Federal Reserve Bulletin, 1974-02

FEDERAL RESERVE BULLETIN FEBRUARY 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In 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 2 • VOLUME 60 • FEBRUARY 1974 CONTENTS 69 Financial Developments in the Fourth Quarter of 1973 79 Staff Economic Studies: Summary 81 Revision of the Money Stock Measures and Member Bank Reserves and Deposits 97 Statements to Congress 108 Record of Policy Actions of the Federal Open Market Committee 123 Law Department 152 Directory of Federal Reserve Banks and Branches 167 Announcements 173 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 100 Board of Governors and Staff A 102 Open Market Committee and Staff; Federal Advisory Council A 103 Federal Reserve Banks and Branches A 104 Federal Reserve Board Publications A 107 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

Financial Developments in the Fourth Quarter of 1973 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in financial markets during the fall and early winter. Conflicting economic pressures and an atmosphere of great uncertainty underlay financial developments in the fourth quarter of 1973. The Nation's gross national product continued to expand at a relatively rapid pace, but this expansion reflected mainly price inflation. Real economic growth slowed, in part due to the energy shortage. The Arab oil embargo and the sharp increase in oil prices obscured the economic future, stimulated large-scale international financial flows, and led to substantial readjustments of exchange rates as the market evaluated likely differential balance of payments impacts among countries. During the second half of 1973, the narrowly defined money stock expanded at a 3.7 per cent annual rate, much slower than the 7.7 per cent growth rate of the first half. However, it grew at a relatively rapid rate in the final months of the year when public demands for cash balances may have been enhanced by precautionary motives in the uncertain financial and economic environment. The rapid M growth late in the year occurred with only x a small increase in reserves available to support private nonbank deposits, as a reduction in large negotiable certificates of deposit (CD's) freed reserves to support expansion in the demand deposit component of M. Growth of the broader money stock aggregates x accelerated during the fourth quarter as improved inflows of consumer-type time and savings deposits at both commercial banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 and nonbank thrift institutions supplemented the rise in M. For x the year as a whole, M grew at a 5.7 per cent annual rate, while x the broader aggregates, M and M , each grew at an 8.6 per cent 2 3 rate. Market rates of interest remained considerably below peak levels reached during the summer. The flow of short-term credit to the business sector, though sizable, was somewhat reduced from earlier quarters of the year. There was a shift in the short-term credit demands of large corporations away from commercial banks and toward the commercial paper market, as market rates were low relative to bank loan rates. At the same time, corporations increased their issuance of securities in the capital markets. Flows to major private mortgage lenders were much improved during the quarter, but net mortgage debt formation fell sharply, in part reflecting earlier cutbacks in commitments. MONETARY In the fourth quarter of 1973, reserves available to support private AGGREGATES nonbank deposits (RPD's) increased at the slowest rate in nearly 4 years. This largely reflected a decrease in the banking system's demand for reserves occasioned by substantial run-offs of maturing large CD's in October and November. During earlier quarters of the year, when business loan demands were stronger and banks aggressively sought additional loanable funds, large issues of CD's by banks had greatly increased the demand for reserves. Total reserves increased faster than RPD's in the fourth quarter, as the System accommodated a net rise in the total of U.S. Government and interbank deposits. In the process, nonborrowed reserves expanded rapidly to offset the decline in member bank borrowings from the Federal Reserve that accompanied the reduction in short-term market rates. Measured on an end-month of quarter basis, M increased at x a 7.5 per cent seasonally adjusted annual rate during the fourth quarter after showing little net change in the third quarter. When measured on the quarterly average basis commonly employed in calculations of such economic aggregates as gross national product, the fourth-quarter growth rate of M was 3.9 per cent as compared x with a 5.5 per cent rate for the third. M expanded at an annual 2 rate of 10.1 per cent from September to December, buoyed by stronger inflows of consumer-type time and savings deposits at commercial banks. M rose at a 9.2 per cent rate over the period, 3 reflecting expansion in M and improved deposit flows at nonbank 2 thrift institutions. These growth rates reflect year-end revisions in the monetary aggregates, incorporating new benchmark data for nonmember banks and updated seasonal adjustment factors. The revisions raised measured 1973 growth rates for M by close to x 1 per cent and for M and M by lesser amounts. 2 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q4 1973 71 TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES In per cent, figures are seasonally adjusted annual rates 1973 IItteemm 11997722 11997733 Q1 Q2 Q3 Q4 Member bank reserves— Total 10.6 7.8 6.4 6.9 10.6 6.1 Nonborrowed 7.7 7.2 -3.6 7.0 11.3 13.4 Available to support private nonbank deposits1 10.1 9.3 7.8 12.5 14.2 1.4 Concepts of money2 calculated from— End-month of quarter: M x 8.7 5.7 3.8 11.5 - .2 7.5 M2 11.1 8.6 6.9 11.1 5.2 10.1 M 3 13.1 8.6 9.4 10.4 4.5 9.2 Quarterly average: Mj 7.7 6.1 7.0 7.5 5.5 3.9 M2 10.9 8.8 8.8 8.7 7.9 8.5 M 3 13.0 8.9 10.8 9.1 7.2 7.4 Time and savings deposits at: Commercial banks (other than large CD's) 13.5 11.3 9.9 10.4 10.4 12.5 Nonbank thrift institutions 16.9 8.7 13.6 9.4 3.1 7.5 Bank credit proxy, adjusted3 11.6 10.6 14.6 12.6 10.5 3.3 MEMO (Change in billions of dollars, seasonally adjusted)— Large CD's 10.4 19.4 11.2 7.4 4.7 -3.9 U.S. Government demand deposits at member banks -L2 1.5 -2.3 - .3 - .1 *Total reserves less required reserves for U.S. Government and interbank deposits. 2Mi is currency plus private demand deposits adjusted. M2 is Mx plus bank time and savings deposits adjusted other than large CD's. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 3Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. NOTE.—Changes are calculated from the average amounts outstanding in the last month of each quarter, except the quarterly average calculation of concepts of money, which are based on changes in the average amounts outstanding for a quarter. Annual rates of growth have been adjusted for changes in reserve requirements. Data for the money stock and other monetary aggregates have recently been revised to reflect changes in seasonal adjustment factors and corrections to the latest benchmark levels available for nonmember banks. A complete description of these revisions appears on pp. 81-95. Special factors stemming primarily from the Arab oil embargo may have enlarged money stock growth late in the year. As the dollar gained strength in international markets because of the presumed greater impact of the fuel shortage on foreign economies, some foreign central banks sold dollar assets to support their own currencies. In November some of the proceeds of these sales were deposited temporarily at Federal Reserve Banks, thereby increasing the growth of M in that month. Also, near year-end, the coincix dence of European banking holidays with bank reporting dates led to an apparent accumulation of dollar balances by foreign commercial banks at U.S. commercial banks. Uncertainties associated with the energy crisis may also have induced domestic wealth holders to seek refuge for a time in deposit claims of banks and thrift institutions, rather than investing in marketable securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 The decline of interest rates on market instruments from peak levels reached during the summer reduced the pressures toward disintermediation. Inflows of consumer-type time and savings deposits at commercial banks, which had continued to be sizable during the third quarter, increased somewhat further in the fourth quarter. Growth of deposits at nonbank thrift institutions recovered substantially from the depressed third-quarter rate. Commercial banks and nonbank thrift institutions had competed actively for consumer-type savings during the summer, with the ceiling-free, 4-year certificate category created by the regulatory agencies in July playing an important role in that competition. Both Seasonally adjusted monthly averages. is currency plus private demand deposits adjusted. M2 is Mj plus commercial bank time and savings deposits adjusted other than large CD's. M:J is M2 plus deposits at mutual savings banks and savings and loan associations. groups of institutions had attracted large amounts of the ceilingfree deposits, some transferred from their own accounts and some drawn from other institutions and market instruments. However, commercial banks experienced larger net inflows of total consumer-type time and savings deposits than did thrift institutions. The Congress passed legislation in October requiring the Federal regulatory agencies to reimpose rate ceilings on all maturities of time deposits. Consequently, ceilings of llA per cent for commercial banks and IVi per cent for thrift institutions were set on the 4-year accounts, effective November 1. Deposit inflows at thrift institutions, particularly savings and loans, had already improved significantly earlier in the fall in response to the decline in market interest rates; these institutions were able, due to the continuance of the lower market rates, to sell sizable volumes of the 4-year certificates in November and December even with the new ceilings. The accelerated expansion of demand and consumer-type time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q4 1973 73 and savings deposits was one factor leading commercial banks to permit a run-off in their large CD's. Also important was the relatively high cost of CD funds—a cost that had been increased by the imposition in late September of an additional 3 percentage point marginal reserve requirement on such deposits above a mid-May base (raising the marginal reserve requirement to 11 per cent on CD's and related instruments at member banks). Between September and November, the volume of CD's outstanding at large banks was reduced by nearly $5 billion as offering yields on most maturities were cut by 1 lA to Wi percentage points. In December the 3 per cent marginal reserve requirement was suspended, and commercial banks bid somewhat more aggressively for large CD's. Nevertheless, large CD's outstanding decreased by a sufficiently large amount over the quarter to offset much of the gain in other deposit categories, and the result was the slowest growth of the adjusted member bank credit proxy in 3 years. BANK USES OF FUNDS The run-off of large CD's at commercial banks was, in large measure, a response to a pronounced slowing in the growth of bank loans, particularly to nonfinancial businesses. During the fourth quarter, commercial bank loans and investments grew at an annual rate of only 4Vi per cent, as compared with the 15 per cent pace recorded in the first 9 months of the year. While growth in almost all major loan categories moderated during the quarter, the most significant change was in business loans, which increased at only about a 5 per cent annual rate compared with a 25 per cent rate of gain over the first three quarters. Banks continued to liquidate holdings of Treasury securities (on a seasonally adjusted basis); for the year as a whole, the total decline in bank holdings of such issues was nearly $9 billion. However, in the fourth quarter, banks stepped up their acquisition of other securities—primarily Federal agency and municipal issues—and the increase in these investments offset the reduction during that period in holdings of Treasury securities. The slackening of business loan growth at commercial banks was the product of two significant shifts in corporate financing patterns. One of these was a movement toward greater reliance on the capital markets in the fourth quarter. The second was a substitution of commercial paper sales for bank borrowings, particularly in October and the first half of November. This substitution was stimulated by a sizable cost advantage that was created by the sharp decline in short-term market interest rates in September and October, but which diminished thereafter as the commercial bank prime rate began to move lower and commercial paper rates firmed. By late November, rates had adjusted so as to provide an incentive for some switching back to bank credit; dealer-placed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 BANK CREDIT COMPONENTS U.S. GOVT. SECURITIES JUL TU BANK LOANS MAJOR COMPONENTS OTHER SECURITIES BUSINESS 512 M- TOTAL LOANS 8 Rill inn: REAL ESTATE CONSUMER n,P n n H , SECURITY + 1 I I I | j Msamto — 4 Q4 I Q1 Q2 Q3 Q4 Seasonally adjusted. Loans adjusted Seasonally adjusted. Business adfor transfers between banks and their justed for transfers between banks holding companies, affiliates, sub- and their holding companies, sidiaries, or foreign branches. Bank affiliates, subsidiaries, or foreign credit figures revised to incorporate branches. Bank credit figures revised June 1973 Call Report data for non- to incorporate June 1973 Call Report member banks and new seasonal ad- data for nonmember banks and new justment factors. seasonal adjustment factors. commercial paper outstanding dropped slightly on a seasonally adjusted basis during December. The depressing impact of the fuel shortage on automobile sales was reflected directly in bank loans to consumers and indirectly in bank loans to nonbank financial institutions. Consumer credit demands slackened, producing a slight reduction in the still relatively rapid growth rate of bank consumer loans. Finance companies, although requiring funds to finance auto inventories that built up as sales weakened, borrowed less from banks and relied more heavily on the commercial paper and bond markets. Real estate loans at banks also slowed moderately in the fourth quarter from the rapid pace of earlier months. However, compared to previous periods of credit stringency, the expansion in real estate loans remained very strong throughout 1973 as banks—with their access to funds in the CD market unconstrained by Regulation Q ceilings—generally found attractive the high rates available on mortgages. For the year, bank holdings of real estate loans in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q4 1973 75 creased by nearly 20 per cent; this compared with an expansion of only 3.6 per cent during 1970, the previous period of credit stringency. The $19 billion supplied by commercial banks to the mortgage market during 1973 constituted more than one-fourth of total net mortgage debt formation. NONBANK The fourth quarter of 1973 saw a marked improvement in deposit INTERMEDIARIES AND flows at nonbank thrift institutions, particularly at savings and loan MORTGAGE MARKETS associations. During the third quarter, when short-term interest rates reached their highest levels of the year, deposit withdrawals on an unadjusted basis at savings and loans and mutual savings banks exceeded new deposits by nearly $3.7 billion; in contrast, there was a net new money inflow of approximately $2.3 billion during the fourth quarter. The entire gain in deposits over the October-December period occurred in certificate accounts as passbook deposits declined slightly. On a seasonally adjusted basis, total deposits rose at an 8.0 per cent annual rate in the fourth quarter, NONBANK SAVINGS ACCOUNTS up from 2.0 per cent during the preceding quarter. With the abatement of pressures toward disintermediation, nonbank thrift institutions began to rebuild liquid asset portfolios and to reduce reliance on nondeposit sources of funds. The indebtedness of member thrift institutions to the Federal Home Loan Bank m System rose $850 million, but this increase was much smaller than the $3.2 billion expansion during the third quarter. Mortgage loan commitments at thrift institutions continued to decline, but at a decelerated pace. Net mortgage debt formation slowed sharply during the fourth quarter of 1973 and, on a seasonally adjusted basis, was about _ fk one-third below the peak first-quarter rate. Nearly all of the decrease Seasonally adjusted. in mortgage debt growth occurred in the residential sector, but TABLE 2 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly rates 1972 1973 CChhaannggee—— Q4 Qi Q2 Q3 Q4e By type of debt: Total 17.1 19.8 18.9 17.6 13.4 Residential 12.6 14.7 13.7 12.2 8.6 Other1 4.5 5.1 5.2 5.4 4.8 At selected institutions: Commercial banks 4.5 4.6 5.1 4.8 4.1 Savings and loans 8.6 8.2 8.7 6.3 3.0 Mutual savings banks 1.5 1.5 1.7 1.3 1.2 Insurance companies 1.2 .4 .5 1.2 1.2 FNMA-GNMA .1 .5 .4 1.6 .7 includes commercial and other nonresidential as well as farm properties. ePartially estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 the expansion in nonresidential mortgage debt also moderated. Commercial banks accounted for the largest single share of total net mortgage debt formation, as net lending by savings and loan associations dropped further. Direct and indirect financing by the Federally sponsored credit agencies fell in the last quarter of the year, due to the reduced volume of FHLB advances and increased resales of mortgages to private investors by the Government National Mortgage Association. FUNDS RAISED IN The volume of long-term securities issued by corporations and State SECURITIES MARKETS and local governments during the fourth quarter was substantially larger than in previous quarters of 1973. A greatly expanded volume of publicly offered bonds accounted for most of the increase in new issues by the corporate sector. A resurgence in financings by manufacturing and financial corporations played an important role in boosting the volume of offerings. Private placements were down somewhat from the high levels recorded in prior quarters. TABLE 3 OFFERINGS OF NEW SECURITY ISSUES Quarterly totals, in billions of dollars, not seasonally adjusted 1972 1973 TTyyppee ooff iissssuuee Q4 Qi Q2 Q3 Q4e Corporate securities—Total 10.6 8.2 8.6 6.4 10.2 Bonds 7.3 4.4 6.2 4.6 7.0 Stocks 3.3 4.0 2.4 1.7 3.1 State and local government bonds 5.9 5.9 5.9 5.2 6.6 e Estimated. NOTE.—Details may not add to totals because of rounding. The increase in over-all bond volume was partly attributable to the increased gap between internal funds generated and capital outlays, but it was also influenced by the redirection of business credit demands from short-term to long-term markets as corporations attempted to bolster liquidity and avoid what might have proven to be more costly long-term financings in ensuing months. The September-October stock market rally stimulated a spurt in new equity issues, though offerings dropped off again as share prices declined sharply over the last 2 months of the year. State and local units sold the largest volume of long-term debt since the first quarter of 1971. An exceptionally large volume of revenue bonds was marketed, with industrial pollution control issues continuing to increase in importance. Because these pollution control bonds are used to finance business capital outlays, their rapid growth has led to an increasing overstatement of State and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q4 1973 77 local government credit needs and an understatement of corporate financing requirements. The U.S. Treasury borrowed $6.7 billion from the public during the fourth quarter to finance a seasonal budgetary deficit and to rebuild its cash balances. Treasury credit needs were increased by foreign central bank redemptions of nonmarketable Treasury issues; foreign central bank sales of marketable issues added further to the quantity of Treasury securities that had to be acquired by domestic buyers. At the same time, reduced credit demands by Federally sponsored credit agencies provided some offset to the increased Treasury borrowings. TABLE 4 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals, in billions of dollars, not seasonally adjusted 1972 1973 IItteemm Q4 Ql Q2 Q3 Q4 Budget surplus, or deficit (—) -10.5 -9.5 7.7 -1.1 -5.0 Net cash borrowings, or repayments (—) 12.3 8.4 -6.5 - .7 6.7 Other means of financing1 -.5 2.9 -1.5 -2.5 1.4 Change in cash balance 1.3 1.8 -.3 -4.3 2.1 MEMO: Net borrowings by Federally sponsored credit agencies2 .. 1.0 2.0 5.0 6.1 3. le Checks issued less checks paid and other accrued items. 2Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and securities guaranteed by GNMA). eEstimated. INTEREST RATES Interest rates showed rather wide fluctuations during the fourth quarter, but at year-end, rates were generally close to the levels reached in the September market rally and well below their summer peaks. Long-term rates were moving upward as the new year began and a heavy schedule of new corporate and tax-exempt issues developed. The Federal funds rate tended downward between September and December, declining by about one percentage point over the span. This change, plus the reduced short-term credit demands of the business sector in the latter half of the quarter, enabled money market rates to remain, on balance, near their reduced September levels despite the heavy volume of short-term Treasuries sold by foreign central banks and by the U.S. Treasury. The market yield on 3-month Treasury bills jumped sharply during November but declined thereafter to IV2 per cent, about the same as at the beginning of the quarter. Commercial paper rates, on the other hand, exhibited more moderate fluctuations and ended the quarter about one-half percentage point lower than their initial level. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHART 2 INTEREST RATES LONG-TERM *Level of series was affected by issue of new 20-year U.S. Government bond in January. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to an Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. In the capital markets, the increased volume of new bond offerings was absorbed at relatively stable interest rates until mid- December. At that point, the heavy current and forward calendars of new issues and some revision of market expectations regarding the future course of monetary policy and interest rates pushed long-term rates moderately higher. As a result, most bond rates were roughly one-quarter percentage point higher at the end of the quarter than at the beginning. Mortgage interest rates trended downward during the quarter. The prevailing contract rate on conventional mortgage loans in the primary market fell from a record 8.95 per cent in September to 8.75 per cent in December. In the secondary market, average auction yields accepted by the Federal National Mortgage Association on Government-underwritten mortgages declined more than 60 basis points between September and January. The ceilings on Federal Housing Administration and Veterans Administration loans were lowered in January from 8V2 per cent to 8lA per cent. Nevertheless, mortgage rates remained above this level, and in some States usury ceilings continued to constrain mortgage flows. Digitized for FRASER 78 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed- forth are those of the authors and do not neceseral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub- Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the BULLETIN by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes- back of each BULLETIN includes a separate sion and to others are summarized—or they may section entitled "Staff Economic Studies " that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve BULLETIN . currently available in that form. Study Summary THE IMPACT OF HOLDING COMPANY ACQUI! ON AGGREGATE CONCENTRATION IN BANKING By Samuel H. Talley—Staff, Board of Governors Prepared as a staff paper in early 1974 Acquisitions of banks by bank holding compa- deposits held by the'100 largest banking organies have accelerated sharply since about 1968, nizations; and on the statewide level by the with most of the deposits having been acquired percentage of total domestic deposits held by by the 100 largest banking organizations in the the 5 largest banking organizations in the State. Nation. This development has revived a long- The aim of the study was twofold: (1) to deterstanding public concern over the possible emer- mine the changes in aggregate concentration on gence in banking of excessive aggregate con- the nationwide and statewide levels between centration—generally defined as the percentage 1968 and 1973; and (2) to measure the impact of total deposits held by a given number of the of bank holding company acquisitions during largest banking organizations in the Nation or the period on these concentration measures. in a State. The public's basic concern is that The study found that nationwide aggregate high levels of concentration will place excessive concentration fell from 49.0 to 47.0 per cent economic power in the hands of a relatively between 1968 and 1973. This decline resulted small number of banking organizations. from the relatively slow internal growth of the For purposes of the study, aggregate concen- 100 largest banking organizations in the Nation tration in banking on the nationwide level was and occurred even though these organizations measured by the percentage of total domestic acquired banks during the period that held an 79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

