,661 33,,005566 4488,,229911 3,846 4444,,444455 Oct.. . 305 559 -254 51,952 4,168 47,784 Nov... 502 542 -40 4455,,881144 44,,112266 41,688 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 • JANUARY 1974 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a f o x o f e r i s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r b n o u d f t i i t e s s - d co c a n a t l s l i p 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 r p i r n b o u d f t i 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 ances1 ances 1 1966 84.2 34.3 49.9 20.8 29.1 39.5 1971—III.... 87.0 38.0 49.0 25.2 23.7 61.0 1967 79.8 33.2 46.6 21.4 25.3 43.0 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 1972—1, ., 92.8 40.6 52.2 25.7 26.5 63.4 1969 84.9 40.1 44.8 24.3 20.5 51.9 II 94.8 41.4 53.4 25.9 27.5 66.2 1970 74.0 34.8 39.3 24.7 14.6 56.0 III.... 98.4 42.9 55.6 26.2 29.4 66.0 1971, 85.1 37.4 47.6 25.1 22.5 60.4 IV.... 106.1 45.9 60.3 26.4 3333..99 6688..00 1972 98.0 42.7 55.4 26.0 29.3 65.9 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 III.... 129.0 57.6 71.5 28.1 43.4 71.7 1 Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities 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 ov .S t . , i Other G U o . v S t . . 1 Other taxes 1968.... 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 1969 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—IV 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971— I 1 I . . . 1 19 9 6 2 . . 5 0 494.1 4 5 8 1 . . 5 1 77..87 4 3 . . 2 9 201.3 1 1 9 9 8 9 . . 5 2 3 3 3 3 . . 8 1 3 3 0 0 2 1 . . 1 7 6.1 1 19 9 5 5 . . 8 7 1 1 2 3. . 7 4 8 8 6 8 . . 6 3 III 200.9 498.2 52.4 7.8 3.9 203.3 201.6 34.9 306.3 5.3 197.4 13.8 90.1 IV 204.9 507.2 55.3 10.4 3.5 206.5 203.1 36.8 311.8 5.0 202.8 14.5 89.7 516.7 207.5 4.9 1972—1.. 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 202.5 15.7 93.3 II. 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 204.0 13.4 96.8 III 219.3 545.5 57.3 7.6 2.9 222.5 215.2 39.8 326.2 4.7 207.6 15.0 98.9 IV 224.3 561.1 60.3 9.7 3.4 228.9 218.2 40.7 336.8 4.0 216.9 16.7 99.2 1973—1.. 231.4 577.1 61.0 10.4 3.2 234.0 225.9 42.5 345.7 4.1 218.1 18.6 104.9 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 Ill 241.8 611.4 62.0 9.2 3.0 252.2 241.5 43.5 369.6 4.4 235.7 18.1 111.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts NOTE : Based on Securities and Exchange Commission estimates. offset against each other on corporations' books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Durable d N ur o a n b - le Mining R ro a a i d l- Air Other Electric and G a o s th er n C i o c m at m ion u s - Other i T A (S o .R A ta . . ) l 196 9 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 197 0 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 197 1 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 197 2 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 19732.... 100.08 19.39 18.61 2.76 1.94 2.41 1.60 16.25 2.84 13.03 21.24 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 III. 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV. 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—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 III. 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

JANUARY 1974 • REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions cf dollars) All properties Farm Nonfarm ho O l t d h e e r r s 2 • to 4-family houses4 com M m u er lt c i i f a a l m p i r ly o p a e n r d ti es 5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l - t F u i i n t c n i i s o a a t n l i n - s - 1 a U c g i . e e S n s . - v o I i t a d n h n u d e d a i r - l s s h A e o r l l s d l - t F u i t n i c n i i s o a a t n l i n - s - 1 O h e o t r h l s d e 3 - r h A e o r l l s d l - Total tu F 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 t F u i t n in i 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 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 196 5 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 196 6 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 196 7 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 196 8 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 196 9 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 197 0 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109.2 311.3 197 1 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 197 2 565.4 450.6 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 I ' I " . . . . 5 6 8 0 0 0 . . 1 4 4 48 6 0 3 . . 5 3 4 4 7 9 . . 3 0 7 6 1 9. . 5 0 3 3 6 7 . . 5 7 1 1 0 1 . . 7 0 2 2 5 6. . 7 8 5 56 4 2 3 . . 7 6 3 3 5 65 3 . . 7 9 2 3 9 0 6 6 . . 3 9 5 5 7 8. . 8 6 1 1 8 9 9 7 . . 7 0 1 1 6 5 2 6 . . 5 4 3 3 3 4. . 5 4 132.5 411.1 III? 619.8 494.9 53.0 71.9 38.7 11.4 27.3 581.2 376.6 315.0 61.6 204.5 168.5 36.0 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 Governmentunderwritten CCoonn-- E pe n r d i o o d f Total t F u i i n c t n i i s a o a 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 i s a o a t l i n n - s - h O ol t d h e e r r s EEnndd ooff ppeerriioodd 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 1964 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 8 9 7 5 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 5 6 2 3 1 0 3 6 5 3 . . . . . 8 7 6 2 0 5 4 4 4 3 4 0 3 7 6 . . . . . 3 0 8 4 9 4 4 5 4 3 0 2 3 7 7 . . . . . 3 2 9 3 2 4 3 2 3 3 1 4 1 7 9 . . . . . 3 5 7 7 0 1 9 9 8 8 0 . . . . . 2 7 8 2 8 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 9 8 6 5 7 2 2 2 2 2 6 3 5 1 2 6 6 1 2 3 . . . . . 1 8 2 9 6 9 7 7 8 7 6 0 9 3 4 . . . . . 1 1 2 9 4 5 5 4 4 4 4 0 4 2 7 . . . . . 5 8 6 0 4 3 3 3 3 3 1 1 3 5 2 . . . . . 1 5 3 8 7 1 1 1 1 1 7 5 6 4 3 6 6 6 9 7 . . . . . 1 6 8 8 6 1970 338.2 277.1 61.1 58.0 45.8 12.2 1970 280.2 97.3 59.9 37.3 182.9 1 1 9 97 7 1 2 4 3 2 7 2 4 . . 5 7 3 3 4 06 7 . . 1 9 7 6 4 8. . 5 6 7 6 6 6 . . 4 8 5 59 2 . . 1 0 1 1 7 4 . . 3 9 1 1 9 9 7 7 1 2 3 34 0 6 7 . . 1 8 1 11 0 3 5 . . 0 2 6 6 5 8 . . 7 2 4 3 4 9 . . 7 5 2 23 0 3 2 . . 1 6 1971—III 364.0 298.4 65.6 64.3 50.4 13.9 1971—III 299.7 102.9 64.4 38.5 196.8 IV 374.7 306.1 68.5 66.8 52.0 14.9 307.8 105.2 65.7 39.5 202.6 1972—1 382.9 312.9 70.0 68.8 53.3 15.4 1972—1 314.1 107.5 66.8 40.7 206.6 II 395.8 324.1 71.7 71.3 55.3 16.0 324.6 109.6 67.6 42.0 215.0 Ill 409.3 336.1 73.2 73.5 56.9 16.6 335.8 111.5 68.4 43.1 224.3 IV. .. 422.5 347.9 74.6 76.4 59.1 17.3 IV 346.1 113.0 68.2 44.7 233.1 1973—1 432.8 357.4 75.5 79.0 61.1 17.9 1973—1 353.9 113.7 67.9 45.8 224400..22 II, ... 447.9 370.4 77.5 82.2 63.5 18.7 II 365.7 III*... 461.6 380.0 81.6 85.0 65.0 20.0 Ill* 337766..66 i Structures of five or more units. 1 Includes outstanding amount of VA vendee accounts held by private 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 • JANUARY 1974 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings i Mutual savings bank holdings Residential Residential End of period Other OOtthheerr Total non- Farm Total nnoonn-- Farm FHA- VA- Con- farm FHA- VA- Con- ffaarrmm Total in- guar- ven- Total in- guar- vensured anteed tional sured anteed tional 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 7 6 9 5 8 5 4 5 6 7 4 9 9 5 0 , , , , , 6 3 0 6 7 7 1 8 9 0 5 9 0 6 5 4 3 4 3 3 4 1 4 2 7 , , , , , 5 4 3 8 6 8 3 7 7 4 7 3 3 6 2 7 7 7 7 7 , , , , , 7 5 7 9 9 0 4 0 2 6 9 4 2 6 0 2 2 2 2 2 , , , , , 6 5 7 6 6 8 9 0 9 6 8 9 8 6 3 2 2 2 3 3 4 1 7 0 3 , , , , , 7 9 2 8 9 3 9 3 0 5 3 7 7 0 0 2 2 1 1 1 0 2 6 7 4 , , , , , 5 9 1 3 3 3 0 1 6 7 1 5 3 6 7 4 2 3 3 3 , , , , , 9 0 1 7 4 1 1 3 5 4 1 9 8 8 6 4 5 5 4 5 7 0 3 6 4 , , , , , 3 1 4 6 4 3 3 1 9 5 7 8 7 0 6 4 4 4 4 4 8 4 6 2 0 , , , , , 6 7 2 6 0 4 4 4 8 9 1 8 2 2 6 1 1 1 1 1 4 5 3 5 5 , , , , , 7 5 5 0 8 9 0 6 7 6 1 0 9 4 2 1 1 1 1 1 1 1 2 1 2 , , , , , 4 7 0 4 1 7 9 3 0 6 1 5 3 8 6 2 1 1 1 1 0 6 4 9 7 , , , , , 6 8 2 1 7 9 5 7 4 7 7 4 2 6 2 5 5 4 6 7 , , , , , 0 7 4 5 3 4 3 6 9 4 1 2 9 2 2 1 1 1 5 5 1 1 1 3 2 7 7 4 1 1 1 9 9 9 7 7 7 2 0 1 7 9 8 3 9 2 , , , 2 3 5 7 1 1 5 4 5 4 6 5 5 2 2 , , , 6 7 0 8 4 0 2 0 4 7 8 8 , , , 9 4 3 1 9 1 9 5 0 2 3 3 , , , 5 2 9 0 8 8 3 9 0 4 3 5 0 5 1 , , , 1 7 0 3 1 8 1 4 4 2 2 31 6 3 , , , 7 3 2 5 0 8 1 6 4 4 4 4 , , , 3 7 2 5 8 0 1 1 5 6 6 5 1 7 7 , , , 9 5 9 7 5 4 8 6 8 4 5 5 9 3 7 , , , 9 0 1 3 2 4 7 7 0 1 1 1 6 6 6, , , 1 0 0 4 1 8 1 3 7 1 1 1 2 2 2 , , , 0 0 6 0 7 2 8 4 2 2 2 2 8 4 1 , , , 5 8 8 0 1 4 5 2 2 1 7 8 0 , , , 9 8 3 0 9 5 1 3 4 1 5 6 1 0 2 9 1971—IV. 82,515 52,004 8,310 2,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 8,901 50 1972—1.. 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 9,195 50 II. 90,114 56,782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 9,586 60 Ill 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV. 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 10,354 62 1973—Ir. 103,548 65,236 3333,,334422 44,,997700 6688,,992200 55558888,,,,111166669999 22226666,,,,333322228888 66668888 II. 109,114 68,650 88,,448822 3,211 5566,,995577 3355,,222244 55,,224400 7700,,663344 55559999,,,,333399997777 11111111,,,,111177778888 55559999 Ill 114,414 7711,,885522 3377,,007700 55,,449922 7722,,000066 66660000,,,,222288882222 11111111,,,,666666666666 55558888 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 Total Total in F s H ur A e - d a g n V u t A a e r e - - d Other i Farm Total Total in F s H ur A e - d a g n V u t A a e r e - - d Other Farm 1945 976 6,637 5,860 1,394 4,466 766 196 4 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 196 5 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 196 6 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 196 7 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 196 8 7,925 7,153 733 346 6,074 772 69,973 64,172 11,961 5,954 46,257 5,801 196 9 7,531 6,991 594 220 6,177 540 72,027 66,254 11,715 5,701 48,838 5,773 197 0 7,181 6,867 386 6,393 314 74,375 68,726 11,419 5,394 51,913 5,649 1 19 9 7 7 1 2 r 7 8 , , 5 6 7 9 3 6 7 7 , , 9 0 9 7 6 0 3 33 2 1 2 1 1 0 8 1 2 7 6 , , 4 6 8 4 3 7 5 7 0 0 3 0 7 7 5 6 , , 4 94 9 8 6 6 7 9 1 , , 8 2 9 7 5 0 1 9 0 , , 9 7 6 6 2 7 5 4, , 6 0 6 0 0 4 5 5 4 6 , ,6 1 4 2 8 4 5 5 , , 6 6 0 7 1 8 1972—Oct.T 708 663 14 14 635 45 75,692 70,065 10,079 4,712 55,274 5,627 Nov' 786 730 25 10 695 56 75,904 70,266 10,017 4,681 55,568 5,638 Dec. 1,890 1,784 23 17 1,744 106 76,948 71,270 9,962 4,660 56,648 5.678 1973—Jan.. 711 649 16 20 613 62 77,481 71,856 9,901 4,630 57,325 5,625 Feb. 603 542 27 24 491 61 77,510 71,892 9,806 4,613 57,473 5,618 Mar. 670 573 37 24 512 97 77,587 71,953 9,735 4,594 57,624 5,634 Apr., 702 624 20 22 582 78 77,258 71,611 9,708 4,572 57,331 5,647 J M u a n y e 1,1 7 0 74 1 1,0 6 0 9 9 4 2 2 2 4 2 2 7 1 9 65 5 1 8 9 8 2 0 7 77 7 , , 9 4 1 0 4 0 7 7 1 2 , , 7 1 2 8 1 7 9 9 , , 6 5 2 4 7 4 4 4 , ,5 5 4 2 9 4 5 58 7 , , 1 5 1 4 9 5 5 5, . 7 6 2 7 7 9 July. 933 849 26 19 804 84 78,243 72,474 9,464 4,496 58,514 5,769 Aug. 1,034 947 11 20 916 87 78,657 72,839 9,388 4,471 58,980 5,818 Sept. 944 862 23 17 822 82 79,040 73,182 9,330 4,447 59,405 5,858 Oct.. 972 899 13 18 73 79,516 73,619 9,270 4,428 59,921 5,897 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

JANUARY 1974 • REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total o N f u l m oa b n e s r ( c m o a m i m ll m i o o i u n t n s t e t d o f am Lo o a u n n t C in on te t r r e a s c t t Maturity t L o- o v a a n l - ue Capitaliza- Debt (dollars) (thousands rate (yrs./mos.) ratio tion rate coverage of dollars) (per cent) (per cent) (per cent) ratio 2,569 3,244.3 1,263 7.66 22/11 73.6 9.0 1.30 1,788 2,920.7 1,633 8.69 21/8 73.3 9.6 1.29 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 133 290.0 2,181 8.96 23 74.4 9.9 1.30 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 200 381.1 1,906 8.44 24/6 76.3 9.5 1.29 246 399.6 1,624 8.48 23/4 76.0 9.5 1.26 268 683.2 2,549 8.55 23/0 75.4 9.5 1.29 170 421.2 2,478 8.56 23/0 74.5 9.5 1.31 178 515.7 2,897 8.54 23/0 74.9 9.5 1.27 152 354.1 2,329 8.58 23/4 75.7 9.5 1.28 159 343.5 2,161 8.65 23/0 75.8 9.6 1.29 180 371.7 2,065 8.63 23/2 74.7 9.6 1.28 130 363.9 2,799 8.64 22/8 74.4 9.8 1.37 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) Period Ad- Repayvances ments 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 Total l con- pur- Total 2 in- guar- venstruc- chase sured 3 anteed 3 tional tion 196 5 5,007 4,335 5,997 3,074 2,923 196 6 3,804 2,866 6.935 5,006 1,929 196 7 1,527 4,076 4,386 3,985 401 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 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 20,122 4,243 9,604 121,805 5,791 6,351 109,663 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 21,847 4,757 11,254 140,347 7,917 7,658 124,772 197 1 2,714 5,392 7.936 3,002 4,934 197 2 4,790 4,749 7,979 2,961 5,018 21,383 4,150 10,237 150,331 10,178 8,494 131,659 39,472 6,835 18,811 174,385 13,798 10,848 149,739 1972—Nov. 445 246 7,245 2,520 4,725 51,408 8,553 26,615 206,387 29,391 176,996 Dec. 984 251 7,979 2,961 5,018 4,393 714 2,307 203,266 15,490 13,544 174,232 1973—Jan.. 332 480 7,830 2,805 5,025 4,591 667 2,167 206,387 15,639 13,764 176,964 Feb., 415 302 7,944 2,774 5,170 Mar. 764 288 8,421 2,975 5,446 3,702 590 1,970 208,132 29,581 178,551 Apr.. 1,187 178 9,429 3,450 5,979 3,710 614 2,019 210,260 29,751 180,509 May, 916 189 10,156 3,428 6,728 4,990 887 2,685 213,259 30,045 183,214 June, 1,093 104 11,145 4,016 7,129 4,989 886 2,762 216,250 30,182 186,068 July. 1,373 153 12,365 4,583 7,782 5,477 931 3,141 219,500 30,296 189,204 Aug. 1,380 235 13,510 4,737 8,773 5,738 903 3,469 222,801 30,381 192,420 Sept. 999 212 14,298 4,834 9,464 5,059 851 3,079 225,490 30,270 195,220 Oct.' 728 226 14,799 4,805 9,994 4,971 801 3,059 228,006 30,268 197,738 Nov. 295 228 14,866 3,177 572 1,838 229,413 30,632 198,781 2,788 532 1,548 230,425 30,328 200,097 2,372 446 1,367 231,319 30,286 201,033 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities 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 • JANUARY 1974 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans Mortgage Mortgage Mortgage home loans holdings transactions commitments End of ( p d e u r r io in d g ) Date of auction Mortgage Average Mortgage Average period amounts yield amounts yield Total F su H in re A - d - a g n V u t A a e r e - - d c P ha u s r e - s Sales d p M u er r a i i d o n e d g st O i a n n u g d t - Offered ce A p c te - d c ( m o s t h e m e r n o m m r ts t i - ) t - Offered ce A p c t - ed c m ( o s te h m e r n o m m r ts t i ) - t - 1 1 1 9 9 9 6 7 6 0 9 8 1 1 7 0 5 , , , 1 9 4 6 4 9 7 5 2 1 7 5 1 , , , 6 1 0 7 2 6 6 2 3 2 3 4 , , , 0 2 4 4 6 2 6 9 9 4 5 1 , , , 1 0 9 2 7 4 0 9 4 20 2 6 8 , , , 6 6 04 9 3 7 6 0 3 5 1 , , , 5 2 2 3 0 8 9 3 7 In m do il l l l i a o r n s s of per I n c ent In m d i o l l l l i a o r n s s of per I n c ent 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- D N e o c v . . . .. . 1 19 9 , , 7 6 9 1 1 9 1 1 4 4 , , 5 6 5 2 8 4 5 5 , , 0 1 1 1 6 2 3 3 2 0 2 6 1 6 2 1,2 4 3 4 7 7 7 8 , , 4 12 5 4 2 1973—Apr. 30.... 261.2 185.9 7.92 128.9 88.2 8.23 1973-J F a e n b .. . 2 1 0 9 , , 1 9 8 82 1 1 1 4 4 , , 7 8 4 7 6 2 5 5 , , 1 2 7 2 0 2 3 3 4 3 8 4 4 4 5 7 8 8 7 8 , , 9 03 7 4 2 May 1 2 4 8 .... 2 2 5 1 8 2 . . 3 4 1 1 8 4 7 0 . . 7 0 8 7 . . 0 9 0 6 1 1 1 13 7 . . 3 6 8 73 4 . . 9 4 8 8 . . 3 3 1 9 A M M p a a r r y . . . . . . , , 2 2 2 0 1 0 , , , 5 7 0 7 9 8 1 1 7 1 1 1 5 5 5 , , , 5 2 3 8 0 9 1 1 0 5 5 5 , , , 2 3 2 5 3 6 9 5 9 4 3 5 5 7 2 5 2 2 1 1 , ,2 1 9 1 8 3 1 3 0 9 8 8 , , , 1 3 7 3 4 1 9 2 2 June 2 1 5 1 . . . . . . 1 1 9 8 9 4 . . 3 5 1 11 4 8 2 . . 7 2 8 8. . 0 0 9 4 1 9 1 5 0 . . 0 1 6 7 9 4. . 1 4 8 8 . . 5 4 1 4 J J A u u u l n g y e . . . . . . . . 2 2 2 1 2 1 , , , 4 3 7 1 1 7 3 9 2 1 1 1 5 6 5 , , , 7 0 8 6 8 7 8 5 7 5 5 5 , , , 4 7 5 1 6 7 1 1 4 5 5 6 1 1 9 6 6 9 1 1 1 , , , 1 1 0 0 9 1 1 9 2 9 9 9 , , , 7 8 8 7 5 0 8 9 9 July 23 9 . . . . . . . . 3 5 5 3 1 9 . . 4 3 2 1 4 8 4 1 . . 8 4 8 8 . .3 5 8 4 1 1 1 0 9 8 . . 0 4 7 61 2 . . 7 5 8 8. . 7 6 9 7 S O e c p t t .r . .. , 2 2 2 3 , , 8 3 3 4 1 8 1 1 6 6 , , 2 5 9 1 3 0 5 6 , ,1 93 0 7 1 6 6 3 5 3 9 7 2 2 6 4 4 9 8 , , 6 91 0 8 2 Aug. 6 458.5 201.9 8.71 154.3 77.4 8.98 Nov... 23,912 16,734 6,294 656 200 8,690 20. . . 525.0 223.8 8.95 171.3 77.2 9.27 Sept. 4... 551.0 288.9 9.27 118.6 61.5 9.53 NOTE.—FNMA data. Total holdings include conventional loans. Data 17... 138.1 107.9 9.37 48.6 46.8 9.68 prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Mortgage holdings include loans used to back bond issues guaranteed by Oct. 1. . . 32.5 24.1 9.11 9.1 7.1 9.43 GNMA. Mortgage commitments made during the period include some 15. . . 24.8 16.6 8.97 18.6 16.2 9.10 multifamily and nonprofit hospital loan commitments in addition to 1- to 29. . . 28.2 21.6 8.94 17.4 9.4 9.01 4-family loan commitments accepted in FNMA's free market auction system, and through the FNMA-GNMA Tandem Plan (Program 18). Nov. 12. . . 29.3 23.1 8.87 24.1 16.7 8.94 26. . . 24.9 20.9 8.81 31.0 22.1 8.90 Dec. 17.... 38.6 36.2 8.78 51.4 32.2 8.82 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 End of ppeerriioodd)) (In millions of dollars) period 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 196 7 3333333333333333333,,,,,,,,,,,,,,,,,,,333333333333333333344444444444444444448888888888888888888 22222,,,,,777775555566666 555559999922222 888886666600000 1111,,,,000044445555 11111,,,,,111117777711111 received issued 196 8 4444444444444444444,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222220000000000000000000 33333,,,,,555556666699999 666665555511111 11111,,,,,000008888899999 1 888866667777 11111,,,,,222226666666666 196 9 4444444444444444444,,,,,,,,,,,,,,,,,,,888888888888888888822222222222222222220000000000000000000 44444,,,,,222222222200000 666660000000000 888882222277777 666611115555 11111,,,,,111113333311111 197 0 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111188888888888888888884444444444444444444 44444,,,,,666663333344444 555555555500000 666662222211111 888899997777 777773333388888 197 0 1,126.2 452.4 1,315.0 197 1 5555555555555555555,,,,,,,,,,,,,,,,,,,222222222222222222299999999999999999994444444444444444444 44444,,,,,777777777777777 555551111177777 333339999933333 11111,,,,,444449999944444 197 1 4,373.6 2,701.9 300.0 197 2 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111113333333333333333333 197 2 3,854.5 2,661.7 1972-Nov.. 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111155555555555555555552222222222222222222 1972—Nov. 226.4 138.2 Dec.. 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111113333333333333333333 Dec. 440.9 299.8 1973-Jan.. 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111117777777777777777777 1973—Jan.. 515.7 323.3 Feb.. 4444444444444444444,,,,,,,,,,,,,,,,,,,999999999999999999988888888888888888884444444444444444444 Feb., 167.2 216.8 Mar.. 4444444444444444444,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666663333333333333333333 Mar. 339.4 139.9 Apr.. 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444433333333333333333339999999999999999999 Apr. 467.8 182.1 May. 3333333333333333333,,,,,,,,,,,,,,,,,,,999999999999999999988888888888888888880000000000000000000 May 563.3 338.8 June. 3333333333333333333,,,,,,,,,,,,,,,,,,,999999999999999999900000000000000000008888888888888888888 June 243.1 315.3 July.. 4444444444444444444,,,,,,,,,,,,,,,,,,,111111111111111111155555555555555555556666666666666666666 July. 215.7 384.7 Aug.. 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444455555555555555555555555555555555555555 Aug. 174.0 191.3 Sept.. 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444422222222222222222229999999999999999999 Sept. 533.8 380.0 Oct... 4444444444444444444,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333338888888888888888888 Oct.' 825.7 240.8 Nov.. 4444444444444444444,,,,,,,,,,,,,,,,,,,111111111111111111177777777777777777772222222222222222222 Nov. 923.3 210.4 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

JANUARY 1974 • 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 h l h l 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 - e g s jjeeccttss 11 mm pprr ii ee mm oo nn vv -- tt ee ss -- 22 TToottaall 33 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—Dec 7.66 7.59 7.70 7.56 1971 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 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 Feb 7.70 7.72 7.75 7.56 1972--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.r 8.31 8.50 8.80 8.97 June. 650 153 229 207 61 646 182 464 Nov.r 8.39 8.58 8.75 8.86 July.. 559 143 250 100 66 666 204 462 Dec 88..4466 88..6600 Aug.. 537 100 195 167 75 569 193 376 Sept.. 485 90 177 134 84 565 184 381 Oct... 549 113 246 119 72 652 121 431 NOTE.—Annual data are averages of monthly figures. The NNoovv.... 660022 110000 225577 116699 7766 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-mortgage 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 o 9 r 0 m da o y r s e End of period 1965 3.29 2.40 .55 .34 .40 Total F V H A A - t C i v o o e n n n a - - l c P ha u s r e - s Sales d p M u er r a i i d o n e d g s O t i a n u n g t d - - 1966 3.40 2.54 .54 .32 .36 1967 3.47 2.66 .54 .27 .32 1968 3.17 2.43 .51 .23 .26 197 0 325 325 325 1969 3.22 2.43 .52 .27 .27 197 1 968 821 147 778 64 182 197 2 1,789 1,503 286 ,298 408 ,606 198 1970 3.64 2.67 .61 .36 .33 1971 3.93 2.82 .65 .46 .46 1972—Oct. 1,631 1,439 192 102 9 189 371 1972 4.65 3.42 .78 .45 .48 Nov. 1,743 1,491 253 128 10 89 293 Dec. 1,789 1,503 286 143 87 93 198 1971—11 3.27 2.36 .53 .38 .38 Ill 3.59 2.54 .62 .43 .41 1973—Jan., 1,761 1,517 244 76 99 142 226 IV 3.93 2.82 .65 .46 .46 Feb. 1,677 1,535 142 76 150 166 300 Mar. 1,718 1,589 128 119 68 141 295 1972—1 3.16 2.21 .58 .37 .50 Apr. 1,784 1,646 138 126 51 193 343 II 3.27 2.38 .53 .36 .48 May 1,906 1,695 211 147 17 187 344 Ill 3.82 2.74 .65 .43 .52 June 2,029 1,716 313 154 21 159 316 ITV\/ 1l. . . / \4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . .7 7 8 9 . . 4 4 5 6 . .4 5 8 0 A Ju u l g y . . 2 2 , , 1 3 5 0 8 7 1 1 , . 7 72 1 8 4 4 5 4 7 4 9 1 1 4 6 0 1 2 1 0 3 8 9 2 2 7 9 8 1 1973—j 3.63 2.52 .68 .43 S O e c p t. t . 2 2 , , 4 5 2 2 3 7 1 1 . , 7 7 2 4 9 2 6 78 9 5 4 1 11 2 3 6 1 6 4 3 3 2 2 1 8 8 8 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 • JANUARY 1974 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Auto- consumer improve- Personal Single- Charge Total mobile goods ment loans Total payment accounts paper paper loans 1 loans 1940 8,338 5,514 2,071 1,827 371 1,245 2,824 800 1,471 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 1950 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1955 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 1960 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 196 5 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 196 6 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 196 7 100,783 79,428 29,796 22,389 4.008 23,235 21,355 8,558 7,070 196 8 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 196 9 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 197 0 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 197 1 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 197 2 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 1972—Nov. 152.968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 Dec. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 1973—Jan.. 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 Feb. 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 Mar. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 Apr. 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 May 164,277 133,531 47,518 41,096 6,541 38,376 30,746 12,817 8,319 June 167,083 136,018 48,549 41,853 6,688 38,928 31,065 12,990 8,555 July. 169,148 138,212 49,352 42,575 6,845 39,440 30,936 12,968 8,479 Aug. 171,978 140,810 50,232 43,505 7.009 40,064 31,168 13,111 8,605 Sept. 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 8,335 Oct.. 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 8,590 Nov. 176.969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 8,785 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage cluded in "Other consumer goods paper." loans. For back figures and description of the data, see "Consumer Credit," Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 NOTE.—Consumer credit estimates cover loans to individuals for house- and BULLETINS for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Com- Finance Mis- Auto- Total mercial compa- Credit cellaneous Total mobile banks unions lenders 1 dealers 2 1940 5,514 3,918 1,452 2,278 171 17 1,596 167 1945 2,462 1,776 745 910 102 19 686 28 1950 14,703 11,805 5.798 5,315 590 102 2,898 287 1955 28,906 24,398 10,601 11,838 1,678 281 4,508 487 1960 42,968 36,673 16,672 15,435 3,923 643 6,295 359 196 5 70,893 61,102 28,962 23,851 7,324 965 9,791 315 196 6 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 196 7 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 196 8 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 196 9 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 197 0 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 197 1 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 197 2 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 1972—Nov. 124,325 109,673 58,878 31,427 16,742 2,626 14,652 259 Dec. 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 1973—Jan.. 127,368 111,690 60,148 32,177 16,847 2,518 15,678 263 Feb.. 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 Mar. 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 Apr. 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 May, 133,531 118,165 63,707 33,859 17,832 2,767 15,366 284 June. 136,018 120,450 64,999 34,367 18,269 2,815 15,568 289 July. 138,212 122,479 66,065 35,020 18,517 2,877 15,733 293 Aug. 140,810 124,823 67,381 35,634 18,961 2,847 15,987 296 Sept. 142,093 126,040 67,918 35,993 19,207 2,922 16,053 297 Oct.. 143,610 127,307 68,627 36,365 19,339 2,976 16,303 300 Nov. 145,400 128,553 69,161 36,887 19,517 2,988 16,847 302 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with "Other retail outlets." cellaneous lenders include savings and loan associations and mutual savings banks. See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Commercial banks Finance companies 1 End of Automobile Other consumer Other consumer period paper goods paper Home Per- Auto- goods paper Home Per- Total improve- sonal mobile improve- sonal ment loans paper ment loans Pur- Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1940 1,452 339 276 232 165 440 2,278 1,253 159 193 673 1945 745 66 143 114 110 312 910 202 40 62 606 1950 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 80 1,386 1955 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 42 3,240 1960 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 173 5,006 196 5 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 196 6 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 196 7 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 196 8 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 196 9 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 174 12,485 197 0 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 197 1 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 197 2 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 497 14,912 1972—Nov. 58,878 16,180 10,674 5,690 4,868 5,063 3,557 12,846 31,427 10,026 2,899 3,476 452 14,574 Dec.. 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 497 14,912 1973—Jan.. 60,148 16,464 10,889 5,839 5,311 5,135 3,527 12,983 32,177 10,177 2,928 3,644 528 14,900 Feb.., 60,582 16,680 10,977 5,932 5,283 5,158 3,515 13,037 32,431 10,267 2,909 3,752 562 14,941 Mar.. 61,388 16,951 11,216 6,035 5,243 5,289 3,538 13,116 32,750 10,419 2,943 3,796 581 15,011 Apr.. 62,459 17,327 11,436 6,163 5,290 5,401 3,581 13,261 33,078 10,617 2,991 3,831 611 15,028 May. 63,707 17,716 11,680 6,321 5,360 5,538 3,635 13,457 33,859 10,872 3,025 3,985 656 15,321 June. 64,999 18,138 11,866 6,473 5,502 5,688 3,700 13,632 34,367 11,121 3,081 4,002 694 15,469 July.. 66,065 18,439 12,023 6,629 5,603 5,815 3,774 13,782 35,020 11,365 3,132 4,103 733 15,687 Aug.. 67,381 18,771 12,190 6,825 5,792 5,923 3,863 14,017 35,634 11,583 3,187 4,194 771 15,899 Sept. 67,918 18,886 12,160 6,956 5,909 5,978 3,903 14,126 35,993 11,721 3,235 4,265 809 15,963 Oct.. 68,627 19,123 12,262 7,106 5,991 6,012 3,950 14,183 36,365 11,859 3,269 4,316 847 16,074 Nov.. 69,161 19,198 12,306 7,208 6,171 6,035 3,979 14,264 36,887 11,949 3,310 4,371 886 16,371 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 End of period Total mobile sumer improve- sonal paper goods ment loans Total Service paper loans End of period Com- Other credit mer- finan- Retail Credit cial cial outlets cards 1 1940 188 36 7 13 132 banks insti- 1945, 121 16 4 10 91 tutions 1950, 692 159 40 102 391 1955, 1,959 560 130 313 956 1960, 4,566 1,460 297 775 2,034 1940 2,824 636 164 1,471 553 1945 3,203 674 72 1,612 845 1965. 8,289 3,036 498 933 3,822 1950 6,768 1,576 245 3,291 76 1,580 1966. 9,315 3,411 588 980 4,336 1955 9,924 2,635 367 4,579 216 2,127 1967. 10,216 3,678 654 1,085 4,799 1960 13,173 3,884 623 4,893 436 3,337 1968. 11,717 4,238 771 1,215 5,493 1969. 13,722 4,941 951 1,443 6,387 1 1 9 9 6 6 5 6 1 1 8 9 , , 9 9 9 9 0 4 6 6 , , 6 9 9 4 0 6 1,0 9 2 81 6 5 5, , 8 7 1 2 2 4 7 8 0 7 6 4 4 5 , , 8 3 8 3 9 6 1970. 15,088 5,116 1,177 1,800 6,995 196 7 21,355 7,478 1,080 6,041 1,029 5,727 1971 , 17,021 5,747 1,472 1,930 7,872 196 8 23,025 8,374 1,158 5,966 1,227 6,300 1972, 19,511 6,598 1,690 2,160 9,063 196 9 24,041 8,553 1,194 5,936 1,437 6,921 1972-—Nov 19,368 6,535 1,675 2,165 8,993 197 0 25,099 8,469 1,206 6,163 1,805 7,456 Dec 19,511 6,598 1,690 2,160 9,063 197 1 27,099 9,316 1,269 6,397 1,953 8,164 197 2 30,232 10,857 1,399 7,055 1,947 8,974 1973-—Jan 19,365 6,560 1,680 2,138 8,987 Feb 19,617 6,627 1,698 2,162 9,130 1972—Nov.... 28,643 10,527 1,390 6,081 1,929 8,716 Mar. 20,052 6,752 1,732 2,209 9,359 Dec.... 30,232 10,857 1,399 7,055 1,947 8,974 Apr 20,190 6,820 1,748 2,216 9,406 May 20,599 6,966 1,785 2,250 9,598 1973—Jan.... 29,859 10,825 1,379 6,402 1,955 9,298 June 21,084 7,135 1,828 2,294 9,827 Feb.... 29,623 10,989 1,420 5,735 1,911 9,568 July 21,394 7,232 1,853 2,338 9,971 Mar 29,945 11,074 1,466 5,825 1,877 9,703 Aug 21,808 7,392 1,893 2,375 10,148 Apr— 30,469 11,237 1,449 6,129 1,907 9,747 Sept 22,129 7,493 1,920 2,408 10,308 May... 30,746 11,359 1,458 6,387 1,932 9,610 Oct 22,315 7,548 1,935 2,438 10,394 June... 31,065 11,520 1,470 6,544 2,011 9,520 Nov 22,505 7,616 1,952 2,456 10,481 July. .. 30,936 11,491 1,477 6,424 2,055 9,489 Aug— 31,168 11,655 1,456 6,475 2,130 9,452 Sept.... 30,942 11,608 1,480 6,229 2,106 9,519 NOTE.—Other financial lenders consist of credit unions and miscel- Oct 31,230 11,654 1.491 6,554 2,036 9,495 laneous lenders. Miscellaneous lenders include savings and loan associa- Nov 31,569 11,669 1.492 6,761 2,024 9,623 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 • JANUARY 1974 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———NNNooovvv . . . 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 NNNooovvv 14,275 111111111444444444,,,,,,,,,000000000999999999888888888 3,819 333333333,,,,,,,,,666666666999999999333333333 5,978 555555555,,,,,,,,,999999999888888888000000000 402 333333333888888888999999999 4,076 444444444,,,,,,,,,000000000333333333666666666 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———NNNooo vvv 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 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 NNNooovvv 12,549 111111111222222222,,,,,,,,,333333333000000000888888888 3,471 333333333,,,,,,,,,444444444111111111444444444 5,154 555555555,,,,,,,,,000000000222222222000000000 301 333333333000000000333333333 3,623 333333333,,,,,,,,,555555555777777777111111111 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—No v 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—Ja n 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 Nov 1,726 111111111,,,,,,,,,777777777999999999000000000 348 222222222777777777999999999 824 999999999666666666000000000 101 888888888666666666 453 444444444666666666555555555 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

JANUARY 1974 • 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———NNNooo vvv 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 n n n 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 NNNooovvv 14,275 111111111444444444,,,,,,,,,000000000999999999888888888 6,222 555555555,,,,,,,,,666666666999999999777777777 3,564 333333333,,,,,,,,,777777777222222222222222222 2,029 111111111,,,,,,,,,999999999222222222999999999 2,460 222222222,,,,,,,,,777777777555555555000000000 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———NNNooo vvv 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 444 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 NNNooovvv 12,549 111111111222222222,,,,,,,,,333333333000000000888888888 5,345 555555555,,,,,,,,,111111111666666666333333333 3,143 333333333,,,,,,,,,222222222000000000000000000 1,814 111111111,,,,,,,,,777777777333333333999999999 2,247 222222222,,,,,,,,,222222222000000000666666666 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—No v 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 Nov 1,726 111111111,,,,,,,,,777777777999999999000000000 877 555555555333333333444444444 421 555555555222222222222222222 215 111111111999999999000000000 213 555555555444444444444444444 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. • JANUARY 1974 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 - a 1 v 9 e 7 r 2 - 1972 1973 Grouping p ti o o r n - age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov Total index 100.0 115.2 120.2 121.1 122.2 123.4 123.7 124.1 124.8 125.6 126.7 126.5 126. Pr F od in C u a c o l t n p s s , r u o t m d o u t e a c r l t s goods 4 6 2 8 2 8 . . . 9 2 5 5 1 3 1 1 1 1 1 2 1 3 3 . . 9 . 8 6 1 1 1 1 1 2 6 8 7 . . 3 . 6 4 1 1 1 1 1 2 6 9 7 . . . 8 1 7 1 1 1 1 2 2 8 0 9 . . 6 . 7 8 1 1 1 1 2 3 9 1 0 . . 3 . 5 2 1 1 1 1 2 3 9 1 0 . . . 6 7 8 1 1 1 2 2 3 0 0 2 . . 0 . 9 0 1 1 1 2 2 3 0 2 1 . . 8 . 9 8 1 1 1 2 2 3 1 3 1 . . 3 . 7 9 1 1 1 2 2 3 2 4 2 .1 . . 2 8 1 1 1 2 2 3 1 3 1 .4 . . 7 2 1 1 1 2 2 3 2 4 2 . . 4 . 3 3 Equipment 20.42 95.5 100.7 101.5 102.9 104.1 104.1 104.7 105.7 106.6 107.3 107.6 108.5 Intermediate products 13.26 121.1 127.6 127.7 128.4 129.5 129.4 129.3 130.5 132.0 132.5 132.1 131.0 Materials 37.79 117.4 122.8 124.4 124.5 126.7 127.0 127.7 128.3 129.0 130.9 130.9 131.3 Consumer goods Du A ra u b t l o e m c o o t n i s v u e m p e r r o d g u oo c d ts s 2 7. . 8 8 6 4 1 1 2 2 5 7 . . 7 7 1 1 3 3 1 8 . . 0 3 1 1 3 4 5 2 . . 0 9 1 1 3 3 6 8 . . 0 6 1 1 3 4 7 1 . . 8 7 1 1 4 4 0 4 . . 4 1 1 1 4 4 0 1 . . 5 7 1 1 4 4 1 2 .5 .6 1 1 4 4 1 2 .6 1 1 4 4 2 1 . .7 1 1 3 2 4 1 . . 0 1 1 3 2 8 9 .2 .8 Autos 1.87 112.7 126.6 133.9 130.2 131.5 130.8 128.1 129.8 132.6 134.0 103.9 118.4 Auto parts and allied goods... .97 156.5 160.6 160.0 155.0 161.4 169.9 167.5 167.0 161.9 156.7 154.2 151. Home goods 5.02 124.5 126.9 130.5 134.5 135.8 138.3 139.8 140.9 141.3 142.9 141.1 142.9 Appliances, TV, and radios 1.41 124.6 121.7 133.3 140.7 137.8 143.0 149.7 148.0 147.2 147. 146.3 149.4 Appliances and A/C .92 144.5 141.9 151.1 153.2 153. 156.9 157.6 157.8 154.1 156.0 153.3 159. TV and home audio .49 87.5 83.9 99.9 C M a i r s p c. e t h in o g m e a n g d o o fu d r s niture 2 1 . . 5 0 3 8 1 1 3 2 2 1 . . 6 0 1 1 3 2 7 5. . 2 6 1 1 2 3 5 9 . . 3 0 1 1 2 42 7 . . 1 5 1 13 4 0 5 . . 9 0 1 13 4 2 5 . . 7 7 1 1 3 46 1 . . 7 4 1 1 4 3 7 4 . . 0 1 1 3 4 4 8 . . 7 9 1 13 5 4 5 . . 7 4 1 1 3 5 2 4 . . 9 2 1 1 3 5 4 3 . . 8 3 No C C nd l o o C u n t r o s h a u n i b n m s le u g e m r c e o s r t n a s f p u o l m o e d s e r s a g n o d od s t obacco.. 2 1 0 4 8 6 . . . 6 . 3 3 3 7 7 2 4 1 1 1 12 1 0 2 2 7 9 2 . . 5 7 .8 1 1 1 1 2 2 1 1 6 8 4 9 .0 . . . 9 8 9 1 1 1 1 2 1 2 1 5 9 8 2 . . 0 . . 1 4 2 1 1 1 1 2 1 2 3 7 5 1 0 . . . . 4 1 7 1 1 1 1 1 2 3 2 1 7 0 1 5 . . . 3 . 5 5 2 1 1 1 1 2 2 3 1 7 0 0 5 . . . 1 . 9 3 4 1 1 1 1 2 3 1 2 7 4 0 1 . . . 2 . 5 6 0 1 1 1 1 2 3 2 1 8 1 0 4 . . 0 . . 7 9 2 1 1 1 1 2 3 1 1 8 6 1 9 . . 1 . . 4 6 0 1 1 1 1 2 3 2 1 9 2 1 6 . . . . 1 5 3 5 1 1 1 1 3 2 3 1 0 1 3 7 . . 2 . . 9 6 0 1 1 1 1 2 3 1 3 0 2 8 3 . . . 1 .2 2 0 Nonfood staples 7.98 135.3 138.3 138.1 140.9 140.0 140.1 140.7 143 143.7 144.1 145.8 144.8 Consumer chemical products 2.64 144.6 145.1 143.9 148.8 149.9 151.1 151.5 154.9 153.5 153.0 155.6 153.4 C C o o R n n e s s s u u i m m de e e n r r ti p f a u a l e p l u e a t r i n li p d t r ie o l s i d g u h c ti t n s. g .. . , 2 3 1 . . . 2 9 4 5 1 3 1 1 1 3 1 4 9 4 7 . . . 5 8 8 1 1 15 4 1 2 3 9 . . . 5 7 3 1 1 1 4 5 1 4 3 9 . . . 1 6 3 1 1 1 4 5 1 7 9 6 . . . 1 1 5 1 1 1 5 4 1 4 4 9 . . . 4 0 4 1 1 1 5 4 1 3 8 3 . . . 5 7 8 1 1 15 1 4 2 9 4 . . . 3 0 4 1 1 1 5 4 2 2 5 1 . . . 1 7 6 1 1 1 4 5 21 8 5 . . . 7 2 4 1 1 1 5 2 4 7 2 9 . . . 8 5 2 1 1 1 2 6 5 4 0 0 . . . 1 0 4 1 1 1 6 4 2 0 9 4 . . . 7 9 4 Equipment Bu I s n in d P M B e u o u s a s s w i t n l r d e e u i r q i a f n u a l e g i c q e p t q u a m u n u i r e p d i i n p m n t m g m e n e i e n t n q i t u n g ip e m q e u n i t p . 12 6 3 1 1 . . . . . 7 7 8 4 4 4 7 5 5 7 1 1 1 1 0 9 0 0 2 6 2 2 4 5 . . . 1 . . 7 5 8 6 1 1 1 1 1 1 0 0 1 3 3 8 2 2 0 . . . . 4 . 7 9 6 4 1 1 1 1 1 0 1 1 3 4 2 4 1 2 . . . . 4 . 1 5 5 3 1 1 1 1 1 0 3 1 1 1 4 4 3 3 6 . . . . . 7 6 0 0 9 1 1 1 1 1 1 1 3 0 1 8 5 4 5 6 . . . . . 2 1 5 5 1 1 1 1 1 1 1 0 3 1 1 8 7 7 5 6 . . . 6 . . 1 5 6 0 1 1 1 1 1 1 1 0 3 1 9 8 7 9 7 . . 6 . . . 6 4 4 1 1 1 1 1 1 2 1 1 1 3 1 8 2 9 8 . . . . 3 . 1 2 8 0 1 1 1 1 1 2 1 1 1 3 2 3 9 9 8 . . . 5 . . 1 1 8 3 1 1 1 1 1 2 1 3 2 1 3 8 3 0 9 . . . . 0 . 5 5 9 6 1 1 1 1 1 2 2 4 1 2 4 5 2 1 3 . . 6 . . . 1 5 0 0 1 1 1 1 1 2 2 4 2 1 5 4 2 3 7 . . . 8 . . 1 3 7 3 Commercial, transit, farm eq.. .., 5.97 110.3 116.6 117.6 121.4 122.4 121.9 122.2 123.7 125.4 125. 127.0 127.7 Commercial equipment 3.30 118.4 125.5 126.5 128. 129.9 130.6 131.3 131.6 134.1 135.9 137.0 138.2 Transit equipment 2.00 96.8 101.9 101.7 110.0 111.8 110.2 107.5 109.8 109.7 109.0 108.4 109.6 Farm equipment .67 110.5 116.3 120.0 118.3 117.6 114.6 120.9 126.5 129.3 126.4 132.8 129.4 Defense and space equipment 7.68 77.9 79.6 80.1 79.8 80.6 80.1 80.0 79.7 80.1 81.1 79.7 79.8 Military products 5.15 80.1 81.5 81.8 81.0 82.0 81.5 81.0 80. 80.0 81. 79.0 79.1 Intermediate products Construction products 5 7 . . 9 3 3 4 1 12 2 1 0 . . 3 8 1 1 2 3 5 0 . . 9 0 1 1 2 2 6 8. . 7 9 1 1 2 29 7 . . 6 4 1 1 3 2 0 8 . . 3 9 1 1 3 2 0 8 . . 7 3 1 1 3 2 2 7 . . 2 0 1 1 3 2 2 9 . . 2 2 1 1 3 2 5 8 . . 9 9 1 1 3 3 4 2. . 7 5 1 1 3 2 5 9 . . 3 6 1 12 3 8 4 . . 1 9 Misc. intermediate products Materials 20.91 113.5 121.4 123.5 124.1 126.6 127.6 127.9 128.6 129.2 131.7 131.8 132.3 Du C E ra q o b n u l i s e p u m g m o e e o n r d t s d p u m a r r a a t t b s e r le ia p ls a rts 1 4 5 0 . . . 4 7 7 1 5 5 1 1 9 2 1 9 0 3 . . . 3 8 6 1 1 1 2 2 0 0 7 9 . . . 5 7 7 1 1 1 2 2 1 3 9 2 . . . 6 2 0 1 1 1 3 1 2 0 1 3 . . . 6 6 9 1 1 1 3 1 2 4 3 5 . . . 2 0 4 1 1 1 2 3 1 5 4 4 . . . 9 9 6 1 1 1 3 1 2 4 3 9 . . . 7 8 0 1 1 1 2 3 1 5 5 8 . . . 7 3 0 1 1 1 2 3 1 8 4 8 . . . 9 2 1 1 1 2 3 2 4 7 6 . . . 5 6 9 1 1 1 3 2 28 2 8 . . . 3 0 6 1 1 1 2 3 2 2 8 9 . . . 7 9 N Fu o T D N n el e d u o x u n r a t r a n d i a l b d u b e l l , r e e p a p o b m a g w l p o a e e e o t r e m r d , r , s a i i a a n t m n e l d s r d a u i t n a s e c e t l r h s r c i a i e a l n m s l . e . .c m at 13 5 2 8 . . . . 9 4 8 5 9 1 9 8 1 1 1 1 2 1 2 2 2 1 0 9 . . . 5 . 9 9 2 1 1 1 1 2 1 2 3 4 1 2 2 . . . . 6 9 8 6 1 1 1 1 2 1 1 3 6 9 1 6 . . 4 . . 5 4 0 1 1 1 1 2 1 2 3 6 0 0 6 . . 3 . . 9 6 0 1 1 1 1 2 3 2 1 7 6 2 3 . . 7 . . 5 7 9 1 1 1 1 2 1 2 3 7 2 2 6 . . . 1 . 7 3 6 1 1 1 1 2 1 2 3 8 2 2 8 . . . 5 . 1 8 2 1 1 1 1 2 3 2 1 8 2 2 9 .9 . . . 9 3 4 1 1 1 1 2 1 2 4 9 2 5 0 . . . 4 . 3 3 2 1 1 1 1 3 1 2 4 0 2 6 2 . . . 4 . 9 2 1 1 1 1 1 3 1 2 4 0 1 6 2 . . . 6 . 7 3 4 1 1 1 1 3 1 2 4 0 2 8 1 . . . . 3 3 9 0 Supplementary groups Home goods and clothing 9.34 117.7 121.1 122.0 125.5 126.3 127.6 128.1 128.6 129.7 130.7 130.0 131.3 Containers 1.82 129.7 134.1 135.0 137.1 138.8 145.2 139.1 138.0 141.4 135.1 140.5 139. Gross value of products in market structure (In billions of 1963 dollars) Pro F d i u n c a t l s , p r to o t d a u l cts 4 3 3 3 5 4 .7 .7 4 3 3 3 7 6 .3 .3 4 3 4 4 2 0 . . 8 5 4 3 4 4 5 2 .7 .7 4 3 4 4 6 3 .9 .9 4 3 4 4 6 3 .2 .7 4 3 4 4 9 6 .7 .6 4 3 5 4 1 7 .8 .8 4 3 5 4 2 7 . . 9 7 3 4 4 4 1 6 . . 9 2 4 3 4 4 9 6 . . 8 3 Consumer goods... 234.4 235.9 237.6 238.2 239.5 238.9 241.1 241.3 241.0 235.4 239.0 Equipment 100.2 100.6 103.0 104.6 104.5 104.8 105.6 106.6 106.6 106.6 107.3 Intermediate products. 100.8 101.3 102.2 103.0 102.7 102.3 103.1 104.3 104. 104.6 103.5 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) 1967 1972 1972 1973 pro- aver- Grouping p ti o o r n - age Nov. Dec. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. M M a i M N D U n n o u t i u i n i n n r l f g i a a i d t n c b i u a g e t l r u n s e a r d i b n l u g e t ilities 5 8 3 1 8 6 5 2 6 1 . . . . . . 5 3 0 3 4 2 5 7 8 3 5 2 1 1 1 1 1 1 1 0 2 2 0 4 4 8 2 4 8 3 . . . . . . 0 1 4 4 8 1 1 1 1 1 1 1 1 0 2 2 1 4 9 9 5 6 5 8 . . . . . . 5 7 7 6 3 2 1 1 1 1 1 1 2 0 1 2 2 4 0 8 6 8 6 6 . . . . . . 4 2 1 5 3 2 1 1 1 1 1 1 2 0 1 2 2 5 1 8 7 7 7 1 . . . . . . 4 5 5 3 0 0 , 1 1 1 1 1 1 2 1 1 2 5 2 2 0 8 0 8 8 . . . . . . 7 0 7 5 2 4 1 1 1 1 1 1 2 0 1 2 2 4 3 9 8 9 7 9 . . . . . . 4 6 5 9 3 6 1 1 1 1 1 1 2 2 0 2 2 4 3 0 9 6 8 8 . . . . . . 8 6 6 0 7 4 1 1 1 1 1 1 2 0 2 4 2 2 4 9 1 9 9 7 . . . . . . 9 8 1 5 3 0 1 1 1 1 1 1 2 0 2 5 2 2 5 9 1 9 8 3 . . . . . . 6 2 5 5 3 0 1 1 1 1 1 1 2 1 2 3 5 3 6 1 0 3 4 0 . . . . . . 5 5 8 0 8 4 ! 1 1 1 1 1 1 2 2 3 1 3 5 6 2 0 1 0 4 . . . . . . 1 6 9 5 7 8 1 1 1 1 1 1 2 3 1 2 3 5 6 1 0 3 1 5 . . . . . . 3 7 3 3 8 8 1 1 1 1 1 1 2 3 3 1 2 5 6 1 0 1 3 6 . . . . . . 3 1 3 3 6 2 Durable manufactures Pri P F m r a I i a b m r r r o y a i n c r a a y a t n e n d m d d f e a m t s b a t e r e l i s t e c a l a , l te s p d u r b o t d m o u t e a c t t l a s l s 1 5 6 4 2 . . . . 5 6 9 2 1 5 4 3 1 1 1 1 1 1 0 1 3 7 3 4 . . . . 9 1 1 8 1 1 1 1 2 2 2 1 2 2 2 9 . . . . 6 9 2 2 1 1 1 1 2 2 2 2 4 2 5 0 . . . . 0 3 4 0 1 1 1 1 2 2 2 1 4 3 8 5 . . . . 3 1 7 6 1 1 1 1 2 2 2 2 5 4 6 0 . . . . 4 0 7 2 1 1 1 1 2 2 2 1 5 3 7 8 . . . . 8 5 5 4 1 1 1 1 2 2 2 1 7 8 5 9 . . . . 3 9 7 8 1 1 1 1 2 2 3 1 8 6 0 9 . . . . 1 1 3 8 1 1 1 1 2 2 3 1 8 4 9 3 . . . . 7 5 9 4 1 1 1 1 3 2 3 2 0 8 3 0 . . . . 6 1 5 9 1 1 1 1 2 3 1 2 9 3 8 5 . . . . 5 8 5 6 1 1 1 1 2 3 2 2 9 1 2 7 . . . . 5 5 7 8 1 1 1 1 3 3 3 2 1 2 0 3 . . . . 7 8 6 6 Ma O T I M c n r h r a s E N A M a d i t c n n l r o e n h e o e u s r n a c i t r p o m n t n e o y o r s l e r c e e p i r r e c a n c t a y v , a a n t t c e l r s t p d e h i i r o m c i a i a n a c v l a n l l l a e i c e d e t s m h q e d i m a u a n a g n i c e i n p o h d s r d o m c y in d . p e s e G t n a r r t y o a r n v t s s t , . . . . e . . q . . 3 1 2 9 9 4 4 2 8 3 7 . . . . . . . . . 4 1 2 7 0 5 6 3 2 4 2 7 9 3 7 6 9 9 1 1 1 1 1 1 9 0 7 8 0 0 2 0 2 3 9 5 6 3 5 7 9 0 . . . . . . . . . 5 0 1 8 0 5 7 6 2 1 1 1 1 1 1 1 7 1 8 1 2 0 1 1 3 0 8 7 6 5 5 5 5 2 . . . . . . . . . 1 7 1 3 7 3 0 3 1 1 1 1 1 1 1 1 7 1 8 0 3 1 1 1 2 1 8 7 6 5 6 9 4 6 . . . . . . . . . 2 3 8 9 8 6 4 6 6 1 1 1 1 1 1 1 1 7 8 3 1 0 2 1 3 2 7 7 0 0 6 7 8 9 . . . . . . . . . 5 1 8 1 3 6 0 3 4 1 1 1 1 1 1 1 1 7 8 1 1 1 4 3 2 3 9 7 9 0 1 7 1 1 . . . . . . . . . 7 1 7 5 6 3 9 2 0 1 1 1 1 1 1 1 1 8 8 2 3 1 1 4 2 5 7 0 3 3 0 9 1 1 . . . . . . . . . 1 8 1 9 8 3 4 0 0 1 1 1 1 1 1 1 1 8 8 1 4 2 2 2 3 5 1 0 0 6 2 1 3 4 . . . . . . . . . 7 1 6 1 5 0 8 7 4 1 1 1 1 1 1 1 1 8 8 2 2 4 2 1 3 7 2 5 4 0 5 4 1 8 . . . . . . . . . 3 2 7 9 4 4 0 9 0 1 1 1 1 1 1 1 1 8 8 2 2 1 2 4 4 8 6 2 6 2 6 7 0 3 . . . . . . . . . 8 1 2 7 9 8 2 3 2 1 1 1 1 1 1 1 1 8 8 2 4 2 2 1 4 9 1 6 7 4 8 2 7 0 . . . . . . . . . 3 0 3 7 1 1 1 8 6 1 1 1 1 1 1 1 1 8 8 2 4 2 3 0 2 7 1 3 8 5 0 8 8 1 . . . . . . . . . 7 3 8 7 5 9 9 2 0 1 1 1 1 1 1 1 8 8 1 3 4 0 2 3 3 8 1 3 1 7 3 9 0 0 . . . . . . . . . 9 7 7 5 3 8 9 0 0 1 1 1 1 1 1 1 1 8 8 2 2 3 4 0 2 8 2 3 8 8 6 8 1 8 . . . . . . . . . 6 8 3 9 5 5 9 4 0 Lu C L m u l b a m e y r , b , e g c r l l a a a s y s n , , d a a n p n d r d o g s d l t u a o s c n s t e s products. 4 2 1 . . . 4 7 6 4 9 5 1 1 1 2 1 2 0 8 2 . . . 0 4 6 1 1 1 2 2 2 4 3 6 . . . 5 8 1 1 1 1 2 2 2 3 4 2 . . . 7 7 3 1 1 1 2 2 2 6 6 5 . . . 1 1 1 2 2 2 7 6 8 . . . 3 6 5 1 1 1 2 2 2 9 9 8 . . . 1 5 9 1 1 1 2 2 3 9 9 0 . . . 9 1 4 1 1 1 3 2 3 0 7 2 . . . 3 5 0 1 1 1 2 2 3 9 6 0 . . . 2 6 5 1 1 1 2 2 3 9 2 5 . . . 8 3 4 1 1 1 2 2 2 9 8 9 . . . 2 4 6 1 1 1 2 2 2 8 8 8 . . . 8 8 9 1 1 1 2 2 3 9 7 1 . . . 7 4 2 Fu M F rn u i i r s t n c u e i r t l e u l a r a n e n e d a o n u m d s i s f c m i e x l a t l u a n n r u e e f s o a u c s t ures.... 2 1 1 . . . 9 3 5 0 8 2 1 1 1 2 3 1 2 1 3 . . . 7 1 5 1 1 1 2 1 3 6 8 4 . . . 6 5 0 1 1 1 2 2 3 7 4 0 . . . 7 5 3 1 1 1 3 1 4 0 9 0 . . . 3 1 5 1 1 1 3 2 4 2 2 2 . . . 8 3 4 1 1 1 3 2 4 3 2 3 . . . 4 8 0 1 1 1 3 2 4 3 3 1 . . . 1 8 6 1 1 1 3 2 4 6 6 4 . . . 0 5 5 1 1 1 3 2 4 5 6 3 . . . 4 5 6 1 1 1 3 2 4 5 7 3 . . . 9 5 5 1 1 1 3 2 4 7 9 4 . . . 5 5 9 1 1 1 3 4 3 8 5 0 . . . 2 3 4 1 1 1 3 4 2 6 2 8 . . . 1 9 8 Nondurable manufactures Te T L A xt e e p i x a l p e t t s a i h , l r e e e r a l m p a p p i n l r a l d o r e p d p l r u , r o c o a d t d s n u u d c c t l s t e s a ther 6 2 3 . . . 9 6 3 0 9 3 1 1 1 0 8 0 1 8 8 5 7 . . . . 1 9 7 4 1 1 1 1 8 1 2 3 5 0 5 . . . . 0 9 7 1 1 1 1 1 8 1 2 3 7 1 4 . . . . 2 1 4 2 1 1 1 1 8 2 1 3 1 5 2 . . . . 4 3 3 3 1 1 1 1 8 2 1 4 6 5 2 . . . . 4 1 6 1 1 1 1 1 8 2 1 4 7 5 2 . . . . 6 1 0 4 1 1 1 1 8 2 1 4 6 6 1 . . . . 0 1 8 7 1 1 1 1 8 1 2 3 3 0 7 . . . . 3 0 2 0 1 1 1 1 8 2 1 5 6 9 1 . . . . 0 6 2 0 1 1 1 7 1 2 1 4 9 8 2 . . . . 5 2 9 1 1 1 1 1 8 2 1 5 1 9 3 . . . . 4 0 6 0 1 1 1 8 1 3 1 7 6 0 5 . . . . 5 4 2 4 1 1 1 8 1 2 1 6 3 9 4 . . . . 2 1 3 3 Pa P P pe r a r i p n e t a r i n n a d g n p d a r n in p d t r i o p n d u g u b c li t s s h ing 4 7 3 . . . 9 1 7 2 8 4 1 1 1 1 2 0 6 8 7 . . . 1 9 2 1 1 1 2 3 1 0 1 2 . . . 0 3 6 1 1 1 2 3 1 0 3 1 . . . 3 6 3 1 1 1 2 1 3 0 2 1 . . . 0 8 1 1 1 1 2 3 1 1 4 3 . . . 5 1 0 1 1 1 2 3 1 2 7 2 . . . 4 1 4 1 1 1 2 3 1 0 3 2 . . . 8 6 2 1 1 12 3 1 2 5 3 . . . 0 1 2 1 1 1 2 3 1 2 4 4 . . . 8 6 8 1 1 1 2 3 1 3 5 6 . . . 8 0 3 1 1 1 2 1 3 4 6 7 . . . 5 0 2 1 1 1 2 3 1 2 4 3 .1 . . 8 6 1 1 1 2 3 1 1 5 2 . . . 3 3 1 Ch C P R e e m h u t e b r ic m o b a l e i l e c r s u , a m a l p s n e d t a p r n r o p o d l l e d a u p u s m r t c i o t , c s d s u a p c n r t d s o d r u u c b t b s e . r .. . 1 7 2 1 1 . . . . 9 8 2 8 2 6 0 6 1 1 1 1 3 4 2 3 7 5 0 9 . . . . 8 6 5 6 1 1 1 1 4 5 4 2 2 1 3 4 . . . . 0 5 2 4 1 1 1 1 4 2 4 5 3 5 4 4 . . . . 8 5 7 7 1 1 1 1 4 5 2 4 5 7 7 6 . . . . 5 1 3 4 1 1 1 1 4 2 4 6 6 4 7 0 . . . . 3 1 2 4 1 1 1 1 4 2 4 6 6 3 6 3 . . . . 3 5 8 4 1 1 1 1 4 6 2 4 7 5 6 7 . . . . 9 1 9 8 1 1 1 1 5 2 6 5 0 8 6 0 . . . . 2 8 5 2 1 1 1 1 4 2 6 5 9 9 3 0 . . . . 8 7 9 4 1 1 1 1 5 2 6 5 1 8 9 2 . . . . 8 8 3 0 1 1 1 1 5 2 6 5 1 8 7 1 . . . . 0 2 9 4 1 1 1 1 5 2 6 5 0 6 3 3 . . . . 9 0 6 0 1 1 1 1 5 6 5 2 1 1 3 9 . . . . 1 4 2 2 Fo T F od o o s b o d a a s c n c d o to p b r a o c d c u o c ts 9 8 . . . 4 8 6 8 1 7 1 1 1 1 1 0 7 3 8 . . . 6 7 6 1 1 1 1 1 1 9 2 9 . . . 0 5 4 1 1 1 1 1 0 8 9 2 . . . 5 5 7 1 1 1 1 2 0 9 0 7 . . . 6 5 9 1 1 1 2 2 1 2 2 0 . . . 0 9 3 1 1 1 2 1 2 1 8 1 . . . 5 8 1 1 1 1 2 1 2 0 2 1 . . . 7 9 3 1 1 1 2 2 1 1 1 2 . . . 5 2 4 1 1 1 1 0 2 9 8 0 . . . 5 1 3 1 1 1 2 0 2 1 5 2 . . . 3 3 4 1 1 1 2 1 2 2 0 2 . . . 0 9 1 1 1 2 0 2 2 9 3 . . . 2 1 2 1 1 1 2 2 1 1 2 3 . . . 9 5 7 Mining Me S M t t a o e l, t n a e s l t a o m n n i d e n , i e n a a g n r d th e a m rt i h n era m ls i nerals... 1. . . 2 7 5 6 5 1 1 1 9 0 2 7 8 0 . . . 3 9 1 1 1 1 2 0 2 4 4 . . . 6 7 4 1 1 1 1 2 0 3 8 4 . . . 7 1 0 1 1 1 1 0 3 6 6 0 . . . 4 9 3 1 1 1 1 0 3 7 7 1 . . . 6 9 8 1 1 1 1 2 0 7 7 9 . . . 0 8 4 1 1 1 1 2 0 6 8 8 . . . 8 8 5 1 1 1 1 0 2 6 8 7 . . . 2 8 0 1 1 1 1 0 2 1 1 5 . . . 8 6 2 1 1 1 1 0 2 6 9 8 . . . 9 1 4 1 1 1 2 1 3 0 3 1 . . . 6 1 4 1 1 1 2 0 3 0 9 6 . . . 4 5 6 1 1 1 3 0 2 8 9 0 . . . 3 2 9 Co C O al o i , l a o l a i n l, d a g n a d s g e a x s t raction 5 4 . . . 1 4 6 1 2 9 1 1 1 0 0 1 9 0 4 . . . 2 2 0 1 1 1 0 0 1 9 2 0 . . . 0 6 0 1 1 9 0 0 6 8 8 . . . 8 2 6 1 1 9 0 0 6 9 7 . . . 5 1 7 1 1 1 0 0 0 8 9 3 . . . 4 1 9 1 1 1 0 0 0 7 5 7 . . . 6 7 9 1 1 9 0 0 9 7 8 . . . 9 1 3 1 1 1 0 0 0 0 8 7 . . . 9 3 4 1 1 1 0 0 0 8 9 8 . . . 9 0 1 1 1 1 0 0 0 9 9 9 . . . 5 5 0 1 1 1 0 0 1 9 4 0 . . . 2 0 0 1 1 1 0 0 0 9 9 9 . . . 5 8 7 1 1 1 0 0 0 8 9 3 . . . 9 8 0 Utilities Electric 3.91 149.4 155.2 159.1 158.3 157.4 156.8 159.7 164.0 163.8 165.1 165.3 Gas 1.17 123.4 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. • JANUARY 1974 MARKET GROUPINGS (1967 = 100) pp pp 1199 oo rr 66 oo rr 77 -- -- aa 11 vv 99 ee 77 rr 22 -- 1972 1973 GGrroouuppiinngg ttiioonn aaggee Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index 100.0 115.2 120.4 117.3 118.9 123.6 124.6 124.5 125.6 128.9 122.4 126.7 131.0 130.6 127.6 Products, total 62.21 113.8 118.5 114.2 116.6 120.6 121.8 121.2 122.4 127.3 121.6 125.1 130.6 129.2 125.2 Final products 48.95 111.9 116.1 112.0 115.3 119.1 120.0 118.9 120.0 125.1 118.9 122.2 128.6 127.2 123.1 Consumer goods 28.53 123.6 126.8 120.2 125.3 129.2 130.8 129.2 130.3 136.4 128.6 134.1 141.8 139.4 133.1 Equipment 20.42 95.5 101.1 100.5 101.4 104.9 105.0 104.6 105.5 109.2 105.2 105.7 110.3 110.2 109.2 Intermediate products 13.26 121.1 127.5 122.1 121.2 126.1 128.5 129.6 131.4 135.2 131.8 135.5 137.6 136.1 132.8 Materials 37.9 117.4 123.5 122.5 122.8 128.6 129.2 129.9 130.9 131.4 123.7 129.2 131.8 132.9 131.7 Consumer goods 7.86 125.7 134.8 125.1 133.3 140.6 143.5 141.3 142.7 147.5 129.2 126.9 146.2 150.6 144.3 Automotive products 2.84 127.7 141.9 123.9 138.5 149.1 151.5 147.6 147.4 154.4 124.3 100.5 136.6 146.1 140.5 Autos 1.87 112.7 132.9 109.8 134.8 144.6 143.9 135.8 138.2 148.5 108.5 69.1 121.9 140.3 135.4 Auto parts and allied goods .97 156.5 159.0 150.9 145.7 157.7 166.0 170.2 165.0 165.8 154.5 160.8 164.9 157.2 150.5 Home goods 5.02 124.5 130.8 125.8 130.3 135.8 138.9 137.7 140.1 143.6 132.0 141.8 151.7 153.1 146.6 Appliances, TV, and home audio. 1.41 124.6 129.1 122.0 139.7 142.6 149.0 148.2 148.5 146.8 130.1 135.0 161.6 171.9 154.7 Appliances and A/C .92 144.5 143.5 134.6 153.7 157.0 166.2 165.6 166.1 162.7 150.5 134.1 168.7 176.6 115555..33 TV and home audio .49 87.5 102.2 98.4 Carpeting and furniture 1.08 132.6 140.8 140.0 141.0 150.2 149.1 146.1 146.3 151.1 i34.4 156.5 159.1 156.2 156.9 Misc. home goods 2.53 121.0 127.6 121.9 120.4 125.9 129.0 128.2 132.7 138.6 132.1 139.3 143.0 141.2 137.6 Nondurable consumer goods 20.67 122.8 123.7 118.4 122.2 124.9 126.0 124.6 125.6 132.2 128.4 136.8 140.1 135.1 128.7 Clothing 4.32 109.7 112.5 103.0 105.9 116.6 120.0 119.3 115.3 122.4 104.3 121.7 124.3 121.1 Consumer staples 16.34 126.2 126.7 122.5 126.5 127.1 127.6 126.0 128.3 134.8 134.8 140.8 144.3 138.8 132.3 Consumer foods and tobacco.... 8.37 117.5 119.3 111.6 113.8 117.0 118.4 117.8 120.7 123.8 120.2 128.0 133.2 130.1 124.7 Nonfood staples 7.98 135.3 134.4 134.0 139.9 137.8 137.2 134.7 136.2 146.3 150.1 154.3 156.0 147.9 140.2 Consumer chemical products.. 2.64 144.6 145.0 133.8 139.9 14Q.2 147.3 146.9 154.0 164.2 157.6 157.5 166.4 164.9 154.1 Consumer paper products 1.91 114.8 118.5 113.2 112.4 116.2 115.5 117.8 117.0 125.1 123.1 133.2 132.1 126.5 122.7 Consumer fuel and lighting... 3.43 139.5 135.1 145.8 155.3 148.0 141.6 134.6 133.2 144.4 159.5 163.6 161.4 146.8 139.2 Residential utilities 2.25 147.8 139.4 154.5 168.5 160.1 151.8 140.4 135.5 148.7 177.3 178.9 177.5 154.9 144.3 Equipment Business equipment 12.74 106.1 113.7 112.0 114.4 119.6 119.8 119.7 121.1 126.4 120.3 121.9 128.6 128.3 126.4 Industrial equipment 6.77 102.5 111.2 110.6 111.6 i 16.4 116.8 116.8 117.9 122.6 117.4 121.0 126.1 126.0 123.9 Building and mining equip 1.45 104.8 113.0 114.3 112.0 118.6 117.2 115.7 115.6 120.2 115.9 119.3 128.3 126.7 126.2 Manufacturing equipment 3.85 92.7 102.3 101.7 103.4 108.9 109.6 109.3 111.4 116.2 108.8 115.7 118.6 118.5 117.0 Power equipment. 