aggregate of almost $17 billion of deposits in of 10 percentage points occurring in 6 States. 1973. If these holding company acquisitions In States that permitted multibank expansion, had not taken place, nationwide concentration the effects of holding company acquisitions would have declined another 2.3 percentage varied with the type of branching allowed. points over the period. Holding company acquisitions increased con- Between 1968 and 1973, statewide concen- centration in almost all unit banking and limited tration increased in 28 States, declined in 22, branching States, but in only about a third of and remained constant in 1. Both the mean and the statewide branching States. Holding comthe median changes in statewide concentration pany acquisitions that increased statewide confor the 50 States and the District of Columbia centration occurred almost entirely in States were slightly less than 1 percentage point. Ac- with low or moderate concentration and had quisitions by holding companies increased con- almost no impact in States with a high degree centration in 24 States, with increases in excess of concentration. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Money Stock Measures and Member Bank Reserves and Deposits In late January the Board of Governors released report data. Since the early 1960's benchmark the annual revision of money stock measures data for nonmember banks had been available and related items. At the same time it revised only for June and December. The benchmark published data for member bank deposits and adjustments for nonmember banks have been reserves.1 large in recent years, but the current revision As usual, the revisions of the money stock incorporates the largest nonmember-bankand of related measures include both the regular benchmark changes made in the history of the updating of seasonal adjustment factors and the series and points up the serious need for more annual benchmark revision, which incorporates timely and more complete data for nonmember new estimates for nonmember domestic banks. banks. But this year's revisions also incorporate data The Board's staff has been investigating alfrom new monthly reports filed by agencies and ternative methods for using the single-day nonbranches of foreign banks and other interna- member bank data to make weekly and monthly tionally oriented banking institutions. In addi- average estimates of nonmember bank deposits tion, minor corrections were made in back data included in the money stock measures. While to adjust for changes in accounting procedures no new procedure has been incorporated in this in connection with the transfer of foreign funds. revision, results of some of the preliminary The revisions also incorporate, in addition to work are described later in this article. The the usual June and December single-day non- different rates of growth obtained from alternamember bank benchmarks, single-day bench- tive estimating methods illustrate the degree of marks from the March and October 1973 call uncertainty in money stock estimates, given the present limited availability of nonmember bank NOTE.—Darwin Beck and Joseph Sedransk of the statistics. Board's Division of Research and Statistics prepared Revised monthly data back to January 1967, this article. both seasonally adjusted and not seasonally adlrThe money stock and related measures include M x justed, on the money stock and related measures (private demand deposits adjusted plus currency); M 2 (Mi plus commercial bank time and savings deposits and on member bank deposits and reserves are other than large negotiable certificates of deposit); and shown on pages 90, 91, and 94. Revised weekly M CM, plus deposits at mutual savings banks and 3 data for M and M for 1973 are shown on pages savings capital at savings and loan associations), as well x 2 as (1) large negotiable time CD's outstanding at weekly 92 and 93. Monthly and weekly data for earlier reporting banks and (2) U.S. Government deposits. years are available from the Banking Section, Monthly and weekly data for these series are published Division of Research and Statistics. in the BULLETIN and they also appear each week in the Board's H.6 press release. Member bank reserves include total, nonborrowed, EFFECTS OF THE REVISION and required reserves at member banks, as well as reserves available to support private nonbank deposits The nonmember-bank-benchmark adjustment (RPD's). Member bank deposits and related series inraised the level of the money stock series $1.0 clude all deposits subject to reserve requirements (the credit proxy), the components of that total, consisting billion in December 1972, $2.0 billion in March of time and savings deposits and private and U.S. 1973, and by nearly $2.8 billion in both June Government demand deposits; and the adjusted credit and October of 1973. In addition, minor data proxy (total member bank deposits subject to reserve requirements plus Euro-dollar borrowing, bank-related corrections added from $300 million to $400 commercial paper, and other nondeposit items). Current million to the level of M back to mid-1970. monthly data on the reserves and deposits series are x published in the BULLETIN and monthly and weekly On the other hand, revised estimates of M r type data appear in the Board's H.3 press release. deposits at internationally oriented banking in- Digitized for FRASER http://fraser.stlouisfed.org/ 81 Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 stitutions—that is, agencies and branches of the money stock and credit proxy. Based on halfforeign banks and foreign investment banking year comparisons, the revision raised the growth corporations—based on new monthly reports somewhat in the second half of 1972 and the filed by these institutions in 1973, reduced the first half of 1973. On the other hand, it level of the money stock series by from about lowered M growth slightly in the latter half of x $100 million starting in early 1967 to about $1.0 1973. For 1973 as a whole M rose 5.7 per x billion in 1973. Thus, on balance, the level of cent, measured from the last month of the year the money stock series was lowered by amounts to the last month of the year. This is 0.7 of ranging from $100 million to $900 million from a percentage point higher than the rate of inearly 1967 to late 1972, raised by $200 million crease based on the old series. in December 1972, and raised by from $1.2 Differences in monthly growth rates (Table billion to $2.5 billion in 1973. 2) were somewhat larger than for longer-run Changes in member bank deposits and re- periods. The largest difference occurred in Janserves were minor. Except for a modest adjust- uary 1973, when the combination of the benchment that raised private demand and lowered mark change and a change in the seasonal adinterbank deposits, revisions in these series re- justment factor raised the growth rate about 5 flect changes in seasonal adjustment factors. The percentage points—from —0.5 to 4.7 per cent. level of the RPD series was also raised slightly For other months of the year changes in growth as a result of the upward adjustment in private rates were much smaller. Changes in the M 2 member bank demand deposits. and M 3 growth rates were comparable to the Table 1 shows in percentage terms how much changes in M x . Only minor changes occurred the revisions affected annual rates of change in in growth rates for the adjusted credit proxy. TABLE 1 CHANGES IN MONEY STOCK MEASURES AND THE ADJUSTED CREDIT PROXY Based on Based on average levels in final months of periods quarterly average1 Period M X M 2 Adjusted credit proxy M X Old Revised Old Revised Old Revised Old Revised series series series series series series series series 1968 7.8 7.8 9.3 9.4 9.5 9.5 7.5 7.5 1969 3.6 3.5 2.6 2.5 .4 .4 4.2 4.2 1970 6.0 6.0 8.4 8.4 8.2 8.2 5.7 5.8 1971 6.6 6.3 11.4 11.2 9.4 9.4 6.9 6.6 1972 8.3 8.7 10.8 11.1 11.6 11.6 7.4 7.7 1973 5.0 5.7 7.9 8.6 10.7 10.6 5.2 6.1 1971—HI 10.1 9.9 14.9 14.8 10.1 10.0 8.9 8.7 H2 3.0 2.6 7.4 7.1 8.4 8.4 4.7 4.3 1972—HI 7.7 7.7 10.8 10.7 11.4 11.2 7.0 6.8 H2 8.5 9.4 10.3 10.9 11.1 11.3 7.6 8.4 1973—HI 6.0 7.7 7.7 9.1 13.8 13.8 5.8 7.3 H2 4.0 3.7 7.8 7.8 7.0 7.0 4.5 4.7 1972—QI 9.2 9.0 12.7 12.3 11.0 10.5 5.3 5.3 Q2 6.1 6.2 8.5 8.9 11.5 11.6 8.5 8.2 Q3 8.2 8.7 10.3 10.8 9.8 10.2 7.9 8.2 Q4 8.6 9.9 10.2 10.6 12.1 12.1 7.2 8.4 1973—QI 1.7 3.8 5.7 6.9 15.0 14.6 4.6 7.0 Q2 10.3 11.5 9.5 11.1 12.2 12.6 6.9 7.5 Q3 .3 -.2 5.1 5.2 10.5 10.5 5.1 5.5 Q4 7.6 7.5 10.4 10.1 3.3 3.3 3.9 3.9 Annual rates of growth are measured from fourth-quarter average to fourth-quarter average. Half-year growth rates are measured from fourth- to second- and second- to fourth-quarter averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 83 TABLE 2 of the Mi money stock, had little impact on COMPARISON OF MONEY STOCK the general movement of the series. Seasonal GROWTH RATES (1973) factors for time deposits other than CD's, a component of a broader money stock measure, M x M2 M 3 M , were also reviewed. But again, the addition 2 Month of one year's data and the benchmark revision Old Revised Old Revised Old Revised series series series series series series had little impact on the monthly factors. Jan. .. -.5 4.7 6.4 9.4 9.8 11.7 Feb... 6.1 5.6 5.9 6.1 9.0 9.1 MONEY STOCK Mar. . -.5 .9 4.7 5.2 6.9 7.2 Apr... 7.5 6.0 8.1 8.3 8.4 8.6 May.. 10.7 13.9 9.8 11.8 9.1 10.3 June.. 12.4 14.2 10.4 12.8 10.4 11.9 July .. 5.0 4.1 5.1 5.7 5.6 6.1 Aug. . -1.8 -.9 6.4 6.3 4.2 4.1 Sept. . -2.3 -3.6 3.9 3.7 3.2 3.2 Oct. .. 4.6 5.0 10.4 10.8 9.1 9.1 Nov. . 10.0 10.4 11.4 10.9 9.9 9.7 Dec. . 8.1 7.1 9.0 8.5 8.8 8.5 SEASONAL FACTOR REVIEW OF MONEY STOCK MEASURES Revisions in monthly seasonal adjustment factors were minor this year. As shown in Table 3, seasonal factors for the demand deposit com- Seasonally adjusted weekly averages of daily figures. ponent of M x for 1973 changed in only 2 Weekly seasonal adjustment factors for all of months, January and July. The January factor the money stock components were reviewed, declined and the July factor increased. The and as usual, the addition of one year of data seasonal adjustment factors for the currency tended to smooth the week-to-week changes in component revised somewhat more, but these the series. In particular, as shown in Chart 1, changes, associated with a smaller component the extent of month-end drops and of beginning-of-month bulges in the demand deposit TABLE 3 component was reduced. COMPARISON OF M SEASONAL 1 ADJUSTMENT FACTORS (1973) BENCHMARK COMPONENT Demand deposit Currency component component The money stock measures published by the MMoonntthh Board are based on daily deposits of member Old Revised Old Revised banks reported weekly on a very current schedseries series series series ule. A substantial portion of the money stock January 1.038 1.036 .994 .994 measures, now more than 25 per cent of the February .990 .990 .987 .987 demand deposit component of M represents March .990 .990 .990 .990 u deposits at domestic nonmember banks. Inas- April 1.009 1.009 .992 .994 May .979 .979 .995 .996 much as these banks do not report on a current June .990 .990 1.001 1.001 basis, a large portion of the money stock is July .992 .994 1.008 1.008 estimated on the basis of single-day reports for August .983 .983 1.005 1.004 September .993 .993 .999 .999 benchmark dates filed by these institutions with the Federal Deposit Insurance Corporation. On October .998 .998 i.ooo .999 November 1.006 1.006 1.009 1.008 the basis of these reports the Board has esti- December 1.032 1.032 1.018 1.016 mated the nonmember bank component of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 TABLE 4 SOURCES OF SEASONALLY ADJUSTED Mx REVISION Differences due to— OOlldd RReevviisseedd MMoonntthh sseerriieess sseerriieess DDiiffffeerreennccee Seasonal Do n m o e n s - tic International Other1 factors member institutions 1972—December 255.5 255.7 .2 1.0 -1.4 .6 1973—January 255.4 256.7 1.3 .4 1.2 - .8 .5 February 256.7 257.9 1.2 1.6 - .8 .4 March 256.6 258.1 1.5 2.0 - .9 .4 April 258.2 259.4 1.2 -.1 2.1 -1.1 .3 May 260.5 262.4 1.9 -.1 2.4 -1.1 .7 June 263.2 265.5 2.3 2.8 - .8 .3 July 264.3 266.4 2.1 -.4 2.9 - .8 .4 August 263.9 266.2 2.3 .1 2.8 -1.0 .4 September 263.4 265.4 2.0 2.7 -1.1 .4 October 264.4 266.5 2.1 .1 2.7 -1.1 .4 November 266.6 268.8 2.2 .1 2.7 -1.1 .5 December 268.4 270.4 2.0 .1 2.6 -1.1 .4 * . t 1 includes revisions due to changes in accounting procedures in connection with the transfer of foreign funds, other minor corrections, and rounding. money stock and incorporated these estimates reports were not finalized until about mid-1973. into the series.2 Previously, estimates of the deposits of branches In the past benchmarking was done annually of foreign banks had been derived from June in connection with the review of seasonal ad- and December call report data. Mi-type data for * justment factors. The latest revision, however, agencies of foreign banks had been derived from incorporates data from the March 28, 1973, and monthly reports filed with the New York State the October 17, 1973, "surprise" call reports. Banking Department, and deposit-type liabili- This is the first time since September 1962 that ties of foreign investment banking institutions money stock data have been benchmarked to had been estimated from annual reports pubthe surprise call reports. In the interim, data lished by these firms. from the spring and fall call reports, although The new monthly reports now being filed by used for regulatory purposes, have not been these institutions indicate that the amounts of available in sufficient detail to be used as quar- M r type liabilities of these institutions preterly benchmarks for the money stock. As indi- viously included in money stock measures had cated earlier, the latest nonmember bank revi- been overestimated. Hence it was necessary to sion is the largest in the history of the series. re-estimate such liabilities for the period from The December 1972 benchmark for nonmember January 1967 to October 1972. These new estibanks raised the level of the series $1.0 billion mates lowered the level of M x by from $100 and the June 1973 benchmark raised the level million to $800 million over this period. an additional $1.8 billion. ALTERNATIVE BENCHMARKING This revision also incorporates new measures PROCEDURES of Mtype deposits at internationally oriented r banking institutions. Figures for such deposits In computing current weekly and monthly data are now available from reports filed monthly by for the money stock, estimates of demand dethese institutions with the Federal Reserve Bank posits at nonmember banks are included in the of New York. The first of these reports was filed deposit component, and estimates of vault cash providing data for November 1972, but the at such institutions are excluded from currency outside the Treasury and the Federal Reserve 2 Current benchmarking procedures are described later in arriving at the currency component. Since in the discussion of alternative procedures investigated actual data for nonmember bank deposits and by the staff. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 85 vault cash are not available on a current basis, of the absence of supporting nonmember bank estimates for these nonmember components are data, this aberration will not be detected. based initially on data for a subset of member A possible alternative to the single-day banks.3 Subsequently, when actual data for benchmarking procedure is to fit a model to the nonmember banks become available from call historical sequence of semiannual ratios, R. If reports, they are used as benchmarks to revise the model provides a satisfactory representation, the initial interim estimates. then it may be used to "smooth" the observed The benchmarking procedure used to revise sequence of values of R. Such a procedure is estimates of universe (member and nonmember) particularly useful when, as here, aberrant obmonetary aggregates made between call report servations are likely to occur. Thus, for the dates utilizes the aggregate data for nonmember desired call report day, the value of the ratio and "country" member barjks for the most predicted by the model may be used: (1) in lieu recent call report dates. To illustrate the basic of the actual (observed) ratio for the call report features of the procedure, consider: (1) the day; or (2) to adjust the actual (observed) ratio situation—for example, in 1972—when only for the call report day. two call reports are available, and (2) the spe- A large number of models have been fitted, cific monetary aggregate estimated, demand de- their properties assessed, and their implications posits adjusted (DDA). From each call report studied. To illustrate some of the possibilities, the ratio R = (Aggregate nonmember three of these models are described in the Tech- DDA)/(Aggregate country bank DDA) is deter- nical Appendix. The first of these models simply mined. For example, in late 1972, the actual fits a trend line to the semiannual observed values of R for June 30, 1972, and December ratios, June 1967 to June 1973. This model 31, 1971, are available CRjune and R .). expresses the ratio at the time t, R, as a qua- DEC t Moreover, the estimated value of R for June dratic function of time. While the over-all A 1972, tfjuNE, is also known. Apart from adjust- agreement of the reported values with those ments made to account for structure changes predicted by this model is good, the model also (for example, conversion of member to non- displayed certain characteristics that indicated member banks) and other known factors (for that important factors affecting the ratios may example, changes in accounting practices asso- have been left out. Since it has been observed ciated with revised Regulation J) the difference that monetary policy affects the growth of between R and Jejune is distributed over the member and nonmember deposits in differing 3UNE 26-week period between December 31, 1971, degrees, the 90-day Treasury bill rate was inand June 30, 1972. troduced as a rough proxy measure of monetary The use of the ratios, R, for benchmarking policy restraint or ease. In the second model, may be questioned because each ratio is based R t is represented as a quadratic function of time on a single day of data. That is, on a particular and as a linear function of the average 90-day call report day, either the nonmember or the Treasury bill rate for the preceding half-year. country bank (or both) aggregate DDA may not In the third model, the change in the average be a "representative" value. For nonmember 90-day Treasury bill rate is substituted for the banks the observed value may be aberrant rela- level of the bill rate. tive to the (unobserved) sequence of values of Table 5 shows—for purposes of illustranonmember bank aggregate DDA for the days tion—half-year growth rates for the standard and weeks close to the call report. The same revised series, the trend line model, and the phenomenon may occur with the daily sequence models that include interest rate variables. of values of country member bank aggregate Growth rates are shown for the period 1971-73. DDA. Thus, for a particular call report day, the As the table shows, differences in half-year ratio R may not be representative and because growth rates are substantial—more than 1.0 per cent in some cases. Although these models 3 Currently this subset is based on the group of banks exhibit different money stock patterns in the that were classified as "country banks" prior to Nov. short run, they show similar patterns in the long 9, 1972. In this article, "country banks" refers to this run. As indicated, these models are primarily subset of member banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 TABLE 5 revised, but these changes were minor and had COMPARISON OF MONEY STOCK GROWTH RATES little effect on the profile of the seasonally BY USING ALTERNATIVE BENCHMARKING adjusted series. PROCEDURES MEMBER BANK RESERVES ATL Alternative ATL In the past, seasonally adjusted required re- Standard plus change trend plus 90-day Half-year revised line (ATL) Treasury in 90-day serves of member banks have been derived by series Treasury series bill rate bill rate multiplying seasonally adjusted member bank deposits by the average reserve ratio for all 1971—HI 9.9 11.0 10.4 10.4 member banks, and adding to this derived series H2 2.6 1.8 2.1 2.8 reserves held against nondeposit-type funds 1972—HI 7.7 7.5 7.2 7.0 H2 9.4 9.7 10.2 10.1 such as commercial paper and Euro-dollar borrowings. Seasonally adjusted total reserves were 1973—HI 7.7 6.6 7.3 6.7 H2 3.7 4.1 4.9 4.1 derived by adding seasonally adjusted excess reserves to seasonally adjusted required reserves. Seasonally adjusted nonborrowed refor illustrative purposes and one must be causerves, were obtained by subtracting seasonally tious about drawing conclusions from this analadjusted borrowings from seasonally adjusted ysis. All produce somewhat different results, total reserves. and they indicate the area of uncertainty in During the past year the implementation of current money stock estimates in view of the the revision of Regulation J, effective November very limited availability of nonmember bank 9, 1972, and the seasonal borrowing privilege, data. effective April 19, 1973, created discontinuities REVISION OF MEMBER BANK DEPOSITS in current and historical data. In connection with AND RESERVES the Regulation J revision, penalties for reserve As was noted earlier, the revision of member deficiencies associated with the change in Regbank deposits and reserves reflects primarily ulation J for certain member banks were waived changes in seasonal adjustment factors based on for a transition period from November 1972 to the addition of one year's data. Private demand June 1974. In November 1972 these allowable deposits of member banks were raised slightly waivers amounted to about $450 million. Over from mid-1970 to date, and net interbank de- the course of time, allowable waivers have posits were lowered by a like amount due to declined to about $70 million at the present changes in accounting procedures associated time. "Seasonal" borrowing increased graduwith the transfer of international funds. The ally from April 1973 to a peak weekly average revision of private demand deposits is also re- level of $185 million in late August. Since then flected in slightly higher RPD's. such borrowing has declined steadily. In addi- The offsetting revisions described above were tion, when historical data for excess reserves applied to two member bank deposit compo- and borrowings are reviewed with new statistinents of the adjusted bank credit proxy—private cal tests and techniques, any underlying seademand deposits and net interbank deposits— sonal pattern in either of these series is so and therefore had no effect on the level of the overpowered by cylical and random movements credit proxy series. All of the changes in growth in the series that measurement is virtually imrates for the adjusted credit proxy series shown possible. in Table 1 are attributable to the revised seasonal In light of the distortions in the current series adjustment factors. As the table shows, the as well as the new evidence questioning the revisions were minor, and they had little effect measurability of seasonal movements in the on annual rates of change. The biggest change historical series, we have not attempted to make was a one-half percentage point reduction in the seasonal adjustments in the current series for growth rate in the first quarter of 1972. Seasonal excess reserves and borrowings and have adjustment factors for components of member dropped the seasonal adjustment of historical bank deposits subject to reserves were also data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 87 We continue to make seasonal adjustments seasonally adjusted private demand and time in required reserves as described above. Sea- deposits and adding reserves against nondeposit sonally adjusted total reserves are then derived funds and excess reserves not seasonally adby adding the unadjusted excess reserves to justed. seasonally adjusted required reserves, while The above changes had little effect on seasonally adjusted nonborrowed reserves are longer-run growth rate comparisons—that is, derived by substracting unadjusted borrowings annual, half-year, and quarterly—but in some from total reserves. RPD's are derived by ap- instances the impact on month-to-month plying appropriate reserve requirement ratios to changes was substantial. TECHNICAL APPENDIX CHART A-1 This Appendix discusses a possible alternative to Observed Values of the Ratio Rt the current nonmember benchmarking procedure. This alternative is to fit models to the historical sequence of ratios, R [R=(Aggregate nonmember DDA)/(Aggregate country bank1 DDA)], as determined from the semiannual call reports. Then, • • • for any specified call report day, the value of the ratio predicted by ,the model may be used in lieu • 7700 of the observed ratio, or to adjust the observed • ratio. • • • TABLE A-1 • • OBSERVED VALUES OF THE RATIO R • 60 t December 1961 through October 1973 Call report date R, Call report date Rt December 1961 50.25 June 1968 56.14 i50 June 1962. 50.61 December 1968.... 57.30 December 1962 50.71 June 1969 59.69 » . June 1963 51.03 December 1969.... 61.36 December 1963 51.60 June 1970 61.78 June 1964 51.68 December 1970.... 63.07 December 1964 53.13 June 1971 63.65 June 1965 52.67 December 1971 65.85 the illustrative models exhibit this choice. A fur- December 1965 54.14 June 1972 68.08 ther question relates to the values of R for the June 1966 53.96 December 1972... 69.53 December 1966 54.97 March 1973 72.30 March 1973 and October 1973 44surprise" call June 1967/ 54.71 June 1973 73.57 reports. Without previous experience with such December 1967... 55.62 October 1973 73.61 call reports, it is difficult to assess their comparability with the historical sequence of semiannual NOTE.-/?, = (Aggregate nonmember DDA)/(Aggregate country bank DDA). (June and December) call reports. Thus, models have been 4'fit" both including and excluding the Semiannual values of R are available through values of R for March 1973 and October 1973. June 1973, while values of R for March and The three illustrative models express the ratio October. 1973 have also been obtained. To illusat time t, R, as" a function of t and of other trate the historical sequence, the Values of R from t independent'variables. In each case, the data used December 1961 through October 1973 " are preto estimate the parameters of the model consist sented in Table A-1 and plotted in Chart A-1. of the values of R for the period June 1967 In this investigation a large number of models t through June 1973 (the value of R for March 1973 have been considered, three of which are presented t is omitted). below. Better results were obtained by considering The first model expresses R as a quadratic the sequence of ratios starting with June 1967, and t function of t. The fitted model is ^ee footnote 3, p. 85. Rn = 54.13 + 0.6518f + 0.0577*2 (1) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 A The observed values (R), fitted values (R), and and the "fit" for the individual points is except t deviations (R — R) are given in Table A-2, and tionally good. The estimated standard deviation of t t plotted in Chart A-2. While the over-all fit of the residuals is 0.46. Equation 1 is good (the coefficient of determi- The third model represents R t as a quadratic nation, R2, is 0.98), the deviations show runs of function of time and as a linear function of the pluses and minuses. This suggests that there are change, Q, in the average 90-day Treasury bill additional factors affecting R t that have not been rate. Here C t = X t — X f . J where X t is the average included in the model. Note that the estimated Treasury bill rate for the preceding half-year. The standard deviation of the residuals, s, is 0.79. specification in the second model would be appro- The second model represents R as a quadratic priate if it were believed that the differential impact t function of time and as a linear function of the of policy on deposit flows were permanent. One average 90-day Treasury bill rate for the preceding alternative hypothesis is that both types of banks half-year. One possible hypothesis is that policy experience the same sort of deposit response over has a more pronounced impact on member than time. However, member banks feel the impact of on nonmember banks. Thus when policy becomes, policy sooner than nonmember banks. This notion say, tighter, the ratio R may rise. (This is pred- would suggest specifying the interest rate variable icated on an assumption that customers of member as a change from the previous period. Thus when banks are more interest sensitive since member rates rise and stay at a new level for an extended banks tend to be located near financial centers.) time, the model would predict a rise and then a Consequently, the level of interest rates was in- fall back to the (quadratic) trend line in the next cluded in the model as a proxy for the stance of period when the value of the change variable policy. became zero. The fitted model is Such a model has been fit, and R t2 = 51.81 4- 0.3543* + 0.0795*2 R t3 = 53.92 + 0.7441* + 0.0503*2 + 0.5794X, (2) + 0.3842C (3) r where X is the average Treasury bill rate. The The fitted values and deviations are given in Table t fitted values and deviations are given in Table A-2, A-2, and plotted in Chart A-2. Again, the over-all and plotted in Chart A-2. Note that both the fit of Equation 3 is good (R2 = 0.99). The value over-all fit of Equation 2 is good (R2 = 0.995), of s is 0.70. TABLE A-2 OBSERVED VALUES, FITTED VALUES, AND DEVIATIONS OF RATIOS1 June 1967 through December 1973 Call report date R t RA n Rt—RAn R A n R-Rn RA ts Rt~RAt 3 June 1967 54.71 54.84 -.13 54.61 .10 54.32 .39 December 1967 ... 55.62 55.67 -.05 55.45 .17 55.78 -.16 June 1968 56.14 56.61 -.47 56.64 -.50 56.90 -.76 December 1968 ... 57.30 57.66 -.36 57.62 -.32 57.75 -.45 June 1969 59.69 58.83 .86 59.12 .57 59.19 .50 December 1969 ... 61.36 60.12 1.24 60.95 .41 60.60 .76 June 1970 61.78 61.52 .26 62.17 -.39 61.49 .29 December 1970 ... 63.07 63.04 .03 63.11 -.04 62.70 .37 June 1971 63.65 64.67 -1.02 63.77 -.12 64.01 -.36 December 1971 ... 65.85 66.42 -.57 65.97 -.12 66.62 -.77 June 1972 68.08 68.28 -.20 67.40 .68 67.81 .27 December 1972 ... 69.53 70.26 -.73 70.13 -.60 70.46 -.93 March 1973 72.30 71.29 -1.01 71.71 .59 71.59 .71 June 1973 73.57 72.36 1.21 73.40 .17 72.72 .85 October 1973 73.61 73.45 .16 75.39 -1.78 73.98 -.37 December 1973 ... 74.56 76.92 74.88 *The observed and fitted values of the ratio, R, at time t are denoted by Rt and Rt, respectively. RtJ refers to the fitted values of R as determined from formula (J) in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 89 CHART A-2 Observed and Fitted Values of the Ratios 54.13 + 0.6518T + 0.0577T2 ^ RF2 = 51.81 + 0.3543T • 0.0795T2 • 0.5794X, ^ ^ RT3 « 53.92 + 0.7441T + 0.0503T2 + 0.3842C T Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY STOCK-SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 95) Over-all measures Components and related items Mi Year and MI {Mi plus M 3 Deposits at commercial banks No t n hr b i a ft n k month (Currency time de- (M2 plus instituplus posits at nonbank CCuurrrreennccyy Demand Time and savings tions 5 demand coml. banks thrift in- CCDD''ss 44 deposits1) other than stitutions3) large CD's 2) Other Total 1967—January 175.3 319.3 487.8 38.5 136.8 17.4 143.9 161.3 168.5 February 177.1 322.9 492.8 38.7 138.4 18.4 145.8 164.2 169.8 March 178.4 325.8 496.8 38.9 139.6 19.0 147.3 166.3 171.0 April 177.8 327.3 499.8 39.0 138.8 19.0 149.5 168.5 172.5 May 179.6 331.2 505.4 39.1 140.5 19.0 151.6 170.6 174.1 June 181.1 334.6 510.2 39.2 141.8 19.5 153.5 173.1 175.6 July 182.5 337.8 514.9 39.4 143.1 19.6 155.4 175.0 177.1 August 183.5 340.8 519.4 39.5 144.0 20.0 157.3 177.3 178.6 September 184.6 343.5 523.4 39.8 144.9 20.2 158.8 179.0 179.9 October 185.6 345.8 527.0 39.9 145.6 20.2 160.3 180.4 181.1 November 186.2 347.8 530.0 40.0 146.2 20.4 161.6 182.0 182.2 December.. . . 186.9 349.7 532.8 40.4 146.5 20.4 162.7 183.1 183.1 1968—January 187.7 351.3 535.4 40.6 147. 1 20.7 163.7 184.4 184.0 February 188.7 354. 1 539.0 40.7 148.0 20.8 165.3 186.1 184.9 March 189.5 356. 1 541.9 41.1 148.4 20.6 166.7 187.3 185.8 April 190.4 358.0 544.6 41.4 149. 1 20. 1 167.6 187.7 186.5 May 192.3 360.8 548.1 41.5 150.8 20.0 168.5 188.4 187.3 June 194.0 363. 1 551.3 41.8 152.2 19.9 169.1 189.0 188.2 July 195.2 365.2 554.3 42.0 153.1 21.0 170. 1 191.1 189.1 S A e u p g t u em st ber 11996.7 1. 3 3 37 6 1 8 . . 8 8 5 5 6 58 3 . . 9 0 4 4 2 2 . . 3 6 1 1 5 53 4 . . 8 6 2 2 1 2. . 1 7 1 1 7 7 2 4 . . 6 5 1 1 9 9 4 6 . . 3 6 1 1 9 9 0 1 . . 1 2 October 198.5 375.1 567.6 42.8 155.7 22.8 176.7 199.4 192.4 November.... 200.3 379. 1 572.8 43.2 157. 1 23.0 178.9 201.9 193.7 December. . . . 201.5 382.4 577.1 43.4 158. 1 23.3 180.9 204.2 194.7 1969—January 202.7 384.7 580.4 43.6 159.1 21.5 182.0 203.4 195.7 February 204.0 386.6 583.3 43.9 160. 1 20. 1 182.6 202.8 196.7 March 204.7 388.2 585.7 44. 1 160.6 19.0 183.5 202.5 197.5 April 205.5 389.5 587.4 44.2 161.3 18.5 184.0 202.5 197.9 May 206.2 390.5 588.8 44.4 161.7 17.7 184.3 202.1 198.3 June 206.9 391.8 590.8 44.7 162.2 16.3 184.9 201.2 199.0 July 207.6 391.3 590.6 44.9 162.7 14.2 183.8 198.0 199.3 August 207. 1 390.3 589.9 45.2 161.9 12.6 183.2 195.8 199.6 September 207.5 390.6 591.0 45.3 162.2 11.7 183. 1 194.9 200.4 October 208. 1 391.2 592.0 45.6 162.5 11.2 183.1 194.3 200.8 D N e o c v e e m m b b e e r r . . . . . . . . 2 2 0 0 8 8 . . 6 7 3 3 9 9 2 2 . . 1 2 5 5 9 9 3 3 . . 8 5 4 4 6 5 . . 9 1 1 16 6 2 2 .8 . 5 1 1 0 0 . . 9 9 1 1 8 8 3 3 . . 5 6 119944.4. 4 2 2 0 0 1 1 . . 3 7 1970—January 210.4 393. 1 594.6 46.3 164.1 10.4 182.7 193.1 201.5 F M e a b r r c u h a ry 2 2 1 1 0 1 . . 0 7 3 3 9 9 2 5 . . 4 2 5 59 9 7 3 . .71 4 4 6 6 . . 5 8 1 1 6 6 3 5 . . 5 0 1 11 0 . . 6 6 1 1 8 8 2 3. . 5 4 1 19 9 5 3 . .0 1 2 20 0 1 1 . . 8 4 April 213.3 398.7 601.4 47.0 166.3 13.2 185.4 198.6 202.7 May. 214.3 401.2 604.9 47.6 166.8 13.5 186.9 200.4 203.7 June 215.0 403.3 608.0 47.6 167.4 13.7 188.2 201.9 204.8 July 216.0 407.1 613.5 47.9 168.1 17.0 191.2 208.2 206.3 August 217.2 411.7 619.8 48. 1 169.2 19.1 194.4 213.6 208.2 September.... 219.1 415.7 625.7 48.2 170.8 21.1 196.7 217.8 209.9 October 219.8 419.0 631.0 48.5 171.3 22.3 199.2 221.5 212.0 November.... 220.6 421.8 635.7 48.7 171.9 23.5 201.2 224.6 213.9 December. . . . 221.2 425.2 641.2 49. 1 172.2 25.3 203.9 229.2 216.1 1971—January 221.8 429.4 648.9 49.4 172.4 26.5 207.6 234.1 219.4 February 224.2 436.5 659.7 49.8 174.5 27.4 212.3 239.6 223.2 March 226. 1 443.3 670.0 50.0 176. 1 28.3 217.2 245.5 226.8 April 227.8 447.8 678.5 50.5 177.3 28.2 220.0 248.2 230.7 May 230.3 452.7 686.8 50.8 179.6 28.8 222.4 251.2 234.1 June 232.2 456.7 693.8 51.0 181.2 29.6 224.5 254.1 237.0 July 233.6 459.4 699.5 51.5 182. 1 30.4 225.9 256.3 240.1 August 233.8 461.2 704.0 51.6 182.2 30.5 227.4 257.9 242.8 September 234. 1 462.9 708.5 51.9 182.2 31.3 228.8 260.1 245.6 October 234.9 466.5 715.0 52.2 182.7 32.1 231.6 263.8 248.5 November 234.8 469.5 720.7 52.3 182.5 32.1 234.7 266.7 251.3 December. . . . 235.2 473.0 726.9 52.6 182.6 33.0 237.9 270.9 253.9 1972—January 235.5 477.3 735.2 52.9 182.6 33.4 241.8 275.2 257.9 February 238.2 482.9 745.0 53.2 184.9 33.9 244.7 278.7 262.1 March 240.5 487.6 753.5 53.6 186.9 33.7 247. 1 280.7 265.9 April 242.0 490.6 760.0 53.8 188.2 35.1 248.5 283.6 269.4 May 242.8 494. 1 766.5 54.1 188.7 36.5 251.3 287.9 272.4 June 244.2 498.4 774.1 54.3 189.8 37.4 254.3 291.7 275.7 July 246.6 503.7 783.3 54.6 192.0 37.9 257. 1 295.0 279.6 August 247.9 507.8 791.1 54.9 193.0 38.7 259.9 298.6 283.2 September.... 249.5 511.9 798.8 55.3 194.2 39.8 262.4 302.1 286.9 October 251.3 516.6 807.2 55.8 195.6 40.2 265.3 305.5 290.6 November 252.6 520.1 813.9 56.3 196.3 41.9 267.5 309.4 293.8 December. . . . 255.7 525.5 822.4 56.9 198.7 43.4 269.9 313.3 296.9 1973—January 256.7 529.6 830.4 57.1 199.6 44.7 272.8 317.6 300.8 February 257.9 532.3 836.7 57.5 200.4 49. 1 274.4 323.5 304.4 March 258.1 534.6 841.7 58.0 200.1 54.6 276.6 331.1 307.0 April 259.4 538.3 847.7 58.6 200.8 58.4 278.9 337.3 309.4 May 262.4 543.6 855.0 58.9 203.4 61.3 281.3 342.6 311.4 June 265.5 549.4 863.5 59.4 206.2 62.0 283.8 345.8 314.2 July 266.4 552.0 867.9 59.5 207.0 63.9 285.6 349.4 315.9 August 266.2 554.9 870.9 59.8 206.4 66.3 288.7 355.0 315.9 September 265.4 556.6 873.2 60.2 205.2 66.7 291.2 357.9 316.6 October 266.5 561.6 879.8 60.4 206.1 63.8 295.1 358.9 318.3 November 268.8 566.7 886.9 60.9 207.9 62.0 297.8 359.9 320.2 December. . . . 270.4 570.7 893.2 61.6 208.8 62.8 300.3 363.1 322.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY STOCK—NOT SEASONALLY ADJUSTED 91 In billions of dollars (for footnotes see page 95) Over-all measures Components and related items M2 Nonbank Y m ea o r n a th n d (Cu M rr I ency (M ti i m p e lu d s e - (M2 M 3 p lus Cur- Deposits at commercial banks in th st r i i t f u t plus posits at nonbank rency Time and savings tions 5 demand coml. banks thrift in- Demand deposits la o r t g h e e C r D th 's a n 2 ) stitutions 3) CD's 4 Other Total 1967—January. . , 180.5 324.1 493.1 38.5 142.0 17.2 143.6 160.8 169.0 February., 175.5 321.1 490.9 38.3 137.1 18.4 145.6 164.1 169.8 March. . . , 176.7 324.5 495.9 38.5 138.2 19.1 147.8 166.9 171.4 April 178.7 328.8 501.6 38.6 140.0 18.8 150.1 168.9 172.9 May 176.1 328.2 502.2 38.8 137.3 18.8 152.1 170.9 174.0 June 179.5 333.4 509.4 39.2 140.3 19.2 153.9 173.1 176.1 July 181. 1 336.8 514.3 39.6 141.5 19.5 155.7 175.3 177.5 August.. .. 180.9 338.3 516.5 39.6 141.3 20.5 157.4 177.9 178.2 September, 183.6 342.5 522. 1 39.7 143.8 20.2 158.9 179. 1 179.6 October. .. 185.9 346.4 527. 1 40.0 145.9 20. 1 160.5 180.5 180.8 November, 187.8 348.4 530.0 40.5 147.3 20.8 160.6 181.4 181.6 December. 192.6 354.1 537.2 41.2 151.3 20.6 161.5 182. 1 183.1 1968—January.. 193.2 356.4 540.6 40.5 152.7 20.7 163.2 183.9 184.2 February., 187.0 352.0 536.7 40.3 146.7 20.9 165.1 185.9 184.7 March. . . 187.6 354.8 541.0 40.7 146.9 20.7 167.2 187.9 186.2 April 191.4 359.8 546.7 41.0 150.4 19.8 168.3 188.2 186.9 M ay 188.7 357.9 545.2 41.3 147.5 19.6 169.2 188.7 187.3 June 192.3 362.0 550.8 44.8 150.5 19.3 169.7 189.0 188.8 July 194.0 364.5 554.1 42.3 151.8 20.7 170.4 191. 1 189.6 August. . . 193.5 366.2 555.9 42.5 151.1 22.2 172.7 194.8 189.7 September 196.2 370.7 561.6 42.6 153.5 22.2 174.6 196.7 190.9 October. ., 198.5 375.2 567.2 42.8 155.7 23.0 176.7 199.7 192.0 November 202.0 379.6 572.5 43.6 158.3 23.8 177.6 201.4 192.9 December. 207.6 387.2 581.7 44.3 163.3 23.6 179.6 203.2 194.6 1969— F J e a b n r u u a a r r y y .. . 2 2 0 0 8 2 . . 6 0 3 3 8 89 4 . . 9 4 5 5 8 8 0 5. . 8 8 4 4 3 3 . . 5 4 1 1 6 5 5 8 . . 1 6 2 2 1 0 . . 6 2 1 1 8 8 1 2 . . 3 4 2 2 0 0 2 2 . . 9 6 1 1 9 9 5 6 . . 8 3 March 202.7 386.9 584.7 43.7 159.0 19.0 184.1 203.2 197.8 April 206.6 391.5 590.0 43.8 162.8 18. 1 184.9 203.0 198.5 May 202.4 387.6 586. 1 44.2 158.2 17.2 185.3 202.4 198.5 June 205.3 390.9 590.7 44.7 160.6 15.7 185.6 201.3 199.8 July 206.4 390.5 590.5 45.2 161.2 13.9 184. 1 198.0 200.0 August 204.3 387.5 586.9 45.4 159.0 12.9 183. 1 196.0 199.4 September 206.3 389.3 489.3 45.3 161.0 11.9 183.0 194.9 200.0 October. ., 208.2 391.0 591.4 45.6 162.5 11.5 182.8 194.4 200.4 November 210.3 392.3 592.6 46.4 163.9 11.4 182.0 193.4 200.3 December. 214.7 396.8 598.2 46.9 167.7 11.1 182. 1 193.2 201.4 1970—January. . 216.4 398.6 600.0 46.1 170.3 10.5 182.2 192.7 201.4 February., 207.8 390.1 591.0 45.9 161.9 10.6 182.3 193.0 200.9 March 209.6 394.0 596.2 46.3 163.3 11.5 184.4 195.9 202.2 April 214.4 401.0 604.2 46.6 167.8 12.8 186.6 199.3 203.4 May 210.6 398.6 602.6 47.3 163.3 13.0 188. 1 201.1 204.0 June 213.4 402.6 608.2 47.7 165.7 13. 1 189.2 202.3 205.7 July 214.8 406.3 613.5 48.3 166.6 16.5 191.5 208.0 207.2 August... 214.6 408.9 616.9 48.3 166.3 19.5 194.3 213.8 208.0 September 217.9 414.4 623.9 48.2 169.6 21.5 196.5 218.1 209.5 October. . 219.6 418.5 629.9 48.5 171. 1 23.2 198.8 222.0 211.4 November 222.1 421.6 634.5 49.2 172.9 24.6 199.5 224.1 212.9 December. 227.6 429.9 645.5 50.0 177.7 25.8 202.3 228.1 215.6 1971—January. . 228.1 435.0 654.2 49.1 179.0 26.9 206.9 233.8 219.3 February. 221.9 434.1 656.7 49.1 172.7 27.3 212.2 239.6 222.6 March.... 223.8 442.1 669.2 49.5 174.3 28.0 218.3 246.2 227.2 April 229.0 450.4 582.0 50. 1 178.9 27. 1 221.4 248.5 231.5 May 226.3 450.2 684.7 50.5 175.8 27.5 223.9 251.4 234.5 June 230.5 456.1 694.2 51.0 179.4 28.3 225.7 254.0 238.0 July 232.5 458.7 699.8 51.9 180.6 29.5 226.2 255.6 241.1 August... 231.0 458.2 700.9 51.9 179.1 31.2 227.2 258.3 242.8 September 232.8 461.4 706.6 51.9 180.9 32. 1 228.6 260.6 245.2 October. ., 234.5 465.6 713.5 52.2 182.3 33.5 231.1 264.6 247.9 November, 236.4 468.9 718.9 52.7 183.6 33.6 232.5 266.1 250.0 December. 241.9 477.9 731.2 53.5 188.4 33.8 236.0 269.8 253.3 1972—January. . 241.9 482.8 740.4 52.5 189.4 33.7 240.9 274.6 257.5 February., 235.6 480.4 742.0 52.6 183.1 33.6 244.8 278.4 261.6 March 238.1 486.9 753.2 53.1 185.0 33.3 248.7 282.0 266.3 April 243.4 494.1 764.5 53.5 189.9 33.8 250.7 284.5 270.3 May 238.6 492.2 765.1 53.9 184.7 35.1 253.6 288.6 272.9 June 242.4 497.9 774.7 54.4 187.9 35.8 255.6 291.4 276.8 July 245.7 502.7 783.4 55.1 190.6 37.0 257.0 294.0 280.6 August... 244.8 504.5 787.6 55.1 189.8 39.9 259.6 299.5 283.2 September 248.1 509.9 796.4 55.3 192.8 41.0 261.8 302.7 286.5 October.. 250.9 515.0 805.0 55.7 195.2 41.9 264.1 306.0 290.0 November 254.2 518.7 811.2 56.7 197.4 43.3 264.5 307.8 292.5 December. 263.0 530.6 826.6 57.9 205.1 44.3 267.6 311.8 296.0 1973—January. . 263.5 535.4 835.8 56.8 206.8 45.1 271.8 316.9 300.4 February. 255.2 529.8 833.6 56.8 198.4 48.6 274.6 323.3 303.8 March. . . 255.5 534.0 841.5 57.4 198.1 54.0 278.5 332.6 307.4 April 260.9 542.3 852.6 58.3 202.6 56.1 281.4 337.6 310.3 May 257.9 541.7 853.6 58.7 199.2 58.8 283.8 342.6 312.0 June 263.6 548.8 864.0 59.4 204.1 59.3 285.2 344.5 315.3 July 265.7 551.0 868.0 59.9 205.7 62.3 285.3 347.6 317.0 August... 262.9 551.1 867.0 60.0 202.9 68.4 288.2 356.6 315.9 September 263.9 554.2 870.4 60.1 203.8 68.8 290.3 359.2 316.1 October. . 266.0 559.9 877.5 60.4 205.6 66.3 293.9 360.2 317.6 November 270.5 565.1 884.0 61.4 209.1 64.1 294.6 358.7 318.9 December. 278.1 575.8 897.6 62.6 215.5 64.1 297.7 361.8 321.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 MONEY STOCK—SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 95) Over-all measures Components and related items YYYeeeaaarrr aaannnddd MMii Deposits at commercial banks wwweeeeeekkk--- MMii ((MMii pplluuss eeennndddiiinnnggg ((CCuurrrreennccyy ttiimmee ddeepp.. CCuurrrreennccyy dddaaattteee pplluuss aatt ccoommll.. Time and savings ddeemmaanndd bbaannkkss ootthheerr DDeemmaanndd ddeeppoossiittss11)) tthhaann llaarrggee ttiimmee CCDD''ss 22)) CD's4 Other Total 1973 January 3 256.7 528.8 56.6 200.0 43.8 272.1 315.9 10 256.1 528.1 57.2 198.9 44.2 272.1 316.2 17 256.6 529.6 57.2 199.4 44.2 273.1 317.3 24 256.2 529.5 57.2 199.0 45.0 273.2 318.2 31 256.9 530.6 57.1 199.8 46.0 273.7 319.7 February 7 256.5 530.0 57.4 199.1 47.6 273.5 321.1 14 258.3 532.8 57.5 200.8 48.6 274.5 323.1 21 258.6 533.3 57.7 200.9 49.5 274.8 324.2 28 258.3 533.4 57.6 200.8 50.9 275. 1 325.9 March 7 258.4 534.2 57.8 200.6 52.0 275.8 327.8 14 257.8 533.7 57.9 199.8 54.2 275.9 330.1 21 258.5 535.2 58.1 200.4 55.0 276.8 331.8 28 258.4 535.7 58.1 200.3 56.0 277.4 333.4 AApprriill 44 258.2 535.7 58.2 200.0 57.4 277.5 334.8 1111 258.6 536.3 58.6 200.0 58.4 277.8 336.1 18 259.5 538.9 58.7 200.8 58.1 279.5 337.6 25 259.6 539.0 58.8 200.8 58.7 279.4 338.1 May 2 260.3 540.1 58.6 201.7 59.4 279.8 339.2 9 261.4 541.5 59.0 202.4 60.7 280.1 340.8 16 262.3 543.5 58.9 203.4 61.3 281.1 342.4 23 262.9 544.7 59.0 203.9 61.7 281.8 343.5 30 263.0 545.2 59.0 203.9 62.0 282.3 344.2 June 6 264.1 547.2 59.2 204.9 61.3 283.1 344.4 13 265.3 548.8 59.4 205.9 62.0 283.5 345.5 20 266.3 550.2 59.4 206.9 61.8 283.9 345.7 27 266.3 550.5 59.4 207.0 62.4 284.1 346.5 July 4 266.1 550.9 59.3 206.8 62.9 284.8 347.7 11 266.5 551.4 59.5 207.1 63.2 284.9 348.1 18 266.8 552.4 59.5 207.4 63.6 285.5 349.1 25 266.3 552.2 59.5 206.8 64.4 285.9 350.3 AAuugguusstt 11 266.1 553.0 59.4 206.6 64.9 286.9 351.8 88 266.0 553.7 59.8 206.2 65.6 287.7 353.3 15 266.3 554.4 59.8 206.6 66.4 288.1 354.5 22 266.7 555.8 59.9 206.8 66.5 289.1 355.6 29 266.3 555.7 59.9 206.4 66.6 289.4 356.0 September 5 265.1 555.7 59.9 205.2 66.5 290.6 357.1 12 265.4 556.1 60.1 205.3 66.8 290.7 357.4 19 265.4 556.4 60.1 205.3 67.4 291.0 358.4 26 265.4 557.1 60.1 205.3 66.7 291.7 358.4 October 3 266.0 558.8 60.2 205.8 65.2 292.8 358.0 10 265.8 559.9 60.7 205.1 64.0 294.0 358.0 17 267.8 562.7 60.4 207.5 63.5 294.8 358.3 24 265.1 560.9 60.5 204.6 63.7 295.8 359.5 31 266.2 562.2 60.2 206.1 63.5 296.0 359.5 November 7 268.1 565.7 60.7 207.4 62.5 297.6 360.1 14 269.1 567.2 60.9 208.2 61.9 298.1 360.0 21 269.4 566.8 61.1 208.3 61.9 297.4 359.3 28 269.0 567.2 61.0 208.0 61.9 298.2 360.1 December 5 269.1 568.2 61.0 208.1 61.7 299.1 360.8 12 270.7 569.7 61.5 209.2 63.0 298.9 361.9 19 270.9 571.8 61.6 209.4 62.2 300.9 363.1 26 271.0 571.6 62.0 208.9 63.0 300.7 363.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 93 MONEY STOCK—NOT SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 95) Over-all measures Components and related items Year w a e n e d k - MI (M M i p 2 lus Deposits at commercial banks U.S. ending (Currency time dep. Currency Govt. date plus at coml. Time and savings deposits6 demand banks other Demand deposits!) than large time CD's 2) CD's 4 Other Total 1973 271.3 542.2 57.4 213.9 43.9 270.8 314.8 10.4 10 267.6 538.2 57.6 210.0 44.8 270.6 315.5 7.5 17 265.8 537.7 57.0 208.8 44.9 271.9 316.8 5.9 24 260.2 532.4 56.4 203.8 45.4 272.2 317.6 8.0 31 256.4 529.7 55.9 200.5 45.8 273.3 319.1 10.1 FFeebbrruuaarryy 7 256.8 529.8 56.8 200.0 47.1 273.0 320.1 8.8 14 255.8 530.4 57.0 198.7 48.0 274.6 322.6 9. 1 21 255.2 530.3 56.9 198.3 49.0 275.0 324.0 10.9 28 252.9 528.7 56.4 196.5 50.5 275.8 326.3 10.6 MMaarrcchh 7 256.3 533.2 57.4 198.9 52.1 276.9 329.0 9.7 14 255.4 533.3 57.6 197.8 53.9 277.9 331.8 8.5 21 256.2 534.9 57.5 198.7 54.2 278.7 333.0 11.6 28 253.7 533.5 57.1 196.6 55.2 279.8 335.0 11.6 AApprriill 4 258.5 538.8 57.7 200.8 55.7 280.4 336.0 10.3 11 261.5 541.8 58.7 202.9 56.6 280.2 336.8 6.3 18 263.9 546.1 58.5 205.5 55.6 282.2 337.8 6.1 25 259.4 541.1 58.1 201.2 56.2 281.7 337.9 9.4 MMaayy 2 258.9 541.3 57.8 201.1 56.5 282.4 338.9 11.7 9 257.7 540.3 59.1 198.6 57.9 282.5 340.4 10.9 16 259.1 542.7 58.8 200.3 58.5 283.6 342.1 8.5 23 256.6 540.9 58.6 198.0 59.4 284.4 343.8 7.8 30 257.0 542.0 58.6 198.4 59.7 285.0 344.7 6.9 JJuunnee 6 262.4 547.7 59.4 203.0 59.3 285.3 344.6 5.1 13 264.2 549.7 59.7 204.4 59.7 285.5 345.2 3.4 20 265.0 550.1 59.5 205.5 58.5 285.1 343.6 8.5 27 261.7 546.3 59.0 202.7 59.5 284.6 344.1 9.7 JJuullyy 4 266.4 552.1 59.8 206.6 59.8 285.7 345.5 10.1 11 268.0 552.7 60.5 207.5 60.7 284.7 345.4 6.6 18 267.0 552.1 60.1 206.9 61.9 285.1 347.0 5.1 25 263.4 548.6 59.6 203.8 63.8 285.2 349.0 6.3 AAuugguusstt 1 283.3 549.7 59.4 203.9 64.9 286.4 351.3 6.2 8 263.7 551.1 60.5 203.3 66.6 287.3 353.9 5.0 15 264.4 552.1 60.3 204.2 68.2 287.7 355.9 3.9 22 263.4 552.0 60.0 203.4 69.1 288.6 357.7 4.0 29 260.2 548.8 59.4 200.7 69.9 288.7 358.6 3.5 SSeepptteemmbbeerr 5 263.3 553.6 60.3 203.1 69.1 290.2 359.3 3.2 12 265.6 555.4 60.5 205.1 69.0 289.9 358.9 3.7 19 265.5 555.3 60.1 205.5 69.2 289.8 359.0 5.1 26 260.9 551.4 59.6 201.3 68.8 290.6 359.4 6.9 OOccttoobbeerr 3 264.7 556.7 59.8 204.8 67.5 292.0 359.5 8.0 10 265.6 558.6 61.0 204.5 66.8 293.0 359.7 6.5 17 267.7 561.4 60.5 207.2 66.3 293.6 359.9 5.2 24 264.2 558.6 60.4 203.8 66.3 294.4 360.7 5.8 31 266.2 560.5 59.8 206.4 65.5 294.3 359.8 5.6 NNoovveemmbbeerr 7 270.1 564.8 61.1 209.0 64.5 294.7 359.2 5.7 14 271.2 566.1 61.5 209.8 63.9 294.9 358.8 3.7 21 270.9 564.8 61.7 209.3 64.2 293.9 358.1 3.9 28 269.6 564.1 61.3 208.2 64.1 294.5 358.6 4.1 DDeecceemmbbeerr 5 273.2 569.0 61.8 211.4 63.5 295.8 359.3 4.4 12 276.5 572.6 62.6 213.9 64.4 296.1 360.5 3.2 19 278.3 576.6 62.7 215.7 63.4 298.3 361.7 5.6 26 227788..77 557766..99 6633..33 215.4 64.4 298.3 362.7 8.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AGGREGATE RESERVES AND MEMBER BANK DEPOSITS In billions of dollars (for footnotes see page 95) Member bank reserves, S.A. 7 Deposits subject to reserve requirements9 Total member bank deposits plus nondeposit S.A. items10 Period Non- Re- Avail- Demand Demand Total bor- qquuiirreedd able 8 Time Time rowed Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1967— J A J D O F A S N M M J u u a e e u p e o c a n a p l n b c g r v y t y e r t u e r o i u e e l c m u a b m s m h t a r e b b . b y r r . e e y . e . . r . . r r . . . . . . . . 2 2 2 2 2 2 2 2 2 2 2 2 3 3 4 4 4 3 3 3 4 3 3 4 . . . . . . . . . . . . 8 1 5 6 7 4 4 9 3 6 8 4 1 8 9 3 8 3 7 4 7 7 0 4 2 2 2 2 2 2 2 2 2 2 2 2 3 4 4 3 3 3 3 3 3 4 4 4 . . . . . . . . . . . . 1 2 5 2 3 5 8 2 4 6 1 5 8 8 8 9 5 3 3 7 4 4 0 4 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 4 3 3 4 3 4 3 4 . . . . . . . . . . . . 1 2 4 5 0 0 0 3 0 4 8 4 8 3 3 6 3 7 3 9 4 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 2 1 2 2 2 2 . . . . . . . . . . . . 5 2 9 8 7 5 1 1 5 4 5 2 5 8 8 3 3 4 9 3 0 0 0 7 2 2 2 2 2 2 2 2 2 2 2 2 4 5 5 5 5 6 7 5 7 7 7 6 9 5 5 2 2 9 5 5 8 0 3 8 . . . . . . . . . . . . 1 8 9 9 5 5 7 3 6 2 7 2 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 4 4 4 4 4 4 3 4 1 4 5 7 2 8 1 8 4 6 9 6 . . . . . . . . . . . . 1 5 9 8 8 6 3 1 9 7 2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 2 2 6 3 4 8 5 6 8 1 0 9 1 0 . . . . . . . . . . . . 8 6 8 3 0 2 9 3 7 8 0 2 4 4 4 4 5 3 3 6 3 5 5 3 . . . . . . . . . . . . 8 0 0 4 3 7 2 8 9 5 0 4 ' . 2 2 2 2 2 2 2 2 2 2 2 2 5 5 6 5 5 6 7 7 6 7 6 5 3 5 3 1 8 2 9 8 4 6 5 8 . . . . . . . . . . . . 3 2 5 2 8 4 7 5 5 0 6 7 . 1 1 1 1 1 1 1 1 1 1 1 1 3 4 3 3 3 4 3 4 4 4 4 4 1 3 6 7 1 4 8 9 6 5 6 7 . . . . . . . . . . . . 1 1 3 9 3 1 0 4 9 2 6 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 1 7 8 3 7 4 6 3 1 9 5 2 6 . . . . . . . . . . . . 4 9 5 7 1 4 4 4 9 3 5 1 4 4 4 3 4 4 3 5 4 5 3 5 . . . . . . . . . . . . 3 5 3 7 8 1 4 4 6 5 7 7 2 2 2 2 2 2 2 2 2 2 2 2 5 5 5 6 6 6 6 7 7 7 7 7 3 6 1 9 2 5 8 4 9 9 7 2 . . . . . . . . . . . . 6 3 3 7 6 2 5 5 8 9 9 0 . . 2 2 2 2 2 2 2 2 2 2 2 2 5 5 5 6 6 6 6 6 7 7 8 7 6 5 8 1 4 1 9 9 3 7 2 9 . . . . . . . . . . . . 8 8 7 6 6 3 9 7 9 9 0 0 1968— M F Ja e a n b r u r c u a h a r . y r . . y . . . . . . • 2 2 2 5 5 5. . . 7 6 2 1 8 9 2 2 2 5 5 5. . . 3 0 0 1 5 5 2 2 2 4 5 5 . . . 9 2 3 1 9 7 2 2 2 3 3 3 . . . 0 3 2 6 3 4 - 2 2 2 7 7 7 6 9 9 . . . 9 8 0 1 1 1 4 5 5 9 1 1 . . . 1 8 8 1 1 1 2 2 2 1 2 2 . . . 8 9 4 5 5 5. . . 5 3 1 2 2 2 7 8 7 8 0 9 . . . 8 7 5 1 1 1 4 5 5 0 9 2 . . . 9 4 2 1 1 1 2 2 2 1 1 7 . . . 5 4 0 4 6 5 . . . 4 4 8 2 2 2 8 8 8 1 3 4 . . . 3 5 5 2 2 2 8 8 8 5 3 4 . . . 1 2 2 April..... 25.64 24.96 25.31 23.37 279.8 151.8 123.2 4.8 280.1 152.0 124.3 3.7 284.6 284.9 May 25.72 24.98 25.36 23.55 280.7 152. 1 124.5 4.1 279.1 152.3 121.2 5.6 286.4 284.7 June 25.96 25.26 25.63 23.64 282.8 152.3 125.6 4.9 281.1 152.2 124.1 4.8 289.0 287.3 July 25.14 25.61 25.79 23.81 284.7 154.0 126.7 4.1 284.4 154.0 125.4 5.0 291.4 291.1 August 26.58 26.01 26.25 24.06 288.9 156.7 127.4 4.8 286.6 157. 1 124.6 4.8 295.8 293.5 September. 26.49 25.99 26.13 24.16 290.7 158.5 127.6 4.7 290.2 158.6 126.4 5. 1 298.0 ' 297.4 O No c v to e b m e b r e .. r . . 2 26 6 . . 7 9 5 6 2 26 6 . . 3 4 1 2 2 2 6 6 . . 5 6 1 6 2 2 4 4 . . 1 3 4 6 2 29 9 7 4 . . 1 5 1 1 6 6 0 2 . .6 8 1 1 2 2 9 8 . . 1 1 5 5. . 3 7 2 2 9 9 4 6 . . 5 2 1 16 6 2 1 . . 3 0 1 1 2 3 8 0 . . 2 1 5 3. . 6 4 3 3 0 01 4 . . 7 2 3 3 0 0 1 3 . . 7 4 December. 27.28 26.54 26.86 24.86 299.6 164.4 130.3 4.9 303.2 163.8 ,135.3 4.1 306.6 310.2 1969— F M Ja e a n b r u r c u a h a r . y r . y . . . . . . . 2 2 2 7 7 7 . . . 0 2 3 6 2 0 2 2 2 6 6 6 . . . 3 5 1 9 6 6 2 2 2 6 7 6 .8 . . 0 9 2 5 7 2 2 2 4 4 4 . . . 7 7 7 8 6 4 2 2 2 9 9 9 5 8 8 . . . 8 6 2 1 1 1 6 6 6 1 1 3 . . . 9 2 0 1 1 1 3 3 3 1 1 0 . . . 4 4 7 4 5 3 . . . 9 2 0 2 2 30 9 9 3 7 5 . . . 9 5 1 1 1 1 6 6 6 1 1 2 . . . 8 7 6 ' 1 1 1 2 3 3 9 0 6 . . . 9 3 2 4 3 5 . . . 2 9 9 3 3 3 0 0 0 5 6 6 . . . 1 5 9 ' 3 3 3 0 1 0 6 1 4 . . . 6 0 8 April 27.27 26.27 27.10 25.03 297.7 160.7 131.5 5.5 298.3 160.9 132.8 4.5 307.3 307.9 May 28.05 26.68 27.80 25.23 298.3 159.9 131.9 6.5 296.6 • 160.1 * 128.6 7.9 309.0 ,307.2 June 27.93 26.55 27.63 25.12 296.2 158,6 132.4 5.3 294.4 158.6, 130.9 5.0 311.1 309.4 July. . . . 27.49 26.24 27.27 24.87 292.0 155.3 132.2 4.4 291.1 . 155.3 131.1 4.7 309.7 ,308.8 August.... 27.34 26.12 27. 10 25.24 287.9 153.1 132.0 2.8 285.9 153. 1 /129.2 3.5 306.4 ,'304.4 September. .27.28 26.20 27.00 25. 12 287.6 151.8 132.0, 3.8 287.0 151.8' 130.8 4.4 306.1 . 305.5 O No c v to e b m e b r e .. r . . 2 2 7 7 . . 3 8 9 2 2 2 6 6 . . 2 6 4 2 2 27 7 . . 5 2 9 2 , < 2 2 5 5 . . 1 3 2 9 , 2 2 8 8 6 8 . . 2 3 1 1 5 50 1 . . 9 0 1 13 3 2 1 . . 1 8 3 5 . . 4 3 2 2 8 8 6 7 . . 2 4 1 1 5 5 1 0 . . 1 0 > 1 13 3 3 1 * .7 1 4 3 . . 3 5 3 3 0 0 4 7 . . 9 9 1 ' 3 3 0 0 4 7. . 1 9 December. 28.01 26.90 27.73 25.40 287.7 150.4 131.9 5.3 291.2 149.7 v 136.9 4.6 307.7 311.1 1970—January.. . .27.97 27.01 27.80 25.40 286.9 149. 1 132.8 5.0 291.2 . 148.9 138.4 3.9 307.0 311.3 February.. 27.69 26.61 27.48 25.40 285.1 148.8 131.4 4.9 285.1 148.8, * 130.2 6.1 305.6 . 305.6 March.. . . 27.64 26.74 27.48 25.44 288.0 150.4 132.7 4.9 ,288.0 151.0 131.2 5.8 '-308.0 308.0 April 28.17 27.33 28.02 25.73 293.1 153.4 134.1 5.6 293.7 153.8 135.4 4.5 > 312 j 6 313.1 May 27.94 26.98 27.79 25.85 292.5 154.5 133.7 4.4 290.8 154.9 130.5 5.4 312.8 311.0 A J J S u u e u p l n y g t e e u m st b . e .. r . . 2 2 2 2 8 8 9 8 . . . . 3 7 0 0 3 0 7 2 2 2 2 2 8 7 6 7 . . . . 4 8 9 1 7 6 7 4 2 2 2 2 8 8 8 7 . . . . 1 5 8 8 6 2 2 3 2 2 2 2 6 7 6 6 . . . . 0 1 0 5 1 3 9 5 2 3 3 3 0 9 0 0 6 9 4 0 . . . . 1 9 3 4 1 1 1 1 6 6 6 5 5 9 1 5 . . . . 9 6 4 1 • 1 1 1 1 3 3 3 3 4 2 5 3 . . . . 6 9 0 8 6 5 5 5 . . . . 3 6 4 1 2 2 3 3 9 0 9 0 3 9 9 2 . . . . 9 3 4 7 1 1 1 1 6 6 6 5 0 9 6 5 . . . . 9 9 7 0 ' 1 1 1 1 3 3 3 3 2 3 2 1 . , . . 8 7 0 5 5 5 5 5 . . . . 8 9 8 4 • 3 3 3 3 2 4 2 1 0 2 6 5 . . . . 8 1 4 1 - 3 3 3 3 2 1 2 1 2 5 9 3 . . . . 8 7 3 2 October... 28.68 28.21 28.47 27.16 313.3 172.7 135.3 5.3 313.3 173.2 135.1 5.1; <327.5 327.5 November. 28.75 28.34 28.52 26.93 316.7 175.2 135.4 6.2 315.4 174.9 - 136.0 4.6 329.4 328.2 December. 29.19 28.86 28.95 27.10 321.3 178.8 136. 1 6.5 325.2 178. 1 141.1 6.0 332.9 336.8 1971—January.. . 29.37 29.00 29.14 27.25 325.8 182.8 136.9 6.1 330.7 182.8 142.2 5.6 335.9 340.8 February.. 29.63 29.30 29.38 •27.48 330.9 187.1 138.3 5.6 330.9 187: 1 136.8 7.0 339.5 339.5 March.. . . 29.76 29.44 29.56 27.75 334.6- 191.8 139.3 3.5 334.6 192.3 137.8 4:5 341.6 341.6 April 29.89 29.74 29.73 27.98 339. 1 193.8 140.1 5.3 339.8" 193.6 141.5 4.7, 344.2 344.9 May 30.33 30.05 30.11 28.28 342.6 195.9 141.5 5.2 340.9 , 195.8 138.4 6.7 346.7 345.0 A J J u u u n l g y e u st 3 3 3 0 0 0. . . 5 6 7 1 5 3 2 2 3 9 9 0 . . . 8 9 0 2 2 2 3 3 3 0 0 0 . . . 3 4 5 1 6 4 2 2 2 8 8 8 . . . 4 6 7 8 2 7 3 3 3 4 4 4 7 9 5 . . . 8 6 2 2 1 1 0 9 9 8 0 9 . . . 5 6 1 1 1 1 4 4 4 3 3 2 . . . 3 4 0 4 5 5 . . . 7 8 1 ' 3 3 3 4 4 4 7 3 6 . . . 1 7 1 ' 2 1 1 0 9 9 0 7 8 . . . 8 9 9 . 1 1 1 4 4 4 0 0 2 . . 6 9 .f 4 5 5 . . . 4 8 7 , 3 3 3 5 5 4 2 3 9 . . . 1 5 6 3 3 3 5 5 4 1 1 7 . . . 1 0 6 September. 31.06 30.56 30.87 28.68 351.6 202.1 143.3 6.2 * 350.9 ,202.7 141.9 6.3 355.6 . 354.9 October... 30.86 30.50 "30.70 28.78 353.0 205.0 143.0 5.0 ^53.0 205.9 142.7 4.3 357.8 357.8 November. 31.04 30.66 30.80 28.96 356.1 207.1 143.6 5.4 354.4 206.8 . 144.3 3.2 ' 361:5 359.7 December. 31.30 31.17 31.12 28.96 360.3 210.4 143.8 6.1 364.6 209.7 M49.2 5.7 364.3 368.7 1972— F Ja eb nu ru a a ry ry .. .. . 3 3 1 1 . . 6 7 8 6 3 3 1 1 . . 6 7 4 4 3 3 1 1. . 5 5 5 2 2 2 9 9 . . 1 3 8 6 3 3 6 6 3 5 . . 5 7 2 2 1 1 3 6 . . 6 2 ' 1 14 4 3 5 . . 2 '5 4 6 . . 2 4 3 36 6 5 8 . . 7 6 2 21 1 5 3 . . 9 4 1 14 4 3 9 . . 7 2 ' 6 6 . . 1 0 3 3 6 6 9 7 . . 3 5 3 36 7 9 2 . . 3 6 March.... 31.98 31.88 31.79 29.66 370.2 217.3 147.2 5.7 ' 370.2 218.1, ' 145.5 6.6 , 373.9. . 373.9 April 32.57 32.45 32.42 29.83 374.5 219.4 •147.6 7.5 375.3 219.8 149.0 6.5; « 378.1 378.8 May 32.82 32.71 32.68 29.94 378.9 222.8 148.4 7.8- 377.0 223.1 . 145.1 8.8 >382.7 380.8 June 32.99 32.88 32.78 30.17 380.9 225.6 149.3 6.0 378.6 225.2 147.8 5.7 384.7 382.4 July 33.17 32.93 32.97 30.38 384.4 228.0 150.9 5.5 383.2 227.1 150. 1 6.1 388.3, 387. 1 August.... 33.39 33.00 33.20 30.65 387.3 230.4 '151.8 5.0 384.5 231.3 149.0 4.3 391.4 388.7 O Se c p t t o e b m e b r e .. r . . 3 3 3 3 . . 8 8 1 5 3 3 2 3 . . 8 2 1 5 3 3 3 3 . . 5 1 9 4 3 31 0 . . 0 9 6 6 3 3 9 9 4 0 . . 1 4 2 2 3 33 5 . . 1 6 1 1 5 5 2 2 .4 8 4 5 . . 9 8 3 3 9 8 4 9 ; . 6 1 • 2 2 3 3 3 6 . . 8 2 1 1 5 5 0 2 . . 9 5 .5 4 . . 4 9 . 3 3 9 9 8 4. . 5 4 3 3 9 93 8 . . 8 4 November. 31.92 31.32 31.57 29.62 398.4 238.7 152.9 6.8 396.4' 237.6 " 153.7 . >5. 1 402.7 410.7 December. 31.41 30.36 31.13 29.05 402.0 241.4 154.5 6.1 * 406.8 240.7 160.1 6.1 406.4 411.2 1973— F Ja e n b u ru a a ry r . y . .. . 3 31 2 . . 6 2 3 0 3 3 1 0 . . 0 0 4 4 • 3 3 1 1 . . 9 4 4 3 2 29 9 . . 3 4 7 4 4 4 0 0 4 9 . . 7 0 2 24 4 8 4 . . 9 0 1 1 5 5 4 4 . . 0 0 6 6 . / 7 1 4 4 1 0 0 9 . . 4 0 2 2 4 4 3 8 : .5 8 1 1 6 5 0 2 * . . 4 0 6 8. . 1 6 4 4 1 09 3 . . 7 5 ' 4 41 1 3 5 . . 5 4 March.... 31.91 30.08 31.70 29.62 416.3 255.4 153.3 7.6 416.3 ' 256.2 151 i 6- 8.5 421.2 421.2 April 32.30 30.59 32.08 29.87 421.4 260.9 153.4 7.1 - . 422.3 260.5. 154.9' 6.8 426.6 427.4 May 32.44 30.60 32.29 30.11 425.1 265.1' 154.8 5.2 423.0 264.5 151.4 7.0 430.5 428.4 June 32.46 30.61 32.22* 30.55 428.9 267.3 156.3" 5.3 •426.3 265.9 154.8 5.6 434.5 432.0 July 33.58 31.62 33.29 31.36 431.1 270.1 157.1. 3.9' 429.9 268.5 156. 5.1 437.6 436.4 August 33.91 31.74 .33.73 32.04.. 436.7 275.0 157.0 4.8 433.7' 276.6> 154.0 3.1 443.8 440.8 September. 34.17 32.32 33.95 32.39 438.6 277.5 156:2 5.0 437.7 . 279.0 154.7 4.1 445.9* 445.0 October... 34.94 33.47 34.72 32.84 439.7 277.3s 156.4 6.0 439.7 278.8 156.1 4.8* . 446.5, 446.5 November. 34.86 33.46 24.62 32.71 440.4 277;1 157.5 5.8 438.2 276.6 158.3 3.2 447.5 445.3 December. '35.10 33.81 34.80 32.91 442.2 279 TO 158.3 4.9 447.5 278.5 164.0 5.0 449.6 454.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 95 NOTES TO TABLES 6At all commercial banks. 1 Includes (1) demand deposits at all commercial banks other 7Averages of daily figures. Member bank reserve series than those due to domestic commercial banks and the U.S. reflects actual reserve requirement percentages with no adjust- Govt., less cash items in the process of collection and Federal ment to eliminate the effect of changes in Regulations D and Reserve float; (2) foreign demand balances at Federal Reserve M. Banks; (3) currency outside Treasury, Federal Reserve Banks, 8Reserves available to support private nonbank deposits are and vaults of all commercial banks. defined as (1) required reserves for (a) private demand deposits, 2 Includes—in addition to currency and demand deposits— (b) total time and savings deposits, and (c) nondeposit sources savings deposits, time deposits open account, and time certifi- subject to reserve requirements, and (2) excess reserves. This cates of deposit (CD's) other than negotiable time CD's issued series excludes required reserves for net interbank and U.S. in denominations of $100,000 or more by large weekly report- Govt, demand deposits. ing commercial banks. Excludes time deposits of the U.S. 9Averages of daily figures. Deposits subject to reserve re- Govt, and of domestic commercial banks. quirements include total time and savings deposits and net 3Includes M2 plus the average of the beginning- and end-of- demand deposits as defined by Regulation D. Private demand month deposits of mutual savings banks and savings capital deposits include all demand deposits except those due to the at savings and loan associations. U.S. Govt., less cash items in process of collection and demand 4Negotiable time CD's issued in denominations of $100,000 balances due from domestic commercial banks. or more by large weekly reporting banks. 10Total member bank deposits subject to reserve require- 5 Average of beginning- and end-of-month deposits at mutual ments, plus Euro-dollar borrowings, bank-related commercial savings banks and savings capital at savings and loan associa- paper, and certain other nondeposit items. This series for tions. deposits is referred to as "the adjusted bank credit proxy." NOTES relating to changes in series over the 1967-73 period for the tables on pp. 90-94 are as follows: 1. Effective Mar. 2, 1967, the reserve requirement of all Euro-dollars, by member banks and the sale of assets to their member banks against savings deposits and the first $5 million foreign branches was raised from 10 per cent to 20 per cent. of time deposits was reduced from 4 per cent to 3l/z per cent. This action had little effect on required reserves and RPD's. This action reduced required reserves and RPD's approximately 9. Effective Nov. 9, 1972, Regulations D and J were revised $425 million. to (1) adopt a system of reserve requirements against demand 2. Effective Mar. 16, 1967, the reserve requirement of all deposits of all member banks based on the amount of such member banks against savings deposits and the first $5 million deposits held by a member bank, and (2) to require banks— of time deposits was reduced from V/2 per cent to 3 per cent. member and nonmember—to pay cash items presented by a This action reduced required reserves and RPD's approximately Federal Reserve Bank on the day of presentation in funds $425 million. available to the Reserve Bank on that day. These changes 3. Effective Jan. 11, 1968, the reserve requirement of reserve reduced required reserves approximately $2.5 billion, effective city banks against net demand deposits in excess of $5 million Nov. 9; and $1.0 billion, effective Nov. 16, and increased was increased from 16'/2 per cent to 17 per cent. This action required reserves $300 million, effective Nov. 23. On the same increased required reserves approximately $360 million and dates RPD's were reduced $2.3 billion and $785 million and RPD's $310 million. increased $235 million, respectively. 4. Effective Jan. 18, 1968, the reserve requirement of 10. Effective June 21, 1973, the Board amended its Regucountry banks against net demand deposits in excess of $5 lation D to establish a marginal reserve requirement of 8 per million was increased from 12 per cent to 121^ per cent. This cent against certain time deposits and to subject to the 8 per action increased required reserves approximately $190 million cent reserve requirement certain deposits exempt from the^ate and RPD's $170 million. limitations of the Board's Regulation Q. In addition, reserves 5. Effective Apr. 17, 1969, the reserve requirement of all against certain foreign branch deposits were reduced from 10 member banks against net demand deposits was increased V2 per cent to 8 per cent. These changes had little effect on percentage point. This action increased required reserves ap- required reserves or RPD's. proximately $660 million and RPD's $590 million. 11. Effective July 12, 1973, reserve requirements were 6. Effective Oct. 16, 1969, a 10 per cent marginal reserve imposed against finance bills. This action increased required requirement was established on certain foreign borrowings, reserves and RPD's approximately $90 million. primarily Euro-dollars, by member banks and on the sale of 12. Effective July 19, 1973, the reserve requirement against assets to their foreign branches. This action increased required all net demand deposits, except the first $2 million, was reserves and RPD's approximately $400 million. increased V2 percentage point. This action increased required 7. Effective Oct. 1, 1970, the reserve requirement of all reserves approximately $760 million and RPD's approximately member banks against time deposits (other than savings de- $670 million. posits) in excess of $5 million was reduced from 6 per cent 13. Effective Oct. 4, 1973, the marginal reserve requirement to 5 per cent. At the same time, a 5 per cent reserve requirement against certain time deposits was increased from 8 per cent was imposed against funds obtained by member banks through to 11 per cent. This action increased required reserves and the issuance of commercial paper by their affiliates. This action RPD's approximately $465 million. reduced required reserves and RPD's approximately $500 mil- 14. Effective Dec. 27, 1973, the marginal reserve requirelion (net). ment against certain time deposits was reduced from 1 1 per 8. Effective Jin. 7, 1971, the reserve percentage required cent to 8 per cent. This action reduced required reserves and to be maintained against certain foreign borrowings, primarily RPD's approximately $360 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement on foreign banking in the United SOURCES AND USES OF FUNDS BY States by George W. Mitchell, Vice Chairman, FOREIGN-OWNED BANKS Board of Governors of the Federal Reserve System, before the Subcommittee on Interna- Banks traditionally rely on deposits of their tional Finance of the Committee on Banking, regular customers for the bulk of their re- Housing and Urban Affairs, U.S. Senate, Jan- sources. A second source of funds, and one uary 23, 1974. that is growing in importance, is the domestic money market, which includes the market for INTRODUCTION interbank loans and deposits. A third source of Mr. Chairman, I appreciate your invitation to funds is the international money market (inappear before the subcommittee in its hearings cluding borrowing from affiliates abroad). on direct foreign investment in the United Euro-dollar borrowings and deposits are the States. Too often, direct foreign investment is pre-eminent instruments in this market. Particithought of as involving only industrial and pants in both the domestic and international commercial institutions. The subcommittee's money markets are sophisticated, and funds inrecognition that such investment also involves vested in these markets are highly interest senbanks and other financial institutions is cer- sitive and predominantly very short in maturity. tainly appropriate. Banks engaged in international banking that The amount of direct investment by foreign operate offices in a foreign country generally banks in U.S. banking facilities is small—less have difficulty in establishing a large stable dethan $1 billion. But in the case of banking, the posit base in the currency of the host country. size of that direct capital investment does not This is true both for U.S. banks operating measure the importance of the activity. Banks abroad and for foreign banks operating in the traditionally operate on a smaller capital base United States. Therefore, when operating outthan is typical in industry and commerce. The side their home country, banks are inclined to principal business of banks is to assemble funds rely in some considerable measure on funds from a variety of sources—deposits or borrow- supplied by their home offices. Frequently, ings in domestic or foreign money markets— however, they encounter difficulties in bringing and to relend those funds to others. It is the funds from outside the host country. Many effects of these banking transactions—the countries impose limits on such capital inflows money flows and the business transactions they through banks, both for balance of payments accommodate—that should be used to assess reasons and because capital inflows can have the implications of foreign investment in U.S. an unwanted effect on domestic credit flows. banking offices. Judged by these activities, and Accordingly, banks in foreign countries seek to by their total assets of close to $35 billion, the supplement their resources from their home U.S. banking offices of foreign banks are still countries by drawing on various parts of the not large compared to insured U.S. banks, money market in the host country. Usually the which have $762 billion in total assets and $59 most important source of money market funds billion in equity capital and reserves. But their for foreign banks is borrowing from the host activities are growing and becoming increas- country's domestic banks. Other money market ingly important in certain U.S. financial mar- sources of funds in the foreign country tend to kets. For example, commercial and industrial be very short term and in most countries quite loans at these institutions have now grown to limited in amount. 8 per cent of all such loans in the United States. The operations of foreign-owned banks in 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 the United States reflect these general charac- nationals has limited the use of this alternative. teristics of international banking. These banks Branches of foreign banks are presently authorhave to look to foreign sources for about 40 ized to conduct a full-scale lending and deposit per cent of their resources of about $35 billion. business in five States. Agencies of foreign Foreign funds, of about $14 billion, are drawn banks are authorized in New York and Califorprimarily from the home offices or other nia. Agencies and branches are similar in some affiliates of the parents. Funds obtained in the respects, but agencies do a wholesale banking United States consist mainly of deposits of non- business, whereas branches engage in wholebank customers, about $5 billion, and borrow- sale banking, retail banking, or both. ings from nonaffiliated U.S. banks, almost $7 Agencies account for more than half the billion. assets of all foreign banking offices. Because U.S. offices of foreign-owned banks lend and they cannot sell certificates of deposit, they rely otherwise invest about $5 billion more in the heavily on interbank (Federal funds) borrowing United States than they obtain here—that is, and borrowings from directly related instituthey are channeling that amount of foreign tions abroad (Euro-dollars). These sources acfunds into the U.S. economy. This figure count for a total of about three-fourths of their changes, of course, with shifts in relative funds. They typically employ their funds in money market conditions here and abroad. money market loans and commercial and indus- These foreign-owned offices use a large share trial loans, often related to international transof their resources to make commercial and in- actions. dustrial loans in the United States. Such loans Branches and subsidiary banks, on the other account for about 40 per cent of their assets—a hand, rely to a substantial degree on deposits: substantially higher proportion than is the case for branches, deposits account for about onefor domestically owned banks that are members half of total liabilities, whereas in the case of of the Federal Reserve. The foreign banks' subsidiary banks, the share is about threecommercial and industrial loans are in good fourths. Some of these deposits are obtained part related to international business and reflect from local business and from consumers, while the international orientation of these banks. others are obtained by offering large-denomi- One-fourth of these loans are to foreign cus- nation certificates of deposit to money market tomers. investors. Branches, like agencies, also obtain funds from directly related institutions abroad TYPES OF OPERATIONS OF FOREIGN as well as from the interbank market. Subsidi- BANKING OFFICES ary banks (particularly in California) and some The U.S. activities of foreign-owned banks branches endeavor to conduct a retail banking depend in some degree on how and where they business similar to that of most U.S. banks; are established in the United States. There are other branches concentrate primarily on wholealso differences reflecting historical or ethnic sale international banking. characteristics of the countries of domicile of There are 60 foreign banks with offices in the the parent banks. United States. Most of these institutions are Apart from the representative office, which very large banks; in the aggregate their worldis essentially nothing more than a sales or serv- wide deposits are over $450 billion. At recent ice office and does not perform any banking count, they had 115 offices in the United functions, there are three corporate alternatives States—68 in New York, 39 in California, and used by foreign banks conducting a banking 8 in four other States. Relative to worldwide business in this country: subsidiary corpora- deposits, Canadian and Japanese banks have tions, branches, and agencies. Subsidiaries may larger interests in U.S. offices than do banks be chartered under laws of some States; three based in Great Britain, Western Europe, or States in fact have issued such charters. They elsewhere. In total U.S. assets, Japanese banks can also be chartered under Federal law, but ranked first, followed by those in Western the requirement that the directors must be U.S. Europe, Canada, and Great Britain. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 99 The modes of operations of foreign-owned First Western, which has just been acquired by banking offices in this country tend to vary ac- Lloyd's Bank. cording to the country of the parent bank. Many European banks, in important but 1. Canada. Canadian banks operate both varying degrees, use their New York branches agencies and subsidiary banks in California and to channel payments that the parent banks genagencies in New York. erate through their worldwide financial opera- The Canadian agencies in New York draw tions. These foreign banks find it essential to the funds they use to operate in the United have offices in this country to handle efficiently States largely from the head offices and foreign transactions that have grown to enormous dolbranches of the Canadian-chartered banks al- lar totals. Many of the European branches serve though those funds may originally have been their head offices not only for payments busiacquired, in part, from the United States or ness in the United States but also for adminisother non-Canadian sources. tering their payments activities worldwide. In recent years, the Canadian agencies have Handling payments gives rise to other bankbeen using those funds increasingly in commer- ing business. The huge volume of foreign excial loans and in arbitrage between the Euro- change orders and the sharp swings in transacdollar market and the domestic market for in- tion balances that occur from day to day someterbank loans. Their commercial loans are times place substantial demands on these U.S. largely to U.S. corporations to meet domestic offices for funds and on other days produce needs. Some of that loan business has been re- large excess balances. To dispose of such lated to the growth of direct investment by excess funds the U.S. offices of European U.S. corporations in Canada. Although main- banks lend large amounts of money to U.S. taining a longstanding role as specialists in corporations and also furnish substantial funds lending to U.S. securities dealers and brokers, to their foreign head offices. these agencies have recently been reducing Most of the European banks that have offices their emphasis on this type of activity. in this country are engaged here principally in 2. Japan. Japanese banks, like the Canadian wholesale banking activities. However, some banks, operate agencies and subsidiary banks British banks have been expanding into the rein California and agencies in New York. tail banking market as well. The Japanese agencies have the same powers GROWTH OF FOREIGN BANKS' as Canadian agencies, but in their lending ACTIVITIES operations they have emphasized the financing of U.S.-Japanese trade, and in some cases also Growth of foreign banks' activities in the the financing of Latin American exports to United States since the mid-1960's has been Japan. one aspect of the broad internationalization of The agencies obtain funds from their parent banking that has occurred during this period. banks' head offices in Japan and raise funds in This is the counterpart in the banking area of the U.S. market by selling their own accept- the flourishing growth of multinational busiances and by borrowing from U.S. banks. ness. Some of the Japanese subsidiary banks in Measured from 1965, foreign banks' assets California have been successful in developing in the United States have grown about sixfold. a retail banking business. It should be noted, however, that this striking 3. Europe. European banks have placed rate of increase has been roughly matched by greater emphasis historically on branch opera- the sixfold expansion in the foreign assets of tions in New York City. Additionally, how- a group of seven large U.S. banks that were ever, they have established some agencies and already actively engaged in international banksubsidiaries in New York, including a few in- ing in the mid-1960's. And much the same reavestment companies chartered under New York sons that account for the expansion of U.S. State laws. European banks also have banking banks abroad also account for the growth of subsidiaries in California, the largest being foreign banks in this country. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 Foreign banks have followed their own mestic or foreign issues. Several of these foreign customers who have come to the United affiliates have become members of regional States to set up industrial and commercial stock exchanges in this country. operations. Once here, they have assisted other The Canadian banks do some financial busiindustrial concerns in investing in this country. ness in this country through trust subsidiaries, They have helped to finance the growing vol- in addition to their U.S. banking offices. These ume of trade and have provided information on trust units act mainly as custodian, paying economic activity and trade opportunities both agent, and transfer agent for Canadian entities in the United States and abroad. that have issued securities in the United States. Foreign banks have found that banking British banks have few nonbanking direct inoffices in the United States afforded valuable vestments here. One of them is continuing its access to the U.S. money market, and banking interests in real estate development projects, offices in New York have strengthened the abil- and its investment banking interest in some ity of foreign banks to handle the daily settle- small U.S. companies, which it held before ments that arise from their own or their custom- passage of the Bank Holding Company Act ers' transactions in dollars. Amendments of 1970. In sum, for any foreign bank, as for any Japanese banks have small investments in U.S. bank, an office in each major international some Japanese companies that do business in money market is viewed as a key ingredient in this country—notably the trading companies. In an effective worldwide banking operation. Japan banks traditionally have taken equity in- In addition to these broad financial consid- terests of less than 10 per cent in nonfinancial erations that have led to the expansion of inter- firms that are their important customers. national banking generally, the growth of Several foreign banks (Italian, French, and foreign banks in the United States has reflected Greek banks) operating in the United States are changes in legislation in several states. The de- owned directly or indirectly by their respective cision of New York State about a dozen years governments, which also own nonfinancial ago to permit foreign banks to establish companies that are doing business in the United branches was one of the principal legislative States. changes improving the opportunities for foreign CONCLUDING REMARKS expansion in the United States. A few other States have also liberalized laws regarding Mr. Chairman, my assignment today has been foreign banks. Notably, several months ago Il- to provide a factual presentation on the activilinois amended its laws to permit a foreign ties of foreign banks in the United States, and bank to establish a single branch within the I welcome the opportunity to assist in this way "Loop" area of Chicago. Several foreign in your inquiry. I should like to conclude my banks are in the process of opening such remarks with a general comment or two. branches in Illinois. In my view, the growing and substantial investment and operational activity of foreign NONBANKING ACTIVITIES banking interests in this country has stimulated To this point, I have spoken about banking ac- competition in banking and financial markets tivities of foreign-owned institutions in this here. In addition, the access to markets in the country. These institutions also conduct some United States that foreign banks have enjoyed other activities on the periphery of banking, but has facilitated the activities of U.S. banks in it should be noted that these are not very large. markets abroad. Certainly their nonbanking activities are insig- At the same time, it should be noted that nificant compared with domestic bank holding these institutional developments have abetted companies. the greater movement of funds internationally Several foreign banks have affiliates in the and in so doing have posed some problems in United States engaged in the securities busi- implementing monetary policy in the United ness—in some cases both as underwriters for States. In recent years the Board has taken sevnew issues and as brokers and dealers for do- eral actions to modify the effect of international Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 101 monetary flows on domestic monetary and and in net Euro-dollar borrowings above basecredit conditions. However, foreign-owned period levels. I am happy to say that foreign banking institutions, which are an important banks acceded to this request. channel for these flows, are not subject directly Recognizing the growing importance of to Federal Reserve legislation. Last June, there- foreign banking in the United States, the Board fore, when the Board as part of its anti-infla- established a Federal Reserve System Steering tionary program introduced a marginal reserve Committee a year ago to review the status of requirement for large certificates of deposit is- international banking regulations and to consued by member banks and asked nonmember sider the public policy issues. The committee, banks similarly to hold reserves, it requested of which I am chairman, has made good foreign-owned banking institutions to maintain progress and hopes soon to submit recomreserve deposits against increases in large CD's mendations to the Board. • Statement by Arthur F. Burns, Chairman, labor and capital were employed to the fullest. Board of Governors of the Federal Reserve The inflationary problem in 1970 and 1971 System, before the Subcommittee on Production stemmed mainly from the pressure of rising and Stabilization of the Committee on Banking, costs on prices. In general, wage rates were Housing and Urban Affairs, U.S. Senate, Feb- increasing much faster than gains in producruary 6, 1974. tivity. Business firms found it difficult to absorb the resulting rise in unit labor costs since their I am pleased to meet with this committee to profit margins were already seriously depressed. discuss the desirability of extending the Eco- Prices therefore rose, even though excess denomic Stabilization Act. mand for goods and services had long since been Your immediate concern is whether to extend eliminated. the existing authority under the Act, to modify To some extent the inflation we then experithat authority, or to abolish it altogether. The enced was the aftermath of previous excess major question at issue is whether we would demand. But as time passed, it became increasbe better served as a Nation by continuing to ingly clear that the laws of economics were not operate with mandatory wage and price controls working as they once had. In a modern econor whether the time has come to return to our omy—and in other countries as well as our historic tradition of reliance on free markets. own—wage rates have become fairly insensitive A considered judgment on this question re- to changes in the balance between labor demand quires careful analysis of our recent experience and supply, and increased costs of doing busiwith governmental intervention in wages and ness are frequently passed through to buyers prices. Let me begin, therefore, by assessing even in slack markets. the benefits and costs of the control program The new economic policy inaugurated in Auover the past 2xh years. gust 1971 sought to break a chain of wage-price The control program was instituted at a time increases that bore little relation to existing when economic conditions were very different economic conditions. It also included measures from what they are today. During the summer to stimulate productivity gains, to increase of 1971 we had a sluggish economy, unem- business capital investment, to halt the deterioployment averaged 6 per cent of the labor force, ration in our balance of payments, and to enand a significant part of our industrial plant was courage other nations to work with us in deidle. Nevertheless, unlike earlier periods of signing a more flexible system of foreign execonomic slack, the general price level contin- change rates. ued to advance briskly. In fact the average rate The early response to the new policy was of price increase was about as high in the first heartening. Consumers and businesses began to half of 1971 as it had been in 1969, when both spend more freely, and the pace of economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 expansion quickened. Meanwhile, govern- policies should have been somewhat less exmental efforts to hold down wage and price pansive during 1972, but it is my considered increases met with some success. Broad meas- judgment that possible excesses of this sort were ures of price performance registered significant swamped by powerful special factors that added improvement in the early stages of the control a new dimension to our inflationary problem last program, and there was little evidence that the year. controls were distorting business decisions or Early in 1973 the move to Phase III made giving rise to serious inequities. it easier to pass on rising costs to product prices In the closing months of 1971 and most of and, here and there, to widen profit margins that 1972 the control program worked reasonably had previously been suppressed. Also, since the well because the volume of unemployed labor inauguration of Phase III was widely interpreted and capital—while diminishing—was still on as a virtual abandonment of controls, inflationthe high side. Increases of wage rates during ary expectations tended to worsen. Looking 1972 were somewhat smaller than in 1971. And back, however, it seems fair to conclude that although consumer outlays strengthened materi- the forces of inflation became so powerful durally in 1972, the consumer price index rose only ing 1973 that they could not be dealt with very 3V4 per cent, or a full percentage point below effectively by direct controls. the preceding year. A major source of the inflationary problem Over the course of 1972, however, the eco- last year was the coincidence of booming economic climate began to change in ways that nomic activity in the United States and in other threatened to undercut the control program. The countries. Production rose rapidly throughout growth of over-all production spurted to a rate the industrial world, and inflation accelerated well above its long-run potential, and demands everywhere. Among major industrial countries, for labor, materials, and equipment strength- increases in consumer prices in 1973 ranged ened steadily. Business firms began to experi- from about 7 to 17 per cent. The United States ence some difficulty in adjusting production was toward the low end of this range. schedules to the rapid growth in consumer de- Another complicating factor was the demand, and delivery delays became more fre- valuation of the dollar. The value of the dollar quent—even though capacity constraints were declined sharply in foreign exchange markets not yet limiting aggregate output. Toward the during the first half of last year, thereby magniend of the year the pace of economic expansion fying the impact of worldwide inflation on our also accelerated in Western Europe and Japan, price level. The higher prices of foreign currenand prices of industrial raw materials began to cies raised, of course, the dollar prices of imrise faster both here and abroad. As these ten- ported products, and these effects spread out sions accumulated during 1972, it became evi- over the economy. Rising import prices led to dent that the controls were causing some distor- some substitution of domestic for foreign prodtion in the allocation of resources, that inequities ucts and thus intensified upward pressures on were becoming more numerous, and that pres- the price level. And as the dollar became sures for modification of the program were cheaper for foreign buyers, our export trade mounting. expanded, thereby reinforcing the pressures of Let me now turn to 1973, when fresh infla- domestic demand on existing resources. tionary forces, reinforcing those already plagu- Last year exports were also stimulated by the ing the economy, culminated in the sharpest worldwide expansion of industrial output. Our upsurge of the price level since the Korean war. country has long been a major supplier of in- In view of the strong cyclical expansion in dustrial materials, component parts, and capital production and employment that had occurred equipment. Larger foreign orders for these items in late 1972 and early 1973, it would have been added powerfully to growing domestic requiredifficult to avoid additional upward pressure on ments. For example, foreign orders for durable prices under the best of circumstances. In retro- goods (excluding motor vehicles and parts) shot spect it might be argued that monetary and fiscal up 25 per cent in the year ending in the fourth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 103 quarter of 1973, while domestic orders during markets. In some instances price controls have the same period rose by 17 per cent. led to curtailment of less profitable lines of The resulting demand pressures became par- production. For example, roof bolts needed to ticularly intense in the major materials-produc- increase output in the mining industry became ing industries. Last year the rate of capacity virtually unavailable for a time. In other inutilization in these industries—which include stances, critically needed materials have been petroleum refining, aluminum, steel, cement, exported because domestic prices were kept by synthetic fibers, paper, paperboard, and the governmental fiat below the price level ruling like—reached the extraordinary level of 96 per in international markets. This was a problem cent in the third quarter, or about as high as in the market for copper scrap, for example, this index could go. In many of these industries, before price controls on this material were lifted expansion of productive capacity had been neg- in August of last year. lected in recent years, in large part because of Moreover, in individual markets subject to the low rates of profitability from 1966 to 1971 excess demand, the controls have apparently and the restrictions imposed by a variety of encouraged devices for evading price ceilings. environmental controls. Since our industrial There have been various reports of "tie-in" plant last year was incapable of accommodating sales, of old products being sold as new lines, the upsurge in demand, acute shortages devel- and—since imported goods are free from price oped for a wide range of basic materials. controls—of domestic goods being exported and To make matters worse, disappointing har- then reimported and sold at higher prices. vests in 1972—both here and abroad—caused Thus, the controls accentuated during the past a sharp run-up in prices of food products during year the vexing problem of scarcities that dethe first 8 or 9 months of 1973, and the disrup- veloped in many lines of production and distritive manipulation since last fall of petroleum bution. The Cost of Living Council was well shipments and prices by some oil-exporting aware of this problem and therefore moved countries has caused a spectacular advance in towards a gradual relaxation or removal of the the prices of gasoline and heating oil. Shortages controls. But the damage done by the controls of these two categories of products, in fact, in slowing production was significant, and it is account for a major share of our recent infla- very doubtful if the control program helped to tionary problem. About 60 per cent of the rise moderate the average rate of inflation during in the consumer price index in 1973 stemmed 1973. from increased prices of food and fuel; these The Committee on Interest and Dividends same commodities, together with farm products, (CID) which I have been chairing, also encounaccounted for about 70 per cent of the rise in tered difficulties in discharging its responwholesale prices last year. sibilities. Early in 1973 the CID encouraged In short the character of the inflation in 1973 commercial banks to hold down their prime rate was very different from the inflation that had of interest—that is, the rate charged their large troubled us in earlier years. A worldwide boom and most creditworthy business customers. Inwas in process; the dollar was again devalued; creasing costs of short-term borrowing in the and agricultural products, basic industrial mate- money market, however, soon made the prime rials, and oil were all in short supply, and price rate a bargain rate of interest. Since outstanding increases of these products were enormous. loan commitments by banks were large, and the When an economy is beset by inflationary total financing requirements of business were forces of such exceptional character, govern- growing, commercial banks found themselves mental intervention in pricing decisions or wage deluged with demands for loan accommodation. bargaining can hardly be .expected to be very Action was clearly needed to avert a drying up effective. Actually, governmental efforts to of bank funds for small businesses, consumers, maintain a meaningful control program in the and home buyers. economic environment of 1973 aggravated the Adoption by the CID of criteria for a two-tier growing scarcity of a host of goods in our prime rate structure alleviated the problem. A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 flexible prime rate, one closely tied to the highly Fortunately, the magnitude of the shortfall in competitive open market interest rates, was our oil imports now seems likely to be smaller permitted for large business borrowers who had than it had originally appeared. However, the access to the national money and capital mar- sharply higher price of imported oil will impose kets. At the same time, a more stable rate, tied a burden that we cannot immediately escape. closely to actual costs, was to be maintained Prices of gasoline and heating fuels have already by the banks for borrowers with few financing risen substantially, and—even if price controls alternatives—notably, small businesses, con- are continued—may need to rise further in order sumers, and farmers. to bring demand and supply into better balance. This experience and others we have had with It is, of course, of the utmost importance that direct controls over the past IVi years have made we permit markets to function in ways that will it abundantly clear that there is no good substi- result in economies in the use of energy by tute for free markets in allocating resources and business firms and consumers, and at the same in maintaining productive efficiency. The expe- time encourage a burst of new investment in rience of other countries has been similar to facilities for exploring and producing crude oil ours. Direct controls over wages and prices can and other sources of energy. be a constructive influence for a short time, Food prices are also likely to rise this year. particularly when there is significant slack in the Stocks of major grains are low, and prospects economy. Such was the case in late 1971 and for world crop production in 1974 have been through much of 1972. But controls cannot dimmed by shortages of fertilizer. Furthermore, restrain the upward movement of prices very meat supplies may be disappointingly small in long when aggregate demand is rising briskly the first half of the year. Although the outlook and acute shortages develop in major sectors of for food prices is by no means so gloomy as the economy. Under such conditions a rigorous it was a year ago, there is no assurance that control program gives rise to evasions and in- food prices will level out or decline very soon. equities, to inefficiencies, and to more acute and A more fundamental factor affecting the widespread scarcities. And in some markets, course of inflation in 1974, however, may well such as those for raw materials, agricultural be the course of wage rates and unit labor costs. products, or internationally traded commodities, Increases in wage rates have been edging up direct controls over prices are—practically since last spring; wages rose on the average at speaking—unworkable. an annual rate of about IVi per cent during the Let me turn now to the outlook for prices last half of 1973. Even so, real weekly earnings in 1974 and the role that controls might play of production workers have declined over the in dealing with inflationary pressures in the past year because prices have risen so sharply. months ahead. This year the collective bargaining calendar The most pressing economic problem facing is heavy and includes several pattern-setting the Nation at the present time is a shortage of industries. Efforts of workers to obtain large petroleum products that is adversely affecting wage increases in order to prevent a further business activity and aggravating our price erosion of real income would be entirely underproblem. Hardships for some of our people and standable. If economic activity proceeds sluginconveniences for many have become un- gishly in 1974, as now seems likely, producavoidable. tivity gains will probably be even smaller than Some downward adjustment of production they were last year. Substantial wage increases and employment is already under way. Sizable would therefore put great upward pressure on cutbacks in production and layoffs of workers costs of production and ultimately on prices. have recently taken place, or have been an- The several adverse influences on the price nounced, in the automobile industry, the air- level in 1974 are likely to be offset, in part, lines, homebuilding, and other industries. For by other developments. A slower pace of ecomany countries, the adjustments will be more nomic activity here and abroad may well cause severe than for us. a decline in the prices of internationally traded Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 105 commodities, besides reducing shortages of in- will therefore be needed in framing monetary dustrial materials and component parts. Appre- policy. An easier monetary policy can be only ciation of the dollar in international exchange a marginally constructive influence in an enmarkets over recent months will have a benefi- ergy-induced slowdown. Rapid growth of cial effect on the domestic price level. Imported money and credit is hardly an effective remedy goods will tend to be less expensive, and the for a shortage of oil. demand for our exports will be moderated, Fiscal policy can be used to better advantage thereby increasing the supply of goods available in this kind of economic slowdown. Selective for the domestic market. Late in the year pres- fiscal actions—such as an expanded program of sures on food prices may also ease somewhat, public service employment, or increased unemas policies already adopted to increase agricul- ployment benefits for those who lose their jobs tural production begin to bear frujt. because of the energy problem, or other special Realistically, however, we can hardly expect assistance in areas particularly hard hit—can be a return to reasonable price stability in the near used more effectively to deal with local or future. Substantial increases in the prices of regional problems. And we should be able to numerous commodities and services are vir- accomplish those objectives, I believe, without tually inevitable this year. Relative prices of sacrificing the longer-run fiscal discipline so many items are now badly out of balance. Prices vital to restoration of general price stability. of materials, for example, have recently risen In the current economic environment direct very swiftly, and these cost increases are still controls cannot be of much benefit in curbing to be passed through to the prices of end-prod- inflation. In fact, comprehensive and relatively ucts. Efforts to prevent such price adjustments inflexible controls over wages and prices would would only prolong the distortions in production probably do more harm than good because they from which we are now suffering. And any would prolong the distortions in production and determined attempt to force other prices down, distribution that have become a major problem with a view to achieving average price stability during the past year. I believe, therefore, that in the near future, would lead to intolerably high it would be unwise to extend the authority under unemployment. the Economic Stabilization Act for another year. The objective of public policy in these A more selective approach is needed. difficult circumstances must be to establish a For the remainder of 1974 continuation of dependable framework for a gradual return to mandatory controls over petroleum products price stability over the next few years. In this appears unavoidable. The present shortages, endeavor we will need to rely principally on particularly of gasoline, would result in sound management of aggregate demand skyrocketing prices if mandatory controls were through general monetary and fiscal policies. not retained for a time. The control authority In the current economic slowdown the task needed in this area is provided by the recently of monetary policy will not be the same as in enacted Emergency Petroleum Allocation Act, a classical business recession, when a consid- which does not expire until early 1975. erable easing in the supply of money and credit Continuation of mandatory controls for health can be expected to provide the financial basis services may also be appropriate. This sector for the subsequent recovery. This year our Na- of the economy has demonstrated a high tion's capacity to produce may actually decline, propensity toward inflation in recent years, in or at best rise at an abnormally low rate; de- large part because the character of the industry clines in production and employment will tend makes it difficult for competitive forces to work to be concentrated in specific industries and effectively. A special program by the Departregions of the country, rather than spread ment of Health, Education, and Welfare to broadly over the economy; and the price level moderate the rise in the cost of drugs, hospital is likely to be rising at a disconcerting rate. Such care, and other medical services would help to developments are outside the pattern of a typical keep spending on health care within the reach business recession, and a great deal of caution of our citizens, and it would also ho Id down Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 the growth of Federal expenditures for national capacity constraints are limiting the expansion health programs. of our national economy. Events of this past In the construction industry the mandatory year have focused attention on the urgent need authority available to the Construction Industry to increase supplies of energy, and also to Stabilization Committee has thus far remained expand the productive capacity of our basic virtually unused. That committee, relying on materials industries. Accelerated amortization voluntary agreements between labor and man- of capital facilities for such industries, using agement, has succeeded in reducing very sub- techniques developed during the Korean war, stantially the rate of increase in construction could help solve this problem by making adewages since the spring of 1971. A continuation quate tax allowance for the high cost of polluof mandatory control powers for the con- tion-control equipment and for risks attending struction industry is perhaps unnecessary, but stepped-up investment in these vital industries. I would hesitate to disturb arrangements that Efforts to enlarge our supply potential, howhave been so successful. ever, should go beyond the provision of invest- Except for these specific cases, I believe that ment incentives in the basic materials industries. the time has come to scrap the present structure For example, vestiges of our former restrictive of mandatory controls. The great mass of wages agricultural policies could be removed, and the and prices should again be left to private deci- minimum wage law could be modified to insions in free markets. In some markets, how- crease job opportunities for teenagers. Furtherever, a degree of governmental vigilance may more, a wide range of restrictive practices in well be required to prevent abuses of economic the private sector—from featherbedding to outpower. dated building codes—cry out for reform. Mandatory controls are not the answer. On Efforts to remove impediments to supply and the other hand, a limited element of intervention to improve productivity are more likely to be in pace-setting industries may result in appre- successful if we establish machinery to focus ciable improvements of wage and price per- on this problem over the long run. I would formance. Authority would be needed to delay suggest, therefore, that the Council of Economic wage and price changes so that mediation or Advisers be given the responsibility of developpublic hearings could be held and recom- ing specific programs, of making semiannual mendations handed down. These recom- reports on the progress being achieved, and of mendations could then be monitored and reports recommending policies needed to further the issued on compliance so that the force of public broad objective of expanding our capacity to opinion could be brought to bear on wage or produce. price changes that are deemed detrimental to the In summary, my suggestions to this commitnational interest. Functions of this kind could tee are as follows: First, that our Nation again best be handled by ad hoc boards for specific permit wages and prices to be set preponderantly cases, to be established by the Cost of Living in free markets, and that we depend principally Council or some successor agency. upon monetary and fiscal policies to establish Installation of the necessary review machin- an economic environment conducive to a return ery may take some time, however. Partly for of general price stability; second, that mandathis reason, partly also because significant ele- tory control programs be confined to petroleum ments of the economy may still be under control products, health services, and the construction by April 30, extension of the Economic Stabili- industry; third, that the present Economic Stazation Act for 2 or 3 months might be desirable bilization Act be extended, if at all, for only to allow time for an orderly transition to sub- 2 or 3 months beyond April 30th; fourth, that stantially free markets. the Cost of Living Council or a successor I believe that a determined national effort to agency assume responsibility for establishing ad curb inflation also requires greater stress on hoc boards that would seek through public programs for reducing obstacles to supply, and hearings, or in other ways short of compulsion, for encouraging investment in industries where to prevent abuses of economic power over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 107 wages and prices in pace-setting industries; for almost a decade. Our citizens are well aware fifth, that our Nation embark on a long-range of its seriousness, and they are realistic enough effort to reduce obstacles to the expansion of to realize that there is no easy way to regain supply, and that the Council of Economic Ad- price stability. But I am deeply concerned that visers be required to recommend programs the patience of our people is wearing thin. needed to further this objective, and to make Failure to make significant headway this year semiannual reports on progress achieved. in reducing the rate of increase in prices may I believe that implementation of these sug- destroy the confidence of businessmen and congestions will contribute to a slowing in the rate sumers in the capacity of our Government to of inflation over the course of 1974. In any deal with an inflationary problem that is retardevent, I hope that the Congress will look at all ing economic progress and sapping the energies sides of the inflation problem and consider of our people. Improvement in the price perthoroughly these and other suggestions that may formance of our economy during 1974 is essencome to its attention. tial to our country's future and is well within This Nation has been struggling with inflation our means. • 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 NOVEMBER 19-20, 19731 Domestic policy directive The information reviewed at this meeting suggested that growth in real output of goods and services—which had risen to an annual rate of about 3.5 per cent in the third quarter from about 2.5 per cent in the second quarter—would remain moderate in the current quarter. Staff projections continued to suggest that, in the absence of an oil crisis, growth of real output would slacken in the first half of 1974 and that the rise in prices would remain rapid. It was also suggested that continuation of the embargo on the flow of Arab oil to the United States—announced in the latter part of October—could have significantly adverse effects on the U.S. economy. In October industrial production continued to grow at a substantial pace, reflecting advances in output of business equipment and consumer goods; output of materials, which was pressing against the limits of capacity in some industries, changed little. Employment expanded in manufacturing, after a 3-month period of little change, and total nonfarm payroll employment increased appreciably. The unemployment rate dropped from 4.8 to 4.5 per cent, the lowest rate in V/2 years. And advance reports indicated that retail sales rose substantially during the month, although sales of new automobiles declined significantly. The index of average hourly earnings of production workers on nonfarm payrolls continued to advance at a relatively fast pace in October. During the third quarter compensation per manhour in the private nonfarm sector of the economy increased substantially more than output per manhour, and unit labor costs rose sharply further. xThis meeting was held over a 2-day period beginning on the afternoon of Nov. 19, 1973, in order to provide more time for the staff presentation concerning the economic situation and outlook and the Committee's discussion thereof. 108 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The uptrend in wholesale prices of industrial commodities accelerated in October, reflecting a large rise in prices of petroleum products and other fuels and widespread increases among other commodities. Wholesale prices of farm and food products fell substantially for the second consecutive month, as a result of marked decreases for livestock, meats, poultry, and soybeans; however, the index remained well above the pre-freeze level of early June. In September the rate of advance of the consumer price index slowed as retail prices of foods declined slightly after having risen sharply in August. Staff projections for the first half of 1974 suggested that business fixed investment would rise considerably further, that State and local government purchases of goods and services would continue to grow at a substantial rate, and that consumption expenditures would expand at about the moderate pace of the second half of 1973. However, it was also anticipated that the decline in residential construction outlays would persist and that business inventory investment would level off. U.S. merchandise exports rose sharply further in September— reflecting for the most part considerable increases in exports of capital equipment and industrial materials—while imports declined. As a result, the trade balance moved into substantial surplus. For the third quarter as a whole, the trade surplus was sizable for the first time in 3 years. The over-all balance of payments on an official settlements basis also was in substantial surplus in the third quarter, and it remained so in October. Following the announcement in late October of the large U.S. trade surplus, demand for dollars rose considerably, and exchange rates for the dollar appreciated against major foreign currencies. The dollar registered a further sizable appreciation after the development of the oil crisis, which was interpreted in the markets as creating particularly severe problems for the economies of Western Europe and Japan. Outstanding business loans of U.S. commercial banks, which had increased little in September, were unchanged in October. Business borrowers continued to shift to the commercial paper market as market interest rates declined further relative to effective rates on bank loans—even though most banks lowered the prime rate applicable to large corporations from 10 to 93A per cent during 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 the month and a few reduced the rate to 9V2 per cent. Expansion in most other types of loans slowed in October, and banks continued to liquidate substantial amounts of their holdings of Government securities. Bank holdings of other securities—primarily Federal agency issues—rose appreciably, but the increase in total bank credit remained moderate. The narrowly defined money stock (M )2 rose moderately in x October, following 2 months of declines. Preliminary calculations based on new benchmark data indicated that the level of the money stock in recent months would be adjusted upward and that monetary growth over the year ending in October had been somewhat faster than the rate of 5.1 per cent suggested by the currently published data.3 Inflows of time and savings deposits other than large-denomination CD's picked up sharply, and the more broadly defined money stock (M )4 grew at a rapid pace. The outstanding volume 2 of large-denomination CD's declined substantially further as banks continued to reduce the rates paid on such CD's, in response to the further weakening in business loan demand at banks, to the large inflows of consumer-type time deposits, and to the effect on the cost of such funds of the recent increase in marginal reserve requirements against large-denomination CD's. As a result, the bank credit proxy5 increased relatively little. Net deposit inflows at nonbank thrift institutions improved somewhat further in October, and the measure of the money stock that includes such deposits (M )6 rose appreciably after having 3 grown at a slow pace over the third quarter. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages declined. On October 24 the Treasury announced that on October 30 and 2Private demand deposits plus currency in circulation. 3 The measure of the money stock has been revised annually to incorporate new seasonal adjustment factors and, among other things, benchmark adjustments for deposits at nonmember banks on the basis of data reported for 2 days a year, the last day of June and the last day of December; for member banks, deposits are averages of daily figures. The growth rate cited is calculated on the basis of the daily-average level in October 1973 relative to that in October 1972. 4M plus commercial bank time and savings deposits other than large-denomi- X nation CD's. 5 Daily-average member bank deposits adjusted to include funds from nondeposit sources. 6M plus time and savings deposits at mutual savings banks and at savings 2 and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 111 31 it would auction up to $1.5 billion of 25^-month notes, up to $2.0 billion of 6-year notes, and up to $300 million of 1934-year, IV2 per cent bonds to refund $3.6 billion of publicly held bonds maturing on November 15; on October 29 the Treasury set coupon rates of 7 per cent for both of the note issues. In the auctions the Treasury sold $1.5 billion of the 25 V2-month note at an average price to yield 6.91 per cent, $2 billion of the 6-year note at an average price to yield 6.82 per cent, and $300 million of the bond at a price to yield 7.35 per cent to maturity. In addition, the Treasury raised $1.2 billion of new cash by auctioning bills on November 9 and 12; the funds were raised to meet cash needs generated by redemptions of special Treasury securities by some foreign monetary authorities, which in turn resulted from the surplus in the U.S. balance of payments, and also to increase Treasury cash balances because the authority to borrow directly from Federal Reserve Banks had expired on October 31. Short-term market interest rates in general declined further in the first week after the Committee's meeting on October 16, in large part because of continued market expectations that the weakness of recent months 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. Later, however, when the aggregates strengthened and money market conditions remained relatively stable, market expectations changed and interest rates turned up. After the Treasury's early November announcement of the sale of bills to raise new cash, short-term rates—especially those on Treasury bills—rose further to or above their levels of mid-October. Just before this meeting the market rate on 3-month Treasury bills was 7.50 per cent, up from a recent low of 7.02 per cent on October 24 and 7.19 per cent on the day before the October meeting. In long-term markets interest rates advanced somewhat in the inter-meeting period in association with the rise in short-term rates and with the expansion of demands for funds in the capital markets. The volume of new public offerings of corporate bonds rose sharply in October, and a further increase was in prospect for November. The volume of new State and local government bonds also expanded substantially in October, but the volume appeared likely to fall off in November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 Soon after the October meeting, available data suggested that in the October-November period the monetary aggregates would grow at rates within acceptable ranges but that reserves available to support private nonbank deposits (RPD's) would grow at a rate below the range that the Committee had specified because an anticipated upturn in the outstanding volume of large-denomination CD's had not developed. Data becoming available later, however, suggested that the monetary aggregates would grow at rates in excess of acceptable ranges. System action to limit such monetary expansion was tempered by the Treasury refunding that was in process and by the unsettled conditions that developed in the Government securities market for a time after the early November announcement of Treasury sales of bills to raise new cash. The Federal funds rate, which had been about 10 per cent at the time of the October meeting, was at or above 10 per cent in the days preceding this meeting. In the 5 weeks ending November 14, member bank borrowings averaged about $1,446 million, down from an average of $1,690 million in the preceding 4 weeks. 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 suggested that in the near term the demand for money would expand in response to the sizable increase in nominal GNP estimated for the fourth quarter and to the uncertainties generated by the oil shortage. The analysis also suggested that growth of consumer-type time and savings deposits at banks would moderate from the high rates of recent months. While the outstanding volume of large-denomination CD's was expected to expand toward the end of the year in response to a renewal of growth in business loans at banks, it was anticipated that required reserves against such CD's would drop further in the November-December period. Consequently, negative growth in RPD's in that period—at an annual rate within a range of —1 to — 3 per cent—was thought likely to be consistent with moderate growth in both the narrowly and the more broadly defined money stock over the months ahead. It was expected that such a change in RPD's would be associated with little change in money market conditions. The Committee decided that operations should be directed at fostering growth in RPD's during the November-December period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 113 at an annual rate within a range of —1 to —3 per cent, while avoiding unduly sharp changes in money market conditions. The members also agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments, of the forthcoming Treasury financing, and of deviations in monetary growth from an acceptable range. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that growth in economic activity in the fourth quarter is likely to remain at about the moderate rate of the third quarter, but curtailment of oil supplies from abroad has generated considerable uncertainty about subsequent prospects. In October total nonfarm employment expanded substantially further, and the unemployment rate dropped from 4.8 to 4.5 per cent. The advance in wage rates has remained relatively rapid, and unit labor costs have been increasing at a fast pace. Wholesale prices of industrial commodities rose sharply in October, reflecting in part large increases for petroleum products; although farm and food prices declined considerably further, they remained well above the pre-freeze level of early June. In foreign exchange markets, the dollar appreciated against major foreign currencies following announcement in late October of a large surplus in the U.S. merchandise trade balance, and the dollar strengthened markedly further in early November as expectations grew that the developing oil crisis would create particularly severe problems for Western Europe and Japan. In the third quarter and in October, the balance of payments on an official settlements basis was in substantial surplus. The narrowly defined money stock, which had declined in August and September, rose moderately in October. The more broadly defined money stock expanded sharply as a result of large net inflows at banks of consumer-type time deposits. Net deposit inflows at nonbank thrift institutions improved somewhat further. Bank credit expansion remained moderate in October, reflecting in part a lack of growth in business loans as borrowers shifted to the commercial paper market. The outstanding volume of large-denomination CD's, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 which had begun to decline in late September, fell substantially further. Short-term market interest rates, while fluctuating widely, rose on balance from mid-October to mid-November. Rates on most types of long-term market securities also advanced somewhat. 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 equilibrium in the country's balance of payments. To implement this policy, while taking account of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Holland, Mayo, Mitchell, and Sheehan. Vote against this action: Mr. Morris. Mr. Morris dissented from this action because he felt that in view of the marked deterioration in the economic outlook that had occurred over the past few weeks, stemming from the energy crisis, a modest move in the direction of a more stimulative monetary policy was appropriate. Subsequent to the meeting it appeared that in the November-December period growth in the monetary aggregates might exceed acceptable ranges. In view of that behavior, the System, under ordinary circumstances, would have become somewhat more restrictive in its reserve-supplying operations, expecting that money market conditions would tighten somewhat. On November 30, however, the available members concurred in a recommendation by the Chairman that, in light of current uncertainties regarding the economic outlook and the sensitive state of financial market psychology, the System aim to maintain current money market conditions for the time being. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 115 MEETING HELD ON DECEMBER 17-18, 19731 1. Domestic policy directive The information reviewed at this meeting suggested that growth in real output of goods and services, which had been at an annual rate of about 3.5 per cent in the third quarter, was slowing appreciably in the current quarter. Staff projections suggested that economic activity would weaken further in the first half of 1974 and that prices would rise appreciably, in part because of curtailment in oil supplies. In November industrial production expanded slightly. Increases in output in September and October were considerably less than had been reported previously, however, and growth over the 3-month period was well below the pace of advance earlier in the year. The value of new residential construction activity declined further in November. Total nonfarm payroll employment continued to rise, reflecting gains in manufacturing as well as in trade, services, and State and local government. However, the unemployment rate—which had declined to 4.5 per cent in October— moved back up to 4.7 per cent, about the rate that had prevailed since June. Retail sales were unchanged in November, according to the advance report; sales of new automobiles remained at the reduced level of October. Wholesale prices of industrial commodities continued to rise sharply in November, reflecting extraordinarily large increases in prices of gasoline and other petroleum products and also sizable advances among metals, machinery, textiles, chemicals, and paper products. Wholesale prices of farm and food products declined for the third consecutive month, largely as a result of decreases in prices of cattle, poultry, grains, fats and oils, and cotton. In October the rate of increase in the consumer price index accelerated after having slowed in September, as costs of fuels, health services, and homeownership rose appreciably. Staff projections of growth in real GNP in the first half of 1974 suggested that the shortfall in supplies of petroleum products then ^his meeting was held over a 2-day period beginning on the afternoon of Dec. 17, 1973, in order to enable the Committee to consider certain procedural matters without infringing on the time available for its deliberations on current monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 envisioned would have its greatest impact on expenditures for automobiles and various other travel-related goods and services; as a result, the slower rate of growth in consumption expenditures that had been developing in the current quarter was likely to persist in the first half of 1974. It was also anticipated that the decline in residential construction would be larger than had appeared likely 4 weeks earlier—because of the adverse effects of the oil shortage on building in the more remote suburban areas and on construction of vacation homes—and that the expansion in business fixed investment would be somewhat less vigorous. State and local government purchases of goods and services were still expected to grow at a substantial rate. In most other industrial countries, the prospect of a sustained cut in oil supplies threatened even greater economic disruptions than in the United States. From mid-November to mid-December, major foreign currencies depreciated significantly further against the dollar, and a number of foreign monetary authorities continued to intervene in the exchange markets, selling dollars to prevent their currencies from depreciating even more. The U.S. merchandise trade balance, which had been improving since early 1973, was in large surplus in both September and October. Outstanding business loans at U.S. commercial banks increased in November—following 2 months of little or no change—in association with a rise in interest rates in the commercial paper market relative to effective rates on bank loans. However, total bank credit expansion remained moderate, as growth in most other types of loans slowed further and banks liquidated significant amounts of their holdings of Government and other securities. The narrowly defined money stock (M ),2 after changing little x over the third quarter, grew moderately in October and rapidly in November. It appeared that the November rate of growth had been affected by such temporary influences as expansion in precautionary balances held by the public in response to the new economic uncertainties and increases in deposits of foreign commercial and central banks. Inflows of time and savings deposits other than large-denomination CD's—while down from the October level— were still large, and growth in the more broadly defined money 2Private demand deposits plus currency in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 117 stock (M )3 remained substantial. The outstanding volume of 2 large-denomination CD's declined further in November, on the average, although the volume turned up around the middle of the month as banks raised the rates paid on such CD's in response to the expansion in business loan demand at banks. Treasury deposits also declined, and the bank credit proxy4 changed little for the second consecutive month. On December 7 the Federal Reserve announced a reduction from 11 to 8 per cent in marginal reserve requirements on large-denomination CD's, effective in the statement week beginning on December 27, against deposits held 2 weeks earlier. Net deposit inflows at nonbank thrift institutions improved somewhat further in November, and expansion in the measure of the money stock that includes such deposits (M ),5 like growth 3 in M , remained substantial. Contract interest rates on conventional 2 mortgages and yields in the secondary market for Federally insured mortgages declined for the second consecutive month. Since the Committee's meeting on November 19-20 most short and long-term market interest rates had fluctuated in response to changing expectations with regard to monetary policy and to the impact of the fuel shortage on economic activity. Short-term rates in general had fallen following the December 7 announcement of the reduction in marginal reserve requirements against large-denomination CD's, and on balance, most had declined somewhat over the inter-meeting period. Just before this meeting, the market rate on 3-month Treasury bills was 7.47 per cent, compared with an interim high of 7.82 per cent on November 23 and with 7.50 per cent just before the November meeting. In long-term markets, some rates had increased slightly since the November meeting while others had declined, and on balance, rates had changed little. The volume of new public offerings of corporate bonds—which had risen sharply in October—increased somewhat further in November, and a less-than-seasonal decline 3Mj 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. 5M plus time and savings deposits at mutual savings banks and at savings 2 and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 was in prospect for December. The volume of new State and local government bonds remained high in November, and a seasonal decline appeared likely in the current month. System open market operations since the meeting in mid- November 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. Soon after the November meeting, available data suggested that growth in M and M in the November-December period might x 2 exceed acceptable ranges. Although it appeared that growth in reserves available to support private nonbank deposits (RPD's) would fall below the range of — 1 to —3 per cent that the Committee had specified, for the most part the shortfall was attributable to a larger-than-expected drop in required reserves against large-denomination CD's. In view of the behavior of the monetary aggregates, the System, under ordinary circumstances, would have become more restrictive in its reserve-supplying operations, expecting as a result that money market conditions would tighten somewhat. On November 30, however, the available members of the Committee concurred in a recommendation by the Chairman that, in light of current uncertainties regarding the economic outlook and the sensitive state of financial market psychology, current money market conditions be maintained for the time being. In the two statement weeks preceding this meeting, the Federal funds rate averaged about lOVs per cent, little changed from the rate prevailing in the days preceding the November meeting. In the 4 weeks ending December 12, member bank borrowings averaged about $1,410 million, close to the average of about $1,446 million in the preceding 5 weeks. A staff analysis suggested that, if prevailing money market conditions were maintained, the rate of growth of the narrowly defined money stock would be dampened over the months ahead because of the effects on transactions demands for money of the anticipated weakening in economic activity. Some easing of money market and reserve conditions, and the further declines in short-term market rates of interest likely to accompany such easing, would help to sustain moderate growth in M and also—by encouraging x expansion in consumer-type time and savings deposits at banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 119 and nonbank thrift institutions—in M and M. The analysis also 2 3 suggested that the outstanding volume of large-denomination CD's would grow moderately, reflecting continuation of fairly strong business demands for short-term credit and also the lower net cost of such deposits to banks resulting from the recent reduction in marginal reserve requirements against large-denomination CD's. The Committee concluded that the economic situation and outlook called for a modest easing of monetary policy. The members decided that for the period until the next meeting somewhat more emphasis should be placed on money market conditions than had been the case in recent months; specifically, they decided that operations should be directed toward achieving some easing in bank reserve and money market conditions, provided that the monetary aggregates did not appear to be growing excessively. Taking into account the staff analysis, the members expected that pursuit of that objective would be consistent with growth in RPD's in the December-January period at an annual rate within a range of 8V4 to 11 per cent. They agreed that, in the conduct of operations, account should be taken of international and domestic financial market developments, and as at other recent meetings, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting—including recent developments in industrial production, residential construction, and retail sales—suggests that growth in economic activity is slowing in the fourth quarter. A further weakening in activity and an appreciable rise in prices are in prospect because of the curtailment in oil supplies. In November nonfarm payroll employment expanded further, but the unemployment rate, which had dropped in October, rose again to about the level that had prevailed since midyear. Wholesale prices of industrial commodities continued to rise sharply in November, reflecting large additional increases for petroleum products and widespread advances among other commodities; farm and food prices declined further. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 In nearly all industrial countries abroad, concern has grown that a sustained cut in oil supplies will disrupt economic activity. Major foreign currencies have depreciated further against the dollar, and intervention sales of dollars by foreign monetary authorities have continued. The U.S. merchandise trade balance registered a strong surplus in the September-October period. The narrowly defined money stock, following little net change over the third quarter, has grown at a relatively rapid pace over the past 2 months. Growth in the more broadly defined money stock has also been substantial, as net inflows at banks of consumer-type time deposits have been large. Net deposit inflows at nonbank thrift institutions improved somewhat further. Bank credit expansion remained moderate in November, although business loans increased after 2 months of little or no growth. On December 7 the Federal Reserve announced a reduction from 11 to 8 per cent in marginal reserve requirements on large-denomination CD's. Most short-term market interest rates have declined somewhat on balance in recent weeks, while movements in long-term market rates have been mixed. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to resisting inflationary pressures, cushioning the effects on production and employment growing out of the oil shortage, and maintaining equilibrium in the country's balance of payments. To implement this policy, while taking account of international and domestic financial market developments, the Committee seeks to achieve some easing in bank reserve and money market conditions, provided that the monetary aggregates do not appear to be growing excessively. Votes for this action: Messrs. Burns, Balles, Brimmer, Bucher, Daane, Holland, Mayo, Mitchell, Morris, Sheehan, and Kimbrel. Vote against this action: Mr. Hayes. Absent and not voting: Mr. Francis. (Mr. Kimbrel voted as an alternate for Mr. Francis.) Mr. Hayes dissented from this action because, with the problems of inflation increasing rather than abating and with the monetary aggregates apparently growing more rapidly in 1973 than the Committee had considered desirable, he favored a continuation of the current degree of monetary restraint without noticeable relaxation unless signs of weakening in the economy became more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 121 apparent. He believed that, while there was not much that monetary policy could do to relieve the economic problems arising from the oil shortage, a premature easing of policy could exacerbate the problems of inflation. Subsequent to the meeting it appeared that in the December-January period the annual rate of growth in RPD's might be close to the upper limit of the range that had been specified by the Committee and that rates of growth in M and M might exceed 1 2 acceptable ranges, although a significant part of the growth in the monetary aggregates could be attributed to an unanticipated increase in deposits of foreign commercial banks at U.S. banks. On January 11 the available members—with the exception of Mr. Francis— concurred in a recommendation by the Chairman that, in view of the sensitive state of financial markets and the general economic situation, the System aim to maintain prevailing money market conditions for the time being. 2. Authorization for domestic open market operations On January 4, 1974, a majority of Committee members voted to increase from $2 billion to $3 billion the limit on changes between Committee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately, for the period ending with the close of business on January 22, 1974. Votes for this action: Messrs. Burns, Hayes, Brimmer, Holland, Mayo, Mitchell, Morris, Sheehan, and Clay. Vote against this action: Mr. Francis. Absent and not voting: Messrs. Balles, Bucher, and Daane. (Mr. Clay voted as alternate for Mr. Balles.) This action was taken on recommendation of the System Account Manager. The Manager had advised that a substantial volume of open market purchases of securities had been required in the period since the Committee's meeting on December 18, 1973, in order to offset reserve absorption resulting from market factors and that a near-term need to supply reserves was in prospect; he Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 had further advised that strength of the dollar in foreign exchange markets suggested that foreign official sales of U.S. Treasury bills might be heavy and that the System should be in a position to acquire some of those bills while offsetting any undesired effects on bank reserves by other means. Mr. Francis dissented from this action because, in view of his concern over the continuing rapid rate of growth in the monetary aggregates, he preferred that additional reserves necessary to meet requirements over the next few weeks be obtained through member bank borrowings rather than provided through additions to System holdings of securities. Moreover, he believed that foreign official sales of Treasury bills should be absorbed in the market. 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 TRUTH IN LENDING AMENDMENTS TO REGULATION Z The Board of Governors has amended Regula- Effective March 1, 1974, Regulation Z is tion Z to revoke several provisions included when amended as set forth below: the regulation was promulgated to assist creditors 1. Sections 226.6(j) and (k), 226.7(f), 226.602 in making the transition to compliance with the and 226.605 are deleted. rules. 2. As an incident to these amendments, § 226.6(1) is redesignated § 226.6(j). BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF banking market,1 controlling approximately 66 per BANK HOLDING COMPANY ACT cent of the total commercial bank deposits therein. Upon acquisition of Bank, Applicant would be- BHCO, INC., come the 18th largest banking organization in HARDIN, MONTANA Montana and hold 0.7 per cent of total commercial ORDER DENYING FORMATION OF BANK HOLDING deposits in the State. COMPANY The purpose of the proposed transaction is to effect a transfer of the ownership of Bank from BHCo, Inc., Hardin, Montana, has applied for individuals to a corporation owned by the same the Board's approval under § 3(a)(1) of the Bank individuals with no change in Bank's management Holding Company Act (12 U.S.C. 1842(a)(1)) of or operations. The individuals who presently conformation of a bank holding company through the trol Bank and who also organized Applicant are acquisition of 97.8 per cent of the voting shares members of the same family. of Big Horn County State Bank, Hardin, Montana The principals involved in this case together ("Bank"). with other members of the same family also own Notice of the application, affording opportunity 97 per cent of STS Corporation,2 Billings, Monfor interested persons to submit comments and tana, a one-bank holding company which owns views, has been given in accordance with § 3(b) 99.8 per cent of Security Trust and Savings Bank, of the Act. The time for filing comments and views Billings, Montana ("Billings Bank"). Billings has expired, and the Board has considered the Bank (deposits of $124 million) is the largest bank application and all comments received in light of in Montana, controlling 5.6 per cent of total comthe factors set forth in § 3(c) of the Act (12 U.S.C. mercial bank deposits in the State, and operates 1842(c)). in a separate but adjacent banking market approx- Applicant, a nonoperating company with no subsidiaries, was organized for the purpose of becoming a bank holding company through the xThe relevant banking market is approximated by the northacquisition of Bank, with deposits of $16.3 mil- ern two-thirds of Big Horn County. lion. (All banking data are as of June 30, 1973.) 2 STS Corporation received Board approval to become a bank holding company by Order dated November 15, 1971 (1971 Bank is the larger of two banks in its relevant Federal Reserve BULLETIN 1024). Digitized for FRASER 123 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 imately 47 miles west of Bank. In addition, these case may not generate sufficient income from the principals also control Bank of Commerce, Sheri- earnings of Bank to service its acquisition debt dan, Wyoming (deposits of $32 million), located and to maintain Bank's capital under a financially approximately 88 miles south of Bank, which sound program.3 With respect to questions of holds 2.8 per cent of total commercial bank de- acquisition debt and debt equity ratios, the Board posits in Wyoming. has been relatively liberal in the standards it has As indicated above, the proposed acquisition applied in cases when current or prospective represents a change in form of ownership of Bank, owner-chief executive is establishing, or has esand there are no significant proposed changes in tablished, a one-bank holding company to hold the the operations or services of Bank. Therefore, direct equity interest in his bank. Such relative considerations relating to the convenience and liberality is regarded as in the public interest in needs of the community to be served lend no order to facilitate management succession on the weight toward approval of the proposal. However, community level at the nation's many smaller as discussed below, the financial condition of independent banks. In situations where this special Applicant could impair Bank's ability to continue consideration does not pertain, the Board believes to serve the banking needs of the relevant market. it is prudent to apply somewhat more restrictive Under the Bank Holding Company Act, the standards, as is regularly done in analyzing multi- Board is required to take into consideration the bank holding companies. financial and managerial resources and future Under the above circumstances, in addition to prospects of the proposed holding company and other facts of record, considerations relating to the the bank to be acquired. In the exercise of that financial condition and prospects of Applicant lend responsibility, the Board finds that considerations weight for denial of the application. While the relating to the financial resources of Applicant Board recognizes that denial of the application warrant denial of the application. Applicant's would not necessarily affect immediately the conearning prospects are entirely dependent upon the trol of Bank, the Board cannot sanction the use earnings of Bank; Applicant expects to service a of a holding company structure that, because of $1.5 million debt over a 12-year period through limited financial resources, could impair the fi- Bank dividends averaging 45 per cent of Bank's nancial condition of the bank to be acquired, nor projected net income and through savings realized would the public interest be served by such Board by the holding company from filing consolidated action. income tax returns. The projected earnings for On the basis of all the facts in the record, and Bank do not, in the Board's view, provide Appli- in light of the factors set forth in § 3(c) of the cant with the necessary financial flexibility to meet Act, it is the Board's judgment that the proposed its annual debt servicing requirements as well as acquisition would result in a bank holding comany unexpected problems that might arise at Bank. pany with financial resources inadequate to service Furthermore, if Bank's projected rate of growth its debt while maintaining Bank's capital account, is realized, Bank's total capital funds as related and that such condition could impair the ability to its total assets would become insufficient be- of Bank to meet the needs of the community which cause of Applicant's inability to augment Bank's it serves. Accordingly, the Board concludes that capital due to its substantial debt servicing re- consummation of the proposal would not be in the quirements. The above factors strongly suggest public interest, and that the application should be that these financial requirements could place an denied. undue strain on Bank and thus impair Bank's By order of the Board of Governors, effective ability to be a viable banking organization in January 15, 1974. meeting the banking needs of the community which it serves. Such considerations lend weight Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, and Holland. Absent and not toward denial of the application. The Board notes that the principals of Applicant already control (through a one-bank holding com- 3 In a letter of comment received by the Board from the Director of the Department of Business Regulation, State of pany) Billings Bank, a bank with a capital ratio Montana, it was noted that Applicant's projection of earnings which has been declining under the policy of its appeared optimistic and it was recommended that the debt of the proposed holding company should be substantially reduced present management. This precedent lends support before approval of the subject application would be approto the view that the financial plan in the instant priate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 125 voting: Chairman Burns and Governor Daane. subsidiary of Lloyds Bank, engages in banking (Signed) CHESTER B. FELDBERG, activities in New York City through a branch [SEAL] Secretary of the Board. office, which holds approximately $362 million of deposits. Lloyds Bank and its subsidiaries have no other banking offices in the United States. LLOYDS BANK LIMITED AND Bank, which operates 96 offices throughout LLOYDS FIRST WESTERN CORPORATION, California, is the eighth largest commercial bank LONDON,ENGLAND in the State as it holds $1.1 billion of deposits representing 1.7 per cent of the total commercial ORDER APPROVING FORMATION OF BANK bank deposits in the State.2 Since Lloyds Bank HOLDING COMPANIES and its subsidiaries do not compete with Bank in Lloyds Bank Limited, London, England any of the relevant banking markets in California ("Lloyds Bank") and its wholly-owned subsidiary which Bank serves, consummation of the proposal Lloyds First Western Corporation, Wilmington, would eliminate no existing competition, nor Delaware ("Lloyds First Western"), have applied would it have a significant effect on the concentrafor the Board's approval under § 3(a)(1) of the tion of banking resources in any relevant area. Bank Holding Company Act (12 U.S.C. Although Lloyds Bank could enter any of the 1842(a)(1)) of formation of bank holding compa- local banking markets in California served by nies through the acquisition of up to 100 per cent Bank either de novo or through the acquisition of of the voting shares of First Western Bank and a smaller bank, the acquisition of Bank by Lloyds Trust Company, Los Angeles, California Bank would not have an adverse effect on potential ("Bank"). Lloyds First Western is a Delaware competition because consummation of the procorporation recently organized by Lloyds Bank for posal would not give Lloyds Bank a dominant the sole purpose of acquiring Bank and has en- share of the banking resources in any market gaged in no business activities and has no subsidi- served by Bank, nor would it appear to foreclose aries. Accordingly, the applications of Lloyds the entry of other banking organizations into any Bank and Lloyds First Western have been consid- such markets. Moreover, it appears that consumered together and this Order contains the Board's mation of the proposal may increase competition, findings and conclusions with respect to both such as affiliation with Lloyds Bank should make Bank applications. a stronger and more vigorous competitor of other Notice of the applications, affording opportunity California banks in local banking markets for interested persons to submit comments and throughout the State. Accordingly, the Board conviews, has been given in accordance with § 3(b) cludes that competitive considerations are consistof the Act. The time for filing comments and views ent with approval of the applications. has expired, and the Board has considered the The financial and managerial resources and the applications and all comments received in light of future prospects of Lloyds Bank and its subsidithe factors set forth in § 3(c) of the Act (12 U.S.C. aries appear satisfactory. Since Lloyds First West- 1842(c)). ern is a nonoperating corporation organized for the Lloyds Bank, with total consolidated assets of sole purpose of acquiring Bank, its prospects approximately $13.4 billion,1 operates over 2,300 depend entirely upon those of Bank. The financial branches throughout England, Wales and the condition and future prospects of Bank appear Channel Islands and, with its many subsidiary and satisfactory in view of the twofold commitment associated companies, provides a comprehensive of Lloyds Bank through Lloyds First Western to range of worldwide banking and financial services. inject an additional $10 million in capital into Lloyds Bank and its banking subsidiaries control Bank as soon as practicable after consummation approximately $12.4 billion of deposits making of the proposal, and to increase Bank's capital in Lloyds Bank the fourth largest commercial bank the future by reducing Bank's level of dividend in Great Britain. Lloyds & Bolsa International payments, which have been high under its present Bank, Limited, London, England, a wholly-owned owners.3 Though Bank's management is consid- 1All banking and financial data pertaining to Lloyds Bank 2 All banking data for Bank are as of June 30, 1973. and its subsidiaries are as of December 31, 1972 and reflect 3Bank disbursed dividends averaging 67.8 per cent of net a conversion rate of £ 1 =$2.3465. income in the period 1969-1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 ered satisfactory, Bank has suffered from high the communities to be served lend some weight management turnover due to several changes in toward approval of the application. It is the ownership during the past 12 years and uncertainty Board's judgment that the transaction would be concerning the future ownership of Bank.4 Ap- in the public interest and that the application proval of the proposed transaction would provide should be approved. Bank with needed managerial stability and depth In connection with the present application, and would make available to Bank's management Lloyds Bank has also applied for the Board's the knowledge and experience of the staff of permission to retain its indirect investments in the Lloyds Bank, especially in the areas of interna- voting shares of Balfour, Williamson, Inc., New tional and wholesale banking, where Bank has not York City, and of Export Credit and Marketing been an aggressive competitor relative to its size. Corporation, New York City ("ECMC"), and of In addition, as previously noted, these increased ECMC's wholly-owned subsidiaries Drake financial and managerial resources should signifi- America Corporation, New York City, Drake cantly strengthen Bank's ability to compete with America Corporation (P.R.), New York City, and other California banks. Thus, considerations relat- Export Credit Corporation, New York City. These ing to the financial and managerial resources of matters will be the subject of separate consid- Bank lend weight toward approval of the applica- eration by the Board under § 4(c)(9) of the Act. tion. There is no evidence in the record to indicate On the basis of the record, the applications are that the banking needs of the areas served by Bank approved for the reasons summarized above. The are not being met. However, the proposed acqui- transaction shall not be made (a) before the thirsition, by increasing the financial and managerial tieth calendar day following the effective date of resources available to Bank, would enable Bank this Order or (b) later than three months after the to offer a wider range of services, particularly in effective date of this Order, unless such period international and wholesale banking. In retail is extended for good cause by the Board, or by banking, Bank would once more be able to open the Federal Reserve Bank of San Francisco pursunew branches, thus increasing services and com- ant to delegated authority. petition in local banking markets throughout the By order of the Board of Governors, effective State.5 Therefore, the convenience and needs of December 10, 1973. 4Bank was established by Western Bancorporation in 1961 Voting for this action: Chairman Burns and Governors Brimmer, Sheehan, and Holland. Present and abstaining: pursuant to an agreement with the Antitrust Division of the Governor Bucher. Absent and not voting: Governors Mitchell United States Department of Justice for the settlement of certain and Daane. antitrust litigation then pending against Western Bancorporation. The Board approved this acquisition of Bank, a proposed (Signed) CHESTER B. FELDBERG, new bank, by Western Bancorporation (then named Firstamerica Corporation) in its Order of January 27, 1961 (47 [SEAL] Secretary of the Board. Federal Reserve BULLETIN 157). In 1963, Bank was sold to Greatamerica Corp., Dallas, Texas, which owned no other NORBANK, INC., banking organizations. Bank was again sold in 1968 to World- CHICAGO, ILLINOIS america Investors Corp., its present owner, a wholly-owned subsidiary of World Airways, Inc., Oakland, California, which both became one-bank holding companies as a result of the ORDER DENYING FORMATION OF BANK HOLDING 1970 Amendments to the Act. World Airways, Inc. is a COMPANY certified U. S. Supplemental Air Carrier providing charter carriage of passengers and cargo in and between the United Norbank, Inc., Chicago, Illinois, has applied for States and many foreign countries and apparently has held Bank primarily as an investment. A proposed merger of Bank into the Board's approval under § 3(a)(1) of the Bank Wells Fargo Bank, N.A., San Francisco, California, was Holding Company Act (12 U.S.C. 1842(a)(1)) of approved by the Comptroller of the Currency on December formation of a bank holding company through 20, 1971, conditioned upon divestiture by Wells Fargo Bank, N.A. of all Bank's northern California banking offices to acquisition of 98.9 per cent or more of the voting another bank approved by the Comptroller. On January 17, shares of Northbrook Trust & Savings Bank, 1972, consummation of the merger was enjoined by an antitrust Northbrook, Illinois ("Bank"). action instituted by the Antitrust Division of the United States Department of Justice, which alleged that the transaction would Notice of the application, affording opportunity violate the provisions of the Clayton Antitrust Act. In October, for interested persons to submit comments and 1972, the merger agreement between Bank and Wells Fargo Bank, N.A. was terminated due to the inability of the parties views, has been given in accordance with § 3(b) and the Antitrust Division to reach a mutually agreeable settle- of the Act. The time for filing comments and views ment. has expired, and the Board has considered the 5Bank has not opened any new branch offices in California since 1970. application and all comments received in light of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 127 the factors set forth in § 3(c) of the Act (12 U.S.C. Applicant, upon consummation of the proposed 1842(c)). transaction, would incur acquisition debt in the Applicant, a newly-formed corporation with no amount of $3,380,000, which is to be repaid with operating history, was organized by the principal interest in 12 years with annual principal payments shareholder of Bank1 for the purpose of converting beginning in 1976. Applicant, in its projections, ownership of Bank from an individual to a cor- proposes to service this debt from no more than porate basis. Upon acquisition of Bank ($41.3 a 50 per cent dividend payout from Bank. These million of deposits), Applicant would control .09 projections, however, appear optimistic. If earnper cent of the total commercial bank deposits in ings growth fails to keep pace with Applicant's Illinois.2 The proposed sole voting shareholder of optimistic projections, the percentage of earnings Applicant also owns a controlling voting interest paid out as dividends of Bank might have to be in Northwestco, Inc., Chicago, Illinois, a regis- increased in order to service Applicant's acquisitered bank holding company, which owns all of tion debt, and this, in turn, could seriously inhibit the outstanding voting shares (less directors' the growth of Bank's capital and have an adverse qualifying shares) of the Northwest National Bank effect on Bank's ability to service its relevant of Chicago, Chicago, Illinois ("Northwest market. In addition, even if Applicant's projec- Bank"). While Northwest Bank has deposits of tions could be considered realistic, the require- $257.7 million and is the 12th largest bank in ments for servicing Applicant's substantial acqui- Illinois, the combined deposits of Bank and sition debt could seriously inhibit growth in Bank's Northwest Bank account for less than 1 per cent capital at a rate compatible with its projected asset of total commercial bank deposits in the Chicago growth. These considerations relating to the fibanking market. In addition, Bank and Northwest nancial and managerial resources of Applicant Bank are separated by approximately 16 road miles therefore weigh heavily against approval of this and neither bank appears to derive significant application. It should be emphasized, however, business from the other's service area.3 Accord- that these factors in no way reflect upon the present ingly, the Board concludes that there would be financial soundness of Bank, nor upon its future no significant increase in the concentration of financial condition absent consummation of the banking resources in any relevant area and no instant proposal. significant existing or potential competition would There is no evidence in the record that the be eliminated upon consummation of this pro- convenience and needs of the residents of Bank's posal . service area are not already adequately being In applications to form one-bank holding com- served, nor that approval of the instant proposal panies, the Board has considered significant debt would give rise to any significant public benefits. in acquiring a bank as an adverse circumstance. Considerations relating to the convenience and Significant acquisition debt may adversely affect needs of the communities to be served thus lend the ability of a holding company to meet the no weight toward approval of the application. financial needs of its subsidiary bank. The amount On the basis of all of the circumstances of this and maturity of the debt, therefore, must be con- case and the facts of record, the Board concludes sidered in relation to the ability of the holding that the acquisition debt involved in this proposal company to service the debt, and the likelihood presents adverse circumstances bearing on the fithat Bank will need capital. The debt factor is then nancial condition and prospects of Applicant and balanced with other considerations in determining Bank. Such circumstances are not outweighed by whether the acquisition would be in the public any procompetitive factors or by circumstances interest. relating to the convenience and needs of the communities to be served. Accordingly, approval of lrThe principal shareholder of Bank, who is also a director the application is not in the public interest and of Bank, presently owns 39,560 of the 40,000 outstanding the application should be denied. shares of Bank. The remaining 440 shares of Bank are held On the basis of the record, the application is as qualifying shares by the other directors of Bank with the understanding that they will be sold to the principal shareholder denied for the reasons summarized above. for sale to the Applicant if the application is approved. By order of the Board of Governors, effective 2 All banking data are as of December 31, 1972. January 8, 1974. Although each bank is located in Cook County (Central Chicago SMS A), Bank is located in a suburban area in the far northern tip of the county, while Northwest Bank is located Voting for this action: Vice Chairman Mitchell and Goveron the north central side of Chicago. nors Brimmer, Sheehan, and Holland. Absent and not voting: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 Chairman Burns and Governors Daane and Bucher. of Applicant's banking subsidiaries and San An- (Signed) CHESTER B. FELDBERG, gelo Bank, nor is there a reasonable probability of substantial future competition developing be- [SEAL] Secretary of the Board. tween any of Applicant's banking subsidiaries and FIRST CITY BANCORPORATION San Angelo Bank due to the distances involved OF TEXAS, INC., and Texas branching laws. Affiliation of San An- HOUSTON, TEXAS gelo Bank with Applicant may enable the former to become a more vigorous competitor of the ORDER APPROVING ACQUISITIONS OF BANKS largest bank which controls approximately 36 per First City Bancorporation of Texas, Inc., Hous- cent of deposits in the market and is presently ton, Texas, a bank holding company within the affiliated with a large Texas bank holding commeaning of the Bank Holding Company Act, has pany. applied for the Board's approval under § 3(a)(3) The Board, in its opinion on the application by of the Act (12 U.S.C. 1842(a)(3)) to acquire all First International Bancshares, Dallas, to acquire of the voting shares (less directors' qualifying the Citizens First National Bank of Tyler, indishares) of the successors by merger to (1) The cated a concern with the trend toward acquisitions First National Bank of San Angelo, San Angelo, by the largest holding companies in Texas of Texas ("San Angelo Bank"); and (2) The First leading banks in secondary SMS As. The acquisi- National Bank of Paris, Paris, Texas ("Paris tion of San Angelo Bank is a marginal case but Bank"). The banks into which San Angelo Bank does not warrant denial. San Angelo Bank is not and Paris Bank are to be merged have no signifi- of such an absolute size that the proposed acquisicance except as a means to facilitate the acquisition tion will significantly contribute to an imbalance of the voting shares of San Angelo Bank and Paris in state structure; nor will the acquisition retard Bank. Accordingly, the proposed acquisitions of the development of the smaller holding companies the shares of the successor organizations are by removing those larger size banks in secondary treated herein as the proposed acquisitions of the SMSA markets which could serve as principal shares of San Angelo Bank and Paris Bank. members of such smaller organizations. Notice of the applications, affording opportunity Paris Bank is the largest bank in its relevant for interested persons to submit comments and banking market controlling about 40.5 per cent of views, has been given in accordance with § 3(b) deposits in the market.3 There is no substantial of the Act. The time for filing comments and views existing competition between any of Applicant's has expired, and none have been timely received. banking subsidiaries and Paris Bank, nor is there The Board has considered the applications in light a reasonable probability of future competition of the factors set forth in § 3(c) of the Act (12 developing between Applicant's banking subsidi- U.S.C. 1842(c)). aries and Paris Bank due to the distances involved Applicant controls 18 banks with aggregate de- and Texas branching law. Nor is there any subposits of $2.4 billion representing approximately stantial existing competition or probability of sub- 7 per cent of total deposits in commercial banks stantial competition developing between San Anin Texas.1 Acquisition of San Angelo Bank (de- gelo and Paris Bank due to the distance between posits of $53.4 million) and of Paris Bank (depos- the two. Further, Applicant cannot be considered its of $31.9 million) by Applicant would not a probable future entrant into the Lamar County significantly increase the concentration of banking market since the market is relatively unattractive resources in Texas. as measured by the population and deposits per San Angelo Bank ranks as the third largest bank banking office ratios, which are considerably lower in its relevant banking market with approximately than the comparable Statewide averages, and also 22.5 per cent of deposits in the market.2 There due to the low population growth from 1960 to is no substantial existing competition between any 1970 of Lamar County compared to the population growth of the State as a whole during that period. Based on these and other facts of record, the Board 1A11 banking data are as of June 30, 1973, and reflect bank holding company formations and acquisitions approved by the Board through November 30, 1973. 2 The relevant banking market for analysis of the acquisition 3The relevant banking market for analysis of the acquisition of the San Angelo Bank is approximated by the San Angelo of the Paris Bank is approximated by Lamar County. Lamar SMSA. County is not classified as a secondary SMSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 129 concludes that the competitive considerations of FIRST FINANCIAL CORPORATION, both applications are consistent with approval. TAMPA, FLORIDA The financial and managerial resources and fu- ORDER DENYING ACQUISITION OF BANK ture prospects of Applicant, its subsidiary banks, and San Angelo Bank and Paris Bank are generally First Financial Corporation, Tampa, Florida, a satisfactory particularly in view of Applicant's bank holding company within the meaning of the commitment to add capital to San Angelo Bank, Bank Holding Company Act, has applied for the Paris Bank, and one of its other banking subsidi- Board's approval, under § 3(a)(3) of the Act (12 aries. This factor weighs in support of approval U.S.C. 1842(a)(3)), to acquire 90 per cent or more of both applications. Considerations relating to the of the voting shares of Citizens Bank and Trust convenience and needs of the communities to be Company ("Quincy Bank"), Quincy, Florida. served are consistent with approval of the applica- Notice of the application, affording opportunity tions. The Board concludes that both applications for interested persons to submit comments and are in the public interest and should be approved. views, has been given in accordance with § 3(b) On the basis of the record, the applications are of the Act. The time for filing comments and views approved for the reasons summarized above. The has expired, and the Board has considered the transactions shall not be made (a) before the thir- application and all comments received in light of tieth calendar day following the effective date of the factors set forth in § 3(c) of the Act (12 U.S.C. this Order or (b) later than three months after the 1842(c)). effective date of this Order unless such period is Applicant controls 15 banks with aggregate deextended for good cause by the Board or by the posits of $878.6 million representing about 4.0 per Federal Reserve Bank of Dallas pursuant to dele- cent of deposits in commercial banks in Florida.1 gated authority. Acquisition of Quincy Bank (deposits of $16.9 By order of the Board of Governors, effective million) by Applicant would not significantly in- January 2, 1974. crease the concentration of banking resources in Florida. Voting for this action: Vice Chairman Mitchell and Gover- Quincy Bank is the second largest among banks nors Daane, Brimmer, and Holland. Absent and not voting: Chairman Burns and Governors Sheehan and Bucher. in the relevant banking market, with control of (Signed) CHESTER B. FELDBERG, about 32 per cent of deposits in commercial banks [SEAL] Secretary of the Board. in the market.2 Though Applicant is not presently represented in this market, the Board has today approved Applicant's acquisition of the third largest bank in the market, Gadsden State Bank. If CONCURRING STATEMENT OF the Board also approved the application to acquire GOVERNOR DAANE Quincy Bank, consummation of both acquisitions would result in Applicant having approximately I concur in the decision of the majority to a 47 per cent share of the market and controlling approve the applications to acquire San Angelo two of the four alternative sources of banking Bank and Paris Bank. However, I cannot concur services in the market. The Board considers such in the majority's attempt to distinguish its approval concentration of market power through acquisition of Applicant's acquisition of San Angelo Bank to be undesirable particularly in view of the fact from the Board's denial of the application of First that the relevant market is not likely to attract International Bankshares, Inc., Dallas, Texas, to future entry in the reasonably foreseeable future. acquire Citizens First National Bank of Tyler, The population of the market has declined over Tyler, Texas, from which I dissented. San Angelo Bank is one of the three leading banks in a secondary SMS A in Texas. Though ranking third in such SMSA as opposed to the number one rank *A11 banking data are as of June 30, 1973, and represent of Tyler in its SMSA, there is no significant bank holding company formations and acquisitions approved difference in their respective market shares nor is by the Board through November 30, 1973. The total of banks controlled by Applicant does not include Gadsden State Bank, the Tyler SMSA that much more attractive an area Chattahoochee, Florida, whose acquisition by Applicant has for entry than the San Angelo SMSA. For this been approved by the Board as of this date. reason, I concur in the result but not the reasoning 2 The relevant banking market is approximated by Gadsden County and a small portion of Jackson County, both of which by which the result is reached. counties are located in the panhandle area of Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 the last ten years, the per capita income is signifi- West Bend, West Bend, Wisconsin ("Bank"). cantly below that in the State as a whole, and the The acquisition will be made by Inland and as population and deposits per banking office ratios a result Jacobus will indirectly acquire voting are also lower than Statewide ratios. There is not shares of Bank. a reasonable probability of future entry that would Notice of the application, affording opportunity lessen the concentration of banking resources in for interested persons to submit comments and the market that would result from approval of both views, has been given in accordance with § 3(b) the application to acquire Quincy Bank and that of the Act. The time for filing comments and views to acquire Gadsden Bank. Based on the facts of has expired, and the Board has considered the record, the Board concludes that consummation application and all comments received in light of of the transaction herein would have a substantially the factors set forth in § 3(c) of the Act (12 U.S.C. adverse effect on competition in the market. 1842(c)). The financial and managerial resources and fu- Applicants control three banks with deposits of ture prospects of Applicant, its subsidiary banks, approximately $97 million, representing less than and Bank are regarded as generally satisfactory 1 per cent of the total deposits of commercial and consistent with approval of the application. banks in the State of Wisconsin. (All data are as However, these factors do not outweigh the sub- of December 31, 1972.) Bank commenced operastantial adverse effects that would result from tions on April 30, 1973, and its deposit totals are consummation of this transaction. Applicant's ac- as yet insignificant on a State-wide analysis. Bank quisition of Bank would provide Bank with addi- was organized by Inland's President in March, tional capabilities that it might not be able to obtain 1973. Funds for the acquisition were provided by on its own. However, these considerations are not an independent third bank which loaned 100 per sufficient to outweigh the substantial adverse ef- cent of the purchase price ($600,000) at the prime fects described above. Moreover, these capabil- interest rate to Inland's President. ities could probably be obtained through affiliation Bank's market area is approximated by upper of Bank with another banking organization not two-thirds of Washington County. Applicants have presently represented in the market. The Board banking offices within the SMS A, but the nearest concludes that the proposed transaction is not in office is 27 miles from Bank. Applicants' nonthe public interest and should be denied. banking subsidiaries do not operate in Bank's On the basis of the record, the application is relevant market. Even if the affiliation between denied. Bank and Applicants did not exist, consummation By order of the Board of Governors, effective of the proposed transaction would not appear to December 27, 1973. have a significant adverse effect on existing or future competition between Applicants or their Voting for this action: Vice Chairman Mitchell and Goversubsidiaries and Bank. Furthermore, it appears nors Daane, Brimmer, and Holland. Absent and not voting: Chairman Burns and Governors Sheehan and Bucher. that Bank's entry into the West Bend banking market, where the top two of the eight banking (Signed) THEODORE E. ALLISON, organizations in the area already control about [SEAL] Assistant Secretary of the Board. two-thirds of the deposits held by the area's commercial banks, will have salutary effects on the market by adding an additional competitor. THE JACOBUS COMPANY AND INLAND Consummation of the proposed transaction would FINANCIAL CORPORATION, appear to have no significant adverse effects on MILWAUKEE, WISCONSIN existing or potential competition in any relevant area. ORDER APPROVING ACQUISITION OF BANK Considerations relating to the financial condi- The Jacobus Company ("Jacobus") and its 43.1 tion, managerial resources and prospects of Apper cent owned subsidiary, Inland Financial Cor- plicants, their subsidiary banks, and Bank are poration ("Inland") both of Milwaukee, Wiscon- generally satisfactory and consistent with approval sin, which are bank holding companies within the of the applications. In this connection the Board meaning of the Bank Holding Company Act, have considered Inland's representations that it will applied for the Board's approval under § 3(a)(3) inject $500,000 of equity capital into its Milwauto acquire all (except for directors' qualifying kee bank subsidiary by December, 1974. Considshares) of the voting shares of Heritage Bank of erations relating to the convenience and needs of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 131 the community to be served also are consistent this Order or (b) later than three months after the with approval of the application. effective date of this Order, unless such period As stated, Inland's President organized Bank in is extended for good cause by the Board, or by March, 1973, and now Inland is seeking permis- the Federal Reserve Bank of Chicago pursuant to sion to buy Bank from its President. In a contract delegated authority. of sale dated March 29, 1973, Inland agreed, in By order of the Board of Governors, effective part, that should the Board not approve this trans- January 9, 1974. action, Inland would reimburse its President for Voting for this action: Chairman Burns and Governors any loss sustained by him upon sale of Bank within Mitchell, Brimmer, Sheehan, and Holland. Absent and not five years. The Board believes that an indemnifi- voting: Governors Daane and Bucher. cation clause in situations such as this offers a (Signed) CHESTER B. FELDBERG, potential for shifting the risk of economic loss to [SEAL] Secretary of the Board. the holding company, and that such a provision is an indicium of "control" (as that term is used in § 2(a)(2) of the Bank Holding Company Act). MID AMERICA BANCORPORATION, INC., In a given case, an examination of the circum- MENDOTA HEIGHTS, MINNESOTA stances attending such an agreement could result ORDER DENYING ACQUISITION OF BANK in a finding by the Board that an indemnification agreement and/or other action of an applicant Mid America Bancorporation, Inc., Mendota constitutes control of a bank or other company, Heights, Minnesota, a bank holding company which if occurring without prior approval of the within the meaning of the Bank Holding Company Board, constitutes a violation of the Act. Upon Act, has applied for the Board's approval under study of the facts in the instant case, the Board § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to finds that no violation of the Act is apparent. Any acquire 100 per cent of the voting shares (less applicant before the Board is well advised, how- directors' qualifying shares) of The First National ever, to avoid use of any indemnification, option, Bank of Lakeville, Lakeville, Minnesota or other reimbursement provisions in such manner ("Bank"). as to give rise to a question of whether the as- Notice of the application, affording opportunity sumption of risk or other liability assumption may for interested persons to submit comments and be found to constitute control over the bank or views, has been given in accordance with § 3(b) other organization involved. of the Act. The time for filing comments and views As noted in the Board's Order dated February has expired, and none has been timely received. 25, 1972 (1972 Federal Reserve BULLETIN 306), The Board has considered the application in light approving Applicants' acquisition of the voting of the factors set forth in § 3(c) of the Act (12 shares of Heritage Bank-Mayfair, Wauwatosa, U.S.C. 1842(c)). Wisconsin, Jacobus has filed a declaration, pursu- Applicant controls eight banks with total deposant to § 4(c)(12) of the Bank Holding Company its of $105 million, representing .9 per cent of Act, that it will cease to be a bank holding com- total commercial bank deposits held by Minnesota pany by January 1, 1981. In addition, as the Board banks, and is the sixth largest banking organization stated in the earlier Order, Jacobus has committed in the State. (All banking data are as of June 30, itself to divest itself of its interest in Inland within 1973, and reflect formations and acquisitions ap- 90 days of the passage of enabling legislation proved through December 31, 1973.) The acquisipermitting distribution of Inland's shares to Ja- tion of Bank ($8 million deposits) would increase cobus shareholders on a tax free basis. Also, Applicant's share of deposits by less than one per Inland has agreed to divest itself of its interest cent and its rank among the State's banking orgain Goetze-Haessler-James, Inc., an insurance nizations would not change. It appears, therefore, company subsidiary, no later than May 31, 1974 that consummation of the proposal would not if Federal income tax legislation has been enacted result in a significant increase in the concentration by that date. of banking resources in the State. On the basis of the record and in view of the Bank, the only commercial bank in Lakeville, aforesaid commitments, the application is ap- is located just within the perimeter of the Minproved for the reasons summarized above. The neapolis-St. Paul banking market and, with .1 of transaction shall not be made (a) before the thir- one percentage point of the total deposits in the tieth calendar day following the effective date of market, is one of the smaller banking organizations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 operating therein. With seven of Applicant's sub- While the proposed assistance to be rendered could sidiary banks operating in the relevant market, possibly enable Bank to better serve the public, Applicant controls 1.5 per cent of market deposits Applicant's ability to provide meaningful assistand is the sixth largest banking organization in ance to Bank appears doubtful in view of its the market. The nearest office of any of Appli- proposed debt structure and the need to service cant's subsidiary banks to an office of Bank is 13 its other subsidiary banks with additional capital. miles to the north, and it appears that there is no Moreover, the ability of Applicant's other subsidsignificant present competition between any of iaries to continue their present range of banking Applicant's subsidiary banking offices and Bank. services may be hampered because of Applicant's Moreover, in view of the distances involved and impaired capacity, under the financing plan the large number of banking organizations in the proposed, to provide its subsidiaries with addimarket (over 100), it appears unlikely that con- tional capital if the need arises. Thus, the Board summation of the proposal would foreclose the is unable to conclude that considerations relating development of significant potential competition to the convenience and needs provide any weight between Applicant and Bank. Accordingly, the for approval of the application. Board regards competitive considerations as being In its consideration of the proposal, the Board consistent with approval of the application. noted that the application contains information The present financial condition and managerial indicating a previous purchase of the stock of Bank resources of Applicant are considered to be gener- by the Chairman of the Board of Applicant pendally satisfactory. However, in connection with the ing a Board determination with regard to the proposed acquisition of Bank, Applicant would proposed acquisition. The record also indicates incur a debt of approximately $1.5 million in order that there is an agreement between Applicant and to finance the purchase of Bank and to provide its Chairman whereby the Chairman, if required capital for its subsidiary banks. Since becoming to sell the stock to other than Applicant, would a one-bank holding company in January 1969, be reimbursed for any loss incurred by such sale Applicant has acquired seven additional banks, of the bank stock not to exceed 25 per cent of including three de novo institutions. In the Board's the contract price, and that Applicant would share view, the increased debt position attributable to in a portion of any profits resulting from such sale. the proposed acquisition could impair Applicant's As recently noted in another case involving a future ability to meet the capital needs of its similar agreement with an indemnification clause existing subsidiaries, particularly the newly between an Applicant and one of its officers, the formed banks. In this connection, the Board has Board is seriously concerned with proposals that previously indicated its position that a holding indicate a holding company, acting through its company should be a source of financial strength officers or directors, may have gained control of for the banks in its system and that every proposed the shares of a bank (or nonbank concern) without acquisition should be closely examined to deter- specific Board approval, as required by the Act.1 mine whether consummation thereof would serve Accordingly, to re-emphasize the point earlier the best interest of the public as well as the banks noted by the Board, bank holding companies in the holding company system. In reviewing such should be circumspect in entering into any agreefactors in this case, it is the judgment of the Board ment which might reasonably indicate that the that the financing plan proposed by Applicant does holding company has in fact acquired a measure not provide Applicant with the necessary financial of control over the shares involved, since such flexibility to meet the financial needs of its present action could subject the company to criminal pensubsidiary banks or Bank. Consequently, on the alties under § 8 of the Act. On this basis, and basis of the facts of this case, the Board finds in view of the Board's action herein, Applicant that considerations relating to the banking factors should desist from taking any direct or indirect lend weight for denial of the application. action to control the management or policies of With respect to convenience and needs consid- Bank and should take all appropriate action to erations, there is no evidence in the record that the major banking needs of the communities to be served are not being met by existing institutions. Applicant states that it will assist Bank in *See Board Order of January 9, 1974, relating to the appliexpanding its commercial lending activities and cations of Jacobus Company and Inland Financial Corporation, both of Milwaukee, Wisconsin, to acquire Heritage Bank of may provide Bank with new banking facilities. West Bend, West Bend, Wisconsin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 133 terminate any control relationship that may exist Bank (deposits of $105 million) would increase with respect to shares of Bank. Applicant's rank among State organizations to On the basis of all the facts in the record, and fifth; however, Applicant's share of the State dein light of the factors set forth in § 3(c) of the posits would be increased by less than one per- Act, it is the Board's judgment that the proposed centage point which would not significantly inacquisition would result in a bank holding com- crease the concentration of banking resources on pany with financial resources inadequate to service a State-wide basis.1 its debt without undue risk to the financial condi- Bank is the second largest of three banks headtion of its present subsidiaries and Bank, and that quartered in the city of Muskegon (population such condition could impair the ability of such 44,631), and with 24.3 per cent of total deposits banks to meet the needs of the communities in the Muskegon-Grand Haven banking market,2 served. Accordingly, the Board concludes that is the second largest of five banks in that market. consummation of the proposal would not be in the The largest bank in the market and the third in public interest, and that the application should be size, both headquartered in Muskegon, control denied. respectively, about 32 and 19 per cent of total By order of the Board of Governors, effective deposits in commercial banks in the market. The January 31, 1974. fourth and fifth largest banks are both headquartered in Grand Haven and control 13 and 11.5 Voting for this action: Governors Brimmer, Sheehan, per cent, respectively, of total deposits in com- Bucher, and Holland. Absent and not voting: Chairman Burns mercial banks in the market.3 and Governors Mitchell and Daane. (Signed) CHESTER B. FELDBERG, Applicant's lead bank, Old Kent Bank and Trust Company ("Old Kent"), is located in Grand [SEAL] Secretary of the Board. Rapids, approximately 35 miles east of Bank. Old Kent, with deposits of about $688 million, is the OLD KENT FINANCIAL CORPORATION, largest banking organization in the Grand Rapids GRAND RAPIDS, MICHIGAN banking market and controls 49 per cent of the ORDER DENYING ACQUISITION OF BANK commercial bank deposits located in that market. While Bank and Old Kent are in banking markets Old Kent Financial Corporation, Grand Rapids, that are regarded as separate at this time, there Michigan, a bank holding company within the is some existing competition between them. Old meaning of the Bank Holding Company Act, has Kent obtains over $ 1 million in deposits and applied for the Board's approval under § 3(a)(3) derives almost $5 million in loans from Bank's of the Act (12 U.S.C. 1842(a)(3)) to acquire all service area and has a high percentage of trust of the voting shares of the successor by merger clients in the Bank's service area. Bank obtains to National Lumberman's Bank and Trust Comover $3 million in deposits from Old Kent's servpany, Muskegon, Michigan ("Bank"). The bank ice area. This competitive overlap between Bank into which Bank is to be merged has no signifiand Old Kent is likely to increase in the future. cance except as a means to facilitate the acquisition Consummation of the proposal would thus elimiof the voting shares of Bank. Accordingly, the nate existing competition as well as the probability proposed acquisition of shares of the successor of increased competition developing between them organization is treated herein as the proposed acin the future. quisition of the shares of Bank. Also, due to its size, proximity to the relevant Notice of the application, affording opportunity market and recent record of expansion in this area for interested persons to submit comments and of Michigan, Applicant is considered to be one views, has been given in accordance with § 3(b) of the most likely entrants into the Muskegonof the Act. The time for filing comments and views Grand Haven market. Applicant has the resources 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 U.S.C. 1842(c)). 1 State banking data are as of June 30, 1973, adjusted to Applicant, which controls four banks with ag- reflect bank holding company formations and acquisitions approved by the Board through November 1, 1973. gregate deposits of approximately $775 million, 2The Muskegon-Grand Haven banking market is approxirepresenting 3.0 per cent of the total deposits in mated by the Muskegon-Grand Haven Ranally Metro Area which consists of most of Muskegon County and the northwest commercial banks in Michigan, is the sixth largest corner of Ottawa County. banking organization in the State. Acquisition of 3Market data are as of June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 and expertise to enter the Muskegon-Grand Haven allowed to continue, it would have significantly market de novo. While the city of Muskegon does adverse effects upon competition in this area of not appear particularly attractive for de novo entry, Michigan. In addition, approval of this acquisition the Board finds that the relevant market appears would remove Bank as an entry vehicle for a bank to be capable of supporting new entry. The popu- holding company not already represented in this lation per banking office ratio of 6,500 is well region and thus it would make deconcentration less above the State average of 5,495, while the de- likely. posits per banking office ratio of $14.5 million is On the basis of the foregoing and other facts only slightly lower than the State average of $15.3 of record, the Board concludes that competitive million. In addition, at least one section of the considerations relating to this application weigh market, the city of Norton Shores, which has sufficiently against approval so that it should not demonstrated rapid growth (with population in- be approved unless the anticompetitive effects are crease of 25 per cent in the period 1960-70) and outweighed by considerations relating to the fihas a population per banking office ratio of 7,432 nancial and managerial resources and future prosrelative to the State average of 5,495, could sup- pects of Applicant and Bank or the convenience port new entry. Within this community, three and needs of the communities to be served. branches of other banking organizations are lo- The financial and managerial resources and fucated, but no home offices. Due to the fact that ture prospects of Applicant and its subsidiary Michigan law prohibits additional banks from es- banks are regarded as satisfactory and consistent tablishing branches there, it would appear that with approval of the application. Bank has sound Norton Shores is a viable area for new entry. financial resources and satisfactory management, Given these factors, the Board concludes that but its earnings are below those of other banks consummation of the proposed acquisition would in its size class in Michigan, and prospects for eliminate the likelihood that Applicant would enter Bank's management succession are uncertain. de novo and thus would have an adverse effect While Applicant has the resources to remedy on potential competition. Bank's problems, it appears to the Board that those The Board is further concerned that Applicant problems could be remedied by other less antiis in the process of acquiring a position of domi- competitive means. nance in a four-county region in western Michigan Applicant has indicated that it would effect (approximated by Kent, Ottawa, and Muskegon changes in Bank's services in the areas of its Counties, plus the lower one-third of Newaygo physical facilities, management, trust services, County). Within this four-county region are lo- international services and services for larger comcated the Grand Rapids, Holland, Fremont and mercial customers. However, there is no evidence Muskegon-Grand Haven banking markets. Appli- that the banking needs of the relevant market are cant is the leading organization in the Grand not presently being met. Rapids market, and has just consummated signifi- The Board finds that the anticompetitive aspects cant acquisitions in the Holland and Fremont mar- of the proposed acquisition are not outweighed by kets, both adjacent to the Grand Rapids market. considerations relating to financial and managerial Applicant now proposes to acquire the second resources or the probable effect of the transaction largest bank in the Muskegon-Grand Haven mar- in meeting the convenience and needs of the comket, another market with close proximity to Grand munity to be served. Rapids. At present, Applicant controls approxi- On the basis of all relevant facts in the record, mately 37 per cent of the total deposits in this the Board concludes that approval of the proposed four-county region. Consummation of the present acquisition is not in the public interest, and the proposal would increase Applicant's share of de- application is denied for the reasons summarized posits in the region to about 42 per cent, whereas, above. the second largest banking organization in the By order of the Board of Governors, effective region, Union Bank and Trust Company, Grand January 25, 1974. Rapids (deposits of $313.5 million), holds 15.6 per cent of the total deposits. Approval of this Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Bucher, and Holland. Voting against this application would amplify the present size action: Governors Daane and Sheehan. disparity among the banking organizations in this area of the State, as well as increasing concentra- (Signed) CHESTER B. FELDBERG, tion. The Board believes that, were this trend [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 135 DISSENTING STATEMENT OF in the city of Muskegon in view of the fact that GOVERNORS DAANE AND SHEEHAN the remaining two banks approximate Bank's size. We find it difficult, therefore, to accept the We dissent from the majority's denial of this hypothesis that Applicant is a likely entrant into application. In our view, any slight anti-competi- the Muskegon-Grand Haven market and we contive effects that might result from the proposal are clude that there would be no significant elimination outweighed by the public benefits that would result of existing or potential competition as a result of from the increased competition and financial ex- the proposed acquisition. pertise that would accompany Applicant's entry The majority has apparently included as a basis into the Muskegon-Grand Haven banking market. for denial a concept of "regional dominance" by Bank appears to be a relatively conservative Applicant in a four-county area of western Michibanking organization that faces problems in the gan, contending that Applicant's presence in the areas of capital requirements and management Holland, Fremont and Grand Rapids market, in succession. Applicant's acquisition of Bank would conjunction with the proposed acquisition in Musstrengthen Bank's equity base, supplement present kegon, would give Applicant a disproportionate management, and significantly improve the com- share of the total deposits in the region and adpetitive climate in the Muskegon-Grand Haven versely affect competition there. We do not conmarket. sider the four-county region as a relevant area in We disagree with the majority's conclusion that which to assess the competitive impact of this significant existing competition would be elimi- proposal. Concentration ratios are only meaningful nated between Bank and Applicant's lead bank, when applied in a market context; and in our view, Old Kent, by consummation of the proposed ac- the proper geographic area is the Muskegon-Grand quisition. Old Kent and Bank compete in different Haven banking market. We are further concerned geographic areas; Grand Rapids and Muskegon are that this approach can lead to "gerrymandering" 35 miles apart and both communities are local on a case-by-case basis of areas within which economic and financial centers. Old Kent derives competitive effects are measured. We therefore an insignificant amount of deposits and loans from believe the majority's conclusion that the size the Muskegon area, representing less than 0.3 and disparity between Applicant and the next largest 1.8 per cent, respectively, of the deposits and bank holding company in the region will have loans in the relevant market. The loans that Old significantly adverse effects on competition in the Kent does obtain from the Muskegon area tend region to be an improper basis for denial. to be of a commercial and industrial nature and We believe the competitive implications of the of such size that they normally cannot be serviced proposed acquisition should be viewed in terms by the local Muskegon banks. Bank draws only of developments in Michigan's banking structure. an insignificant portion of the deposits in the Grand In recent years, Michigan has undergone signifi- Rapids banking market. Accordingly, we believe cant structural changes in its major markets as the only conclusion that can be drawn is that there bank holding companies have expanded from their is no significant existing competition between local markets into neighboring financial centers. Bank and Old Kent. We expect this movement to continue as it has While consummation of the proposed acquisi- in other States such as Florida, Texas and Mistion would eliminate the possibility of potential souri. In our judgment, Grand Rapids, as Michicompetition between Applicant and Bank, we do gan's second largest metropolitan area, would be not believe the development of potential competi- a likely target for a host of new entrants made tion to be likely, either by means of Applicant's up of the State's largest banking organizations. entry into the market de novo or by foothold Two major Michigan bank holding companies are acquisition. The population of the city of Muske- either presently or soon to be significant competigon has decreased 5 per cent in the past decade tors in that market. Entry into other banking marwhile there has been a 13 per cent population gain kets in western Michigan is also likely as other for the State. Other indicators such as the deposits organizations expand. Accordingly, we disagree per banking office ratio ($14.5 million for the with the majority's conclusion that consummation Muskegon market versus $15.3 million for the of the proposed acquisition would have adverse State) also suggest the market is not especially effects on competition in this area of western attractive for de novo entry. Further, no opportu- Michigan. nity exists for the acquisition of a smaller bank We find significant public benefits associated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 with this proposal. The financial and managerial amounting to $12.6 million as of year-end 1972. expertise of Applicant, as one of the State's lead- Company's activities are of the type determined ing organizations, should assist Bank in the ex- by the Board to be closely related to banking (12 pansion of its business and consumer loans. Ap- CFR 225.4 (a)(1)). plicant has already agreed to inject substantial Company maintains an office in Fulton County capital into Bank to bring it up to the level of which is part of the Atlanta market.2 That office other banks in its size class in Michigan. Further, had $0.4 million in loans outstanding as of De- Applicant will provide additional expertise to Bank cember 31, 1972, representing only 0.37 per cent in the areas of commercial and farm lending and of total direct consumer finance company loans international services. In addition, other banking outstanding in that area on that date. Bank and factors clearly add to the case for approval. its subsidiaries held direct consumer loans and For the foregoing reasons, we conclude that the consumer paper outstanding of $66.5 million benefits to the public to be derived from this deriving from the Atlanta area at year-end 1972, proposal outweigh any slight adverse effects on representing approximately 44 per cent of bank competition. Accordingly, we would approve this consumer credit in the Atlanta market. However, application. if consumer loans by consumer finance companies and credit unions are considered as well as those ORDERS UNDER SECTION 4(c)(8) OF by banks, Bank's market share roughly approxi- BANK HOLDING COMPANY ACT mates 17 per cent, and Company's 0.1 per cent.3 Hence, consummation of the proposed transaction THE CITIZENS AND SOUTHERN NATIONAL would not significantly increase Applicants' mar- BANK, CITIZENS AND SOUTHERN HOLD- ket share in the Atlanta area. ING COMPANY, ATLANTA, GEORGIA Applicants state that the Georgia consumer finance company licensing authority is unlikely in ORDER DENYING ACQUISITION OF ISON FINANCE the near future to grant licenses to new consumer CORPORATION finance offices due to a backlog of license applica- The Citizens and Southern National Bank and tions and contend that therefore their ability to Citizens and Southern Holding Company, its sub- expand their consumer loan activities through de sidiary, both of Atlanta, Georgia, and both bank novo means is restricted. Applicants' contention holding companies within the meaning of the Bank notwithstanding, Bank and its indirect banking Holding Company Act, have applied for the subsidiaries are already present in the Atlanta Board's approval, under § 4(c)(8) of the Act and market and have substantial means available to § 225.4(b)(2) of the Board's Regulation Y, to increase their consumer lending activities in that acquire shares of Ison Finance Corporation area. However, any adverse effect consummation ("Company"), Atlanta, Georgia. of the proposed transaction may have on future Notice of the applications, affording opportunity competition in consumer lending in the area would for interested persons to submit comments and not be significant in view of the fact that individual views on the public interest factors, has been duly borrowers in the Atlanta area may seek consumer published (38 Federal Register 22826). The time loans from more than 80 consumer finance comfor filing comments and views has expired, and panies with 249 offices, 68 State-chartered credit none has been timely received. unions, and 56 commercial banks in the area. The Citizens and Southern National Bank The Macon office of Company held $1.3 million ("Bank") is the largest banking organization in in outstandings at year-end 1972. Only $0.4 milthe State of Georgia and in the Atlanta market lion of that total represented direct consumer area, with total market deposits of $1.3 billion.1 loans, and the remainder consisted of purchased Company is engaged in the consumer finance consumer paper. Company originated approxiand consumer sales finance business, operating mately 2 per cent of total direct consumer loans seven offices in Florida, seven in Alabama, two outstanding held by consumer finance companies in North Carolina, two in Georgia, one in South Carolina, and one in Louisiana. It had outstandings 2The Atlanta market is approximated by Fulton, DeKalb, Gwinnett, Clayton, and Cobb Counties. banking data are as of December 31, 1972. Included in 3 These market shares are computed from a total that includes these figures are the deposits of Bank and subsidiaries, includ- bank purchases of consumer paper but does not include coning "five per cent affiliates" of Citizens and Southern Holding sumer finance company purchases of consumer paper, data for Company. which is unavailable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 137 in the Macon area at year-end 1972 (roughly 1 shareholders, but apparently not the sole shareper cent4 of total consumer credit5 outstanding in holders, of Company. The covenants are to the the area). Seven branches of Bank located in Bibb effect that the respective executives refrain from County, in which the City of Macon is located, competing with Applicants during the terms of held $9.8 million in consumer credit outstanding their employment. The Board has found that such as of that date, representing 49 per cent of bank covenants are reasonable in scope, duration, and consumer credit in that County and approximately geographic area. Two employment agreements, 24 per cent4 of total consumer credit outstanding however, contain additional covenants to the effect in that County. Bank apparently ranks thereby as that the respective executives would refrain from the largest consumer lender in the Macon area. competing with Applicants for an additional seven It is estimated that the aggregate market shares years after termination of employment. The record of the four largest consumer lenders in the Macon does not suggest that the executives who would area amount to 51 per cent.4 Although in another enter into such covenants would be privy to inforcontext the amount of existing competition that mation that could be characterized as trade or would be eliminated by approval of the applica- business secrets of Company; nor does it suggest tions may not be considered significant, where, that the duration of such covenants would be as here, an applicant is already dominant in a necessary to protect the good will of Company. concentrated market, its elimination of any inde- Courts have repeatedly refused to enforce such pendent competitive alternative is viewed as a post-employment covenants entered into by emsignificant adverse effect.6 ployees of consumer finance companies where As Applicants presently do not compete in any such covenants are of greater duration than is geographic market in which Company competes necessary to protect a legitimate interest of the outside the State of Georgia, consummation of the employer.7 In addition, where a post-employment proposed transaction would not adversely affect covenant binds a management employee whose existing competition in those markets; nor would duties are not such as to bring him into substantial future competition in those markets be adversely contact with its customers, the covenant, in the affected as a substantial number of competitors are absence of protection of trade or business secrets, represented in each of those markets, and the would not be enforced by the courts.8 Further, proposed transaction may properly be charac- even if the covenants are viewed as ancillary to terized as a "foothold entry" into those markets. the proposed purchase of shares of Company by In its consideration of these applications, the Applicant, the Board finds that the durations of Board has examined certain covenants contained the covenants are longer than necessary to protect in five-year employment agreements that, if the the good will proposed to be acquired. Since the transaction is consummated, would be entered into Board finds that the respective post-employment with certain principal executives who are also covenants in the instant case are not necessary to protect a legitimate interest of Applicants as purchasers or as employers, the Board concludes that such covenants are in restraint of trade and there- 4This market share is computed from a total that includes bank purchases of consumer paper, but does not include fore constitute a significant adverse factor in its consumer finance company purchases of consumer paper, data consideration of the applications. for which is unavailable. 5The phrase "total consumer credit" as used herein includes There is no evidence in the record indicating only direct consumer loans originated by banks, consumer that consummation of the proposed transaction finance companies, and credit unions, and retail consumer would result in any unfair competition, conflicts installment paper purchased and held by banks. 6See The Stanley Works v. Federal Trade Commission, 469 of interests, or unsound banking practices. It is F. 2d 498 (2d Cir. 1972), cert, denied, 412 U.S. 928 (1973). The Conference Report accompanying the 1970 Amendments to the Bank Holding Company Act states: "Where a bank holding company seeks to engage in related activities through 7See United Loan Corporation of Tampa v. Weddle, 11 acquisition, in whole or in part, of a going concern, the So. 2d 629 (Fla. 1955); Tawney v. Mutual System of Maryelimination of existing competition will be an important nega- land, 47 S. 2d 327 (Md. 1946); Securities Acceptance Cortive factor, for other subsidiaries of the bank holding company, poration v. Brown, 106 N.W. 2d 456 (Neb. 1960); Personal or the company itself, may already be providing the products Finance Co. of Lincoln v. Hynes, 265 N.W. 541 (Neb. 1936); and services in the market served by the company to be Household Finance Corporation v. Sutton, 43 S.E. 2d 144 acquired. In such circumstances, where the possible benefits (W. Va. 1947). to the public of bank holding company activity are already 8Harry Livingston, Inc. v. Macher, 54 A. 2d 169 (Del. being provided, the elimination of an independent competitive 1947); Menter Co. v. Brock, 180 N.W. 553 (Minn. 1920); alternative will weigh heavily in the balance against approval." Milwaukee Linen Supply Co. v. Ring, 246 N.W. 567 (Wise. H.R. Rep. No. 91-1747, 91st Cong., 2d Sess., 17 (1970). 1933); Mutual Loan Co. v. Piece, 65 N.W. 2d 405 (la. 1954). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 anticipated that Company's affiliation with Appli- that a particular covenant not to compete violates cants would result in the removal of certain limi- the public interest. A covenant not to compete, tations that the management of Company has im- by definition, is anticompetitive, and, in my judgposed upon the amounts that may be loaned to ment, that adverse effect cannot be justified as individual consumers in single transactions and reasonable. For reasons stated more fully in my upon the types of loans made by Company. Ap- dissents to the application of Orbanco, Inc., to plicants have stated that, as their subsidiary, acquire Far West Security Company (59 Federal Company would make loans to individual credit- Reserve BULLETIN 368-369 (1973)), and the apworthy customers up to the legal limits permitted plication of CBT Corporation to acquire General by State law and would provide mobile home, Discount Corporation (59 Federal Reserve BULsmall appliance, and second mortgage loans, in LETIN 471 (1973)), it is my view such covenants addition to the types of consumer loans presently serve to decrease competition and should not remade by Company. These increases in service and ceive the general sanction of the Board that is the indirect increase in competition that would implied by the analysis that the Board has given result therefrom, as well as the increased avail- the particular covenants in this case. I would deny ability of financial resources and thereby lendable these applications irrespective of the duration of funds that the proposed affiliation is expected to the covenants. provide, constitute benefits to the public. However, in the Board's judgment, these expected IRWIN UNION CORPORATION, benefits do not outweigh the adverse effects upon COLUMBUS, INDIANA competition noted above. ORDER APPROVING ACQUISITION OF IRWIN UNION Accordingly, the applications are hereby de- CREDIT INSURANCE COMPANY nied. By order of the Board of Governors, effective Irwin Union Corporation, Columbus, Indiana, January 2, 1974. a bank holding company within the meaning of the Bank Holding Company Act, has applied for Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and the Board's approval, under § 4(c)(8) of the Act not voting: Governor Daane. and § 225.4(b)(2) of the Board's Regulation Y, (Signed) CHESTER B. FELDBERG, to acquire all of the voting shares of Irwin Union [SEAL] Secretary of the Board. Credit Insurance Company, Phoenix, Arizona ("Company"), a company that will engage de novo in the underwriting, as reinsurer, of credit CONCURRING STATEMENT OF life and credit accident and health insurance in GOVERNOR BRIMMER connection with extensions of credit by Applicant's banking subsidiary. Such activities have I would deny the applications by The Citizens been determined by the Board to be closely related and Southern National Bank and Citizens and to banking (12 CFR 225.4(a)(10)). Southern Holding Company to acquire Ison Fi- Notice of the application, affording opportunity nance Corporation. My decision is based on the for interested persons to submit comments and existence of covenants not to compete contained views on the public interest factors, has been duly in the proposed employment contracts between published (38 Federal Register 20299 and 21825). Applicants and principal executives of Ison. Two The time for filing comments and views has exindividuals have agreed, for a seven-year period pired, and none has been timely received. following termination of their employment, not to Applicant controls one bank with total deposits be associated with a competitor of Ison. In effect, of $120.5 million, representing 0.9 per cent of such action would preclude the possibility of these total deposits in commercial banks in Indiana, and individuals undertaking to provide an alternative is the 18th largest banking organization in the source of consumer finance services in those mar- State. (All banking data are as of December 31, kets in which Applicants would offer such serv- 1972.) ices. The majority has considered whether these Company will be formed under Arizona law as particular covenants are reasonable in duration a limited capital stock life insurance company. As and—finding that they are not—has concluded that Company will be qualified to underwrite insurance the covenants are not in the public interest. In my directly only in Arizona, its activities will be view, such an analysis is not necessary to conclude limited to acting as reinsurer of credit life and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 139 credit accident and health insurance policies made made available by Applicant's banking subsidiary available in connection with extensions of credit will reduce the rates for credit life insurance and by Applicant's banking subsidiary. Such insurance credit accident and health insurance by amounts will be directly underwritten by an insurer quali- ranging between 5 and 15 per cent depending upon fied to underwrite in Indiana and will thereafter the specific coverage being offered. The Board be assigned or ceded to Company under a reinsur- believes the reduced cost of credit life and credit ance agreement. Certain larger policies will be accident and health insurance is procompetitive "retroceded" or "reassigned" in part back to the and is in the public interest. The Board concludes insurer by Company so as to avoid Company being that such public benefits outweigh any possible exposed to liabilities in excess of those permitted adverse effects of approval of the application. by Arizona law.1 Based upon the foregoing and other consid- Credit life and credit accident and health insur- erations reflected in the record, the Board has ance is generally made available by banks and determined that the balance of the public interest other lenders and is designed to assure repayment factors the Board is required to consider under § of a loan in the event of death or disability of 4(c)(8) is favorable. Accordingly, the application a borrower. Applicant also proposes to underwrite is hereby approved. This determination is subject joint credit life insurance. The Board has pre- to the conditions set forth in § 225.4(c) of Reguviously permitted such insurance to be underwrit- lation Y and to the Board's authority to require ten when the credit extension was dependent upon such modification or termination of the activities the income of both the husband and wife.2 The of a holding company or any of its subsidiaries Board finds that joint credit life insurance, like as the Board finds necessary to assure compliance other forms of credit life insurance, is offered in with the provisions and purposes of the Act and connection with an extension of credit and is the Board's regulations and orders issued theredesigned to assure repayment of an extension of under, or to prevent evasion thereof. credit in the event of death of a co-signer or The transaction shall be made not later than co-maker of a note. Since each of the co-signers three months after the effective date of this Order, or co-makers may be individually responsible for unless such period is extended for good cause by repayment of the credit extension, the Board finds the Board or by the Federal Reserve Bank of insurance covering each to be directly related to Chicago. an extension of credit. Accordingly, the Board has By order of the Board of Governors, effective concluded that the sale and underwriting of joint November 12, 1973. credit life insurance is directly related to an extension of credit when both of the insured parties are Voting for this action: Chairman Burns and Governors Mitchell, Daane, Brimmer, Bucher, and Holland. Absent and co-makers or co-signers of the note issued in not voting: Governor Sheehan. connection with the extension of credit. (Signed) CHESTER B. FELDBERG, In connection with its addition of credit life [SEAL] Secretary of the Board. underwriting to the list of permissible activities for bank holding companies the Board stated: To assure that engaging in the underwriting of credit life and credit accident and health insurance can reasonably be expected LLOYDS BANK LIMITED, to be in the public interest, the Board will only approve LONDON,ENGLAND applications in which an applicant demonstrates that approval will benefit the consumer or result in other public benefits. Normally such a showing would be made by a projected ORDER APPROVING RETENTION OF INVESTMENT reduction in rates or increase in policy benefits due to bank, IN BALFOUR, WILLIAMSON, INC., EXPORT CREDIT holding company performance of this service. AND MARKETING CORPORATION, AND EXPORT Applicant has stated that Company and the direct CREDIT CORPORATION AND DISAPPROVING REunderwriter in Indiana which issues the credit life TENTION OF INVESTMENT IN DRAKE AMERICA and credit accident and health insurance policies CORPORATION AND DRAKE AMERICA CORPORATION (P.R.) 1 The.maximum amounts which may be insured by a limited Lloyds Bank Limited, London, England ("Lloyds capital stock life insurance company under Arizona law are Bank"), has applied for the Board's permission $3,000 on any one life and $5,000 on any total disability claim. 2 Application of Northwest Bancorporation to acquire Banco to retain indirectly all of the voting shares of Credit Life Insurance Company (38 F.R. 14205). Balfour, Williamson, Inc. New York City Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 ("BW"),1 and to retain indirectly approximately capital stock of ECC, Drake and Drake P.R.4 46.6 per cent of the voting shares of Export Credit ECMC is a holding company and does not actively and Marketing Corporation, New York City engage in a trade or business for its own account. ("ECMC"), and of ECMC's wholly-owned sub- ECC finances exports of goods manufactured in sidiaries Export Credit Corporation, New York the United States to credit-worthy foreign buyers City ("ECC"), Drake America Corporation, New with credit terms of up to five years. Most of York City ("Drake"), and Drake America Cor- ECC's export transactions are insured by the poration (P.R.), New York City ("Drake P.R."), Foreign Credit Insurance Association or through if Lloyds Bank becomes a bank holding company.2 Eximbank guarantees. Lloyds Bank has received the Board's permis- Drake is an export management company which sion to become a bank holding company through arranges the foreign sales of products manufacthe acquisition of up to 100 per cent of the voting tured in the United States by forming a foreign shares of First Western Bank & Trust Company, distribution network for such products. Drake Los Angeles, California. Upon consummation of takes nominal title to the goods and invoices its that transaction, Lloyds Bank will be a foreign foreign agents or distributors at the manufacturer's bank holding company within the meaning of § cost plus a commission and interest on any credit 225.4(g)(l)(iii) of Regulation Y. extended. Drake's services principally consist of BW is principally engaged in financing imports setting up and evaluating distribution networks, and exports to and from the United States. BW processing firm orders it obtains from foreign represents foreign buyers of goods manufactured buyers with the manufacturer, and of expediting or produced in the United States and temporarily shipments for the manufacturer, thus, functioning, finances their purchases through a line of credit in effect, as a domestic manufacturer's export or on open account. In some cases, BW performs department. Although Drake occasionally arranges a similar function between buyers and sellers financing as an accommodation to foreign buyers, within a foreign country or between two foreign this activity is considered as incidental to its pricountries. Pursuant to its financing the purchases mary export management services. of foreign buyers, BW will also often arrange Drake P.R. manages the export and distribution directly the shipment of goods from the United in Puerto Rico and other United States possessions States. BW also finances imports by United States of goods manufactured in the United States. The firms and corporations from foreign manufacturers nature of its activities are identical to those of and suppliers. Import financing is normally done Drake described above. pursuant to a credit agreement between BW and Section 4(c)(9) of the Act provides that the the domestic purchaser. Such financing sometimes prohibitions of section 4 shall not apply to the includes loans or credit for working capital pur- investments or activities of foreign bank holding poses.3 companies that conduct the greater part of their ECMC owns all of the issued and outstanding business outside the United States, if the Board by regulation or order determines that, under the circumstances and subject to the conditions set forth in the regulation or order, the exemption would not be substantially at variance with the Balfour, Williamson, Inc., New York City, is a whollyowned subsidiary of Balfour, Williamson & Co., Ltd., Lon- purposes of the Act and would be in the public don, England, which in turn is a wholly-owned subsidiary of interest. Lloyds & Bolsa International Bank, Ltd., London, England, In § 225.4(g)(2)(iii) of Regulation Y, the Board which is wholly-owned by Lloyds Bank. 2Export Credit and Marketing Corporation, New York City, has determined that a foreign bank holding comis a wholly-owned subsidiary of London America Finance pany may own or control voting shares of any Corp., Ltd., London, England ("LAFC"). Forty per cent of company that is not engaged, directly or indirectly, the outstanding voting shares of LAFC are owned by Lloyds & Bolsa International Bank, Limited, London, England, which in any activities in the United States except as shall is wholly-owned by Lloyds Bank. An additional 40 per cent be incidental to the international or foreign busiof the outstanding voting shares of LAFC are owned by ness of such company. This "incidental test" is Industrial & Commercial Finance Corp., London, England, 15.6 per cent of whose voting shares are owned by Lloyds Bank. Consequently, Lloyds Bank indirectly owns approximately 46.6 per cent of Export Credit and Marketing Corpora- 4 ECMC also owns all of the issued and outstanding capital tion, and its wholly-owned subsidiaries. stock of Kimstone International Corporation, Ltd., a Canadian 3 As a result of a loan default by two importer clients, BW corporation ("Kimstone"), which engages in no activities in is temporarily operating three small retail stores in the Boston the United States. Lloyds may retain its indirect investment area. in Kimstone under § 2(h) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 141 also used by the Board to determine the permissi- public interest, except as noted below, and so long ble scope of investments and activities in the as ECMC does not invest in more than 5 per cent United States for Edge Act corporations under of the voting shares, or acquire control over the section 25(a) of the Federal Reserve Act and the management or policies, of any company except Board's Regulation K and for domestic bank with prior Board approval. holding company investments or activities in the The indirect investment by Lloyds Bank in the United States under § 4(c)(13) of the Bank Holding shares of ECMC's wholly-owned subsidiaries Company Act and § 225.4(f) of Regulation Y. In Drake and Drake P.R. are investments that would the Board's judgment, the activities of BW, except not be permissible for a domestic bank holding as noted below, and of ECC are consistent with company under § 4(c)(8) of the Act since Drake the scope of activities permitted to Edge Act and Drake P.R. engage in commercial nonfinancorporations under § 211.7(d)(l)(ii) of Regulation cial activities, which are not closely related to K5 and domestic bank holding companies under banking or managing or controlling banks as to § 4(c)(13) of the Bank Holding Company Act and be a proper incident thereto. Lloyds Bank has § 225.4(f)(1) of Regulation Y. Accordingly, in the sought an exemption for ECMC's investments in Board's judgment the indirect investments by Drake and Drake P.R. under § 4(c)(9) of the Act Lloyds Bank in BW and ECC are exempt under and under § 225.4(g)(2)(iv) of Regulation Y on § 225.4(g)(2)(iii) of Regulation Y and are thus the basis that Drake and Drake P.R. principally consistent with the purposes of the Act and in the engage in the United States in activities "facilitatpublic interest. ing" transactions in international or foreign com- The Board's approval of the retention of Lloyds merce.6 In the Board's judgment, however, the Bank of its investment in BW is, however, subject activities of Drake and Drake P.R. do not meet to the conditions that, within two years from the the conditions for exemption set forth in § date as of which Lloyds Bank becomes a bank 225.4(g)(2)(iv) of Regulation Y. The term "facilholding company, BW cease engaging in the ac- itating" is intended by the Board to cover internativity of arranging directly the shipment of goods tional or foreign banking activities, such as those from the United States and BW cease operating carried on by New York "investment compathree small retail stores in the Boston area, which nies,"7 and is not intended to include nonbanking BW is currently operating pursuant to a loan activities such as the export management activities default by an importer client. Performance of these of Drake or Drake P.R. In the Board's judgment, activities would give Lloyds Bank a competitive Drake and Drake P.R. are essentially engaged advantage over domestic bank holding companies. within the United States in a domestic commercial While an Edge Act corporation does not have the business even though that business concerns interstatutory power to engage in making working national transactions. capital loans to importers, other banking and non- The Board does not believe that an exception banking subsidiaries of a domestic bank holding is otherwise appropriate since it does not appear company could engage in making such loans and the public benefits which are alleged for the retenthus BW's performance of this activity under § tion of Drake and Drake P.R., namely the promo- 4(c)(9) of the Act would not be substantially at tion of United Stated exports, would outweigh the variance with the purposes of the Act and would policies of the Bank Holding Company Act rebe in the public interest. garding the separation of banking and commerce. In the Board's judgment, ECMC's investment activities as described by Lloyds Bank are consistent with the purposes of the Act and in the 6Section 225.4(g)(2)(iv) of Regulation Y provides, with prior Board consent, that a foreign bank holding company may own or control voting shares of any company principally engaged in the United States in "financing or facilitating transactions in international or foreign commerce." Since Lloyds Bank has 5Section 211,7(d)(l)(ii) of Regulation K provides as follows: indicated that Drake and Drake P.R. engage only incidentally § 211.7(d): "It will ordinarily be considered incidental to the in "financing transactions," exemption can only be sought under "facilitating transactions in international or foreign international or foreign business of a [Edge] Corporation for commerce." it to engage in the following transactions in the United States: 7See the Board's Order of February 7, 1972, approving (1) Finance the following types of transactions, including Banque Nationale de Paris' retention of its investment in all payments or costs (but not expenses in the United States of of the voting shares of French American Banking Corporation, an office or representative therein) incident thereto: . . . (ii) a New York "investment company" chartered under Section the importation into or exportation from the United States of XII of the New York State Banking Law (58 Federal Reserve goods.'' BULLETIN 312). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 Accordingly, on the basis of the foregoing and purposes of the Act and the Board's regulations other considerations reflected in the record, the and orders issued thereunder, or to prevent evasion Board hereby denies Lloyds Bank's request for thereof; and to revocation by the Board if the facts exemption pursuant to § 4(c)(9) to retain its indi- upon which it is based change in any material rect investments in Drake and Drake P.R. respect. Based upon the foregoing and other consid- By order of the Board of Governors, effective erations reflected in the record, and based upon January 9, 1974. the assumption that Lloyds Bank will become a Voting for this action: Vice Chairman Mitchell and Goverbank holding company through the acquisition of nors Brimmer, Sheehan, and Holland. Absent and not voting: voting shares of First Western Bank and Trust Chairman Burns and Governors Daane and Bucher. Company of Los Angeles, California, in accord- (Signed) CHESTER B. FELDBERG, ance with its application approved by the Board, [SEAL] Secretary of the Board. the Board has made the following determinations: 1. Pursuant to § 4(c)(9) of the Act, the Board THE CHASE MANHATTAN CORPORATION, has determined that the continued indirect owner- NEW YORK, NEW YORK ship by Lloyds Bank of all of BW's voting shares, ORDER DENYING ACQUISITION OF DIAL is exempt from the prohibitions of section 4 of FINANCIAL CORPORATION the Act under § 225.4(g)(2)(iii) of Regulation Y, subject to the following conditions: The Chase Manhattan Corporation, New York, (a) That BW cease to engage in the activity of New York, a bank holding company within the arranging directly the shipment of goods from the meaning of the Bank Holding Company Act of United States within two years from the date as 1956, has applied for the Board's approval, under of which Lloyds Bank becomes a bank holding § 4(c)(8) of the Act and § 225.4(b)(2) of the company; and Board's Regulation Y, to acquire all of the voting (b) That BW cease operating three retail stores shares of Dial Financial Corporation, Des Moines, in the Boston area within two years from the date Iowa ("Dial"). Dial through its subsidiaries enas of which Lloyds Bank becomes a bank holding gages in the activities of making direct consumer company. installment loans, secured and unsecured, to indi- 2. Pursuant to § 4(c)(9) of the Act and § viduals (in most instances, by direct customer 225.4(g)(3) of Regulation Y, the Board approves contact, in some instances, by mail); selling credit the continued indirect ownership by Lloyds Bank life, and credit health and accident insurance poliof approximately 46.6 per cent of the voting shares cies to those individuals; underwriting (in Missouri of ECMC, so long as ECMC does not invest in only), or re-insurance of, such insurance; selling more than 5 per cent of the voting shares, or to those individuals insurance on property (other acquire control over the management or policies, than automobiles) in which a subsidiary of Dial of any company except with prior Board approval, has a security interest; purchasing installment sales and subject to the following condition: that Lloyds finance contracts from retailers; and providing data Bank dispose of its indirect 46.6 per cent interest processing services, including computerized genin the voting shares of Drake and Drake P.R. eral accounting services, computerized billing within two years from the date as of which it services, and computerized delinquent list becomes a bank holding company. preparation, and the use of computer time, to its 3. Pursuant to § 4(c)(9) of the Act, the Board subsidiaries and other consumer credit companies. has determined that the continued indirect owner- Notice of the application, affording opportunity ship by Lloyds Bank of approximately 46.6 per for interested persons to submit comments and cent of the voting shares of ECC is exempt from views on the public interest factors, has been duly the prohibitions of section 4 of the Act under § published (38 Federal Register 26832). The time 225.4(g)(2)(iii) of Regulation Y. for filing comments and views has expired; and The foregoing determinations are subject to the the Board has considered all comments received Board's authority to require reports by, and make in light of the public interest factors set forth in examinations of, holding companies and their § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). subsidiaries; to require such modification or ter- Applicant, a multi-bank holding company, is, mination of the activities of a holding company based upon domestic deposits, the largest banking or any of its subsidiaries as the Board finds neces- organization in New York State, and the second sary to assure compliance with the provisions and largest nationally. Applicant controls The Chase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 143 Manhattan Bank, N.A., New York, New York The 1970 Amendments to the Act require that ("Bank"), and six other commercial banks which, the Board, in acting on an application under § collectively, hold $16.4 billion of domestic de- 4(c)(8), consider whether the performance of a posits,1 representing 15 per cent of total deposits particular activity by an affiliate of a bank holding in commercial banks in New York State. Appli- company "can reasonably be expected to produce cant's total consolidated assets amount to $30.8 benefits to the public, such as greater convenience, billion; assets of Bank represent 99 per cent ($30.4 increased competition, or gains in efficiency, that billion) of this total.2 During the four-year period outweigh possible adverse effects, such as undue ending December 31, 1972, Applicant's consoli- concentration of resources, decreased or unfair dated assets increased by 60 per cent, consolidated competition, conflicts of interests, or unsound net income by 50 per cent, domestic and foreign banking practices." This balancing test necessideposits by 50 per cent, and total equity capital tates a positive showing of public benefits, outby 23 per cent. Applicant has acquired a number weighing the "possible" adverse effects of any of firms during this period, including four com- proposed acquisition, before an application may mercial banks and a mortgage company. Bank has be approved. Applicant must bear this burden. acquired during this period a substantial mortgage The relevant service line to be considered in company and a large factoring company. Appli- evaluating the competitive effects of this proposal cant's nonbanking activities include mortgage is the making of personal installment loans. As banking, commercial financing, and the provision noted, about 93 per cent of Dial's outstandings of investment advice and economic information. were in this service line at year-end, 1972. Appli- It appears that Applicant is one of the leading cant, through its banking subsidiaries, makes perfinancial institutions in the United States and is sonal installment loans in various local markets experiencing significant growth, both through ac- in New York State. The Board has previously quisitions and de novo expansion. considered whether consumer finance companies Dial is a profitable enterprise and one of the compete with commercial banks in the area of nation's major consumer finance companies. It personal loans to individuals, and has concluded maintains 461 offices in 33 States.3 Dial held, as that such competition does exist.4 Dial presently of December 31, 1972, total gross receivables of does not operate any office in the local markets $308.6 million and ranked as the twenty-first larg- served by Applicant's subsidiary banks. However, est independent finance company in the nation. Dial does solicit moderate-sized personal loans by Ninety-three per cent of Dial's total volume of mail and, as of December 31, 1972, thereby held receivables outstanding represents direct cash receivables of approximately $143,000 deriving loans to individuals on an installment basis. In from the service areas of Applicant's subsidiary addition to engaging in certain insurance sales and banks. The competition existing between Appliunderwriting activities, Dial has developed a data cant and Dial that would be eliminated upon conprocessing system linking its branch offices to a summation of the proposed transaction would be computer center ("SWIFT"). Dial has aggres- only slight. sively marketed SWIFT to other consumer finance With respect to the question of whether concompanies, and, as of December 31, 1972, nine summation of the proposal would eliminate any consumer finance companies, including Dial, significant competition in the future, the Board operating more than 5,000 consumer finance finds that Dial and Applicant are aggressive ex-, offices, approximately 25 per cent of the total pansion-minded concerns. Dial opened 25 de novo number of consumer finance offices in the United offices in 1972, and, in late 1973, estimated that States, utilized or had contracted to utilize SWIFT. it would open a total of 37 such offices in 1973. Only two other corporations compete with Dial Irrespective of the instant proposal, Dial contemin this line of commerce, and Dial apparently is plates opening 35 to 40 new offices in 1974. With the leading supplier in the market for such com- offices in Pennsylvania, Connecticut, Massachuputer services. setts, New Hampshire, and Rhode Island, and no 4Order dated August 3, 1973, Denying Acquisition of Public 1 Deposit data as of June 30, 1973. Loan Company by Bankers Trust Corporation, New York, New 2Data as of December 31, 1972. York, 38 Federal Register 21822 (1973), 59 Federal Reserve 3Data as of December 7, 1973. BULLETIN 694, 695 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 office in New York State, Dial is considered one irrespective of the effect on particular markets, it of the most likely potential entrants into the is clear to the Board that consummation of the various local markets in New York State. A recent proposal would eliminate a substantial possibility increase in the maximum loan limit for consumer that Applicant and Dial would compete in the finance companies in New York State enhances future. The elimination of such potential competithe probability of such entry. tion constitutes an adverse factor under § 4(c)(8) Bank is considered one of the leading retail weighing against approval of the application. banks in the nation and operates 185 branch offices In addition to the above possible adverse effects in New York State, having opened eight such of this proposal, Congress has required the Board offices in 1972. Bank also opened 15 branch offices to consider under § 4(c)(8) whether bank holding abroad in 1972 and has announced plans to open company acquisitions create a danger of undue 30 consumer finance-type offices in the United concentration of resources. Congress has pointed Kingdom.5 As of December 31, 1972, Bank to the dangers involved, particularly those involvranked as the second largest consumer lender in ing concentration of power relating to money and the New York City market,6 having made 6.6 per credit, and has directed the Board to consider all cent of the total personal loans outstanding in the reasonable ramifications when applying this aspect market, and ranked as the fourth largest supplier of the standards of § 4(c)(8). It is the Board's of check credit, a form of personal loan, in that judgment that approval of this application, involvmarket, with an estimated share of 12 per cent. ing acquisition, by one of the nation's largest bank Applicant has demonstrated its ability to establish holding companies, of a major consumer finance a wide network of offices, to penetrate distant company with a large national network of offices markets, and to compete successfully in consumer and a commanding position in the market for loan markets. provision of data processing services to the in- Applicant thus possesses the resources and ex- dustry, involves the issue of concentration in pertise to enter the industry outside of New York credit-granting resources that was within the intent State either de novo or through a foothold acquisi- of Congress in enacting the 1970 Amendments. tion and, absent the proposed acquisition, may be While the matter is not free of doubt and is one expected to do so. Start-up costs and risks involved on which reasonable differences of judgment may in such entry are easily manageable by an organi- occur, the Board has concluded that, at a minization possessing the resources commanded by mum, this factor weighs against approval of the Applicant. application. It thus appears likely that Applicant would, Applicant has made an attempt to meet its absent this proposal, expand to compete with Dial burden of establishing public benefits which outin the future, either de novo or through means of weigh the adverse effects noted above. One such a foothold entry. On the basis of the facts of record public benefit is said to be an expansion of the it also appears likely that Dial would, absent this financial services offered by Dial to include the proposal, expand to compete with Applicant in the making of small business loans, farm loans, and future. Chase Manhattan Bank is an important first and second mortgage loans. The record does source of personal installment loans in the New not show to what extent such services are presently York City market; and while Dial does not have competitively unavailable in the markets served by a large share of personal installment loans in major Dial, but it does appear that many consumer fimetropolitan areas, it does have estimated market nance companies are diversifying into the provishares in smaller metropolitan areas and rural sion of a wider range of financial services. Dial, markets ranging from 3.1 to more than 16.0 per which has demonstrated its ability to respond to cent. With respect to any individual market the competitive challenges, would appear to be likely Board cannot determine that such entry is probable to so diversify irrespective of its affiliation with or that any such market is so concentrated that Applicant. the elimination of the possibility of such entry Nor would it appear likely that affiliation with would have substantially adverse effects; however, Applicant would make credit and capital more readily available to Dial. From 1965 to 1972, while the amount of consumer loans originated by 5"Local Banking on an International Scale," Business the consumer finance industry increased by 48 per Weekl06, 107 (September 15, 1973). cent, the amount of personal loans originated by 6This market is approximated by the five boroughs of New York City plus Nassau and Westchester Counties. Dial increased 103 per cent. Such increase was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 145 15.8 per cent in 1972, while loans originated by Voting for this action: Chairman Burns and Governors the industry increased by only 10.9 per cent. In Mitchell, Brimmer, Bucher, and Holland. Voting against this action: Governors Daane and Sheehan. 1972, Dial's return on investment was 15 per cent, comparing favorably with an industry average of (Signed) CHESTER B. FELDBERG, 12 per cent. The majority of Dial's short term [SEAL] Secretary of the Board. borrowings come from the issuance of commercial paper, and such paper carries the highest rating. DISSENTING STATEMENT OF As of year-end 1972, Dial had only utilized $4.5 GOVERNORS DAANE AND SHEEHAN million of its outstanding lines of credit of $61 million. It thus does not appear that affiliation with In our view, the reasonably expected benefits Applicant may reasonably be expected to signifi- to the public from this proposal considerably outcantly increase the availability of capital or reduce weigh any possible adverse effects. We would Dial's cost of funds. therefore approve the application. Applicant has cited as a public benefit its plans We find, as does the majority, that consummato open 150 de novo offices of Dial in the next tion of the proposed transaction would have no three years. However, irrespective of the proposed significant adverse effects with respect to existing affiliation, it appears that Dial would plan to open competition. We also agree that, absent the proa substantial number of new offices each year. In posal, Applicant and Dial could possibly expand view of this capability absent the transaction, the to compete in some markets across the United Board does not view the proposed expansion as States. However, we ascribe a lesser degree of a significant public benefit arising from consum- probability and significance to this occurring and mation of the proposal. little adversity in the elimination of this possibility. Applicant has also proposed to implement an We do not lightly dismiss Applicant's assertion experimental program under which personal loans that it is not "economically feasible or practicable would be made with interest rates reflecting the for it to enter this field de novo." For Chase, as degree of credit risk assumed. It has proposed a for many institutions both large and small, the modest program affecting 10 per cent of the ac- shortage is often not opportunity or capital but a counts at 10 per cent of the offices of Dial. The shortage of competent managers. The majority's Board regards reduction in rates in the consumer prejudgment that Chase will now turn to a series finance industry as being an appreciable public of small acquisitions or de novo entries to achieve benefit. However, it appears that Dial has already its objectives in the consumer finance field outside instituted such a program on a limited basis with- of New York State is conjectural at best; it could out Applicant's aid and that Dial possesses the also be conjectured that it might decide to abandon financial resources to expand the program if market this market for other opportunities. conditions are favorable. Applicant's proposal is Dial is presumed by the Board's majority to be not considered substantially different in effect from equally aggressive and entrepreneurial on its own the policy implicit in action already taken by Dial. rather than in combination with Chase. Dial's While the proposed acquisition would clearly record, while excellent, does not seem to support lead to some public benefits, there is little indica- that conclusion. The Board's majority accepts the tion that the above or other claimed benefits are assertion that Dial, on its own, will open 150-200 not likely to be obtained in the absence of the offices over the next five years. Yet, in the past acquisition. Accordingly, the Board concludes that five years, Dial had a net gain of 51 offices. On overall public benefits asserted by Applicant do the other hand, the Applicant has committed itself not outweigh the above-described adverse effects. to open 150 new offices of Dial in the next three Based upon the foregoing and other consid- years. Applicant's commitment would be an assuerations reflected in the record, the Board con- rance, as against at best a questionable possibility, cludes that the public interest factors the Board of a substantial expansion of Dial's activities and is required to consider under § 4(c)(8) do not competitive presence and constitutes significant outweigh the probable adverse effects, and that the public benefit particularly in view of the market application should be denied. shares held by the four largest members of the Accordingly, the application is herewith denied. industry. By order of the Board of Governors, effective In the vast majority of geographic markets in January 30, 1974. which it competes, Dial accounts for less than 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 per cent of direct consumer installment loans. In some business elements can balance costs and only 12 markets, none of which includes any major perhaps losses in others. metropolitan area, does Dial's market share exceed Furthermore, expansion or de novo entry in the 2 per cent. Its largest market share in those 12 consumer finance business can be quite difficult approximated 4.5 per cent, and there were nu- in some areas of the country. Each location is merous other consumer lenders in those markets. licensed and some States have various barriers to In this connection, we do not accept the Board's entry including a "public convenience standard." majority position that the relevant line of service In some instances entry can only be obtained with respect to which this proposal is to be judged through acquiring an existing license. is the providing of personal installment loans; While Dial has modestly innovated in its interest rather, the market is the broader one of consumer rate practice with lower rates for larger loans quite lending. Thus viewed, Dial is the 39th largest (the recently in a minor number of instances, Dial's 21st largest independent) firm in an industry in practice in most instances is to charge the maxiwhich the four largest firms control 38 per cent mum interest rate permitted by law—the industry of the business. Applicant's acquisition can only norm. Given the giant firms in this field, this serve to deconcentrate the industry. Therefore, we conduct can, perhaps, be understood for one of find no significant possible adverse effects from the smaller participants. As part of the Chase the elimination of potential competition between Manhattan Corporation we anticipate far more Applicant and Dial. vigorous price competition redounding to the con- The most troublesome issue in this case is that sumers' benefit—given Chase's commitments in of undue concentration of resources. Dial is a its application. relatively large enterprise with a net income of While Dial has a strong balance sheet, restric- $7.7 million in 1972. But it is no giant and would tive loan covenants are said to impede expansion. not appear in a list of the larger United States These limitations would not permit the rapid exenterprises. As mentioned before, Dial ranks 39th pansion which the majority suggests that Dial can in an industry of giants, led by GMAC, Sears undertake alone. But the Chase/Dial combination Roebuck, and others qualifying as the largest enti- could expand much more rapidly than Dial has ties in our society. in the past five years and we find this to be With respect to Applicant, banking and finance significantly procompetitive. are industries where large corporate units exist but Applicant's management committed itself in its where concentration is limited. Chase Manhattan application not only to rapidly expand the Dial Bank, for example, has 2.6 per cent of the nation's enterprise but to specifically lower interest rates banking deposits. Applicant's share of the nation's in Dial offices and to move aggressively in other consumer installment business is approximately areas. Its application stated: three-tenths of one per cent. The addition of Dial's 1. CMC undertakes to establish 150 new Dial offices over a two-tenths of one per cent of this total cannot have three-year period thereby increasing service areas and compeany significant effects, particularly in an industry tition. characterized by strong competition among con- 2. CMC undertakes to establish as a new business of Dial loans to small businesses and farmers in an amount aggregating sumer finance companies, commercial banks, sales $50 million over a three-year period. finance companies, credit unions, retailers, and 3. CMC undertakes through the Dial offices and facilities to savings and loan associations. No undue concen- extend $200 million residential mortgage loans over a threetration of resources would result from approval of year period. 4. CMC commits to offer through the Dial offices to individthis application. This is particularly true when one uals of superior credit standing sufficient loans in amounts of considers the question in the context of particular $7,500 or more as to comprise within a three-year period at product lines and particular markets, rather than least 15 per cent of Dial's total cash loan portfolio at an average annual percentage rate of interest of no more than 15 per cent as bigness, per se. as opposed to Dial's current average rate on such direct cash Against these minimal adverse effects we give loans outstanding of 17.3 per cent per annum. Loans in considerable weight to the public benefits asso- amounts of $7,500 or more presently comprise only 3.3 per cent of Dial's total direct cash loan portfolio. ciated with combining an obviously quite capable 5. CMC undertakes to reduce premiums by 5 per cent or to Dial management team with an institution having provide equivalent benefits for accident and health insurance the financial resources of Chase Manhattan. made available through Dial's affiliate and to reduce premiums on credit life insurance provided by such affiliate from 2 per Chase can well afford the risks and costs of rapid cent to 15 per cent (such reduction if in effect in 1973 would Dial expansion in the period immediately ahead. have reduced premiums charged by approximately $600,000). Chase has a breadth of activity where profits in 6. CMC will undertake a program of research and experi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 147 mentation with new loan products and services to be offered been given in accordance with §§3 and 4 of the through Dial offices. CMC's firm intention is to develop means Act, and the time for filing comments and views of better meeting the financial needs of consumers at lower rates. has expired and none has been timely received. The Board has considered the applications in light The above firm undertakings of Applicant set of the factors set forth in § 3(c) of the Act, and forth public benefits which, in our opinion, are the considerations specified in § 4(c)(8) of the Act. clearly and irrefutably in the public interest. There Applicant is a Kansas corporation organized for is a commitment to markedly expand Dial's servthe purposes of becoming a bank holding company ices. The program to relate interest rates on perthrough acquisition of Bank, and operating as an sonal loans to the degree of risk assumed would insurance agency. Bank, with deposits of $6.6 be a helpful step toward breaking down the conmillion,1 representing 0.1 per cent of the commersumer finance industry practice of generally cial bank deposits in the State, is the fifth largest charging the maximum interest rate permitted by of eleven banks in McPherson County and controls law irrespective of the amount of credit risk. approximately 8 per cent of total deposits in com- Applicant's proposed specific program to make mercial banks in the county. Bank is the only bank $50 million in loans to small businesses and farmin Lindsborg. Since the proposal represents a reers and $200 million in residential mortgage loans structuring of Bank's ownership and Applicant has over a three-year period represents another conno banking subsidiaries, acquisition of Bank by structive step. While some of these programs may Applicant would not eliminate any existing combe instituted by Dial itself, there is no question petition, nor would it appear to have any adverse that Applicant's support would make their success effect on other banks or on the development of more certain and assure public benefits. future competition in the relevant area. Accord- Against these real and substantial public beneingly, competitive considerations are consistent fits, we see no significant possible adverse effects with approval of the application. and must, therefore, dissent from the Board's The financial and managerial resources and fuaction denying this application. ture prospects of Applicant and Bank are regarded as satisfactory and consistent with approval. Al- ORDERS UNDER SECTIONS 3 AND 4 OF though Applicant will incur debt in acquiring BANK HOLDING COMPANY ACT Bank, it appears that income from Bank and in- LINDSBORG BANCSHARES, INC., surance agency activities will provide sufficient LINDSBORG, KANSAS revenue to service the debt adequately without impairing the financial condition of Bank. Consid- ORDER APPROVING FORMATION OF BANK HOLDerations relating to the convenience and needs of ING COMPANY AND ENGAGING IN INSURANCE the community to be served, with respect to the AGENCY ACTIVITIES acquisition of Bank, are consistent with approval Lindsborg Bancshares, Inc., Lindsborg, Kan- of the application. It is the Board's judgment that sas, has applied for the Board's approval under consummation of the transaction would be in the § 3(a)(1) of the Act (12 U.S.C. 1842(a)(1)) of public interest and that the application to acquire formation of a bank holding company through Bank should be approved. acquisition of 81 per cent or more of the voting Applicant proposes to operate a general insurshares of The Farmers State Bank, Lindsborg, ance agency business on Bank's premises through Kansas ("Bank"). the acquisition of the Shogren-Larson Agency and At the same time, Applicant has applied for the consolidation with the insurance agency identified Board's approval under § 4(c)(8) of the Act (12 as Farmers State Bank Agency.2 Approval would U.S.C. 1843(c)(8)) and § 225.4(b)(2) of Regula- permit Applicant to offer Bank's customers the tion Y to engage in general insurance agency convenience of obtaining banking and insurance activities in Lindsborg, Kansas (population of less services in conjunction with each other. There is than 5,000). The operation by a bank holding no evidence in the record indicating that consumcompany of a general insurance agency in a community with a population not exceeding 5,000 is 1 Banking data are as of June 30, 1973. an activity that the Board has previously deter- 2 Farmers State Bank Agency is engaged solely in the sale mined to be closely related to banking (12 CFR of credit life insurance. Due to the limited nature of such insurance activities, it does not appear that subject, acquisition 225.4(a)(9)(iii)(a)). would have any significant effect on existing or future compe- Notices of the receipt of the applications have tition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 mation of the proposal would result in any undue (Signed) CHESTER B. FELDBERG, concentration of resources, unfair competition, [SEAL] Secretary of the Board. conflicts of interest, unsound banking practices or other adverse effects on the public interest. Based on the foregoing and other considerations DISSENTING STATEMENT OF reflected in the record, the Board has determined GOVERNOR BRIMMER that the considerations affecting the competitive factors under § 3(c) of the Act and the balance I would deny the applications by Lindsborg of the public interest factors the Board must con- Bancshares, Inc., to acquire the Farmers State sider under § 4(c)(8) both favor approval of the Bank and the Shogren-Larson Agency. A man- Applicant's proposal. agement agreement incident to this proposal contains a covenant not to compete which, by its Accordingly, the applications are approved for terms, prohibits Bank's major shareholder from the reasons summarized above. The acquisition of engaging in the banking business within a ten mile Bank shall not be made before the thirtieth calenradius of Lindsborg for a period of eight years. dar day following the effective date of this Order; In addition, a covenant not to compete was exenor shall the acquisition of Bank, or the acquisition cuted which prohibits certain of Bank's shareof the Shogren-Larson Agency and the consoliholders from engaging in the business of banking dation with Farmers State Bank Agency, be made within 50 miles of Lindsborg for a period of five later than three months after the effective date of years. In my view, such covenants necessarily this Order unless such period is extended for good inhibit competition and should not be sanctioned cause by the Board or by the Federal Reserve Bank by the Board. of Kansas City pursuant to delegated authority. The determination as to Applicant's insurance ac- The purpose and effect of the covenants in this tivities is subject to the conditions set forth in case is to preclude the possibility that the restricted Section 225.4(c) of Regulation Y and to the individuals would provide support for an alterna- Board's authority to require reports by, and make tive source of commercial banking services in examinations of, holding companies and their Lindsborg in the near future. For reasons stated subsidiaries and to require such modification or more fully in the dissent to the Board's Order of termination of the activities of a bank holding September 21, 1973, approving the acquisition by company or any of its subsidiaries as the Board First Alabama Bancshares, Inc., of Citizens Bank finds necessary to assure compliance with the of Guntersville, such a consequence is inherently provisions and purposes of the Act and the Board's anticompetitive. In order for this application to be regulations and orders issued thereunder, or to approved, Applicant would have to establish that prevent evasion thereof. the anticompetitive effects of such a covenant "are clearly outweighed in the public interest by the By order of the Board of Governors, effective probable effect of the transaction in meeting the January 30, 1974. convenience and needs of the community to be Voting for this action: Chairman Burns and Governors served." In my view, this has not been estab- Daane, Sheehan, Bucher, and Holland. Voting against this lished; and the Board's approval of this application action: Governor Brimmer. Absent and not voting: Governor Mitchell. cannot be supported. ORDERS NOT PRINTED IN THIS ISSUE During January 1974, 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 Exchange National Corporation, Exchange National Bank and Trust 1/31/74 39 F.R. 4960 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 149 ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation Ardmore, Oklahoma Company, Ardmore, Oklahoma 2/8/74 Integrity Holding Company, Integrity Finance Corporation and 1/29/74 39 F.R. 4695 Wilmington, Delaware The First National Bank of 2/6/74 Wilmington, Wilmington, Delaware Rice Insurance Agency, Inc. The First National Bank 1/29/74 39 F.R. 4695 Strasburg, Colorado of Strasburg, Strasburg, 2/6/74 Colorado 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 Ameribanc, Inc., Marceline State Bank, 1/29/74 39 F.R. 4693 St. Joseph, Missouri Marceline, Missouri 2/6/74 American Bankcorp, Inc., American Bank of Charlotte, 1/31/74 39 F.R. 4958 Lansing, Michigan Charlotte, Michigan 2/8/74 Barnett Banks of Florida, Inc., The Bayshore State Bank, 1/29/74 39 F.R. 4694 Jacksonville, Florida Bayshore Gardens (P.O. 2/6/74 Bradenton), Florida The Chase Manhattan Corporation, Chase Manhattan Bank of the 1/14/74 39 F.R. 2517 New York, New York Southern Tier (National 1/22/74 Association, Binghamton, New York City National Bank Corporation, City Bank of North Miami, 1/31/74 39 F.R. 4959 Miami, Florida North Miami, Florida 2/8/74 Ellis Banking Corporation, Parkway National Bank of Talla- 1/24/74 39 F.R. 4003 Bradenton, Florida hassee, Tallahassee, Florida 1/31/74 First Abilene Bankshares, Inc., Hereford State Bank, 1/3/74 39 F.R. 1544 Abilene, Texas Hereford, Texas 1/10/74 First Bancorp of N. H., Inc., Concord National Bank, 1/2/74 39 F.R. 1485 Exeter, New Hampshire Concord, New Hampshire 1/9/74 First at Orlando Corporation, Wilton Manors National Bank, and 1/28/74 39 F.R. 4616 Orlando, Florida Lauderdale Beach Bank, both of 2/5/74 Fort Lauderdale, Florida First Wisconsin Bankshares Cor- First Wisconsin Bank of West 1/28/74 39 F.R. 4617 poration, Milwaukee, Wisconsin Green Bay, Ashwaubenon, 2/5/74 Wisconsin Southeast Banking Corporation, Bank of East Orange, 1/29/74 39 F.R. 4696 Miami, Florida Orlando, Florida 2/6/74 Southwest Bancshares, Inc., Citizens Bank, 1/14/74 39 F.R. 2520 Houston, Texas Irving, Texas 1/22/74 Tennessee Valley Bancorp, Inc., Commerce Union Bank Chatta- 1/2/74 39 F.R. 1673 Nashville, Tennessee nooga, Chattanooga, Tennessee 1/11/74 United Banks of Colorado, Inc., First State Bank of Fountain, 1/10/74 39 F.R. 2520 Denver, Colorado Fountain, Colorado 1/22/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN • FEBRUARY 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 United First Florida Banks, Inc., The Peoples Bank of Tallahassee, 1/10/74 39 F.R. 2521 Tampa, Florida Tallahassee, Florida 1/22/74 ORDER UNDER SECTIONS 3(a)(1) and 3(a)(5) OF BANK HOLDING COMPANY ACT- APPLICATION FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation The First National Holding The First National Bank and Trust 1/18/74 39 F.R. 2006 Company, Oklahoma City, Company of Oklahoma City, 1/24/74 Oklahoma Oklahoma City, Oklahoma 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 American Fletcher Corporation, Charg-it of Florida, Inc., 1/23/74 39 F.R. 3862 Indianapolis, Indiana Coral Gables, Florida 1./30/7 4 BancOhio Corporation, Midwest Econometrics, Inc., 1/25/74 39 F.R. 4513 Columbus, Ohio Columbus, Ohio 2/4/74 Bank of Virginia Company, Commonwealth Mortgage Com- 1/31/74 39 F.R. 4958 Richmond, Virginia pany, Richmond, Virginia 2/8/74 The Chase Manhattan Corporation, Berkeley Credit Corporation, 1/23/74 39 F.R. 3862 New York, New York New York, New York 1/30/74 ComBanks Corporation, ComBanks Mortgage Company, 1/24/74 39 F.R. 4001 Winter Park, Florida Winter Park, Florida 1/31/74 F & M National Corporation, Peoples Loans, Incorporated, 1/30/74 39 F.R. 4960 Winchester, Virginia Luray, Virginia 2/8/74 First Pennsylvania Corporation, Cowart Finance Center, Inc., 1/25/74 39 F.R. 4513 Philadelphia, Pennsylvania Opelousas, Louisiana 2/4/74 Rice Insurance Agency, Inc., Certain insurance activities 1/29/74 39 F.R. 4695 Strasburg, Colorado 2/6/74 Southwest Bancshares, Inc., Mortgage Banking 1/14/74 39 F.R. 2518 Houston, Texas 1/22/74 State Street Boston Financial Kentucky Mortgage Company, 1/8/74 39 F.R. 2520 Corporation, Boston, Incorporated, Lexington, 1/22/74 Massachusetts Kentucky United Penn Corporation, Valley Consumer Discount 1/15/74 39 F.R. 2645 Wilkes-Barre, Pennsylvania Company, Exeter, Pennsylvania 1/23/74 Worcester Bancorp, Inc., Wornat Insurance Agency, Inc., 1/28/74 39 F.R. 4618 Worcester, Massachusetts Worcester, Massachusetts 2/5/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 151 ORDERS ISSUED BY FEDERAL RESERVE BANKS During January 1974, 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 Northern States Bancorpora- National Bank of Rochester, Chicago 1/18/74 39 F.R. 4514 tion, Inc., Detroit, Michi- Rochester, Michigan 2/4/74 gan and Twin Gates Corporation, Wilmington, Delaware Allied Bancshares, Inc., Clear Creek Bank, Dallas 1/14/74 39 F.R. 2804 Houston, Texas Seabrook, Texas 1/24/74 Allied Bancshares, Inc., Deer Park Bank, Dallas 1/14/74 39 F.R. 2805 Houston, Texas Deer Park, Texas 1/24/74 Allied Bancshares, Inc., Fairbanks Bank of Houston, Dallas 1/18/74 39 F.R. 3863 Houston, Texas Houston, Texas 1./30/7 4 Allied Bancshares, Inc., First National Bank of Dallas 1/14/74 39 F.R. 2805 Houston, Texas Crockett, Crockett, Texas 1/24/74 Frost Bank Corporation, Parkdale State, Dallas 1.129114 39 F.R. 5229 San Antonio, Texas Corpus Christi, Texas 2/11/74 First at Orlando Corporation, Coconut Grove Bank, Atlanta 1/18/74 39 F.R. 3864 Orlando, Florida Miami, Florida and Sun- 1/30/74 shine State Bank, South Miami, Florida Popular Bancshares Corpora- North American Bank of Atlanta 1/8/74 39 F.R. 2309 tion, Miami, Florida Tampa, Tampa, Florida 1/18/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directory of Federal Reserve Banks and Branches Following is a list of the directorates of the Federal Reserve Banks and Branches as at present constituted. The list shows, in addition to the name of each director, his principal business affiliation, the class of directorship, and the date when his term expires. Each Federal Reserve Bank has nine directors; three Class A and three Class B directors, who are elected by the stockholding member banks, and three Class C directors, who are appointed by the Board of Governors of the Federal Reserve System. Class A directors are representative of the stockholding member banks. Class B directors at the time of their election must be actively engaged in their district in commerce, agriculture, or some industrial pursuit, and may not be officers, directors, or employees of any bank. For the purpose of electing Class A and Class B directors, the member banks of each Federal Reserve district are classified by the Board of Governors of the Federal Reserve System into three groups, each of which consists of banks of similar capitalization, and each group elects one Class A and one Class B director. Class C directors may not be officers, directors, employees, or stockholders of any bank. One Class C director is designated by the Board of Governors as Chairman of the Board of Directors and Federal Reserve Agent and another is appointed Deputy Chairman. Federal Reserve Branches have either five or seven directors, of whom a majority are appointed by the Board of Directors of the parent Federal Reserve Bank; the others are appointed by the Board of Governors of the Federal Reserve System. One of the directors appointed by the Board of Governors at each Branch is designated annually as Chairman of the Board in such a manner as the Federal Reserve Bank may prescribe. Names followed by footnote 1 (*) are Chairmen and those by footnote 2 (2) are Deputy Chairmen. Names in capital letters indicate new appointments; all others are reappointments. District 1—FEDERAL RESERVE BANK OF BOSTON Term expires Class A: Dec. 31 MARK C. WHEELER President, New England Merchants National Bank, Boston, Mass. 1974 WILLIAM M. HONEY President, The Martha's Vineyard National Bank, Vineyard Haven, Mass. 1975 FRANCIS N. SOUTH- Chairman of the Board, President, Concord National Bank, WORTH Concord, N.H. 1976 Class B: W. GORDON ROBERTSON Bangor, Maine 1974 ALFRED W. VAN SINDERENPresident, The Southern New England Telephone Company, New Haven, Conn. 1975 G. WILLIAM MILLER President, Textron, Providence, R.I. 1976 Class C: JAMES S. DUESENBERRY1 Chairman, Department of Economics, Harvard University, Cambridge, Mass. 1974 LOUIS W. CABOT2 Chairman of the Board, Cabot Corporation, Boston, Mass. 1975 KENNETH I. GUSCOTT President, Ken Guscott Associates, Boston, Mass. 1976 Digitized for FRASER 152 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