1.47 125.6 132.9 130.2 132.7 133.9 135.3 137.3 137.1 141.8 141.3 136.7 143.7 145.1 139.5 Commercial, transit, farm eq 5.97 110.3 116.5 113.6 117.6 123.3 123.2 122.9 124.7 130.7 123.5 122.9 131.5 130.8 129.3 Commercial equipment 3.30 118.4 125.2 122.3 123.0 127.8 126.9 129.1 131.6 140.1 139.3 140.4 144.7 140.8 139.4 Transit equipment. 2.00 96.8 104.6 99.2 108.1 114.8 114.9 110.8 112.0 113.8 102.6 96.8 108.0 U5.6 114.0 Farm equipment .67 110.5 109.0 113.2 118.9 126.2 129.7 128.2 128.6 134.9 108.2 113.9 136.3 126.5 125.3 Defense and space equipment 7.68 77.9 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.7 80.0 78.8 79.9 80.1 80.6 Military products 5.15 80.1 81.7 82.4 81.2 81.9 81.8 80.8 80.3 81.3 80.5 78.4 79.0 79.1 78.6 Intermediate products Construction products 5.93 120.8 128.3 121.9 120.5 128.0 131.9 135.0 136.4 140.7 131.6 136.0 139.8 140.1 137.6 Misc. intermediate products 7.34 121.3 126.9 122.5 121.7 124.5 125.7 125.2 127.4 130.7 131.9 135.0 135.9 132.9 129.0 Materials 20.91 113.5 121.0 121.8 121.6 128.8 130.7 131.2 132.2 132.8 124.4 128.9 133.4 133.7 133.0 Consumer durable parts 4.75 113.8 122.1 126.8 126.8 129.3 129.4 130.0 128.8 130.5 120.4 122.9 128.7 130.1 129.6 Equipment parts. 5.41 99.3 108.7 111.0 110.8 114.7 117.5 117.4 118.7 120.7 116.3 119.4 123.3 122.3 123.9 Durable materials n.e.c 10.75 120.6 126.7 125.1 124.7 135.7 137.9 138.7 140.6 139.9 130.3 136.3 140.6 141.0 139.0 Nondurable goods materials 13.99 122.5 127.1 123.9 124.5 129.2 128.2 129.4 130.7 130.8 123.4 130.1 130.4 132.9 131.2 Textile, paper, and chem. mat 8.58 129.2 135.6 131.8 133.7 139.6 139.0 140.9 142.2 142.2 132.1 141.3 141.8 144.5 143.6 Nondurable materials n.e.c 5.41 111.9 113.7 111.4 110.0 112.8 111.2 111.1 112.6 112.7 109.7 112.4 112.4 114.4 111.6 Fuel and power, industrial 2.89 120.9 123.6 120.3 132.6 124.5 123.2 122.3 122.7 123.9 119.9 126.6 127.3 127.1 128.4 Supplementary groups Home goods and clothing 9.34 117.7 122.3 115.3 119.0 126.9 130.2 129.2 128.6 133.8 119.2 132.5 139.1 138.2 132.0 Containers 1.82 129.7 133.3 125.0 129.4 140.5 142.6 139.4 140.9 145.8 131.2 144.6 142.9 149.8 141.1 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 100) p 19 r 6 o 7 - 1972 1972 1973 Grouping p ti o o r n - age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Manufacturing, total 88.55 114.0 120.0 116.3 117.6 123.2 124.6 124.7 125.8 128.9 121.1 125.3 130.2 130.3 127.9 Durable 52.33 108.4 115.3 113.3 114.9 121.0 122.5 122.4 123.2 125.8 117.9 119.3 125.9 126.6 124.8 Nondurable 36.22 122.1 126.7 120.6 121.5 126.3 127.7 128.0 129.5 133.3 125.6 133.9 136.4 135.8 132.2 Mining and utilities 11.45 124.1 123.8 125.2 128.6 127.5 125.0 122.7 123.6 128.2 133.0 137.2 137.1 130.8 126.3 Mining 6.37 108.8 110.6 109.2 107.0 109.2 107.6 108.5 110.7 110.9 108.3 112.3 112.5 112.2 110.8 Utilities 5.08 143.4 140.5 145.4 155.7 150.6 146.8 140.5 139.9 149.9 164.1 168.4 168.0 154.3 145.7 Durable manufactures Primary and fabricated metals 12.55 113.9 120.3 120.5 120.4 130.0 132.1 131.7 131.2 130.5 121.6 125.5 131.3 131.6 130.9 Primary metals 6.61 113.1 117.1 118.9 118.5 131.3 133.8 133.9 131.7 127.7 116.4 121.6 129.5 128.1 127.4 Iron and steel, subtotal 4.23 107.1 110.9 114.2 112.3 125.8 128.3 128.5 125.8 121.1 112.7 117.1 125.6 118.4 119.9 Fabricated metal products 5.94 114.8 123.9 122.3 122.6 128.5 130.1 129.3 130.7 133.7 127.5 129.8 133.3 135.5 134.8 Machinery and allied goods 32.44 103.5 110.6 109.0 111.8 116.0 117.1 116.7 117.9 121.7 114.1 113.0 121.2 122.2 120.3 Machinery 17.39 107.5 115.0 114.6 116.9 121.8 123.3 123.5 124.9 129.4 122.2 125.8 133.0 132.1 129.9 Nonelectrical machinery 9.17 105.7 113.1 112.5 114.0 121.2 122.2 122.3 124.0 129.6 122.9 126.3 132.2 129.3 127.9 Electrical machinery 8.22 109.6 117.1 117.0 120.2 122.4 124.5 124.8 125.9 129.2 121.4 125.2 134.0 135.2 132.1 Transportation equipment 9.29 99.0 108.0 103.2 108.7 113.5 114.0 112.8 113.4 116.3 104.0 94.0 108.3 113.7 112.2 Motor vehicles and parts 4.56 123.1 138.3 129.2 142.6 148.6 147.3 144.9 145.6 151.2 129.0 108.5 135.2 145.8 142.6 Aerospace and misc. trans, eq. .. 4.73 75.8 78.9 78.1 76.0 79.6 82.0 81.8 82.4 82.7 79.8 80.1 82.4 82.7 83.0 Instruments 2.07 120.2 126.5 125.3 126.3 128.1 131.5 130.5 137.5 143.1 140.8 143.9 147.4 145.4 143.4 Ordnance, private and Govt 3.69 86.0 87.4 88.2 87.5 87.9 87.8 86.4 85.6 87.1 86.0 82.8 83.4 83.3 82.4 Lumber, clay, and glass 4.44 120.0 124.5 115.4 115.3 123.2 127.2 130.9 132.8 135.1 128.9 134.9 134.5 136.1 130.7 Lumber and products 1.65 122.4 124.8 111.9 115.6 128.4 130.5 131.3 128.6 132.3 123.3 132.8 134.4 133.1 130.5 Clay, glass, and stone products 2.79 118.6 124.3 117.5 115.1 120.1 125.3 130.7 135.3 136.8 132.3 136.2 134.6 137.8 130.9 Furniture and miscellaneous 2.90 122.7 131.3 127.6 126.1 134.3 133.9 132.4 132.5 137.2 127.6 138.9 142.9 140.5 140.4 Furniture and fixtures 1.38 113.5 122.1 121.5 121.6 128.7 127.3 124.2 123.0 125.7 114.5 128.7 131.7 130.1 132.3 Miscellaneous manufactures 1.52 131.1 139.6 133.2 130.2 139.4 139.9 139.9 141.2 147.6 139.5 148.2 153.1 150.0 147.8 Nondurable manufactures Textiles, apparel, and leather 6.90 108.1 112.0 103.9 106.4 115.4 118.2 116.9 113.8 120.4 102.0 120.0 121.7 119.5 115.2 Textile mill products 2.69 117.4 125.1 117.0 117.8 126.1 129.6 128.7 129.1 135.0 112.1 133.6 133.2 131.9 112288..77 Apparel products 3.33 105.7 108.2 98.7 103.9 113.7 116.3 115.6 110.0 117.4 102.6 118.1 121.7 118.0 Leather and products .88 88.9 86.5 83.3 80.6 88.7 89.9 85.8 81.3 87.1 68.7 85.5 86.7 87.0 82! 9 Paper and printing 7.92 116.1 122.3 113.8 113.2 118.7 120.4 121.4 122.8 125.7 121.8 128.4 127.1 127.9 124.0 Paper and products 3.18 128.2 133.7 123.6 130.2 137.5 138.9 137.6 138.5 138.4 127.6 136.7 133.0 142.3 137.7 Printing and publishing 4.74 107.9 114.7 107.3 101.7 106.0 107.9 110.6 112.2 117.2 117.9 122.8 123.1 118.2 114.8 Chemicals, petroleum, and rubber 11.92 137.8 143.0 140.3 141.1 144.8 145.6 147.6 150.6 153.8 147.1 151.3 154.8 155.2 152.1 Chemicals and products 7.86 139.6 143.2 139.5 140.5 143.8 145.0 148.8 152.2 155.5 150.3 152.6 157.0 156.3 152.4 Petroleum products 1.80 120.6 124.3 125.2 123.9 120.9 119.5 121.3 127.0 132.8 132.8 133.2 130.4 130.9 128.9 Rubber and plastics products 2.26 145.5 157.0 155.0 156.8 167.3 168.3 164.4 164.0 164.6 147.4 161.2 166.5 170.9 169.3 Foods and tobacco 9.48 117.6 120.5 113.8 114.9 117.4 118.1 117.1 120.0 123.1 119.2 .126.6 131.7 129.9 126.4 Foods 8.81 118.6 121.0 115.9 115.4 117.7 118.1 117.8 120.7 123.7 121.1 127.2 132.9 130.5 112277..33 Tobacco products ..6677 110033..77 111133..44 8866..00 110077..77 111133..55 111188..33 110088..00 111100..11 111155..66 9933..99 111188..55 111155..99 112222..55 Mining Metal, stone, and earth minerals 1.26 107.3 110.8 108.7 103.4 105.7 109.0 116.4 125.7 125.3 119.0 125.5 126.2 125.3 120.3 Metal mining .51 120.9 115.0 115.0 114.0 120.6 118.7 127.2 143.4 144.0 133.9 139.7 143.4 138.7 127.4 Stone and earth minerals .75 98.1 107.9 104.4 96.2 95.5 102.4 109.0 113.6 112.6 108.9 115.8 114.4 116.2 115.5 Coal, oil, and gas 5.11 109.2 110.5 109.3 107.9 110.1 107.2 106.5 107.0 107.3 105.6 109.0 109.1 109.0 108.5 Coal .69 104.2 104.9 98.0 98.0 104.2 104.3 101.7 102.9 103.2 89.3 110.8 112.7 110.1 106.4 Oil and gas extraction 4.42 110.0 111.4 111. 1 109.5 111.0 107.6 107.2 107.7 108.0 108.1 108.7 108.5 108.8 108.9 Utilities Electric 3.91 149.4 145.3 151.6 165.1 158.5 153.8 145.4 144.6 157.5 175.9 181.5 118811..00 116633..00 115511..88 1.17 123.4 i 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 • JANUARY 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices 4 facturing 2 In- CCaa-- Market dustry ppaacciittyy NNoonnaagg-uuttiilliizzaa-- CCoonn-- rriiccuull-- Products ttiioonn ssttrruucc-- ttuurraall TToottaall PPeerriioodd TToottaall Total Final Inter- Mate- f M ac a t n u u r - - ii oo == nn (( uu 11 tt mm 11 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 —— -- ii 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 iill 33 s C um on e - r m W c s o o h a m d l o e i l - t e y - Con- mediate rials ing Total sumer Equipgoods ment 1954. 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955, 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959, 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962, 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963, 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1 1 9 9 6 6 8 9 . , 1 1 1 0 0 5 . . 7 7 1 1 0 05 9 . . 8 7 1 10 0 5 9 . . 8 0 1 10 1 6 1 . . 6 1 1 1 0 0 6 4 . . 1 7 1 10 1 5 2 . . 7 0 1 10 1 5 2 . . 7 4 1 11 0 0 5 . . 5 7 8 8 7 6 . . 7 5 1 1 1 2 3 3. . 7 2 1 1 0 0 3 6 . . 1 7 1 1 0 0 1 3 . . 4 2 1 1 0 1 8 6 . . 3 6 1 1 0 1 9 4 1 10 0 9 4 . . 8 2 1 1 0 0 2 6 . . 5 5 1970 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 1971, 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 1972 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1972-— D N e o c v 1 12 2 1 0 . . 1 2 1 1 1 1 9 8 . . 1 6 1 1 1 1 6 6 . . 8 3 1 1 2 2 7 7 . . 7 4 1 1 0 0 1 0 . . 5 7 1 1 2 2 7 7 . . 7 6 1 12 2 2 4 . . 8 4 1 11 2 9 0 . . 5 4 1> S3 Ofitl .J^ 1 1 6 7 3 7 . . 0 0 1 11 1 2 2 . . 1 4 9 99 9 . . 1 6 1 1 3 3 9 9 . . 3 0 1 1 5 4 1 8 1 1 2 2 7 6. . 9 3 1 1 2 2 2 0. . 7 9 1973-—Jan 122.2 120.7 118.6 129.8 102.9 128.4 124.5 121.4 ] 181.0 112.7 99.9 139.8 156 127.7 124.5 Feb 123.4 121.5 119.3 130.2 104.1 129.5 126.7 122.7 I 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 j 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr 124.1 122.0 120.0 130.9 104.7 129.3 127.7 123.8 177.0 114.0 101.5 144.8 157 130.7 130.7 May 124.8 122.9 120.8 131.8 105.7 130.5 128.3 124.9 1 '83.3 173.0 114.4 101.7 144.9 159 131.5 133.4 June 125.6 123.7 121.3 131.9 106.6 132.0 129.0 125.6 j 183.0 114.7 '102.1 145.3 157 132.4 136.7 July 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 175.0 114.6 101.8 146.3 163 132.7 134.9 A Se u p g t 1 1 2 2 6 6 . . 5 8 1 1 2 2 3 4 . . 7 3 r1 1 2 2 2 1 . . 4 4 '1 1 3 3 2 1 . . 3 2 '1 1 0 0 8 7 . . 5 6 1 1 3 3 2 1 . . 1 0 1 1 3 3 0 1 . . 9 3 r1 1 2 2 6 6 . . 3 1 j I 83.3 2 1 0 8 6 2 . . 0 0 1 1 1 1 5 5 . . 0 3 1 1 0 0 2 2 . . 1 1 1 1 4 4 6 9 . . 7 8 1 1 6 6 2 3 1 1 3 3 5 5 . . 1 5 1 1 4 4 2 0 . . 7 2 Oct 127.0 '124.4 122.8 '132.8 '108.8 '130.5 '131.5 '126.3 191.0 '116.0 102.9 '151.7 165 136.6 139.5 Nov '127.3 r124.9 r123.2 133.2 '109.3 '131.2 '131.3 126.9 82.6 194.0 '116.4 '103.2 '155.7 '164 137.6 141.8 Dec.f 126.6 123.9 122.0 130.7 109.9 131.0 131.0 127.1 111166..44 110033..44 115544..11 116622 114455..33 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. 5 Figure is for 4th quarter 1972- Employment and payrolls: Based on Bureau of Labor Statistics data; NOTE.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Capacity utilization: Based on data from Federal Reserve, McGraw- Prices: Bureau of Labor Statistics data. Hill Economics Department, and Dept. of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1973 Type of ownership and 1971 1972 type of construction Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total construction 1 80,188 91,183 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 9,228 10,303 8,151 8,983 By type of ownership: Public 23,927 24,084 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 i 56,261 67,098 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 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 4,224 4,233 3,638 3,673 Nonresidential building 25,574 27,082 2,384 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 3,241 2,719 2,758 Nonbuilding 19,282 18,982 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 2,828 1,794 2,552 Private housing units authorized. 1,925 2,399 2,318 2,226 2,399 2,233 2,209 2,129 1,939 1,838 2,030 1,780 1,750 rl ,596 1,316 (In thousands, S.A., A.R.) 1 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

JANUARY 1974 • CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a - l Total Indus- Bu C il o d m in - gs Other Other Total M ta i r l y i- H w ig ay h - d C v e m o a v n t & e e i s l n o o e t n r p - - Other 2 trial mercial build- 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.r 135,748 102,046 59,357 42,689 5,292 15,001 6,002 16,394 33,702 1,221 2,446 Feb.1 136,416 104,128 61,487 42,641 5,180 14,873 6,145 16,443 32,288 1,422 1,989 Mar. 137,467 103.838 60,747 43,091 5,479 15,071 6,179 16,362 33,629 1,303 2,825 Apr.1 133,794 101,234 58,047 43,187 5,287 15,474 6,282 16,144 32,560 1,158 2,062 May1 134,139 101,790 57,453 44,337 5,338 16,118 6,252 16,629 32,349 1,277 2,569 June1 133,775 102,803 58,178 44,625 5,928 15,704 6.383 16,610 30,972 1,162 2,235 July 136,863 105,368 59,439 45,929 6,340 16,110 6,492 16,987 31,495 1,341 1,977 Aug. 136,867 105,815 59,829 45,986 6,687 15,800 6,122 17,377 31,052 1,048 2,196 Sept. 136,863 103,689 58,966 44,723 6,324 15,111 5,742 17,546 33,174 962 Oct.r 134,856 102,665 56,268 46,397 6,573 15,561 5,883 18,380 32,191 1,032 Nov. 134,019 101,764 54,570 47,194 6,826 15,555 5,907 18,906 32,255 1,027 1 Includes religious, educational, hospital, institutional, and other build- 4 Beginning 1963, reflects inclusion of new series under "Public" (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in "Other." 3 Beginning July 1962, reflects inclusion of new series affecting most NOTE.—Census Bureau data; monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R.) Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship- Region Type of structure ments (N.S.A.) Total North- North 2- to 4- 5- or east Central South West family family more- Total Private Public Total FHA VA family 196 3 1,603 261 328 591 430 1,012 589 1,635 1,603 292 221 71 151 196 4 1,529 254 340 578 357 970 108 450 1,561 1,529 264 205 59 191 196 5 1,473 270 362 575 266 964 87 422 1,510 1,473 246 197 49 216 196 6 1,165 206 288 472 198 778 61 325 1,196 1,165 195 158 37 217 196 7 1,292 215 337 520 220 844 72 376 1,322 1,292 232 180 53 240 196 8 1,508 227 369 618 294 900 81 527 1,546 1,508 283 227 56 318 196 9 1,467 206 349 588 324 814 85 571 1,500 1,467 284 233 51 413 197 0 1,434 218 294 612 310 813 85 536 1,469 1,434 482 421 61 401 197 1 2,052 264 434 869 482 1,151 120 781 2,084 2,052 621 528 93 497 197 2 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 475 371 104 576 1972—Nov. 2,395 353 400 1,106 536 1,324 134 937 187 186 29 21 50 Dec.. 2,369 486 330 1,080 473 1,207 128 1,034 153 151 48 42 38 1973—Jan.. 2,497 348 599 1,086 464 1,450 163 884 147 147 19 12 41 Feb.. 2,456 366 571 1,087 432 1,372 123 961 140 138 21 14 43 Mar. 2,260 297 415 1,142 406 1,245 123 892 201 200 27 19 57 Apr., 2,123 292 387 890 554 1,202 131 790 205 205 27 18 62 May. 2,413 267 595 999 552 1,271 162 980 234 234 29 18 57 June. 2,128 370 474 837 447 1.124 129 875 203 203 25 17 57 July. 2,191 225 487 1,063 416 1,247 151 793 203 203 20 12 50 Aug. 2,094 287 481 841 485 1.125 111 858 200 197 23 14 54 Sept. 1,804 283 410 748 363 982 98 724 149 148 15 10 45 Oct.r 1,636 250 384 671 331 951 71 614 149 146 46 Nov. 1,698 249 315 772 362 945 83 670 133 131 NOTE.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspecfor G6vt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac- Digitized for FRASER turers Assn. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT • JANUARY 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Unemployi 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 llaa (( bb NN NN oo .. rr oo SS tt .. ff AA ii oo nn rr .. )) cc ee T ( l f a S o o b r . t A o c a e r . l ) Total E In m n p o l n o a y g e r d i 1 - In U pl n o e y m ed - (pe m r S r a . e A t c n e e . 2 t ) n t; Total cultural agriculture industries 1 1 1 1 1 1 9 9 9 9 9 96 7 6 6 7 7 7 9 2 8 0 1 1 1 1 1 1 1 3 3 3 4 4 4 7 3 5 0 2 5 , , , , , , 8 3 5 7 1 5 4 1 6 7 8 9 1 9 2 5 2 6 5 5 5 5 5 5 3 5 2 3 6 4 , , , , , , 2 5 6 7 6 2 9 2 8 6 0 8 1 7 5 6 2 0 8 8 8 8 8 8 6 5 2 4 0 8 , , , , , , 9 9 9 2 2 7 9 2 0 7 4 9 1 9 3 2 0 3 7 7 8 8 8 8 8 7 2 4 6 0 , , , , , , 7 7 3 1 7 5 1 3 4 1 3 4 5 7 7 3 4 2 7 7 7 7 7 8 5 7 8 9 4 1 , , , , , , 6 9 1 3 9 7 2 2 2 7 0 0 7 0 0 2 2 2 7 7 7 7 7 7 5 0 2 4 5 8 , , , , , , 1 5 1 2 7 2 6 2 0 9 3 3 5 7 3 6 2 0 3 3 3 3 3 3 , , , , , , 8 3 6 4 4 8 1 8 0 6 4 7 7 7 6 2 4 2 2 4 4 2 4 2 , , , , , , 0 8 8 9 9 8 8 1 7 9 4 3 8 7 5 3 0 2 4 5 5 3 3 3 . . . . . . 9 9 6 5 6 8 1972—Dec. 146,923 57,486 89,707 87,267 82,780 79,130 3,650 4,487 5.1 1973— A J N D M M J S O F J A u u a e e p e o u c a a n p n b l r c t v g y r y e t . . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 4 4 4 4 4 4 4 4 4 4 4 4 7 7 7 8 8 7 8 8 7 9 9 9 , , , , , , , , , , , , 1 7 5 5 3 1 3 7 2 0 9 4 2 6 2 4 1 6 4 8 0 0 4 3 9 5 9 1 3 1 7 2 8 1 0 6 5 5 5 5 5 5 5 5 5 5 5 5 7 9 6 8 7 5 8 7 7 5 7 6 , , , , , , , , , , , , 9 1 0 2 4 4 8 0 1 4 0 9 0 2 3 0 1 5 3 8 5 5 5 4 6 9 8 8 7 6 3 4 0 3 5 0 9 9 9 9 9 9 9 9 9 9 8 8 1 0 0 0 1 0 2 2 2 9 1 9 , , , , , , , , , , , , 9 2 7 7 3 1 9 6 2 0 3 6 6 2 2 4 3 0 2 5 3 5 0 9 1 5 1 7 9 0 9 8 5 3 3 4 8 9 8 8 8 8 8 8 8 8 8 8 0 6 8 8 8 8 8 7 9 9 8 9 , , , , , , , , , , , , 9 6 0 2 4 9 5 4 3 7 8 9 2 5 2 6 0 6 0 3 5 6 1 5 1 1 1 8 5 9 3 2 0 4 0 2 8 8 8 8 8 8 8 8 8 8 8 8 4 3 4 2 5 5 5 5 4 4 3 3 , , , , , , , , , , , , 9 5 6 1 5 1 6 8 6 0 4 6 1 5 2 8 2 7 8 8 9 2 3 1 7 5 7 6 7 4 9 8 5 4 4 4 7 7 8 8 8 8 8 8 8 8 8 8 9 1 0 9 0 1 1 0 0 2 2 1 , , , , , , , , , , , , 9 2 6 8 0 7 7 0 7 4 2 0 9 7 5 0 5 9 4 0 0 5 2 5 1 1 8 6 7 8 9 3 9 4 4 2 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 3 5 7 4 4 4 5 2 6 3 4 4 1 0 2 7 0 4 1 7 3 7 2 8 1 1 8 1 3 6 3 5 6 0 4 0 4 4 4 4 4 4 4 4 4 4 4 4 , , , , , , , , , , , , 2 3 4 2 1 0 2 2 4 3 3 4 8 1 5 6 3 9 7 3 6 7 6 4 1 7 8 9 6 5 6 3 4 9 6 2 4 4 4 4 5 4 4 4 5 5 5 5 . . . . . . . . . . . . 8 9 5 7 8 8 1 0 7 0 0 0 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is NOTE.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g a c- Mining c C o o n t n i s o t t r r n a u c c t - T t l i i o r c a n n u & s t p il o i p t r u i t e b a s - - Trade Finance Service G m ov e e n r t n - 1 1 1 1 1 1 9 9 9 9 9 9 7 6 7 6 6 7 9 7 0 2 8 1 6 7 7 6 7 7 5 0 0 7 0 2 , , , , , , 8 9 6 5 2 7 5 1 4 9 8 6 7 5 5 3 4 4 2 1 1 1 1 1 0 9 9 8 9 8 , , , , , , 1 7 4 3 5 9 8 6 4 4 2 3 1 7 7 9 9 3 6 6 6 6 6 6 1 1 0 0 2 0 9 3 6 2 3 7 3 3 3 3 3 3 , , , , , , 3 2 4 4 2 5 8 1 0 3 2 8 1 1 8 5 1 5 4 4 4 4 4 4 , , , , , , 2 4 4 4 4 3 6 2 9 9 4 1 1 9 5 3 2 0 1 1 1 1 1 1 4 4 3 4 5 5 , , , , , , 6 6 0 9 1 6 3 0 4 1 8 8 9 6 2 4 4 3 3 3 3 3 3 3 , , , , , , 2 5 7 6 3 9 2 9 6 8 2 8 5 6 4 8 7 2 1 1 1 1 1 1 1 0 0 1 1 2 , , , , , , 0 2 6 6 3 6 9 2 6 2 0 1 9 9 9 3 9 2 - 1 1 1 1 1 1 1 2 1 2 2 3 , , , , , , 8 5 3 2 8 2 4 3 9 0 5 9 5 5 8 2 8 0 SEASONALLY ADJUSTED 1972—De c 74,002 19,402 607 3,459 4,558 15,946 3,991 12,537 13,502 1973—J A J J A D M S N F M O a u u e e p u o e c a a n p l n b t c v r g y r y t e . . ? 2 3 7 7 7 7 7 7 7 7 7 7 7 7 5 5 4 5 5 4 5 6 6 4 5 6 , , , , , , , , , , , , 7 9 4 5 1 3 3 7 6 2 6 9 1 6 2 9 2 0 6 4 7 4 5 1 5 1 1 3 6 5 3 7 7 2 2 4 2 2 2 1 1 1 1 1 1 1 1 1 0 0 0 9 9 9 9 9 9 9 9 9 , , , , , , , , , , , , 1 0 0 8 8 5 8 4 8 6 7 7 1 8 1 6 8 0 5 6 4 8 2 8 3 7 1 6 4 6 3 3 2 6 7 2 6 6 6 6 6 6 6 6 6 6 6 6 3 4 4 3 3 0 2 1 0 1 1 3 1 3 6 9 3 8 9 2 8 4 0 0 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 7 5 7 7 6 4 6 6 5 6 6 6 5 7 0 0 9 9 0 8 9 7 2 5 1 3 7 0 8 4 4 0 4 6 0 4 4 4 4 4 4 4 4 4 4 4 4 4 ; , , , , , . , , . , , 6 5 6 6 6 5 5 5 5 5 5 6 5 9 3 1 9 2 9 9 8 8 7 7 1 1 7 3 7 9 8 3 0 0 4 1 1 1 1 1 1 1 1 1 1 1 1 1 6 6 6 6 6 6 6 6 6 6 6 6 , , , , , , , , , , , , 3 5 4 4 2 2 0 1 2 1 3 2 8 2 6 5 6 9 1 6 1 1 5 5 8 9 5 6 4 3 3 7 4 2 6 2 4 4 4 4 4 4 4 4 4 4 4 3 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 9 9 3 8 9 7 4 4 9 6 1 2 4 1 3 8 9 8 8 9 5 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 2 3 2 2 2 3 2 2 2 , , , , , , , , , , , , 6 8 9 1 6 7 1 0 7 9 8 7 9 2 2 8 4 2 2 1 0 4 2 7 5 7 6 2 6 6 4 6 8 1 0 2 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 6 6 6 5 4 6 7 8 6 8 5 6 3 5 3 7 1 4 5 5 1 1 7 4 7 9 3 8 0 6 6 0 4 0 4 2 NOT SEASONALLY ADJUSTED 1972—De c 74,778 19,423 603 3,373 4.558 16,669 3,971 12,474 13,707 1973— D S O N J A A J J M F M u u e a O e e p u c p a a l n n b c t V r g y y r t . e P . P 7 7 7 7 7 7 7 7 7 7 7 7 5 7 6 7 6 3 4 6 4 3 5 5 , , , , , , , , , , , , 4 2 2 8 9 3 3 2 7 3 4 6 4 3 8 6 1 8 5 0 4 2 8 0 9 8 4 1 4 4 5 8 3 4 6 4 2 2 2 2 2 2 1 1 1 1 1 1 0 0 0 0 0 0 9 9 9 9 9 9 , , , , , , , , , , , , 1 1 1 1 0 7 0 5 5 4 6 2 6 3 1 3 9 2 2 0 8 6 7 2 6 2 4 9 1 8 2 6 7 9 8 0 6 6 6 5 6 6 6 6 6 6 5 5 4 0 4 4 4 9 0 4 4 4 9 9 1 8 8 2 4 8 3 0 2 2 8 8 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 9 8 9 8 6 9 6 9 4 2 1 1 8 1 3 1 4 5 2 3 8 4 5 9 1 8 6 7 4 9 3 4 4 5 2 4 4 4 4 4 4 4 4 4 4 4 4 4 , . , , , , , , , , , , 6 6 5 6 6 6 6 5 6 5 5 5 7 6 5 5 3 5 9 5 8 3 0 1 1 1 9 9 3 6 3 3 0 9 7 0 1 1 1 1 1 1 1 1 1 1 1 1 6 6 6 5 6 6 7 6 6 5 6 5 , , , , , , , , , , , , 2 3 3 2 7 0 1 7 5 2 8 8 3 6 6 7 8 7 1 8 7 0 8 6 5 7 9 9 3 5 6 2 0 8 5 0 4 4 4 4 4 4 4 4 4 4 3 3 , , , . , . , , , , , , 1 0 0 0 0 0 1 0 0 0 9 9 2 7 7 1 7 1 8 8 4 0 7 5 1 9 3 7 9 6 2 9 0 0 8 9 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 3 3 2 3 3 2 2 2 2 , , , , , , , , , , , , 0 9 0 9 9 7 0 0 5 8 6 4 6 8 9 7 8 9 0 5 6 2 3 0 1 2 6 1 2 9 9 7 5 7 0 6 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 2 4 4 3 3 3 3 3 3 , , , , , , , , , , , , 0 4 9 7 0 8 7 0 7 8 7 5 6 1 7 3 5 6 4 1 9 1 9 7 7 9 1 1 5 6 3 2 3 5 6 1 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

JANUARY 1974 • EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted 1 IIInnnddduuussstttrrryyy gggrrrooouuuppp 1972 1973 1972 1973 Dec. Oct. NOV. Dec.? Dec. Oct. NOV.P Dec.*5 14,256 14,720 14,767 14,799 14,282 14,866 14,879 14,826 Durable goods 8,266 8,674 8,708 8,717 8,290 8,725 8,760 8,743 Ordnance and accessories 102 97 93 94 103 97 95 96 Lumber and wood products 538 546 546 549 529 553 546 540 421 434 434 430 426 441 441 435 Stone, clay, and glass products 538 562 563 567 533 570 567 561 Primary metal industries 1,033 1,093 1,095 1,099 1,021 1,073 1,079 1,086 Fabricated metal products 1,082 1,131 1,134 1,127 1,092 1,142 1,147 1,138 1,314 1,411 1,443 1,445 1,315 1,403 1,433 1,446 1,306 1,412 1,417 1,422 1,318 1,424 1,436 1,435 Transportation equipment 1,305 1,331 1,324 1,320 1,326 1,347 1,341 1,341 Instruments and related products 289 314 318 317 290 315 320 319 Miscellaneous manufacturing industries 338 343 341 347 337 363 356 346 Nondurable goods 5,990 6,046 6,059 6,082 5,992 6,141 6,119 6,083 Food and kindred products 1,175 1,171 1,179 1,191 1,162 1,239 1,203 1,178 Tobacco manufactures 59 59 62 62 63 69 68 65 Textile-mill products 894 902 903 908 898 902 908 913 Apparel and related products 1,172 1,161 1,155 1,152 1,170 1,175 1,168 1,150 Paper and allied products 547 563 563 563 551 563 567 567 Printing, publishing, and allied industries 660 662 664 671 666 665 668 677 Chemicals and allied products 590 610 608 608 588 608 607 606 Petroleum refining and related industries 119 120 120 121 117 121 120 119 Rubber and misc. plastic products 517 543 550 550 520 547 555 553 Leather and leather products 257 255 255 256 257 253 256 256 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 earnings1 (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) IIInnnddduuussstttrrryyy gggrrrooouuuppp 1972 1973 1972 1973 1972 1973 Dec. Oct. Nov.23 Dec.? Dec. Oct. Nov.? Dec.? Dec. Oct. NOV.P Dec.*5 40.7 40.6 40.7 40.7 162.74 168.50 170.14 173. 86 3.95 4.14 4.16 4.22 Durable goods 41.5 41.3 41.4 41.4 177.24 181.75 183.43 188. .58 4.21 4.39 4.42 4.49 Ordnance and accessories 42.5 42.4 42.1 42.7 179.32 185.27 188.21 193., 52 4.18 4.38 4.46 4.49 Lumber and wood products 39.8 40.3 40.5 41.8 134.52 149.37 146.65 154,. 24 3.38 3.67 3.63 3.69 Furniture and fixtures 40.0 39.4 39.5 39.5 128.52 133.27 133.27 135.. 41 3.15 3.34 3.34 3.36 Stone, clay, and glass products 41.6 41.9 42.2 42.6 166.83 180.62 181.47 182,. 33 4.02 4.27 4.29 4.29 Primary metal industries 42.4 42.7 43.4 43.3 203.94 216.91 223.94 230, .45 4.81 5.14 5.22 5.31 Fabricated metal products 41.6 41.5 41.7 41,4 173.87 179.71 181.41 182. ,68 4.13 4.32 4.34 4.36 Machinery 42.6 42.6 42.4 42,6 192.70 196.78 197.63 205. ,28 4.44 4.63 4.65 4.73 Electrical equipment and supplies 40.5 40.0 40.3 40,0 155.77 157.18 159.56 161. .59 3.79 3.91 3.93 3.98 Transportation equipment 42.4 41.5 41.0 40,7 219.44 214.34 213.11 223. ,86 5.01 5.14 5.16 5.33 Instruments and related products 40.6 40.8 40.9 40,9 157.03 160.74 163.55 165. ,60 3.83 3.93 3.96 4.00 Miscellaneous manufacturing industries... 39.1 38.6 39.0 38,9 125.69 128.43 131.20 131. ,32 3.19 3.31 3.33 3.35 Nondurable goods 39.6 39.7 39.8 39.7 142.84 149.27 151.20 152. 00 3.58 3.76 3.78 3.80 Food and kindred products 40.4 40.6 40.9 41.0 151.40 157.93 160.31 163. 14 3.72 3.89 3.91 3.95 Tobacco manufactures 37.9 39.2 40.9 38.5 135.41 151.44 157.41 154. 05 3.49 3.73 3.83 3.91 Textile-mill products 41.2 40.5 40.5 40.7 118.01 123.02 124.75 125. 77 2.83 3.03 3.05 3.06 Apparel and related products 35.7 35.8 35.8 36.1 96.03 102.03 103.25 103. 61 2.69 2.85 2.86 2.87 Paper and allied products 42.9 42.6 42.7 42.8 175.80 182.76 184.04 186. 19 4.06 4.27 4.29 4.31 Printing, publishing, and allied industries. 37.7 37.9 38.0 37,8 175.34 180.03 181.74 183. 46 4.59 4.75 4.77 4.79 Chemicals and allied products 41.9 41.9 42.0 41.9 182.73 190.23 191.88 193. 70 4.33 4.54 4.56 4.59 Petroleum refining and related industries . 42.2 42.2 43.1 42.6 210.76 224.08 228.53 223. 34 5.03 5.26 5.29 5.28 Rubber and misc. plastic products 41.3 40.8 41.2 40.4 154.75 157.87 101.07 158. 32 3.72 3.86 3.90 3.89 Leather and leather products 36.5 38.0 37.9 37.5 101.93 107.16 109.06 109. 63 2.74 2.85 2.87 2.87 1 Data adjusted to 1971 benchmark. NOTE.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 PRICES • JANUARY 1974 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 c i d s t - y o n F i p a n i u e n s g r h r d s a - - - AA uu pp pp aa pp kk nn aa ee dd ee rr pp eell TT pp tt oo rr ii aa rr oo tt nn nn aa ss -- -- Total M c ic a e a r d l e - s P c o a e n r r a e - l r R e a i e c n n a r g d e d a - - g O s a o e t n o r h d v d e - r s tion tion ices 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 8866..33 888999...222 999888...666 9933..88 8888899999.....66666 888999...666 85.1 777999...111 999000...111 888777...333 888777...888 196 5 9999944444.....55555 9999944444.....44444 999444...999 9999966666.....99999 9922..77 999444...666 999999...444 9955..33 9999933333.....77777 999555...999 93.4 888999...555 999555...222 999555...999 999444...222 196 6 9999977777.....22222 9999999999.....11111 999777...222 9999988888.....22222 9966..33 999777...000 999999...666 9977..00 9999966666.....11111 999777...222 96.1 999333...444 999777...111 999777...555 999777...222 196 7 111110000000000.....00000 111110000000000.....00000 111000000...000 111110000000000.....00000 110000..00 111000000...000 111000000...000 110000..00 111110000000000.....00000 111000000...000 100.0 111000000...000 111000000...000 111000000...000 111000000...000 196 8 111110000044444.....22222 111110000033333.....66666 111000444...222 111110000022222.....44444 110055..77 111000333...111 111000000...999 110044..44 111110000055555.....44444 111000333...222 105.0 111000666...111 111000444...222 111000444...777 111000444...666 196 9 111110000099999.....88888 111110000088888.....99999 111111000...888 111110000055555.....77777 111166..00 111000555...666 111000222...888 110099..00 111111111111111.....55555 111000777...222 110.3 111111333...444 111000999...333 111000888...777 111000999...111 197 0 111111111166666.....33333 111111111144444.....99999 111111888...999 111111111100000.....11111 112288..55 111111000...111 111000777...333 111133..44 111111111166666.....11111 111111222...777 116.2 111222000...666 111111333...222 111111333...444 111111666...000 lc7l 111112222211111.....33333 111111111188888.....44444 111222444...333 111111111155555.....22222 113333..77 111111777...555 111111444...777 111188..11 111111111199999.....88888 111111888...666 122.2 111222888...444 111111666...888 111111999...333 111222000...999 1972 111112222255555.....33333 111112222233333.....55555 111222999...222 111111111199999.....22222 114400..11 111111888...555 111222000...555 112211..00 111112222222222.....33333 111111999...999 126.1 111333222...555 111111999...888 111222222...888 111222555...555 1972—No v 111112222266666.....99999 111112222255555.....44444 111333000...888 111112222200000.....55555 114422..00 111111999...333 111222222...222 112222..11 111112222255555.....00000 111222111...444 127.4 111333444...111 111222111...000 111222444...111 111222666...444 Dec 111112222277777.....33333 111112222266666.....00000 111333111...222 111112222211111.....00000 114422..66 111111999...444 111222222...555 112222..33 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 114422..66 111222000...777 111222444...111 112222..22 111112222233333.....00000 111222111...000 127.8 111333444...999 111222111...888 111222444...111 111222666...777 Feb 111112222288888.....66666 111113333311111.....11111 111333222...000 111112222222222.....11111 114422..99 111222777...222 111222444...555 112222..66 111112222233333.....66666 111222111...111 128.1 111333555...333 111222222...444 111222444...333 111222777...111 Mar 111112222299999.....88888 111113333344444.....55555 111333222...333 111112222222222.....66666 114433..22 111222777...888 111222555...000 112233..00 111112222244444.....88888 111222111...555 128.6 111333555...888 111222333...111 111222444...555 111222777...666 Apr 111113333300000.....77777 111113333366666.....55555 111333222...888 111112222233333.....00000 114433..66 111222888...333 111222555...555 112233..66 111112222255555.....88888 111222222...666 129.2 111333666...222 111222333...888 111222555...222 111222888...222 May 111113333311111.....55555 111113333377777.....99999 111333333...333 111112222233333.....55555 114444..22 111222999...333 111222555...777 112233..99 111112222266666.....77777 111222333...555 129.6 111333666...666 111222444...444 111222555...666 111222888...555 June 111113333322222.....44444 111113333399999.....88888 111333333...999 111112222233333.....99999 114455..00 111333111...666 111222555...444 112244..77 111112222266666.....88888 111222444...666 130.0 111333777...000 111222444...999 111222555...999 111222999...000 July 111113333322222.....77777 111114444400000.....99999 111333444...222 111112222244444.....33333 114455..22 111333111...777 111222555...555 112255..00 111112222255555.....88888 111222444...888 130.3 111333777...333 111222555...333 111222666...222 111222999...555 Aug 111113333355555.....11111 111114444499999.....44444 111333555...222 111112222255555.....00000 114477..00 111333222...888 111222555...888 112255..33 111112222266666.....55555 111222444...555 130.5 111333777...666 111222555...777 111222666...111 111222999...444 Sept 111113333355555.....55555 111114444488888.....33333 111333666...666 111112222255555.....44444 114499..22 111333333...666 111222666...555 112266..11 111112222288888.....33333 111222333...999 131.1 111333888...333 111222666...333 111222666...888 111222999...999 Oct 111113333366666.....66666 111114444488888.....44444 111333888...111 111112222255555.....99999 115511..55 111444111...111 111222777...444 112266..77 111112222299999.....66666 111222555...000 132.1 111444000...666 111222777...333 111222777...222 111333000...333 Nov 111113333377777.....66666 111115555500000.....00000 111333999...444 111112222266666.....33333 115522..66 111555555...666 111222999...888 112277..55 111113333300000.....55555 111222555...888 132.6 111444000...999 111222888...111 111222777...555 111333000...888 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Prom c t A o o i m e l d l s - i - p F u r a c o r t d m s - c f f e o a e s n o e s d d d ed s s Total t T e il e t e c x s . - , H e i t d c e . s, F e u tc e . l , C ic e h a t e c l m s . , - R b e u t e c r b . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s t , . - e m c M q a e h n e u r i a y n n d i - p t - - F t e u 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 - • e p m T t q o i r e u o r a n n i t n p a t s 1 - - - n c M e e l o i l s u a - s - 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 loo.o 100.0 100.0 100.0 100.0 100.0 100.0 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3- 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 122.9 137.5 129.4 119.4 115.6 142.2 121.9 104.8 109.8 149.8 115.1 124.4 118.6 112.4 127.4 114.2 115.1 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 128.2 114.1 115.8 126.9 150.9 137.0 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 128.4 114.2 117.1 129.7 160.9 141.4 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 129.0 114.5 117.9 130.7 160.6 139.8 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 130.0 114.9 118.6 133.5 170.4 145.0 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 130.5 115.1 119.5 136.7 182.3 151.8 126.9 123.7 140.9 142.8 110.4 112.6 183.1 122.0 132.5 121.9 115.2 131.1 115.0 120.2 134.9 173.3 146.5 126.9 124.2 141.4 142.8 110.8 112.9 177.8 122.3 132.8 122.0 115.2 130.0 115.0 120.9 142.7 213.3 166.2 127.4 125.2 143.0 142.9 111.0 113.1 178.8 123.3 133.7 122.3 115.9 130.0 115.1 121.0 140.2 200.4 156.3 128.1 126.8 143.8 144.8 111.5 112.8 181.9 124.4 134.4 122.6 116.0 129.9 114.5 121.1 139.5 188.4 153.1 129.6 128.5 143.8 150.5 112.7 114.0 180.3 125.8 135.9 123.1 116.6 130.9 115.9 121.0 141.8 184.0 151.9 133.5 130.0 143.0 179.2 113.5 114.8 184.7 127.6 138.5 123.8 117.2 131.5 116.1 121.3 145.3 187.2 155.7 137.1 131.4 141.9 201.3 115.6 116.5 186.1 128.7 141.8 124.6 117.5 132.6 117.3 121.6 Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • PRICES A 67 WHOLESALE PRICES: DETAIL (1967= 100) 1972 1973 1972 Group Group Dec. Oct. Nov. Dec. Farm products: Pulp, paper, and allied products: Fresh and dried produce. 134.6 162.1 168.2 171.6 Pulp, paper and products, excluding Grains 137.6 229.0 220.8 248.7 building paper and board 115.4 126.1 Livestock 152.6 185.5 180.0 171.0 Woodpulp 111.5 145.7 Live poultry 103.6 189.2 154.4 144.5 Wastepaper 133.6 252.9 Plant and animal fibers.. 120.9 266.5 234.0 259.3 Paper 117.5 122.3 Fluid milk 123.6 168.2 177.2 177.2 Paperboard 107.1 118.0 Eggs 143.9 177.7 181.2 190.6 Converted paper and paperboard.. 115.8 123.8 Hay and seeds 141.6 211.1 194.3 210.5 Building paper and board 107.2 117.7 Other farm products 135.3 154.7 152.6 149.1 Processed foods and feeds: Metals and metal products: Cereal and bakery products 120.1 150.5 156.2 160.1 Meat, poultry, and fish 136.3 170.2 165.0 164.9 Iron and steel 129.5 138.6 Dairy products 123.0 139.6 139.9 142.3 Steelmill products 130.2 135.3 Processed fruits and vegetables 124.7 135.0 136.3 137.8 Nonferrous metals 117.4 140.7 Sugar and confectionery 122.1 139.8 143.8 142.0 Metal containers 131.1 134.8 Beverages and beverage materials. 119.7 123.0 123.8 124.4 Hardware 121.4 127.7 Animal fats and oils 122.9 308.8 247.8 264.8 Plumbing equipment 120.8 127.8 Crude vegetable oils 99.2 223.0 164.7 232.5 Heating equipment 119.2 120.8 Refined vegetable oils 108.8 180.5 159.1 208.6 Fabricated structural metal products 123.3 129.6 Vegetable oil end products 119.2 167.6 164.8 168.7 Miscellaneous metal products 124.8 132.2 Miscellaneous processed foods.... 115.8 129.3 129.4 130.7 Manufactured animal feeds 163.6 184.5 183.3 201.0 Textile products and apparel: Machinery and equipment: Cotton products 124.8 155.5 161.2 165.2 Agricultural machinery and equip.., 122.9 127.5 Wool products 108.8 130.2 128.9 128.7 Construction machinery and equip. 126.3 132.5 Manmade fiber textile products. 110.3 127.7 128.6 129.7 Metalworking machinery and equip 121.3 127.5 Apparel 116.0 121.5 121.9 122.2 General purpose machinery and Textile housefurnishings 109.9 115.2 119.1 126.4 equipment 123.4 128.4 Miscellaneous textile products... 119.9 127.0 132.0 131.9 Special industry machinery and equipment 124.6 132.9 Hides, skins, leather, and products: Electrical machinery and equip. 110.6 113.0 Miscellaneous machinery 121.0 125.2 Hides and skins 255.2 256.3 239.8 227.3 Leather 162.2 160.7 160.4 156.1 Footwear 128.7 131.0 131.9 132.5 Other leather products. 128.4 130.5 130.1 130.3 Furniture and household durables: Fuils and related products, and power: Household furniture 118.5 125.2 Commercial furniture 123.4 133.6 Coal 205.5 224.1 239.0 240.7 Floor coverings 99.2 103.3 Coke 159.9 167.3 167.3 170.0 Household appliances 107.9 109.1 Gas fuels 119.2 133.4 133.1 137.6 Home electronic equipment 92.3 91.5 Electric power 122.9 132.1 133.5 135.9 Other household durable goods. 127.0 131.3 Crude petroleum 114.7 133.3 139.3 146.2 Petroleum products, refined. 112.0 156.6 210.9 252.0 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals 101.0 105.3 105.4 105.9 Flat glass 122.5 118.2 Prepared paint 118.2 126.0 128.1 128.6 Concrete ingredients 128.5 131.9 Paint materials 106.3 116.8 117.1 123.6 Concrete products 127.5 133.6 Drugs and pharmaceuticals 103.7 104.7 104.9 105.1 Structural clay products excluding Fats and oils, inedible 128.2 273.0 241.8 286.0 refractories 118.9 124.6 Agricultural chemicals and products. 92.5 95.9 104.9 106.1 Refractories 132.1 136.3 Plastic resins and materials 89.3 92.4 93.1 93.0 Asphalt roofing 131.2 136.8 Other chemicals and products 114.0 121.2 122.1 124.6 Gypsum products 114.8 122.4 Glass containers 136.4 143.5 Rubber and plastic products: Other nonmetallic minerals 127.3 127.3 Rubber and rubber products 114.6 120.2 121.2 123.5 T C i r r u e d s e a n ru d b t b u e b r es 1 1 0 0 9 1 . . 7 2 1 11 1 5 1 . . 1 4 1 11 1 6 3 . . 3 9 1 11 2 6 5 . . 3 8 Transportation equipment:l Miscellaneous rubber products 122.0 126.4 126.8 128.2 Plastic construction products (Dec. Motor vehicles and equipment. 118.4 120.0 1969 = 100) 93.3 94.7 94.4 94.8 Railroad equipment 131.1 136.2 Unsupported plastic film and sheeting (Dec. 1970=100) 98.6 101.1 101.4 102.2 Laminated sheets, high pressure (Dec. 1970=100) 97.9 97.7 99.5 99.9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition 115.1 119.2 Lumber 167.9 214.5 211.1 214.8 Tobacco products 117.5 122.7 Millwork 130.7 149.4 149.5 150.4 Notions 112.9 115.5 Plywood 132.3 134.6 169.9 166.0 Photographic equipment and supplies 107.0 108.6 Other wood products. 130.5 158.2 159.0 159.1 Other miscellaneous products 117.2 127.8 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 • JANUARY 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 1973 1929 1933 1941 1950 1968 1969 1970 1971 1972 III IV II III Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 977.1 1,055. 1,155.2 1,166.51,199.2 1,342.5.1,272.0 1,304.5 Final purchases 101.4 57.2 120.1 278.0, 857.11 922.5 972.61',049.4 1,149.1 1,157.81,191.0 1,287.81,267.5 1,299.8 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' 795.6 816.0 Durable goods 9.2 3.5 9.6 30.5 84.0i 90.8 91.3 103.6 117.4 120.2 122.9 132.2 132.8 132.8 S N e o r n v d ic u e r s a ble goods 3 3 7 0. . 3 7 2 2 2 0 . . 3 1 4 2 2 8 . . 9 62.4; 2 2 2 3 1 0 . . 3 8 2 2 4 4 2 5 . . 7 9 1 ; 2 2 6 6 2 3. . 8 6 2 28 7 4 8 . . 7 2 3 9 0 9 9 . . 9 2 3 3 0 1 2 1 . . 3 6 3 3 1 10 9 . . 7 0 3 3 2 2 5 2 . . 0 2 3 3 3 3 0 2 . . 3 6 3 3 4 4 1 1 . . 6 6 Gross private domestic investment 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. 202.0 Fixed investment 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. 197.3 Nonresidential 10.6 2.4 9.5 27.9 88.8 98.5 100.6 104.4 118.2 118.3 124.3 130. 9i 134. 138.0 Structures 5.0 .9 2.9 9.2! 30.3 34.2 36. 37.9 41.7 41.3 43.0 45. 3 47. 49.5 Producers' durable equipment. 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. 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. 59.2 Nonfarm 3.8 .5 3.7 18.6! 29.5 32.0 30.7 42.2 53.5 53.9 56.4 58. 4! 59. 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. 4.7 Nonfarm 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. 3.2 Net exports of goods and services. 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. 66.3 73.5 74.0, 79.7 89.7 97.2 104.5 Imports 5.9 2.0 4.6 12.0: 48.1 53.6 I 59.3 65.5 78.1 77.7S 83.2 89.7j 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 72.4 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 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) dollars 203.6 141.5 263.7 355.3 706.6 725.6] 722.5 745.4 790.7 796.7i 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 1,067.4 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 Military .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 9900..88 92.6 94.7 Employer contributions for social insurance .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 Other labor income .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 Business and professional 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 Rental income of persons 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 adjustment 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 91.5 98.8 104.3 107.9 112.0 Profits before tax 10.0 1.0 17. 7 42.6 87.6 84.9 74.0 85.1 98.0 98.4 106.1 119.6 128.9 129.0 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 57.6 Profits after tax 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 43.4 Inventory valuation adjustment .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

JANUARY 1974 • 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 1969 1970 1971 1972 III IV II III 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 1,199.21,242.5 1,272.01,304.5 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 74.5 81.6 87.3 93.81 102.4 102.3 105. 106.9 109.0 110.5 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 78.6 85.9 93.5 102.41 109.5 110.5 112. 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 1.1 3.2 3.7 Plus: Subsidies less current surplus of government enterprises -.1 .1 .2 .7 1.0 1.7 1.2 1.7 2.2 .9 .4 .6 Equals: National income. 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 949.2 978.6 1,015.0 1,038.2 1,067.4 Less: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 84.3 8 69.2 80.1 91.1 91.5 98.8 104.3 107, 112.0 Contributions for social insurance. .. .2 .3 2.8 6.9 47. 2 57.7 73.7 74.5 75. 89.3 90, 93.0 Excess of wage accruals over disburse- 64.6 ments ..j .0 -.5 -.2 .0 .0 .0 .6 Plus: Government transfer payments 1.5 2.6 14.3 56. 61. .9j 75.1 98.3 96.4 107.3 108.8 113.7 Ne c t o n in s t u e m re e s r t s paid by government and 2.5 1.6 2.2 7.2 26. 28.7 1 31.0 8 3 8 1 . . 9 0 32.7 32.9 33.7 34.7 36. 38.0 Dividends 5 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. 4. 5.0 Equals: Personal income 85.9 47.0 96.0 227.6 688.9 750. 9 808.3 863.5 939.2 943.7 976.1 996.6 1,019, 1,047.1 Less: Personal tax and nontax payments... 2.6 1.5 3.3 20.7 97.9 116. 116.6 117.5 142.2 142. 147.4 145. 149. 156.0 Equals: Disposable personal income 83.3 45.5 92.7 206.9 591.0 634. 691.7 746.0 797. oj 800.9 828.7 851.5 869. 891.1 Less: Personal outlays 79.1 46.5 81.7 193.9 551.2 596. 635.5 685. 747.2 755. 774.3 801.5 818. 840.1 Personal consumption expenditures 77.2 45.8 80.6 191.0 536.2 579 617.6 667.2 726.5 734.1 752.6 779.4 795, 816.0 Consumer interest payments 1.5 .5 .9 2.4 14.3| 15 16 17.7 19.7, 20.0 20.7 21.2 22, 23.0 Pe e r i s g o n n e a r l s transfer payments to for- .3 .2 .2 .5 .81 .9 1.0 ,0 1.0 1.1 .9 1.1 Equals: Personal saving. 4.2 -.9 11.0 13.1 39.8 38.2 56.2 60.2 49.7| 45.8 54.4 50.0 51.0 51.1 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 1i Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Total personal income 863.5 939.2 977.6 983.6 989.1 997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1067.5 1076. Wage and salary disbursements 573.3 627.8 648.4 654.0 661.7 667.2 671.1 677.6 682.0 688.2 693.2 698.9 706.0 711.2 716. Commodity-producing industries. . 206.3 226.0 235.0 236.8 239.2 242.2 243.5 245.9 248.3 251.7 253.4 254.8 257.8 259.5 261 j Manufacturing only 160.5 175.9 183.8 185.6 187.1 189.6 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.5 203. Distributive industries 138.3 151.5 155.6 157.2 158.7 159.3 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 171. Service industries 104.7 116.1 119.8 121.3 122.9 124.1 124.9 126.4 126.8 127.7 129.4 130.8 132.5 132.9 133. Government 123.9 134.2 138.1 138.7 140.9 141.6 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 150. Other labor income 36.6 40.7 42.3 42.7 43.0 43.3 43.6 43.9 44.2 44.5 44.8 45.3 45.8 46.2 46. Proprietors' income 68.7 74.2 77.5 77.9 80.1 80.6 81.0 81.0 81.5 81.9 83.7 85.1 86.4 87.4 88. Business and professional 51.9 54.0 55.1 55.6 56.1 56.3 56.4 56.8 57.1 57.3 57.8 58.0 58.1 58.5 58. Farm 16.8 20.2 22.4 22.3 24.0 24.3 24.6 24.2 24.4 24.6 25.9 27.1 28.3 28.9 29. Rental income 24.5 24.1 24.7 24.9 24.8 24.8 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 25. Dividends 25.1 26.0 26.3 26.5 26.8 26.9 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 28. Personal interest income 73.0 78.0 80.4 81.1 81.9 82.6 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.5 92. Transfer payments 93.2 103.0 113.7 112.6 112.5 113.8 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.1 121.' Less: Personal contributions for social insurance 30.9 34.7 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 44.: NNoonnaaggrriiccuullttuurraall iinnccoommee 839.8 911.5 947.7 953.6 957.4 965.3 970.9 979.5 986.4 994.2 1,001.8 1,012.1 1,021.8 1030.0 1037.! AAggrriiccuullttuurraall iinnccoommee 23.7 27.7 29.9 30.0 31.8 32.1 32.4 32.0 32.2 32.4 33.8 35.2 36.7 37.5 38.: 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 • JANUARY 1974 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 118833..99 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 88..88 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 Commercial 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 Farm 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 1122..99 10.7 1100..11 99..22 3333 Totals including equities 3344 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 --33..00 44..00 33..66 3377 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 outlays i 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 --4433..11 -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 --2266..44 --2200..44 --2277..99 --4400..77 1111 Corporate business 1122 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 --1133..55 --1199..88 --3300..99 1177 Households 18 Total capital outlays 94.2 94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.2 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 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. s s p ec o u n r s i o ty r e i d ss u c e r s e d b i y t a F g H en A c , ie E s x p ar o e r t e -I x m cl p u o d r e t d B a a s n k b , o a r n ro d w T in V g A b . I y s s f u in e a s n b c y ia F l e i d n e s r t a it l u ly - 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 FRAFeSdEerRal Reserve System, Washington, D.C., 20551. acceptances. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 4.9 2.9 2.8 3.2 2.3 4.3 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 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 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 Public support rate (in per cent) 17.9 14.1 12.7 18.0 30.2 30.6 10.8 31.2 30.1 14.6 7.9 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 2 Mutual fund shares 3.7 3.0 5.8 4.8 2.6 1.2 -.6 .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 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 • JANUARY 1974 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 LLiinnee CCrreeddiittss--ff,, ddeebbiittss —— 11997700 11997711 11997722 rr III IV r lr II IIIP Summary—Seasonally adjusted 1 2,176 -2,698 -6,912 -1,573 -1,745 -960 -244 714 ?. Exports 41,964 42,768 48,769 12,362 13,213 15,320 16,778 18,153 3 -39,788 -45,466 -55,681 -13,935 -14,958 -16,280 -17,022 -17,439 4 -3,374 -2,918 -3,558 -846 -864 -825 -730 -576 5 -2,013 -2,288 -2,853 -679 -730 -608 -703 -526 6 6,260 7,972 7,863 1,950 2,232 2,309 2,111 2,311 7 7,920 9,456 10,433 2,600 2,991 3,152 3,223 3,449 8 Other U.S. investments abroad 3,506 3,443 3,492 876 875 1,006 1,088 1,187 9 Foreign investments in the United States -5,166 -4,927 -6,062 -1,526 -1,634 -1,849 -2,200 -2,325 10 581 739 851 209 237 234 240 225 11 3,630 807 -4,610 -939 -870 150 674 2,148 12 Remittances, pensions, and other transfers -1,481 -1,553 -1,570 -373 -429 -397 -389 -422 13 Balance on goods, services, and remittances 2,150 -745 -6,180 -1,312 -1,299 -247 285 1,726 14 -1,734 -2,045 -2,174 -581 -452 -345 -652 -509 15 Balance on current account 416 -2,790 -8,353 -1,893 -1,751 -592 -367 1,217 16 U.S. Government capital flows excluding nonscheduled -1,829 -2,117 -1,714 -542 -627 -671 -583 -554 17 Nonscheduled repayments of U.S. Government assets 244 225 137 7 26 111 174 4 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies -433 -467 238 169 15 224 484 187 19 Long-term private capital flows, net -1,429 -4,401 -152 -393 781 -16 -317 1,685 20 U.S. direct investments abroad -4,410 -4,943 -3,404 -1,148 -771 -2,025 -946 -228 21 Foreign direct investments in the United States 1,030 -115 160 178 160 273 534 720 22 -942 -966 -614 209 -40 51 -126 -204 23 U.S. securities other than Treasury issues 2,190 2,269 4,335 553 1,768 1,745 496 1,159 24 Other, reported by U.S. banks 178 -862 -1,120 -426 -442 -103 -257 243 25 Other, reported by U.S. nonbanking concerns 526 216 492 241 106 43 -18 -5 26 -3,031 -9,550 -9,843 -2,652 -1,556 -944 -609 2,539 27 Nonliquid short-term private capital flows, net -482 -2,347 -1,637 -430 -982 -1,822 -1,404 234 28 Claims reported by U.S. banks -1,023 -1,802 -1,495 -267 -859 -1,809 -1,362 199 29 Claims reported by U.S. nonbanking concerns -361 -530 -315 -122 -250 -48 -18 -233 30 Liabilities reported by U.S. nonbanking concerns 902 -15 173 -41 127 35 -24 268 31 Allocations of Special Drawing Rights (SDR's) 867 717 710 177 177 32 -1,205 -10,784 -3,112 -1,626 -1,490 -3,891 425 -1,355 33 -3,851 -21,965 -13,882 -4,531 -3,851 -6,651 r -1,588 1,418 34 -5,988 -7,788 3,542 77 2,367 -3,842 : 1,923 690 35 252 -1,097 -1,234 --441100 i -131 -1,966 ; 818 -290 36 -99 -566 -742 -274 -77 -1,351 905 -342 37 Reported by U.S. nonbanking concerns 351 -531 -492 -136 -54 -615 i -87 52 38 -6,240 -6,691 4,776 417 2,498 -1,876 ; 1,105 980 39 To f oreign commercial banks -6,508 -6,908 3,862 295: 1,995 -1,896 i 710i 866 40 To international and regional organizations 181 682 104 -32 181 12: 31 -52 41 87 -465 810 154 322 8i 364 166 42 -9,839 -29,753 -10,340 ' -4,524 • -1,484 -10,499 » 335 2,108 Financed by changes in: 43 Liquid liabilities to foreign official agencies 7,637 27,615 9,720 ' 4,467 1,645 9,12CI -778 -1,654 44 Other readily marketable liabilities to foreign official agen- -810 -551 399 34 117 1,202 1 259 11 45 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt 535 341 189 78 --116677 --4433 ii 116677 --445522 46 2,477 2,348 32 -55 ; -111 220> 17 -13 47 Gold 787 866 547 3 48 SDR's -851 -249 -703 -177 -177 9 49 Convertible currencies . •• •••••••••••••••••••••• 2,152 381 35 134 82 233 5500 Gold tranche position in IMF 338899 11,,335500 ii 115533 --1155 ;; --1166 -13 8 Memoranda: 51 Transfers under military grant programs (excluded from 22,,558866 33,,115533 44,,220000 11,,118899 994499 771166 883333 552211 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 22,,994488 33,,119922 44,,552211 ((66)) ((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 443344 449988 554488 ((66)) ((66)) ((66)) ((66)) ((66)) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 11997722rr III IV lr II Illf Balances excluding allocations of SDR's—Seasonally adjusted Net liquidity balance -4,718 -22,682 -14,592 -4,708 -4,028 -6,657 -1,588 1,418 Official reserve transactions balance -10,706 -30,470 -11,050 -4,701 -1,661 -10,499 335 2,108 Balances not seasonally adjusted Balance on goods and services 3,630 807 -4,610 -2,409 168 819 787 251 Balance on goods, services, and remittances 2,150 -745 -6,180 -2,796 -263 448 390 -185 Balance on current account 416 -2,790 -8,353 -3,333 -698 74 -295 -649 Balance on current account and long-term capital 4 -3,031 -9,550 -9,843 -4,052 343 -862 -784 771122 Balances including allocations of SDR's: Net liquidity -3,851 -21,965 -13,882 -5,299 -3,197 -6,282 -1,981 537 Official reserve transactions -9,839 -29,753 -10,340 -5,590 -1,503 -9,995 772 933 Balances excluding allocations of SDR's: Net liquidity -4,718 -22,682 -14,592 -5,299 -3,197 -6,282 -1,981 537 Official reserve transactions -10,706 -30,470 -11,050 -5,590 -1,503 -9,995 772 933 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 1970 1971 1972 1973 Month: Jan 3,406 3,601 4,074 4,977 3,222 3,599 4,415 5,281 184 2 -341 -304 Feb... 3,546 3,695 3,824 5,065 3,279 3,564 4,473 5,541 267 130 -649 -476 Mar... 3,375 3,790 3,869 5,380 3,219 3,628 4,515 5,432 156 160 -647 -53 Apr... 3,410 3,631 3,820 5,487 3,262 3,774 4,417 5,291 148 -143 -596 196 May.. 3,661 3,746 3,882 5,603 3,367 3,908 4,486 5.761 324 -161 -604 -158 June.. 3,727 3,672 3,971 5,778 3,265 4,037 4,468 5,794 462 -365 -497 -16 July... 3,704 3,573 4,074 5,869 3,254 3,832 4,565 5.762 450 -259 -491 106 Aug... 3,591 3,667 4,197 6,004 3,346 3,913 4,726 6,021 245 -247 -530 -17 Sept... 3,553 4,487 4,176 6,448 3,423 4,179 4,612 5,575 130 308 -436 873 Oct.. . 