District 2—FEDERAL RESERVE BANK OF NEW YORK Term expires Class A: Dec. 31 NORMAN BRASSLER Chairman of the Board, Chief Executive Officer, New Jersey Bank, N.A., Passaic, N.J. 1974 NEWMAN E. WAIT, Jr. President, Adirondack Trust Company, Saratoga Springs, N.Y. 1975 DAVID ROCKEFELLER Chairman of the Board, The Chase Manhattan Bank, N.A., New York, N.Y. 1976 Class B: WILLIAM S. SNEATH President, Union Carbide Corporation, New York, N.Y. 1974 JACK B. JACKSON President, J. C. Penney Company, New York, N.Y. 1975 MAURICE F. GRANVILLE Chairman of the Board, Texaco, New York, N.Y. 1976 Class C: ROSWELL L. GILPATRIC1 Partner, Cravath, Swaine & Moore, New York, N.Y. 1974 FRANK R. MILLIKEN2 President, Kennecott Copper Corporation, New York, N.Y. 1975 ALAN PIFER President, Carnegie Corporation of New York, N.Y. 1976 BUFFALO BRANCH Appointed by Federal Reserve Bank: THEODORE M. MCCLURE President, The Citizens National Bank and Trust Company, Wellsville, N.Y. 1974 CLAUDE F. SHUCHTER President, Chief Executive Officer, Manufacturers and Traders Trust Company, Buffalo, N.Y. 1975 J. WALLACE ELY President, Security Trust Company of Rochester, N.Y. 1976 DANIEL G. RANSOM President, Wm. Hengerer Company, Buffalo, N.Y. 1976 Appointed by Board of Governors: NORMAN F. BEACH1 Vice President, General Manager, Kodak Park Division, Eastman Kodak Company, Rochester, N.Y. 1974 DONALD NESBITT Owner-Operator, Silver Creek Farms, Albion, N.Y. 1975 RUPERT WARREN Trico Products Corporation, Buffalo, N.Y. 1976 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA Class A: JOHN C. TUTEN Chairman of the Board, Chief Executive Officer, National Central Bank and National Central Financial Corporation, Lancaster, Pa. 1974 JOHN H. HASSLER President, The City National Bank and Trust Company of Salem, N.J. 1975 THOMAS L. MILLER President, Upper Dauphin National Bank, Millersburg, Pa. 1976 153 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued Term expires Class B: D . 31 ec C. GRAHAM BERWIND, JR. President, Chief Executive Officer, Berwind Corporation, Philadelphia, Pa. 1974 BERNARD D. BROEKER Executive Vice President, Bethlehem Steel Corporation, Bethlehem, Pa. 1975 WILLIAM S. MASLAND President, C. H. Masland and Sons, Carlisle, Pa. 1976 Class C: EDWARD W. ROBINSON, JR.President, Provident Home Industrial Mutual Life Insurance Company, Philadelphia, Pa. 1974 EDWARD J. DWYER1 Chairman of the Board, ESB Incorporated, Philadelphia, Pa. 1975 JOHN R. COLEMAN2 President, Haverford College, Haverford, Pa. 1976 District 4—FEDERAL RESERVE BANK OF CLEVELAND Class A: A. BRUCE BOWDEN Retired Vice Chairman of the Board, Mellon Bank, N.A., Pittsburgh, Pa. 1974 DAVID L. BRUMBACK, JR. President, Van Wert National Bank, Van Wert, Ohio 1975 EDWARD W. BARKER Chairman of the Board, Chief Executive Officer, First National Bank of Middletown, Ohio 1976 Class B: DONALD E. NOBLE Chairman of the Board, Chief Executive Officer, Rubbermaid Incorporated, Wooster, Ohio 1974 RENE C. MCPHERSON Chairman of the Board, Chief Executive Officer, Dana Corporation, Toledo, Ohio 1975 CHARLES Y. LAZARUS Chairman of the Board, Chief Executive Officer, F. & R. Lazarus Company, Columbus, Ohio 1976 Class C: HORACE A. SHEPARD1 Chairman of the Board, Chief Executive Officer, TRW Incorporated, Cleveland, Ohio 1974 OTIS A. SINGLETARY President, University of Kentucky, Lexington, Ky. 1975 ROBERT E. KIRBY2 President, Westinghouse Electric Corporation, Pittsburgh, Pa. 1976 CINCINNATI BRANCH Appointed by Federal Reserve Bank: E. PAUL WILLIAMS Chairman of the Board, The Second National Bank of Ashland, Ky. 1974 PAUL W. CHRISTENSEN, JR.President, The Cincinnati Gear Company, Cincinnati, Ohio 1975 ROBERT E. HALL President, The First National Bank and Trust Company, Troy, Ohio 1975 JOSEPH F. RIPPE President, The Provident Bank, Cincinnati, Ohio 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 155 District 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued CINCINNATI BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 GRAHAM E. MARX1 President, General Manager, The G. A. Gray Company, Cincinnati, Ohio 1974 PHILLIP R. SHRIVER President, Miami University, Oxford, Ohio 1975 CLAIR F. VOUGH Vice President, Office Products Division, IBM Corporation, Lexington, Ky. 1976 PITTSBURGH BRANCH Appointed by Federal Reserve Bank: CHARLES F. WARD President, Gallatin National Bank, Uniontown, Pa. 1974 ROBINSON F. BARKER Chairman of the Board, Chief Executive Officer, PPG Industries, Pittsburgh, Pa. 1975 JERRY A. HALVERSON President, The First National Bank and Trust Company of Wheeling, W.Va. 1975 MALCOLM E. LAMB- President, The First National Bank of Pennsylvania, Erie, Pa. 1976 ING, JR. Appointed by Board of Governors: RICHARD M. CYERT President, Carnegie-Mellon University, Pittsburgh, Pa. 1974 DOUGLAS GRYMES1 President, Koppers Company, Pittsburgh, Pa. 1975 G. JACKSON TANKERS- President, Consolidated Natural Gas Company, Pittsburgh, Pa. 1976 LEY District 5—FEDERAL RESERVE BANK OF RICHMOND Class A.- EDWARD N. EVANS President, Farmers and Merchants National Bank of Cambridge, Md. 1974 JOHN N. LUMPKIN Chairman, Chief Executive Officer, The South Carolina National Bank, Columbia, S.C. 1975 CLAUDE HENSON President, Chairman of the Board, The First National Bank of Asheboro, N.C. 1976 Class B: HENRY C. HOFHEIMER II Chairman, Virginia Real Estate Investment Trust, Norfolk, Va. 1974 OSBY L. WEIR General Manager-Retired, Metropolitan Washington-Baltimore Area, Sears, Roebuck and Company, Kensington, Md. 1975 ANDREW L. CLARK President, Andy Clark Ford, Princeton, W.Va. 1976 Class C: E. CRAIG WALL2 Chairman of the Board, Canal Industries, Conway, S.C. 1974 ROBERT W. LAWSON, JR.1 Senior Partner, Charleston Office, Steptoe and Johnson, Charleston, W.Va. 1975 E. ANGUS POWELL Chairman of the Board, Lea Industries, Richmond, Va. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 5—FEDERAL RESERVE BANK OF RICHMOND—Continued Term BALTIMORE BRANCH expires Appointed by Federal Reserve Bank: Dec. 31 J. PIERRE BERNARD Chairman of the Board, The Annapolis Banking and Trust Company, Annapolis, Md. 1974 J. R. CHAFFINCH, JR. President, The Denton National Bank, Denton, Md. 1975 J. STEVENSON PECK Chairman of the Board, Union Trust Company of Maryland, Baltimore, Md. 1976 DOUGLASS ADAMS President, The Parkersburg National Bank, Parkersburg, W.Va. 1976 Appointed by Board of Governors: JAMES G. HARLOW1 President, West Virginia University, Morgantown, W.Va. 1974 DAVID W. BARTON, JR. President, Barton-Gillet Company, Baltimore, Md. 1975 I. E. KILLIAN Manager, Eastern Region, Exxon Corporation, U.S.A., Baltimore, Md. 1976 CHARLOTTE BRANCH Appointed by Federal Reserve Bank: L. D. COLTRANE III President, The Concord National Bank, Concord, N.C. 1974 WILLIAM W. BRUNER Chairman of the Board, President, First National Bank of South Carolina, Columbia, S.C. 1975 THOMAS L. BENSON President, The Conway National Bank, Conway, S.C. 1976 PLATO PEARSON, JR. President, Citizens National Bank in Gastonia, N.C. 1976 Appointed by Board of Governors: CHARLES F. BENBOW Senior Vice President, R. J. Reynolds Industries, Winston- Salem, N.C. 1974 ROBERT C. EDWARDS President, Clemson University, Clemson, S.C. 1975 CHARLES W. DEBELL1 General Manager, North Carolina Works, Western Electric Company, Winston-Salem, N.C. 1976 District 6—FEDERAL RESERVE BANK OF ATLANTA Class A: JACK P. KEITH President, First National Bank of West Point, Ga. 1974 SAM I. YARNELL Chairman, American National Bank and Trust Company, Chattanooga, Tenn. 1975 JOHN T. OLIVER, JR. President, First National Bank of Jasper, Ala. 1976 Class B: ULYSSES V. GOODWYN Executive Vice President, Southern Natural Resources, Birmingham, Ala. 1974 GEORGE W. JENKINS Chairman, Publix Super Markets, Lakeland, Fla. 1975 ROBERT T. HORNBECK Manager, Tennessee Operations, Aluminum Company of America, Alcoa, Tenn. 1976 Class C: H. G. PATTILLO1 President, Pattillo Construction Company, Decatur, Ga. 1974 F. EVANS FARWELL President, Milliken and Farwell, New Orleans, La. 1975 CLIFFORD M. KIRT- President, Cox Broadcasting Corporation, Atlanta, Ga. 1976 LAND, JR. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 157 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued BIRMINGHAM BRANCH Term expires Appointed by Federal Reserve Bank: Dec. 31 W. EUGENE MORGAN President, Chief Executive Officer, The First National Bank of Hunts ville, Ala. 1974 JOHN ALEXANDER, JR. President, City National Bank of Birmingham, Ala. 1975 LAWRENCE HARRIS President, Slocomb National Bank, Slocomb, Ala. 1976 JOHN MAPLES, JR. Executive Vice President, Union Bank and Trust Company, Montgomery, Ala. 1976 Appointed by Board of Governors: WILLIAM C. BAUER1 President, South Central Bell, Birmingham, Ala. 1974 FRANK P. SAMFORD, JR.Chairman of the Board, Liberty National Life Insurance Company, Birmingham, Ala. 1975 DAVID MATHEWS President, University of Alabama, University, Ala. 1976 JACKSONVILLE BRANCH Appointed by Federal Reserve Bank: GUY W. BOTTS Vice Chairman of the Board, Barnett Bank of Jacksonville, N. A., Jacksonville, Fla. 1974 MICHAEL J. FRANCO Chairman of the Board, City National Bank of Miami, Fla. 1975 WILLIAM K. DE VEER President, First National Bank in Palm Beach, Fla. 1976 (Vacancy) 1976 Appointed by Board of Governors: GERT H. W. SCHMIDT1 President, TeLeVision 12 of Jacksonville, Fla. 1974 JAMES E. LYONS President, Lyons Industrial Corporation, Winter Haven, Fla. 1975 EGBERT R. BEALL President, Beall's Department Stores, Bradenton, Fla. 1976 NASHVILLE BRANCH Appointed by Federal Reserve Bank: W. BRYAN WOODARD President, Kingsport National Bank, Kingsport, Tenn. 1974 ROBERT E. CURRY President, First National Bank of Pulaski, Tenn. 1975 T. SCOTT FILLEBROWN, President, First American National Bank of Nashville, Tenn. 1976 JR. FRED R. LAWSON President, Blount National Bank of Maryville, Tenn. 1976 Appointed by Board of Governors: EDWARD J. BOLING1 President, The University of Tennessee, Knoxville, Tenn. 1974 JOHN C. TUNE Partner, Butler, McHugh, Butler, Tune and Watts, Nashville, Tenn. 1975 JAMES W. LONG President, Robertson County Farm Bureau, Springfield, Tenn. 1976 NEW ORLEANS BRANCH Appointed by Federal Reserve Bank: ARCHIE R. MCDONNELL President, Citizens National Bank, Meridian, Miss. 1974 ERNEST F. LADD, JR. Chairman, The Merchants National Bank, Mobile, Ala. 1975 JAMES H. JONES Chairman of the Board, Chief Executive Officer, First National Bank of Commerce, New Orleans, La. 1976 CHARLES W. McCOY Chairman of the Board, President, Louisiana National Bank, Baton Rouge, La. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued NEW ORLEANS BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 FRED ADAMS, JR. President, Cal-Maine Foods, Jackson, Miss. 1974 EDWIN J. CAPLAN1 President, Caplan's Men's Shops, Alexandria, La. 1975 (Vacancy) 1976 District 7—FEDERAL RESERVE BANK OF CHICAGO Class A: FLOYD F. WHITMORE President, The Okey-Vernon National Bank, Corning, Iowa 1974 EDWARD BYRON SMITH Chairman of the Board, The Northern Trust Company, Chicago, 111. 1975 JAY J. DELAY President, Huron Valley National Bank, Ann Arbor, Mich. 1976 Class B: JOHN T. HACKETT Executive Vice President, Cummins Engine Company, Columbus, Ind. 1974 OSCAR G. MAYER Chairman of Executive Committee, Oscar Mayer and Company, Madison, Wis. 1975 PAUL V. FARVER President, Rolscreen Company, Pella, Iowa 1976 Class C.- WILLIAM H. FRANKLIN1 Chairman of the Board, Caterpillar Tractor Company, Peoria, 111. 1974 PETER B. CLARK2 Chairman of the Board, President, The Evening News Association, Detroit, Mich. 1975 ROBERT H. STROTZ President, Northwestern University, Evanston, 111. 1976 DETROIT BRANCH Appointed by Federal Reserve Bank: HAROLD A. ELGAS President, Gay lord State Bank, Gay lord, Mich. 1974 JOSEPH B. FOSTER President, Ann Arbor Bank, Ann Arbor, Mich. 1975 ROLAND A. MEWHORT Director, Consultant, Manufacturers National Bank of Detroit, Mich. 1975 ROBERT M. SURD AM Chairman of the Board, National Detroit Corporation, Detroit, Mich. 1976 Appointed by Board of Governors: TOM KILLEFER Vice President-Finance, General Counsel, Chrysler Corporation, Detroit, Mich. 1974 W. M. DEFOE1 Chairman of the Board, Defoe Shipbuilding Company, Bay City, Mich. 1975 JORDAN B. TATTER District Horticultural Agent, Cooperative Extension Service-Michigan State University, Paw Paw, Mich. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 159 District 8—FEDERAL RESERVE BANK OF ST. LOUIS Term expires Dec. 31 Class A: EDWIN S. JONES Chairman of the Board, First National Bank in St. Louis, Mo. 1974 WM. E. WEIGEL Executive Vice President, 1st National Bank and Trust Company, Centralia, 111. 1975 RAYMOND C. President, The City National Bank of Murphysboro, 111. 1976 BURROUGHS Class B: JAMES M. TUHOLSKI President, Mead Johnson & Company, Evansville, Ind. 1974 EDWARD J. SCHNUCK Chairman of the Board, Schnuck Markets, Bridgeton, Mo. 1975 FRED I. BROWN, JR. President, Arkansas Foundry Company, Little Rock, Ark. 1976 Class C: Chairman of the Board, General American Life Insurance Com- FREDERIC M. PEIRCE1 pany, St. Louis, Mo. 1974 President, Humko Products, Division of Kraftco Corporation, SAM COOPER2 Memphis, Tenn. 1975 Melrose Farms, Herndon, Ky. 1976 HARRY M. YOUNG, JR. LITTLE ROCK BRANCH Appointed by Federal Reserve Bank: THOMAS E. HAYS, JR. President, First National Bank of Hope, Ark. 1974 THOMAS G. VINSON President, First National Bank, Batesville, Ark. 1975 FIELD WASSON President, The First National Bank, Siloam Springs, Ark. 1975 HERBERT H. MCADAMS Chairman of the Board, Chief Executive Officer, Union National II Bank of Little Rock, Ark. 1976 Appointed by Board of Governors: AL POLLARD President, Al Pollard & Associates, Little Rock, Ark. 1974 W. M. PIERCE1 President, Arkansas Business Development Corporation, Little Rock, Ark. 1975 ROLAND R. REMMEL Chairman of the Board, Southland Building Products, Little Rock, Ark. 1976 LOUISVILLE BRANCH Appointed by Federal Reserve Bank: HUGH M. SHWAB Chairman of the Board, First National Bank of Louisville, Ky. 1974 HERBERT J. SMITH President, The American National Bank & Trust Company of Bowling Green, Ky. 1975 TOM G. Voss President, The Seymour National Bank, Seymour, Ind. 1975 HAROLD E. JACKSON President, The Scott County State Bank, Scottsburg, Ind. 1976 Appointed by Board of Governors: JAMES C. HENDERSHOT1 President, Reliance Universal Incorporated, Louisville, Ky. 1974 JAMES H. DAVIS Chairman of the Board, Chief Executive Officer, Porter Paint Company, Louisville, Ky! 1975 WILLIAM H. STROUBE Associate Dean, College of Science and Technology, Western Kentucky University, Bowling Green, Ky. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued Term MEMPHIS BRANCH *Xpirf? Dec. 31 Appointed by Federal Reserve Bank: GARNER L. HICKMAN Chairman of the Board, President, The First National Bank of Oxford, Miss. 1974 RIDLEY ALEXANDER Chairman, The Second National Bank of Jackson, Tenn. 1975 C. BENNETT HARRISON Chairman of the Board, Union Planters National Bank of Memphis, Tenn. 1975 WILLIAM M. CAMP- Chairman of the Board, Chief Executive Officer, First National BELL Bank of Eastern Arkansas, Forrest City, Ark. 1976 Appointed by Board of Governors: C. WHITNEY BROWN1 President, S.C. Toof and Company, Memphis, Tenn. 1974 JEANNE L. HOLLEY Assistant Professor of Business Education, University of Mississippi, University, Miss. 1975 (Vacancy) 1976 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS Class A.- ROY H. JOHNSON President, The First National Bank of Negaunee, Mich. 1974 DAVID M. SMITH President, First National Bank of River Falls, Wis. 1975 CHARLES T. UNDLIN President, First National Bank of the Black Hills, Rapid City, S.D. 1976 Class B: JOHN H. BAILEY President, The Cretex Companies, Elk River, Minn. 1974 DAVID M. HESKETT President, Montana-Dakota Utilities Company, Bismarck, N.D. 1975 WARREN B. JONES Secretary-Treasurer, Two Dot Land and Livestock Company, Harlowton, Mont. 1976 Class C: BRUCE B. DAYTON1 Chairman of the Board, Dayton Hudson Corporation, Minneapolis, Minn. 1974 JAMES P. McFARLAND2 Chairman of the Board, Chief Executive Officer, General Mills, Minneapolis, Minn. 1975 HOWARD B. SWEARER President, Carleton College, Northfield, Minn. 1976 HELENA BRANCH Appointed by Federal Reserve Bank: ROBERT I. PENNER President, Citizens First National Bank, Wolf Point, Mont. 1974 JOHN REICHEL President, 1st National Bank in Bozeman, Mont. 1974 DONALD E. OLSSON President, Ronan State Bank, Ronan, Mont. 1975 Appointed by Board of Governors: DAVID G. DRUM President, Y-V Fertilizer Corporation, Billings, Mont. 1974 WILLIAM A. CORDINGLEY1 Publisher, President, Great Falls Tribune, Great Falls, Mont. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 161 District 10—FEDERAL RESERVE BANK OF KANSAS CITY Term expires Class A: Dec. 31 JOHN A. O'LEARY Chairman of the Board, The Peoples State Bank, Luray, Kans. 1974 ROGER D. KNIGHT, JR. Chairman of the Board, United Banks of Colorado, Denver, Colo. 1975 PHILIP HAMM President, First National Bank & Trust Company, El Dorado, Kans. 1976 Class B: FRANK C. LOVE Of Counsel—Crowe, Dunlevy, Thweatt, Swinford, Johnson and Burdick, Oklahoma City, Okla. 1974 CECIL O. EMRICH President, C.O. Emrich Enterprises, Norfolk, Nebr. 1975 DONALD J. HALL President, Hallmark Cards, Kansas City, Mo. 1976 Class C: Chairman of the Board, President, Coca-Cola Bottling Company ROBERT W. WAGSTAFF1 of Mid-America, Kansas City, Mo. 1974 President, World Publishing Company, Omaha World Herald, HAROLD W. ANDERSEN Omaha, Nebr. 1975 Chairman of the Board, President, Public Service Company of ROBERT T. PERSON2 Colorado, Denver, Colo. 1976 DENVER BRANCH Appointed by Federal Reserve Bank: ROBERT L. TRIPP Chairman of the Board, Chief Executive Officer, Albuquerque National Bank, Albuquerque, N.M. 1974 DALE R. HINMAN Chairman of the Board, The Greeley National Bank, Greeley, Colo. 1974 FELIX BUCHENROTH, President, The Jackson State Bank, Jackson, Wyo. 1975 JR. Appointed by Board of Governors: EDWARD R. LUCERO President, Colorado Economic Development Association, Lakewood, Colo. 1974 MAURICE B. MITCHELL1 Chancellor, University of Denver, Indian Hills, Colo. 1975 OKLAHOMA CITY BRANCH Appointed by Federal Reserve Bank: MARVIN MILLARD Chairman of the Board-Retired, National Bank of Tulsa, Okla. 1974 HUGH C. JONES Executive Vice President, The Bank of Woodward, Okla. 1974 W. H. MCDONALD Chairman of the Executive Committee, The First National Bank and Trust Company of Oklahoma City, Okla. 1975 Appointed by Board of Governors: HARLEY CUSTER General Manager, Oklahoma Livestock Marketing Association, Oklahoma City, Okla. 1974 JOSEPH H. WILLIAMS1 President, The Williams Companies, Tulsa, Okla. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued OMAHA BRANCH Term expires Appointed by Federal Reserve Bank: Dec. 31 EDWARD W. LYMAN Chairman, The United States National Bank of Omaha, Nebr. 1974 GLENN YAUSSI Vice Chairman of the Board, National Bank of Commerce Trust & Savings, Lincoln, Nebr. 1975 ROY G. DINSDALE Chairman of the Board, Farmers National Bank of Central City, Nebr. 1975 Appointed by Board of Governors: EDWARD F. OWEN President, Paxton & Vierling Steel Company, Omaha, Nebr. 1974 DURWARD B. VARNER1 President, University of Nebraska, Lincoln, Nebr. 1975 District 11—FEDERAL RESERVE BANK OF DALLAS Class A: A. W. RITER, JR. President, Chairman of the Executive Committee, The Peoples National Bank of Tyler, Tex. 1974 ROBERT H. STEWART III Chairman of the Board, First International Bancshares, Dallas, Tex. 1975 GENE D. ADAMS President, The First National Bank of Seymour, Tex. 1976 Class B: HUGH F. STEEN President, El Paso Natural Gas Company, El Paso, Tex. 1974 THOMAS W. HERRICK President, Mesa Agro, Amarillo, Tex. 1975 STEWART ORTON President, Foley's, Division of Federated Department Stores, Houston, Tex. 1976 Class C: IRVING A. MATHEWS Chairman of the Board, Chief Executive Officer, Frost Bros., San Antonio, Tex. 1974 CHARLES T. BEAIRD2 Chairman of the Board, Beaird-Poulan Division, Emerson Electric Company, Shreveport, La. 1975 JOHN LAWRENCE1 Chairman of the Board, Dresser Industries, Dallas, Tex. 1976 EL PASO BRANCH Appointed by Federal Reserve Bank: WAYNE STEWART President, First National Bank in Alamogordo, N.M. 1974 REED H. CHITTIM President, First National Bank of Lea County, Hobbs, N.M. 1975 SAM D. YOUNG, Jr. President, El Paso National Bank, El Paso, Tex. 1975 C. J. KELLY President, Vice Chairman of the Board, The First National Bank of Midland, Tex. 1976 Appointed by Board of Governors; GAGE HOLLAND1 Owner, Gage Holland Ranch, Alpine, Tex. 1974 ALLAN B. BOWMAN2 President, Amax Arizona, Tucson, Ariz. 1975 HERBERT M. SCHWARTZ President, Popular Dry Goods Company, El Paso, Tex. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 163 District 11—FEDERAL RESERVE BANK OF DALLAS—Continued Term HOUSTON BRANCH expires Appointed by Federal Reserve Bank: Dec. 31 SETH W. DORBANDT Chairman of the Board, President, First National Bank in Conroe, Tex. 1974 BOOKMAN PETERS President, The City National Bank of Bryan, Tex. 1975 NAT S. ROGERS President, First City National Bank of Houston, Tex. 1975 P. K. STUBBLEFIELD President, Victoria Bank & Trust Company, Victoria, Tex. 1976 Appointed by Board of Governors: CARL B. SHERMAN President, Houston Lighting & Power Company, Houston, Tex. 1974 ALVIN I. THOMAS2 President, Prairie View A&M University, Prairie View, Tex. 1975 THOMAS J. BARLOW1 President, Chief Executive Officer, Anderson, Clayton & Company, Houston, Tex. 1976 SAN ANTONIO BRANCH Appointed by Federal Reserve Bank: LEON STONE President, The Austin National Bank, Austin, Tex. 1974 RICHARD W. CALVERT President, National Bank of Commerce of San Antonio, Tex. 1975 W. O. ROBERSON Chairman of the Board, First National Bank at Brownsville, Tex. 1975 BEN R. LOW President, First National Bank of Kerrville, Tex. 1976 Appointed by Board of Governors: MARSHALL BOYKIN III1 Senior Partner, Wood, Boykin & Wolter, Corpus Christi, Tex. 1974 PETE J. MORALES, Jr.2 President, General Manager, Morales Feed Lots, Devine, Tex. 1975 MARGARET SCAR- BROUGH WILSON President, Scarbroughs Department Store, Austin, Tex. 1976 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO Class A: CARL E. SCHROEDER President, The First National Bank of Orange County, Orange, Calif. 1974 JAMES E. PHILLIPS President, First National Bank in Port Angeles, Wash. 1975 A. W. CLAUSEN President, Chief Executive Officer, Bank of America NT & SA, San Francisco, Calif. 1976 Class B: CHARLES R. DAHL President, Chief Executive Officer, Crown Zellerbach, San Francisco, Calif. 1974 JOSEPH ROSENBLATT Honorary Chairman of the Board, The Eimco Corporation, Salt Lake City, Utah 1975 CLAIR L. PECK President, Chairman of the Board, C. L. Peck Contractors, Los Angeles, Calif. 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued Term expires Class C: Dec. 31 MAS OJI President, Oji Bros. Farm, Yuba City, Calif. 1974 JOSEPH F. ALIBRANDI2 President, Whittaker Corporation, Los Angeles, Calif. 1975 O. MEREDITH WILSON1 President, Director, Center for Advanced Study in the Behavioral Sciences, Stanford, Calif. 1976 LOS ANGELES BRANCH Appointed by Federal Reserve Bank: RAYBURN S. DEZEMBER Chairman of the Board, President, American National Bank, Bakersfield, Calif. 1974 W. GORDON FERGUSON President, National Bank of Whittier, Calif. 1975 LINUS E. SOUTHWICK President, Valley National Bank, Glendale, Calif. 1976 ROBERT A. BARLEY President, United California Bank, Los Angeles, Calif. 1976 Appointed by Board of Governors: JOSEPH R. VAUGHAN1 President, Knudsen Corporation, Los Angeles, Calif. 1974 LELAND D. PRATT President, Kelco Company, San Diego, Calif. 1975 (Vacancy) 1976 PORTLAND BRANCH Appointed by Federal Reserve Bank: FRANK L. SERVOSS President, Crater National Bank of Medford, Ore. 1974 JAMES H. STANARD Vice President, First National Bank of McMinnville, Ore. 1974 LEROY B. STAVER Chairman of the Board, Chief Executive Officer, United States National Bank of Oregon, Portland, Ore. 1975 Appointed by Board of Governors: JOHN R. HOWARD1 President, Lewis and Clark College, Portland, Ore. 1974 LORAN L. STEWARD President, Bohemia, Eugene, Ore. 1975 SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank: RODERICK H. BROWNING President, Bank of Utah, Ogden, Utah 1974 ROY W. SIMMONS President, Zions First National Bank, Salt Lake City Utah 1974 JOSEPH BIANCO Chairman of the Board, President, Bank of Idaho, Boise, Idaho 1975 Appointed by Board of Governors: SAM H. BENNION1 Secretary-Treasurer, V-l Oil Company, Idaho Falls, Idaho 1974 THEODORE C. JACOBSEN Chairman of the Board, Jacobsen Construction Company, Salt Lake City, Utah 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES 165 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued SEATTLE BRANCH Term expires Appointed by Federal Reserve Bank Dec. 31 HARRY S. GOODFELLOW President, Old National Bank of Washington, Spokane, Wash. 1974 ROBERT C. WHITWAM President, American National Bank of Edmonds, Wash. 1974 JOSEPH C. BAILLARGEON Chairman of the Board, Chief Executive Officer, Seattle Trust and Savings Bank, Seattle, Wash. 1975 Appointed by Board of Governors: C. HENRY BACON, JR.1 Vice Chairman, Simpson Timber Company, Seattle, Wash. 1974 THOMAS T. HIRAI President and Director, Quality Growers Company, Woodinville, Wash. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements REDESIGNATION OF CHAIRMAN BURNS AS mittee of. prominent academic experts to review CHAIRMAN OF THE BOARD concepts, procedures, and methodology involved in estimating the money supply and other monetary The President of the United States on January 28, aggregates. 1974, issued an Order redesignating Arthur F. This committee, which is expected to complete Burns as Chairman of the Board of Governors of its studies within a year, will be chaired by Prothe Federal Reserve System, to serve as such for fessor G. L. Bach of Stanford University. a term of 4 years from February 1, 1974, unless Other committee members are Phillip D. Cagan and until his services as a Member of the Board of Columbia University, who will serve as Execuof Governors shall have sooner terminated. tive Secretary of the committee; Milton Friedman Dr. Burns, whose 14-year term as a Member of the University of Chicago; Clifford G. Hildreth of the Board will expire on January 31, 1984, has of the University of Minnesota; Paul W. Mcserved as both a Member of the Board and its Cracken of the University of Michigan; Franco Chairman since February 1, 1970. Just prior to Modigliani of the Massachusetts Institute of Techhis appointment to the Board, Dr. Burns served nology; and Arthur M. Okun of the Brookings as Counsellor to the President from January 1969 Institution. to January 1970. CHANGE IN BOARD STAFF DRAFT LEGISLATION FOR UNIFORM RESERVE REQUIREMENTS The Board of Governors announced the promotion of John Nicoll, who has been Assistant General The Board of Governors on January 25, 1974, sent Counsel in the Legal Division, to Deputy General to Congress draft legislation designed to imple- Counsel, effective February 8, 1974. ment its recommendations for uniform reserve requirements. The proposed legislation has the TERMINATION OF VFCR GUIDELINES following purposes: To achieve better management of money and The Board of Governors announced on January credit, to provide a more equitable system of 29, 1974, the immediate termination of its Volunreserve requirements among financial institutions tary Foreign Credit Restraint Guidelines (VFCR). that offer similar deposit services, and to permit The program was designed to restrain foreign Federal Reserve lending assistance to a broader lending and investment overseas by banks and range of financial institutions when and as they other financial institutions. come under unusual liquidity pressures. The Board's announcement was made in con- The draft legislation would extend reserve rejunction with actions by the Treasury Department quirements set by the Federal Reserve to the deto reduce the interest equalization tax to zero and mand deposits and Negotiable Orders of Withby the Commerce Department to terminate its drawal (NOW's), at all financial institutions— foreign direct investment restriction. The Federal commercial banks, savings and loan associations, Reserve has administered the VFCR program since and mutual savings banks. The proposal would early 1965 at the request of the administration. also provide a widening of the permissible range In announcing its action, the Board said it would of reserve requirements. request banks and other financial institutions to The Board said the basic principle underlying continue during 1974 to report their overseas the proposed legislation is that equivalent cash lending and investments to the Board, but in reserve requirements should apply to all deposits substantially reduced detail. that effectively serve as a part of the public's money balances, regardless of the type of institu- COMMITTEE ON MONETARY MEASUREMENTS tion in which those balances are held. In view of the importance of monetary measure- While providing a greater measure of monetary ments, the Board of Governors announced on control in the economy, the draft legislation would January 31, 1974, the formation of a special com- at the same time preserve the balance of supervi- Digitized for FRASER 167 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 sory powers inherent in a dual banking system. ments and reserve requirements set by the Federal More than 3,000 of the smaller nonmember banks Reserve, however, is in the form in which rewill be effectively exempt from the new require- quirements are held. Reserve requirements set by ments. In addition, the proposal would not require the Federal Reserve must be held, under law, in State banks to join the system—membership the form of vault cash or funds deposited with would be optional for these institutions. Regard- a Federal Reserve Bank. State requirements can less of their membership status, however, State be satisfied not only by holding cash but also in banks under the legislation would be subject to a number of other ways—by holding deposits with Federal Reserve reserve requirements on demand other banks or by holding interest-bearing Federal deposits and NOW accounts, and would have or State securities. Reserves held in this manner access to Federal Reserve credit at the discount do not contribute to the monetary policy function window. Supervision of thrift institutions also of reserves since the funds are available to finance would remain unchanged. additional deposits and credit expansion. Thus, the Reserve requirements set by State authorities principal thrust of the proposed legislation would under State law vary from State to State. In about be to change the form in which nonmember banks half, the percentage requirements for demand de- hold their reserves—that is, by requiring them to posits are identical or differ very little (except for hold reserves in the form of cash or balances with large banks) from the percentages now set by the the Federal Reserve Banks. Federal Reserve. Percentages in 15 States are The proposal, which differs in some details from higher while in 7 other States they are lower. earlier recommendations by the Board, would The major difference between State require- provide a 4-year transition period—during which FEDERAL RESERVE BANK AND BRANCH DIRECTOR CHANGES DURING 1973 Federal Reserve Bank and Branch: William S. Sneath, President, Union Carbide Corporation, New York, New New York York, was elected in Class B, Group 2, on August 15. William S. Masland, President, C. H. Masland and Sons, Carlisle, Pennsyl- Philadelphia vania, was elected in Class B, Group 1, and John C. Tuten, Chairman of the Boards and Chief Executive Officer, National Central Bank and National Central Financial Corporation, Lancaster, Pennsylvania, was elected in Class A, Group 1, on March 13. Richmond Baltimore J. Pierre Bernard, Chairman of the Board, The Annapolis Trust Company, Annapolis, Maryland, was appointed on June 14 to succeed Tilton H. Dobbin, President and Chairman of the Executive Committee, Maryland National Bank, Baltimore, Maryland, who resigned. Atlanta Birmingham Frederick G. Koenig, Jr., President and Chief Executive Officer, Alabama By-Products Corporation, Birmingham, Alabama, resigned on July 11. St. Louis Little Rock Will H. Kelley, Chairman of the Board, The State First National Bank of Texarkana, Arkansas, resigned on September 18. Dallas Houston Carl B. Sherman, President, Houston Lighting and Power Company, Houston, Texas, was appointed on August 18 to succeed R. M. Buckley, President, Eastex Incorporated, Silsbee, Texas, who resigned on April 30. San Francisco Los Angeles Joseph R. Vaughan, President, Knudsen Corporation, Los Angeles, California, was appointed on July 27 to succeed Ruth Handler, President, Mattel, Hawthorne, California, who resigned on April 19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 169 reserve requirements would gradually be phased vide a known and controllable base through which in—for institutions not now subject to Federal the reserve-supplying and reserve-absorbing ac- Reserve requirements. tions of the Federal Reserve can affect the supply Details of the draft legislation are as follows: of money and credit. The different reserve requirements set by the various States do not serve 1. Demand deposits would be subject to a this purpose. reserve requirement, set by the Board, ranging from 5 per cent to 22 per cent. The present Federal Reserve reserve requirements, however, range is from 7 per cent to 22 per cent—from presently apply only to banks that are members 10 to 22 per cent at reserve city banks and of the Federal Reserve System—about 5,700 of from 7 to 14 per cent at other banks. Under 14,000 total commercial banks in the country. the proposal, no distinction would be made between reserve city and other banks. The proportion of demand deposits held by 2. Interest-bearing deposits from which member banks has been declining over the years, withdrawals may be made by negotiable in- however, so that the Federal Reserve's control strument (such as NOW's) would be subject over bank reserves (and the money supply) has to a reserve requirement ranging from 3 per been eroding. In 1960 member banks held about cent to 20 per cent. NOW accounts at member banks in Massachusetts and New Hamp- 83 per cent of the demand deposits that make up shire—the only States where such accounts are the money supply. Presently, about 75 per cent permissible—are at present subject to the re- of the demand deposit component of the money serve requirement that applies to time and supply is held at member banks. Also, the demand savings deposits, which may range from 3 per cent to 10 per cent. deposit component of the money supply has grown 3. There would be no required reserves more rapidly at nonmember banks than at member against the first $2 million of net demand banks, and the rate of growth at nonmember banks deposits and NOW's at nonmember institu- has varied much more from year to year. Since tions. 1960 the demand deposit component of the money 4. Time and savings deposits of member banks would be subject to a reserve require- supply held at nonmember banks has grown by ment ranging from 1 per cent to 10 per cent about 164 per cent, while the growth at member (instead of 3 per cent to 10 per cent as at banks has been about 61 per cent. present). Time and savings deposits of non- In a letter transmitting the draft legislation to member institutions would not be subject to Federal Reserve reserve requirements. Congress, Board Chairman Arthur F. Burns de- 5. Every institution that receives demand scribed the situation in this way: deposits or offers NOW accounts would be required to report its deposit liabilities and Recent trends in nonmember demand derequired reserves, if any, as the Board re- posits and in the development of NOW acquested. counts surely presage a continued, and perhaps 6. Nonmember institutions that would be accelerated, growth of money-type deposits at required to maintain Federal Reserve reserve nonmember financial institutions. No one can requirements would be able to obtain credit be certain at what exact point this growth will through the Federal Reserve discount window, make control over monetary aggregates inefsubject to regulations issued by the Board. fective, but erosion of the reserve base pro- 7. A transition period of 4 years would apply gressively weakens the reliability of our to the total amount of demand deposits held present monetary instruments. by nonmember institutions at the time of en- The proposed legislation extends reserve reactment of the new law. During the first calen- quirements set by the Federal Reserve only to dar year following the date of enactment, an accounts which are directly employed in makinstitution would be required to carry 20 per ing money payments—that is, to demand decent of the required reserve on these base posits and to savings accounts with third party period demand deposits, 40 per cent during the payment features. The proposal does not recsecond year, 60 per cent during the third year, ommend applying Federal reserve require- 80 per cent during the fourth year, and 100 ments to time and savings deposits other than per cent after that. Additions to demand de- NOW accounts. These deposits do in some posits beyond the base period amount would degree serve a money-like function, but they be subject to the full reserve requirement. are not highly active deposits. Also, under present conditions, there do not appear to be 8. The new law would become effective at frequent, or large-scale, shifts of funds back the beginning of the first calendar year followand forth between demand and time (or saving its enactment. ings) accounts. Shifts among demand deposits, NOW accounts, and other time deposits would The essential function of Federal Reserve re- become more prevalent in the future, however. serve requirements is to serve as a fulcrum for The proposed legislation is not intended to monetary policy. Such reserve requirements pro- alter the existing chartering options for banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 institutions, to favor or disadvantage different under the direction of the Federal Open Market types of institutions, or to change the balance Committee. among supervisory authorities. State-chartered The Federal Reserve's reciprocal currency arinstitutions may continue either to join the Federal Reserve System or not, as they choose. rangements (in millions of dollars) are shown in Whether they do or do not—and it is antici- the accompanying table. pated that many would remain outside the System—they would become subject to reserve ISSUANCE OF SPECIAL ROUTING NUMBERS TO requirements set by the Federal Reserve on THRIFT INSTITUTIONS demand deposits and on NOW and similar savings accounts. The Board of Governors announced on February Thus, the specific proposals have been 14, 1974, that the Federal Reserve had begun drawn in such a way as to achieve more precision in monetary control and more equity in authorizing issuance of special routing numbers to competition without altering the diversified thrift institutions. The numbers enable these instibanking and financial structure that now serves tutions to participate, where authorized by State the country. . . . or Federal law, in the System's check clearance and automated clearing-house facilities by routing CHANGE IN SWAP ARRANGEMENTS entries through a Federal Reserve member bank. The Federal Reserve Bank of Boston has au- The Federal Reserve announced on February 1, thorized 103 such "pass-through" clearing 1974, that its reciprocal currency "swap" arnumbers to mutual savings banks and savings and rangement with the Bank of Italy had been inloan associations in Massachusetts and New creased by $1 billion, bringing the total of that Hampshire. In this case, the numbers are used to arrangement to $3 billion. A swap arrangement facilitate the clearing of negotiable orders of withis a renewable, short-term facility under which a drawal (NOW's), which function as checks and central bank agrees to exchange on request its own are written by customers of the thrift institutions currency for the currency of the other party up against their savings accounts. to a specified amount over a specified period of The Congress last fall authorized customers of time. all depository institutions in the two States to write In conjunction with this announcement, Federal the check-like NOW's on interest-paying savings Reserve Chairman Arthur F. Burns said that the accounts. Previously, checks could be written only Federal Reserve System will consider possible against non-interest-paying demand deposits. Auincreases in its other swap lines, as needed. thorization of NOW's created a new type of funds Australian National Bank $ 250 transfer instrument, calling for revision of estab- National Bank of Belgium 1,000 lished clearance practices. The numbers assigned Bank of Canada 2,000 National Bank of Denmark 250 appear as a part of the magnetic ink encoding on Bank of England 2,000 the lower left corner of such instruments. Bank of France 2,000 The Board also said it was authorizing issuance German Federal Bank 2,000 Bank of Italy 3,000 of similar numbers to mutual savings banks and Bank of Japan 2,000 savings and loan associations, as it becomes nec- Bank of Mexico 180 essary, to enable them to make effective use, Netherlands Bank 500 through participating commercial banks, of facili- Bank of Norway 250 Bank of Sweden 300 ties operated by the Federal Reserve in automated Swiss National Bank 1,400 clearing-house arrangements. Bank for International Settlements Such automated clearing-house facilities are in Swiss francs/dollars 600 Other European currencies/dollars 1,250 use in California and Georgia in connection with Total 18,980 electronic funds transfer systems being operated by groups of private banks. The pass-through The $1 billion increase in the Federal Reserve numbers can be used to afford customers of nonarrangement with the Bank of Italy enlarges the bank depository institutions parallel treatment in System's swap network with 14 central banks and the receipt of deposits transferred electronically the Bank for International Settlements to $18.98 through such automated clearing houses. Thrift billion. The Federal Reserve swap network was institutions making use of such special routing initiated in 1962. In all reciprocal currency ar- numbers can enable their customers to receive, for rangements the Federal Reserve Bank of New example, payroll deposits made electronically York acts on behalf of the Federal Reserve System through an automated clearing house, by routing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 171 the deposit through member banks. Wherever tion Act of 1973 (P.L. 93-234). The new legislastatutory authority permits, and automated facili- tion, signed into law by the President December ties exist, these numbers could also be used to 31, 1973, increases the limits of coverage. The accommodate payments arrangements in which Act requires Federal agencies regulating financial customers of thrift institutions agree to allow their institutions to direct institutions subject to their accounts to be debited electronically for contrac- rules: tual obligations, such as home insurance premium, . . . not to make, increase, extend, or renew (after March 2, 1974) any loan secured by rent, mortgage, and utility bill payments. improved real estate, or mobile home, located It should be pointed out that the assignment of or to be located in an area identified by the these routing numbers does not convey any new Secretary (of Housing and Urban Developservices to thrift institutions, but rather facilitates ment) as an area having special flood hazards, more efficient automated provision of those serv- where Federal flood insurance is available, unless ices that thrift institutions and their customers are . . . the property is covered for the term presently receiving. of the loan by flood insurance in an amount The individual identification clearance numbers at least equal to the outstanding principal balfor thrift institutions are being established in the ance or to the maximum limit of coverage . . . under the Act, whichever is less. same manner as numbers identifying banks for check clearance have been established in the past. A similar prohibition affects lending on property The thrift institution—as would a bank desiring in communities located in designated flood hazard a number for routing purposes—requests a number areas unless, by July 1, 1975, such communities from the Rand-McNally Company, in Chicago, are participating in the national flood insurance which assists in administering the numbering sys- program. tem used to sort and route checks. Rand-McNally An exception applies to State-owned property informs the appropriate Federal Reserve Bank of covered under self-insurance satisfactory to the the request and the number assigned, and the Secretary of HUD. The Secretary is required to Reserve Bank authorizes the requesting institution publish lists of states falling within the exemption. to use the number. The number can then be used Other Federal regulatory agencies are publishing for routing purposes in Federal Reserve check similar rules restricting lending under the new processing computers and sorters, and in auto- flood insurance legislation. mated clearing-house computers. ADMISSION OF STATE BANKS TO MEMBERSHIP AMENDMENT TO REGULATION H IN THE FEDERAL RESERVE SYSTEM The Board of Governors has announced a regula- The following banks were admitted to membership tory amendment effective March 2, 1974, prohiin the Federal Reserve System during the period biting State-chartered member banks from lending January 16, 1974, through February 15, 1974: on improved real estate or a mobile home in an identified flood hazard area unless the property is Florida covered by appropriate flood insurance. The re- Kissimmee Marine Bank of Kissimmee striction applies also to such property in any com- Sarasota Palmer Bank of Gulf Gate munity in a designated flood hazard area not par- Mississippi ticipating in the national flood insurance program Poplarville First Citizens Bank and by July 1, 1975. Trust Company of Poplarville In both cases the lending restrictions being Montana added to the Board's Regulation H—dealing with Helena First Security Bank of Helena unsafe, unsound, or illegal banking practices—are Virginia required to implement the Flood Disaster Protec- Springfield Northern Virginia Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication February 15 Industrial production declined an estimated 0.8 per INDUSTRIAL PRODUCTION SEASONALLY ADJUSTED, RATIO SCALE, 1967=100 cent further in January and, at 125.7 per cent of the 1967 average, was 3 per cent above a year earlier. As in December, when the index declined - /-^V TOTAly' 0.6 per cent, there was a sharp decline in auto l l I l assemblies and associated reductions in output of automotive supplying industries, as well as further NONDURABLE ^ cuts in electric and gas consumption by residential MANUFACTURES/^ I _ and commercial users. Other major sectors of the index registered little change or declined. Auto assemblies were cut back 15 per cent V/DMUARNAUBFLAEC TURES further to a seasonally adjusted rate of 6.9 million units. Production schedules for February were set at a 7.0-million-unit rate. Production of household appliances apparently declined in January and output of nondurable consumer goods was also off. Output of business equipment was unchanged at near-record levels. Production of steel mill products was maintained at record levels in January. Production of consumer durable materials parts declined sharply in January, but output of nondurable goods materials changed little. Output of 1968 1970 1972 1974 1968 1970 1972 1974 construction products was down further. F.R. indexes, seasonally adjusted. Latest figures: January. Seasonally adjusted Per cent Per cent changes, annual rate 1967 = 100 changes from- Industrial production 1973 1974 1973 Month Year ago ago Nov.1- Dec.p Jan.6 QII QUI QIV Total 127.5 126.7 125.7 -.8 2.9 5.5 6.1 1.3 Products, total 125.2 124.1 123.0 -.9 1.9 5.3 3.9 1.3 Final products 123.5 122.2 121.1 -.9 2.1 5.0 4.3 2.6 Consumer goods 133.4 130.9 129.2 -1.3 -.5 3.7 1.8 .6 Durable goods 139.0 134.7 130.0 -3.5 -4.4 9.3 -8.8 -3.6 Nondurable goods 131.2 129.5 128.9 -.5 1.2 1.3 6.6 2.2 Business equipment . 127.7 127.3 127.2 -.1 10.9 11.2 8.4 Intermediate products .. 131.4 130.5 129.4 4.6 4.0 -3.2 Construction products 135.4 134.9 134.0 -.7 3.4 7.4 6.9 0 Materials 131.7 131.0 130.3 -.5 4.7 7.0 8.4 r Revised p Preliminary e Estimated Digitized for FRASER 173 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