3,688 2,669 4,316 6,432 3,498 3,469 4,738 5,905 190 -800 -421 527 Nov... 3,499 3,196 4,473 6,819 3,428 3,456 148 6,733 71 -260 -675 86 Dec... 3,569 3,881 4,558 3,401 4,169 5,002 168 -288 -444 Quarter: I 10,327 11,086 11,767 15,421 9,720 10,792 13,403 16,254 607 294 -1,637 -833 I I 10,798 11,049 11,673 16,868 9,864 11,719 13,370 16,846 933 -670 -1,697 22 III.... 10,848 11,727 12,447 18,321 10,023 11,924 13,903 17,358 816 -197 -1,456 963 IV.... 10,756 9,746 13,347 10,327 11,094 14,888 425 -1,348 -1,540 Year3... 42,659 43,549 49,208 39,952 45,563 55,555 2,707 -2,014 -6,347 1 Exports of domestic and foreign merchandise; excludes Dept. of 3 Sum of unadjusted figures. Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. NOTE.—Bureau of the Census data. Details may not add to totals be- 2 General imports including imports for immediate consumption plus cause of rounding. entries into bonded warehouses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. GOLD TRANSACTIONS • JANUARY 1974 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 333332222255555 --112299 ---444777333 -----------222222222222222222222255555555555 555550000000000 -------2222222 ---222 ---222 ----55552222 4444411111 22 Italy 222222222220000000000000000000000 -------88888880000000 ---666000 ---888555 ----222200009999 -----7777766666 -----------6666666666600000000000 -------33333335555555 ———— 11119999 ----55550000 --2255 --113300 -----------3333333333322222222222 -------111111188888880000000 55551111 -----------8888888888811111111111 -------55555550000000 ---222 ---333000 ---555000 --2255 ----55550000 --117755 332299 666666666661111111111188888888888 111111155555550000000 888000 ---888777999 ---888333555 Bank for Intl. Settlements . 222000000 Other 11 --66 --3355 --4499 1166 --4477 111111 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 Canada 222222000000000000 111115555500000 5555500000 Latin American republics: Argentina ---333000 ------333333999999 -----2222255555***** --2255 ----22228888 Brazil 777222 555444 2222255555 ------333333 -----11111 ----22223333 Colombia 111000 2222299999 777777 ** Venezuela -----2222255555 Other --1111 --99 -----1111133333 --66 1111 --4400 --2299 --8800 --55 TToottaall 3322 5566 111777 -----4444411111 999 ---666555 --5544 --113311 --55 Asia: ---111000 -----44444 ---222111 ---444222 Jap'an -----5555566666 --111199 Lebanon --1111 -----1111111111 --11 -------99999995555555 ----33335555 Malaysia . .. -------33333334444444 ----11110000 Philippines 2255 2200 ** --11 9999999 4400 --44 ----2222 Saudi Arabia -------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 ---888111 ---666 TToottaall ffoorreeiiggnn ccoouunnttrriieess •• --339922 --3366 ----1111,,,,333322222222 ----666600008888 ---111,,,000333111 ---111,,,111111888 999955557777 4444----666633331111 ----888844445555 ----3333 Intl Monetary Fund^ . 6666----222222225555 111177777777 222222 ---333 11110000 ----111155556666 ----22222222 ----555544444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ---111...000000999 ——— 111...111222111 999966667777 ----777788887777 ----888866667777 ----555544447777 ' 1 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 subscriptio* 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 foi 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

JANUARY 1974 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) EE yy nn ee dd aa rr oo ff Total Tot G al o 2 ld st T oc r k ea i s ury v c fo u e C c r r r i o t e r e i n i e b s g n - l n e - pp RR II oo ee MM ss ss ii ii ee nn tt FF rr ii oo 33 vv nn ee 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 t e r i s n i e b g 5 - n l n e - ppp RRR III ooo eee MMM sss sss iii iii eee nnn ttt FFF rrr iii ooo vvv 333 nnn eee SDR's4 1960... 19,359 17,804 17,767 1,555 1972 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 8 470 1,949 1969... 716,964 11,859 10,367 72,781 2,324 July.. 12,918 10,487 10,410 8 474 1,949 Aug... 12,923 10,487 10,410 8 479 1,949 1970... 14,487 11,072 10,732 629 1,935 851 Sept... 12.927 10,487 10,410 8 483 1,949 1971 . . . 812,167 10,206 10,132 8 276 585 1,100 Oct.. . 1014,367 1011,652 1011,567 8 10541 102,166 19729. . 13,151 10,487 10,410 241 465 1,958 Nov... 14,373 11,652 11,567 8 547 2,166 1973... . 14,378 11,652 11,567 8 552 2,166 Dec... 14,378 11,652 11,567 8 552 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 IMF holdings (during period) of dollars (end of period) U.S. transactions with IMF Transactions by other countries Period with IMF Per cent P s t u a d i b o y o m n s o ll c f s a e r r n i i p s n t - s by s g N I a o M l e l e t d s F i T t c f i r o c u o a i r r n e n e r s s s i e g a n 2 i n n c - - I i d M n o c F l o l a m n r e e s t P d u o r l c o l h a f r a s s e 3 s pu d r o R c l i h l n e a - a r s s e s c T ha o n ta g l e Amount q U u o . o f S t . a 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 1967—1969. 22 -84 59 -2,263 268 -1,998 2,836 55 1970. 1,155 6712 150 25 -854 741 1,929 4,765 71 1971 . 1,362 -28 -24 40 1,350 6,115 91 1972. 7 541 200 -47 694 6,810 94 1973. 7 754 -33 721 7,531 93 1972—Dec.. -6 6,810 94 1973—Jan... -4 -4 6,806 94 Feb.. -5 -5 6,801 93 Mar.. -5 -5 6,796 93 Apr.. 18 18 6,814 94 May. -4 -4 6,810 94 June. -6 -6 6,804 94 July . -4 -4 6,800 93 Aug.. -5 -5 6,795 93 Sept.. -4 -4 6.791 93 Oct... 7 754 -4 750 7,541 93 Nov.. -5 -5 7,536 93 Dec.. -5 -5 7,531 93 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. • JANUARY 1974 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili- other foreigners liabilities to Liquid ties to p E e o r n f i d o d Total a a c t f I r g r t r M i a i o s o o n i l m n n F d s s g - i Total t p S l b i i t o e h a a e b i s r b o r n n t y m r i k r e l t e i d s - - - M n T b U o a a o a r t b r n n e . e S k a l d d s e . e s s 3 . t - N v k T b o e e c U o n a r r t o n n e a t . m n S i a b d d b - . a s l s l . e r e - N n v k T b o o n e e U n o a n r r o t n n e a t m . c t S i a b d e d o b . a s s l n s l . e r 4 e - - m r l O i e t a a a i a t r b e b h d k s l i e i e l e l 5 i r y t - - a t m L l o b b i a i e a r t q c i r b o n e o u c i a k s m l i i d a i d s - l - 6 Total t p l S b i i t o a e h a e b i r s b o r n n t y m i r r k e l t e i d s - - - n M T b o U a a o a t r e b r n n e . s S k l a d d 3 e . e s » s . t 7 - z o a m g a n r n t i i t g o a o d o n i a n r n o n t y n r e l n a - . e - i l s - - 8 U.S. notes U.S. 1962 9, 24,268 800 12.914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9, J \2 2 6 6 , , 3 4 9 3 4 3 8 8 0 0 0 0 1 1 4 4 , , 4 4 5 2 9 5 1 1 2 2 , , 4 4 6 6 7 7 1 1 , , 1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 5 5 , , 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3 , , 0 0 4 4 6 6 3 3 5 4 1 1 1 1, , 9 9 6 6 5 0 1964 9, \ 1 2 2 9 9 , , 3 3 6 1 4 3 8 8 0 0 0 0 1 15 5 , , 7 7 8 9 6 0 1 13 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 2 2 0 0 4 4 1 15 5 8 8 7 7 , , 2 3 7 0 1 3 3 3 , , 7 7 5 3 3 0 3 3, , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 , , 7 7 2 2 2 2 1965. 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9, \ ( 3 3 1 1 , , 0 1 2 4 0 5 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 8 4 9 1 6 1 12 2 , , 5 4 3 8 9 4 8 86 6 0 0 2 25 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 9, J \3 3 5 5 , . 6 8 6 1 7 9 1 1 , , 0 0 3 3 3 3 1 1 8 8, ,2 1 0 94 1 1 14 4 , , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 7 7 4 4 1 1 1 1 , , 8 8 0 0 7 7 1 1 1 1 , , 2 0 0 8 9 5 4 4, , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 6 9 7 1 7 1968 9 J \3 3 8 8 , , 4 6 7 8 3 7 1 1 , , 0 0 3 3 0 0 1 1 7 7 , , 4 3 0 4 7 0 1 1 1 1 , , 3 3 1 1 8 8 4 5 6 2 2 9 7 7 0 0 1 1 2 2 , , 5 5 1 1 8 8 2 2 , , 3 3 4 4 1 1 1 1 4 4 , , 4 4 7 7 2 2 4 5 , , 9 0 0 5 9 3 4 4 , , 4 4 4 4 4 4 4 6 6 0 5 9 7 7 2 2 5 2 1969 9, io \ / 4 4 5 5 , , 9 75 1 5 4 1 1 , , 0 0 1 1 9 9 io 1 i5 5 , , 9 9 7 9 5 8 1 11 1 , , 0 0 7 5 7 4 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 , , 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , .9 0 3 6 9 4 5 5 2 2 5 5 6 6 5 6 9 3 1970—]D ec. 9. J \4 4 6 7 , , 9 0 6 0 0 9 5 5 6 6 6 6 2 2 3 3 , , 7 7 8 7 6 5 1 1 9 9 , , 3 3 3 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 , , 0 0 2 2 3 3 6 6 9 9 5 5 1 17 7 , , 1 1 6 3 9 7 4 4 , , 6 6 7 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 6 7 5 8 84 4 6 4 1971—]D ec. u \ J 6 6 7 7 , , 8 6 0 8 8 1 5 5 4 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 3 9 9 , ,0 6 1 7 8 9 1 1 , , 9 9 5 5 5 5 6 6 , , 0 0 9 6 3 0 3 3 , , 3 4 7 4 1 1 1 1 4 4 4 4 1 10 0 , , 9 2 4 6 9 2 4 4 , , 1 1 3 4 8 1 3 3 , , 6 6 9 9 1 4 4 4 4 4 7 7 1 1 , , 5 5 2 2 8 3 1972—1N ov.. 82,373 61,127 40,045 4,834 12,098 3,651 499 14,776 4,745 4,322 423 1,725 Dec.. . 82,883 61,520 39,994 5,236 12,108 3,639 543 14,785 4,952 4,527 425 1,626 1973—JJ an... 82,048 60,796 38,534 5,798 12,110 3,780 574 14,767 4,892 4,467 425 1,593 Feb... 87,854 68,475 45,413 6,377 12,110 3.627 948 12,791 4,968 4,596 372 1,620 Mar.. 1290,884 1271,331 46,924 6,917 1212,128 3,617 1,745 12,955 4,960 4,584 376 1,638 Apr.. . 1390,580 70,748 45,949 6,934 12,245 3,631 1,989 13,052 5,149 4,750 399 1,631 May.. 92,085 70.915 46,112 6,934 12,245 3.628 1,996 14,274 5,147 4,763 384 1,749 June.. 92,185 70,693 45,705 6,934 12,245 3,805 2,004 14,500 5,323 4.940 383 1,669 July.. 93,212 71,019 46,129 6,934 12,245 3,705 2,006 15,420 5,257 4,883 374 1,516 Aug.. 92,569 70,513 45,714 6,906 12,319 3,555 2,019 15,204 5,322 4,987 335 1,530 Sept.. 92.072 69,775 45,172 6,914 12,319 3,355 2,015 15,199 5,479 5,132 347 1,619 Oct. P. 93,171 69,701 45,211 6,929 12,319 3,233 2,009 16,131 5,519 5,145 374 1,820 Nov.p 92.558 67,366 43,756 6,207 12,319 3,233 1,851 17,496 5,689 5,279 410 2,007 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 10 Includes $101 million increase in dollar value of foreign currency by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 cs n Asia Africa cou O n t t h r e ie r s 2 1967 18,194 10,321 1,310 1,582 4,428 250 303 1968 3 /17,407 8,070 1,867 1,865 5,043 259 303 1969 3 J4 \1 1 7 5 , , 3 9 4 7 0 5 4 8 7 , , 0 0 6 7 2 4 1 1 , , 8 6 6 2 6 4 1 1 , , 8 8 8 6 8 5 4 4 , , 9 5 9 5 7 2 2 5 4 4 8 6 2 3 9 0 1 2 1970 3 1 /2 1 3 5 , , 7 9 8 9 6 8 1 7 3 , , 0 6 7 2 4 0 2 1 , , 9 6 5 2 1 4 1 1 , , 9 6 1 8 1 1 4 4 , , 7 5 1 5 3 2 4 5 0 4 7 6 4 29 1 1 4 123,775 13,615 2,951 1,681 4,708 407 413 11997711 55 /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972—Nov 61,127 34,608 4,289 1,444 17,372 694 2,720 Dec 61,520 34,197 4,279 1,731 17,573 777 2,963 1973—Jan 60,796 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 May 70,915 46,646 4,104 1,903 14,425 940 2,897 June 70,693 46,967 4,111 1,998 13,727 992 2,898 July 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.* 69,701 47,515 3,851 1,937 12,601 735 3,062 NOV.p 67,366 46,002 3,820 2,212 11,475 771 3,086 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 T a o n n d o r n e m gi o o n n e a t l a r o y r g i a n n te iz r a n t a i t o i n on s6 a l Payable in dollars IMF Dep osits Total 1 Total Dem D an e d p os T it i s m e 2 b T i c r c 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 r 4 - P f r o a e c r y n i u n e a c r i b i - g e l n s e in m g v o e e n s ld t t - s Total Demand Time 2 b T i c r l c e U l e s a r a . t t S s i e a f u . s i n r - d y s l O t i h e a t o r h b m r e . t 4 r - 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 /41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 \41,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 (55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 \55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 60,654 60,112 7,011 5,379 32,774 14,948 543 1,512 95 242 380 794 60,719 60,222 8,288 5,629 31,850 14,455 496 1,412 86 202 326 799 59,148 58,622 7,452 5,533 30,134 15,504 526 1,380 118 172 279 811 64,218 63,705 7,786 5,595 36,522 13,801 513 1,418 133 144 287 854 65,889 65,341 7,606 5,612 37,947 14,175 548 1,426 114 134 260 918 65,180 64,596 8,118 5,654 36,440 14,383 584 1,429 119 112 221 976 66,729 66,157 8,364 5,714 35,965 16,114 572 1,579 141 119 148 1,172 66,714 66,070 9,113 5,829 34,931 16,197 644 1,569 155 134 169 1,110 67,919 67,312 8,988 5,876 34,556 17,892 607 1,486 206 114 116 1,049 67,389 66,779 8,435 6,139 34,257 17,948 611 1,485 178 116 61 1,129 67,056 66,395 8,754 6,130 33,702 17,809 660 1,552 80 100 62 1,311 68,254 67,678 9,108 6,770 32,869 18,930 577 1,767 70 93 173 1,430 68,490 67,883 9,860 6,857 31,977 19,189 607 1,959 73 95 373 1,419 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. • JANUARY 1974 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions10 Payable in dollars Payable in dollars Payable Total Dema D nd ep osi T ts i me2 T b c i r c l e U e a l r s a t . t e s S i a u s f . n i r 3 - d y s O l t h i e a t o r h b r m e . t 4 r - f r o e c r n u i e n c r i i g - e n s Total Dema D n e d p osi T ts i me2 T bi c r c l U e e a ls r a t . t e S s a i u s . f n i r 3 - d y s O t l h i e t a o r h b r m e t .4 - r 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 /40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 f53,632 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 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 65,503 8,674 6,030 33,640 16,498 660 45,172 1,631 3,226 33,554 6,634 66,487 9,038 6,677 32,696 17,500 577 45,211 1,810 3,846 32,613 6,815 66,531 9,788 6.762 31,604 17,770 607 43,756 2,020 3,780 31,529 6,300 To banks11 To other foreigners TTTToooo bbbbaaaannnnkkkkssss Payable in dollars aaaannnndddd ooootttthhhheeeerrrr ffffoooorrrreeeeiiiiggggnnnneeeerrrrssss:::: EEEEnnnndddd ooooffff ppppeeeerrrriiiioooodddd TTTToooottttaaaallll PPPPaaaayyyyaaaabbbblllleeee iiiinnnn TToottaall Dema D n e d p osi T ts i me2 TT bb cc ii rr ll cc ee UU ee ll aa ss rr aa .. tt tt ss SS ee ii aa uu ff .. ss nn ii rr -- dd yy ss OO ll tt hh ii ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- TToottaall Dema D n e d p osi T ts i me2 TT bb cc rr iill cc ee UU ee ll aa rr ss aa .. tt tt ss SS ee ii aa uu ff .. ss nn ii rr -- dd yy ss OO ll tt hh ii ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- ffff rrrr oooo eeee cccc rrrr uuuu nnnn eeee rrrr cccc iiii ---- iiii gggg eeee nnnn ssss 1969 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 J21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 11,,888866 131 325 220 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,68-8 11,,889955 131 325 220 /13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972—Nov 19,097 14,404 3,938 481 5 9,981 4,322 1,706 2,014 75 528 372 Dec 19,312 14,460 4,659 525 5 9,270 4,527 1,954 2,026 65 481 325 1973—Jan 19,234 14,413 4,155 415 7 9,835 4,467 1,773 2,070 69 555 355 Feb 17,387 12,449 4,084 483 5 7,877 4,596 1,813 2,127 83 573 341 Mar 17,539 12,579 4,144 518 5 7,912 4,584 1,805 2,128 63 588 376 Apr 17,803 12,654 4,335 514 7 7,799 4,751 1,951 2,113 75 611 398 May 19,037 13,889 4,645 535 8 8,701 4,764 1,859 2,116 73 716 385 June 19,440 14,042 5,053 404 8 8,577 4,941 1,965 2,174 70 732 457 July 20,303 15,003 4,957 432 8 9,605 4,883 1,890 2,144 72 776 418 Aug 20,191 14,720 4,806 491 10 9,413 4,987 1,876 2,183 68 861 483 Sept 20,331 14,666 5,071 603 8 8,983 5,132 1,972 2,201 77 881 533 Oct.p 21,276 15,681 5,251 651 7 9,772 5,145 1,977 2,179 76 912 449 Nov.f 22,775 17,016 5,761 693 8 10,554 5,279 2,007 2,289 67 915 480 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 iOForeign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac- 11 Excludes central banks, which are included in "Official institutions." quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop- NOTE.—"Short term" refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the "holdings of dollars" IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti- 1 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop- 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 Area and country Feb. Mar. Apr. May June July Aug. Sept. Oct.f Europe: A Be u l s g t i r u ia m -Luxembourg 1,0 2 9 7 2 2 1,2 1 6 6 7 5 1,2 2 5 8 3 1 1,2 2 4 9 5 2 1,3 3 7 0 3 1 1,3 2 7 9 6 7 1.4 3 5 0 6 5 1, 3 3 0 7 2 8 1,3 2 7 9 7 2 1,4 2 1 0 0 4 Denmark 284 364 400 406 502 489 477 437 409 470 Finland 163 158 142 168 244 194 165 153 145 135 France 4,441 4,483 5,000 5,167 5,327 5,406 5,452 5,246 5,296 4,143 Germany 5,346 10,494 12,990 12,701 12,161 12,003 12,837 12,912 13,236 14,180 Greece 238 224 223 175 219 219 240 236 215 280 Italy 1,338 1,041 968 1,020 1,171 1,072 870 1,506 1,140 1,095 Netherlands 1,468 1,762 2,532 2,543 2,427 2,369 2,029 1,945 2,022 2,534 Norway 978 995 1,018 1,035 1,046 1,049 1,082 1,055 1,024 999 Portugal 416 498 518 502 511 500 477 472 459 467 Spain 256 222 256 250 325 334 282 237 259 284 Sweden 1,184 1,403 1,483 1,682 1,787 1,905 1,951 1,871 1,835 1,787 Switzerland 2,857 2,845 2,901 2,959 3,272 3,268 3,310 3,226 3,309 3,316 Turkey 97 94 105 118 71 75 102 115 72 83 United Kingdom 5,011 4,546 4,657 4,741 5,899 6,317 6.457 5,943 5,593 6,416 Yugoslavia 117 78 58 69 73 66 66 57 58 61 Other Western Europe i 1,483 1,502 1,619 1,772 2,164 2,360 2,965 3,015 3,099 3,427 U.S.S.R 21 14 8 9 11 18 17 16 40 Other Eastern Europe 81 65 71 71 66 74 81 90 114 96 Total 27,134 32,227 36,488 36,924 38,949 39,383 40,621 40,212 39,970 41,425 Canada 3,467 3,306 3,293 3,600 3,796 3,327 3,392 3,786 3,721 3,812 Latin America: Argentina 631 689 687 694 730 727 750 800 889 779 Bahamas 2 539 263 200 228 502 462 796 563 594 456 Brazil 605 648 671 703 768 770 920 732 700 745 Chile 137 136 143 140 137 140 134 126 127 137 Colombia 210 218 184 197 219 200 200 168 167 207 Cuba 6 7 6 7 7 10 7 7 7 7 Mexico 831 800 788 853 843 925 919 975 1,044 1,029 Panama 167 201 171 168 192 186 194 217 204 231 Peru 225 167 172 167 170 180 190 177 178 152 Uruguay 140 138 132 143 150 180 128 126 114 115 Venezuela 1,077 ,051 948 1,044 967 ,054 1,066 1,078 941 1,130 Other Latin American republics 860 827 804 818 778 783 744 791 791 742 Netherlands Antilles and Surinam 86 84 76 72 64 68 78 61 65 70 Other Latin America 44 237 216 243 269 648 408 402 461 532 Total 5,558 5,463 5,197 5,478 5,796 6,323 6,532 6,224 6,283 Asia: China, People's Rep. of (China Mainland 39 37 49 43 44 41 38 43 40 37 China, Republic of (Taiwan) 675 783 816 831 832 846 790 810 802 779 Hong Kong 318 319 337 330 368 341 289 356 349 363 India 98 134 114 125 145 110 141 103 99 105 Indonesia 108 96 89 90 117 155 176 140 254 169 Israel 177 146 137 144 142 161 159 146 173 279 Japan 15,843 14,733 12,344 10,415 9,056 8,458 8,126 8,003 7,680 ,061 Korea 192 210 227 214 231 226 219 217 213 198 Philippines 438 453 513 520 575 544 545 541 482 479 Thailand 171 187 170 166 177 175 146 140 143 163 Other 1,071 897 869 940 873 883 958 1,139 1,165 ,139 Total 19,131 17,995 15,665 13,818 12,560 11,940 11,588 11,640 11,401 10,771 Africa: Egypt 24 17 33 67 29 29 41 34 34 Morocco 12 13 9 8 15 10 11 10 South Africa 115 104 125 125 120 155 169 100 132 103 Zaire 21 23 22 28 45 17 21 27 19 26 Other 768 728 739 798 786 904 803 683 765 747 Total 939 891 917 992 1,025 1,118 1,037 862 962 919 Other countries: Australia 3,027 2,861 2,489 2,882 2,961 2,985 3,202 3,124 3,106 3,169 All other 51 57 54 57 60 71 61 57 62 59 Total 3,077 2,918 2,903 2,939 3,022 3,056 3,263 3,181 3,168 3,228 Total foreign countries 59,306 62,800 64,463 63,751 65,149 65,145 66,432 65,905 65,503 66,487 International and regional: International 3 952 958 980 983 1,132 1,149 1,097 ,123 1,183 1,402 Latin American regional 307 318 320 337 345 329 309 289 298 299 Other regional4 154 141 126 109 102 89 81 72 70 66 Total... 1,412 1,418 1,426 1,429 1,579 1,569 1,486 1,485 1,552 1,767 Grand total 60,719 64,218 65,889 65,180 66,729 66,714 67,919 67,389 67,056 68,254 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. • JANUARY 1974 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1971 1972 1973 1971 1972 1973 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec Apr. Other Western Europe: Other Asia—Cont.: C I I r c y e e p l l a a r n n u d d s , Rep. of 2 1 9 7 0 1 1 2 1 6 1 2 9 5 1 9 3 7 2 1 2 9 2 K L L e a u b o w a s a n i o t n 6 3 0 6 2 4 2 6 0 3 6 1 0 6 3 5 3 5 9 2 5 3 5 6 3 Ot B he o r l iv L i a a tin American republics: 59 55 53 87 65 P M R a y a k u l i a k s y t y a s u n i a I slands (incl. Okinawa) 6 2 2 3 8 8 9 2 2 3 9 3 3 2 5 5 5 8 3 5 5 4 9 9 5 3 9 C H D E E G l c o o a u u s i m S a t t a i a t a i d e l n v m o R i a r c a i d a c l o n a a r Republic 4 9 9 7 8 1 3 0 7 2 9 0 1 1 6 5 7 2 1 1 2 7 8 3 7 8 1 9 2 7 6 8 2 1 3 0 2 3 3 1 1 1 9 2 7 1 2 3 2 7 6 4 1 2 1 1 1 2 8 7 0 0 2 5 6 5 9 4 7 S S S S V r y i a i n i e r u g t i L d a n a i a a p n A m o k r r a e a b (C ia e ylon) 1 4 4 6 3 1 4 1 3 1 7 3 5 9 4 5 4 9 1 4 8 8 5 0 6 5 6 * 1 3 7 3 4 7 4 5 5 4 " 2 9 3 3 5 8 6 9 3 6 Honduras 44 42 50 58 64 Jamaica 19 19 32 41 32 Other Africa: Nicaragua 47 50 66 61 79 Algeria 13 23 31 32 51 Paraguay 15 17 17 22 26 Ethiopia (incl. Eritrea) 12 11 29 57 75 Trinidad & Tobago 14 10 15 20 17 Ghana 6 8 11 10 28 Kenya 13 9 14 23 19 Ot B h e e r r m L u a d ti a n America: (2) (2) (2) (2) 127 L L i ib b e y r a i a 9 2 1 1 27 2 4 3 29 2 6 5 39 3 3 0 ( 371 ) British West Indies 38 32 23 36 100 Nigeria 25 46 56 85 (7) Southern Rhodesia 2 2 2 2 1 Other Asia: Sudan 1 1 5 3 3 Afghanistan 15 19 17 25 19 Tanzania 10 6 6 11 16 Bahrain 35 21 18 24 (7) Tunisia 6 9 7 10 11 C Bu a r m m b a o dia 2 3 1 5 0 5 2 2 3 (3> Z U a g m an b d ia a 14 5 13 3 1 7 0 28 7 ( 179 ) Iran 67 59 88 93 114 Iraq 7 10 9 10 All other: Jordan 3 2 2 4 <2 New Zealand 22 23 27 30 34 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in "Europe." 3 Data exclude "holdings of dollars" of the International Monetary 5 Represent a partial breakdown of the amounts shown in the "other" Fund but include IMF gold investment until Feb. 1972, when investment categories (except "Other Eastern Europe"). was terminated. <> 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- Banks1 foreign- many King- Europe Latin Japan Asia tions ers dom America 2,490 889 1,601 1,505 56 40 46 7 239 655 582 1,703 789 914 695 165 53 110 42 26 152 385 137 902 446 457 144 257 56 164 52 30 111 3 87 \ f 1 1 l, , , 0 0 0 1 0 51 8 0 6 5 5 0 8 6 0 2 0 4 4 4 3 3 5 9 9 0 9 9 9 4 3 3 2 2 2 6 5 5 9 9 9 8 8 8 7 7 8 1 1 1 6 6 6 5 5 5 6 6 6 8 3 3 3 3 3 7 2 2 1 1 1 3 3 3 4 6 6 3 3 3 2 2 2 1,044 617 427 74 257 96 165 61 30 127 30 1,276 613 663 304 258 100 164 59 233 118 71 1,406 697 709 328 269 112 164 66 234 133 96 1,399 686 713 329 274 111 164 68 239 128 98 1,379 688 691 313 274 104 164 68 231 115 96 1,467 769 697 311 274 113 164 68 233 125 94 1,527 770 757 311 305 141 164 68 265 145 93 1 1 1 1 , , , , 4 4 5 5 7 7 0 3 6 3 2 2 7 7 7 7 5 3 5 7 8 5 8 7 7 7 7 7 1 3 5 4 9 8 5 4 3 3 3 3 1 1 1 2 8 5 2 2 2 3 3 3 8 0 0 0 7 5 2 5 1 1 1 1 2 2 1 2 3 7 7 2 1 1 1 1 6 6 6 6 5 5 5 5 6 6 6 6 8 8 7 8 2 2 2 2 4 6 6 6 6 5 3 5 1 1 1 1 3 4 4 4 8 5 0 3 9 8 8 8 5 4 0 1 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

JANUARY 1974 • 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 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.f Nov.f Europe: Belgium-Luxembourg 6 6 6 6 6 6 6 6 6 6 7 7 7 Sweden 85 85 110 135 135 135 135 135 135 135 165 165 165 45 45 45 44 43 44 43 43 42 37 37 37 38 United Kingdom 326 327 327 276 278 300 281 280 275 236 247 290 400 Other Western Europe 79 79 79 79 79 79 85 85 85 85 85 85 85 Eastern Europe 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 545 547 572 544 546 569 555 554 547 504 546 588 700 Canada 559 558 558 559 561 561 560 560 560 560 560 560 567 Latin America: 1 1 1 1 1 1 1 1 4 8 9 9 11 Other Latin America 6 6 6 6 6 6 6 6 3 3 3 3 3 Total 7 7 7 7 7 7 7 7 7 11 12 12 14 Asia: Japan 4,003 4,380 4,867 5,421 5,961 5,978 5,978 5,977 5,977 5,949 5,950 5,950 55,,114433 Other Asia 10 10 10 10 10 10 10 10 9 9 11 11 1111 Total 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 5,154 Africa 133 133 183 183 183 183 183 183 183 183 158 158 158 All other • 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 6,617 International and regional: International 186 186 186 176 186 176 142 72 1 1 21 6 1 Latin American regional 28 28 28 26 26 27 27 27 28 45 45 47 47 Total 214 214 214 202 212 202 169 100 29 46 66 53 48 Grand total 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 6,665 NOTE.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total China, Total g B iu e m l- a C d a a n - i ( R Ta ep iw . a o n f ) m G a e n r y - Italy 2 Korea T la h n a d i- Total m G an er y - 3 Italy e S r w la it n z d - 196 9 4 3,181 1,431 1,129 20 135 100 4 1,750 4 1,084 125 541 197 0 3,563 2,480 2,289 20 25 100 1,083 542 541 197 1 5 9,657 7,829 2,640 20 5,000 22 100 5 1,827 612 1,215 1972—Dec. 15,872 14,333 2,840 20 11,315 22 100 1,539 306 1,233 20 1973—Jan.. 16,016 14,474 2,840 11,471 22 100 1,542 306 1,236 Feb. 15,863 14,474 2,840 20 11,471 22 100 1,389 153 1,236 Mar. 615,870 14,464 2,840 10 11,471 22 100 61,407 153 1,254 Apr. 616,015 14,459 2,840 5 11,471 22 100 61,556 172 1,384 May 16,012 14,456 2,840 2 11,471 22 100 1,556 172 1,384 June, 16,189 14,633 2,840 11,670 22 100 1,556 172 1,384 July. 16,089 14,533 2,840 11,670 22 1,556 172 1,384 Aug. 16,015 14,383 2,690 11,670 22 1,631 172 1,458 Sept. 15,813 14,183 2,490 11,670 22 1,631 172 1,458 Oct.. 15.691 14,233 2,540 11,670 22 1,458 1,458 Nov. 15.692 14,233 2,540 11,670 22 111,,,444555999 111,,,444555999 Dec. 15,669 14,210 2,540 11,670 111,,,444555999 111,,,444555999 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 oblisations 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. • JANUARY 1974 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1971 1972 1973 Area and country Dec. Dec.1 July Aug. Sept. Oct.f NOV.P Europe: Austria 11 9 9 12 10 18 14 15 14 N T D F G G I N P S S S B O O F U Y U t p w w o r i u e e e o u n r t t e . a n a S a h h r l n t r e r r i e g i l g l h t t n i t k . y e e e m w m d a o n z u S i e r r e . c c e u n e e s d a g . a e e r a y n l R r d m W E y a l n a r l a K l k a a y v - n e n L s i i s a d t d n t u e s e g r x r n d e n m o E m E b u u o r r u o o r p p g e e 2 2 5 1 1 1 1 1 4 3 6 5 7 3 3 6 2 5 0 3 6 4 1 1 1 1 9 5 3 7 0 5 0 7 8 9 5 7 0 5 8 3 2 9 2 2 3 3 2 8 1 1 1 1 1 2 5 0 5 4 3 2 2 2 4 4 6 1 0 2 2 5 1 1 5 7 9 1 0 9 2 9 9 8 9 0 5 6 6 8 0 9 3 3 2 2 9 1 1 1 1 1 2 4 5 0 3 4 6 5 2 6 2 2 0 2 1 2 6 1 1 1 5 7 0 9 7 9 9 9 2 0 8 5 6 4 8 0 9 4 3 2 9 2 2 1 1 1 5 4 3 6 1 8 8 2 4 3 2 6 6 3 6 3 2 8 1 5 8 3 8 8 7 6 2 9 1 0 0 4 0 9 6 5 6 4 9 3 3 3 2 1 1 1 4 2 8 6 7 2 5 6 1 6 6 5 6 9 4 1 1 1 7 7 4 7 3 1 6 0 5 9 7 0 9 0 0 6 9 7 3 2 9 3 2 3 3 3 1 1 4 8 9 7 9 6 6 8 9 3 2 2 0 4 5 1 1 1 5 7 9 3 4 9 5 9 9 4 6 9 9 1 6 9 9 2 9 1,0 4 2 2 2 2 3 1 1 6 3 7 0 7 4 0 2 9 2 7 2 5 5 8 3 1 1 1 4 8 8 2 9 1 4 6 8 9 0 6 6 7 4 4 2 8 1,3 2 2 2 2 3 1 1 1 1 4 5 8 7 4 6 0 6 2 7 2 5 2 0 8 8 1 1 6 1 1 8 2 8 6 7 0 0 1 5 5 7 3 4 6 0 4 1,3 4 2 2 3 1 1 1 1 1 0 1 3 4 4 1 5 6 2 9 8 4 1 9 6 1 1 1 4 3 4 2 6 3 2 7 6 7 3 4 6 4 0 6 6 8 0 1,2 4 2 2 3 1 1 1 1 3 6 9 4 7 4 8 2 2 5 7 8 3 3 8 5 5 6 1 7 9 1 2 2 6 3 0 4 7 4 8 2 3 8 0 5 1,1 2 3 5 3 1 1 1 1 6 2 2 2 0 2 9 8 6 5 8 7 4 8 7 5 7 1 1 2 3 2 6 2 5 2 2 2 3 9 2 5 9 2 1 7 6 9 Total 2,114 2,911 3,037 3,396 3,599 3,684 3,526 3,654 3,654 3,682 3,793 Canada 1,627 1,897 1,914 2,305 2,400 2,034 2,168 2,186 1,909 2,210 1,977 Latin America: O O C C P V N C M P U A B B e a e a e u h r o t t r r e r h h n a n t g u h l i b x u h l o e e z e a e g a a e i r r i m e n z m c m u l r u o t a L L b a l i a e y a n i a s a l a n a a t t 2 i i d n n s A A A m m nt e e i r r ll i i e c c s a a n a n r d e p S u u b r l i i n cs a m 4 3 3 2 9 2 3 1 1 1 3 4 0 7 6 6 3 2 8 2 7 3 1 1 5 1 5 4 8 4 0 5 6 9 2 6 8 3 1,2 4 4 6 2 3 3 3 1 0 4 1 7 8 8 4 7 4 3 4 5 1 1 0 8 2 6 8 3 9 9 4 6 5 2 4 3 1,2 4 4 2 3 6 3 3 1 0 4 1 8 7 4 8 4 7 4 3 5 1 1 0 8 2 8 6 9 3 4 9 5 6 2 4 3 1,3 4 4 7 3 3 5 1 1 4 0 0 4 5 8 0 9 8 3 2 4 8 1 3 1 1 5 9 2 5 6 5 6 4 3 3 3 1,3 4 4 4 8 3 3 1 1 4 0 4 0 5 4 8 9 3 7 4 3 9 1 3 8 0 9 1 0 3 8 1 4 7 5 0 3 1,3 4 4 4 2 3 8 3 1 9 0 1 4 9 5 1 9 8 6 3 3 6 1 9 8 2 3 1 4 8 9 0 6 4 8 9 4 1,3 4 4 9 4 4 2 3 1 7 3 9 6 2 2 7 5 4 7 3 3 8 1 6 1 5 5 0 3 3 4 8 1 6 4 0 3 1,3 4 4 9 4 4 2 3 1 3 1 4 5 4 2 6 9 7 5 3 8 3 1 8 5 1 4 2 2 2 4 6 0 8 9 5 3 1,3 4 4 4 6 8 2 4 1 2 0 9 2 5 4 7 1 5 3 3 3 7 1 9 9 1 3 5 0 9 7 2 0 1 9 8 3 1,3 4 4 4 6 2 2 4 8 1 8 3 6 2 0 7 9 3 4 3 2 8 3 1 8 1 9 3 8 3 6 6 5 7 3 0 7 5 1,3 4 4 2 4 4 8 2 5 1 1 5 6 1 6 1 8 4 8 2 5 2 2 1 1 5 9 3 9 2 5 7 1 6 5 0 5 3 7 Total 3,494 4,437 4,437 4,715 4,762 4,925 5,119 5,069 5,185 5,462 5,387 Asia: J T C P O C H I I K I s n n a h h h h t r o o d p d h i a a i i r n l i n a o n e e i i a e g l n p n r l a a a a , , p e n K P s i R d n i o e a e e o n s p p g u le b ' l s i c R o e f p . ( T of a ( i C w h a i n n ) a Mainland) 4,2 2 3 1 1 1 1 8 4 5 2 4 7 2 3 0 7 0 0 1 2 8 9 8 9 2 1 1 4,1 2 3 1 1 1 1 5 9 0 9 9 8 0 4 9 1 8 6 0 3 1 7 5 9 4 4 1 4,1 2 3 1 1 1 1 5 9 0 9 9 0 8 4 9 1 8 6 0 3 1 5 7 9 4 4 5,6 2 3 2 1 1 1 1 1 6 3 3 9 9 2 2 2 5 1 5 1 8 6 7 2 7 0 2 4 6 5,5 2 3 3 1 1 1 1 3 3 9 2 1 3 9 1 3 1 6 8 7 4 6 9 4 2 9 5 6 5,7 2 3 3 2 1 1 1 5 0 4 2 9 5 0 1 7 4 6 4 7 4 4 0 1 3 4 1 3 5,7 2 3 3 1 1 1 1 5 1 4 9 5 3 9 3 8 1 3 8 8 1 2 3 8 7 4 8 8 5,7 3 3 1 1 1 1 1 9 5 3 7 3 1 2 8 8 1 1 0 6 7 3 6 9 5 3 6 7 5,8 3 3 1 1 1 1 1 0 6 4 8 2 7 4 2 4 1 1 1 8 1 1 9 5 8 1 7 9 5,7 2 3 3 1 1 1 1 4 0 4 8 7 2 0 4 2 2 1 5 6 9 9 2 2 5 5 1 8 4 6,0 2 3 3 1 1 1 1 3 6 2 9 7 3 1 5 2 1 1 2 8 5 6 7 6 8 2 4 7 6 Total 5,560 5,589 5,589 7,269 7,116 7,407 7,441 7,321 7,330 7,295 7,660 Africa: S O E M Z o g a t o u h y ir r t e p e h o r t c A co f rica 1 9 2 5 1 6 1 4 6 0 1 1 2 4 2 1 1 3 4 4 3 1 1 4 2 2 1 3 4 4 1 3 1 1 5 2 3 1 1 2 7 5 3 1 1 2 3 6 1 5 6 4 6 3 1 1 4 4 6 3 2 5 3 4 4 1 1 4 4 4 5 4 3 9 0 5 1 1 4 4 7 5 1 9 3 1 5 1 1 4 4 4 5 1 3 8 6 7 1 1 1 3 5 6 5 4 8 1 3 0 1 1 6 3 4 5 1 1 5 7 5 2 Total 288 304 304 327 343 388 391 419 405 406 410 Other countries: A A u ll s o tr t a h l e i r a 1 2 5 8 8 29 4 1 0 2 4 9 0 1 24 5 9 0 2 4 3 7 2 2 4 6 6 0 2 4 7 0 1 2 4 3 1 0 21 3 8 6 22 3 3 6 25 3 1 6 Total 186 330 330 299 280 305 310 271 254 259 287 Total foreign countries 13,269 15,468 15,611 18.311 18.501 18.744 18,956 18,921 18,737 19,314 19,516 International and regional 3 3 3 2 2 1 2 1 1 Grand total 13,272 15,471 15,614 18.312 18.502 18.745 18,957 18,922 18,737 19,316 19,517 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

JANUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c t o i s u a a - l n s t B o a — nk s1 Others C s t t o o i i a o u n l n l n g t e d - s c - - f A e o o a m i c r f g n c a n a f c e o d e c e p r r e c s t - s t - . Other Total w D e i i e t g h p n o e f s r o i s t r s - g c F a o u c n p o n v o r a a r d i t m n p e t , i i c e f e l s g e r i . e s n - , - Other 196 9 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 ri3,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 1971 2 [13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1972—Nov.. 14,419 13,649 5,306 157 2,700 2,448 3,130 3,129 2,085 770 412 219 139 Dec. 3. 1 1 5 5 , , 4 6 7 1 1 4 1 1 4 4 , , 6 7 2 6 5 8 5 5 , , 6 6 7 8 4 2 1 1 6 6 3 3 2 2, , 9 9 7 7 5 5 2 2 , , 5 5 4 3 3 5 3 3 , , 2 2 9 6 8 9 3 3 , , 2 2 0 0 4 4 2 2 , , 4 5 7 8 8 4 8 8 4 4 6 6 4 4 4 4 1 1 2 2 2 2 3 3 1 1 8 8 2 2 1973—Jan. . , 15,172 14,347 5,437 142 2,814 2,480 3,280 3,103 2,527 825 443 253 128 Feb... 17,973 16,902 6,460 162 3,674 2,624 3,608 3,283 3,551 1,071 596 313 162 Mar.. 18,324 17,374 6,534 141 3,683 2,711 3,751 3,464 3,624 951 524 262 165 Apr.. . 18,312 17,494 6,842 146 3,931 2,765 3,834 3,464 3,354 819 460 207 152 May. . 18,502 17,649 6,931 163 3,812 2,956 3,844 3,602 3,271 854 499 237 118 June.. 18,745 17,907 7,285 205 4,037 3,043 3,901 3,963 2,758 838 552 140 147 July. . 18,957 18,095 7,015 162 3,916 2,936 3,891 3,899 3,290 862 561 151 151 Aug.. 18,922 18,036 6,964 176 4,021 2,767 3,967 3,694 3,411 886 488 151 247 Sept.. 18,737 17,961 6,827 155 3,920 2,752 4,088 3,700 3,345 777 459 143 175 Oct.f. 19,316 18,455 7,007 216 3,989 2,802 4,099 3,774 3,575 861 510 187 163 Nov.*5 19,517 18,741 7,078 250 4,093 2,736 4,287 3,788 3,588 775 496 131 148 1 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 E pe n r d i o o d f Total Loans to— O lo t n h g e - r P c fo u a r y r i e r n a i e b g n l n e - U K d n i o n i m t g e - d EE OO uu tt rr hh oo ee pp rr ee Canada AAmm LLaa ee tt rr ii ii nn cc aa Japan OO AA tt ss hh ii ee aa rr co o u t A n h t l e l r r i es Official Other term cies Total institu- Banksi foreign- claims tions ers 1969 3333,,,,222255550000 222,,,888000666 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970 3333,,,,000077775555 222,,,666999888 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971 3333,,,,666666667777 333,,,333444555 575 315 2,455 300 22 130 593 228 1,458 246 583 429 1972—Nov.. .. 4444,,,,777700002222 4,378 819 432 3,127 291 33 143 658 360 1,880 305 863 493 Dec.2... \\\\ (((( 5555 4444 ,,,, ,,,, 0000 9999 1111 5555 4444 4444 4 4 , , 5 5 3 3 9 9 8 83 3 5 3 4 4 3 3 0 0 3 3 , , 2 2 7 7 6 4 4 3 3 7 6 5 4 4 0 0 1 1 4 4 5 5 7 7 0 0 1 4 4 4 0 0 6 6 2 1 , , 0 9 0 9 6 6 3 34 1 8 9 9 8 0 8 1 1 5 50 0 9 3 1973—Jan 5,017 4,536 835 442 3,258 440 41 144 724 403 1,967 353 918 508 Feb 5,126 4,625 836 477 3,311 449 52 135 763 434 1,987 342 930 535 Mar.. . . 5,270 4,763 883 496 3,384 460 47 121 851 453 1,978 336 987 544 Apr 5,413 4,917 903 544 3,469 448 49 122 904 477 2,000 337 1,031 544 May 5,514 5,010 932 545 3,532 456 48 131 923 511 2,000 331 1,059 558 June 5,605 5,096 978 550 3,568 464 45 131 980 523 2,003 311 1,096 561 July 5,626 5,116 957 554 3,605 456 54 128 1,029 517 1,983 310 1,123 535 Aug 5,521 5,009 1,002 514 3,492 466 46 137 1,007 404 1,964 304 1,158 548 Sept 5,385 4,859 1,010 507 3,342 457 70 131 975 418 1,921 252 1,187 501 Oct.?... 5,565 5,009 1,041 537 3,432 476 80 130 1,011 491 1,958 258 1,203 514 Nov.f. . 5,766 5,221 1,127 554 3,540 463 82 138 1,058 484 2,071 251 1,246 516 1 Excludes central banks, which are included with "Official institutions." with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. • JANUARY 1974 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign ch P a u s r e - s Sales c N h s a e a t s l e p e s s u o r r - ch P a u s r e - s Sales c N h s a e a t s l e p e s s u o r r - 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 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.-Nov.f 791 -165 957 970 -13 17,222 12,461 4,761 1,319 2,233 -913 1,570 1,410 160 1972—No v 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—J F a e n b 5 51 6 5 2 -12 5 52 6 7 2 5 57 6 9 2 -52 • 1 1, , 7 8 6 5 1 2 1 1, , 0 1 4 1 5 6 7 7 3 1 6 6 1 1 9 4 1 5 3 1 2 4 3 4 -132 1 1 1 6 9 1 4 1 1 5 4 8 5 49 3 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 J J u u n ly e - -7 7 9 1 - - 6 7 9 1 -9 - - 1 9 1 1 , , 0 3 9 2 7 0 r8 8 9 9 8 9 r4 1 2 9 2 8 1 9 2 4 5 1 1 0 9 3 4 -10 2 0 2 1 1 2 0 3 7 1 1 0 1 7 1 1*2 S A e u p g t -5 4 1 0 2 17 0 -6 2 8 0 -28 8 -3 1 9 2 1 1 , , 3 1 4 7 3 3 r8 9 6 6 4 3 r4 2 7 1 9 0 9 6 6 7 1 1 5 0 7 1 - - 6 3 1 4 1 1 1 1 7 5 1 1 2 0 5 5 -8 1 0 O N c o t v .p .* -69 2 1 9 -1 -5 3 -68 4 6 2 -72 1 2 5 2 3 7 6 1 1, , 9 8 4 0 6 4 1 1 , , 6 7 8 3 9 5 25 7 7 0 1 9 0 7 3 3 3 0 3 5 6 - - 2 2 3 0 8 2 1 1 2 5 9 6 1 1 3 7 1 8 -2 -2 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 Europe 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.-Nov.f 11,879 9,081 2,797 409 -8 306 748 386 281 2,123 107 3 543 21 1972—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 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 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 947 734 212 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 Nov.*.... 1,480 1,071 409 106 27 54 69 66 20 342 -18 -9 108 -14 1 Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 on an a d l 197 0 956 35 48 37 134 118 91 464 128 25 28 -12 324 197 1 684 15 35 197 327 39 612 37 19 -2 -21 39 197 2 1,871 336 77 74 135 357 315 1,293 82 22 323 148 1973—Jan.-No v.J' 1,964 192 -43 -23 270 241 443 1,080 49 28 771 10 25 1972—No v 142 2 30 27 -1 46 42 147 -6 1 1 Dec 289 56 30 14 49 60 210 3 29 38 1973—J F a e n b 2 27 6 0 0 1 6 2 -2 2 2 3 9 0 4 4 9 6 7 6 3 0 1 1 6 49 1 36 1 * 6 1 1 3 1 1 0 -2 6 6 0 Mar 759 45 -22 -7 -3 158 174 4 623 -42 Apr 385 33 65 -96 94 98 16 4 199 68 J M J u u a n l y y e r 1 1 6 6 0 4 1 6 -3 7 1 6 3 - 1 - 1 9 2 5 0 -2 2 2 7 - - 2 1 5 1 0 2 5 7 7 3 -1 4 1 2* 1 10 - 1 6 5 5 3 9 0 Aug.r 138 -5 72 10 109 -1 4 2 24 O Se c p t t .p - - 2 2 5 46 -1 1 4 4 12 1 2 8 6 7 -1 4 11 1 -1 -3 1 9 8 Nov.f. .. -151 -2 28 76 7 124 -21 -209 -48 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 20 291 203 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 Novp.. -753 88 -842 -97 -555 -92 -134 1 35 Sept 333 320 311 314 1972—Nov.... 47 11 36 39 -4 8 -8 * * Dec -167 9 -176 7 -158 -26 -2 2 1 325 379 312 339 1973—Jan -129 9 -138 7 -67 -70 -9 * * 286 336 Feb.. . . 49 -2 51 -3 41 -16 29 * * 372 405 Mar 116 23 93 24 34 8 27 * 1 Apr.... -166 16 -182 22 -193 -6 -5 * * 1973—Mar 310 364 May.. . 1 11 -10 -22 -13 6 6 -1 14 316 243 June... 34 7 27 10 6 13 -13 1 9 290 255 July.... -100 3 -103 -14 -100 * 9 * 3 Aug.. .. -69 5 -75 -21 -44 -4 -8 * 3 Sept.... -25 4 -28 -28 8 -8 -1 « 2 NOTE.—Data represent the money credit balances and Oct.*\.. -240 4 -243 -25 -148 -8 -64 1 1 money debit balances appearing on the books of reporting NOV-P. . -225 9 -234 -47 -78 -6 -104 * * 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 $16,795 million and $17,037 million, respectively, on Sept. 30, 1973. some branches do not adjust the parent's equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange NOTE.—Components may not add to totals due to rounding. rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. • JANUARY 1974 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi- Non- Other Parent branches Other cial bank Total bank Other Total of parent banks insti- 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 1,403 1971—Dec.. . 61,334 4,798 2,311 2,486 54,752 11,211 24,550 1,167 17,823 1,785 1972—Sept 74,906 4,952 2,243 2,709 67,607 11,335 33,395 1,539 21,338 2,346 Oct 74,796 4,967 2,239 2,728 67,599 11,343 33,098 1,549 21,610 2,230 Nov 76,241 4,456 1,824 2,632 69,425 11,350 34,203 1,577 22,295 2,360 Dec 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 22,910 2,268 1973—Jan.r 81,199 4,926 2,327 2,600 74,006 11,945 36,797 1,621 23,643 2,267 Feb.', 87,901 4,325 1,565 2,760 81,067 12,272 42,203 1,747 24,846 2,509 Mar 91,646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 25,679 2,980 Apr 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 26,247 2,979 J M u a n y e r 9 9 2 8 , , 9 8 9 0 4 2 4 4 , , 2 9 1 5 8 6 2 1 , , 3 9 3 2 3 6 2 2 , , 2 6 9 2 2 2 9 8 0 5 , ,5 2 7 5 7 2 1 1 3 3 , , 5 4 2 9 8 0 4 46 2 , , 3 7 1 4 9 6 2 1 , , 0 9 0 0 4 0 2 2 7 8 , , 3 5 3 0 7 4 3 3 , , 1 5 9 9 9 5 July 103,793 5,404 2,505 2,899 94,584 15,316 47,555 2,035 29,678 3,806 Aug 105,131 5,157 2,289 2,868 95,946 15,667 47,411 2,102 30,766 4,029 Sept 110,673 4,853 1,917 2,936 101,022 17,194 49,312 2,242 32,274 4,797 Payable in U.S. dollars 1970—Dec .. 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Dec 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 9,536 577 1972—Sept 48,704 4,685 2,222 2,463 43,141 7,048 23,840 1,105 11,148 879 Oct 48,986 4,669 2,216 2,453 43,556 7,391 23,555 1,084 11,526 761 Nov 49,631 4,173 1,803 2,371 44,664 7,439 24,123 1,083 12,019 793 Dec 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 12,651 817 11997733——JJaann..''"" 54,196 4,592 2,303 2.289 48,828 8,093 26,764 1,063 12,908 777 FFeebb.. '' 57,567 3,985 1,534 2,451 52,692 8,550 29,829 1,097 13,215 891 MMaarr 58,745 3,988 1,957 2,031 53,752 8,438 30,568 1,124 13,622 1,005 AApprr 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 13,839 1,055 JJ MM uu aa nn yy ee rr 6 5 1 8, , 0 8 1 8 9 0 4 3 , , 6 9 0 3 2 0 2 1 , , 2 8 8 9 5 9 2 2 , , 0 3 3 1 1 7 5 5 5 2 , ,8 9 7 2 1 1 8 8 , , 4 5 9 4 3 8 2 3 8 1 , , 6 2 7 9 7 4 1 1 , ,1 1 2 4 9 0 1 1 4 5 , , 5 00 0 5 6 1 1 , , 3 2 5 1 7 8 JJuullyy 64,146 4,799 2,469 2,330 57,867 9,229 31,903 1,220 15,615 1,480 AAuugg 65,434 4,521 2,231 2.290 59,458 10,033 31,387 1,278 16,760 1,455 SSeepptt 68,114 4,415 1,866 2,549 62,015 10,718 32,458 1,281 17,558 1,685 IN UNITED KINGDOM Total, all currencies 11997700——DDeecc 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 6,235 601 1971—Dec 34,552 2,694 1,230 1,464 30,996 5,690 16,211 476 8,619 862 1972—Sept 42,053 2,350 1,253 1,097 38,606 5,651 22,559 650 9,745 1,097 Oct 41,649 2,409 1,386 1,023 38,201 5,751 22,157 630 9,662 1,040 Nov 41,600 1,939 907 1,032 38,643 5,490 22,671 584 9,898 1,018 Dec 43,684 2,234 1,138 1,096 40,430 5,659 23,983 609 10,179 1,020 1973—Jan 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 10,252 966 Feb 48,533 1,945 848 1,097 45,487 5,887 28,473 585 10,542 1,102 Mar 49,696 2,052 1,130 922 46,520 5,783 29,148 663 10,926 1,124 Apr 49,181 1,662 794 868 46,332 5,437 29,255 651 10,989 1,188 J M u a n y e r 4 5 9 1 , , 0 4 8 6 0 0 1 1 , ,8 7 7 4 6 4 1,0 9 1 1 2 0 8 8 3 6 4 4 4 4 6 8 , , 0 0 0 7 1 5 5 5 , , 7 2 2 7 5 9 2 3 8 0 , , 3 3 9 9 4 0 6 6 1 0 4 7 1 1 1 1 , , 2 8 6 0 8 0 1 1 , , 3 5 3 0 6 9 July, 54,265 2,500 1,492 1,008 50,189 6,274 30,826 649 12,440 1,576 Aug 53,153 1,878 937 942 49,692 6,849 29,696 685 12,462 1,583 Sept 56,127 1,473 604 870 52,771 8,022 30,967 660 13,123 1,882 Payable in U.S. dollars 1970—Dec 22,574 6,596 15,655 2,223 9,420 4,012 323 1971—Dec 24,428 2,585 21,493 4,135 12,762 4,596 350 1972—Sept 28,204 2,264 25,463 4,004 16,609 4,851 476 Oct 27,978 2,307 25,244 4,169 16,249 4,827 427 Nov 27,865 1,846 25,579 4,049 16,399 5,132 439 Dec 30,381 2,146 27,787 4,326 17,976 5,485 447 11997733——JJaann 30,652 2,468 27,778 4,184 18,069 5,526 405 FFeebb 32,746 1,814 30,423 4,568 20,219 5,637 508 MMaarr 32,658 1,953 30,183 4,324 20,033 5,827 522 AApprr 31,833 1.539 29,778 4,034 20,119 5,625 515 MMaayy 30,906 1,654 28,666 3,943 18,848 5,874 587 JJuunneerr 32,900 1,784 30,421 3,900 20,447 6,075 694 JJuullyy '' 33,486 2,193 30,569 4,042 20,209 6,319 724 AAuugg 32,935 1.540 30,694 4,887 19,224 6,584 701 SSeepptt 34,401 1,348 32,210 5,399 19,873 6,939 842 IN THE BAHAMAS Total, all currencies 11997700——DDeecc 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—Dec 8,493 1,282 505 778 7,119 3,798 3,320 92 1972—Sept 11,914 1,612 221 1,391 10,150 5,929 4,221 152 Oct 12,017 1,739 251 1,489 10,120 5,836 4,284 157 Nov 12,330 1,586 221 1,365 10,577 6,209 4,368 167 Dec 13,091 1,496 225 1,272 11,419 6,965 4,454 175 1973—Jan.' 13,064 1,387 182 1,206 11,495 6,753 4,742 181 Feb 13,559 1,461 83 1,378 11,860 7,189 4,671 238 Mar 13,764 1,211 90 1,121 12,283 7,520 4,764 271 Apr 13,653 1,407 293 1,113 11,988 6,726 5,262 258 May 14,730 1,498 272 1,227 12,888 7,242 5,647 343 June 16,184 1,917 410 1,507 14,002 8,206 5,796 265 July 17,086 1,929 350 1,579 14,862 8,802 6,060 295 Aug 18,501 2,206 567 1,639 15,426 9,001 6,424 419 Sept 118,665 2,217 469 1,748 15,995 9,420 6,575 454 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Other Offi- Non- Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 1970—Dec. ... Total, all currencies 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 1971—Dec. 3,303 728 2,575 69,340 11,123 39,328 8,208 10,680 2,263 1972—Sept. 3,255 716 2,539 69,198 11,204 38,470 8,236 11,287 2,342 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 3,414 836 2,578 75,272 11,746 42,259 9,236 12,032 2,513 1973—Jan.r 3,967 1,132 2,835 80,848 11,868 46,370 9.387 13,223 3,086 Feb.r 4,137 1,218 2,919 84,066 12,219 48,520 9,454 13,873 3,443 4,095 1,044 3,051 83,345 12,638 47,874 9,538 13,294 3,547 4,548 1,122 3,426 84,655 13,284 48,536 9,331 13,505 3,792 4,580 1,010 3,570 90,177 13,315 53,428 9,593 13,840 4,045 4,491 1,213 3,279 94,940 15,040 55,705 9,676 14,519 4,362 July 4,710 1,085 3,625 95,868 16,002 56,152 8,585 15,128 4,552 4,815 1,178 3,636 100,742 17,017 58,734 8,769 16,221 5,116 2.334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 1970—Dec. .Payable in U.S. dollars 2,674 51 2,163 38,083 6,653 22,069 4,433 4,928 1,276 1971—Dec. 2,833 605 2,227 47,055 7,401 27,133 6,490 6,031 1,204 1972—Sept. 2,789 582 2,207 47,305 7,706 26,770 6,567 6,262 1,232 Oct. 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 3,104 848 2,256 51,81 8,178 30,253 6,913 6,467 1,459 Dec. 2,995 693 2,302 52,113 8.400 29,233 7,680 6,800 1,297 1973—Jan.r 3,466 954 2,511 55,780 8,750 32,023 7,808 7,200 1,568 Feb.r 3,613 1,038 2,575 57.127 8,735 33,131 7,771 7,489 1,691 3,562 886 2,676 55,604 8,657 31,970 7,743 7,234 1,750 4,005 955 3,050 55,636 8,810 32,275 7,361 7,190 1,786 4,036 868 3,167 58,816 8,774 35,503 7,354 7,185 1,845 3,893 1,046 2,847 60,482 9,626 36,271 7,092 7,493 1,961 July 4,158 943 3,215 61,041 10,612 36,616 6,242 7,572 2,157 4,233 1,022 3,211 63,705 11,036 37,874 6,366 8,429 2,376 Sept. IN UNITED KINGDOM 1,339 116 1,222 26,520 2.320 16,533 3,119 4,548 592 1970—Dec. ... Total, all currencies 1,660 111 1,550 32.128 3.401 19,137 4,464 5,126 763 1971—Dec. 1,497 137 1,360 39,517 3,139 23,739 6,272 6,367 1,039 1972—Sept. 1,465 136 1,329 39,225 3,060 23,001 6,309 6,854 959 1,481 132 1,349 39,149 2,928 22,769 6,340 7,112 969 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 1,501 107 1,394 41,933 3,277 23,959 7,285 7,412 913 1973—Jan. 1,844 264 1,580 45,628 3,157 27,038 7,517 7,915 1,062 Feb. 1,858 235 1,624 46,750 3,164 28,119 7.388 8,078 1,088 1,970 165 1,805 46,075 3,397 27,796 7,509 7,373 1,136 2,028 170 1,857 45.792 3,614 27,168 7,324 7,685 1,260 1,958 123 1,835 48,189 3.321 29,372 7,585 7,910 1,313 1,875 164 1,711 50,973 3,883 31,029 7,817 8,245 1,418 July 2,080 171 1,909 49,562 3,731 30,502 6,753 8,575 1,512 Aug. 2,125 161 1,964 52,238 4,118 32,210 6,952 8,957 1,764 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 1970—Dec. .Payable in U.S. dollars 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 1971—Dec. 1.269 86 1,184 26,788 1,926 15,959 5,117 3,787 531 1972—Sept. 1,245 80 1,165 26.759 1,942 15,597 5,216 4,004 473 1.270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 1.335 72 1,264 29,091 2,234 16,205 6,162 4,490 500 1973—Jan. 1,661 226 1,436 31,714 2,188 18,360 6,394 4,771 591 1,676 195 1,481 31,655 2,128 18,334 6,251 4,942 598 1,735 119 1,616 30,782 2,318 17,672 6,245 4,546 533 1,809 138 1,671 29,730 2,225 16,982 5,897 4,626 608 1,731 102 1,629 31,313 2,234 18,424 5,990 4,665 575 1,661 148 1,513 31,645 2,316 18,723 5,868 4,739 595 July 1,846 148 1,698 30,549 2,213 18,671 5,005 4,660 682 1,866 137 1,729 32,342 2,245 19,949 5,126 5,022 809 IN THE BAHAMAS 542 4,183 488 2,872 823 90 1970—Dec. .Total, all currencies 750 7,557 1,649 4,784 1,124 188 1971—Dec. 1,137 10,620 1,935 7,192 1,493 156 1,053 10.793 1,928 7,415 1,450 171 934 11,230 1,982 7,862 1,386 166 1,220 11,703 1,964 8,395 1,344 168 1,137 11.760 1,875 8,502 1,383 167 1,186 12,144 2,223 8,394 1,527 230 1,303 12.195 1,855 8,803 1,537 267 1,126 12,138 1,977 8,505 1,656 389 1,404 12,981 2,238 9,259 1,483 345 1,480 14,370 2,579 10,410 1,381 334 1,374 15,381 3,002 10,762 1,616 331 1,458 16.196 3,499 11,064 1,633 395 1,535 16,561 3,640 10,923 1,999 569 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. • JANUARY 1974 22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. GOVERNMENT SECURITIES (Amounts outstanding; in millions of dollars) Liab. Wednesday L t i i a e b s i 1 l i- s p e l c u . 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- 1968 1972 1973 J S D M u e e a p n c r e t . . . 2 2 2 3 5 7 6 1 (1/1/69) 7 4 6 6 , , , , 0 2 1 9 3 0 0 2 9 4 0 2 J A M u p a n r y e . 3 2 2 1 8 6 . . . . . . . . . 1 1 1 , , , 4 3 4 6 4 7 5 3 4 July 2 1 1 5 8 1 3 . . . . 2 2 1 1 , , , , 1 0 7 6 4 8 6 6 6 6 6 4 July 26... 1,345 1969 S A e u p g t . . 3 2 0 7 . . . . . . 2 1 , , 0 2 2 7 3 0 Aug. 8 1 . . 2 2 , , 2 2 2 7 6 6 15. 1,900 Mar. 26 9,621 22. 2,440 June 25 13,269 Oct. 25... 1,415 29. 2,793 Sept. 24 14,349 Nov. 29... 1,745 Dec. 31 12,805 Dec. 27... 1,406 Sept. 5. 1,512 12. 1,942 1973 19. 1,801 1970 26. 1,731 Jan. 31... 1,413 J M u a n r e . 2 2 5 4 1 1 2 1, , 8 1 8 7 5 2 F M e a b r . . 2 2 8 8 . . . . . . 1,1 7 2 9 7 0 Oct. 1 3 0 . . 1 1 , , 7 69 9 5 0 Sept. 30 9,663 17. 1,814 Dec. 30 7,676 Apr. 25. .. 1,123 24. 1,642 31' 1,768 1971 May 2... 1,238 Mar. 31 2,858 4,358 9... 1,073 Nov. 7. 1,779 June 30 1,492 4,500 16... 1,721 14r 1,870 Sept. 29 2,475 3,578 23... 1,492 21 r 2,496 Dec. 29 909 30... 1,351 28 ' 2,486 1972 June 6... 940 Dec. 1,946 Jan. 26 1,419 13... 1,266 1,973 Feb. 23 1,068 20... 1,242 2,438 Mar. 29 1,532 27... 1,521 1,759 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. 3. DEPOSITS, U.S. TREAS. SECURITIES, 24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of EEnndd ooff UUnniitteedd period Deposits ppeerriioodd TToottaall Short- Short- KKiinngg-- CCaannaaddaa U se . c S u . r T it r i e e a s1 s . Ear g m o a ld r ked Deposits in te v r e m st - Deposits in te v r e m st - ddoomm ments 1 ments 1 1970 148 16,226 12,926 1971 . 294 43,195 13,815 1968 1,638 1,219 87 272 60 979 280 1972--Dec... 325 50,934 15,530 1Q£Q 2 \ f 1 1 , , 4 3 9 1 1 9 1,0 9 6 5 2 2 1 16 1 1 6 1 18 7 3 4 7 8 6 6 6 66 1 3 0 4 5 6 3 9 4 1,141 697 150 173 121 372 443 1973-—Jan 310 50,118 15,526 F M e a b r . .. . . . 4 3 5 2 5 7 3 5 5 6 9 , , 9 3 1 8 4 9 1 1 5 5, , 5 5 1 2 9 2 i1y Q/17 |— uncpcr .*2 . . . \ J 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 57 80 7 4 5 4 8 3 7 Apr... 328 358,255 15,513 May.. 289 58,015 15,511 1972—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 25 8 9 0 5 5 7 5 , ,8 0 5 5 5 4 1 1 5 5 , ,4 4 5 6 5 4 Dec.2-, .. / ( 1 2 , , 9 2 6 5 5 0 1 1 , , 7 4 8 4 9 6 1 5 6 5 9 3 3 3 0 8 7 4 6 2 8 8 7 6 0 9 2 4 5 8 3 5 5 Sept... 250 55,407 15,437 Oct.... 426 54,766 417,122 1973—Jan.. .. 2,458 1,929 92 344 93 921 704 Nov... 420 52,998 17,104 Feb.r.... 2,989 2,218 170 378 224 1,012 1,088 Dec.... 251 52,070 17,068 Mar.r . . . 3,068 2,276 156 412 225 1,100 957 Apr.r. ... 3,037 2,268 118 416 234 1,042 878 1 Marketable U.S. Treasury bills, certificates of in- J M u a n y e r r . . . . . . . . 3 3, , 1 1 9 8 9 6 2 2, , 5 4 3 1 8 2 1 7 3 4 0 4 4 3 5 3 3 2 1 1 3 1 4 1 1 , , 0 0 0 6 8 2 1,0 8 0 7 5 4 c T d u e r r b e 2 r a t e I e s n n d u c c n r i r y e e e s s a . s s s , e e c n r u o e r f t i l e t e i s c e , s ts a p n p r d a i y n a b c b i o p l n e a d ll s y i n a c h n d d a o n ll g n a e o r n s in m a p a n a r d r k e v t i a a n l b u l e f e o o r f U e t i . g h S n e . J A Se u u p l g t y . . r r r . ... 3 3 3 , , , 2 3 2 4 5 0 5 7 0 2 2 2 , , , 4 5 4 7 7 9 9 0 0 1 7 8 3 8 2 6 4 4 4 7 7 8 1 5 4 2 1 1 0 6 6 9 1 7 1 1 1 , , , 0 0 0 6 8 6 1 0 8 9 9 8 3 7 5 1 9 2 U.S. dollar in May 1972. Oct- 2,860 2,194 66 448 152 969 865 3 Includes $15 million increase in Mar. and $160 million i t n io c n re s a r s e e v i a n l u A ed p r t . o i n r e d f o le l c la t r m v a a r l k u e e t o e f x f c o h r a e n ig g n e c r u a r t r e e s n . cy obliga- 1 Negotiable and other readily transferable foreign obligations payable on demand 4 Increase reflects change in par value of 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 u t r h 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 Digitized for FRaAcScoEuRnt s and is not included in the gold stock of the NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in http://fraser.stlouUinsifteedd .Sotragte/s . t n h o e n b U a n n i k te in d g S c ta o t n e c s e . r T ns h e i y n a th re e a U n p i o te r d ti o S n t a o t f e s t h a e n d to t a a r l e c i l n a c im lu s d e o d n i f n o r t e h i e g n f e ig r u s r r es e p s o h r o te w d n b i y n Federal Reserve Bank of St. Louis Tables 25 and 26.

JANUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 25. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1972 1973 1972 1973 Sept. Dec.1 Mar. June*3 Sept. Dec.1 Mar. j June?' Europe: T E O S S S N Y G I N U D G P A F B F t w p w a u o r i t u o a e n e e r u e n h a s a r r t l l n e i e r r g i s y t g t l h i t k t e n e d m t w m o a e n z u e i r r e c e c e r u e n s d g a i a e r y e a n n l r a d m W y a l n a r l a K l a k v y E - n e n L , i i s u a d n d t u F r s e g x o e r d e p n d o m e , m E b R u o e r u p o r . g p o e f 9 1 1 1 1 8 4 7 6 4 0 1 3 1 1 2 2 3 9 3 9 2 2 3 5 8 5 9 0 4 5 3 5 4 9 1 1 1 1 1 4 2 7 6 7 4 1 0 2 1 9 4 5 4 9 2 4 9 3 9 2 5 3 8 2 3 7 2 2 1,0 1 1 1 1 1 0 8 8 0 2 6 5 0 1 1 1 9 3 4 2 1 2 4 4 9 7 1 7 7 6 6 5 3 4 2 8 1 1 1 1 1 2 7 5 8 6 4 0 0 2 1 1 1 4 2 5 3 7 2 8 1 6 6 2 0 7 3 5 7 9 4 6 7 1 1 1 1 7 2 0 2 2 8 6 0 8 6 1 1 1 1 2 4 2 1 3 1 4 2 5 3 5 4 5 3 0 3 3 7 9 9 2 1 1 1 4 4 9 0 2 3 6 7 5 8 3 7 1 1 1 1 1 1 7 5 2 0 0 0 3 1 8 7 8 0 4 9 6 9 5 1 1 1,0 2 1 1 1 4 4 4 2 2 2 2 2 7 3 6 5 7 3 9 7 1 1 1 4 2 7 0 1 3 8 0 9 9 2 6 8 7 4 6 4 2 7 1,1 2 2 1 1 5 3 4 4 8 2 2 0 5 8 7 3 5 9 1 1 1 1 1 0 5 3 5 9 2 3 7 2 7 2 9 5 7 4 2 2 6 9 1,3 2 2 2 1 1 8 4 4 9 2 0 9 8 2 4 3 2 5 0 1 1 1 1 5 0 5 6 3 9 4 0 5 1 2 6 6 9 6 4 7 9 4 i | i 1,3 3 1 1 2 6 9 2 9 1 8 2 4 1 2 9 4 1 9 1 7 4 1 0 1 9 5 7 8 9 1 9 8 0 3 0 5 9 9 0 0 7 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: C C C A B h u r r o a g i l b l o z e a e i m n l t b in ia a 2 1 1 4 6 7 6 3 1 1 8 5 8 9 1 2 3 1 9 8 5 7 1 4 3 1 2 0 7 8 * 4 2 1 7 4 3 7 * 1 3 5 3 6 3 2 9 3 1 1 4 3 5 7 1 3 9 5 1 1 4 3 7 6 0 4 8 8 1 1 4 3 7 7 0 1 4 0 1 1 3 2 6 7 6 9 2 6 1 N V O B P U M Pe a a e e t r e r h n n t h u x u h e a e a g i r . z m m c u u o A a L a a e y n s . l A a t 2 i . l l r e e s p a u n b d li c S s urinam, 29 3 22 1 3 0 11 9 2 5 5 7 3 2 1 3 1 1 7 9 5 6 8 5 0 7 3 4 2 2 6 1 1 5 1 7 6 4 7 0 8 2 4 8 2 3 1 1 6 8 3 4 4 5 0 7 3 4 2 8 3 1 1 7 3 2 8 3 6 8 1 5 1 9 2 1 7 3 5 1 6 0 9 4 6 7 4 1 5 1 2 9 4 8 8 1 1 0 1 0 9 4 0 9 2 5 1 9 9 6 4 8 3 1 2 4 7 4 7 3 6 3 5 1 1 9 3 7 3 9 0 1 5 3 2 4 5 6 5 2 7 2 1 0 9 7 4 3 0 1 5 9 2 0 4 1 5 1 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 31 1 * * j 10 China, Rep. of (Taiwan) 26 28 26 33 35 51 67 65 61 76 Hong Kong 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 P K h o i r li e p a p ines 1 5 6 2 1 0 5 2 1 0 5 2 1 5 9 1 1 9 8 6 5 3 7 4 6 9 3 4 6 8 3 4 4 7 7 4 4 0 7 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 25 32 37 20 7 7 16 25 23 South Africa 1177 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 6 , 4 * 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, importfrs, 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. • JANUARY 1974 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total PP dd aa oo yy ll iinn ll aa aa bb rr ll ss ee cu P f r o a r r y i e e n a n i b g c l n i e e s Total PP dd aa oo yy ii ll nn ll aa aa bb rr ll ss ee D ba e n p k o s s i a ts b r w o i a t d h in reporter's Other name 1969—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 / 1,786 1,399 387 3,710 3,124 221 365 \ 2,124 1,654 471 4,159 3,532 244 383 1970—June., 2,387 1,843 543 4,457 3,868 234 355 Sept.. 2,512 1,956 557 4,361 3,756 301 305 Dec.., 2,677 2,281 496 4,160 3,579 234 348 1971—Mar.. 2,437 1,975 462 4,515 3,909 232 374 June.. 2,375 1,937 438 4,708 4,057 303 348 Sept.. 2,564 2,109 454 4,894 4,186 383 326 Dec.1 / 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,004 4,467 290 247 1972—Mar.. 2,844 2,407 437 5,177 4,557 318 302 June. 2,925 2,452 472 5,331 4,685 376 270 Sept.. 2,933 2,435 498 5,495 4,833 432 230 Dec.1 / 3,115 2,630 484 5,723 5,074 411 238 1 3,324 2,825 499 6,068 5,394 393 281 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 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r c a Japan O A t s h i e a r Africa o A th l e l r 1969—June.. 1,325 1,952 168 368 447 195 76 216 142 229 72 40 Sept.. 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec. 1 1,725 2,215 152 433 496 172 73 388 141 249 69 42 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970— J S M u e a p n r t e . . . . . . 2 2 2 , , , 3 5 7 5 8 8 8 7 5 2 2 2 , , , 7 7 8 5 8 4 7 5 4 1 1 1 5 5 6 7 9 1 7 7 7 1 3 2 2 5 0 5 5 6 8 7 2 0 3 0 1 1 1 7 8 8 7 1 0 6 7 6 5 4 3 4 4 5 7 5 8 7 8 6 1 1 1 6 5 4 6 8 4 2 2 2 8 8 8 8 4 8 7 7 7 6 1 3 5 4 5 4 7 8 Dec... 3,102 2,950 146 708 669 183 60 618 140. 292 71 64 1971— J M u a n r e . . . , . 3 3 , , 1 1 7 7 2 7 2 2 , , 9 9 8 8 2 3 1 15 5 1 4 6 6 8 8 8 7 6 67 7 7 0 1 1 8 8 2 0 6 6 3 3 6 6 2 1 5 5 1 1 6 3 1 8 3 3 1 0 2 2 7 7 7 5 7 7 2 4 Sept.. 2,939 3,019 135 672 765 178 60 597 133 319 85 75 Dec.1 3,159 3,118 128 705 761 174 60 652 141 327 86 85 3,138 3,118 128 705 767 174 60 653 136 325 86 84 1972— J M u a n r e . . . 3 3 , , 0 3 9 0 3 0 3 3 , , 1 2 9 5 1 5 1 1 2 0 9 8 7 7 1 1 3 3 7 7 8 9 7 7 1 1 7 8 5 8 6 6 1 0 6 67 6 1 5 1 16 3 1 7 3 3 5 7 9 7 8 8 6 1 9 8 3 5 Sept.. 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec.1 3,540 3,369 162 715 833 184 60 659 156 406 87 109 3,858 3,472 179 755 870 187 63 698 134 394 80 111 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

JANUARY 1974 • EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) PPeerriioodd 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 ) D ( e k n r m on a e r ) k (m Fi a n r la k n k d a ) F (f r r a a n n c c e ) ( G D e e r u m ts a c n h y e mark) 1969. 111.10 3.8654 1.9942 92.855 13.299 23.774 19.302 25.491 1970. 111.36 3.8659 2.0139 95.802 13.334 23.742 18.087 27.424 1971 113.61 4.0009 2.0598 99.021 13.508 23.758 18.148 28.768 1972. 119.23 4.3228 2.2716 100.937 14.384 24.022 19.825 31.364 1972- 120.74 4.3172 2.2670 100.326 14.601 24.000 19.657 31.262 1973- 127.16 4.3203 2.2665 100.071 14.536 23.986 19.671 31.288 Feb 135.46 4.8582 2.3981 100.440 15.386 24.728 20.987 33.273 141.29 4.8759 2.5378 100.333 16.275 25.628 22.191 35.548 141.50 4.8330 2.4895 99.928 16.099 25.872 21.959 35.252 141.50 4.9082 2.5356 99.916 16.241 25.277 22.341 35.841 141.58 5.2408 2.6643 100.160 17.130 26.731 23.472 38.786 July 141.78 5.8124 2.8151 100.049 18.041 27.202 24.655 42.821 141.48 5.5917 2.7035 99.605 17.521 27.314 23.527 41.219 146.83 5.5695 2.7089 99.181 17.480 27.042 23.466 41.246 Oct 148.22 5.5871 2.7328 99.891 17.692 27.202 23.718 41.428 148.22 5.2670 2.5882 100.092 16.744 26.894 22.687 38.764 Dec 148.33 5.1150 2.4726 100.058 16.089 26.104 21.757 37.629 PPeerriioodd (r I u n p d e ia e ) ( I p r o e u la n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o l l a l y a s r i ) a M (p e e x s i o c ) o e N rl e a t n h d - s Ze N a e l w an d (guilder) (dollar) 1969, 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 111.21 1970. 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 111.48 1971 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 113.71 1972 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 119.35 1972- 12.467 234.48 .17146 .33196 35.531 8.0000 30.962 119.53 1973- 12.494 235.62 .17079 .33136 35.523 8.0000 31.084 119.52 Feb 12.910 242.75 .17421 .36041 37.679 8.0000 33.119 126.87 13.260 247.24 .17604 .38190 39.922 8.0000 34.334 132.21 13.255 248.37 .16971 .37666 40.307 8.0000 33.890 132.99 13.340 253.05 .17100 .37786 40.333 8.0000 34.488 132.34 13.753 257.62 . 16792 .37808 40.865 8.0000 36.582 132.40 13.605 253.75 .17200 .37801 43.121 8.0000 38.700 135.02 13.220 247.57 .17423 .37704 43.859 8.0000 37.596 135.33 Sept 12.987 241.83 .17691 .37668 43.361 8.0000 38.542 145.07 12.938 242.92 .17656 .37547 43.641 8.0000 40.011 148.64 12.767 238.70 .16904 .35941 41.838 8.0000 37.267 147.74 Dec 12.328 231.74 .16458 .35692 41.405 8.0000 35.615 144.34 Period 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 ) Sri ( ru L p a e n e k ) a1 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 ) 196 9 13.997 3.5013 138.90 1.4266 16.741 19.342 23.186 239.01 197 0 13.992 3.4978 139.24 1.4280 16.774 19.282 23.199 239.59 197 1 14.205 3.5456 140.29 1.4383 16.800 19.592 24.325 244.42 197 2 15.180 3.7023 129.43 1.5559 16.057 21.022 26.193 250.08 1972—Dec. 15.187 3.7248 127.57 1.5753 14.936 21.080 26.526 234.48 1973—Jan.. 15.128 3.7280 127.55 1.5755 14.904 21.092 26.820 235.62 Feb., 16.038 3.8562 134.91 1.6355 15.407 21.935 29.326 242.75 Mar. 16.954 4.1005 141.43 1.7183 15.774 22.582 31.084 247.24 Apr., 16.428 3.9563 141.70 4.7217 15.777 22.161 30.821 248.37 May, 17.196 4.0050 141.65 1.7224 15.883 22.567 31.494 253.05 June, 18.192 4.2175 148.07 1.7229 16.538 23.746 32.757 257.62 July. 18.932 4.4624 148.63 1.7385 16.431 24.732 35.428 253.75 Aug. 18.145 4.3243 148.52 1.7553 15.948 24.070 33.656 247.57 Sept. 18.048 4.2784 148.50 1.7610 15.768 23.769 33.146 241 .83 Oct.. 18.285 4.3014 148.54 1.7576 15.481 23.942 33.019 242.92 Nov. 17.872 4.1155 148.45 1.7479 15.503 23.019 31.604 238.70 Dec. 17.651 3.9500 148.66 1.7571 15.044 22.026 31.252 231.74 1 Ceylon renamed Sri Lanka under new constitution, 1972. 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 • JANUARY 1974 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Dec. 31, 1972 Country 1973 Per Month cent effective Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Argentina. 18.0 Feb. 1972 Austria.... 5.5 Nov. 1972 666...000 Belgium.. . 5.0 Dec. 1972 55..5500 666...000 66..55 77..7755 Brazil 18.0 Feb. 1972 Canada... 4.75 Oct. 1971 55..2255 55..7755 66..2255 66..7755 Chile 7.0 Jan. 1972 China, Rep. of (Taiwan). 9.25 May 1971 1100..55 1100..7755 Colombia 14.0 May 1970 Costa Rica 5.0 June 1966 Denmark 7.0 Oct. 1972 88..00 99..0000 Ecuador.... 8.0 Jan. 1970 Egypt 5.0 May 1962 El Salvador. 4.0 Aug. 1964 Ethiopia 6.50 Aug. 1970 Finland.... 7.75 Jan. 1972 999...222555 France 7.5 Nov. 1972 888...555000 99..55 1111..00 Germany, Fed. Rep. of., 4.5 Nov. 1972 55..00 66..00 77..00 Ghana 8.0 July 1971 Greece 6.5 Sept. 1969 Honduras 4.0 Feb. 1966 Iceland... 5.25 Jan. 1966 India 6.0 Jan. 1971 77..00 Indonesia. 6.0 May 1969 Iran. 7.0 Oct. 1969 Ireland. .. 8.0 Dec. 1972 Italy 4.0 Apr. 1972 Jamaica. 6.0 June 1972 77..00 Japan... 4.25 June 1972 55..00 55..55 66..00 77..00 99..0000 Korea... 13.0 Jan. 1972 Mexico.. 4.5 June 1942 Morocco 3.50 Nov. 1951 Netherlands... 4.0 Nov. 1972 55..00 66..00 66..55 77..00 88..0000 New Zealand. 6.0 Mar. 1972 Nigeria 4.50 June 1968 Norway 4.5 Sept. 1969 Pakistan 6.0 May 1972 88..00 Peru 9.5 Nov. 1959 Philippine Republic. 10.0 June 1969 Portugal 4.0 Dec. 1972 55..55 55..0000 South Africa 6.0 Aug. 1972 Spain 5.0 Oct. 1971 66..00 Sri Lanka1 6.5 Jan. 1970 Sweden 5.0 Nov. 1971 Switzerland 3.75 Sept. 1969 44..5500 Thailand 5.0 Oct. 1959 Tunisia 5.0 Sept. 1966 Turkey 9.0 Sept. 1970 888...000 88..7755 United Kingdom. 9.0 Dec. 1972 88..7755 888...555 77..7755 77..5500 1111..5500 Venezuela 5.0 Oct. 1970 Vietnam 18.0 Sept. 1970 i Ceylon renamed Sri Lanka under new constitution, 1972. Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of paper, maturity, collateral, guarantee, etc. NOTE.—Rates shown are mainly those at which the central bank either Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish producdiscounts or makes advances against eligible commercial paper and/or tion, import substitution industries and manufacture of exports; 8 per govt, securities for commercial banks or brokers. For countries with cent for other agricultural, industrial and mining paper; more than one rate applicable to such discounts or advances, the rate Philippines—6 per cent for financing the production, importation, and disshown is the one at which it is understood the central bank transacts tribution of rice and corn and 7.75 per cent for credits to enterprises enthe largest proportion of its credit operations. Other rates for some gaged in export activities. Preferential rates are also granted on credits to of these countries follow: rural banks; and Argentina—3 and 5 per cent for certain rural and industrial paper, de- f United Kingdom—On Oct. 9, 1972, the Bank of England announced: pending on type of transaction; "With effect from Friday October 13th the Bank's minimum lending rate Brazil— 8 per cent for secured paper and 4 per cent for certain agricultural will until further notice be the average rate of discount for Treasury bills paper; established at the most recent tender plus one half percent rounded to the Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent nearest one quarter percent above. Although the rate will therefore be for loans to make up reserve deficiencies. automatically determined by this formula it will for convenience be made Colombia—5 per cent for warehouse receipts covering approved lists of known each Friday afternoon concurrently with and in the same manner products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent as the results of the Treasury bill tender. The regular weekly bank rate for rediscounts in excess of an individual bank's quota; announcement will be discontinued from now on." Therefore, the mini- Costa Rica—5 per cent for paper related to commercial transactions mum lending rate as of last Friday of the month will be carried in place of (rate shown is for agricultural and industrial paper); Bank rate. a E g c r u i a c d u o lt r u — ra 5 l p p e u r r p c o e s n e t s , f o 7 r s p p e e r c ia c l e n a t dv fo a r n c b es a n a k n d a c f c o e r p t b a a n n c k e s ac f c o e r p ta in n d c u es s tr f i o a r l p V e e r n e c z e u n e t l a f — or 2 ad p v er a n c c e e n s t a f g o a r i n r s e t d i g s o c v o e u r n n ts m e o n f t ce b r o t n a d in s , a a g n r d ic u 5 l l t A u re p e p r a c p e e n r t , f 4 o l r /2 purposes, and 10 per cent for advances to cover shortages in legal reserves; rediscounts of certain industrial paper and on advances against promissory Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. notes or securities of first-class Venezuelan companies. Honduras—Rate shown is for advances only. Vietnam—10 per cent for export paper; treasury bonds are rediscounted Indonesia—Various rates depending on type of paper, collateral, com- at a rate 4 percentage points above the rate carried by the bond; and modity involved, etc.; there is a penalty rate of 24 per cent for banks whose loans exceed quan- Japan—Penalty rates (exceeding the basic rate shown) for borrowings titative ceilings. from the central bank in excess of an individual bank's quota; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 - y e t y o- 2 3 m P b b r o a i i l n n m ls k t , e h s3 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e t o y - C d b r l e e a a p a t n o e r k s i s n i s 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 m Da o d y n a - y e t y o 7 - 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y t e o y - d P is r r c i a v o t a u e t n e t 1972 33333333........5555555555555555 33333333........6666666655555555 66666666........0000000066666666 55555555........0000000022222222 44444444........8888888833333333 33333333........8888888844444444 33..0044 44..3300 22..1155 11..9977 44..8811 1973 55555555........4444444433333333 55555555........2222222277777777 1111111100000000........4444444455555555 99999999........4444444400000000 88888888........2222222277777777 77777777........9999999966666666 1972—De c 33333333........6666666666666666 33333333........7777777711111111 88888888........0000000088888888 77777777........7777777766666666 66666666........2222222233333333 55555555........5555555577777777 777...333222 4.25 66666.....6666699999 33333.....1111122222 33333.....2222200000 44..7755 1973—Ja n 33333333........7777777799999999 33333333........7777777722222222 88888888........7777777766666666 88888888........4444444499999999 77777777........6666666666666666 66666666........5555555555555555 777...222333 4.75 55555.....5555588888 33333.....1111166666 22222.....7777788888 55..0000 Feb 33333333........9999999911111111 33333333........9999999933333333 99999999........3333333344444444 88888888........1111111144444444 88888888........3333333311111111 77777777........3333333300000000 777...777111 5.75 22222.....1111188888 22222.....3333333333 11111.....5555555555 55..0000 Mar 44444444........2222222288888888 44444444........2222222211111111 99999999........7777777766666666 88888888........1111111166666666 77777777........5555555522222222 77777777........5555555500000000 777...444999 5.75 1111111111.....3333377777 11111.....5555533333 .....6666611111 55..0000 Apr 44444444........7777777733333333 44444444........5555555533333333 88888888........6666666644444444 77777777........8888888877777777 77777777........2222222200000000 77777777........2222222255555555 777...444666 5.75 1111144444.....8888844444 11111.....2222222222 .....7777777777 55..0000 May 55555555........0000000088888888 44444444........6666666677777777 88888888........3333333355555555 77777777........4444444455555555 88888888........2222222299999999 77777777........1111111111111111 777...777111 5.75 77777.....4444400000 22222.....8888899999 33333.....8888888888 55..0000 June 55555555........4444444400000000 55555555........0000000000000000 88888888........1111111144444444 77777777........1111111122222222 66666666........6666666666666666 66666666........5555555555555555 777...444666 7.00 1111100000.....9999900000 33333.....5555599999 44444.....2222288888 55..0000 July 55555555........6666666677777777 55555555........2222222288888888 99999999........0000000066666666 88888888........3333333355555555 55555555........8888888899999999 66666666........2222222255555555 777...888999 7,00 1111155555.....7777788888 55555.....5555588888 55555.....6666655555 55..0000 Aug 66666666........4444444477777777 55555555........8888888877777777 1111111122222222........7777777788888888 1111111100000000........9999999988888888 99999999........7777777700000000 88888888........9999999999999999 888...888777 1111100000.....6666633333 55555.....9999922222 77777.....2222244444 55..2255 Sept 66666666........4444444411111111 66666666........3333333311111111 1111111122222222........1111111122222222 1111111111111111........3333333377777777 99999999........1111111133333333 99999999........5555555500000000 999...777333 99999.....7777766666 55555.....6666677777 77777.....9999977777 Oct . . . 66666666........5555555566666666 66666666........5555555544444444 1111111111111111........3333333377777777 1111111100000000........7777777755555555 1111111100000000........5555555533333333 99999999........5555555500000000 1111100000.....5555577777 55555.....2222255555 77777.....9999933333 Nov 66666666........4444444488888888 66666666........5555555566666666 1111111133333333........3333333388888888 1111111111111111........7777777766666666 88888888........8888888800000000 99999999........5555555500000000 1111111111.....3333300000 55555.....2222299999 77777.....8888888888 Dec 66666666........3333333399999999 66666666........5555555588888888 1111111133333333........7777777744444444 1111111122222222........4444444411111111 99999999........5555555577777777 99999999........4444444466666666 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 DDDaaattteee q K ( u U i a b o n U n d a t g j i . s a . t d S 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 p f n a o r d v e f o a o r d n ) PP dd ff (( (( rr pp oo 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 ee aa oo nn vv dd ee ff tt tt oo oo ii rr vv nn ee )) C q a u A n i o n a s t e d d C a an a q d u A a b o U d t a j . a s . S t i . s i t o o n U S n ta it te e s d C S ( a f p n a o r v a e f o d a r d a ) CC PP dd ff (( (( dd oo rr aa ii —— ++ ss ee oo rr nn cc )) mm ww ll aa )) oo ll aa dd aa ii oo uu oo uu rr ii rr rr nn nn aa ss mm dd tt nn ii CC nn (( cc aa ff NN ee aa nn oo nn vv aa ee ff tt tt oo dd ii rr vv aa ee )) 1973 JJuullyy 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 AAuugg.. 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 SSeepptt.. 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 Dec. 7 12.32 7.55 4.77 -5.47 -0.70 6.43 6.23 7.55 -1.32 0.48 -0.84 14 12.29 7.49 4.80 -7.62 -2.82 6.38 6.17 7.49 -1.32 0.04 -1.28 21 12.29 7.21 5.08 -6.76 -1.68 8.38 6.17 7.21 -1.04 -0.10 -1.14 28 12.25 7.36 4.89 -6.65 -1.76 6.36 6.15 7.36 -1.21 -0.24 -1.45 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 • JANUARY 1974 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 S n ta 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 41,160 4,732 10,206 26,220 192 90 259 729 1,544 46 22 792 5,778 10,487 208 152 282 792 1,642 50 16 834 44,890 5,830 10,487 28,575 208 152 281 792 1,638 50 12 834 5 5 , , 8 8 3 3 0 0 1 1 0 0 , , 4 4 8 8 7 7 2 20 0 8 8 1 1 5 5 2 2 2 2 8 8 1 1 7 7 9 9 3 3 1 1 , ,6 6 0 2 3 1 5 5 0 0 1 12 2 8 8 3 3 4 4 44,880 5,830 10,487 28,565 208 152 282 793 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, 880' 5,826 10,487 p2S,565 208 282 793 1,603 50 834 6,474 11,652 231 312 881 1,781 927 6,476 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-—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 4,469 133 264 142 156 17 41 Aug 87 16 69 92 53 3,835 4,469 133 142 156 17 4 1 Sept 888777 11116666 66669999 9922 555333 3333,,,,888833335555 4444,,,,444466669999 111133333333 111144442222 111155556666 11116666 4411 Oct 999777 11118888 77777777 555999 4444,,,,222266661111 4444,,,,999966666666 111144448888 111155558888 111177773333 11119999 NOV.P 11118888 77777777 4444,,,,222266661111 4444,,,,999966666666 111144448888 111155558888 111177773333 11118888 Italy Japan a L n e o b n - Libya M s a i l a a y- Mexi- Moroc- N la et n h d e s r - N w o a r y - P s a ta k n i- Peru 2,404 328 52 182 68 2 158 21 1,756 31 53 67 2 2 , , 4 4 0 1 0 4 3 33 2 8 9 1 6 3 7 6 1 1 9 9 3 3 6 6 8 8 31 1 1 10 6 9 6 2 21 1 1 1 , , 7 7 1 3 1 0 1 1 8 8 5 5 3 3 2 65 0 2,923 356 122 288 85 66 165 21 1 ,697 24 54 20 2,956 413 86 288 85 63 169 21 1,720 25 54 25 2,887 532 86 288 85 48 176 21 1 ,787 23 54 40 2,884 679 87 322 85 58 184 21 1,909 33 55 40 3,130 801 94 350 93 63 188 23 2,059 36 60 41 3,130 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 801 94 350 93 63 188 23 2,059 37 60 41 3,134 802 350 93 63 188 23 2,059 37 60 41 3,134 802 350 93 63 186 23 2,063 37 60 41 3,134 802 350 93 63 184 23 2,063 37 60 41 3,134 802 350 93 63 182 23 2,065 37 60 41 3,134 802 350 93 63 23 2,065 37 60 41 3,483 891 388 103 70 29 2,294 41 67 3,483 891 390 103 2,294 41 67 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • 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 ed - U gu r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n t o t t r l l e . ments 4 1965. 576 73 425 810 202 3,042 96 116 2,265 155 401 19 -558 1966. 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 1967, 699 69 583 785 203 3,089 92 97 1,291 140 401 22 -624 1968. 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 1969. 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 1970. 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 1971. 921 108 410 498 200 2,909 82 130 775 148 391 51 310 1972--Nov 1,021 117 662 541 217 3,158 89 122 800 169 425 56 255 Dec 1,021 117 681 541 217 3,158 89 136 800 133 425 56 218 1973--Jan 1,022 117 706 542 220 3,162 89 136 810 133 425 56 218 Feb 1,022 117 711 542 220 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 89 136 810 133 425 56 204 Aug 1,035 117 740 542 220 3,162 89 136 797 133 425 56 205 Sept 1,036 116 738 542 220 3,162 89 136 797 133 425 56 213 Oct 11,,115544 129 820 602 244 3,512 99 115511 114488 472 61 227 NOV.P 112299 880099 660022 224444 33,,551133 9999 447722 6611 223377 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, at $38 through Septv 1973, and at $42.22 thereafter) Africa North and South America Asia Other World production i A So fr u i t c h a Ghana Zaire U St n a i t t e e s d C a a d n a - M ic e o x - N ra ic g a u - a Co b l i o a m - India Japan P p h in ili e p s - 1,445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 1,410.0 1,068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 1,420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 1,420.0 1,090.7 24.8 6.0 60.1 89.1 6.3 3.7 7.7 3.4 23.7 20.0 1,450.0 1,128.0 24.6 6.2 63.5 84.3 6.9 4.0 7.1 3.7 24.8 21.1 1.098.7 24.4 6.0 52.3 79.1 5.3 3.7 6.6 4.1 27.0 22.2 1.109.8 27.5 5.3 54.3 77.2 5.6 3.0 7.1 4.0 32.2 23.0 94.2 6.3 .4 .5 .3 2.7 91.5 6.0 .5 .7 .4 84.3 6.3 .5 '.3 88.2 6.2 .8 .3 86.5 6.1 .5 .3 88.5 6.3 .5 .4 86.6 6.2 .6 .2 86.0 6.8 .6 87.6 6.4 .6 88.3 5.6 r90.2 5.7 88.2 5.7 7.0 i Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 STOCK MARKET CREDIT • JANUARY 1974 SECURITY CREDIT REPORTED BY LENDERS SUBJECT TO MARGIN REGULATIONS, JUNE 30, 1973 (In millions of dollars) Regulation T Regulation U i RReegguu-- TTyyppee ooff ccrreeddiitt llaattiioonn GG TToottaall NYSE Other Commercial Other members brokers and Total banks banks 3 Total dealers 2 Margin credit: Subject to margin requirements: Margin stock4 66,,111199 7766 66,,119955 887766 9 888855 160 77777,,,,,222224444400000 Convertible bonds 221122 44 221166 5522 1 5533 1 222227777700000 Subscription issues 2200 2211 1155 1155 3333366666 "Plan lenders"5 5522 5555522222 Total (.6,351) (81) (6,432) (((999444333))) (((111000))) (((999555333))) ((221133)) (((((77777,,,,,555559999988888))))) Not subject to margin requirements: Nonmargin stock® 111,,,999777111 333 111,,,999777333 11111,,,,,999997777733333 Total (6,351) (81) (6,432) (((222,,,999111444))) (((222,,,999222666))) (213) (((((99999,,,,,555557777711111))))) At banks reporting less than $250 000 n.e.c.7.. 222111222 (((111333))) 222111333 222221111133333 Total 6,351 81 6,432 333,,,111222666 333,,,111333999 213 99999,,,,,777778888844444 111444 1 Excludes loans to brokers and dealers. 5 Credit extended to finance purchases through qualified stock option 2 Includes data for firms that are members of the American Stock Ex- and employee stock purchase plans. change but not of the New York Stock Exchange that report directly to 6 Loans to purchase or carry over-the-counter (OTC) stock not on the the Board of Governors of the Federal Reserve System and for other Federal Reserve Board's OTC margin stock list and secured by restricted broker-dealers reporting voluntarily to the National Association of collateral in whole or in part. Securities Dealers. 7 Security credit extended under Regulation U by banks reporting less 3 Includes U.S. agencies of foreign banks and mutual savings banks. than $250,000 of such loans, not included in detail above. 4 Includes bank loans for which part of the collateral was not restricted. Such loans may contain some credit to purchase or carry convertible bonds. NOTE.—Details may not add to totals due to rounding. MARGIN CREDIT BY SOURCE SECURITY CREDIT AT BANKS BY TYPE1 (In millions of dollars) (In millions of dollars) Outstanding on Brokers Banks Others Total June 30 June 30 Category 1971 1972 1973 1968 6666666,,,,,,,333333333333334444444 1969 5555555,,,,,,,222222233333333333333 1970 4444444,,,,,,,111111111111117777777 22222,,,,,000004444466666 222224444455555 66666,,,,,444440000088888 Loans to purchase or carry margin stock, 1971 5555555,,,,,,,000000055555550000000 22222,,,,,000003333355555 222226666666666 77777,,,,,333335555511111 secured by— 1972 8888888,,,,,,,000000066666661111111 22222,,,,,555555555522222 222225555544444 1111100000,,,,,888886666677777 a. Stocks (except as described in (c) below). . 678 840 885 1973 6666666,,,,,,,444444433333332222222 22222,,,,,999992222266666 222221111133333 99999,,,,,555557777711111 b. Convertible bonds 58 51 53 c. Stocks acquired with subscription rights... 16 15 15 d. Restricted collateral, in part 55 49 61 NOTE.—See footnotes to table above. Total 807 955 1,014 Loans to purchase or carry nonmargin stock, secured by a. Bank stock, entirely or in part 2 958 1,262 b. Other restricted collateral, entirely 1,016 528 542 c. Other restricted collateral, in part 212 158 169 Total 1,228 1,644 1,973 All other loans to purchase or carry securities3. 1,263 1,274 Total 3,298 3,873 2,987 1 Includes all banks reporting total security credit of $250,000, or more. 2 Series available beginning June 1972. 