107 FEDERAL RESERVE BULLETIN • FEBRUARY 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 Earnings and expenses of Federal Reserve Banks, 1973 Number of banking offices: A 98 Analysis of changes A 99 On, and not on, Federal Reserve Par List A 107 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS N.S.A. Monthly (or quarterly) figures not adjusted e Estimated for seasonal variation c Corrected IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities S Sources of funds I, II, U Uses of funds III, IV Quarters * Amounts insignificant in terms of the parn.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. "State and local govt." A heavy vertical rule is used in the following in- also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures "U.S. Govt, securities" may include guaranteed are estimates; and (3) information on other characissues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue 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 Feb. 1974 A-98 On, and not on, Federal Reserve Flows: Par List, number Feb. 1974 A-99 1961-72 Sept. 1973 A-70—A-71.13 Annually Income and expenses: Bank holding companies: Federal Reserve Banks Feb. 1974 A-96—A-97 List, Dec. 31, 1971 June 1972 A-98 Insured commercial banks May 1973 A-96—A-97 Banking offices and deposits of Member banks: group banks, Dec. 31, 1972 June 1973 A-102—A-104 Calendar year May 1973 A-96—A-105 Income ratios May 1973 A-106—A-lll Banking and monetary statistics: Operating ratios June 1973 A-96—A-101 1972 Mar. 1973 A-100—A-114 July 1973 A-96—A-99 Stock market credit Jan. 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 • FEBRUARY 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securities 1 Special ury Drawing cur- Gold Rights rency Held Other stock certificate out- Bought u re n p d u e r r - Loans Float 2 as F se . t R s . 3 Total account st i a n n g d out- chase right agreement Averages of daily figures 1939—Dec 2,510 2,510 83 2,612 17,518 2,956 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3.235 2,204 64,100 10,367 6.841 1970— Dec 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,1 1971—De c 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—De c 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Ja n 72,194 71.711 483 1,165 3,267 1,329 78,063 10,410 400 8,321 Feb 72,307 72,082 225 1,593 2,556 1,004 77,600 10,410 400 8,353 Mar 74,019 73,624 395 1,858 2,387 839 79,219 10,410 400 8,406 Apr 75,353 74,914 439 1,721 2,319 1,043 80,542 10,410 400 8,444 May 76,758 76,205 553 1,786 2,247 960 81,889 10,410 400 8,478 June 75,355 75,047 308 1,789 2,369 942 80,546 10,410 400 8,518 July 77,448 76,875 573 2,051 3,113 1,180 83,880 10,410 400 8,538 Aug 76,653 76,475 178 2,143 2,566 1,018 82,445 10,410 400 8,549 Sept 76,073 75.712 361 1,861 2,924 889 81,809 10,410 400 8,584 Oct 78,042 77,500 542 1,467 2,933 1,122 83,643 10,933 400 8,613 Nov 78,457 77,937 520 1,399 2,763 1.078 83,755 11,567 400 8,642 Dec 79,701 78,833 868 1,298 3,414 1.079 85,642 11,567 400 8,668 1974—Jan. * 80,793 80,608 185 1,045 3,271 1,258 86,455 11,567 400 8,705 Week ending— 1973—Nov. 7 78,007 78,007 1,170 2,194 1,281 82,701 11,567 400 8,626 14 77,154 76,867 287 1,521 r2,642 1,378 r82,749 11,567 400 8,629 21 79,692 78,365 1,327 1,572 2,877 826 85,044 11,567 400 8,650 28 78,886 78,404 482 1,287 3,339 871 84,438 11,567 400 8,659 Dec. 5 79,532 78,232 1,300 1,475 2,500 942 84,569 11,567 400 8,661 12 78,727 78,036 691 1,303 2,580 963 83,673 11,567 400 8,666 19 79,571 78,752 819 1,488 3,353 1,037 85,577 11,567 400 8,668 26 80.087 79,242 845 1,039 4,684 1,229 87,260 11,567 400 8,672 1974—Jan. 2 80,851 80,238 613 1,210 4,073 1,204 87,499 11,567 400 8,682 9 80,880 80,671 209 776 4,399 1,232 87,397 11,567 400 8,683 16* 80,762 80,690 72 989 3,601 1,211 86,633 11,567 400 8,691 23* 80,309 80,202 107 1,182 3,180 1,271 86,008 11,567 400 8,723 30 * 81.088 80,713 375 1,221 2,152 1,329 85,880 11,567 400 8,726 End oi month 1973—No v 79,107 78,203 904 1,915 2,124 916 84,133 11,567 400 8,684 80,495 80,395 100 1,258 3,099 1,152 86,072 11,567 400 8,716 Dec 80,167 80,167 959 2,240 1,329 84,763 11,567 400 8,729 1974—Jan. * Wednesday 77,207 9 11,201 840 2,997 1,315 82,406 11,567 400 8,626 1973—Nov. 174 79,417 9 77,406 2,011 3,992 3,146 1,375 88,036 11,567 400 8,630 21 80,862 8 78,441 2,421 1,385 3,649 859 86,873 11,567 400 8,656 28 79,466 8 78,507 959 1,486 3,750 923 85,685 11,567 400 8,661 Dec. 5 79,639 8 78,203 1,436 687 3,883 970 85,357 11,567 400 8,664 12 78,206 9 77,590 616 1,581 3,097 1,056 84,039 11,567 400 8,668 19 81,965 8 79,223 2,742 1,569 5,198 1,063 90,035 11,567 400 8,668 26* 76,740 9 76,740 485 5,593 1,964 84,843 11,567 400 8,675 1974—Jan. 2 9 *3 5 7 82 9 , , 6 2 4 3 1 2 9 8 8 7 0 9 , , 6 2 6 3 7 2 1,974 2,1 9 0 9 3 3 4 5 , , 5 9 4 1 1 2 1 1 , ,2 4 0 4 2 4 9 8 1 7 , , 0 3 1 8 8 5 1 1 1 1 , , 5 5 6 6 7 7 4 4 0 0 0 0 8 8 , , 6 6 7 8 7 5 16 p 81,175 8 80,671 504 1,239 4,246 1,310 88,078 11,567 400 8,720 23* 81,251 8 80,501 750 2,664 3,069 1,294 88,353 11,567 400 8,723 30* 81,922 8 80,742 1,180 1,601 2,224 1,373 87,270 11,567 400 8,729 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, on Wed. and end-of-month dates, see tables on F.R. Banks on following 1971. pages. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- BULLETIN, p. 164. owned banking institutions held with member banks and redeposited in 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

FEBRUARY 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 - Tr u e r a y s - F ei o g r n - Other 2,5 counts3 ca a p n it d a l3 B W F a . n i R t k h . s r c C a e o n u n in d c r y - 6 Total 7 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. 6 7 5 5 6 6 1,1 3 9 6 4 0 2 1 2 4 5 6 4 4 5 5 8 8 -1,105 2,192 2 2 3 2 , , 0 4 7 8 1 4 4 4 , , 7 9 3 6 7 0 2 2 8 7 , , 0 2 3 2 1 1 1 1 9 9 6 6 9 8 — — D D e ec c . . 427 849 145 735 2,265 23,925 5,340 29,265 1970—Dec. 453 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 > 752 2,866 28,457 6,371 34,912 Oct. 340 1,772 522 i 689 2,854 28,260 6,383 34,727 Nov. 323 1,892 406 ' 717 2,942 28,352 6,635 35,068 Dec. 349 2,488 427 2,904 29,283 7,193 36.543 1974—Jan.* Week ending— 3 3 3 3 3 6 8 3 4 2 1 1 , , , 0 9 1 8 4 2 7 6 0 3 5 5 3 8 5 2 0 7 55 5 6 6 79 6 26 2 2 2 2 2 , , , 7 7 9 3 2 1 8 6 3 r2 2 2 8 9 8 , , , 0 0 0 4 0 6 0 9 2 r6 6 5 , , , 7 4 9 4 7 9 7 9 7 r3 3 3 4 4 5 , , , 8 6 0 7 2 9 1 5 0 1973—Nov. 2 1 1 7 4 329 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 28,574 6,545 35,203 19 328 2,228 531 5 694 3,047 28,838 6,508 35,430 26 331 2,254 331 5 978 2,977 28,808 6,781 35,656 1974—Jan. 2 329 2,344 544 5 699 2,776 29,499 6,730 36,296 9 350 2,170 318 5 706 2,850 29,682 7,893 37,642 16* 363 2,351 398 5 709 2.959 29,336 7,178 36,581 23* 359 3,099 494 5 646 3,059 28,985 7,099 36,151 30* End of month 317 1,945 420 5 672 3,025 28,108 6,400 34,592 1973—Nov. 317 2,542 251 5 1,419 2,669 27,060 6,781 33,908 Dec. 352 2,844 392 3,101 28,253 6,987 35,307 1974—Jan.* Wednesday 353 1,557 413 5 654 2,679 27,717 6,479 34,280 343 1,530 552 5 697 2,808 32,547 6,745 39,376 1973—Nov. 7 333 1,404 759 5 662 2,988 30,828 5,997 36,909 14 333 2,001 516 5 645 3,029 29,133 6,286 35,503 21 28 333 1,705 369 5 716 2,720 29,169 6,400 35,653 Dec. 5 335 1,524 297 5 632 2,801 27,374 6,912 34,370 12 303 2,092 283 5 670 2,986 32,212 6,545 38,841 19 321 2,716 729 5 593 3,021 25,361 6,508 31,953 26* 330 1,985 309 5 713 2,758 33,111 6,781 39,959 1974—Jan. 2* 356 2,880 543 5 705 2,777 29,096 6,730 35,893 9* 370 1,851 239 5 650 2,948 31,621 7,893 39,581 16* 368 2,898 713 5 693 3,001 30,990 7,178 38,235 23* 370 3,013 485 5 668 3,103 30,350 7,099 37,516 30* 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed included are (beginning with first statement week of quarter): Ql, $279 thereafter. Beginning with Jan. 1963, figures are estimated except for million; Q2, $172 million; Q3, $112 million; Q4, $84 million. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 8 Includes securities loaned—fully secured by U.S. Govt, securities of-business figures for reserve period 2 weeks previous to report date. pledged with F.R. Banks. 7 Beginning with week ending Nov. 15, 1972, includes $450 million of 9 Includes securities loaned—fully secured by U.S. Govt, securities reserve deficiencies on which F.R. Banks are allowed to waive penalties pledged with F.R. Banks. Also reflects securities sold, and scheduled to for a transition period in connection with bank adaptation to Regulation J be bought back, under matched sale/purchase transactions. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS • FEBRUARY 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 Total Re- Excess1 Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- Excess Borrowheld1 quired sonal ings ings ings ings 1939 Dec 11 473 6666,,,,444466662222 55,,001111 3 22,,661111 540 1,188 671 3 1941 Dec 11112222,,,,888811112222 9999,,,,444422222222 33,,339900 5 998899 295 11,,330033 1 804 4 1945 Dec 11116666,,,,000022227777 11114444,,,,555533336666 111,,,444999111 334 48 192 14 441188 96 1,011 46 1950—Dec 11117777,,,,333399991111 11116666,,,,333366664444 111,,,000222777 142 125 58 8 5 232 50 663 29 I960—Dec 11119999,,,,222288883333 111111111111888888888888,,,,,,,,,,,,555555555555222222222222777777777777 777555666 87 29 19 4 8 100 20 623 40 1965—Dec 2222222222,,,,,777771111199999 222222222222222222222222,,,,,,,,,,,,222222222222666666666666777777777777 452 454 41 111 15 23 67 228 330 92 1967—Dec 2222255555,,,,,222226666600000 222222222222444444444444,,,,,,,,,,,,999999999999111111111111555555555555 345 238 18 40 8 13 50 105 267 80 1968 Dec 2222277777,,,,,222222222211111 222222222222666666666666,,,,,,,,,,,,777777777777666666666666666666666666 455 765 100 230 15 85 90 270 250 180 1969—Dec 2222288888,,,,,000003333311111 222222222222777777777777,,,,,,,,,,,,777777777777777777777777444444444444 257 11,,008866 56 259 18 27 6 479 177 321 1970—Dec 2222299999,,,,,222226666655555 222222222222888888888888,,,,,,,,,,,,999999999999999999999999333333333333 272 332211 34 25 7 4 42 264 189 28 11997711——DDee cc 33333331111111,,,,,,,333333322222229999999 333333333333111111111111,,,,,,,,,,,,111111111111666666666666444444444444 165 107 25 35 1 8 -35 22 174 42 11997722——DDee cc 33333331111111,,,,,,,333333355555553333333 333333333333111111111111,,,,,,,,,,,,111111111111333333333333444444444444 219 1,049 -20 301 13 55 -42 429 -160 264 1973 Jan 33333332222222,,,,,,,999999966666662222222 333333333333222222222222,,,,,,,,,,,,666666666666222222222222000000000000 342 1111,,,,111166665555 95 193 2 108 — 33 578 -1 286 Feb 33333331111111,,,,,,,777777744444442222222 333333333333111111111111,,,,,,,,,,,,555555555555333333333333777777777777 205 1111,,,,555599993333 -13 324 105 -33 693 -28 471 33333331111111,,,,,,,999999977777773333333 333333333333111111111111,,,,,,,,,,,,666666666666777777777777888888888888 295 1111,,,,888855558888 72 176 -6 102 7 857 -47 723 33333332222222,,,,,,,222222277777777777777 333333333333222222222222,,,,,,,,,,,,111111111111222222222222555555555555 152 1111,,,,777722221111 5 38 146 8 9 -111 828 45 738 May 33333332222222,,,,,,,333333399999993333333 32,275 118 1,786 30 -35 110 6 12 -65 881 40 783 June 32,028 31,969 59 1,789 77 -62 145 -4 28 -78 904 37 712 July 33,542 33,199 343 2,051 124 144 135 22 67 -23 855 88 994 Aug 33333333333333,,,,,,,777777788888885555555 3333,,553399 246 2,143 163 37 109 -7 53 6 754 98 1,227 Sept 33333334444444,,,,,,,000000011111119999999 3333,,778822 237 1,861 147 -7 115 24 62 31 712 81 972 Oct 33333334444444,,,,,,,999999911111112222222 34,712 200 1,467 126 11 74 1 54 -11 589 115 750 33333334444444,,,,,,,777777722222227777777 3344,,552233 204 1,399 84 27 180 -24 28 -19 593 136 598 Dec 33333335555555,,,,,,,000000066666668888888 3344,,880066 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Jan.f 33333336666666,,,,,,,555555544444443333333 3366,,339966 147 11,,004455 18 53 135 -48 17 -67 543 142 350 Week ending— 1973 Jan 3 333333333222222222,,,,,,,,,666666666000000000444444444 333333222222,,,,,,000000444444444444 560 11,,775511 149 713 10 279 83 525 39 234 10 333333333222222222.........555555555000000000666666666 333333222222,,,,,,333333888888000000 126 668888 -21 66 -10 19 -107 420 -15 183 17 333333333444444444,,,,,,,,,000000000000000000999999999 333333333333,,,,,,666666666666888888 341 1111,,,,222299998888 46 201 17 189 -24 635 23 273 24 333333333222222222,,,,,,,,,555555555111111111111111111 333333222222,,,,,,555555444444555555 -34 1111,,,,000099997777 -82 226600 -26 19 -165 511 -40 307 31 333333333222222222,,,,,,,,,555555555555555555666666666 333333222222,,,,,,111111000000333333 453 1111,,,,333300009999 204 15 110 -10 806 -35 393 1973—July 4 333333333333333333,,,,,,,,,333333333222222222888888888 333333222222,,,,,,666666999999777777 631 2222,,,,444400002222 111 190 454 57 195 103 917 169 836 11 333333333222222222.........555555555000000000777777777 333222,,,555222777 -20 1,680 117 -131 115 -51 28 -52 759 102 778 18 333333333333333333,,,,,,,,,777777777222222222333333333 333333,,,222666222 461 11,,772200 117 232 -2 13 10 851 109 856 25 333333333333333333,,,,,,,,,888888888222222222777777777 333333,,,777999333 34 22,,008811 128 -150 50 56 24 -26 842 42 1,165 333333444444,,,,,,000000555555111111 333333333333333333,,,,,,,,,555555555555555555222222222 499 22,,009955 141 266 12 88 -5 785 114 1,222 8 333333333333,,,,,,444444555555555555 333333333333333333,,,,,,,,,333333333888888888111111111 74 22,,000066 158 -40 90 24 41 -68 741 46 1,134 15 333333333333,,,,,,888888222222777777 333333333333333333,,,,,,,,,555555555111111111111111111 316 1,914 148 24 50 -3 54 21 656 162 1,154 22 333333333333,,,,,,666666000000000000 333333333333333333,,,,,,,,,555555555555555555888888888 42 2,133 163 -24 172 2 36 -84 712 36 1,213 29 333333333333,,,,,,777777999999666666 333333333333333333,,,,,,,,,666666666777777777333333333 123 2,561 185 -47 137 -21 68 2 948 77 1,408 Sept. 5 333333444444,,,,,,111111222222111111 333333333333333333,,,,,,,,,666666666444444444444444444 477 2,363 168 201 143 29 117 29 799 106 1,304 12 33333333333333,,,,,,,555555522222225555555 333333333333333333,,,,,,,,,444444444000000000111111111 124 11,,448888 145 -46 •32 -5 20 -38 590 101 846 19 33333333333333,,,,,,,888888866666660000000 333333333333333333,,,,,,,,,777777777222222222444444444 136 11,,770044 139 -4 91 3 15 -40 758 65 840 26 33333334444444,,,,,,,111111144444444444444 333333333444444444,,,,,,,,,000000000777777777000000000 74 2,189 150 -21 217 27 127 -80 855 36 990 Oct. 3 33333334444444,,,,,,,666666677777772222222 333444,,,222222000 452 1,519 144 88 43 7 41 130 463 143 972 10 33333334444444,,,,,,,777777799999995555555 333444,,,333999555 400 1,351 131 128 43 1 9 10 535 177 764 17 33333335555555,,,,,,,000000011111115555555 333555,,,111000666 -91 1,169 120 -158 26 -9 58 -81 520 73 565 24 33333335555555,,,,,,,111111111111111111111 34,741 370 1,912 125 131 185 7 66 40 901 108 760 31 33333334444444,,,,,,,999999944444448888888 34,817 131 1,455 119 -69 72 30 81 1 473 85 829 Nov. 7 33333334444444,,,,,,,666666622222225555555 333444,,,333666000 265 1,170 93 102 192 -54 12 -8 383 141 583 14 rrrrrrr33333334444444,,,,,,,88888887777777lllllll rrr333444,,,777222555 r 146 11,,552211 80 -92 262 61 r 29 r 716 r 125 r 482 21 33333335555555,,,,,,,000000099999990000000 333444,,,777000666 384 11,,557722 85 111 224 2 15 65 625 122 708 28 33333334444444,,,,,,,444444422222228888888 3333333333344444444444,,,,,,,,,,,333333333334444444444433333333333 85 1,287 84 -56 94 -13 28 -33 541 103 624 Dec 1 5 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4444444 4444444 ,,,,,,, ,,,,,,, 9999999 4444444 0000000 4444444 2222222 4444444 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 44444444444 44444444444 ,,,,,,,,,,, ,,,,,,,,,,, 44444444444 44444444444 55555555555 77777777777 66666666666 22222222222 - 4 2 4 8 6 11 11 ,, ,, 44 33 77 00 55 33 4 5 5 7 -1 1 3 6 9 8 ioi -2 1 3 5 1 1 1 1 -3 2 7 9 8 76 8 9 9 1 8 5 7 0 4 5 2 7 1 5 19 33335555,,,,222200003333 3333333333344444444444,,,,,,,,,,,888888888889999999999922222222222 311 111,,,444888888 40 137 116633 29 -34 837 95 488 26 33335555,,,,444433330000 3333333333344444444444,,,,,,,,,,,999999999995555555555588888888888 472 111,,,000333999 35 106 30 81 676 171 363 1974—Jan. 2 33335555,,,,666655556666 3333333333355555555555,,,,,,,,,,,222222222226666666666688888888888 388 111,,,222111000 31 80 140 -6 141 24 599 223 330 9 33336666,,,,222299996666 3333333333366666666666,,,,,,,,,,,222222222221111111111100000000000 86 776 19 2 271 -47 44 -96 174 160 287 \6P 33337777,,,,666644442222 3333333333377777777777,,,,,,,,,,,333333333332222222222211111111111 321 989 20 54 45 11 31 679 158 265 23P 33336666,,,,555588881111 3333333333366666666666,,,,,,,,,,,666666666667777777777755555555555 -94 111,,,111888222 13 -141 183 -12 -126 627 118 372 30p 33336666,,,,111155551111 3333333333355555555555,,,,,,,,,,,888888888887777777777755555555555 227766 111,,,222222111 1177 9999 2200 --5522 3311 773344 131 446677 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): QI, $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

FEBRUARY 1974 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— Excess r a o t B w o F i r n . - R gs . F i b e n N d a t e n e e t r r k - a l S d u e r o f p r ic lu it s r P e e q a r u o v c f i g r e . e n d t ch P a u s r e - s t a w c t T r o t o i a - o t n w n a s l s a - y 2 b c o h P u f a y u n i s r n e e - t g s s o b S e f a l a l n n l i e n k e s g s t d L ea o t l a o e n r s s 3 de f r B i a r n o o o l w g e r m s r - - s4 lo N a e n t s Banks funds reserves banks trans. Total—46 banks Dec. 5 178 322 12,076 -12,219 80.5 18,089 6,013 5,041 13,048 972 1,801 669 1,132 12 9 531 14,409 -14,732 98.0 20,065 5,655 4,936 15,129 720 2,067 523 1,545 19 40 768 14,949 -15,677 100.5 20,537 5,588 5,028 15,509 561 2,322 503 1,819 26 333 180 14,190 -14,037 90.8 19,890 5,700 4,987 14,903 713 2,660 446 2,214 Jan. 2 183 605 13,536 -13,536 89.1 20,164 6,629 5,743 14,421 886 2,732 563 2,169 9 21 357 15,414 -15,750 96.1 21,147 5,733 4,787 16,360 946 2,460 420 2,040 16 30 321 17,150 -17,441 102.1 22,323 5,173 4,430 17,894 744 2,329 465 1,864 23 -99 420 18,338 -16,857 102.3 21,005 4,667 4,141 16,864 526 2,309 502 1,807 30 18 415 13,483 -13,880 87.7 19,504 6,021 4,773 14,732 1,249 1,919 542 1,377 8 in New York City 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 Jan. 2 126 127 4,417 -4,418 69.2 5,560 1,144 1,144 4,416 1,803 343 1,460 9 40 230 4,945 -5,135 76.7 5,823 878 878 4.945 1,642 222 1,420 16 23 6,212 -6,189 88.8 6,955 744 744 6,212 1,663 302 1,361 23 -70 176 4,624 -4,870 72.7 5,732 748 748 4,625 1,555 308 1,247 30 29 15 3,243 -3,229 50.9 4,582 1,339 1,204 3,378 135 1,263 286 976 38 outside New York City Dec. 5. 29 322 8,302 -8,594 95.4 13,403 5,101 4,129 9,274 972 603 318 285 12. 28 429 9,650 -10,051 110.1 14,476 4,825 4,106 10,370 720 638 189 449 19. -46 606 10,009 -10,661 115.4 14,749 4,740 4,180 10,570 561 649 174 475 26. 145 180 9,246 -9,281 100.7 14,047 4,801 4,088 9,959 713 991 172 819 Jan. 2. 57 478 9,119 -9,541 102.8 14,604 5,485 4,599 10,005 886 929 220 709 9. -19 127 10,469 -10,615 109.6 15,324 4,855 3,909 11,415 946 819 198 621 16. 8 321 10,939 -11,252 111.2 15,368 4,430 3,686 11,682 744 667 163 503 23. -30 244 11,713 -11,987 122.6 15,633 3,919 3,393 12,239 526 754 194 560 30. -11 400 10,240 -10,651 112.3 14,922 4,682 3,569 11,354 1,114 657 256 401 5 in City of Chicago Dec. 5. 14 3,455 -3,442 232,7 4,386 931 859 3,527 356 356 1 1 9 2 . . - - 2 7 3 11 4 3 , , 0 8 8 3 5 8 - -4 3 , , 1 8 0 5 8 6 2 2 5 4 1 7 . . 3 3 4 4 , , 7 5 6 7 6 0 6 73 8 2 1 6 73 8 2 1 4 3 , , 0 8 8 3 4 8 4 3 0 6 5 6 4 3 0 6 5 6 26. 57 3,208 -3,151 206.1 4,007 799 727 3,281 364 364 Jan. 2. 41 141 3,072 -3,172 202.3 3,870 797 797 3,073 435 436 9. -16 44 3,686 -3,745 216.4 4,607 922 922 3,685 396 396 16. 8 3,984 -3,976 211.3 4,827 843 828 3,999 364 364 23. 15 4,513 -4,498 258.6 5,185 672 672 4,513 382 382 30. -14 4,101 -4,116 251.7 4,830 729 693 4,138 343 343 33 others Dec. 5. 16 322 4,847 -5,153 68.4 9,018 4,171 3,270 5,747 901 247 318 -71 12. 35 418 5,812 -6,196 81.8 9,906 4,094 3,374 6,532 720 233 189 44 19. -23 606 5,924 -6,553 86.2 9,983 4,059 3,498 6,485 561 283 174 109 26. 89 180 6,038 -6,130 79.7 10,040 4,002 3,361 6,679 641 627 172 455 Jan. 2. 16 338 6,047 -6,369 82.6 10,735 4,688 3,802 6,932 886 493 220 273 9. -3 84 6,783 -6,870 86.4 10,717 3,933 2,987 7,729 946 423 198 224 16. 321 6,955 -7,276 88.3 10,541 3,586 2,858 7,683 728 302 163 139 23. -44 244 7,201 -7,489 93.2 10,448 3,247 2,721 7,727 526 372 194 178 30. -3 400 6,139 -6,535 83.3 10,092 3,954 2,876 7,216 ,078 314 256 58 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 • FEBRUARY 1974 CURRENT RATES (Per cent per annum) Loans to member banks— LLooaannss ttoo aallll ootthheerrss uunnddeerr Under Sees. 13 and 13a 1 Under Sec. 10(b) 2 llaasstt ppaarr.. SSeecc.. 1133 33 FFFeeedddeeerrraaalll RRReeessseeerrrvvveee BBBaaannnkkk J R a a 1 n t 9 . e 7 4 3 o 1 n , Ef d fe a c t t e i ve Pre ra v t i e o us R Ja a 1 n t 9 . e 7 4 3 o 1 n , Ef d fe a c t t e i ve Pr r e a v t i e o us J R a a 1 n t 9 . e 7 4 3 o 1 n , Ef d fe a c t t e i ve Pr r e a v t i e o us N Bo ew st o Y n ork 7 m 1 /2 A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 7 7 8 8 A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 m m 49 9 i i / / 2 i A A u u g g . . 2 1 3 4 , , 1 1 9 9 7 7 3 3 9 9 Philadelphia 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 m 91/i Aug. 14, 1973 9 Cleveland m Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 9i/i Aug. 14, 1973 9 R A i t c la h n m ta o nd m 71 /2 A A u u g g . . 1 1 6 4 , , 1 1 9 9 7 7 3 3 7 7 8 8 A A u u g g . . 1 1 6 4 , , 1 1 9 9 7 7 3 3 7 7 1 1 / / 2 2 4 4 9 9 i i / / 2 2 A A u u g g . . 1 1 6 4 , , 1 1 9 9 7 7 3 3 9 9 C M St h . i n i L c n a o e g u a o i p s olis 7 7 m 1 1 / / 2 2 A A A u u u g g g . . . 1 1 1 4 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 7 7 7 8 8 8 A A A u u u g g g . . . 1 1 1 4 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 7 7 m 1 1 / 4 2 4 4 4 9 9 9i i i / / / 2 2 2 A A A u u u g g g . . . 1 1 1 4 4 4 , , , 1 1 1 9 9 9 7 7 7 3 3 3 9 9 9 Kansas City 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 491/2 Aug. 14 1973 9 Dallas 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 491/2 Aug. 14, 1973 9 San Francisco 71/2 Aug. 14, 1973 7 8 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 9 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers' acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 7Vi 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. IV2 IV2 1959—Mar. 1 6 6 2i/ 3 2- 3 3 3 1970—Nov. 1 1 3 1 . . 534-6 6 5 3/4 11995555——AApprr.. 1 1 5 4 l 1 1 V /2 2 - - 1 1 3 V / 4 4 1 IV 34 2 J M u a n y e 2 1 9 2 3 31 -3 / 1 2 /2 3 3 1 1 / / 2 2 Dec. 1 1 6 . . 51/ 5 2 3 -5 4 3 /4 5 5 3 3 4 4 A M u a g y . 4 2 134 13 - / 2 4 1 4 1 1 3 3 4 4 Sept. 1 1 1 8 31 4 /2 -4 4 4 1 4 1 . . 51/ 5 2 1 - / 5 2 3 /4 5 5 1 1 / / 2 2 11995566—— A S AA N e pp u o p rr g v t .. . . . 2 2 2 1 1 1 1 4 0 3 9 3 8 5 2 3 2 2 2 2 2 2 1 1 1 3 3 34 / / 2 2 4 4 4 2 - 1 1 - - - - - - 2 / / 2 3 3 3 2 2 4 2 1 1 1 1 / 4 4 4 2 3 2 2 2 2 2 2 2 2 3 3 1 1 1 1 / / / / 4 4 4 4 2 2 1 1 1 9 9 9 6 6 6 3 0 4 — — — J J A S N u u e u o l p n y g v e t . . . 2 2 1 1 1 1 6 4 2 9 7 0 3 4 , , , , , , , , 3 3 3 3 3 1 i/ 3 3 3 1 /22 - - - 1 1 /2 4 - 3 3 / / 4 1 - 1 2 2 / 4 / 2 2 4 4 3 3 3 3 3 3 1 1 1 V / / / 2 2 2 2 1971—J J F a u e n l b y . . 2 2 2 1 1 1 1 1 2 9 3 9 5 9 8 3 6 . . . . . . . . . 5 5 5 !4 4 4 4 5 5 5 3 1 - 3 3 - - 5 4 / 5 5 4 4 4 i 1 i - - / 5 5 / 4 2 4 5 5 4 5 5 5 5 5 5 1 3 1 1 / 4 4 4 4 31 3 3 30, 4 4 Nov. 11. 434-5 5 1 1 9 95 5 8 7 — — J A D N a u e o n c g v . . . . 2 2 2 1 3 2 4 9 2 5 2 2 3 3 3 3 4 3 3 4 1 - - - - 3 / 3 3 3 2 1 i / / 2 2 2 3 3 3 3 3 1 3 4 /2 1 1 1 9 9 9 6 6 6 7 8 5 — — — A N M D p o e a c r v r . . . . 2 2 1 1 1 0 7 6 7 5 4 3 , , , , , . , 4 4 4 4 1 4 4 4 /2 1 1 - - - - 4 4 4 / / 5 2 2 1 1 1 / / / 2 2 2 4 4 4 4 4 4 4 1 1 1 1 1 / / / / / 2 2 2 2 2 1973— D J A M F a e e p n a b c r r . . . . . 2 2 2 1 1 1 1 4 2 3 7 6 3 9 5 . . . . . . . . , , , 4 4 5 4 5 1 1 3 1 / / 4 / 4 5 5 2 2 2 1 1 - - - - / / 5 4 5 4 2 2 3 3 3 i / 4 4 4 2 4 4 5 4 4 5 5 5 1 1 1 3 1 ^ 3 / / / / 4 4 2 2 2 2 2 Mar. 2 1 1 7 3 2 2 1 1 / 2 4 4 1 - - / 2 3 4 34 2 2 2 1 1 1 / / / 4 4 4 Apr. 2 2 1 2 6 9 , , , 5 5 5 - 1 5 / 1 2 /2 5 5 5 1 1 / / 2 2 May 1 4 8 . .'! 53 6 5 4 3 -6 4 6 6 5 3 /4 A S A M e p u a p r g y t . . . 2 1 1 1 9 3 8 5 2 l l l 3 3 3 4 4 4 2 1 - - - % 2 2 2 i/4 2 2 1 1 l3 / 3 3 4 4 4 D Au ec g . . 2 1 1 3 0 8 6 0 , , , , 5 5V *4 5 5 4 - 1 1 - / 5 5 / 2 1 4 1 / / 2 2 5 5 5 5 1 1 1 1 / / / / 4 2 2 2 J J A u u u n ly g e . 2 1 1 1 3 4 2 5 1 . . . . . , , . 6 7 6 7 7 1 1 - - / / 7 6 2 2 1 1 / /2 2 7 7 6 7 6 1 1 i i / / / / 2 2 2 2 Oct. 24 2 -21/2 2 1969—Apr. 4 51/2-6 6 Nov. 7 21/2 21/2 6 6 In effect Jan. 31, 1974. 71/2 71/2 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