3 Series discontinued June 1973. NOTE.—Details may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1974 • STOCK MARKET CREDIT A 97 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS AT BROKERS CARRYING MARGIN ACCOUNTS, JUNE 30, 1966-73 1 (In millions of dollars) 1966 1967 1968 1969 1970 1971 1972 DEBIT BALANCES Cash on hand and in banks 601 686 879 1,003 746 633 591 Securities— Borrowed 515 805 1,361 1,247 668 888 1,030 Sold, delivery pending (failed to deliver) 823 1,588 3,843 2,268 804 1,413 1,089 Net debit balances due from member firms of national securities exchanges 257 291 507 524 224 318 344 Debit balances due from all other customers, exclusive of exchange members or allied exchange members in reporting firms—Total.. 5,846 6,232 : 9,287 8,356 5,615 7,142 10,438 In stock margin accounts 6,150 5,002 3,836 4,743 7,689 In convertible bond margin accounts 101 162 198 208 243 In subscription accounts 105 85 48 41 36 In cash accounts 2,690 2,682 1,162 1,842 1,866 In other accounts 241 424 372 308 604 Net debit balances in individual investment and trading accounts of exchange members or allied exchange members in reporting firms.. 90 109 102 133 81 120 144 Debit balances in— Firm investment accounts 358 477 682 743 665 647 642 Firm trading and underwriting accounts 1,240 1,618 1,801 2,471 2,651 3,615 5,225 Commodity margins on deposit with banks, and commodity guaranty funds on deposit 55 49 67 83 74 83 80 All other debit balances 519 1,024 1,112 1,429 1,313 1,313 1,380 Total. 10,304 12,880 19,640 18,258 12,841 16,172 20,963 CREDIT BALANCES Money borrowed—Total 3 3,969 3,690 4,144 4,394 3,872 4,995 9,145 From banks and trust companies: In New York City 2,518 2,215 2,460 2,780 2,083 2.924 5,463 Elsewhere in the United States 859 903 966 825 892 989 2,393 From U.S. agencies of foreign banks 552 494 601 517 303 337 411 From other lenders (not including members of national securities exchanges) 117 272 594 746 878 Securities— Loaned 664 674 1,544 1,357 704 931 1,071 Bought, delivery pending (failed to receive) 851 1,660 4,127 2,485 894 1,548 1,161 Net credit balances due to member firms of national securities exchanges 231 309 446 396 203 288 423 Credit balances due to other customers exclusive of exchange members or allied exchange members in reporting firms—Total 2,479 3,363 5,499 5,398 3,642 3.925 3,640 In free credit balances in cash accounts 2,932 2,563 1,761 2,045 1,870 In free credit balances in stock and convertible bond margin accounts... 619 718 512 401 312 In credit balances in short accounts 1,072 931 633 585 603 In other net credit balances 1,100 1,186 736 895 855 Credit balances and money borrowed which are subordinated to general creditors under approved agreements 154 190 248 381 454 504 634 Net credit balances in the individual investment and trading accounts of exchange members or allied exchange members in reporting firms. 59 81 112 134 121 87 74 Credit balances in firm investment and trading accounts 270 556 616 752 595 769 1,020 Net balance in capital accounts 4 and profit and loss accounts and general partners' or voting stockholders' drawing accounts 1,125 1,353 1,748 1,987 1,639 2,023 2,530 All other credit balances 504 704 1,052 973 717 1,103 1,266 Total. 10,304 12,880 19,471 18,258 12,841 16,172 21,963 MEMO: Money borrowed according to collateral: Secured by customers' collateral: Entirely by obligations of U.S. Govt, or its agencies 18 63 127 60 Entirely by bonds other than convertible bonds and U.S. Govt. securities 100 103 30 56 53 50 199 By nonexempt securities or mixed collateral 2,919 2,184 2,817 2,868 ,971 2,215 4,922 Secured by collateral of the firm or of exchange members or allied exchange members in reporting firms: Entirely by obligations of U.S. Govt, or its agencies 136 336 302 805 1,514 1,884 Entirely by bonds other than convertible bonds and U.S. Govt. securities 147 127 102 109 283 296 598 B U y n s n e o c n u e r x ed em b p o t r r s o e w cu in r g it i o e t s h o er r t m ha ix n e d su c b o o l r la d t i e n r a a t l e d to general creditors.. 645 3 926 1 97 1 2 6 90 3 3 0 70 1 9 9 8 2 74 1 1,41 6 4 7 Total. 3,969 3,690 4,144 4,394 3,872 4,995 9,145 Amount to be repaid for securities sold under repurchase agreements. . 122 326 450 550 1,223 1,197 ,926 Number of firms 328 326 365 371 363 313 310 1 Member firms of either NYSE or AMEX. Prior to 1968, annual totals monthly in the table on Stock Market Customer Financing, page A-36, do not include data for firms which were members of AMEX but not but the data differ somewhat because of sampling error in the monthly NYSE. series, statistical discrepancies in reporting, and differences in the date 2 Because of a change in reporting format in 1968, the items "debit of reporting. balances due from all other customers exclusive of general partners or 3 Excluding subordinated borrowing. voting stockholders" and "credit balances due to other customers ex- 4 Excluding subordinated indebtedness included in the item "Credit clusive of general partners or voting stockholders" for prior years are not balances and money borrowed, etc.," above. comparable with those for 1968. The difference results essentially from a change in the procedure of netting credit balances against debit balances NOTE.—End-of-month figures. For a discussion of customer debit for customers with more than one account at a brokerage firm. The sub- balances and other figures in this table, see, respectively, "Margin Account item of debit balances "in stock margin accounts" is conceptually equiva- Credit," June 1968 BULLETIN, and "Statistics on Margin Accounts," lent to credit extended to margin customers by brokers, as reported Sept. 1936 BULLETIN. 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 SAMUEL B. CHASE, JR., Adviser to the Board GORDON B. GRIMWOOD, Assistant Director JOHN J. HART, Special Assistant to the Board ARTHUR L. BROIDA, Assistant to the Board and Program Director for FRANK O'BRIEN, JR., Special Assistant to the MURRAY ALTMANN, Special Assistant to the Contingency Planning Board 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 JAMES L. PIERCE, Associate Director PETER M. KEIR, Adviser STANLEY J. SIGEL, Adviser LEGAL DIVISION MURRAY S. WERNICK, Adviser DIVISION OF FEDERAL RESERVE BANK KENNETH B. WILLIAMS, Adviser OPERATIONS THOMAS O'CONNELL, General Counsel JAMES B. ECKERT, Associate Adviser JOHN NICOLL, Assistant General Counsel EDWARD C. ETTIN, Associate Adviser RONALD G. BURKE , Director ROBERT S. PLOTKIN, Assistant General ROBERT J. LAWRENCE, Associate Adviser E. MAURICE MCWHIRTER, Associate Counsel ELEANOR J. STOCKWELL, Associate Adviser Director BALDWIN B. TUTTLE, Assistant General JOSEPH S. ZEISEL, Associate Adviser WALTER A. ALTHAUSEN, Assistant Director Counsel JAMES L. KICHLINE, Assistant Adviser HARRY A. GUINTER, Assistant Director ANDREW F. OEHMANN, Special Assistant STEPHEN P. TAYLOR, Assistant Adviser JAMES R. KUDLINSKI, Assistant Director to the General Counsel THOMAS D. THOMSON, Assistant Adviser P. D. RING, Assistant Director GRIFFITH L. GARWOOD, Adviser LOUIS WEINER, Assistant Adviser HELMUT F. WENDEL, Assistant Adviser 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 CHARLES L. HAMPTON, Associate Director CHESTER B. FELDBERG, Secretary RALPH C. BRYANT, Director GLENN L. CUMMINS, Assistant Director THEODORE E. ALLISON, Assistant Secretary JOHN E. REYNOLDS, Associate Director HENRY W. MEETZE, Assistant Director NORMAND R. V. BERNARD, Assistant ROBERT F. GEMMILL, Adviser WARREN N. MINAMI, Assistant Director Secretary REED J. IRVINE, Adviser RICHARD S. WATT, Assistant Director ELIZABETH L. CARMICHAEL, Assistant SAMUEL I. KATZ, Adviser Secretary BERNARD NORWOOD, Adviser DIVISION OF PERSONNEL SAMUEL PIZER, Adviser GEORGE B. HENRY, Associate Adviser DIVISION OF SUPERVISION KEITH D. ENGSTROM, Director HELEN B. JUNZ, Associate Adviser AND REGULATION CHARLES W. WOOD, Assistant Director tNoRMAN S. FIELEKE, Assistant Adviser FREDERIC SOLOMON, Director OFFICE OF THE CONTROLLER BRENTON C. LEAVITT, Deputy Director tOn 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 JOHN D. SMITH, Assistant Director *On leave of absence. CO CO 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. STERN LIGHT, Deputy Manager, System Open Market Account DAVID E. BODNER, Deputy Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL JAMES F. ENGLISH, JR., FIRST FEDERAL ALLEN P. STULTS, SEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT GABRIEL HAUGE, SECOND FEDERAL DONALD E. LASATER, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JAMES F. BODINE, THIRD FEDERAL GEORGE H. DIXON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL EUGENE H. ADAMS, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT THOMAS I. STORRS, FIFTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT LAWRENCE A. MERRIGAN, SIXTH FEDERAL HAROLD 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 Norman F. Beach 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 Robert E. Kirby Walter H. MacDonald Cincinnati 45201 Graham E. Marx Fred O. Kiel Pittsburgh 15230 Douglas Grymes Robert D. Duggan Richmond 23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall Baltimore 21203 James G. Harlow Charlotte 28201 Charles W. DeBell Jimmie R. Monhollon Culpeper Communications J. Gordon Dickerson, Jr. Center 22701 Atlanta 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham 35202 William C. Bauer Hiram J. Honea^ Jacksonville 32203 Gert H. W. Schmidt Edward C. Rainey Nashville 37203 Edward J. Boling Jeffrey J. Wells New Orleans 70161 Edwin J. Caplan 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 L. Terry Britt Minneapolis 55480 Bruce B. Dayton Bruce K. MacLaury James P. McFarland M. H. Strothman, Jr. Helena 59601 William A. Cordingley Howard L. Knous Kansas City 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boy sen Denver 80217 Maurice B. Mitchell George C. Rankin Oklahoma City 73125 Joseph H. Williams William G. Evans Omaha 68102 Durward B. Varner Robert D. Hamilton Dallas 75222 John Lawrence Philip E. Coldwell Charles T. Beaird ' T. W. Plant El Paso 79999 Gage Holland Frederic W. Reed Houston 77001 T.J. Barlow James L. Cauthen San Antonio 78295 Marshall Boykin, III Carl H. Moore San Francisco 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi JohnB. Williams Los Angeles 90051 Joseph R. Vaughan Gerald R. Kelly Portland 97208 John R. Howard William M. Brown Salt Lake City 84110 Sam H. Bennion A. Grant Holman Seattle 98124 C. Henry Bacon, Jr. 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 NIES. 1967. 29 pp. $.25 each; 10 or more to one address, $.20 each. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 year or $.60 each in the United States and its each; 10 or more to one address, $.85 each. possessions, Bolivia, Canada, Chile, Colombia, TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 Costa Rica, Cuba, Dominican Republic, Ecuador, each; 10 or more to one address, $.85 each. Guatemala, Haiti, Republic of Honduras, Mexico, U.S. TREASURY ADVANCE REFUNDING, JUNE Nicaragua, Panama, Paraguay, Peru, El Salvador, 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or Uruguay, and Venezuela; 10 or more of same issue more to one address, $.40 each. to one address, $5.00 per year or $.50 each. Else- BANK CREDIT-CARD AND CHECK-CREDIT PLANS. where, $7.00 per year or $.70 each. 1968. 102 pp. $1.00 each; 10 or more to one FEDERAL RESERVE CHART BOOK ON FINANCIAL address, $.85 each. AND BUSINESS STATISTICS. Monthly. Subscrip- INTEREST RATE EXPECTATIONS: TESTS ON YIELD tion includes one issue of Historical Chart Book. SPREADS AMONG SHORT-TERM GOVERNMENT $6.00 per year or $.60 each in the United States SECURITIES. 1968. 83 pp. $.50 each; 10 or more and the countries listed above; 10 or more of same to one address, $.40 each. issue to one address, $.50 each. Elsewhere, $7.00 SURVEY OF FINANCIAL CHARACTERISTICS OF per year or $.70 each. CONSUMERS. 1966. 166 pp. $1.00 each; 10 or HISTORICAL CHART BOOK. Issued annually in Sept. more to one address, $.85 each. Subscription to monthly chart book includes one SURVEY OF CHANGES IN FAMILY FINANCES. 1968. issue. $.60 each in the United States and countries 321 pp. $1.00 each; 10 or more to one address, listed above; 10 or more to one address, $.50 each. $.85 each. Elsewhere, $.70 each. REPORT OF THE JOINT TREASURY-FEDERAL RE- THE FEDERAL RESERVE ACT, as amended through SERVE STUDY OF THE U.S. GOVERNMENT SE- December 1971, with an appendix containing pro- CURITIES MARKET. 1969. 48 pp. $.25 each; 10 visions of certain other statutes affecting the Federal or more to one address, $.20 each. Reserve System. 252 pp. $1.25. JOINT TREASURY-FEDERAL RESERVE STUDY OF REGULATIONS OF THE BOARD OF GOVERNORS OF THE GOVERNMENT SECURITIES MARKET: THE FEDERAL RESERVE SYSTEM. STAFF STUDIES—PART 1. 1970. 86 pp. $.50 each; PUBLISHED INTERPRETATIONS OF THE BOARD OF 10 or more to one address, $.40 each. PART 2. GOVERNORS, as of June 30, 1973. $2.50. 1971. 153 pp. and PART 3, 1973. 131 pp. Each DEBITS AND CLEARING STATISTICS AND THEIR USE. volume $1.00; 10 or more to one address, $.85 1959. 144 pp. $1.00 each; 10 or more to one each. address, $.85 each. OPEN MARKET POLICIES AND OPERATING PROCE- SUPPLEMENT TO BANKING AND MONETARY STA- DURES—STAFF STUDIES. 1971. 218 pp. $2.00; TISTICS. Sec. 1. Banks and the Monetary System. 10 or more to one address, $1.75 each. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. REAPPRAISAL OF THE FEDERAL RESERVE DIS- 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. 2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. volume $3.00 each; 10 or more to one address, Sec. 10. Member Bank Reserves and Related Items. $2.50 each. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 THE ECONOMETRICS OF PRICE DETERMINATION pp. $.35. Sec. 12. Money Rates and Securities CONFERENCE, October 30-31, 1970, Washington, Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; 24 pp. $.35. Sec. 15. International Finance. 1962. 10 or more to one address, $4.50 each. Paper ed. 92 pp. $.65. Sec. 16 (New). Consumer Credit. $4.00 each; 10 or more to one address, $3.60 each. 1965. 103 pp. $.65. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- INDUSTRIAL PRODUCTION—1971 edition. 383 pp. ERATE FLUCTUATIONS IN HOUSING CON- $4.00 each; 10 or more to one address, $3.50 each. STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 BANK MERGERS & THE REGULATORY AGENCIES: or more to one address, $3.60 each. APPLICATION OF THE BANK MERGER ACT OF LENDING FUNCTIONS OF THE FEDERAL RESERVE 1960. 1964. 260 pp. $1.00 each; 10 or more to BANKS: A HISTORY, by Howard H. Hackley. 1973. one address, $.85 each. 271 pp. $3.50 each; 10 or more to one address, THE PERFORMANCE OF BANK HOLDING COMPA- $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 FEDERAL FISCAL POLICY IN THE 1960's. 9/68. BUSINESS FINANCING BY BUSINESS FINANCE COM- Studies and papers on economic and financial subjects PANIES. 10/68. that are of general interest in the field of economic HOUSING PRODUCTION AND FINANCE. 3/69. research. THE CHANNELS OF MONETARY POLICY, Staff Eco- Summaries only printed in the BULLETIN nomic Study by Frank de Leeuw and Edward Gramlich. 6/69. (Limited supply of mimeographed copies of full REVISION OF WEEKLY SERIES FOR COMMERCIAL text available upon request for single copies) BANKS. 8/69. EURO-DOLLARS: A CHANGING MARKET. 10/69. EXAMINATION OF THE MONEY STOCK CONTROL RECENT CHANGES IN STRUCTURE OF COMMER- APPROACH OF BURGER, KALISH, AND BABB, by CIAL BANKING. 3/70. Fred J. Levin. March 1973. 18 pp. SDR's IN FEDERAL RESERVE OPERATIONS AND OBTAINING THE YIELD ON A STANDARD BOND FROM STATISTICS. 5/70. A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS, by James L. Kichline, P. Mi- MEASURES OF SECURITY CREDIT. 12/70. chael Laub, and Guy V. G. Stevens. May 1973. MONETARY AGGREGATES AND MONEY MARKET 30 pp. CONDITIONS IN OPEN MARKET POLICY. 2/71. THE DETERMINANTS OF A DIRECT INVESTMENT BANK FINANCING OF MOBILE HOMES. 3/71. OUTFLOW WITH EMPHASIS ON THE SUPPLY OF FUNDS, by Frederic Brill Ruckdeschel. June 1973. INTEREST RATES, CREDIT FLOWS, AND MONETARY 171 pp. AGGREGATES SINCE 1964. 6/71. MORTGAGE COMMITMENTS ON INCOME PROPER- TWO KEY ISSUES OF MONETARY POLICY. 6/71. TIES: A NEW SERIES FOR 15 LIFE INSURANCE SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. COMPANIES, 1951-70, by Robert Moore Fisher and Barbara Negri Opper. Aug. 1973. 83 pp. BANK RATES ON BUSINESS LOANS—REVISED SERIES. 6/71. Printed in full in the BULLETIN INDUSTRIAL PRODUCTION—REVISED AND NEW MEASURES. 7/71. (Staff Economic Studies shown in list below. REVISED MEASURES OF MANUFACTURING CAPAC- Except for Staff Papers, Staff Economic Studies, and ITY UTILIZATION. 10/71. 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- SEASONAL FACTORS AFFECTING BANK RESERVES. STRUCTION OF HOUSING. 3/72. 2/58. CONSTRUCTION LOANS AT COMMERCIAL BANKS. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste- 6/72. phen H. Axilrod. 10/61. SOME ESSENTIALS OF INTERNATIONAL MONETARY SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. REFORM. 6/72. 7/62. CHARACTERISTICS OF FEDERAL RESERVE BANK INTEREST RATES AND MONETARY POLICY, Staff DIRECTORS. 6/72. Paper by Stephen H. Axilrod. 9/62. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN- MEASURES OF MEMBER BANK RESERVES. 7/63. OVER—REVISED SERIES. 7/72. REVISION OF BANK DEBITS AND DEPOSIT TURN- RECENT REGULATORY CHANGES IN RESERVE RE- OVER SERIES. 3/65. QUIREMENTS AND CHECK COLLECTION. 7/72. RESEARCH ON BANKING STRUCTURE AND PER- YIELDS ON NEWLY ISSUED CORPORATE BONDS. 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. REVISED SERIES ON COMMERCIAL AND INDUS- SURVEY OF FINANCE COMPANIES, 1970. 11/72. TRIAL LOANS BY INDUSTRY. 2/67. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 THE PUBLIC INFORMATION ACT—ITS EFFECT ON AMENDMENTS. 12/72. MEMBER BANKS. 7/67. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE REVISION OF THE MONEY STOCK MEASURES AND BONDS. 8/67. MEMBER BANK RESERVES AND DEPOSITS. 2/73. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. 1960-67. 4/68. 4/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 FEDERAL RESERVE BULLETIN • JANUARY 1974 STATE AND LOCAL BORROWING ANTICIPATIONS RATES ON CONSUMER INSTALMENT LOANS. 9/73. AND REALIZATIONS. 4/73. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. YIELDS ON RECENTLY OFFERED CORPORATE 10/73. BONDS. 5/73. CHANGES IN TIME AND SAVINGS DEPOSITS, APRIL- FEDERAL FISCAL POLICY, 1965-72. 6/73. JULY 1973. 10/73. SOME PROBLEMS OF CENTRAL BANKING. 6/73. NEW SERIES FOR LARGE MANUFACTURING COR- OPEN MARKET OPERATIONS IN 1972. 6/73. PORATIONS. 10/73. FINANCIAL DEVELOPMENTS IN THE THIRD CHANGES IN BANK LENDING PRACTICES, 1972.7/73. QUARTER OF 1973. 11/73. BANKING AND MONETARY STATISTICS, 1972. Se- MONEY SUPPLY IN THE CONDUCT OF MONETARY lected series of banking and monetary statistics for 1972 only. 3/73 and 7/73. POLICY. 11/73. CAPACITY UTILIZATION IN MAJOR MATERIALS IN- U.S. ENERGY SUPPLIES AND USES. 12/73. DUSTRIES. 8/73. TREASURY AND FEDERAL RESERVE FOREIGN EX- TREASURY AND FEDERAL RESERVE FOREIGN EX- CHANGE OPERATIONS, INTERIM REPORT. 12/73. CHANGE OPERATIONS. 9/73. BALANCE OF PAYMENTS PROGRAM: REVISED CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- GUIDELINES FOR BANKS AND NONBANK FINAN- MERCIAL BANKS. 9/73. CIAL INSTITUTIONS. 1/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published peric y, but not monthly, see page A-3) Acceptances, bankers', 11, 31, 33 Demand deposits—Continued Agricultural loans of commercial banks, 22, 24 Subject to reserve requirements, 17 Arbitrage, 93 Turnover, 14 Assets and liabilities (See also Foreigners): Deposits {See also specific types of deposits): Banks, by classes, 18, 22, 23, 24, 37 Accumulated at commercial banks for payment of Federal Reserve Banks, 12 personal loans, 30 Nonfinancial corporations, current, 48 Banks, by classes, 18, 23, 27, 37 Automobiles: Federal Reserve Banks, 12, 13, 88 Consumer instalment credit, 54, 55, 56 Postal savings, 23 Production index, 58, 59 Subject to reserve requirements, 17 Discount rates {See Interest rates) Bank credit proxy, 17 Discounts and advances by Reserve Banks {See Loans) Bankers' balances, 23, 26 Dividends, corporate, 48 {See also Foreigners, claims on, and liabilities to) Dollar assets, foreign, 75, 81 Banks for cooperatives, 38 Bonds {See also U.S. Govt, securities): Earnings and hours, manufacturing industries, 65 New issues, 45, 46, 47 Employment, 62, 64, 65 Yields and prices, 34, 35 Branch banks: Farm mortgage loans, 49, 50 Assets, foreign branches of U.S. banks, 86 Federal agency obligations, 11, 12, 13, 14 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Federal finance: Brokerage balances, 85 Receipts and outlays, 40, 41 Business expenditures on new plant and equipment, 48 Treasury operating balance, 40 Business indexes, 62 Federal funds, 7, 22, 24, 28, 33 Business loans {See Commercial and industrial loans) Federal home loan banks, 38, 39, 51 Federal Home Loan Mortgage Corporation, 53 Capacity utilization, 62 Federal Housing Administration, 49, 50, 51, 52, 53 Capital accounts: Federal intermediate credit banks, 38, 39 Banks, by classes, 18, 23, 28 Federal land banks, 38, 39 Federal Reserve Banks, 12, 13 Federal National Mortgage Assn., 38, 39, 52 Central banks, 92, 94 Federal Reserve Banks: Certificates of deposit, 28 Condition statement, 12 Coins, circulation, 15 U.S. Govt, securities held, 4, 12, 14, 42, 43 Commercial and industrial loans: Federal Reserve credit, 4, 6, 12, 14 Commercial banks, 17, 22, 31 Federal Reserve notes, 12, 13, 15 Weekly reporting banks, 24, 29 Federally sponsored credit agencies, 38, 39 Commercial banks: Finance companies: Assets and liabilities, 17, 18, 22, 23, 24 Loans, 24, 54, 55, 57 Consumer loans held, by type, 55 Paper, 31, 33 Deposits at, for payment of personal loans, 30 Financial institutions, loans to, 22, 24 Loans sold outright, 31 Float, 4 Number, by classes, 18 Flow of funds, 70 Real estate mortgages held, by type, 50 Foreign: Commercial paper, 31, 33 Currency operations, 11, 12, 13, 75, 81 Condition statements {See Assets and liabilities) Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Construction, 62, 63 Exchange rates, 91 Consumer credit: Trade, 73 Instalment credit, 54, 55, 56, 57 Foreigners: Noninstalment credit, by holder, 55 Claims on, 82, 83, 88, 89, 90 Consumer price indexes, 62, 66 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Consumption expenditures, 68, 69 Corporations: Gold: Profits, taxes, and dividends, 48 Certificates, 12, 13, 15 Security issues, 46, 47 Earmarked, 88 Security yields and prices, 34, 35 Net purchases by United States, 74 Cost of living {See Consumer price indexes) Production, 95 Currency and coin, 5, 9, 23 Reserves of central banks and govts., 94 Currency in circulation, 5, 15, 16 Stock, 4, 75 Customer credit, stock market, 36, 96 Government National Mortgage Assn., 52 Gross national product, 68, 69 Debits to deposit accounts, 14 Debt {See specific types of debt or securities) Hours and earnings, manufacturing industries, 65 Demand deposits: Housing permits, 62 Adjusted, commercial banks, 14, 17, 23 Housing starts, 63 Banks, by classes, 18, 23, 27 Ownership by individuals, partnerships, and Income, national and personal, 68, 69 corporations, 30 Industrial production index, 58-61, 62 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 FEDERAL RESERVE BULLETIN • JANUARY 1974 Instalment loans, 54, 55, 56, 57 Real estate loans: Insurance companies, 37, 42, 43, 50, 51 Banks, by classes, 22, 25, 37, 50 Insured commercial banks, 20, 22, 30 Delinquency rates on home mortgages, 53 Interbank deposits, 18, 23 Mortgage yields, 35, 51, 52, 53 Interest rates: Type of holder and property mortgaged, 49-53 Business loans by banks, 32 Reserve position, basic, member banks, 7 Federal Reserve Banks, 8 Reserve requirements, member banks, 9 Foreign countries, 92, 93 Reserves: Money market rates, 33 Central banks and govts., 94 Mortgage yields, 51, 52, 53 Commercial banks, 23, 26, 28 Prime rate, commercial banks, 32 Federal Reserve Banks, 12, 13 Time and savings deposits, maximum rates, 10 Member banks, 5, 6, 17, 23 Yields, Bond and stock, 34 U.S. reserve assets, 75 International capital transactions of U.S., 76-90 Residential mortgage loans, 35, 49, 50, 51, 52, 53 International institutions, 74, 75, 92, 94 Retail credit, 54 Inventories, 68 Retail sales, 62 Investment companies, issues and assets, 47 Investments (See also specific types of investments): Saving: Banks, by classes, 18, 22, 25, 26, 37 Flow of funds series, 70 Commercial banks, 17 National income series, 68 Federal Reserve Banks, 12, 14 Savings and loan assns., 38, 43, 51 Life insurance companies, 37 Savings deposits (See Time deposits) Savings and loan assns., 38 Savings institutions, principal assets, 37, 38 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 38, 39 Labor force, 64 International transactions, 84, 85 Life insurance companies (See Insurance companies) New issues, 45, 46, 47 Loans (See also specific types of loans): Yields and prices, 34, 35 Banks, by classes, 18, 22, 24, 37 Silver coin, 15 Commercial banks, 17, 18, 22, 24, 29, 31, 32 Special Drawing Rights, 4, 12, 13, 72, 75 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 State and local govts.: Insurance companies, 37, 50, 51 Deposits, 23, 27 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Holdings of U.S. Govt, securities, 42, 43 Savings and loan assns., 38, 51 New security issues, 45, 46 Ownership of securities of, 22, 26, 37 Manufacturers: Yields and prices of securities, 34, 35 Capacity utilization, 62 State member banks, 20, 30 Production index, 59, 62 Stock market credit, 36, 96 Margin requirements, 10 Stocks (See also Securities): Member banks: New issues, 46, 47 Assets and liabilities, by classes, 18, 22 Yields and prices, 34, 35 Borrowings at Federal Reserve Banks, 6, 12 Number, by classes, 18 Tax receipts, Federal, 41 Reserve position, basic, 7 Time deposits, 10, 17, 18, 23, 27 Reserve requirements, 9 Treasury cash, Treasury currency, 4, 5, 15 Reserves and related items, 4, 6, 17 Treasury deposits, 5, 12, 13, 40 Mining, production index, 59, 61 Treasury operating balance, 40 Mobile home shipments, 63 Money market rates (See Interest rates) Unemployment, 64 Money stock and related data, 16 U.S. balance of payments, 72 Mortgages (See Real estate loans and Residential mortgage U.S. Govt, balances: loans) Commercial bank holdings, 23, 27 Mutual funds (See Investment companies) Member bank holdings, 17 Mutual savings banks, 27, 37, 42, 43, 50 Treasury deposits at Reserve Banks, 5, 12, 13, 40 U.S. Govt, securities: National banks, 20, 30 Bank holdings, 18, 22, 25, 37, 42, 43 National defense expenditures, 41, 68 Dealer transactions, positions, and financing, 44 National income, 68, 69 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 Nonmember banks, 20, 22, 23, 30 Foreign and international holdings, 12, 81, 84, 88 International transactions, 81, 84 New issues, gross proceeds, 46 Open market transactions, 11 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Ownership, 42, 43 Payrolls, manufacturing index, 62 Yields and prices, 34, 35 Personal income, 69 United States notes, 15 Postal savings, 23 Utilities, production index, 59, 61 Prices: Consumer and wholesale commodity, 62, 66 Veterans Administration, 49, 50, 51, 52, 53 Security, 35 Prime rate, commercial banks, 32 Weekly reporting banks, 24 Production, 58-61, 62 Profits, corporate, 48 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^, Chicago j OmafuC1 XmctTinafiJ 'enver Kansas Cittj^ ^^ Oklahoma. Citjf ^T^A&tnta Dallas Jioustcn Antmioi Miami •Drawn btfUW. gafvin, Cart * (p THE FEDERAL RESERVE SYSTEM Q) £ ALAS KA 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