FEBRUARY 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 2,4 Time 3 banks) EEEffffffeeeccctttiiivvveee EEEffffffeeeccctttiiivvveee dddaaattteee 111 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 IIIIII666666111111//////222222 171/2 83 83 85 Jan 1 1963 ... 1166ii//22 1122 4 Nov. 16 111111333333 1966 j S u e iy p t 14 8 2 1 1 5 44 44 5 6 5 6 5 6 1973—July 19 IIIIIddddd/////22222 1111122222VVVVV22222 111111333333111111//////222222 1111188888 1967—Mar 2 3333^^^^2222 33331111////2222 IIIInnnn eeeeffffffffeeeecccctttt Mar 16 3333 3333 JJJJaaaannnn.... 33331111,,,, 1111999977774444 8888 IIIIIOOOOOIIIII/////22222 111112222211111/////22222 1111188888 3333 3333 5555 11996688——JJaann.. 1111,, 1188...... 111666111///222 111777 111222 111222111///222 111111333333111111//////222222 11996699——AApprr 1177 111777 111777111///222 111222111///222 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 Vi 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 • FEBRUARY 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 4% Savings deposits Other time deposits— 1 Other time deposits (multiple- and single- Multiple maturity:2 maturity)— 30-89 days 4 4% Less than $100,000: 9 1 0 y d ea a r y s t o to 2 1 y e y a e r a s r . .. . 5 5 5 % 9 3 0 0 - d 8 a 9 y d s a t y o s 1 year 5 5 Vi 5 Singl 2 e - y m e a a t r u s r o it r y : m ore. .. 5*4 2 1 V y i e y ar e a t r o s 2 o % r m y o e r a e r s 6 6 fc 2 6 * % Less than $100,000— 4 years or more in minimum denom- 3 1 0 y d ea a r y s t o t o 2 1 y e y a e r a s r . .. . 5 V4 5 5 % $100,000 i o n r a m tio o n r e o f $1,000 . ( ( 4 3 ) ) 7 ( 1 3 / ) 4 2 years and over. .. 5% $100,000 or more— 3 6 0 0 - - 5 8 9 9 d d a a y y s s 5% ((33)) 90-179 days 5% 5% 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r e y ear. |61/4 ( (3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such BULLETIN for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 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 6Vi per cent ceiling that applies to time deposits maturing in 2Vi 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 7V4 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 * lA 4 p p e e r r c c e e n n t t ) | June 24, 1970 NOTE.—Maximum rates that may be paid by member banks are estab- 90-179 days 6% per cent ] lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 year 7 per cent [ May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more ll/i 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) 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 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 I960—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. 2 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

FEBRUARY 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 PPPeeerrriiioooddd 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 1970 1111111111111111111111111111111111,,,,,,,,,,,,,,,,,000000000000000007777777777777777744444444444444444 55555555,,,,,,,,222222221111111144444444 2222,,,,111166660000 99999999 -----33333,,,,,444448888833333 888844448888 5555,,,,444433330000 222244449999 ----1111,,,,888844445555 99993333 ----111100002222 1971 88888888888888888,,,,,,,,,,,,,,,,,888888888888888889999999999999999966666666666666666 33333333,,,,,,,,666666664444444422222222 1111,,,,000066664444 1111,,,,000033336666 -----66666,,,,,444446666622222 1111,,,,333333338888 4444,,,,666677772222 999933333333 666688885555 333311111111 111155550000 1972 88888888888888888,,,,,,,,,,,,,,,,,555555555555555552222222222222222222222222222222222 66666666,,,,,,,,444444446666666677777777 2222,,,,555544445555 111122225555 22222,,,,,999993333333333 777788889999 ----1111,,,,444400005555 555533339999 ----2222,,,,000099994444 111166667777 222255550000 1972 Dec 999999999999999994444444444444444411111111111111111 444444449999999988888888 -----111113333355555 1971 Jan 11111111111111111,,,,,,,,,,,,,,,,,888888888888888885555555555555555555555555555555555 555555553333333300000000 Feb 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555588888888888888888 666666669999999955555555 222222222000000000000000000 2255 --11,,440088 6611 33,,447766 7799 --22,,006688 3322 MMaarr.... .... 11111111111111111,,,,,,,,,,,,,,,,,555555555555555556666666666666666699999999999999999 222222226666666600000000 222222222000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,333333333333333337777777777777777777777777777777777 555555555111111111 5500 112277 1199 1111 MMMMMMaaaaaayyyyyy........................ 777777777777777771111111111111111177777777777777777 666666666222222222333333333 666666666000000000000000000 11,,331166 --11,,331166 JJJJJJuuuuuunnnnnneeeeee........................ 11111111111111111,,,,,,,,,,,,,,,,,000000000000000004444444444444444477777777777777777 222222222111111111888888888 111111111666666666333333333 1177 111222333 3377 7788 5511 --7788 JJJJJJuuuuuullllllyyyyyy........................ 11111111111111111,,,,,,,,,,,,,,,,,666666666666666664444444444444444400000000000000000 444444444999999999555555555 666666666000000000 222777 AAAAAAuuuuuugggggg............ ...... ...... 666666666666666665555555555555555555555555555555555 999999999444444444555555555 444444444555555555666666666 333555111 ---999111999 444666888 110000 SSSSSSeeeeeepppppptttttt 444444444444444448888888888888888800000000000000000 444444444000000000111111111 555555555666666666444444444 888333666 ---888111333 ---222333 OOOOOOcccccctttttt 22222222222222222,,,,,,,,,,,,,,,,,111111111111111111111111111111111177777777777777777 111111111555555555333333333 NNNooovvv............ 555555555555555558888888888888888833333333333333333 444444444888888888999999999 111,,,111000111 444111 111...555111555 111222555 666888000 333333111 --22,,222200 3355 2255 DDDeeeccc 11111111111111111,,,,,,,,,,,,,,,,,999999999999999991111111111111111199999999999999999 777777777000000000 111000 777555 333444 111111666 ---333444 333555 Matched Repurchase Federal agency obligations BBaannkkeerrss'' Total outright 1 sale-purchase agreements Net aacccceeppttaanncceess,, transactions (U.S. Govt, change nneett (Treasury bills) securities) in U.S. Outright RReeppuurr-- Govt, cchhaassee securi- aaggrreeee-- Gross Gross Gross ties Gross Sales or mmeennttss,, Repurpur- Gross Redemp- Gross pur- pur- Gross pur- redemp- nneett 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 -145 941 498 135 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 11 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 7 -36 717 623 600 1,105 1,105 7,379 8,240 -1,367 21 -29 -1 -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 2,145 70 10 3,435 3,435 9,523 10,202 1,387 212 84 -126 23 -26 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) E pe n r d i o o d f Total s P t o e u rl n in d g s s A c u h s il t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s a n D kr a o n n is e h r F fr r a e n n c c s h G m e a r r m k a s n Ita li l r i e a n Jap y a e n n ese g N u l e a i t l n h d d e e s r r s - f S r w an is c s s 1969—Dec 1,967 1,575 199 60 125 3* 4 1970—Dec 257 154 98 4 1971—Dec 18 3 2 8 1972—Oct 211 • 164 16 21 Nov 200 * 164 20 7 Dec 192 * 164 20 6 1973—Jan 92 * 67 20 3 Feb 4 * 3 Mar 4 * 3 Apr 4 * 3 May 4 * 3 June.. 4 * 3 July 4 * 3 Aug * 3 Sept 4 * 3 Oct 4 * 33 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS • FEBRUARY 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1974 1974 1973 Jan. 30 Jan. 23 Jan.16 Jan. 9 Jan. 2 Jan. 31 Dec. 31 Jan. 31 Assets 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 Special Drawing Rights certificate account 400 400 400 400 400 400 400 400 305 293 280 266 268 311 271 353 Loans: 1,601 2,664 1,239 2,103 993 959 1,258 1,310 Acceptances: 666777 666555 666555 65 6655 68 68 888222 888333 111000 444333 220055 555999 Federal agency obligations: 111,,,999222777 111,,,999000999 111,,,999222000 1,920 11,,992200 1,927 11,,993377 111,,,333111111 111666000 777222 222222 331122 4422 666111 U.S. Govt, securities: Bought outright: 333777,,,000777555 333666,,,999222999 333777,,,000888888 35,649 37,084 36,500 3366,,889977 333000,,,999888999 38,591 38,514 38,514 38,514 38,514 38,591 38,412 36,681 3,149 3,149 3,149 3,149 3,149 3,149 3,149 3,463 ii 7788,,881155 ii 7788,,559922 ii 7788,,775511 1,277,312 ii 7788,,774477 1 78,240 ii 7788,,445588 11 7711,,113333 HHeelldd uunnddeerr rreeppuurrcchhaassee aaggrreeeemmeennttss 11,,002200 667788 448822 11,,666622 5588 888899 TTTTTTToooooootttttttaaaaaaalllllll UUUUUUU.......SSSSSSS....... GGGGGGGooooooovvvvvvvttttttt,,,,,,, ssssssseeeeeeecccccccuuuuuuurrrrrrriiiiiiitttttttiiiiiiieeeeeeesssssss 79,835 79,270 79,233 77,312 80,409 78,240 78,516 72,022 83,673 83,990 82,522 81,400 83,904 81,194 81,821 74,845 2*7,.577 ^8,906 2*10,800 2*10,500 2*12,943 2*6,792 8,168 8,264 224 224 225 224 223 224 223 194 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr aaaaaaasssssssssssssseeeeeeetttttttsssssss::::::: 7 29 4 1 4 92 1,148 1,069 1,078 1,191 975 1,104 925 1,053 *104,788 2*106,343 2*106,772 2*105,470 2*110,177 2*101,486 103,272 95,504 LLLLLLLiiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss 61,816 62,211 62,909 63,510 64,270 61,687 64,262 56,589 DDDDDDDeeeeeeepppppppooooooosssssssiiiiiiitttttttsssssss::::::: »30,350 2-30,990 2*31,621 2*29,096 2*33,111 2*28,253 27,060 26,727 3,013 2,898 1,851 2,880 1,985 2,844 2,542 2,747 485 713 239 543 309 392 251 310 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr::::::: AAAAAAAllllllllllllll ooooooottttttthhhhhhheeeeeeerrrrrrr 3333333 668 693 650 705 713 657 1,633 674 2*34,516 2*35,294 2*34,361 2*33,224 2*36,118 2*32,146 31,486 30,458 5,353 5,837 6,554 5,959 7,031 4,552 4,855 5,881 994 993 1,034 962 1,043 974 981 675 TTTTTTToooooootttttttaaaaaaalllllll llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss 2*102,679 2*104,335 2*104,858 2*103,655 2* 108,462 2*99,359 101,584 93,603 CCCCCCCaaaaaaapppppppiiiiiiitttttttaaaaaaalllllll aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 884499 884488 884477 884466 884433 885500 844 779977 884444 884444 884444 884444 884444 884444 844 779933 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr cccccccaaaaaaapppppppiiiiiiitttttttaaaaaaalllllll aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 441166 331166 222233 112255 2288 443333 331111 TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss aaannnddd cccaaapppiiitttaaalll aaaccccccooouuunnntttsss p104,788 2*106,343 2*106,772 2*105,470 2*110,177 2*101,486 103,272 95,504 CCCooonnntttiiinnngggeeennnttt llliiiaaabbbiiillliiitttyyy ooonnn aaacccccceeeppptttaaannnccceeesss pppuuurrrccchhhaaassseeeddd fffooorrr 562 575 584 610 579 589 581 198 MMMaaarrrkkkeeetttaaabbbllleee UUU...SSS... GGGooovvvttt,,, ssseeecccuuurrriiitttiiieeesss hhheeelllddd iiinnn cccuuussstttooodddyyy fffooorrr 24,346 24,654 25,478 25,622 26,293 24,592 26,365 30,155 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 67,200 67,498 67,741 67,931 68,055 67,151 68,161 61,931 Collateral held against notes outstanding: 2,485 22,,448855 2,485 2,555 2,555 2,485 2,555 2,021 U.S. Govt, securities 66,485 66,485 66,485 66,435 66,435 66,485 66,335 61,625 Total collateral 68,970 68,970 68,970 68,990 68,990 68,970 68,890 63,646 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

FEBRUARY 1974 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1974 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C l l a e n v d e - m Ri o c n h d - At t l a a n- c C a h g i o - L S ou t. is M ap i o n l n is e - K C s a i a t n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 111111,,,444666000 771111 222,,,222444999 881188 956 11,,111144 776677 22,,442200 116666 119944 444455 446677 11,,115533 Special Drawing Rights certificate account 444000000 2233 999333 2233 33 3366 2222 7700 1155 77 1155 1144 4499 F.R. notes of other banks 111,,,888111000 114444 333555222 8844 141 117744 222266 112200 5588 2288 5522 112299 330022 Other cash 333111111 1199 222999 44 35 3333 4444 3344 2211 1100 3333 1155 3344 Loans: Secured by U.S. Govt, and agency obligations 555999444 1122 111444000 3333 34 7777 9966 4400 2266 77 1144 1155 110000 Other 333666555 22 111555 55 6699 8822 4411 5588 1144 2244 5544 Acceptances: 666888 666888 Federal agency obligations: Bought outright 1,927 88 503 104 145 142 107 297 78 40 79 86 258 U.S. Govt, securities: Bought outright1 178,240 3,558 20,438 4,236 5,874 5,763 4,328 12,068 3,187 1,634 3,189 3,508 10,457 TTTTToooootttttaaaaalllll llllloooooaaaaannnnnsssss aaaaannnnnddddd ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss 8811,,119944 3,660 2211,,116644 4,378 6,053 6,051 4,613 12,446 3,349 1,682 3,296 3,633 10,869 CCCCCaaaaassssshhhhh iiiiittttteeeeemmmmmsssss iiiiinnnnn ppppprrrrroooooccccceeeeessssssssss ooooofffff cccccooooolllllllllleeeeeccccctttttiiiiiooooonnnnn............... 88,,117733 162 11,,442222 339 364 862 810 990 351 414 625 684 1,150 222244 45 1100 27 14 15 16 14 35 17 12 8 OOOOOttttthhhhheeeeerrrrr aaaaasssssssssseeeeetttttsssss::::: DDDDDeeeeennnnnooooommmmmiiiiinnnnnaaaaattttteeeeeddddd iiiiinnnnn fffffooooorrrrreeeeeiiiiigggggnnnnn cccccuuuuurrrrrrrrrreeeeennnnnccccciiiiieeeeesssss.......... 22 11 AAAAAllllllllll ooooottttthhhhheeeeerrrrr 11,,110044 49 331133 57 77 81 59 156 42 26 40 47 157 TTTTToooootttttaaaaalllll aaaaasssssssssseeeeetttttsssss 104,677 4,813 25,633 5,714 7,686 8,365 6,556 16,252 4,016 2,396 4,523 5,001 13,722 LLLLLiiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss FFFFF.....RRRRR..... nnnnnooooottttteeeeesssss 6633,,449977 33,,113311 1155,,668899 44,,000000 5,103 55,,668877 33,,333311 1100,,554488 22,,554411 11,,114488 22,,446600 22,,338899 77,,447700 DDDDDeeeeepppppooooosssssiiiiitttttsssss::::: MMMMMeeeeemmmmmbbbbbeeeeerrrrr bbbbbaaaaannnnnkkkkk rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 2288,,225533 11,,008866 66,,779999 11,,007755 1,848 11,,559944 22,,222266 44,,007722 889988 777722 11,,227711 11,,883366 44,,777766 UUUUU.....SSSSS..... TTTTTrrrrreeeeeaaaaasssssuuuuurrrrreeeeerrrrr—————GGGGGeeeeennnnneeeeerrrrraaaaalllll aaaaaccccccccccooooouuuuunnnnnttttt.......... 22,,884444 220011 664433 118844 157 228800 115522 225599 117777 5566 113300 118899 441166 339922 1155 33 111177 1188 33 2211 2277 5588 1133 88 1155 2200 4477 OOOOOttttthhhhheeeeerrrrr::::: AAAAAllllllllll ooooottttthhhhheeeeerrrrr55555 665577 44 555566 2244 1155 1144 77 22 22 22 77 2244 TTTTTToooooottttttaaaaaallllll ddddddeeeeeeppppppoooooossssssiiiiiittttttssssss 32,146 1,306 8,115 1,301 2,038 1,910 2,419 4,396 1,090 838 1,418 2,052 5,263 DDDDDDeeeeeeffffffeeeeeerrrrrrrrrrrreeeeeedddddd aaaaaavvvvvvaaaaaaiiiiiillllllaaaaaabbbbbbiiiiiilllllliiiiiittttttyyyyyy ccccccaaaaaasssssshhhhhh iiiiiitttttteeeeeemmmmmmssssss 5,933 244 1,037 253 286 570 600 825 274 340 520 406 578 974 44 251 52 76 71 58 146 39 22 39 43 133 OOOOOOtttttthhhhhheeeeeerrrrrr lllllliiiiiiaaaaaabbbbbbiiiiiilllllliiiiiittttttiiiiiieeeeeessssss aaaaaannnnnndddddd aaaaaaccccccccccccrrrrrruuuuuueeeeeedddddd ddddddiiiiiivvvvvviiiiiiddddddeeeeeennnnnnddddddssssss 102,550 4,725 25,092 5,606 7,503 8,238 6,408 15,915 3,944 2,348 4,437 4,890 13,444 TTTTTToooooottttttaaaaaallllll lllllliiiiiiaaaaaabbbbbbiiiiiilllllliiiiiittttttiiiiiieeeeeessssss CCCCCCaaaaaappppppiiiiiittttttaaaaaallllll aaaaaaccccccccccccoooooouuuuuunnnnnnttttttssssss 850 35 215 41 76 48 63 134 28 20 35 46 109 CCCCCCaaaaaappppppiiiiiittttttaaaaaallllll ppppppaaaaaaiiiiiidddddd iiiiiinnnnnn 844 34 215 42 74 47 62 132 29 20 35 46 108 433 19 111 25 33 32 23 71 15 8 16 19 61 OOOOOOtttttthhhhhheeeeeerrrrrr ccccccaaaaaappppppiiiiiittttttaaaaaallllll aaaaaaccccccccccccoooooouuuuuunnnnnnttttttssssss 104,677 4,813 25,633 5,714 7,686 8,365 6,556 16,252 4,016 2,396 4,523 5,001 13,722 TTTTTToooooottttttaaaaaallllll lllllliiiiiiaaaaaabbbbbbiiiiiilllllliiiiiittttttiiiiiieeeeeessssss aaaaaannnnnndddddd ccccccaaaaaappppppiiiiiittttttaaaaaallllll aaaaaaccccccccccccoooooouuuuuunnnnnnttttttssssss............ CCCCCCoooooonnnnnnttttttiiiiiinnnnnnggggggeeeeeennnnnntttttt lllllliiiiiiaaaaaabbbbbbiiiiiilllllliiiiiittttttyyyyyy oooooonnnnnn aaaaaacccccccccccceeeeeeppppppttttttaaaaaannnnnncccccceeeeeessssss ppppppuuuuuurrrrrrcccccchhhhhhaaaaaasssssseeeeeedddddd ffffffoooooorrrrrr ffffffoooooorrrrrreeeeeeiiiiiiggggggnnnnnn ccccccoooooorrrrrrrrrrrreeeeeessssssppppppoooooonnnnnndddddd-----eeeeeennnnnnttttttssssss 589 24 4 150 29 52 33 43 93 20 14 24 32 75 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 6677,,115511 33,,332277 16,577 44,,008866 55,,338855 55,,995599 3,705 1100,,998877 22,,669900 1,198 2,600 22,,556699 8,068 Collateral held against notes outstanding: Gold certificate account 22,,448855 117755 440000 335500 770000 770000 115555 55 UU..SS.. GGoovvtt,, sseeccuurriittiieess 6666,,448855 33,,223300 16,850 33,,880000 55,,220000 55,,339900 3,900 1100,,660000 22,,662200 1,240 2,700 22,,665555 8,300 TToottaall ccoollllaatteerraall 68,970 3,405 16,850 4,200 5,550 6,090 3,900 11,300 2,775 1,240 2,700 2,660 8,300 1 See note 8 on p. A-5. 4 After deducting $439 million participations of other Federal Reserve 2 After deducing $0 million participations of other Federal Reserve Banks. Banks. 5 See note 5 on p. A-4. 3 After deducting $275 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 • FEBRUARY 1974 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 Jan. 30 Jan. 23 Jan. 16 Jan. 9 Jan. 2 Jan. 31 Dec. 31 Jan. 31 Loans—Total 1,601 2,664 1,239 2,103 993 959 1,257 1,310 Within 15 days 1,592 2,655 1,230 2,093 973 940 1,250 1,307 16 days to 90 days. 9 9 10 20 19 7 3 91 days to 1 year.. Acceptances—Total.. 150 75 108 65 270 68 68 141 Within 15 days.. .. 109 33 63 20 220 28 19 80 16 days to 90 days. 41 42 45 45 50 40 49 61 91 days to 1 year.. U.S. Government securities—Total. 79,835 79,270 79,233 77,312 80,409 78,240 78,516 72,022 Within 15 daysi 7,042 5,816 5,701 4,664 7,918 4,869 4,495 7,277 16 days to 90 days 19,192 19,982 19,587 19,394 18,717 18,668 20,352 15,674 91 days to 1 year 21,131 21,079 21,552 20,861 21,381 22,233 21,369 16,933 Over 1 year to 5 years 23,128 23,128 23,128 23,128 23,128 23,128 23,035 24,484 Over 5 years to 10 years 7,580 7,503 7,503 7,503 7,503 7,580 7,503 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. 2,087 1,981 1,942 1,920 2,232 1,927 1,980 1,372 Within 15 days1 199 121 43 11 312 39 60 61 16 days to 90 days 104 104 94 104 115 104 115 55 91 days to 1 year 234 234 282 282 282 234 282 199 Over 1 year to 5 years 819 791 787 787 787 819 787 597 Over 5 years to 10 years 492 492 497 497 497 492 497 269 Over 10 years 239 239 239 239 239 239 239 191 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) Period SM T 2 o S 3 t 3 A a l ' s N Le .Y ad . ing 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 S 3 t 3 A a l ' s L N e .Y ad . ing 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—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 3.631.7 589.1 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.. 18.388.6 8,137.2 4.413.5 251.3 5.837.8 109.5 265.3 116.3 74.7 58.8 Nov.: 19,050.0 8.437.9 4,515.5 612.0 6,096.5 113.2 274.9 118.5 77.1 61.3 Dec.. 18,618.3 8.097.7 4,433.1 520.6 6,087.5 109.9 269.8 113.5 75.5 60.6 1 Excludes interbank and U.S. Govt, demand deposit accounts. NOTE.—Total SMSA's includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir - tion i Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 195 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 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 196 5 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 196 6 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 196 7 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 196 8 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 196 9 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 197 0 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 197 1 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 4 1972—Dec. 66,516 45,105 7,287 2,523 135 3,449 9,827 21,883 21,411 5,868 15,118 193 225 2 4 1973—Jan.. 64,312 43,133 7,274 2,380 135 3,218 9,243 20,883 21,179 5,742 15,013 192 224 2 4 Feb. 64,696 43,431 7,290 2,370 135 3,213 9,330 21,091 21,266 5,755 15,089 192 224 2 4 Mar. 65,180 43,699 7,320 2,368 135 3,209 9,352 21,314 21,482 5,787 15,274 191 223 2 4 Apr. 66,094 44,313 7,382 2,406 135 3,234 9,447 21,707 21,781 5,887 15,476 190 222 2 4 May 67,161 45,074 7,446 2.439 135 3,302 9,613 22,138 22,088 5,974 15,697 189 221 2 4 June 67,771 45,428 7,498 2,433 135 3,309 9,648 22,405 22,343 6,024 15,903 189 220 2 4 July. 68,223 45,564 7,542 2.440 135 3,301 9,602 22,544 22,659 6,116 16,130 188 219 2 4 Aug. 68,376 45,553 7,577 2,430 135 3,288 9,566 22,557 22,822 6,149 16,261 188 219 2 4 Sept. 68,217 45,398 7,597 2,435 135 3,288 9,505 22,437 22,819 6,112 16,296 187 218 2 4 Oct.. 69,043 45,927 7,644 2,480 135 3,333 9,616 22,718 23,116 6,182 16,524 186 217 2 4 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 4 Dec. 72,497 48,288 7,759 2,639 135 3,614 10.226 23,915 24,210 6,514 17,288 185 216 2 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- NOTE.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 TTToootttaaalll,,, ooouuuttt--- HHHeeelllddd bbbyyy ssstttaaannndddiiinnnggg,,, AAss sseeccuurriittyy FFoorr FFF...RRR... 1973 1972 KKKiiinnnddd ooofff cccuuurrrrrreeennncccyyy DDDeeeccc... 333111,,, aaggaaiinnsstt TTrreeaassuurryy FF..RR.. BBBaaannnkkksss 111999777333 ggoolldd ccaasshh BBaannkkss aaannnddd cceerrttiiffiiccaatteess aanndd AAAgggeeennntttsss Dec. Nov. Dec. AAggeennttss 31 30 31 Gold 1111111111,,,,,555556666677777 ((1111,,446600)) 110077 Gold certificates (((((1111111111,,,,,444446666600000))))) 221111,,445599 1111 Federal Reserve notes 6666688888,,,,,111116666611111 iii 333444 3333,,,,888899997777 666444,,,111333000 666111,,,999999111 555888,,,666111999 Treasury currency—Total 88888,,,,,777771111166666 777777 222277771111 888,,,333666888 888,,,333000555 777,,,888999777 DDoollllaarrss 777776666677777 7777 222777 777773333333333 777772222277777 666667777711111 Fractional coin 77777,,,,,333333333388888 66669999 222444333 77777,,,,,000002222266666 66666,,,,,999996666699999 66666,,,,,666661111155555 United States notes 333332222233333 1111 333332222211111 333332222211111 333332222200000 In process of retirement3 222228888888888 222228888888888 222228888888888 222229999911111 TToottaall——DDeecc.. 3311,,11997733 444488888888,,,,444444443333 ((((11111111,,,,444466660000)))) 333311117777 11111111,,,,444455559999 4444,,,,111177770000 7722,,449977 Nov 30 1973 444488886666,,,,444488881111 ((((11111111,,,,444466660000)))) 333311117777 11111111,,,,444455559999 4444,,,,444400008888 7700,,229966 Dec. 31 1972 444488881111,,,,222211114444 ((((11110000,,,,333300003333)))) 333344445555 11110000,,,,333300002222 4444,,,,000055550000 6666,,551166 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 • FEBRUARY 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mz Mi M 2 Mi Composition of measures is described in the NOTE below. 1970—Dec. r 221.2 425.2 641.2 227.6 429.9 1971—Dec.r.... 235.2 473.0 726.9 241.9 477.9 1972—Dec.'.... 255.7 525.5 822.4 263.0 530.6 1973 '•-Feb 257.9 532.3 836.7 255.2 529.8 Mar 258. 1 534.6 841.7 255.5 534.0 April 259.4 538.3 847.7 260.9 542.3 May 262.4 543.6 855.0 257.9 541.7 June 265.5 549.4 863.5 263.6 548.8 July 266.4 552.0 867.9 265.7 551.0 Aug 266.2 554.9 870.9 262.9 551. 1 Sept 265.4 556.6 873.2 263.9 554.2 Oct 266.5 561.6 879.8 266.0 559.9 Nov 268.8 566.7 886.9 270.5 565. 1 Dec 270.4 570.7 893.2 278. 1 575.8 1974—Jan 269.7 573.8 898.2 276.9 579.8 Week ending— 1974—Jan. 2. 270.3 572.5 284.5 584.9 9.. 269.5 572.0 282.3 583.3 16. 270.0 573.7 280.0 582.4 23 p 269.0 573.8 273.8 577.5 30p 268.5 573.8 269.0 573.7 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 Ms: Mt 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 Deposits" on pp. 81-95 of this BULLETIN. Mi: Averages of daily figures for Mi plus savings deposits, time de- COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted j Commercial banks Commercial banks U.S. MMoonntthh Non- Non- Govt. oorr bbaannkk bank deposwweeeekk Cur- DDee-- Time and savings tthhrriifftt Cur- DDee-- Time and savings thrift its 3 rency mmaanndd deposits iinnssttiittuu-- rency mmaanndd deposits instituddeeppooss-- ttiioonnss 22 ddeeppooss-- tions 2 iittss iittss CD's i Other Total CD's 1 Other Total 1970—Dec.r 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.7 25.8 202.3 228. 1 215.6 7.3 1971—Dec.r 52.6 182.6 33.0 237.9 270.9 253.9 53.5 188.4 33.8 236.0 269.8 253.3 6.9 1972—Dec.r 56.9 198.7 43.4 269.9 313.3 296.9 57.9 205.1 44.3 267.6 311.8 296.0 7.4 1973 r-Feb 57.5 200.4 49.1 274.4 323.5 304.4 56.8 198.4 48.6 274.6 323.3 303.8 9.9 Mar 58.0 200. 1 54.6 276.6 331. 1 307.0 57.4 198.1 54.0 278.5 332.6 307.4 10.4 Apr 58.6 200.8 58.4 278.9 337.3 309.4 58.3 202.6 56.1 281.4 337.6 310.3 8.3 May 58.9 203.4 61.3 281.3 342.6 311.4 58.7 199.2 58.8 283.8 342.6 312.0 8.7 June 59.4 206.2 62.0 283.8 345.8 314.2 59.4 204.1 59.3 285.2 344.5 315.3 7. 1 July 59.5 207.0 63.9 285.6 349.4 315.9 59.9 205.7 62.3 285.3 347.6 317.0 6.5 Aug 59.8 206.4 66.3 288.7 355.0 315.9 60.0 202.9 68.4 288.2 356.6 315.9 4. 1 Sept 60.2 205.2 66.7 291.2 357.9 316.6 60.1 203.8 68.8 290.3 359.2 316. 1 5.3 Oct 60.4 206.1 63.8 295.1 358.9 318.3 60.4 205.6 66.3 293.9 360.2 317.6 6.0 Nov 60.9 207.9 62.0 297.8 359.9 320.2 61.4 209.1 64.1 294.6 358.7 318.9 4.3 Dec 61.6 208.8 62.8 300.3 363. 1 322.5 62.6 215.5 64. 1 297.7 361.8 321.7 6.3 1974—Jan 6611..88 220077..99 6655..55 330044..11 369.6 324.4 61.5 215.3 66.1 302.9 369.0 324.9 8.0 Week ending— 1974 Tan 2 r 666666111111......555555 222222000000888888......888888 666666444444......333333 333333000000222222......222222 366.5 61.9 222.5 64.6 300.5 365. 1 10.0 9 666666111111......777777 222222000000777777......888888 666666444444......888888 333333000000222222......555555 367.3 62.3 220.0 65.6 301.0 366.6 8.5 16 666666111111......888888 222222000000888888......222222 666666444444......777777 333333000000333333......777777 333366668888....4444 61.8 218.2 65.6 302.4 368.0 6.2 23 p 666666222222......000000 222222000000777777......000000 666666555555......888888 333333000000444444......888888 333377770000....6666 61.3 212.5 66.5 303.7 370.2 7.4 30® 666666111111......999999 222222000000666666......666666 666666777777......000000 333333000000555555......333333 333377772222....3333 6600..77 220088..33 6666..99 330044..77 337711..66 9.1 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

FEBRUARY 1974 • BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 Total member plus nondeposit S.A. N.S.A. items4 Non- Total bor- Re- AAAvvvaaaiiilll--- Demand Demand rowed quired aaabbbllleee222 TTiimmee TTiimmee TToottaall aanndd U.S. TToottaall aanndd U.S. SS..AA.. NN..SS..AA.. ssaavviinnggss Private Govt. ssaavviinnggss Private Govt. 1970—Dec.r 29.19 28.86 28.95 27.10 321.3 178.8 136.1 6.5 325.2 178. 1 141.1 6.0 332.9 336.8 1971—Dec.r 31.30 31.17 31.12 28.96 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972—Dec.r 31.41 30.36 31.13 29.05 402.0 241.4 154.5 6.1 406.8 240.7 160.1 6.1 406.4 411.2 1973— Jan. 32.20 31.04 31.94 29.44 404.7 244.0 154.0 6.7 410.4 243.8 160.0 6.6 409.7 415.4 Feb... 31.63 30.04 31.43 29.37 409.0 248.9 154.0 6.1 409.0 248.5 152.4 8.1 413.5 413.5 Mar.. 31.91 30.08 31.70 29.62 416.3 255.4 153.3 7.6 416.3 256.2 151.6 8.5 421.2 421.2 Apr.. 32.30 30.59 32.08 29.87 421.4 260.9 153.4 7.1 422.3 260.5 154.9 6.8 426.6 427.4 May. 32.44 30.60 32.29 30.11 425.1 265.1 154.8 5.2 423.0 264.5 151.4 7.0 430.5 428.4 June. 32.46 30.61 32.22 30.55 428.9 267.3 156.3 5.3 426.3 265.9 154.8 5.6 434.5 432.0 July.. 33.58 31.62 33.29 31.36 431.1 270.1 157.1 3.9 429.9 268.5 156.2 5.1 437.6 436.4 Aug.. 33.91 31.74 33.73 32.04 436.7 275.0 157.0 4.8 433.7 276.6 154.0 3.1 443.8 440.8 Sept.. 34.17 32.32 33.95 32.39 438.6 277.5 156.2 5.0 437.7 279.0 154.7 4.1 445.9 445.0 Oct... 34.94 33.47 34.72 32.84 439.7 277.3 156.4 6.0 439.7 278.8 156.1 4.8 446.5 446.5 Nov.. 34.86 33.46 34.62 32.71 440.4 277.1 157.5 5.8 438.2 276.6 158.3 3.2 447.5 445.3 Dec.. 35.10 33.81 34.80 32.91 442.2 279.0 158.3 4.9 447.5 278.5 164.0 5.0 449.6 454.9 1974—Jan.*. 35.85 34.80 35.69 32.80 446.7 283.2 157.4 6.1 453.0 283.1 163.4 6.4 454.2 460.5 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 loans Commercial loans Commercial and and industrial3 and and industrial3 invest- Plus U.S. invest- Plus U.S. ments1 Total i l s o o a ld n s 2 Total l P oa lu n s s Tr u e r a y s - Other4 ments1 Total1 l s o o a l n d s 2 Total l P o l a u n s s Tr u e r a y s - Other4 sold 2 sold2 1 1 9 9 6 6 9 8 — — D D e e c c . . 3 3 1 1 5 . . . 4 3 0 9 1 0 . . 7 2 2 2 5 79 8 . . 1 2 283.0 1 9 0 5 5 . . 9 7 108.3 6 5 0 1 . . 7 5 7 71 1 . . 1 3 4 41 0 2 0 . . 1 4 2 2 6 8 4 6 . . 4 1 290.0 1 9 0 8 8 . . 4 4 111.0 6 5 4 4 . . 5 7 7 71 1 . . 3 5 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 1974—Jan. 30*. 633.6 450.2 454.6 158.5 161.1 53.9 129.5 633.1 446.2 450.7 156.8 159.4 58.1 128.8 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 • FEBRUARY 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 Total Cash lia- Bor- capital Class of bank assets 3 bilities row- acand date Total and Total3 Demand ings counts U.S. capital De- Treas- Other" ac- mand Time Times ury counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44, 349 15,952 23 1945—Dec. 31 ... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105 ,921 30,241 219 1947—Dec. 31 6. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 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. 31 421,597 295,547 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 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 1972—Dec. 31.. 598,"" 414,696 67,028 117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 1973—Jan. 31.. 591,270 409,220 65,560116 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 61,620116 850 99,590 729,670 598,520 29,530 4,170 11,370 227,190 326,260 45,480 Mar. 28.. 608,320 429,400 61,180117 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 60,400118 ,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 58,330119 ,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 57,877121 ,099 103,608 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 July 25P., 634,220 456,480 56,360121 380 95,880 761,870 618,670 28,710 5,830 6,750 228,310 349,070 52,580 Aup. 29p. 640,100 462,630 54,720122 750 92,010 765,200 618,440 26,500 6,620 3,460 224,450 357,410 53,150 Sept. 26f. 645,150 466,420 54,800123 930100,030 778,070 628,700 27,720 7,190 8,210 227,880 357,700 56,180 Oct. 31 p. 652,330 470,780 55,640125 910!lll,720 798,550 643,790 32,830 6,820 5,680 240,390 358,070 60,220 N De o c v . . 26 2 p 8P . . 6 6 5 7 6 5 , , 7 8 0 2 0 0 4 4 7 9 4 0 , , 3 6 0 8 0 0 5 5 7 8 , , 3 1 0 8 0 0 1 1 2 2 5 6 ; 9 1 6 0 0 0 1 9 0 5 4 , , 6 1 5 4 0 0 7 8 9 0 4 6 , , 4 4 2 2 0 0 6 6 3 5 5 0 , , 9 2 4 9 0 0 2 3 5 0 , ,1 7 3 2 0 0 7 6 , , 0 8 1 5 0 0 4 7 , , 3 9 5 5 0 0 2 2 3 4 7 9 , , 6 5 5 2 0 0 3 3 5 6 6 0 , , 8 2 0 5 0 0 6 6 2 0 , , 4 2 0 9 0 0 1974—Jan. 30?. 670,340 483,430 58,140128,770103,050 807,320 648,480 31,640 6,400 9,390 232,510 368,540 65,110 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 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 6,554 192,431 273,073 57,048 1974—Jan. 30?.. 518,513 381,390 41,684 95,439 88,597 635,082 501,262 30,004 5,690 7,583 178,447 279,538 61,488 Large member banks: New York City: s, 1941—Dec. 31... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 12,051 807 1945—Dec. 31... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 1947—Dec. 31 ... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 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 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 1974—Jan. 30... 84,936 68,328 5,627 10,981 26,534 118,036 87,517 16,024 3,332 1,144 31,822 35,195 14,978 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 Interbank3 Class of bank lia- Borand date Cash . bilities row- Total Loal ns U.S. assets 3 ca a p n i d ta l Total3 Demand ings Treas- Other ac- De- Time Times ury 2 counts4 mand U.S. Govt. Other Large member banks (cont.) City oi 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 ,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 1967—Dec. 30 12.744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1968—Dec. 31 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1 ,535 21 257 6,542 6,171 682 1969—Dec. 31 7 14,365 10,771 1,564 2,030 2,802 17,927 13,264 1,677 15 175 6,770 4,626 1,290 1970—Dec. 31 15.745 11,214 2,105 2,427 3,074 19,892 15,041 1,930 49 282 6,663 6,117 1,851 1971—Dec. 31 17,133 12,285 1,782 3,067 3,011 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 Apr. 25. 22,800 18,253 1,414 3,133 3,277 27,170 20,020 1,304 333 426 6,639 11,318 3,971 May 30. 23,777 18,956 1,564 3,257 3,209 28,134 21,1 1,501 411 154 6,882 12,140 3,954 June 30. 24,566 19,645 1,715 3,205 3,501 29,307 21,896 1,323 392 299 7,372 12,511 4,146 July 25. 25,221 20,580 1,364 3,277 3,759 30,199 21,627 1,638 389 226 6,488 12,886 4,922 Aug. 29. 25,400 20,676 1,322 3,402 3,569 30,358 22,272 1,355 499 86 6,725 13,607 4,647 Sept. 26. 25,948 20,717 1,683 3,548 3,853 31,299 22,138 1,525 504 303 6,480 13,326 5,814 Oct. 31. 25,489 20,022 1,621 3,846 4,146 31,015 21,837 1,481 517 194 6,863 12,782 5,895 Nov. 28. 26,278 21,117 1,504 3,657 3,794 31,441 21,577 1,505 459 115 6,942 12,556 6,314 Dec. 26. 26,858 21,453 1,557 3,848 3,956 32,298 23,013 1,693 544 308 '7,519 r12,949 5,944 1974—Jan. 30. 27,178 21,354 1,796 4,028 3,756 32,236 22,046 1,490 539 340 6,699 12,978 6,970 1941--Dec. 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 . . 31 4 3 0 6 , , 1 0 0 4 8 0 1 8 3 , , 5 4 1 4 4 9 2 2 9 0 , , 5 19 5 6 2 2 2 , , 0 39 4 6 2 1 1 1 3 , ,0 2 6 8 6 6 4 5 9 1 , , 6 «— 59 4 4 9 6 , , 0 4 8 6 5 7 6 5 , , 4 6 1 2 8 7 2 3 2 0 8,2 4 2 0 1 5 2 2 4 8 , , 6 9 5 9 5 0 1 9 1 , , 7 4 6 2 0 3 2 1 1967--Dec. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 1968--Dec. 31 119,006 83,634 15,036 20,337 28.136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 1969--Dec. 31 7 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 1970--Dec. 31 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10.391 1971--Dec. 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 63,011 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. 175,754 133,253 13,414 29,087 30,11 215,262 168,360 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 1974--Jan. 30 191,824 146,145 13,136 32,543 31,358 234,467 177,350 9,229 1,477 3,096 61,670 101,878 30,743 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. 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 1967--Dec. 122,511 74,995 24,689 22,826 20,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 1968--Dec. 31 134,759 83,397 24,998 26,364 22,664 161,122 144,682 2,839 111 1,281 66,578 73,873 804 1969--Dec. 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 1 1 9 9 7 7 1 0 - -- - D D e e c c . . 3 3 1 1 1 1 7 5 5 4 , , 2 1 1 3 1 0 1 9 1 9 0 , , 4 35 0 7 4 2 2 4 2 , , 3 5 4 8 3 6 4 3 0 2 , , 5 1 1 4 1 0 2 26 5 , , 7 4 8 4 3 8 2 1 0 8 7 4 , , 7 6 9 3 8 5 1 1 8 6 1 1 , , 7 8 8 5 0 0 3 3 , , 3 8 8 5 7 3 2 1 6 3 3 5 2 2, , 9 5 9 9 3 2 7 6 4 9 , ,8 0 0 7 6 2 1 8 0 5 0 , ,6 9 0 30 0 3 1 , , 1 8 1 3 " 6 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. 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 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. 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 C211,026 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 79,496 125,870 8,577 Dec. 214,357 146,004 21,137 47,216 28,318 252,007 216,042 3,433 342 2,326 83,085 126,856 7,868 1974--Jan. 30* 214,575 145,563 21,125 47,887 26,949 250,343 214,349 3,261 342 3,003 78,256129,487 8,797 18,535 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS • FEBRUARY 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 bilities row- ccaappiittaall bbeerr iinnssuurraannccee Total Loans and Total 3 Demand ings aacc-- ooff l U.S. Other capital De- Time ccoouunnttss bbaannkkss Treas- 2 ac- mand Time 5 ury counts 4 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, 654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13, 883 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310.730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 ! 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—Dec. 317- 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13,464 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. 17r. 647,971 468,000 52,497 127,473 101,205 780,196 633,180 28,443 6,571 5,821 234,549 357,798 55,906 50,727 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 2,874 6,181 137,116 201,318 33,804 31,867 4,629 Oct. 17r. 377,246 277,015 27,641 72,590 63,573 460,164 368,351 15,797 3,404 3,369 136,163 209,619 38,819 32,516 4,642 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,' 739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,<4 11 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 1 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 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 1,735 12,778 8,203 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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——— FFF CCC RRR lllaaa SSS aaa iii sss nnn nnn sss mmm ddd iii sss fff uuu eee iiiccc rrr mmm FFF aaa aaa DDD bbb ttt nnn iii eee ccc III ooo CCC eee rrr nnn sss hhh bbb iii yyy ppp TToottaall LLooaa ll nnss T U re . S S a e . s c - urit O ie t s h 2 er aaa CCC ssssss aaa eee sss ttt hhh sss 333 ccc bbb TTT aaa iii aaa lll aaa lll ppp ooo iii iii nnn aaa ccc ttt ttt iii ddd --- iii ttt --- aaa eee aaa lll sss lll TToottaall33 m D I a n e n - t d e rba T nk im 3 e Den la O nd th er Tim 5 e rrr BBB iii ooo nnn ooo www ggg rrr sss --- --- ccc ccc TTT aaa ooo aaa ooo ppp uuu ccc ttt iii nnn --- ttt aaa aaa ttt lll sss lll NNN bbbaaa bbb uuu ooo nnn eee fff mmm rrr kkk sss --ury cccooouuunnntttsss 444 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31 1,457 455 761 241 763 2,283 11,,887722 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,f-43 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967 Dec. 30 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968 Dec. 31 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969 June 30 7 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dcc. 31 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1971—Dec. 31 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—June 30 5,915 4,732 345 838 1,892 8,196 4,438 488 145 26 1,779 2,000 885 500 204 Total nonmember: 1941—Dec. 31 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1963 Dec. 20 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964 Dec. 31 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1967—Dec. 30 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 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 10 Beginning May 6, 1972, two New York City country banks, with loans" include Federal funds sold, and beginning with June 1967 securities deposits of $1,412 million, merged and were reclassified as a reserve city purchased under resale agreements, figures for which are included in bank. (See also note 8.) "Federal funds sold, etc.," on p. A-22. Beginning June 30, 1971, Farmers Home Administration notes are NOTE.—Data are for all commercial banks in the United States (includclassified as "Other securities" rather than "Loans." As a result of this ing Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to "Other securities" all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; and nondeposit trust companies. See also table (and notes) at the bottom of p. A-30. For the period June 1941-June 1962 member banks include mutual 2 See first two paragraphs of note 1. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 3 Reciprocal balances excluded beginning with 1942. and one through June 1962. Those banks are not included in insured 4 Includes items not shown separately. See also note 1. commercial banks. 5 See third paragraph of note 1 above. Beginning June 30, 1969, commercial banks and member banks exclude 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 • FEBRUARY 1974 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans l Investments b C a l n a k s s a o n f d l T o a a o n n t d a s l 1 f F e u r e n a d d l - s C m o e m r- - Agri- o p s r u e r c c c u F a h r r o a i r r t s y i i e i n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot t h o e r, U s .S ec . u T r r it e i a es s u 6 r y S a t n a d te call date invest- sold, Total cial cul- in- Other local Other ments etc.2 and ture To di- 5 govt, secuin- al i bro- vid- Bills secu- rities 5 d tr u ia s- l k an er d s ot T h o e rs Banks Others uals3 ce a r n t d if i- Notes Bonds rities deal- cates ers Total:2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1972—Dec. 31 io 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028 89,504 27,579 1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877 91,312 29,787 All insured: 1941—Dec. 31 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621 1972—Dec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6,115 23,277 98,204 86,912 10,099 66,679 89,173 27,125 1973—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 r. 647,971 28,566 439,435 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 ,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. 17r. 502,961 20,823 351,248 New York City: 11 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 ,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 11 564 238 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 ,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 ,578 65,392 City of Chicago: 1i 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 1,066 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 19,221 Other large banks:11 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1 ,508 6,467 295 751 5,421 956 820 1945—Dec. 31 40,108 8,514 3,661 205 427 1,503 17 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec, 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 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 ,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 ' 262 1972—Dec. 31 io 198,156 8,504 19,690 31,911 6,327 452 ,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 34,824 015 282 1,253 657 2,484 42,638 38,284 2,376 21,638 34,919 12,153 Oct. 17 211,357 8,806 134,007 Nonmember: 1947—Dec. 31.. ,454 5,432 1,205 614 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 ,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." <5 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

FEBRUARY 1974 • COMMERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal- Deb c C a a l n l a l k s d s a a o n te f d 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 d n e n i o s c k t t - e h s i s c 7 j m p u a s o d a t d s e e n i - - d t d s 8 jn D e I s o n t - t i e c r 7 b e a F i n g o k r n - 9 G U o . v S t . . SS gg ll aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. c C c h o a f e e e i e f t n e r r f c c d d t s i . k - i ' - s, IPC I b n a t n e k r- GG PP U S U S ii aa oo nn oo aa nn .. ss gg vv SS vv dd tt ss tt -- .. aa ,, ll SS gg ll aa oo oo tt nn cc aa vv aa dd tt tt ee ll .. IPC3 r B i o n o w g r s - - c C o a t a u a c p n l - i t - s Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1972—Dec. 31 io. 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 606 37,161 277,683 38,083 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 /62 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 i 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 . i 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 r. . 30,998 9,231 23,960 203,931 24,626 3,817 5,821 15,620 9,905 209,023 6,571 580 42,914 314,304 55,906 56,726 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.... 1 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 i 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'.. 30,998 7,018 16,011 150,944 • 23,667 3,634 4,515 11,213 8,382 161,303 6,008 427 32,398 239,926 54,171 43,948 New York City;H 1941—Dec 31.... 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 11,,664488 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 22,,112200 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 22,,225599 1972—Dec. 31 io. 5,695 508 4,854 23,271 12,532 2,562 1,418 741 3,592 31,040 1,833 10 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 20 2,075 30,788 11,597 8,287 Oct. 17... 5,972 581 4,567 22,240 i 10,617 2,656 644 497 3,358 25,615 3,809 31 2,371 31,522 13,260 8,405 City of Chicago:11 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 22,,115522 476 288 1945—Dec. 31 942 36 200 3,153 11,,229922 20 1,552 237 66 33,,116600 719 377 1947—Dec. 31.... 1,070 30 175 3,737 11,,119966 21 72 285 63 3,853 2 9 902 426 1972—Dec. 31 io. 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 1,360 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 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1972—Dec. 31 io. 10,085 2,114 4,688 52,813 10,426 707 3,860 3,854 3,075 64,447 1,173 181 11,811 74,449 19,392 14,687 1973—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 r. . 10,083 4,079 7,211 74,378 3,340 99 1,963 7,295 2,231 70,542 352 161 15,500 110,534 7,254 18,103 Nonmember:3 1947—Dec. 31 544 3,947 1133,,559955 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1972—Dec. 31 io 222,,,000888444 111222,,,777888999 5533,,665588 1,449 446 1,851 5,044 2,182 47,180 633 138 8,608 66,559 1,726 11,429 1973—june 30 111,,,999111555 111111,,,888333888 5533,,880033 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 • FEBRUARY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying sepurities Total involving— To nonbank loans financial Wednesday and Com- To brokers To institutions invest- To mer- and dealers others ments com- To cial Agri- Total mer- U.S. others Total and culcial Treas- Other indus- tural banks ury se- trial U.S. U.S. se- curi- Treas- Other Treas- Other curi- ties ury sees. ury sees. ties sees. sees. Large banks— Total 1973 Jan. 3 321 Ml 15,144 14,069 413 376 286 227,352 91,468 2,936 978 8,346 272 2.939 1 17 0 3 3 2 2 1 3 , , 6 1 7 3 1 2 1 1 2 2 , , 0 9 1 6 1 7 1 1 1 0 , , 6 6 2 84 8 6 6 2 8 5 2 4 46 3 6 5 2 1 7 7 9 9 2 22 2 5 5 , , 3 3 9 7 8 1 9 9 1 1 , , 0 4 7 2 1 2 2 2 . , 9 9 4 5 8 9 1,1 9 8 9 4 1 7 7, , 8 9 0 2 0 2 2 3 7 0 3 2 2 2: ,9 9 2 1 3 3 24 319,256 11,188 10,134 615 323 116 224,379 91,475 2,975 722 7,454 248 2,932 31 323,606 12,098 10,999 611 296 192 227,165 92,332 2,995 1,063 7,750 291 2,903 Dec. 5 363,957 15,410 13,770 1,127 350 163 263,541 107,959 3,419 760 5,340 144 2,841 12 366,024 13,951 12,252 1,119 411 169 265,410 108,222 3,475 902 6,090 150 2,840 19 368,702 15,015 13,614 819 410 172 267,945 109.119 3,477 1,020 5,572 148 2,843 374,566 18,248 14,433 3,118 509 188 270,633 109,821 3,535 1,739 6,225 153 2,825 26 1974 379,673 19,908 18,026 969 683 230 272,784 110,787 3,671 819 5,666 155 2,799 Jan. 2p 373,631 16,342 13,899 1,911 350 182 269,729 110,193 3,695 ,491 5,158 158 2,779 9 P 372,283 15,834 14,027 1,105 549 153 269,311 110,205 3,689 847 5,183 150 2,781 16P'.!.'.'... 369,221 13,981 12,612 843 352 174 268,005 109,632 3,714 855 4,762 160 2,779 23p 369.548 15,634 14,218 935 303 178 266,873 109,448 3,701 602 4,576 156 2,767 30? New York City 1973 68,644 1,593 1,501 52,618 26,053 48 813 5,021 735 Jan. 3 67,305 873 830 51,951 26,078 49 1,016 4,836 705 10 67,266 934 893 52,017 26,142 51 835 4,703 702 17 66,654 1,174 1,161 51,291 26,247 55 600 4,434 692 24 68,430 1,012 972 52,995 26,743 56 913 4,687 683 31 Dec. 5 79,386 1,439 1,398 62,091 31,084 111 671 3,077 647 12 80,632 1,164 1,134 62,795 30,928 125 764 3,776 638 19 81,081 1,354 1,323 63,530 31,238 127 901 3,250 647 26 83,249 2,213 2,163 64,990 31,439 131 1,598 3,890 633 1974 Jan. 2p 82,400 1,786 1,756 25 64,563 31,740 128 672 3,362 629 9p 81,204 1,092 1,087 63,666 31,647 133 1,304 3,066 626 1 6p 80,482 1,346 1,334 63,113 31,639 136 719 3,088 632 23p 79.841 1,372 1,342 62,410 31,352 151 725 2,895 623 30 p 79;049 1,707 1,630 61,751 31,438 150 513 2,710 622 Outside New York City 1973 Jan. 3 258,998 13,551 12,568 394 376 213 174,734 65,415 2,888 165 3,325 238 2,204 10 255.827 12,094 10,798 621 402 273 173,420 64,993 2,899 168 3.086 257 2,208 17 254,405 11,077 9,791 676 437 173 173,381 65,280 2,908 156 3,097 244 2,221 24 252,602 10,014 8,973 606 323 112 173,088 65,228 2,920 122 3,020 215 2,240 3 1 255,176 11,086 10,027 577 296 186 174,170 65,589 2,939 150 3,063 238 2,220 Dec. 5 284,571 13,971 12,372 1.087 350 162 201,450 76,875 3,308 2,263 114 2,194 12 285,392 12,787 11,118 1,109 411 149 202,615 77,294 3,350 138 2,314 109 2,202 19 287,621 13,661 12,291 809 410 151 204,415 77,881 3,350 119 2,322 108 2,196 291,311 16,035 12,270 3,068 509 188 205,643 78,382 3,404 141 2,335 112 2,192 26 1974 297,273 18,122 16,270 964 683 205 208,221 79.047 3,543 147 2,304 111 2,170 Jan. 2 p 292,427 15,250 12,812 1,906 350 182 206,063 78,546 3.562 187 2,092 116 2,153 9 p 291,801 14,488 12,693 1,100 549 146 206,198 78,566 3,553 128 2,095 117 2,149 1 6p\ 289,380 12,609 11,270 817 352 170 205,595 78,280 3.563 130 1,867 116 2,156 23" 290,499 13,927 12,588 859 303 177 205,122 78,010 3,551 89 1,866 113 2,145 30P For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 To commercial Notes and bonds banks maturing— Wednesday Con- Real sumer For- All Certifestate instal- eign other Total Bills icates Do- For- ment govts. 2 Within 1 to After mes- eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1973 45,984 2,411 3,267 28,135 1,155 18,926 29,133 6,586 4,472 15,535 2,540 Jan. 3 46,110 2,429 3,196 28,123 1,148 18,233 28,939 6,390 4,565 15,441 2,543 10 46,236 2,333 3,053 28,114 1,150 18,241 28,912 6,434 4,593 15,326 2,559 17 46,338 2,315 3,047 28,170 1,179 18,182 28,469 6,183 4,546 15,155 2,585 24 46,464 2,681 3,172 28,270 1,187 18,196 28,926 6,515 4,674 15,132 2,605 31 54,473 3,987 4,678 32,591 1,427 20,206 25,974 6,076 4,033 12,491 3,374 Dec. 5 54,723 3,992 4,883 32,698 1,538 20,349 26,201 6,452 4,174 12,216 3,359 12 54,894 4.021 5,099 32,838 1,589 20,895 25,441 5,764 4.013 12,199 3,465 19 54,933 4.022 5,166 32,942 1,580 21,010 25,527 5,779 4,109 12,228 3,411 26 1974 55,181 3,996 5,094 33.168 1,590 21,783 25,460 5,528 4,411 12,068 3,453 Jan. 6* 55,193 4,180 5,018 33,127 1,534 20,672 25,954 5,911 4,577 11,973 3,493 9 * 55,483 3,983 4,940 33,149 1,483 20,536 26,071 6,265 4,650 11,741 3,415 13* 55,554 3,983 4,823 33,130 1,524 20,511 26,230 6,374 4,684 11,765 3,407 22* 55,618 3,820 4,663 33.169 1,577 20,460 25,807 6,006 4,673 11,741 3,387 30* New York City 1973 5,015 582 1,576 2,133 722 4,086 4,701 1,260 704 2,560 177 Jan. 3 5,032 539 1,561 2,127 729 3,689 4,915 1,473 724 2,589 129 10 5,042 513 1,513 2,130 735 3,796 4,960 1,592 729 2,480 159 17 5,069 484 1,515 2,140 749 3,771 4,940 1,545 780 2,389 226 24 5,096 788 1,561 2,151 733 3,656 5,137 1,669 789 2,442 237 31 6,287 1,698 2,085 2,446 701 4,484 5,869 2,162 783 1,769 1,155 Dec. 5 6,332 1,667 2,188 2,449 763 4,489 6,081 2,489 712 1,703 1,177 12 6,358 1,735 2,304 2,466 768 4,681 5,614 2,120 615 1,678 1,201 19 6,343 1,705 2,359 2,480 762 4,584 5,588 2,095 565 1,768 1,160 26 1974 6,372 1,673 2,163 2,491 744 5,041 5,167 1,682 614 1,674 1,197 Jan. 2p 6,386 1,626 2,195 2,495 742 4,484 5,610 2,083 663 1,701 1,163 9* 6,413 1,540 2,137 2,497 734 4,487 5,443 2,157 656 1,554 1,076 16* 6,393 1,545 2,043 2.484 746 4,590 5,713 2,360 676 1,576 1,101 23* 6,395 1,425 1,906 2.485 842 4,376 5,241 2,016 616 1,542 1,067 30* Outside New York City 1973 40,969 1,829 1,691 26,002 433 14,840 24,432 5,326 3,768 12,975 2,363 Jan. 3 41,078 1,890 1,635 25,996 419 14,544 24,024 4,917 3,841 12,852 2,414 10 41,194 1,820 1,540 25,984 415 14,445 23,952 4,842 3,864 12,846 2,400 17 41,269 1,831 1,532 26,030 430 14,411 23,529 4,638 3,766 12,766 2,359 24 41,368 1,893 1,611 26,119 454 14,540 23,789 4,846 3,885 12,690 2,368 31 48,186 2,289 2,593 30,145 726 15.722 20,105 3,914 3,250 10,722 2,219 Dec. 5 48,391 2,325 2,695 30.249 775 15,860 20,120 3,963 3,462 10,513 2,182 12 48,536 2,286 2,795 30,372 821 16,214 19,827 3,644 3,398 10,521 2,264 19 48,590 2,317 2,807 30,462 818 16,426 19,939 3,684 3,544 10,460 2,251 26 1974 48,809 2,323 2.931 30,677 846 16,742 20,293 3,846 3,797 10,394 2,256 Jan. 2* 48,807 2,554 2,823 30,632 792 16,188 20,344 3,828 3,914 10,272 2,330 9 v 49,070 2,443 2,803 30.652 749 16,049 20,628 4,108 3,994 10,187 2,339 16* 49,161 2,438 2,780 30,646 778 15,921 20,517 4,014 4,008 10,189 2,306 23* 49,223 2,395 2,757 30,684 735 16,084 20,566 3,990 4,057 10,199 2,320 30* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS • FEBRUARY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest- Obligations Other bonds, items Re- Bal- ments Total of State corp. stock. in serves Cur- ances in sub- assets/ Wednesday and and process with rency with sidiar- Other total political securities of F.R. and do- ies not assets liabil- Total subdivisions collec- Banks coin mestic consol- ities tion banks idated Tax Certif. war- All of All rants3 other partici- other5 pation4 Large banks— Total 1973 Jan. 3 56,013 9,252 37,925 1,742 7,094 34,668 21,587 4,377 10,459 1,108 17,662 417,503 10 55,855 9,084 38,073 1,738 6,960 28,481 19,574 4,280 9.811 1,106 17,359 403,743 17 55,350 8,969 37,751 1,745 6,885 30,353 21,415 4,144 9,098 1,134 17,181 404,996 24 55,220 8,860 37,659 1,763 6,938 29,067 21,611 4,145 9,167 1,139 17,257 401,642 31 55,417 8,951 37,816 1,770 6,880 30,863 20,055 3,981 9,658 1,143 17,805 407,111 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 60,158 7,405 39,940 2,351 10,462 29,771 18,052 4,846 7,532 1,396 21,139 457,302 1974 Jan. 2 p 61,521 7,767 40,080 2,431 11,243 39,584 25,685 5,030 12,455 1,435 22,295 486,157 9 v 61,606 7,790 40,231 2,400 11,185 32,417 22,631 4,683 12,221 1,439 20,573 467,595 16*;;;!!!!!!!!!!! 61,067 7,459 40,099 2,374 11,135 34,684 25,158 4,529 12,341 1,440 20,285 470,720 23 p 61,005 7,287 40,174 2,370 11,174 29,978 24,096 4,563 11,940 1,440 20,080 461,318 30 p 61,234 7,470 40,286 2,362 11,116 30,139 24,181 4,499 11,812 1,443 20,420 462,042 New York City 1973 Jan. 3 9,732 2,867 5,289 547 1,029 10,071 5,966 502 3,526 545 5,369 94,623 10 9,566 2,763 5,246 538 1,019 9,441 5,106 490 3,935 548 5,137 91,962 17 9,355 2,749 5,062 539 1,005 10,323 5,606 484 3,218 583 5,136 92,616 2 4 9,249 2,660 5,053 542 994 11,447 5,417 472 3,977 582 5,154 93,703 3 1 9,286 2,653 5,040 538 1,055 11,929 5,640 475 4,012 584 5,281 96,351 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 1974 Jan. 2p 10,884 2,712 5,250 606 2,316 12,856 8,834 565 5,276 667 6,695 117,293 9 p 10,836 2,636 5,280 602 2,318 11,559 6,326 540 5,806 669 5,723 111,827 16* 10,580 2,439 5,251 592 2,298 11,861 7,007 524 6,433 670 5,695 112,672 23* 10,346 2,185 5,293 579 2,289 11,064 7,086 508 6,094 668 5,449 110,710 30* 10,350 2,218 5,325 580 2,227 11,824 6,846 511 6,198 670 5,777 110,875 Outside New York City 1973 Jan. 3 46,281 6,385 32,636 1,195 6,065 24,597 15,621 3,875 6,933 563 12,293 322,880 10 46,289 6,321 32,827 1,200 5,941 19,040 14,468 3,790 5,876 558 12,222 311,781 17 45,995 6,220 32,689 1,206 5,880 20,030 15,809 3,660 5,880 551 12,045 312,380 24 45.971 6,200 32,606 1,221 5,944 17,620 16,194 3,673 5,190 557 12,103 307,939 31 46,131 6,298 32,776 1,232 5,825 18,934 14,415 3,506 5,646 559 12,524 310,760 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 49,700 5,141 34,414 1,752 8,393 22,158 14,247 4,300 6,020 726 15,021 353,789 1974 Jan. 2p 50,637 5,055 34,830 1,825 8,927 26,728 16,851 4,465 7,179 768 15,600 368,864 9p 50,770 5,154 34,951 1,798 8,867 20,858 16,305 4,143 6,415 770 14,850 355,768 16P 50,487 5,020 34,848 1,782 8,837 22,823 18,151 4,005 5,908 770 14,590 358,048 23* 50,659 5,102 34,881 1,791 8,885 18,914 17,010 4,055 5,846 772 14,631 350,608 30* 50,884 5,252 34.961 1,782 8,889 18,315 17,335 3,988 5,614 773 14,643 351,167 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 WWeeddnneessddaayy and Certi- and Dopolit- fied polit- mes- For- Total IPC ical U.S. and Total6 ical tic eign sub- Govt. Com- Mutual Com- offi- sub- inter- govts.2 divi- mer- sav- Govts., mer- cers' Sav- Other divi- bank sions cial iinnggss etc. 2 cial checks ings sions banks Large banks- Total 1973 169,768 121,308 7,221 6,469 22,412 984 963 3,456 6,955 160,661 58,572 72,334 19,756 2,953 6,386 3 154,963 112,951 6,833 3,501 20,286 1,009 824 3,289 6,270 161,603 58,515 72,601 20,516 2,829 6,508 10 156,747 114,433 6,784 3,388 20,412 894 782 3,251 6,803 161,658 58,373 72,915 20,478 2,770 6,474 17 151,981 108,327 6,381 5,678 18,979 768 936 3,154 7,758 162,535 58,312 73,681 20,601 2,811 6,498 24 156,909 110,248 7,180 6,289 21,992 839 875 3,156 6,330 162,936 58,186 74,310 20,332 2,794 6,685 31 159,314 113,193 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 9,364 187,609 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 1974 184,565 128,207 7,352 7,164 25,286 804 1,156 4,978 9,618 189,646 57,087 95,405 22,833 5,551 8,311 2* 163,261 115,404 6,653 3,121 23,953 893 1,077 4,461 7,699 190,965 57,064 96,535 23,441 5,359 8,123 9 v 165,559 117,001 6,463 3,877 23,598 805 1,062 4,338 8,415 191,410 56,955 96,980 23,503 5,381 8,102 16" 156,027 109,349 6,032 4,468 22,783 668 994 4,155 7,578 192,745 56,918 98,307 23,602 5.287 8,081 23 * 157,996 109,099 6,236 5,620 22,759 669900 11,,119933 44,,664422 77,,775577 119933,,227711 5566,,887733 9988,,884433 2233,,663344 55,,114499 8 153 30* New York City 1973 43,814 26,795 428 1,193 8,923 569 788 2,240 2,878 27,210 5,627 14,648 2,025 1,653 3,118 3 40,137 24,138 370 607 8,685 576 668 2,334 2,759 27,699 5,618 14,819 2,399 1,549 3,184 10 41,574 24,983 539 544 8,834 498 648 2,354 3,174 27,667 5,594 14,982 2,302 1,473 3,188 17 41,878 24,185 350 1,085 8,294 409 797 2,290 4,468 27,798 5,572 15,108 2,301 1,499 3,220 24 43,907 24,973 574 1,187 11,030 463 732 2,285 2,663 28,112 5,549 15,508 2,085 1,488 3,388 31 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 1974 51,771 28,419 581 1,666 10,969 454 951 3,801 4,930 34,400 5,008 19,560 2,019 3,513 4,214 2 p 46,187 24,669 476 527 12,028 521 892 3,286 3,788 35,084 5,012 20,160 2,297 3,363 4,168 9 P 47,047 25,100 376 707 11,502 456 874 3,218 4,814 35,114 5,020 20,291 2,206 3,351 4,159 16* 44,802 23,839 346 781 11,452 362 793 3,088 4,141 35,520 5,017 20,916 1,988 3,358 4,157 23» 46,677 23,909 429 1,082 11,789 388 1,001 3,613 4,466 35,522 5,013 21,122 1,900 3,284 4,120 30p Outside New York City 1973 125,954 94,513 6,793 5,276 13,489 415 175 1,216 4,077 133,451 52,945 57,686 17,731 1,300 3,268 3 114,826 88,813 6,463 2,894 11,601 433 156 955 3,511 133,904 52,897 57,782 18,117 1,280 3,324 10 115,173 89,450 6,245 2,844 11,578 396 134 897 3,629 133,991 52,779 57,933 18,176 1,297 3,286 , 17 110,103 84,142 6,031 4,593 10,685 359 139 864 3,290 134,737 52,740 58,573 18,300 1,312 3,278 24 113,002 85,275 6,606 5,102 10,962 376 143 871 3,667 134,824 52,637 58,802 18,247 1,306 3,297 31 114,713 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 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 1974 132,794 99,788 6,771 5,498 14,317 350 205 1,177 4,688 155,246 52,079 75,845 20,814 2,038 4,097 2* 117,074 90,735 6,177 2,594 11,925 372 185 1,175 3,911 155,881 52,052 76,375 21,144 1,996 3,955 9 P 118,512 91,901 6,087 3,170 12,096 349 188 1,120 3,601 156,296 51,935 76,689 21,297 2,030 3,943 16* 111,225 85,510 5,686 3,687 11,331 306 201 1,067 3,437 157,225 51,901 77,391 21,614 1,929 3,924 23* 111,319 85,190 5,807 4,538 10,970 302 192 1,029 3,291 157,749 51,860 77,721 21,734 1,865 4,033 30* For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS • FEBRUARY 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 justed9 ad- justed 10 Total to to foreign jjuusstteedd99 IPC's others branches Large banks— Total 1973 Jan. 3 35,849 767 2,262 14,481 4,278 70 29,367 226,016 311,162 106,219 43,682 27,658 16,024 1,121 10 35,226 734 2,359 14,723 4,323 70 29,742 224.281 309,075 102,695 44,595 27,961 16,634 1,625 17 34,664 932 2,516 14.560 4,337 73 29.509 224,392 308,654 102,594 44,607 28,048 16,559 1,419 24 33.621 1,789 2,670 15,083 4,338 70 29,555 223,118 306,807 98,257 45,139 28,482 16,657 1,801 31 33,860 1,017 2,675 15,554 4,370 70 29,720 225,583 309,926 97,765 45,540 28,946 16,594 1,413 Dec. 5 50,823 370 5,818 18,227 4,615 65 31.584 261,194 346,200 100,757 63,429 42,194 21,235 1,911 12 48,232 1,350 5,795 18,344 4,585 65 31,571 263.117 349,780 102,784 64,442 43,044 21,398 1,938 19 52,215 1,267 5,588 18,596 4,547 66 31,520 265.325 351,067 103,209 63.366 41,999 21,367 2,382 26 47,759 274 5,274 17,759 4,513 66 31,560 270,42.6 356,111 110,134 64,391 42,987 21,404 1,703 1974 Jan. 2* 51,993 754 5,154 17,320 4,702 65 31,958 270,670 357,651 112,531 64,626 43,237 21,389 1,158 9 p 52,551 1,941 5,276 16,831 4,885 69 31,816 267,992 355,552 103,770 65,575 44,121 21,454 1,322 16 * 53,193 1,083 5,504 17,185 4,906 74 31.806 267,135 354,273 103,400 65,637 44,361 2.1,276 2,039 23p. 51,138 2,408 5,236 16,860 4,919 74 31.911 265,391 352,626 98,798 66,458 45,298 21,160 1,989 30 p 50,587 1,316 5,310 16,651 4,924 83 31,904 264,469 351,510 99,478 66,892 45,718 21,174 1,672 New York City 1973 Jan. 3 8,748 180 508 5,388 1,224 7.551 52,128 66,561 23,627 14,496 9,512 4,984 784 10 9,119 588 5,634 1,236 7; 549 51,455 65,936 21,404 15,068 9,729 5,339 1,160 17 8,346 777 5,487 1,239 7,526 51.545 65,860 21,873 15,043 9,831 5,212 1,133 24 8,035 475 912 5,846 1,238 7,521 50,820 65,009 21,052 15,127 9,898 5,229 1,459 3 1 8,439 1,107 5,950 1,250 7,586 52,247 66,670 19,761 15,314 10,175 5,139 1,122 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 22,467 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 1974 Jan. 2 p 13,606 155 2,437 5,521 1,281 8.122 62,920 78,971 26,280 20,307 12,848 7,459 800 9 p 12,574 941 2,503 5,119 1,311 j 8.108 62,045 78.491 22.073 20,987 13,433 7,554 942 16* 12,972 60 2,503 5,557 1,331 88,,008888 61,585 77,608 22,977 20,982 13.559 7,423 1,578 23 p 11,767 1,232 2,514 5,387 1,340 88,,114488 60,895 76,954 21,505 21,346 14,065 7,281 1,484 30* 11,447 105 2,379 5,252 1,341 j 8,152 60,403 75,994 21,982 21,341 14,247 7,094 1,226 Outside New York City 1973 Jan. 3 27,101 587 1,754 9,093 3,054 70 21,816 173,888 244,601 82,592 29,186 18,146 11,040 337 10 26,107 734 1,771 9,089 3,087 70 22,193 172,826 243,139 81,291 29,527 18,232 11,295 465 17 26,318 932 1,739 9,073 3,098 73 21,983 172,847 242,794 80,721 29,564 18,217 11,347 286 2 4 25,586 1,314 1,758 9,237 3,100 70 22,034 172,298 241,798 77,205 30,012 18.584 11,428 342 31 25,421 1,017 1,568 9,604 3,120 70 22,134 173,336 243,256 78,004 30,226 18,771 11,455 291 Dec. 5 39,279 370 2,999 12,521 3,294 65 23,498 200,760 269,910 78,869 42,919 29,367 13,552 669 12 37,517 635 2,845 12,474 3,279 65 23,474 201,959 271,949 80,350 43,571 29,860 13,711 718 19 38,904 1,177 2,754 12,717 3,258 66 23,441 203,499 273,044 80,742 42,989 29,414 13,575 813 26 36,859 274 2,738 12,188 3,240 66 23,494 207,091 276,730 83,375 43,955 30,279 13,676 387 I 1974 Jan. 2p 38.387 599 2,717 11,799 3,421 65 23,836 207,750 278,680 86.251 44.319 30,389 13,930 358 9P 39.977 1.000 2,773 11,712 3,574 69 23,708 205,947 277,061 81,697 44,588 30,688 13,900 380 16* 40,221 1,023 3,001 11,628 3,575 74 23,718 205,550 276,665 80,423 44,655 30,802 13.853 461 23* 39,371 1,176 2,722 11.473 3,579 74 23,763 204,496 275,672 77,293 45,112 31.233 13,879 505 30* 39.140 1,211 2,931 11.399 3,583 83 23,752 204,066 275,516 77,496 45,551 31,471 14,080 446 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1974 1973 1973 1973 Industry Jan. Jan. Jan. Jan. Jan. 2nd 1st 30 23 16 9 2 Jan. Nov. IV half half Du P O M T O r r r t a t a i h h a b m c n e e l h r r e a s i p r n d f g y o a e o u r b r m o r t y r a a d i e t b c s t i a l a o e m t l n e s g d a e o n q o m u u d f e i s a t p c a m t l u e r p n i r t n o g d : ucts... 2 6 2 3 1 , , , , , 5 3 7 8 6 0 4 4 6 4 8 6 2 6 6 2 6 2 3 1 , , , , , 6 5 3 6 8 2 1 7 5 4 8 6 1 0 0 6 2 2 3 1 , , , , , 5 8 3 7 8 0 4 8 3 1 1 4 3 9 5 2 6 2 3 1 , , , , , 4 7 3 8 7 3 2 2 5 2 9 4 9 0 2 2 6 2 3 1 , , , , , 8 3 4 7 7 0 3 0 8 2 8 7 7 6 2 - -5 1 7 5 1 7 2 1 7 3 -1 - 4 1 3 4 4 5 2 8 0 7 6 -1 - 1 2 2 1 1 1 0 9 8 3 - - 2 3 1 4 6 9 3 1 7 3 0 6 5 4 2 2 7 9 7 5 1 9 0 2 6 8 -1 6 2 3 0 4 6 2 3 2 5 7 3 2 -2 - 6 3 7 2 1 7 6 3 9 5 1 2 1,4 8 5 5 2 7 6 0 3 2 4 3 0 No T C P F O n e e o h t d x t h o e u r t e m d o i r r l , l a e i e c n b l s u i a , o l q m e l n a u s p d g o r a p u r o e n , a r o f d a i r d a n e b n s r i l l d n , u e m g b a t g b n a o o d e n b o r u a l d f e c s a a c c o t t h u e r r i ng: 3 2 2 3 1 , , , , , 4 9 2 1 2 4 9 2 1 7 1 2 4 4 8 4 2 2 3 1 , , , , , 0 2 1 4 2 5 4 6 5 7 7 1 3 7 5 4 2 3 2 1 , , , , , 0 2 1 4 2 5 7 4 2 9 7 9 8 6 3 4 2 2 3 1 , , , , , 0 2 3 1 3 8 7 9 6 1 2 7 2 7 0 4 2 3 2 1 , , , , , 0 4 1 2 2 9 6 4 2 5 0 2 3 2 6 - - 1 1 - -3 7 6 1 1 5 5 3 5 -1 - 2 2 2 3 6 9 4 5 7 9 4 8 -1 - - - 2 9 8 1 1 1 1 4 5 9 1 - -1 4 - 3 1 6 9 4 4 8 5 8 0 0 4 2 3 1 4 3 9 5 1 8 5 3 6 9 -1 2 1 - 9 7 7 6 5 4 5 3 7 - - 2 1 7 2 0 5 9 3 0 5 0 1 3 3 - 2 8 7 3 2 0 1 3 6 3 9 1 0 0 T C C S M T O A B e r r a o o l t i r l a a h n n n m v d n o e k i s i a n m r e s t t c e n h r : p g e r p u d u , e s o s C O R u n r ' c r n b o i t e t t i a d c i h n a t a m l c o a a i o t e c t c c n i u t i r m l m e o l u i r u o p n w o e d a n t t s d l i i h a n t l i i n o g i t g t c y l a c i e e s e l s s c o d s a r a e l u a n e d l s e e r s petroleum 1 4 2 2 5 5 5 8 5 5 1 0 , , , , , , , , , , , 0 2 8 1 4 9 2 4 7 2 8 0 2 6 5 5 7 9 9 0 1 1 1 2 1 6 7 5 3 4 0 9 9 1 3 2 5 5 2 5 5 8 5 1 0 , , , , , , , , , , , 8 1 9 4 9 1 8 3 4 1 8 6 5 0 4 8 9 5 7 2 7 9 9 1 9 3 9 6 0 7 5 9 7 1 3 2 5 2 5 6 5 5 8 1 0 , , , , , , , , , , , 9 4 0 8 9 1 0 4 5 1 9 0 2 8 0 3 7 9 5 6 8 1 5 3 3 8 7 8 2 0 6 3 0 i 3 6 i 5 2 5 6 8 5 1 1 ; , , , , , , , , , > 1 9 1 0 4 2 6 9 4 2 5 2 1 1 9 4 3 8 1 6 6 3 6 3 4 4 2 9 8 2 4 0 8 1 3 6 2 6 5 5 8 5 1 1 1 , , , , , , , , , , , . 9 2 0 0 5 7 8 5 2 1 4 6 5 5 7 1 4 5 6 8 1 5 8 0 9 0 0 2 9 6 - - - 2 1 2 - - 4 2 1 5 5 7 7 3 1 1 4 2 3 9 1 5 2 7 7 9 2 8 2 0 1 -3 - 4 3 3 1 1 - 2 9 6 9 9 0 5 6 5 3 6 6 4 9 4 8 1 2 2 8 1 - - 1 - - - - 3 3 1 7 2 6 2 2 1 6 1 2 2 1 9 1 9 7 9 9 4 8 8 8 0 - - - 2 1 2 - 6 5 5 3 1 1 7 3 5 8 3 9 5 6 0 9 1 8 3 1 4 0 6 1 5 2 9 4 - - 3 - 7 2 3 1 3 4 1 2 4 1 7 3 6 6 6 8 2 3 2 3 7 4 6 5 2 0 -6 4 2 6 6 4 7 1 0 5 8 5 7 2 7 8 7 8 3 7 3 5 0 4 9 2 6 3 1 - - 1 , - - - 1 3 9 5 6 1 1 9 3 5 2 3 2 8 8 8 9 9 1 9 6 3 0 7 8 2 0 4 1 1 - - , 5 , 1 0 7 9 9 2 9 5 2 3 4 5 9 5 6 2 5 9 3 6 9 0 4 2 4 1 8 8 7 1 7 4 T Fo o r ta e l i l g o c n a l n a s s c s o if m ie m d e l r o c a i n a s l and industrial 9 4 1 , , 1 5 6 1 1 5 9 4 1 , , 1 6 8 6 2 5 9 4 2 , , 1 1 6 8 5 5 9 4 2 , , 0 1 5 4 8 0 9 4 2 , , 0 6 9 6 2 4 -177 2,12 1 8 7 55 6 3 0 1,1 2 8 3 6 3 - , 3 2 8 4 4 4 4, - 4 1 4 8 7 4 - , 3 4 6 3 1 0 12,0 5 4 5 1 4 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 *109.448 109,632 110,205 110,193 110,787 -373 2,410 712 1,588 3,370 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— 1974 1973 1973 1973 Industry Jan. Dec. Nov. Oct. Sept. Aug. July June May 2nd 30 26 28 31 26 29 25 27 30 IV III II I half I Durable goods manufactur- T P M r r a i i a m n c n g 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 , , , 9 3 0 5 1 9 2 9 3 2 1 1 ,i , , 2 1 8 0 0 6 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 2 31 8 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 2 1 1 , , , 6 1 3 4 8 2 1 9 8 2 1 1 , , , 5 1 3 6 6 1 8 0 4 -2 1 0 8 1 5 8 9 -1 7 3 7 2 9 3 -7 2 1 8 5 - 1 3 6 5 1 7 9 -2 2 2 9 2 2 1 7 O O t t p h h r e e o r r d d u u f c r a t a s b b r l i e c a g t o ed o ds metal 1,7 9 2 2 5 9 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 8 3 4 0 6 1,7 8 2 6 0 1 1,6 8 9 6 0 9 1,5 8 9 3 2 3 -1 2 9 2 -6 8 7 1 8 7 4 0 28 6 1 5 6 1 8 6 Nondurable goods manufac- Fo t o u d r , i n l g iq : u or, and tobacco. 1,513 1,491 1,466 1,465 1,472 1,405 1,410 1,393 1,372 19 79 43 116 98 C O T Pe e h t l t h x e e r t e m a o i r t l l i e h e c n s e u a , o r m l n s d a r a u e n p r f d i p a n b a r i r l n u e e g b l , g b o er o d an s. d . 1 1 1 , . , ' 0 0 5 9 2 7 5 2 1 3 8 0 1 1 1 , , , 0 5 0 9 7 6 0 3 1 1 3 1 1 1 1 , , , 0 0 5 8 5 3 0 3 8 6 9 9 1 1 1 , , , 0 0 5 8 7 3 3 8 6 5 0 3 1 1 1 , , , 0 0 5 9 2 5 9 2 3 2 6 0 1 1 1 , , , 0 0 4 9 2 6 9 2 1 9 4 5 1 1 1 , , , 0 0 4 9 0 8 5 4 3 6 0 7 1 1 , , 0 4 9 8 8 6 6 7 1 3 9 6 1 1 , , 4 0 9 8 4 6 8 4 1 3 5 2 - — 2 1 5 2 8 3 1 4 2 7 5 4 9 2 7 -3 7 3 7 7 4 2 2 3 1 1 0 2 4 6 6 6 4 9 8 3 5 0 2 7 8 T M r i a n d i t n e r : g o , C O l R e i o e t u n h t m m c a e l m i r u l a d o w n i d d n h i g o t n y l a e c t s r d u a u e r l d e a a e l l e p g r a e s - s .. . 2 3 1 , , , 2 1 2 1 4 5 6 3 7 3 7 7 2 2 1 , , , 2 9 1 1 0 9 6 2 4 1 0 7 2 2 1 , , , 2 9 1 1 2 5 7 3 6 0 1 5 2 2 1 , , , 1 9 2 1 5 7 2 2 8 9 4 0 2 2 1 , , , 1 9 1 1 4 7 9 1 5 8 0 6 2 2 1 , , , 9 1 1 1 2 3 4 1 1 6 9 5 2 3 1 , , , 0 0 1 1 6 2 1 7 2 6 8 8 2 2 1 , , , 0 8 0 1 0 4 6 2 6 6 6 3 2 1 1 , , , 9 9 0 1 0 5 7 3 8 1 9 9 -3 5 1 1 0 9 3 1 1 1 1 -7 3 4 1 9 4 2 - - 1 2 2 8 1 6 7 3 1 2 1 1 3 2 6 8 1 9 1 7 1 1 1 9 2 1 8 4 5 4 T C r o a m n m sp u o n r i t c a a ti t o io n n 4,3 9 1 4 5 8 4,3 8 0 6 7 1 4,1 8 9 2 9 8 4,2 8 1 1 4 9 4,2 8 7 5 2 7 4,2 8 8 3 7 5 4,2 8 5 1 5 4 4,3 7 0 8 5 5 4,1 7 6 6 1 0 35 4 -3 7 3 2 7 3 1 9 5 6 4 4 7 2 6 Other public utilities 3,299 3,253 3,114 2,853 2,829 2,671 2,548 2,409 2,328 424 420 175 259 844 Construction 1,942 1,904 1,935 1,952 1,992 2,000 2,009 1,896 1,852 -88 96 187 151 8 S A e l r l v o i t c h e e s r domestic loans 4 2 , , 9 6 2 9 1 0 2 5 , , 6 0 0 2 3 9 4 2 , , 8 6 9 1 9 6 4 2 , , 7 5 5 5 2 2 4 2 , , 7 5 0 8 1 5 4 2 , ,4 6 5 4 8 6 4 2 , , 5 3 6 8 8 9 4 2 , ,2 5 0 62 1 4 2 , ,1 4 8 02 0 32 1 8 8 3 1 8 3 4 9 2 3 2 3 3 0 2 3 7 1 4 3 4 4 0 6 2 7 Foreign commercial and industrial loans 2,467 2,334 2,306 2,308 2,186 2,292 2,497 2,585 2,647 148 -399 18 201 -251 Total loans 40,727 40,150 39,820 39,806 39,158 39,091 38,283 37,577 921 1,523 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 • FEBRUARY 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 fi s n in a e n s c s i al Consumer Foreign o A th l e l r IPC All commercial banks: 1970—Sept 17.0 88.0 51.4 1.4 10.0 167.9 17.3 92.7 53.6 1.3 10.3 175.1 1971 Mar 18.3 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 Sept 17.9 91.5 57.5 1.2 9.7 177.9 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 18.8 108.3 69.1 2.1 11.9 210.3 Dec.? 19.1 116.2 70.1 2.4 12.4 220.1 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 14.8 62.9 27.5 2.1 6.7 113.9 Dec.? 14.9 66.2 28.0 2.2 6.8 118.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, 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 i 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 i Beginning Nov. 9,1972, designation of banks as reserve city banks for NOTE.—These hypothecated deposits are excluded from "Time deposits" reserve-requirement purposes has been based on size of bank (net demand and "Loans" at commercial banks, as shown in the tables on pp. A-18, deposits of more than $400 million), as described in the BULLETIN for A-19, and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as "Other large" and "All other bottom of p. A-17. These changes resulted from a change in Federal member" parallel the previous "Reserve City" (other than in New York Reserve regulations. See June 1966 BULLETIN, p. 808. City and the City of Chicago) and "Country" categories, respectively These deposits have not been deducted from "Time deposits" and (hence the series are continuous over time). "Loans" for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 o LOAN SALES BY BANKS; OPEN MARKET PAPER A 31 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1973—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 1,809 354 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 1974—Jan. 4,470 2,607 1,863 1,799 332 1,467 4,487 2,700 1,787 1.790 325 1.465 16. 4,503 2,691 1,812 1.791 332 1,459 23. 4,301 2,508 1,793 1,790 340 1,450 30. 4,439 2,623 1,816 1,808 342 1.466 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 i related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 196 5 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1 1 9 9 6 6 6 7 1 1 3 7 , , 6 0 4 8 5 5 4 3 , , 9 0 0 8 1 9 1 1 0 2 , , 5 1 5 8 6 4 4 3 , , 3 6 1 0 7 3 1 1 , , 1 9 9 0 8 6 1,4 9 4 8 7 3 2 4 1 5 5 9 1 1 9 6 3 4 1 1 9 5 1 6 2 2 , ,0 0 9 2 0 2 1,0 9 8 97 6 8 9 2 8 9 9 2 1 , , 2 7 4 7 1 8 196 8 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 197 0 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 197 1 32,126 495 10,923 1,478 19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972—Dec. 34,721 930 11,242 1,707 20,842 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973—Jan.. 35,727 911 11,641 1,795 21,380 6,564 2,384 1,825 560 141 198 3,841 2,337 1,948 2,279 Feb. 35,196 956 9,968 2,160 22,112 6,734 2,328 1,765 563 233 239 3,934 2,311 2,113 2,310 Mar. 34,052 993 8,366 2,463 22,230 6,859 2,269 1,777 492 165 282 4,143 2,091 2,399 2,368 Apr. 34,404 1,044 8,290 2,767 22,303 6,713 2,068 1,641 427 136 344 4,165 1,996 2,359 2,359 May 35,672 1,148 8,288 2,922 23,314 6,888 2,197 1,763 433 83 384 4,225 2,009 2,509 2,371 June 35,786 1,173 8,316 3,110 23,187 7,237 2,185 1,746 439 66 395 4,591 2,053 2,755 2,428 July. 35,463 1,207 7,954 3,307 22,995 7,693 2,254 1,803 452 132 496 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 Dec. 41,073 1,311 11,751 3,570 24,441 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 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 • FEBRUARY 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1969—Jan 7 1972—Jan. 3, 5-51/8-5V4" 1972—Sept. 4, 514-51/2" 1973—June 8 7*4 • J M u a n r e . 17 m 8* 4 2 1 4 7 , . 4 4 5 3 / 4 8 - -4 5 3 - ^ 5 - ^ 5 - - 5, 5*4- 2 1 5 9 7 7 1 3 / 4 2 « « -734 31 41^-43/4.-5 25! 1970—Mar. 25 8 534 July 2 734.-8 Sept. 21 7% Feb. 28, 43/8-4^- 3 734-8. Nov. 71/4 43/4- Oct. 2. 5*4--5% 9 8-814" 7 Mar. 13, 43/4. 4. 51/2-534- 17 814--81/2 Dec. 634 23, 53/4- 18 81/4-81/2. 1971—Jan. 6 61 % /4 Apr. 27 3 . . 4 43 % 4> « — -5 4 5 Nov. 1 6 6 . i 5V4m-5Vs 2 3 3 0 8 8i i / / 2 2- . 8 34. 6 5. Sm 20. 5533/44-.-5% Aug. 6 834-9. Feb. 16 534 17. 5«-5% 7 9. Mar. 11 Dec. 26. 534.-6 13 9-914" 51/4 May 1. 5--5 i/g-5 V4 27. 534-6. 21 914--91/2 30. 5m 22 91/2- A M p a r y . 23....... 5 5* i4 4 -5i/2 June 12. 5«-5I/8 1973—Jan. 4. 2 2 8 9 9 9 1 3 / 4 2 . - 934. July 6 5*4-6 26. 5-51/4- Feb. 2. 66..-6 *4 6 14. 14 9 34 .-10 Oct. 20 534 July 3. 5%--5% 26. 6.-614 18 10. 10. 5^-53/s- 27. 614- 27 934-10. Nov. 22 4 8 1 5 5 3 * 4 4- .-55/8 3 1 1 7 , . 5 5 V V 5 5 4 4 » m * y 4 - 2 - 5 5 V y 2 s~ Mar. 2 1 6 9 , . 614.-634 2 2 4 2 9 9 1 1 / / 2 2 - - 9 9 3 3 4 4 - .- 1 1 0 0 . 29 51/4-5 Vi" Aug. 11. Apr. 18 61/2-634. 1974—Jan. 7 91/2-934.- Dec. 6 514-53/8- 2 1 1 4 , 51/4--53/8 19, 63/4. 14 91/ 9 2 9 - /i 9 o 3 /4.- 5%-5*4- 25, 51/ 5 4 * " 4 - 53/8 May 4 7 , , 7 6 . 3 4.-7 29 91 9 /4 8 - /i 9 o 1 /2.- 31 51/4- 29 51/4-53/8- 24. 7«-7I4 9v/io 5V4" 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 Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 Short-term 35 centers 10.08 9.24 9.80 8.95 10.14 9.25 10.43 9.50 10.18 9.31 9.95 9.14 New York City 9.90 9.08 10.04 8.93 10.28 9.32 10.31 9.37 10.01 9.20 9.83 9.03 7 Other Northeast 10.51 9.49 10.34 9.30 10.57 9.51 10.86 9.95 10.58 9.72 10.32 9.22 8 North Central 10.02 9.24 9.02 8.21 9.81 9.02 10.38 9.44 10.19 9.28 9.91 9.21 7 Southeast 9.96 9.25 9.58 8.85 9.82 9.07 10.16 9.23 9.97 9.02 9.89 9.48 8 Southwest 10.08 9.16 9.91 9.10 10.09 9.18 10.28 9.34 10.04 9.18 9.97 9.03 4 West Coast 10.04 9.25 10.23 9.67 10.26 9.48 10.28 9.46 10.13 9.33 9.95 9.17 1 Revolving credit 35 centers 10.13 9.22 10.09 9.48 10.18 9.46 10.20 9.34 10.23 9.32 10.11 9.19 New York City 10.30 9.25 9.84 8.97 10.09 9.11 10.33 9. 18 10.21 9.34 10.31 9.25 7 Other Northeast 10.09 9.72 10.36 9.90 10.69 9.98 10.55 10.35 10.32 10.30 10.00 9.59 8 North Central 10.22 9.44 9.96 9.55 10.17 9.34 9.70 9.17 10.55 9.42 10.24 9.48 7 Southeast 9.22 8.90 9.11 9.57 9.54 9.41 9.83 9.39 9.75 7.48 10.05 9.14 8 Southwest 10.74 9.72 10.46 8.78 10.19 9.34 11.22 9.54 10.72 10.11 10.64 9.64 4 West Coast 9.92 9.00 10.09 9.36 10.21 9.51 10.16 9.28 10.04 9.10 9.88 8.95 Long-term 35 centers 10.68 r 9.85 10.36 9.43 10.45 r 9.65 10.23 r 9.64 10.54 9.48 10.78 9.94 New York City 11.05 9.96 9.69 8.75 10.92 r 9.69 10.45 9.27 10.60 9.63 11.12 10.03 7 Other Northeast 10.17 9.87 10.80 9.68 10.32 9.79 9.83 9.56 9.94 8.68 10.29 10.24 8 North Central 10.92 9.70 10.08 8.60 10.40 9.54 10.12 9.99 10.25 10.00 11.16 9.63 7 Southeast 12.33 r 9.77 9.10 9.16 10.98 r 9.59 13.07 r 9.68 15.73 11.25 10.96 9.37 8 Southwest 10.28 10.12 10.95 10.19 10.22 9.61 10.15 9.76 10.59 9.71 10.21 10.40 4 West Coast 10.18 9.71 9.92 9.97 10.29 9.58 9.80 9.57 10.73 9.25 10.15 9.80 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

FEBRUARY 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 bills5 6-month bills5 9-to 12-month issues PPPeeerrriiioooddd ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee333 yyeeaarr 90-119 4- to 6- 333--- tttooo 666--- 999000 dddaaayyysss 111 Rate Market Rate Market 1 -year iissssuueess77 days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other 6 issue issue ket yield)5 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 4.66 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 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 1974—Jan 8.86 8.66 7.92 8.72 9.65 7.755 7.77 7.627 7.65 7.01 7.46 6.94 Week ending— 1973—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 NNoovv.. 3 8.55 8.28 7.50 8.50 9.90 7.196 7.38 7.263 7.43 6.99 7.32 6.83 10. . , 8.88 8.69 7.63 8.75 9.71 8.098 8.12 7.987 8.06 7.42 7.85 7.03 17 , 9.18 9.08 8.10 8.75 10.03 8.636 8.11 8.381 8.30 7.64 8.01 7.16 24 9.28 9.09 8.16 8.75 10.23 7.704 7.72 7.805 7.85 7.37 7.50 6.88 Dec. 1, 9.25 9.10 8.05 8.75 10.09 7.695 7.52 7.679 7.77 7.29 7.36 6.78 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 1974—Jan. 5 9.13 8.88 8.00 8.75 9.87 7.406 7.49 7.371 7.48 6.94 7.37 6.83 12 8.85 8.65 7.80 8.75 9.76 7.615 7.72 7.560 7.66 7.07 7.41 6.88 19 8.95 8.75 7.90 8.75 9.77 7.983 7.89 7.867 7.79 7.04 7.52 6.94 26 8.90 8.68 8.00 8.75 9.60 7.995 7.99 7.819 7.81 7.07 7.58 7.06 Feb. 2 8.45 8.38 7.93 8.55 9.47 7.778 7.55 7.516 7.31 6.80 7.33 6.94 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 • FEBRUARY 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local i utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i States (long- Re- Baa Indus- Rail- Public term) Total i Baa New cently trial road utility Pre- Com- Comissue offered ferred mon mon Seasoned issues 196 3 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 196 4 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 196 5 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 196 9 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 1973—Ja n 5.94 5.13 4.90 5.39 7.38 7.37 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 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 8.04' 8.05 7.68 8.48 7.84 8.28 8.17 7.76 3.70 1974—Ja n 6.56 5.23 5.03 5.49 8.21 8.22 8.15 7.83 8.58 7.97 8.34 8.27 7.60 3.64 Week ending— 1973—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 1974—Jan. 5. 6.52 5.16 4.90 5.50 8.13 8.10 7.73 8.54 7.87 8.35 8.22 7.81 3.56 12. 6.57 5.24 5.05 5.50 8.17 8.25 8.12 7.77 8.56 7.92 8.37 8.23 7.55 3.73 19. 6.57 5.24 5.05 5.45 8.27 8.21 8.16 7.85 8.58 7.98 8.35 8.26 7.51 3.65 26. 6.57 5.28 5.10 5.50 8.24 8.26 8.18 7.88 8.60 8.02 8.31 8.32 7.49 3.60 Feb. 2. 6.55 5.24 5.05 5.50 8.19 8.18 7.87 8.58 8.01 8.30 8.33 7.62 3.65 Number of issues2.. . 12 20 20 30 41 30 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- only, based on Thurs. figures; from Moody's Investor Service. (3) 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— 1 Fees and charges—related to principal mortgage amount—include the average price of a share of stock listed on the American Stock Exchange loan commissions, fees, discounts, and other charges, which provide was $10.90 on June 30, 1965. As of Sept. 1973, a new market-value index added income to the lender and are paid by the borrower. They exclude with a starting value of 100.00 replaced the previous series. An index for any closing costs related solely to transfer of property ownership. past periods is being calculated on the new market-value basis and will be published as it becomes available. NOTE.—Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages NOTE.—Annual data are averages of monthly figures. Monthly and based on probability sample survey of characteristics of mortgages weekly data are averages of daily figures unless otherwise noted and are originated by major institutional lender groups (including mortgage computed as follows: U.S. Govt, bonds, derived from average market companies) for purchase of single-family homes. Data exclude loans for yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year refinancing, reconditioning, or modernization; construction loans to bond. Municipal and corporate bonds, derived from average yields as homebuilders; and permanent loans that are coupled with construction computed by Standard and Poor's Corp., on basis of a 4 per cent, 20- loans to owner-builders. Series revised beginning Jan. 1973; hence data are year bond; Wed. closing prices. Common stocks, derived from com- not strictly comparable with earlier figures. See also the table on Homeponent common stock prices. Average daily volume of trading, normally Mortgage Yields, p. A-53. conducted 5 days per week for 5% hours per day, or 27y2 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

FEBRUARY 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 Standard and Poor's index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Exchange ( G l U o o . n v S g t . - , S l a o t n c a d a te l p A C o A r o a r A t - e Total In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u al s - T p t o r i a r o t n n a s - - Utility na F n i- ce in to d t e a x l 1 NYSE term) 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 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 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 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 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 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 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 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 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 16,374 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 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 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 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 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 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 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 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 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 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 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 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 60.66 85.2 62.3 96.11 107.18 44.37 48.60 51.39 55.77 36.85 35.89 64.80 95.32 16,506 60.98 85.8 62.6 98.48 110.02 46.68 48.24 52.47 57.17 38.41 35.12 65.69 92.66 20,522 60.61 85.4 62.5 96.98 105.50 44.63 48.54 50.74 54.87 36.44 35.25 64.90 94.85 17,293 60.58 85.1 62.2 95.24 106.11 44.56 48.58 50.97 55.19 36.67 35.24 64.87 94.74 16,059 60.60 84.8 62.0 96.49 107.68 43.63 48.61 51.56 56.04 36.73 35.28 64.34 96.06 16,139 60.76 85.2 62.2 96.21 107.39 42.59 48.56 51.45 55.92 36.27 35.28 64.14 97.03 13,910 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r e r p a o a n e t n c r t e - t ) c F c h ( e e a p e n r e s t g r ) & e 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 m L o o l o u o la a s u r . n n s o t ) f C c t ( r r e p a o a n e t n c r t e - t ) c F c h ( e e a p n e r e s t g r ) & e i s M (y a e t a u r r s i ) t y L c r p ( o e a p r n a t i e c i n r t o e ) 1 (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 s a u . r n n s o ) t f 1965, 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966, 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967. 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968. 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969. 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71 .5 28.3 19.9 1970. 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971 . 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1972. 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1972--Dec 7.51 .92 27.5 78.0 37.9 29.0 7.45 .86 26.4 76.8 34.0 25.7 1973--Jan 7.52 1.03 25.7 76.6 35.8 27.0 7.53 .94 23.2 75.2 30.5 22.6 Feb 7.52 1.15 26.8 78.6 35.9 27.6 7.55 1.03 23.6 77.5 29.2 22.0 Mar 7.51 1.09 26.6 78.4 36.7 28.3 7.54 .95 23.3 76.9 29.3 22.0 Apr 7.53 1.11 26.6 78.2 36.9 28.2 7.55 .96 23.9 77.3 30.1 22.8 May 7.55 1.05 25.9 77.7 35.6 27.2 7.62 .93 23.5 77.5 30.0 22.3 June 7.62 1.08 26.3 78.0 35.8 27.5 7.64 .92 23.4 75.9 31.7 23.5 July 7.69 1.11 26.3 78.1 37.0 28.3 7.70 .91 24.1 75.5 33.3 24.6 Aug 7.77 1.08 26.7 76.7 38.6 28.9 7.87 .92 23.4 75.6 32.0 23.6 Sept 7.98 1.19 26.6 77.3 37.2 28.2 8.10 .97 23.1 74.1 32.8 23.5 Oct 8.12 1.20 26.1 76.9 38.5 29.0 8.35 .92 22.5 72.7 31.8 22.6 Nov 8.22 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 • FEBRUARY 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—Dec. 9,045 8,180 865 7,900 798 254 50 26 1,896 414 1973—Jan... 8,840 7,975 865 7,700 796 249 48 26 '1,932 413 Feb.. 8,640 7,773 867 '7,500 800 248 50 25 '1,951 431 Mar.. 8,347 7,468 879 '7,200 813 244 48 24 '1,862 442 Apr.. 8,165 7,293 872 7,040 804 232 49 21 '1,952 389 May. 7,650 6,784 866 6,540 802 224 47 20 '1,992 413 June. '7',369 6,416 '953 6,180 '885 215 53 21 '1,973 396 July.. '7,299 6,243 rl.056 6,010 '976 216 '64 17 '1,957 379 Aug.. '7,081 6,056 rl ,025 5,830 r949 210 '61 16 '1,952 348 Sept.. '6,954 5,949 r1,005 5,730 '929 204 '60 15 '1,909 379 Oct.. '7,093 5,912 '1,181 5,690 1,150 203 '59 19 '1,878 419 Nov.. 5,671 5,460 197 14 464 Dec.. 5,251 5.050 189 12 454 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 ((mmiill-- End of period credit balance EE pp nn eerr dd ii oo oo dd ff ll dd iioo oo oo ff nn ll -- ss 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e n t 6 L 0 e p ss e r t h c a e n n t of ( m do il l l l i a o r n s s ) llaarrss))!! 34.4 52.9 12.7 6,100 1972—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 37.4 53.1 9.4 5,740 Sept.. 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 37.5 42.2 20.3 5,882 Nov.. 5,460 5.4 6.1 12.0 16.9 19.5 40.1 39.4 40.0 20.6 5,935 Dec.. 5,050 5.8 7.7 14.4 17.4 20.3 34.2 NOTE.—Special miscellaneous accounts contain credit balances that i See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually ateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. ateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 EEnndd ooff ppeerriioodd M ga o g r e t - Other G U o . v S t . . S g l a o o t n c a v a d t t e l . o C t r a o h a n r t e d p e r o 1 - Cash O as t 3 h e e t r s g l r i T e e a a t n s o b i n e e e t i r d s r a l v i a l - e l De it p s o 2 s - l O ia t t i b h e i s e l i r - G r c e o e a s n u e c e n r - r v t a s e l classi ( f i i n e d m b o y n t m h a s) t urity accts. 3 or 3-6 less 1965,, 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 1966,, 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 1967., 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 1968., 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1969 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1.588 5,530 584 485 452 1970 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 1971. 62,069 2,808 3.334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 19724 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1972--Dec.... 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1973--Jan 68,021 3,624 3,489 935 22,190 1,319 2,055 101,632 92,398 2,221 7,014 1,569 915 688 Feb.... 68,352 4,030 3,419 986 22,389 1,331 2,070 102,577 92,949 2,540 7,088 1,729 862 732 Mar.. . 68,920 3,970 3,458 1,028 22,509 1,576 2,058 103,518 94,095 2,285 7,139 1,816 886 826 Apr 69,426 3,831 3,388 1,080 22,598 1,582 2,089 103,994 94,217 2.589 7,189 1,904 725 May... 69,988 4,099 3,376 1,076 22,615 1,629 2,116 104,899 94,744 2,904 7,251 1,792 913 712 June... 70,637 3,959 3,346 1.125 22,562 1,775 2,273 105,677 95,706 2,650 7,321 1,711 1,020 573 July... 71,219 3,819 3,190 11,,009933 22,683 1,555 2,202 105,761 95,355 3.044 7,362 1,626 906 636 Aug 71,713 3,986 3,037 999999 22,277 1,551 2,227 105,789 94,882 3,496 7,411 1,302 840 718 Sept.. . 72,034 4,200 2,945 957 21,799 1,491 2,345 105,771 95,183 3,134 7,453 1,411 762 589 Oct... . 72,367 4,181 3,007 939 21,276 1,501 2,285 105,557 94,944 3,139 7,474 1,318 771 510 Nov 72,760 4,424 2,948 925 21,150 1.519 2,264 105,991 95,259 3,201 7,530 1,272 685 479 Dec.f.. 73,260 4,109 3,023 925 21,226 i; 8i9 2,264 106,626 96,409 2,601 7,615 1,250 598 405 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 End of period Total Mort- Real Policy assets Total U S n ta i t t e e s d Sta lo te c a a l n d Foreign 1 Total Bonds Stocks 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 13,825 197 0 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16.064 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17.065 197 2 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 1972—Nov.... 238,338 11,619 4,832 3,379 3,408 113.180 87.139 26,041 75,904 7,261 17,927 Dec.. .. 239,730 11,372 4,562 3,367 3.443 112,985 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 3,512 115,897 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 3.520 118,061 91,144 26,917 78,243 7,577 18,841 Aug 247,655 11,416 4,462 3,433 3.521 117,842 91,342 26,500 78,657 7,632 19,181 Sept 250,203 11,404 4,424 3,439 3,541 119,200 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 Nov 251,055 11,462 4,471 3,444 3,547 118,016 91,847 26,169 80,191 7,838 19,926 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 • FEBRUARY 1974 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Liabilities Mortgage Total loan comassets— mitments End of period M ga o g r e t s - I s i n m e t v i c e e u e n s s r t 1 t - - Cash Other2 lia T b o il t i a t l i es S c a a v p i i n ta g l s wo N r e t t h 3 m r B o o w n or e e - d y 4 Loans Other ou a p t t s e e t r n a i n d o d d o i 5 n f g 196 7 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 3,042 196 8 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 196 9 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 197 0 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 197 1 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 197 2 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 11,578 1973—Jan... 6 208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 12,469 Feb... 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 •6,766 13,538 Mar.. 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 14,508 Apr... 216,250 23,943 17,605 257,798 217,026 16,133 11,336 6,548 6,755 15,009 May.. 219,500 24,072 17,990 261,562 218,906 16,505 11,756 6,727 7,668 15,139 June.. 222,801 23,362 18,038 264,201 222,183 16,315 12,766 6,770 6,167 14,776 July. . 225,490 22,769 18,416 266,675 221,958 16,640 14,295 6,702 7,080 13.778 Aug.. 228,006 21,139 18,826 267,971 220,800 16,986 15,703 6,464 8,018 12,314 Sept.. 229,413 20,161 19,131 268,705 222,645 16,872 16,324 6,078 6,786 10,861 Oct... 230,425 20,756 19,421 270,602 223,594 17,131 16,505 5,548 7,824 9,970 Nov.. 231,319 21,360 19,576 272,255 224,867 17,420 16,382 5,023 8,563 9,777 Dec.*. 232,322 21,182 19,369 272,873 227,802 17,225 17,193 4,683 5,970 9,621 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 Liabilities and capital operations) cooperatives credit banks banks End of period Ad- Cash Mem- Deben- Loans Loans v m an t e o m c e - s I m nv e e n s t t s - p a o d n s e i d - t s B n a o o n n t d e d s s po b d s e e i r - t s C s a to p c it k a l M l g o ( a A o a g r n ) e t s - n t a u o n r t d e e s s c a o t o t i p o v e es r - D t e u b r e es n - co a d u n is n d - t s D t e u b r e es n - M l g o a o a g r n e t s - Bonds bers (L) (A) (L) (A) (L) (A) (L) 196 7 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 196 8 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 196 9 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 197 0 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 197 1 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972—Dec.. 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973—Jan.. 7,831 2,264 91 6,971 1,306 1,821 19,980 19,252 r2,808 1,950 6,087 5,891 9,251 8,280 Feb.. 7,944 2,421 106 7,220 1,323 1,891 20,181 19,402 2,936 2,188 6,179 5,969 9,387 8,280 Mar. 8,420 1,938 108 7,220 1,291 1,943 20,571 19,985 2,896 2,188 6,414 6,076 9,591 8,280 Apr.. 9,429 2,087 111 8,415 1,143 1,981 20,791 20,056 2,859 2,465 6,555 6,314 9,767 8,836 May. 10,155 2,702 95 9,615 1,261 1,991 21,087 20,225 2,765 2,370 6,777 6,460 9,953 8,836 June. 11,145 2,516 108 10,215 1,453 2,008 21,413 20,364 2,725 2,316 6,958 6,645 10,117 8,836 July. 12,365 2,126 103 11,213 1,183 2,035 21,772 20,843 2,811 2,365 6,981 6,745 10,256 '9,388 Aug. 13,511 2,016 111 12,562 1,091 2,064 22,319 21,186 2,865 2,310 '7,065 6,727 10,441 9,390 Sept. 14,298 2,908 102 14,062 1,178 2,089 22,826 21,537 r2,738 2,560 '7,170 6,833 '10,592 9,388 Oct.. 14,799 3,498 106 15,362 1,270 2,107 23,348 22,243 '2,711 2,728 '7,130 6,901 '10,781 '9,838 Nov. r14,866 3,649 77 15,362 1,545 2,112 23,912 22,404 '2,662 2,704 r7,029 6,890 '10,926 9,838 Dec.. 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 '7,198 6,861 11,071 9,838 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

FEBRUARY 1974 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, DECEMBER 31, 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: 1/26/70 - 1/25/74 8.40 300 Debentures: 7/2/73 - 1/2/74. . . 7.55 9/21/73 - 1/25/74 9 % 500 12/10/71 - 3/11/74. .. 5.45 400 8/1/73 -2/4/74. . . 8.70 6/26/70 - 2/25/74 8.40 250 4/10/70 - 3/11/74 7.75 350 10/1/73 - 3/4/74.. 9.90 8/27/71 - 2/25/74 7.10 300 8/5/70 - 6/10/74 7.90 400 10/1/73 -4/1/74. . 9.85 8/27/73 - 2/25/74 9.75 700 11/10/71 -6/10/74.... 5.70 350 11/1/73 - 5/1/74.. 7.95 6/25/71 -5/25/74 6.35 300 9/10/69 - 9/10/74 7.85 250 12/3/73 - 6/3/74. . 8.80 2/26/73 - 5/28/74 6.45 700 2/10/71 - 9/10/74 5.65 300 10/1/73 -4/4/77. . 7.70 8/25/69 - 8/25/74 7.65 176 5/10/71 - 12/10/74.... 6.10 250 8/25/72 - 8/26/74 5 % 400 9/10/71 - 12/10/74.... 6.45 450 8/27/73 - 8/26/74 95/s 800 11/10/70 - 3/10/75. . . 7.55 300 Federal intermediate 11/25/69 - 11/25/74. . . 8.00 221 10/12/71 - 3/10/75. . . 6.35 600 credit banks 5/25/73 - 11/25/74 7.05 1,000 4/12/71 -6/10/75 5.25 500 Debentures: 1/26/71 - 2/25/75 6.10 250 10/13/70 - 9/10/75. . . 7.50 350 4/2/73 - 1/2/74 7.00 11/27/72 - 2/25/75 5% 400 3/12/73 -9/10/75 6.80 650 7/1/71 - 1/2/74 6.85 9/21/73 -2/25/75 8.20 500 3/10/72 - 12/10/75. . . 5.70 500 5/1/73 -2/4/74 6.90 4/12/73 - 5/25/75 7. 15 700 9/10/73 - 12/10/75.... 8.25 300 6/4/73 - 3/4/74 7.00 8/25/70 - 5/26/75 8.05 265 3/11/71 - 3/10/76 5.65 500 7/2/73 -4/1/74 7^/2 7/27/70 - 8/25/75 7.95 300 6/12/73 - 3/10/76 7.13 400 8/1/73 - 5/1/74 8.65 7/25/73 - 8/25/75 7% 500 6/10/71 - 6/10/76 6.70 250 9/4/73 - 6/3/74 9% 10/25/73 - 8/25/75 7. 15 400 2/10/72 - 6/10/76 5.85 450 10/1/73 -7/1/74. . . . 934 12/18/70- 11/25/75.... 6.50 350 11/10/71 -9/10/76.... 6.13 300 1/4/71 - 7/1/74.... 5.95 5/25/73 - 11/25/75 7.05 600 6/12/72-9/10/76 5.85 500 11/1/73 - 8/1/74. . . . 7.95 8/27/71 - 2/25/76 m 300 7/12/71 - 12/10/76.. .. 7.45 300 12/3/73 - 9/3/74. . . . 8.60 8 6 / / 2 2 7 2 / / 7 7 3 3 - - 2 5 / / 2 2 5 5 / / 7 7 6 6 s 7 y . 4 2 0 6 3 0 00 0 2 1 / 2 1 / 3 1 / 1 62 /7 2 - - 2 1 / 2 1 / 0 1 /7 0 7 /7 . 6... 4 6 i . / 2 2 5 5 19 0 8 0 5 1 / / 1 3 / / 7 7 2 2 - - 7 1 / / 1 2 / / 7 7 5 5 6 5 . . 0 7 5 0 11/27/73 - 5/25/76 7.45 300 9/11/72 - 3/10/77 6.30 500 3/1/73 - 1/5/76 6.65 7/25/73 - 8/25/76 7.80 500 12/10/70 - 6/10/77. . . 6.38 250 7/2/73 - 1/3/77 7.10 10/25/73 -2/25/77 7.20 500 5/10/71 - mom 6.50 150 6/25/71 - 5/25/77 6.95 200 12/10/73 - 6/10/77. . . . 7.20 500 Federal land banks 4/12/73 - 8/25/77 7.15 300 9/10/71 -9/12/77 6.88 300 Bonds: 2/26/73 - 11/25/77 6% 300 9/10/73 -9/12/77 7.85 400 7/20/72 - 1121174. . 5.55 11/27/73 - 11/25/77.... 7.45 300 7/10/73 - 12/12/77. . .. 7.25 500 2/20/62 - 2/20/74. . 41/2 9/21/73 - 5/25/78 7.60 500 10/1/73 - 12/12/77.... 7.55 500 10/20/70 - 4/22/74. 7.30 3/25/70 - 2/25/80 7.75 350 6/12/73 - 6/12/78 7.15 600 9/15/72 -4/22/74... 5.85 10/15/70- 10/15/80 7.80 200 10/12/71 - 12/11/78. . 6.75 300 10/20/71 - 7/22/74. . 5.85 10/27/71 - 11/27/81. . . 6.60 200 12/10/73 - 3/12/79. . .. 7.25 500 4/20/71 - 10/21/74.. 5.30 4/12/73 - 5/25/83 7.30 200 9/10/73 -6/11/79 7.85 300 2/20/70 - 1/20/75. . 8^8 10/25/73 - 11/26/93 73/8 400 6 12 /1 /1 2 0 / / 7 7 2 1 -9 - /1 1 0 2 / / 7 1 9 0 /79. . 6 6 . . 5 4 5 0 3 3 5 0 0 0 4 4 / / 2 2 3 0 / / 7 6 3 5 - - 1 4 / / 2 2 0 1 /7 /7 5 5 . . .. . 4 7 ^ .1 5 Federal Home Loan 2/10/72 - 3/10/80 6.88 250 7/20/73 -4/21/75. .. 7.65 Mortgage Corporation 2/16/73 -7/31/80 5.19 2/15/72 -7/21/75... 5.70 Bonds: 2/16/73 - 7/31/80 3.18 9 7/20/71 - 10/20/75.. 7.20 2/10/72 - 8/26/74 5.30 200 10/1/73 -9/10/80 7.50 400 10/23/73 - 10/20/75. 7.40 5/29/73 - 8/25/76 7.05 400 1/16/73 - 10/30/80.... 4.46 5 4/20/72- 1/20/76... 6Va 5/11/72 - 2/25/77 6.15 350 12/11/72 - 12/10/80. .. 6.60 300 2/21/66 - 2/24/76. . 5.00 11/19/70- 11/27/95 8.60 140 6/29/72- 1/29/81 6.15 156 1/22/73 -4/20/76... 61,4 7/15/71 - 8/26/96 7.75 150 3/12/73 - 3/10/81 7.05 350 7/20/66 - 7/20/76. . 5^8 5/11/72 - 5/26/97 7.15 150 4/18/73 -4/10/81 6.59 26 4/23/73 - 10/20/76.. 7.15 Federal National Mortgage 3/21/73 - 5/1/81 4.50 18 7/20/73 - 7/20/77. .. 71/2 Association— 3/12/73 - 5/1/81 5.77 2 10/20/71 - 10/20/77. 6.35 Secondary market 1/21/71 - 6/10/81.... 7.25 250 2/20/63 - 2/20/73-78 41/s operations 9/10/71 -9/10/81 7.25 250 5/2/66 - 4/20/78 . . . 5Vs Discount notes 2,153 6/28/72-5/1/82 5.84 58 7/20/72 - 7/20/78. . 6.40 Capital debentures: 2/10/71 - 6/10/82 6.65 250 10/23/73 - 10/19/78. 7.35 4/1 no -4/1/75 8.00 200 9/11/72 - 9/10/82 6.80 200 2/20/67 - 1/22/79. . . 5.00 9/30/71 - 10/1/96 4.38 248 3/11/71 - 6/10/83 6.75 200 9/15/72 -4/23/79... 6.85 10/2/72- 10/1/97 7.40 250 6/12/73 - 6/10/83 7.30 300 10/23/72 - 10/23/79. 6.80 11/10/71 - 9/12/83 6.75 250 1/22/73 - 1/21/80... 6.70 Mortgage-backed bonds: 4/12/71 -6/11/84 6.25 200 7/20/73 - 7/21/80. .. 71/2 6/1/70 - 6/2/75 8.38 250 12/10/71 - 12/10/84. . 6.90 250 2/23/71 -4/20/81... 6.70 3/14/73 - 1/15/81 3.58 53 3/10/72 - 3/10/92 7.00 200 4/20/72-4/20/82... 6.90 3/14/73 - 1/15/81 5.48 6 6/12/72 - 6/10/92 7.05 200 4/23/73 - 10/20/82.. 7.30 6/21/73 - 7/1/82 5.85 72 12/11/97- 12/10/97. . . 7.10 200 10/23/73 - 10/20/83. 7.30 6/21/73 - 7/1/82 5.92 35 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 • FEBRUARY 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest- of Net lend- out- or Public Plus: ments by Govt. Equals: Trea- financ- Budget ex- ing lays i deficit debt Agency accounts Less: Total sury ing, receipts pendi- (-) securi- securi- Special borrow- operat- Other net4 tures ties ties notes 3 iinngg ing Special balance issues OOtthheerr Fiscal year: 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 197 3 232.225 246,526 -14,301 30,881 216 12,029 -207 19,275 2,459 -1,613 -4,128 Half year: 1972—Jan.-June. .. 115,549 120,319 -4,850 3,130 -150 4,010 1,089 -2,114 389 1,028 8,377 July-Dec.. .. 106,062 118,579 -12,517 22,038 876 6,351 -823 1177,,338866 956 -1,520 -5,434 1973—Jan.-June. .. 126,164 127,940 -1,776 8,844 -660 5,790 654 11,,888899 1,503 -88 1,302 July-Dec.. .. 124,253 130,360 -6,107 11,756 477 5,396 824 6,013 -2,202 -191 -2,299 Month: 1972—Dec ' 18,976 19,648 -673 5,051 -87 1,104 -343 4,203 2,795 30 -705 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 Sept 25,007 20,736 4,271 -406 40 -756 -173 564 5,207 346 718 Oct 17,637 23,092 -5,455 1,037 29 -306 -22 1,395 -2,588 -43 1,431 Nov 20,208 22,099 -1,891 1,561 273 -3,510 3,141 2,202 -1,010 -48 -1,368 Dec 21,987 19,686 2,302 5,861 -174 5,574 -3,016 3,128 5,693 -54 209 Selected balances Treasury operating balance Federal securities Memo: End Debt of pe o ri f o d B F a . n R k . s ac l c T a o o n a a u d x n n ts d t O a e r p t i h o e e s s r i 5 - Total se P c d u u e b r b i l t t i i c e s s A ec g u e r n it c i y e s Sp G I e n c o v i v a e t l s , L tm e a s c e s c : n o t u s n o t f s S n L p o e e t c s e s i s a : 3 l E p T h q u o b e u b t y l a d a l i l l c s : s c p p o G r o N r i n o p v o s v a s w o t . t — r . e - e 6 d issues Fiscal year: 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 2 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 42,640 197 3 2,543 7,760 70 10,374 469,898 11,586 107,135 24,467 825 349,058 Month: 1972—De c 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 11,109 101,738 24,093 825 343,045 51,325 July.... 2,867 4,203 108 7,178 459,003 11,118 102,996 23,968 825 342.332 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 59,317 Dec 2,543 7,760 70 10,374 469,898 11.586 107.135 24,467 825 349,058 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

FEBRUARY 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 Employment Estate Misc. Total taxes and Excise Cus- and 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 co P n a t y r - ibut S io el n f- s1 e in U m s n u p - r l. . c O e n r i t p h e e - t t e s r 2 t N ot e a t l taxes toms gift roll empl. taxes Fis 1 1 1 1 c 9 9 9 9 a 7 7 7 7 l 0 2 3 1 y ear: 2 2 1 1 0 3 9 8 8 2 3 8 , , , , 6 2 7 3 4 2 4 9 9 5 3 2 7 7 9 8 7 8 6 3 , , , , 4 0 4 2 1 9 9 0 6 3 0 0 2 2 2 2 6 5 7 4 , , , , 2 6 0 2 3 7 1 6 6 9 9 2 2 1 1 1 1 3 4 4 , , , , 8 2 5 1 6 4 4 2 0 3 2 6 9 9 8 1 0 4 6 03 , , , 4 7 2 ,2 1 3 3 4 2 7 0 6 3 3 3 3 5 4 0 9 , , , , 0 9 3 0 3 2 2 4 7 6 0 5 2 2 2 3 , , , , 2 7 8 5 0 9 6 3 3 0 5 8 4 3 3 5 4 7 9 2 , , , , 0 7 1 5 5 8 9 0 1 8 0 5 2 1 2 1 , , , , 0 3 9 9 7 4 4 3 1 8 2 2 4 3 3 6 , , , , 4 3 0 6 6 5 5 7 5 1 7 3 2 3 3 3 , , , , 7 4 2 6 3 0 0 1 7 0 6 4 4 4 6 5 5 8 4 3 , , , , 2 5 5 9 7 9 1 4 8 8 4 2 1 1 1 1 5 5 6 6 , , , , 7 4 6 2 0 7 1 6 5 7 4 0 2 2 3 3 , , , , 5 4 2 1 9 3 8 8 1 0 8 7 5 4 3 3 , , , , 9 4 7 6 1 3 3 4 7 6 5 4 3 3 3 3 , , , , 8 9 4 6 5 2 3 2 8 1 3 4 Ha 1 1 lf 9 9 7 7 y 3 2 e — — ar J J J : J u u a a n l l n y y . - - - - J J D D u u e e n n c c e e . . 1 1 1 1 1 2 0 2 5 6 6 4 , , , , 4 1 0 2 6 6 6 5 9 5 3 2 4 4 5 5 4 6 2 2 , , , , 7 0 9 0 5 6 5 3 1 1 6 4 2 2 0 1 5 6 , , , . 0 2 2 7 9 3 0 8 0 5 7 4 2 1 1 3 , , 1 5 9 6 6 7 9 8 9 9 9 8 5 5 5 5 1 2 1 8 , , , , 2 0 1 1 9 7 5 7 1 2 2 0 2 2 1 1 1 3 5 6 , , , , 6 7 3 5 6 1 3 8 4 5 0 9 1 1 1 1 , , , , 3 4 4 4 1 5 3 9 2 9 4 4 2 2 2 3 4 2 9 0 , , , , 4 4 9 0 4 9 6 1 5 3 5 3 2 1 , , 2 8 2 1 7 0 0 6 7 6 5 1 4 2 2 3 , , , , 7 4 6 9 3 3 1 7 6 7 6 4 1 1 1 1 , , , , 7 8 7 9 4 6 6 7 1 4 7 3 3 2 3 3 0 6 7 5 , , , , 9 6 8 1 2 7 0 6 5 5 9 7 6 8 8 8 , , , , 5 0 2 9 1 1 4 6 6 4 6 6 1 1 1 1 , , , , 4 5 6 6 5 4 3 3 1 9 7 3 3 2 2 2 , , , , 0 3 5 5 4 3 8 \ 1 4 3 4 2 2 1 1 , , , , 9 7 0 8 1 6 5 6 5 8 9 5 Mo 1 n 9 t 7 h 2 : — De c r18,976 r7,830 353 61 8,122 5,772 140 2,601 93 277 2,975 1,286 234 354 r364 1973— A J J J M D F O M S N A u a u e e p e c u o a a n n l p b c t r y v g y r e t 2 2 2 2 2 2 2 1 1 1 1 1 1 8 5 5 1 1 0 8 7 5 6 8 , , , , , , , , , , , , 2 5 0 0 8 1 9 2 6 1 9 5 9 6 3 0 3 6 8 3 0 2 8 8 1 7 7 7 7 0 7 0 9 7 4 1 9 8 8 8 8 8 9 8 7 9 8 8 , , , , , , , , , , , , 1 6 8 8 0 4 4 7 2 9 7 8 6 1 1 4 4 8 0 8 5 4 5 8 8 1 3 8 8 5 4 7 4 0 2 7 9 4 3 3 1 1 , , , , , , 6 1 7 9 4 4 7 4 6 5 2 3 7 2 3 0 9 4 6 5 8 5 6 6 1 4 5 3 4 4 8 1 1 0 2 1 6 6 6 1 , , , , 1 4 8 1 3 2 5 1 1 8 3 0 3 2 5 5 9 7 6 3 1 5 3 4 3 7 7 4 7 1 5 5 6 1 1 1 1 1 8 8 9 9 3 3 9 1 2 1 2 0 , , , , , , , , , , , , 0 2 4 8 8 2 1 5 8 7 3 0 6 0 7 2 1 3 3 8 9 0 0 0 7 9 9 4 5 4 0 7 7 7 6 6 8 5 5 5 6 1 1 1 1 , , , , , , , , , 9 9 2 2 4 5 2 5 5 8 9 9 1 8 0 1 3 1 7 0 5 6 0 3 5 5 3 8 9 9 7 2 5 1 4 9 4 2 2 2 2 2 3 1 2 1 1 1 5 9 0 6 0 3 9 4 8 5 8 0 8 6 9 2 0 3 2 2 7 8 8 5 5 4 4 4 4 4 4 3 6 7 5 3 , , , , , , , , , , , , 7 2 5 6 1 9 8 8 6 0 5 7 7 4 0 9 1 0 3 6 1 8 7 6 1 8 8 9 7 0 3 2 2 7 8 0 ,3 2 1 1 1 1 1 1 5 6 2 3 4 8 7 6 3 7 4 9 5 6 7 2 1 , , 1 3 4 6 3 2 8 1 1 5 5 4 8 9 1 8 6 2 7 0 6 7 4 4 5 7 2 3 5 4 3 2 2 3 3 3 3 3 2 3 3 3 3 7 9 0 5 4 0 4 9 2 2 1 3 8 3 8 1 6 2 0 9 1 0 7 3 4 7 9 6 4 4 8 5 5 5 6 5 , , , , , , , , , , , , 0 4 3 3 1 0 7 7 4 3 3 7 2 5 8 8 7 4 8 1 0 4 3 2 9 1 9 6 9 8 0 2 9 0 6 4 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 4 3 5 4 2 4 3 4 5 5 4 1 1 3 3 5 4 4 8 3 6 3 3 8 8 8 7 9 4 6 6 6 3 6 4 6 2 2 2 2 2 2 2 2 2 2 3 3 5 8 7 6 7 8 9 7 3 0 0 2 5 9 8 2 3 0 1 6 8 3 1 4 5 4 4 3 4 4 3 4 3 3 3 3 6 8 6 9 9 3 3 9 5 6 7 3 8 9 6 6 8 0 5 4 4 2 3 3 2 2 4 2 3 4 3 3 3 5 5 5 8 0 4 4 6 3 6 6 0 9 0 1 9 9 8 4 4 7 0 0 8 7 1 5 Budget outlays Com. Gen- Period Total t f i N e d o n e n a - s - a e l a I f n fa t i l r . s s S e p r a e a r - c c e h A c tu g u r r l- e i- N ur a a t- l t m C r a a o e n n r m d s c p - e . h d m l a o e o u n u v p d n e s , . - - E p m d t a o i u n a w o d n c n e a - r - H w f a e a n a e r d l l e - t h e V ra e n t- s In e t s e t r - g G e o r e v a n t l - . s r e n h i e r n u v a a g e e r l - - t I t g i r n o a o a t n c v r n s - a t s . - - 4 ing Fis 1 1 1 1 c 9 9 9 9 a 7 7 7 7 l 2 3 4 5 y 5 5 e ar: 2 2 2 3 4 3 7 0 6 1 4 4 , , , , 5 8 6 4 2 7 6 4 6 6 0 5 7 7 8 8 8 6 7 0 , , , , 3 0 7 5 3 2 2 7 6 7 9 3 4 3 3 3 , , , , 1 1 7 £ 0 8 8 3 2 6 3 3 3 3 , , , , 3 4 1 2 1 7 2 7 1 7 2 2 4 7 6 2 , , , , 0 0 0 7 6 5 3 2 1 1 9 9 3 3 , , 7 1 6 5 5 2 0 5 9 8 9 6 1 1 1 1 1 2 3 3 , , . , 1 5 5 4 9 2 2 0 7 1 0 0 4 4 5 5 , , , , 1 2 6 4 1 6 6 5 6 2 7 0 1 1 1 1 0 1 0 0 , , , , 1 5 8 8 9 3 1 2 8 7 9 1 1 1 9 8 2 0 1 1 6 8 , , , , 2 5 3 2 3 3 5 6 0 6 3 3 1 1 1 1 2 3 0 3 , , , , 2 7 0 6 8 4 0 1 5 7 4 2 2 2 2 2 2 0 7 9 , , , , 7 5 7 1 8 8 5 2 5 4 4 2 4 6 6 5 , , , , 8 6 8 7 8 1 0 7 9 9 0 4 6 6 6 , , , 1 1 6 4 7 3 7 4 6 - - - -1 7 8 9 0 , , , , 8 3 9 7 5 7 6 1 8 8 3 7 Ha 1 1 lf 9 9 7 7 y 3 2 e — — ar J J J J : u u a a n n l l y y . . - - - - J J D D u u e e n n c c e e . . . . . . 1 1 1 •• 2 2 3 1 7 0 0 18 , , , 3 9 3 ,5 1 4 6 7 9 0 0 8 r 4 4 3 3 2 0 7 5 , , , , 3 5 6 2 3 2 8 7 1 9 3 7 r1 2 1 1 , , , , 6 0 6 5 3 3 1 4 9 7 4 2 1 1 1 1 , , , , 5 6 6 6 0 3 7 4 1 5 6 5 4 3 1 1 , , , , 6 4 4 0 1 3 7 6 6 5 2 2 1, r 8 3 2 7 0 3 2 6 7 0 7 3 ' ' 6 5 6 7 , , , , 1 1 3 3 9 6 8 2 9 7 7 0 2 2 3 1 , , , , 0 2 6 5 3 1 3 2 5 5 7 5 ' 4 5 5 5 , , , , 6 8 1 7 8 3 4 7 8 3 3 2 ' 4 4 4 4 8 3 8 3 , , , , 0 9 4 2 1 7 0 1 8 8 5 2 6 5 5 6 , , . , 2 5 7 7 1 6 4 4 8 4 0 4 r r 1 1 1 0 0 2 , , , 6 5 1 1 3 8 9 4 1 ' ' 2 2 2 3 , , , , 4 7 0 8 4 9 8 6 9 7 8 9 ' 4 2 3 , , , 0 6 0 1 1 3 9 7 2 - - - - 4 4 4 4 , , , , 3 0 0 7 3 3 3 5 9 6 9 3 Mo 1 n 9 t 7 h 2 : — Dec.'. . . . 19,648 6,063 220 284 -146 -40 828 414 960 7,709 989 1,810 415 62,617 -2,474 1973—J J J O A M A N D S F M a u u e e p c u e o n a a l p n b t c r v g y y r t e r... . 2 2 2 2 2 2 2 2 2 2 2 1 2 3 0 0 2 2 0 3 2 0 0 9 , , , , , , , , , , , , 1 2 0 8 6 3 7 0 6 1 8 5 3 2 9 0 9 0 3 1 5 3 0 8 9 7 2 7 9 6 6 4 7 0 6 6 4 6 6 6 8 6 6 6 6 6 6 6 , , , , , , , , , , , , 2 8 6 0 4 4 0 0 6 9 7 9 6 7 0 0 1 1 7 3 9 6 7 0 5 8 1 5 7 7 9 3 5 3 2 0 4 2 2 2 3 3 2 2 2 3 1 8 3 8 8 0 8 1 0 2 7 2 3 6 7 2 2 9 5 7 6 8 3 0 6 2 2 2 2 2 2 2 2 3 3 2 2 4 7 6 4 7 6 0 0 5 4 2 4 1 1 5 8 8 2 1 1 5 6 1 6 2 - - - , 1 2 1 - - 0 4 9 4 3 5 7 3 7 2 5 2 1 3 6 4 0 9 8 8 5 7 6 5 1 1 8 0 3 4 2 -1 - , 1 0 9 4 4 4 2 2 3 5 3 1 3 5 4 9 1 2 2 7 2 3 1 1 0 3 2 8 6 4 2 8 3 4 0 0 2 1 1 1 1 1 1 , , , , , , , 1 2 0 0 4 5 0 9 7 9 9 5 0 6 6 3 9 4 7 5 1 9 0 6 4 0 4 4 0 6 2 7 2 3 7 7 -1 9 5 4 2 3 7 3 2 7 3 4 1 6 4 8 0 6 1 1 7 3 7 8 1 1 3 3 9 8 2 6 9 6 0 1 1 , , 3 0 9 9 9 8 6 7 7 6 7 3 6 5 0 1 8 5 0 7 6 8 6 6 5 5 9 8 4 4 7 1 6 7 8 8 8 8 8 8 8 7 7 8 7 , , , , , , , , , , , , 9 0 5 3 0 9 3 2 1 7 1 5 5 0 7 3 3 4 2 0 3 9 3 6 8 7 3 4 5 0 4 2 4 0 2 5 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , 0 0 1 0 1 1 0 1 0 0 9 8 5 4 9 4 9 1 5 5 1 6 7 6 8 6 9 3 4 4 4 7 7 4 0 6 2 2 2 2 2 2 2 2 2 2 2 1 , , , , , , , , , , , , 1 4 1 1 1 0 1 1 0 3 0 7 0 6 3 5 6 2 8 0 0 9 9 7 1 9 5 9 5 0 4 4 2 2 7 7 4 4 4 4 4 4 4 6 4 3 5 5 9 3 0 7 6 4 5 6 6 6 7 8 8 8 9 9 6 3 2 6 3 2 4 6 2 1 1 1 , , , , - 4 5 4 4 1 - 9 9 9 1 3 2 5 1 4 5 3 4 9 9 3 6 -2 - - - - - - - - - - - , 8 7 8 8 3 3 3 8 3 6 6 2 1 1 4 9 5 2 2 7 5 1 7 9 6 7 9 7 0 4 9 7 0 6 0 7 1 Old-age, disability, and hospital insurance (including premiums for 5 Estimates presented in the Jan. 1975 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, Federal and Railroad Retirement accounts. pay increase (excluding Department of Defense), and acceleration of energy 2 Supplementary medical insurance premiums (including premiums research and development, totaling $300 million for fiscal 1974, and $1,561 for disabled effective July 1, 1973, as provided for in Public Law 92-603), million for fiscal 1975, are not included. and Federal employee retirement contributions. 6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments 3 Deposits of earnings by Federal Reserve Banks and other miscellane- of $2,600 million for fiscal 1972. ous 4 r C e o c n ei s p is ts ts . of Government contributions for employee retirement and Note.—Half years may not add to fiscal year totals due to revisions in of interest received by trust funds. series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES • FEBRUARY 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l a s i s l c Marketable Con- Nonmarketable Special debt 1 Total Total Bills C c e a r t t e if s i - Notes Bonds 2 b v i o e b n r le t d - s Total 3 F is o su re e i s g n 4 b S o in a n g v d s - s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 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 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 88.2 26.0 60.8 107.1 1974—Jan.. 468.2 360.1 270.1 107.8 124.6 37.7 2.3 87.7 25.3 61.0 106.2 1 Includes non-interest-bearing debt (of which $618 million on Jan. 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 31, 1974, was not subject to statutory debt limitation). Treasury foreign series and foreign currency series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, and Rural Electrification Administration bonds; before 1954, NOTE.—Based on Daily Statement of U.S. Treasury. See also second Armed Forces leave bonds; before 1956, tax and savings notes; and paragraph in NOTE to table below. before Oct. 1965, Series A investment bonds. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors 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 s M b a a v u n i t n u k g a s s l p I c a n a o n s n m u c 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 d a t t s e l . Savi I n n g d s i v idu O a t ls h er n F a i o t n a i r t o n e e n d i r g a - n l 1 t 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 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 '24.9 51.9 23.9 14.3 '21.9 1969—Dec 368.2 89.0 57.2 222.0 56.8 2.9 7.1 '10.4 '27.2 51.8 29.6 11.2 25.0 1970—Dec 389.2 97.1 62.1 229.9 62.7 2.8 7.0 '7.3 '27.8 52.1 29.8 20.6 '19.9 1971—Dec 424. 1 106.0 70.2 247.9 65.3 2.7 6.6 '11.4 '25.4 54.4 19.6 46.9 '15.6 1972—Dec 449.3 116.9 69.9 262.5 r67.7 2.6 6.0 '9.8 '28.9 57.7 17.0 55.3 '17.6 1973—Jan 450.1 116.2 72.0 261.8 r66.4 2.6 6.1 '10.3 '30.0 58.0 '17.0 54.2 '17.4 Feb 454.8 117.1 72.6 265.1 r62.8 2.6 5.8 '10.9 '29.4 58.3 '16.8 61.1 '17.4 Mar 458.6 117.9 74.3 266.4 '62.0 2.5 5.9 '11.2 '29.4 58.6 '16.8 63.1 '17.0 Apr 457.1 117.9 75.5 263.7 r60.5 2.5 5.7 '10.0 '29.2 58.9 '16.6 61.7 '18.7 May 457.3 120.1 74.1 263. 1 '58.9 2.4 5.7 '10.8 '28.6 59.2 '16.5 61.1 '19.9 June 458.1 123.4 75.0 259.7 '58.8 2.4 5.7 '9.8 '28.8 59.5 16.4 60.2 '18. 1 July 459.0 125.0 77.1 256.9 '56.5 2.2 5.8 '10.3 '28.4 59.7 '17.0 59.7 '17.3 Aug 461.8 128.7 76.1 257.1 '55.1 2.1 5.7 '11.5 '27.7 59.8 '17.2 59.2 '18.8 Sept 461.4 127.8 76.2 257.4 '55.4 2.0 5.7 '9.2 '29.0 59.8 '17.3 58.5 '20.4 Oct 462.5 127.4 78.5 256.5 '56.3 2.0 5.6 '10.2 '28.5 60.0 '17.0 57.5 '19.4 Nov 464.0 127.1 77.1 259.8 58.5 2.0 5.6 11.1 28.9 60.3 16.9 56.2 20.4 Dec 446699..99 112299..66 7788..55 226611..77 6600..33 1100..99 2299..22 1166..99 2200..88 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

FEBRUARY 1974 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Type of holder and date Total years years years Total Bills Other All holders: 1970—Dec. 31 247,713 123,423 87,923 35,500 82,318 22,554 8,556 1971—Dec. 31 262,038 119,141 97,505 21,636 93,648 29,321 9,530 1972—Dec. 31 269,509 130,422 103,870 26,552 88,564 29,143 15,301 1973—Nov. 30 270,234 139,433 107,749 31,684 83,817 25,136 15,679 Dec. 31 270,224 141,571 107,786 33,785 81,715 25,134 15,659 U.S. Govt, agencies and trust funds: 1970—Dec. 31 17,092 3,005 708 2,297 6,075 3,877 1,748 1971—Dec. 31 18,444 1,380 605 775 7,614 4,676 2,319 1972—Dec. 31 19,360 1,609 674 935 6,418 5,487 4,317 1973—Nov. 30 23,984 5,161 3,570 1,591 7,789 4,405 5,008 Dec. 31 20,962 2,220 631 1,589 7,714 4,389 5,019 Federal Reserve Banks: 1970—Dec. 31 62,142 36,338 25,965 10,373 19,089 6,046 229 1971—Dec. 31 70,218 36,032 31,033 4,999 25,299 7,702 584 1972—Dec. 31 69,906 37,750 20,745 8,005 24,497 6,109 1,414 1973—Nov. 30 77,129 44,709 35,471 9,239 23,109 7,543 1,584 Dec. 31 78,516 46,189 36,928 9,261 23,062 7,504 1,577 Held by private investors: 1970—Dec. 31 168,479 84,080 61,250 22,830 57,154 12,631 6,579 1971—Dec. 31 173,376 81,729 65,867 15,862 60,735 16,943 6,627 1972—Dec. 31... 180,243 91,063 73,451 17,612 57,649 17,547 9,570 1973—Nov. 30 169,121 89,563 68,708 20,854 52,919 13,188 9,087 Dec. 31 170,746 93,162 70,227 22,935 50,939 13,241 9,063 Commercial banks: 1970—Dec. 31 50,917 19,208 10,314 8,894 26,609 4,474 367 1971—Dec. 31 51,363 14,920 8,287 6,633 28,823 6,847 555 1972—Dec. 31 52,440 18,077 10,289 7,788 27,765 5,654 864 1973—Nov. 30 44,135 15,048 6,336 8,712 24,027 3,909 900 Dec. 31 45,737 17,499 7,901 9,598 22,878 4,022 1,065 Mutual savings banks: 1970—Dec. 31 2,745 525 171 354 1,168 339 329 1971—Dec. 31 2,742 416 235 181 1,221 499 281 1972—Dec. 31 2,609 590 309 281 1,152 469 274 1973—Nov. 30 1,968 526 231 295 777 220 308 Dec. 31 1,955 562 222 340 750 211 300 Insurance companies: 1970—Dec. 31 6,066 893 456 437 1 ,723 849 1,369 1971—Dec. 31 5,679 720 325 395 1,499 993 1,366 1972—Dec. 31 5,220 799 448 351 1,190 976 1,593 1973—Nov. 30 4,803 681 238 443 1,058 1,232 1,306 Dec. 31 4,956 779 312 467 1,073 1,278 1,301 Nonfinancial corporations: 1970—Dec. 31 3,057 1,547 1,194 353 1,260 242 2 1971—Dec. 31 6,021 4,191 3,280 911 1,492 301 16 1972—Dec. 31 4,948 3,604 1,198 2,406 1,198 121 25 1973—Nov. 30 5,637 3,623 1,850 1,773 1,622 292 72 Dec. 31 4,905 3,295 1,695 1,600 1,281 260 54 Savings and loan associations: 1970—Dec. 31 3,263 583 220 363 1,899 281 243 1971—Dec. 31 3,002 629 343 286 1,449 587 162 1972—Dec. 31 2,873 820 498 322 1,140 605 226 1973—Nov. 30 2,240 583 143 440 1,045 325 212 Dec. 31 2,103 576 121 455 1,011 320 151 State and local governments: 1970—Dec. 31 11,204 5,184 3,803 1,381 2,458 774 1,191 1971—Dec. 31 9,823 4,592 3,832 760 2,268 783 918 1972—Dec. 31 10,904 6,159 5,203 956 2,033 816 1,298 1973—Nov. 30 9,838 5,890 4,743 1,147 1,771 790 1,036 Dec. 31 9,829 5,845 4,483 1,362 1,870 778 1,003 All others: 1970—Dec. 31 91,227 56,140 45,092 11,048 22,037 5,672 3,078 1971—Dec. 31 94,746 56,261 49,565 6,696 23,983 6,933 3,329 1972—Dec. 31 101,249 61,014 55,506 5,508 23.171 8,906 5,290 1973—Nov. 30 100,500 63,212 55,167 8,044 22^ 619 6,420 5,253 Dec. 31 101,261 64,606 55,493 9,113 22,076 6,372 5,189 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 735 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) 5,607 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES • FEBRUARY 1974 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions ot 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 otheri dealers brokers banks 1 1972—Dec 3,184 2,640 361 118 65 757 352 1,215 860 472 1973—Jan 3,158 2,445 443 148 i 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 i 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 4,022 3,001 485 447 89 655 1,188 1,173 1,007 810 Dec 3,889 3,167 348 317 58 675 1,051 1,123 1,040 869 Week ending— 1973—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 1,036 854 19 4,321 3,528 374 327 94 772 1,108 1,252 1,191 1,224 26 3,032 2,463 285 241 44 527 687 913 906 716 1974—Jan. 2 3,208 2,528 315 315 50 552 589 981 1,087 520 9 3,141 2,564 322 215 39 620 706 963 852 735 16 3,521 2,889 341 244 46 671 914 1,000 936 540 23 3,323 2,745 330 212 37 615 865 996 846 813 30 4,160 3.694 273 143 50 865 955 1,361 979 638 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period ma t A i t e l u l s r i- W y i e t 1 a h r i n yy 1 eeaa -5 rr ss y 5 ea -1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e o i u e n v s r c t i . y - Period sou A r l c l es Y N C o e it r w y k w E h ls e e r - e C t o i r o p n o s r 1 a- ot A h l e l r 1972—Dec 4,973 4,903 73 -41 37 556 1972—De c 4,848 1,695 944 1,399 1973—Jan 4,744 4,959 -53 -259 97 281 1973—Ja n 4,520 1,346 794 932 1,449 Feb 3,394 3,365 -9 -1 39 202 Feb 3,415 1,063 455 490 1,408 Mar 2,702 3,130 -274 -143 -11 180 Mar 2,799 903 292 281 1,323 Apr 2,795 3,105 -159 -143 -9 274 Apr 3,032 935 513 311 1,273 May 2,626 2,596 -324 179 175 356 May 2,667 674 452 252 1,291 June 2,976 2,818 -165 91 232 744 June 3,769 1,242 690 431 1,406 July 1,901 2,062 -250 -43 131 511 July 2,826 725 544 510 1,047 Aug 1,788 1,977 -94 -107 12 273 Aug 2,318 829 327 386 777 Sept 3,201 2,958 316 -111 38 799 Sept 4,244 1,620 877 441 1,306 Oct 3,073 2,858 93 56 67 904 Oct 3,721 1,253 918 328 1,223 Nov 3,618 3,034 95 350 ! 139 1,185 Nov 4,469 1,809 900 570 1,190 Dec 4,441 3,697 223 396 124 1,400 Dec 5,468 2,322 1,147 671 1,329 Week ending— Week ending— 1973—Nov. 7 4,300 3,295 327 521 157 1,163 1973—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 Dec. 5 3,858 3,361 117 277 103 1.255 Dec. 5. 4,344 1,619 896 620 1,210 12. . . 4,660 4,021 168 381 90 1,203 12. 5,464 2,456 1,195 588 1,225 19... . 4,961 4,048 291 485 137 1,477 19. 5,790 2,618 1,202 693 1,279 26.., . 4,460 3,565 301 431 163 1,666 26. 5,936 2,492 1,119 823 1,502 NOTE.—The figures include all securities sold by dealers under repur- 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JANUARY 31, 1974 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds 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 0 2 2 M M a a y y 1 1 5 5 , , 1 1 9 9 7 7 5 5 6 5 % 6 1 , , 7 7 6 7 0 6 F M e a b y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 4 4 * i/ 4 8 2 2, , 8 4 4 6 8 6 M F F F e e e a b b b r . . . . 2 2 1 7 1 8 4 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 4 4 4 4 . . . . 4 4 4 4 , , , . 3 3 3 2 0 0 2 5 9 3 0 4 J J J J u u u u l l l l y y y y 2 1 1 5 1 5 8 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 4 4 4 4 1 1 1 1 , , , . 7 8 8 8 9 0 1 0 8 9 1 3 S O N A e u o c p t g v . t . . . 3 1 1 0 5 5 1 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 5 5 5 5 5 7 S U 7 Y A /g s 7 2 3 , , , 6 1 0 7 1 4 3 9 5 2 0 J N M F u e o a n b v y e . . 1 1 1 1 5 5 5 5 , , , , 1 1 1 1 9 9 9 9 7 8 7 7 4 0 5 8 - - 8 8 5 3 . . . . 4 3 3 4 % 7 y / 4 8 2 1 1 1 , , , , 5 2 4 2 0 7 8 1 4 1 4 2 Mar. 12, 1974. 1,790 July 30, 1974 1.804 Dec. 31, 1975 7 1,731 Nov. 15, 1980 3% 1,896 Mar. 14, 1974. 4.304 Aug. 1, 1974 1,803 Feb. 15, 1976 6% 3,739 Aug. 15, 1981 7 807 Mar. 21, 1974. 4.305 Aug. 27, 1974 1.805 Feb. 15, 1976 5% 4,945 Feb. 15, 1982 6% 2,702 Mar. 28, 1974. 4,327 Sept. 24, 1974 1,802 Apr. 1, 1976 27 Aug. 15, 1984 63/g 2,353 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 . . . 4 4 1 , , , 3 3 8 0 0 0 8 2 2 O N De o ct c v . - . 2 1 1 2 9 7 , , , 1 1 1 9 9 9 7 7 7 4 4 4 1 1 1 , , , 8 8 8 0 0 0 3 2 1 A M M u a a g y y . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 7 7 7 6 6 6 6 7 5 % 3 i 4 /i 4 2 2 , , , 1 6 8 9 9 0 7 4 2 N A M u o a g v y . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 8 8 8 6 5 7 -92. .4 6 3 % i y / 4 8 1 3 , , 2 6 9 1 9 5 6 0 2 Apr. 18, 1974. 4,304 Jan. 14, 1974 1,802 Aug. 15, 1976 6ft 3,883 Feb. 15, 1988-93.. 4 228 A A M M p p a a r r y y . . 2 1 7 5 2 9 , , , , 1 1 1 19 9 9 9 7 7 7 7 4 4 4 4 f . . . 4 4 3 1 . . , , 3 3 0 8 0 0 0 0 8 9 7 0 Tr F ea e s b u . ry 1 n 5, o t 1 es 9 74 7% 2,960 O F A N e p o c b t r v . . . . 1 1 5 5 1 1 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 7 6 7 6 8 U 6 V y A A 4 4 5 , , 3 1 2 6 1 5 3 1 5 F M A F e e u a b b g y . . . 1 1 1 1 5 5 5 5 , , , , 1 1 1 1 9 9 9 9 9 9 9 8 3 3 0 9 -94. .4 3 6 I 1 K % y /8 4 3 1 1 , , , 9 3 4 6 6 6 6 2 4 4 6 7 M M a a y y 1 9 6 , , 1 1 9 9 7 7 4 4 . . 1 1 , , 8 8 0 0 1 1 A M p a r y . 15 1 , , 1 1 9 9 7 7 4 4 1 IV V a i 4,33 3 4 4 A O u ct g . . 15 1 , , 1 1 9 9 7 7 7 7 7 I V V 4 i 4,91 1 8 7 F M e a b y . 1 1 5 5 , , 1 19 9 9 9 5 3 -98.. 7 3 6 8 9 3 2 9 M M a a y y 2 3 3 0 , , 1 1 9 9 7 7 4 4 . . 1 1. ,8 79 0 8 0 A Se u p g t . . 3 15 0 , , 1 1 9 9 7 7 4 4 5 6 % 1 2 0 , , 0 2 6 8 0 4 F A e p b r . . 15 1 , , 1 1 9 9 7 7 8 8 6 1 V % 4 8,38 1 9 5 Nov. 15, 1998 3Vi 3,102 June 4, 1974.. 1,801 Oct. 1, 1974 1*6 42 Oct. 1, 1978 H/i 2 J J u u n n e e 1 6 3 , , 1 1 9 9 7 7 4 4 . . 1 1 , , 8 8 0 0 1 1 N De o c v . . 3 1 1 5 , , 1 1 9 9 7 7 4 4 5 5 % V4 2 5 , , 1 4 0 42 2 N Au o g v . . 1 15 5 , , 1 1 9 9 7 7 9 8 6 6 V a 4 8 , , 5 2 5 0 9 7 Convertible bonds J J u u n n e e 2 2 0 1 , , 1 1 9 9 7 7 4 4 f . 2 1 , . 0 79 0 9 0 A F F e e p b b r . . . 1 15 5 1 , , , 1 1 1 9 9 9 7 7 7 5 5 5 5 1 5 % y V 4 i 4 1 , , 0 2 1 2 5 2 8 N N M o o a v v y . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 7 7 8 9 9 0 7 6 6 5 % /g 7 2 1 , , , 2 2 6 6 4 0 5 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 y4 2,273 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 ered 3 G o e b a n l l e i- r- R n e u v e e - HAAl G l U o o a . v S n t . s , State di s a s t t n a r d t i . c t Other2 Total c E a d ti u o - n b R r a o id n a d g d e s s i U ti t e i s l- 4 H in o g u s s - V a e a n t i e d s r ' - O p p o t u h s r e e - s r gations auth. 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 1 1 9 9 7 7 0 1 2 1 4 8 , , 9 1 6 6 2 4 1 1 1 5 , , 8 2 5 2 0 0 6 8 , , 0 6 8 8 2 1 1,0 1 0 31 0 1 6 0 2 3 4 5 , , 1 9 7 9 4 9 5 8 , , 5 7 9 1 5 4 1 8 0 , , 3 2 9 4 9 6 2 1 4 8 , , 4 1 9 1 5 0 5 5 , ,2 0 7 6 8 2 2 1 , , 6 5 4 3 2 2 3 5 , , 5 2 2 1 5 4 2,0 4 6 6 8 6 9 7 , , 2 5 9 2 3 6 197 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—Nov.. . 1,862 1,147 711 5 425 572 866 1,762 312 215 365 56 814 Dec.... 1,797 872 653 268 4 147 754 895 1,507 351 21 204 332 599 1973—Jan.... 1,974 1,149 822 3 602 454 919 1,806 369 215 418 117 689 Feb.... 1,500 768 731 1 47 561 r892 1,399 365 r66 406 10 551 A M p a r r — ... . 2 1 , , 4 8 5 1 1 7 1,2 8 2 6 7 6 r9 9 4 1 1 6 303 9 6 6 1 1 5 3 9 9 7 1 3 4 0 r9 9 2 2 6 4 2 1 , , 1 75 9 1 4 3 3 7 0 3 6 15 1 3 2 4 44 9 8 7 34 8 7 8 i 8 8 2 9 3 7 May... 1,920 819 1,093 8 291 931 r698 1,756 299 232 422 222' 580 June... 2,138 1,016 856 261 5 189 1,076 874 2,130 538 102 639 334 517 July... 2,003 1,455 542 6 516 349 1,138 1,982 392 231 360 3 996 Aug.... 1,528 951 575 2 452 477 600 1,475 263 29 331 290 563 Sept.... 1,675 698 682 '293 2 236 794 645 1,608 306 64 571 390 277 Oct.... 2,257 1,309 942 6 337 823 1,098 2,116 287 142 392 250 1,047 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 4 Water, sewer, and other utilities. by contract requiring the Housing Assistance Administration to make 5 Includes urban redevelopment loans. annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. NOTE.—Security Industries Assn. data; par amounts of long-term issues 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser based on date of sale unless otherwise indicated. 2nd payment to issuer, which occurs after date of sale. 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 • FEBRUARY 1974 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate PPPeeerrriiioooddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. ..22 aa GG gg UU ee oo nn .. vv SS cc .. tt yy .. 33 aa (( nn UU SS dd tt .. aa SS lloo tt .. ee cc )) 44 aa ll OOtthheerr 55 TToottaall 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 1964 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965, 40,108 9,348 2,731 11,148 889 15,992 13,720 5,57G 8,150 725 1,547 1966, 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967, 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968, 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969. 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1970. 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 1971. 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972 96,522 17,080 12,825 23,070 1,589 41,957 28,896 19,434 9,462 3,367 9,694 1972-—Nov 10,987 3,590 2,134 1,816 70 3,377 2,343 1,361 982 154 880 Dec 8,210 2,553 200 1,760 302 3,396 2,625 1,024 1,601 272 498 1973-—Jan 6,523 1,199 993 1,889 116 2,327 1,276 989 287 137 913 Feb 7,325 1,603 2,261 1,445 53 1,962 957 641 316 172 832 Mar 9,029 606 1,826 2,304 359 3,933 2,116 1,315 802 833 984 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 PPPeeerrriiioooddd Manufacturing C m om is m ce e l r la c n ia e l o a u n s d Transportation Public utility Communication a R nd e al f in es a t n a c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 196 4 222,,,888111999 222222888 999000222 222222000 999444444 38 222,,,111333999 666222000 666666999 111,,,555222000 333,,,333999111 444666666 196 5 444,,,777111222 777000444 111,,,111555333 222555111 999555333 60 222,,,333333222 666000444 888000888 111333999 333,,,777666222 555111444 196 6 555,,,888666111 111,,,222000888 111,,,111666666 222555777 111,,,888555666 116 333,,,111111777 555444999 111,,,888111444 111888999 111,,,777444777 111999333 196 7 999,,,888999444 111,,,111666444 111,,,999555000 111111777 111,,,888555999 466 444,,,222111777 777111888 111,,,777888666 111999333 222,,,222444777 111888666 196 8 555,,,666666888 111,,,333111111 111,,,777555999 111111666 111,,,666666555 1,579 444,,,444000777 888777333 111,,,777222444 444333 222,,,111555999 666666222 196 9 444,,,444444888 111,,,999000444 111,,,888888888 333,,,000222222 111,,,888999999 247 555,,,444000999 111,,,333222666 111,,,999666333 222222555 222,,,777333999 111,,,666777111 197 0 999,,,111999222 111,,,333222000 111,,,999666333 222,,,555444000 222,,,222111333 47 888,,,000111666 333,,,000000111 555,,,000555333 888333 333,,,888777888 111,,,666333888 197 1 999,,,444222666 222,,,111555222 222,,,222777222 222,,,333999000 111,,,999999888 420 777...666000555 444,,,111999555 444,,,222222777 111,,,555999222 666,,,666000111 222,,,222111222 197 2 444,,,888222111 111,,,888000999 222 ,,,...666444555 222,,,888888222 222,,,888666222 185 666,,,333999222 444,,,999666555 333,,,666999222 111,,,111222555 888,,,444888555 222,,,000999555 1972—Nov 333444666 777999 444222999 222777111 666111 8 333222222 444777222 666555777 111 555222888 222000222 Dec 444888666 111000333 333444333 111444999 222111444 25 444999111 333777000 333444 111,,,000555777 111000777 111777 1973 Jan 111111333 666333 888999 111000555 111222000 1 555222999 333777111 333000 333999555 555000999 Feb.... 111777888 333555 111111888 111111111 999666 4 333111999 222777777 555888 111111333777 222999000 444666111 Mar 777777222 111222555 111777777 333222777 333111777 6 111,,,000777666 111,,,333555111 555444888 666666888 111,,,444666222 111,,,333999777 Apr 777777222 222222 222333777 111333999 999111 1 111555000 333666999 222555888 777444333 222222888 333888777 111222 333000 111444333 222333666 8 333666111 444111000 333555555 111999 333555111 222333111 June 777000333 222555 111333333 888999 111888333 111,,,000999999 444999777 333000333 222999 333333777 111888111 July 333666444 111666999 111333999 111111222 222555000 666555111 222666999 222444444 666000 222222333 111555111 Aug 222333000 444999 111444999 111222999 888333 15 444111999 999000 333222000 555 111888222 111333666 Sept 222777000 777888 111444999 999666 111444000 2 333333444 222555222 222222888 111666 222444444 111000666 Oct 444666222 777222 555444 111444777 999888 333333777 666000888 666333333 444666 777333111 111999222 Nov 333444333 666888 555111 999111 222222666 4 555888444 444888999 222999666 444999999 666000555 111222333 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

FEBRUARY 1974 • SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 PPeerriioodd All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1968 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 1969 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 1970 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 1971 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1972 42,306 10,224 32,082 27,065 8,003 19,062 15,242 2,222 13,018 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 facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d t s e s Stocks & B o n n o d t s e s Stocks & B n on 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 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1 ,-995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 479 530 459 673 138 28 1,410 1,061 573 305 1,456 453 116 290 575 479 179 47 1,056 1,735 944 89 1,920 580 135 63 -174 377 127 -43 844 1,170 520 185 965 1,244 632 -2 119 327 327 7 1,136 1,276 842 562 1,049 673 165 450 108 247 414 -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) Year Month Sales i Redemp- Net Total 2 Cash Other Sales 1 Redemp- Net Total 2 Cash Other tions sales position 3 tions sales position 3 1961 2,951 1,160 1,791 22,789 980 21,809 1972—Dec.. . 449 619 -170 59,831 3,035 56,796 1962 2,699 1,123 1,576 21,271 1,315 19,956 1963 2,460 1,504 952 25,214 1,341 23,873 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 Feb... 327 530 -203 54,083 3,375 50,708 1964 3,404 1,875 1,528 29,116 1,329 27,787 Mar... 519 531 -12 53,377 3,774 49,603 1965 4,359 1,962 2,395 35,220 1.803 33,417 Apr... 300 452 -120 50,837 3,837 46,464 1966 4,671 2,005 2,665 34,829 2,971 31,858 May.. 285 446 -161 48,588 4,154 44,434 June.. 303 349 -46 48,127 4,164 43,963 1967 4,670 2,745 1,927 44,701 2,566 42,135 July. . 364 357 -7 50,933 4,594 46,339 1968 6,820 3,841 2,979 52,677 3,187 49,490 Aug. . 239 432 -193 49,553 4,567 44,986 1969 6,717 3,661 3,056 48,291 3,846 44,445 Sept... 330 395 -65 52,322 4,641 47,681 Oct.. . 305 559 -254 51,952 4,168 47,784 1970 4,624 2,987 1,637 47,618 3,649 43,969 Nov... 502 542 -40 45,814 4,126 41,688 1971 5,145 4,751 774 56,694 3,163 53,531 Dec... 349 392 -43 46,518 4,002 42,516 1972 4,892 6,563 -1,671 59,831 3,035 56,796 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 • FEBRUARY 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 i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r n b o d u f i t i s t e s - d co c a n a t l s p l i u o o i n t w m a - l p - Quarter P b t r e a o f x o f e i r s t e s c ta o In x m - e e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r n b o d u f i t i s t e s - d co c a n 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 68.0 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 196 8 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 196 9 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—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 I I 1 V I I . I . . 2 2 1 1 0 0 9 9 0 4 2 6 . . . . 9 9 5 0 4 4 5 5 9 9 1 0 4 8 6 7 . . . . 1 7 2 2 4 5 5 5 1 8 2 5 . . . . 1 5 3 4 1 7 77 0 . .. . 8 87 4 4 3 3 3 . . . . 9 9 5 2 2 2 2 2 0 0 0 0 6 7 3 1 . . . . 5 5 3 3 2 2 1 1 0 0 9 9 3 1 9 8 . . . . 1 2 5 6 3 3 3 3 6 3 4 3 . . . . 8 1 9 8 3 3 3 3 1 0 0 0 1 6 1 2 . . . . 8 3 7 1 4 6 5 5 . . . . 9 3 0 1 2 1 1 1 0 9 9 9 2 5 7 5 . . . . 8 8 4 7 1 1 1 1 3 4 2 3 . . . . 8 5 4 7 9 8 8 8 0 9 8 6 . . . . 1 7 3 6 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 PPeerriioodd TToottaall Durable du N r o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her n C i o c m at m ion u s - Other1 A T (S o . . R t A a . . ) l 1969 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1 1 9 97 7 2 3 2 1 8 0 8 0 . . 4 0 4 8 1 1 9 5 . . 3 6 9 4 1 1 8 5 . . 6 7 1 2 2 2 . . 4 7 5 6 1 1 . . 9 8 4 0 2 2 . . 4 4 1 6 1 1 . . 6 4 0 6 1 1 6 4 . . 2 4 5 8 2 2 . . 5 8 2 4 1 1 3 1 . . 0 8 3 9 2 2 0 1 . . 0 2 7 4 1971—III 20.14 3.40 3.91 .55 .42 .39 .37 3.35 .71 2.62 4.42 80.75 IV 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—1 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 Ill 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—1 21.50 3.92 3.88 .63 .46 .52 .32 3.45 ..5500 2.87 4.94 96.19 II 24.73 4.65 4.51 .71 .46 .72 .43 3.91 ..6688 3.27 5.40 97.76 I I l V l 2 2 2 8 5 . . 8 0 1 4 4 5 . .9 8 7 4 4 5 . . 7 4 8 5 . . 7 6 3 9 . . 5 4 4 8 . . 5 6 7 0 . . 4 4 1 4 4 4 . . 8 0 5 4 . . 7 8 7 9 3.19 9.37 5.24 1 1 0 0 4 0 . . 9 9 4 0 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

FEBRUARY 1974 • REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s 2 1- to 4-family houses4 com M m u er lt c i i f a a l m p il r y o p a e n r d t ies5 M t o y r p tg e a 6 g e EE pp nn eerr dd ii oo oo dd ff hh AA ee oo rr ll ll ss dd ll -- tt FF uu ii tt ii nn cc ii nn ii ss oo aa aa tt nn ll ii nn -- ss -- 11 a U c g i . e e S n s . - v o I i t a d n h n u d e d a i r - l s s hh A e A e oo rr ll ll ss dd ll -- tu i t n c i i s o a t n l i - s 1 OO hh ee oo tt rr hh ll ss dd ee 33 -- rr hh AA ee oo rr ll ll dd ss ll -- Total t F u in t in i s o a t n i n - s . 1 O h e o t r h ld s e - r Total tu F i t n i i n s o a t n i n - s . 1 O h e o t r h l s d e r - w u F V n r H i d A t A e t - e r - n - t C v io e o n n n a - - l 1964 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965 323.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 111999666777... 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 111999666888... 397.3 319.9 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 111999fffiii999 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 1970 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109,2 311.3 1971 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 1972 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 131.1 398.9 1971--III. . 485.6 383.5 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.7 153.5 125.8 27.7 117.5 335.7 IV. . 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 1972--I.... 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---II........ 558800..11 446633..33 4477..33 6699..55 3366..55 1100..77 2255..88 554433..66 335533..99 229966..33 5577..66 118899..77 115566..44 3333..44 132.5 411.1 IIII...... 660000..44 448800..55 4499..00 7711..00 3377..77 1111..00 2266..77 556622..77 336655..77 330066..99 5588..88 119977..00 116622..55 3344..55 133.6 429.1 IIIIII?? .. 661199..99 449944..99 5533..00 7711..99 3388..77 1111..44 2277..33 558811..22 337766..66 331155..00 6611..66 220044..55 116688..55 3366..00 1 Commercial banks (including nondeposit trust companies but not 4 For multifamily and total residential properties, see tables below. trust depts.), mutual savings banks, life insurance companies, and savings 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. and loan assns. 2 U.S. agencies include former Federal National Mortgage Assoc. and, 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone beginning fourth quarter 1968, new Government National Mortgage are shown in table below. Assoc. as well as Federal Housing Admin., Veterans Admin., Public Housing Admin., Farmers Home Admin. They also include U.S. sponsored NOTE.—Based on data from Federal Deposit Insurance Corp., Federal agencies—new FNMA, Federal land banks, GNMA (Pools), and the Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul- Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts ture and Commerce, FNMA, FHA, PHA, VA, GNMA, FHLMC, and small or separate data not readily available) included with "individuals Comptroller of the Currency. and others." Figures for first three quarters of each year are F.R. estimates. 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) Government- All residential Multifamily i underwritten CCoonn-- EE ppee nn rr dd ii oo oo dd ff Total F i i n c n i s a a t l i n - - h O ol t d h e e r r s Total F i i n c n i s a a t l i n - - h O ol t d h e e r r s End of period TToottaall Total F su H in r A e - d - an g V u te A a e r - d - * ttii vv oo ee nn nn aa -- ll tutions tutions 196 4 197.6 69.2 38.3 30.9 128.3 1964 231.1 195.4 35.7 33.6 25.1 8.5 1965 212.9 73.1 42.0 31.1 139.8 1965 -250.1 213.2 36.9 37.2 29.0 8.2 196 6 223.6 76.1 44.8 31.3 147.6 1966 264.0 223.7 40.3 40.3 31.5 8.8 1967. 236.1 79.9 47.4 32.5 156.1 1967 280.0 236.6 43.4 43.9 34.7 9.2 196 8 251.2 84.4 50.6 33.8 166.8 1968 298.6 250.8 47.8 47.3 37.7 9.7 196 9 266.8 90.2 54.5 35.7 176.6 1969 319.0 265.0 54.0 52.2 41.3 10.8 197 0 280.2 97.3 59.9 37.3 182.9 1970 338.2 277.1 61.1 58.0 45.8 12.2 197 1 307.8 105.2 65.7 39.5 202.6 1971 374.7 306.1 68.5 66.8 52.0 14.9 197 2 346.1 113.0 68.2 44.7 233.1 1972 422.5 347.9 74.6 76.4 59.1 17.3 1971—III. 299.7 102.9 64.4 38.5 196.8 1971—III 364.0 298.4 65.6 64.3 50.4 13.9 IV. 307.8 105.2 65.7 39.5 202.6 IV 374.7 306.1 68.5 66.8 52.0 14.9 1972—1... 314.1 107.5 66.8 40.7 206.6 1972—1 382.9 312.9 70.0 68.8 53.3 15.4 II. . 324.6 109.6 67.6 42.0 215.0 I I I I V ll 4 4 3 2 0 9 2 9 5 . . . 5 3 8 3 3 3 3 4 2 6 7 4 . . . 1 9 1 7 7 7 4 3 1 . . . 6 2 7 7 7 7 3 6 1 . . . 5 4 3 5 5 5 9 6 5 . . . 1 9 3 1 1 1 6 7 6 . . . 6 3 0 I I I V I . . 3 3 4 3 6 5 . . 1 8 1 1 1 1 3 1 . . 0 5 6 6 8 8 . . 2 4 4 4 4 3 . . 7 1 2 2 3 2 3 4 . . 1 3 1973—1... 353.9 113.7 67.9 45.8 204.2 1973—1 432.8 357.4 75.5 79.0 61.1 17.9 II.. 365.7 114.7 67.5 47.2 251.0 II 447.9 370.4 77.5 82.2 63.5 18.7 III? 337766..66 III*. . . 461.6 380.0 81.6 85.0 65.0 20.0 1 Includes outstanding amount of VA vendee accounts held by private i Structures of five or more units. investors under repurchase agreement. NOTE.—Based on data from same source as for "Mortgage Debt Out- NOTE.—For total debt outstanding, figures are FHLBB and F.R. itanding" table above. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT • FEBRUARY 1974 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings Residential Residential End of period Other Total non- Farm Total FHA- VA- Con- farm FHA- VA- Con- Total in- guar- ven- in- guar- vensured anteed tional sured anteed tional 49,675 32,387 7,702 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 82,515 52,004 8,310 3,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 •28,505 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 90,114 56,782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 99,314 62,782 8,495 3,203 51,084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 103,548 65,236 33,342 4,970 68,920 58,169 109,114 68,650 8,482 3,211 56,957 35,224 5,240 70,634 59,397 114,414 71,852 37,070 5,492 72,034 ••60,305 1 Includes loans held by nondeposit trust companies but not bank NOTE.—Second and fourth quarters, FDIC series for all commercial trust depts. and mutual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm PPPeeerrriiioooddd TToottaall Total in F s H ur A e - d a g n V u t A a ee r - d - Other i FFaarrmm TToottaall Total in F s H ur A e - d a g n V u t A a e r e - - d Other FFaarrmm 1945 997766 66,,663377 55,,886600 11,,339944 44,,446666 776666 196 4 1100,,443333 9,386 1,812 674 6,900 1,047 5555,,115522 5500,,884488 1111,,448844 6,403 3322,,996611 44,,330044 196 5 1111,,113377 9,988 1,738 553 7,697 1,149 6600,,001133 5555,,119900 1122,,006688 6,286 3366,,883366 44,,882233 196 6 1100,,221177 9,223 1,300 467 7,456 994 6644,,660099 5599,,336699 1122,,335511 6,201 4400,,881177 55,,224400 196 7 88,,447700 7,633 757 444 6,432 837 6677,,551166 6611,,994477 1122,,116611 6,122 4433,,666644 55,,556699 196 8 77,,992255 7,153 733 346 6,074 772 6699,,997733 6644,,117722 1111,,996611 5,954 4466,,225577 55,,880011 196 9 77,,553311 6,991 594 220 6,177 540 7722,,002277 6666,,225544 1111,,771155 5,701 4488,,883388 55,,777733 197 0 77,,118811 6,867 386 88 6,393 314 7744,,337755 6688,,772266 1111,,441199 5,394 5511,,991133 55,,664499 197 1 77,,557733 7,070 322 101 6,647 503 7755,,449966 6699,,889955 1100,,776677 5,004 5544,,112244 55,,660011 197 2 88,,669966 7,996 331 182 7,483 700 7766,,994488 7711,,227700 99,,996622 4,660 5566,,664488 55,,667788 1972—No v 778866 730 25 10 695 56 7755,,990044 7700,,226666 1100,,001177 4,681 5555,,556688 55,,663388 Dec.r 11,,889900 1,784 23 17 1,744 106 7766,,994488 7711,,227700 99,,996622 4,660 5566,,664488 55..667788 1973—Ja n 771111 649 16 20 613 62 7777,,448811 7711,,885566 99,,990011 4,630 5577,,332255 55,,662255 Feb 660033 542 27 24 491 61 7777,,551100 7711,,889922 99,,880066 4,613 5577,,447733 55,,661188 Mar 667700 573 37 24 512 97 7777,,558877 7711,,995533 99,,773355 4,594 5577,,662244 55,,663344 Apr 770022 624 20 22 582 78 7777,,225588 7711,,661111 99,,770088 4,572 5577,,333311 55,,664477 May 777744 694 22 21 651 80 7777,,440000 7711,,772211 99,,662277 4,549 5577,,554455 55..667799 June 11,,110011 1,009 24 27 958 92 7777,,991144 7722,,118877 99,,554444 4,524 5588,,111199 55,,772277 July 993333 849 26 19 804 84 7788,,224433 7722,,447744 99,,446644 4,496 5588,,551144 55,,776699 Aug 11,,003344 947 11 20 916 87 7788,,665577 7722,,883399 99,,338888 4,471 5588,,998800 55,,881188 Sept 994444 862 23 17 822 82 7799,,004400 7733,,118822 99,,333300 4,447 5599,,440055 55,,885588 Oct 997722 899 13 18 868 73 7799,,551166 7733,,661199 99,,227700 4,428 5599,,992211 55,,889977 Nov 11,,114466 1,051 25 15 1,011 95 7799,,554499 7733,,661199 99,,223333 4,428 6600,,661144 55,,993300 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

FEBRUARY 1974 • REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount o N f u l m oa b n e s r ( c m o ( i m d l o l m i l o la i n t r s t s e ) d o f ( o t f h a m o L d u o o o s l a u l a n a n n r t d s s ) ( C p i o n e r n r te a t r c t r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L e o r r - o a v a t c a i e n o l n - u t e ) C ( a p t p e i r o it n a c l e r i n z a a t t ) e - co D r v a e e t r b io a t ge 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) Ad- Repay- Period vances 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 i con- pur- Total 2 in- guar- venstruc- chase sured 3 anteed 3 tional tion 196 5 5,007 4,335 5,997 3,074 2,923 196 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—Dec.. 984 251 7,979 2,961 5,018 51,408 8,553 26,615 206,387 29,391 176,996 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 4 4 4 5 3 3 5 5 , , , , , , , , 9 9 9 4 1 7 0 7 7 8 7 7 9 5 3 1 1 9 7 7 0 9 8 0 6 9 8 9 8 5 8 8 3 8 5 0 1 7 0 8 1 7 1 3 4 2 6 1 2 2 2 3 3 3 3 1 , , , , , , , , 6 0 1 7 0 0 8 4 4 8 1 3 6 5 7 6 1 5 9 8 2 9 9 9 2 2 2 2 2 2 2 2 1 1 1 1 2 2 2 2 3 0 9 6 9 8 5 2 , , , , , , , , 2 2 4 0 2 5 4 8 5 1 6 0 5 0 9 0 9 3 6 0 0 0 0 1 2 3 3 3 3 3 3 3 9 0 0 0 0 0 0 0 , , , , , , , , 7 0 2 6 2 1 2 3 5 4 6 9 3 8 7 8 1 5 8 6 2 2 0 1 1 1 1 1 1 1 1 1 8 8 9 8 9 8 9 9 0 8 3 6 7 9 5 2 , , , , , , , , 7 5 0 2 7 2 2 4 8 0 6 1 3 0 2 2 1 9 4 8 8 4 0 0 J D J A N S O M u u e u e o c a p n l c g t v y y t e . . . . . . . . . , . 1 1 1 , , , 3 0 3 9 9 2 7 5 7 9 8 9 9 1 2 2 3 3 0 5 9 6 8 9 2 2 2 2 2 1 1 1 4 2 2 3 1 8 0 5 8 6 8 5 9 4 3 2 1 1 1 1 1 1 1 1 2 5 4 4 4 1 3 0 , , , , , , , , 3 1 2 7 8 1 1 5 6 4 9 9 4 6 5 1 5 7 8 9 5 6 6 0 4 4 4 4 4 4 4 3 , , , , , , , , 5 6 8 0 8 5 7 4 8 6 0 1 3 8 3 2 3 9 5 6 7 3 4 8 1 1 9 9 7 7 6 8 0 0 , , , , , , , , 4 9 1 7 7 7 1 5 2 2 7 6 9 8 9 6 8 9 3 4 4 2 7 4 2,788 532 1,548 230,425 30,328 200,097 2 2 , , 3 5 1 0 1 5 4 4 1 4 7 9 1 1 , , 3 3 6 3 6 6 2 2 3 3 2 1 , , 3 31 2 9 2 3 3 0 0 , , 2 2 9 7 5 4 2 20 0 2 1 , , 0 0 4 2 8 4 2 1 S S e e c c u u r r e e d d o lo r a u n n s, s e a c m ur o e r d t iz lo ed a ns q u m a a rt t e u r r l i y n , g h i a n v i 1 n g y ea m r a o tu r r l i e ti s e s s . of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. NOTE.—FHLBB data. 2 Includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT • FEBRUARY 1974 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans home loans Mortgage Mortgage Mortgage holdings transactions commitments (during Date of auction Mortgage Average Mortgage Average period) amounts yield amounts yield (short- (short- Total F su H in re A - d - a g n u t a e r e - d ch P a u s r e - s Sales d p M u er r a i i d o n e d g st O i a n n u g t d - Offered ce A p c te - d c m o t m e e r n m m ts i ) t - Offered ce A p c t - ed c m o te m e r n m m ts i ) t - 7,167 5,122 2,046 1,944 2,696 1,287 In millions of In In millions of In 10,945 7,676 3,269 4,120 6,630 3,539 dollars per cent dollars per cent 15,492 11,063 4,429 5,079 20 8,047 5,203 17,791 12,681 5,110 3,574 336 9,828 6,497 19,791 14,624 5,112 3,699 211 8,797 8,124 1973—Apr. 30.... 261.2 185.9 7.92 128.9 88.2 8.23 19,791 14,624 5,112 306 12 1,237 8,124 May 14.... 258.3 187.7 7.96 117.6 84.4 8.31 28.... 212.4 140.0 8.00 113.3 73.9 8.39 19,982 14,746 5,170 348 29 458 8,034 20,181 14,872 5,222 334 478 7,972 June 11. . . 184.5 142.2 8.04 110.1 74.1 8.44 20,571 15,201 5,259 522 933 8,139 25. . . 199.3 118.7 8.09 95.0 69.4 8.51 20,791 15,390 5,269 355 1,211 8,742 21,087 15,581 5,335 472 1,180 9,312 July 9.... 539.3 244.8 8.38 108.4 72.5 8.67 21,413 15,768 5,411 516 1,191 9,778 23.... 351.4 181.4 8.54 119.0 61.7 8.79 21,772 15,877 5,574 516 1,102 9,859 22,319 16,085 5,761 699 1,019 9,809 Aug. 6.... 458.5 201.9 8.71 154.3 77.4 8.98 22,831 16,293 5,937 633 724 9,602 20. .. 525.0 223.8 8.95 171.3 77.2 9.27 23,348 16,510 6,101 659 264 8,918 23,912 16,734 6,294 656 200 8,690 Sept. 4. . . 551.0 288.9 9.27 118.6 61.5 9.53 24,175 16,852 6,352 40 158 7,889 17... 138.1 107.9 9.37 48.6 46.8 9.68 Oct. 1. . . 32.5 24.1 9.11 9.1 7.1 9.43 NOTE.—FNMA data. Total holdings include conventional loans. Data 15. . . 24.8 16.6 8.97 18.6 16.2 9.10 prior to Sept. 1968 relate to secondary market portfolio of former FNMA. 29. . . 28.2 21.6 8.94 17.4 9.4 9.01 Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Mortgage commitments made during the period include some Nov. 12. . . 29.3 23.1 8.87 24.1 16.7 8.94 multifamily and nonprofit hospital loan commitments in addition to 1- to 26. . . 24.9 20.9 8.81 31.0 22.1 8.90 4-family loan commitments accepted in FNMA's free market auction system, and through the FNMA-GNMA Tandem Plan (Program 18). Dec. 17.... 38.6 36.2 8.78 51.4 32.2 8.82 1974—Jan. 14. . . 40.2 35.6 8.71 48.9 34.5 8.77 NOTE.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of GOVERNMENT NATIONAL MORTGAGE 12 years for 30-year loans, without special adjustment for FNMA commit- ASSOCIATION ACTIVITY ment fees and FNMA stock purchase and holding requirements. Since Oct. 18, 1971, the maturity on new short-term commitments has been 4 months. Mortgage amounts offered by bidders are total bids re- (In millions of dollars) ceived. Mortgage MMoorrttggaaggee Mortgage GNMA MORTGAGE-BACKED SECURITY PROGRAM holdings ttrraannssaaccttiioonnss commitments ((dduurriinngg EEEnnnddd ooofff ppeerriioodd)) (In millions of dollars) pppeeerrriiioooddd FFHHAA-- VVAA-- MMaaddee OOuutt TToottaall iinn-- gguuaarr-- Pur- dduurriinngg ssttaanndd-- Pass-through securities ssuurreedd aanntteeeedd chases Sales ppeerriioodd iinngg BBoonnddss PPeerriioodd ssoolldd Applications Securities 1967 3333333333333333333,,,,,,,,,,,,,,,,,,,333333333333333333344444444444444444448888888888888888888 222222,,,,,,777777555555666666 555555999999222222 888888666666000000 11111,,,,,000004444455555 111111,,,,,,111111777777111111 received issued 1968 4444444444444444444,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222220000000000000000000 333333,,,,,,555555666666999999 666666555555111111 111111,,,,,,000000888888999999 11 888886666677777 111111,,,,,,222222666666666666 1969 4444444444444444444,,,,,,,,,,,,,,,,,,,888888888888888888822222222222222222220000000000000000000 444444,,,,,,222222222222000000 666666000000000000 888888222222777777 666661111155555 111111,,,,,,111111333333111111 1970 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111188888888888888888884444444444444444444 444444,,,,,,666666333333444444 555555555555000000 666666222222111111 888889999977777 777777333333888888 1970 11111111111111111,,,,,,,,,,,,,,,,,111111111111111112222222222222222266666666666666666.................22222222222222222 444444444444444445555555555555555522222222222222222.................44444444444444444 111,,,333111555...000 1971 5555555555555555555,,,,,,,,,,,,,,,,,,,222222222222222222299999999999999999994444444444444444444 444444,,,,,,777777777777777777 555555111111777777 333333999999333333 111111,,,,,,444444999999444444 1971 44444444444444444,,,,,,,,,,,,,,,,,333333333333333337777777777777777733333333333333333.................66666666666666666 22222222222222222,,,,,,,,,,,,,,,,,777777777777777770000000000000000011111111111111111.................99999999999999999 333000000...000 1972 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111113333333333333333333 1972 33333333333333333,,,,,,,,,,,,,,,,,888888888888888885555555555555555544444444444444444.................55555555555555555 22222222222222222,,,,,,,,,,,,,,,,,666666666666666666666666666666666611111111111111111.................77777777777777777 1111111111111999999999999977777777777772222222222222-------------DDDDDDDDDDDDDeeeeeeeeeeeeeccccccccccccc....................................... 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111113333333333333333333 1972—Nov 222222222222222222222222222222222266666666666666666.................44444444444444444 111111111111111113333333333333333388888888888888888.................22222222222222222 Dec 444444444444444444444444444444444400000000000000000.................99999999999999999 222222222222222229999999999999999999999999999999999.................88888888888888888 1111111111111999999999999977777777777773333333333333-------------JJJJJJJJJJJJJaaaaaaaaaaaaannnnnnnnnnnnn....................................... 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111117777777777777777777 FFFFFFFFFFFFFeeeeeeeeeeeeebbbbbbbbbbbbb.......................... ............. 4444444444444444444,,,,,,,,,,,,,,,,,,,999999999999999999988888888888888888884444444444444444444 1973—Jan 555555555555555551111111111111111155555555555555555.................77777777777777777 333333333333333332222222222222222233333333333333333.................33333333333333333 MMMMMMMMMMMMMaaaaaaaaaaaaarrrrrrrrrrrrr....................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666663333333333333333333 Feb 111111111111111116666666666666666677777777777777777.................22222222222222222 222222222222222221111111111111111166666666666666666.................88888888888888888 AAAAAAAAAAAAAppppppppppppprrrrrrrrrrrrr.......................... ............. 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444433333333333333333339999999999999999999 Mar 333333333333333333333333333333333399999999999999999.................44444444444444444 111111111111111113333333333333333399999999999999999.................99999999999999999 MMMMMMMMMMMMMaaaaaaaaaaaaayyyyyyyyyyyyy............. ............. 3333333333333333333,,,,,,,,,,,,,,,,,,,999999999999999999988888888888888888880000000000000000000 Apr 444444444444444446666666666666666677777777777777777.................88888888888888888 111111111111111118888888888888888822222222222222222.................11111111111111111 JJJJJJJJJJJJJuuuuuuuuuuuuunnnnnnnnnnnnneeeeeeeeeeeee.......................... 3333333333333333333,,,,,,,,,,,,,,,,,,,999999999999999999900000000000000000008888888888888888888 May 555555555555555556666666666666666633333333333333333.................33333333333333333 333333333333333333333333333333333388888888888888888.................88888888888888888 JJJJJJJJJJJJJuuuuuuuuuuuuulllllllllllllyyyyyyyyyyyyy....................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,111111111111111111155555555555555555556666666666666666666 June 222222222222222224444444444444444433333333333333333.................11111111111111111 333333333333333331111111111111111155555555555555555.................33333333333333333 AAAAAAAAAAAAAuuuuuuuuuuuuuggggggggggggg.......................... ............. 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444455555555555555555555555555555555555555 July 222222222222222221111111111111111155555555555555555.................77777777777777777 333333333333333338888888888888888844444444444444444.................77777777777777777 SSSSSSSSSSSSSeeeeeeeeeeeeepppppppppppppttttttttttttt....................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,444444444444444444422222222222222222229999999999999999999 Aug 111111111111111117777777777777777744444444444444444.................00000000000000000 111111111111111119999999999999999911111111111111111.................33333333333333333 OOOOOOOOOOOOOcccccccccccccttttttttttttt.................................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333338888888888888888888 Sept 555555555555555553333333333333333333333333333333333.................88888888888888888 333333333333333338888888888888888800000000000000000.................00000000000000000 NNNNNNNNNNNNNooooooooooooovvvvvvvvvvvvv....................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,111111111111111111177777777777777777772222222222222222222 Oct 888888888888888882222222222222222255555555555555555.................77777777777777777 222222222222222224444444444444444400000000000000000.................88888888888888888 DDDDDDDDDDDDDeeeeeeeeeeeeeccccccccccccc....................................... 4444444444444444444,,,,,,,,,,,,,,,,,,,000000000000000000022222222222222222229999999999999999999 Nov 999999999999999992222222222222222233333333333333333.................33333333333333333 222222222222222221111111111111111100000000000000000.................44444444444444444 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

FEBRUARY 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 Yield Mortgages Mortgages Period (effective rate) series on FHA- PPPeeerrriiioooddd PPrroopp-insured PPrroo-- eerrttyy New Existing New l h n o o e a m w ns e - TToottaall h N o e m w e s h is o E t m i x n - e g s jjeeccttss 11 mm pprr ii ee mm oo nn vv -- tt ee ss -- 22 TToottaall33 h N om ew e s h is o E t m i x n - e g s homes homes homes 1965. 8,689 1,705 5,760 591 634 2,652 876 1,776 1968 6.97 7.03 7.12 7.21 1966. 7,320 1,729 4,366 583 641 2,600 980 1,618 1969 7.81 7.82 7.99 8.29 1967. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1970 8.44 8.35 8.52 9.03 1968 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1971 7.74 7.67 7.75 7.70 1969, 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1972 7.60 7.52 7.64 7.52 1970. 11,982 2,667 5,447 3,251 617 3,440 1,311 2,129 1973—Jan 7.68 7.68 7.70 7.55 1971. 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 Feb 7.70 7.72 7.75 7.56 1972. 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 Mar 7.68 7.69 7.80 7.63 Apr 7.71 7.70 7.90 7.73 1972--Dec.. 964 190 245 444 85 715 220 495 May 7.71 7.77 7.95 7.79 June 7.79 7.79 8.05 7.89 1973--Jan... 834 254 324 197 59 681 218 463 July 7.87 7.84 8.40 8.19 Feb.. 710 162 235 262 52 592 187 405 Aug 7.94 8.01 8.85 Mar.. 969 195 268 440 65 596 185 411 Sept 8.17 8.26 8.95 9.18 Apr.. 620 151 223 172 74 621 187 434 Oct 8.31 8.50 8.80 8.97 May. 589 158 228 122 81 634 198 436 Nov 8.39 8.58 8.75 8.86 June. 650 153 229 207 61 646 182 464 Dec 88..4466 88..6600 July.. 559 143 250 100 66 666 204 462 Aug.. 537 100 195 167 75 569 193 376 1974—Jan 88..7788 Sept.. 485 90 177 134 84 565 184 381 Oct... 549 113 246 119 72 652 121 431 Nov.. 602 100 257 169 76 725 216 509 MOTE.—Annual data are averages of monthly figures. The Dec.23 407 56 168 116 66 473 138 335 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 90 days End of period or more 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 1,298 408 1,606 198 1970 3.64 2.67 .61 .36 .33 1971 3.93 2.82 .65 .46 .46 1972—Nov. 1,743 1,491 253 128 10 89 293 1972 4.65 3.42 .78 .45 .48 Dec. 1,789 1,503 286 143 87 93 198 1971—11 3.27 2.36 .53 .38 .38 1973—Jan.. 1,761 1,517 244 76 99 142 226 Ill 3.59 2.54 .62 .43 .41 Feb., 1,677 1,535 142 76 150 166 300 IV 3.93 2.82 .65 .46 .46 Mar. 1,718 1,589 128 119 68 141 295 Apr., 1,784 1,646 138 126 51 193 343 1972—1 3.16 2.21 .58 .37 .50 May, 1,906 1,695 211 147 17 187 344 II 3.27 2.38 .53 .36 .48 June, 2,029 1,716 313 154 21 159 316 Ill 3.82 2.74 .65 .43 .52 July. 2,158 1,714 444 140 139 278 IV 1.. . J \4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . . 7 7 9 8 . . 4 4 6 5 . .4 5 8 0 A Se u p g t . . 2 2 , , 4 3 2 0 3 7 1 1 . . 7 7 2 2 8 9 5 6 7 9 9 4 1 1 6 2 1 6 2 1 0 4 8 3 2 2 9 8 1 8 Oct.. 2,527 1,742 785 113 63 218 1973—1 3.63 2.52 .68 .43 Nov. 2,565 1,746 819 46 45 207 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 GNM A. 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 • FEBRUARY 1974 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Auto- consumer improve- Personal Single- Charge Service Total mobile goods ment loans Total payment accounts credit paper paper loans 1 loans 1940 8,338 5,514 2,071 1,827 371 1,245 2,824 800 1,471 553 1950 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 196 5 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 196 6 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 196 7 100,783 79,428 29,796 22,389 4.008 23,235 21,355 8,558 7,070 5,727 196 8 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 196 9 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 197 0 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 197 1 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 197 2 157,564 127,332 44.129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 197 3 180,486 147,437 51.130 47,530 7,352 41,425 33,049 13,241 9,829 9,979 1972—Dec. 157,564 127,332 44.129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973—Jan.. 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 Feb. 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 9,568 Mar. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 Apr. 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 9,747 May 164,277 133,531 47,518 41,096 6,541 38,376 30,746 12,817 8,319 9,610 June 167,083 136,018 48,549 41,853 6,688 38,928 31,065 12,990 8,555 9,520 July. 169,148 138,212 49,352 42,575 6,845 39,440 30,936 12,968 8,479 9,489 Aug. 171,978 140,810 50,232 43,505 7.009 40,064 31,168 13,111 8,605 9,452 Sept. 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 8,335 9,519 Oct.. 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 8,590 9,495 Nov. 176,969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 8,785 9,623 Dec. 180,486 147,437 51.130 47,530 7,352 41,425 33,049 13,241 9,829 9,979 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 Total Com- Finance Mis- Auto- Other Total mercial compa- Credit cellaneous Total mobile retail banks nies 1 unions lenders i dealers 2 outlets 1940 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 1950 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 196 5 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 196 6 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 196 7 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 196 8 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 196 9 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 197 0 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 197 1 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 197 2 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 197 3 147,437 129,305 69,495 37,243 19,609 2,958 18,132 299 17,833 1972—Dec. 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1973—Jan.. 127,368 111,690 60,148 32,177 16,847 2,518 15,678 263 15,415 Feb., 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 15,063 Mar. 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 Apr. 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 15,017 May, 133,531 118,165 63,707 33,859 17,832 2,767 15,366 284 15,082 June, 136,018 120,450 64,999 34,367 18,269 2,815 15,568 289 15,279 July. 138,212 122,479 66,065 35,020 18,517 2,877 15,733 293 15,440 Aug. 140,810 124,823 67,381 35,634 18,961 2,847 15,987 296 15,691 Sept. 142,093 126,040 67,918 35,993 19,207 2,922 16,053 297 15,756 Oct.. 143,610 127,307 68,627 36,365 19,339 2,976 16,303 300 16,003 Nov. 145,400 128,553 69,161 36,887 19,517 2,988 16,847 302 16,545 Dec., 147,437 129,305 69,495 37,243 19,609 2,958 18,132 299 17,833 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

FEBRUARY 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 Total mobile improve- sonal ment loans paper ment loans Pur- Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1940 1,452 339 276 232 165 440 2,278 1,253 159 193 673 1950 5,798 1,177 I,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 14,912 197 3 69,495 19,038 12,218 7,223 6,649 6,054 3,982 14,331 37,243 11,927 3,378 4,434 917 16,587 1972—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 II,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 Dec.. 69,495 19,038 12,218 7,223 6,649 6,054 3,982 1,4331 37,243 11,927 3,378 4,434 917 16,587 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 EEnndd ooff ppeerriioodd Total mobile sumer improve- sonal ppaappeerr goods ment loans TToottaall SSeerrvviiccee paper loans EEnndd ooff ppeerriioodd Com- Other ccrreeddiitt mer- finan- Retail Credit cial cial outlets cards 1 1940. 188 36 7 13 132 banks insti- 1950, 692 159 40 102 391 tutions 1955 1,959 560 130 313 956 I960. 4,566 1,460 297 775 2,034 1940 22,,882244 636 164 11,,447711 553 1965. 8,289 3,036 498 933 3,822 66,,776688 1,576 245 33,,229911 76 1,580 1966. 9,315 3,411 588 980 4,336 9,924 2,635 367 4,579 216 2,127 1967. 10,216 3,678 654 1,085 4,799 13,173 3,884 623 4,893 436 3,337 1968. 11,717 4,238 771 1,215 5,493 1969. 13,722 4,941 951 1,443 6,387 18,990 6,690 981 5,724 706 4,889 19,994 6,946 1,026 5,812 874 5,336 1970. 15,088 5,116 1,177 1,800 6,995 21,355 7,478 1,080 6,041 1,029 5,727 1971. 17,021 5,747 1,472 1,930 7,872 23,025 8,374 1,158 5,966 1,227 6,300 1972. 19,511 6,598 1,690 2,160 9,063 24,041 8,553 1,194 5,936 1,437 6,921 1973. 22,567 7,648 1,959 2,453 10,507 25,099 8,469 1,206 6,163 1,805 7,456 1972--Dec 19,511 6,598 1,690 2,160 9,063 1971 27,099 9,316 1,269 6,397 1,953 8,164 30,232 10,857 1,399 7,055 1,947 8,974 1973—Jan 19,365 6,560 1,680 2,138 8,987 1973. 33,049 11,753 1,488 7,783 2,046 9,979 Feb 19,617 6,627 1,698 2,162 9,130 Mar 20,052 6,752 1,732 2,209 9,359 1972--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 Dec 22,567 7,648 1,959 2,453 10,507 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 Oct 31,230 11,654 1,491 6,554 2,036 9,495 NOTE.—Other financial lenders consist of credit unions and miscel- Nov 31,569 11,669 1,492 6,761 2,024 9,623 laneous lenders. Miscellaneous lenders include savings and loan associa- Dec.... 33,049 11,753 1,488 7,783 2,046 9,979 tions and mutual savings banks. t 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 • FEBRUARY 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.1 N.S-tA. 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 11996666 888888888222222222,,,,,,,,,888888888333333333222222222 222222222777777777,,,,,,,,,111111111999999999222222222 222222222666666666,,,,,,,,,333333333222222222999999999 222222222,,,,,,,,,222222222222222222333333333 222222222777777777,,,,,,,,,000000000888888888888888888 J 967 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 1973 111111111666666666555555555,,,,,,,,,000000000888888888333333333 444444444666666666,,,,,,,,,444444444555555555333333333 666666666666666666,,,,,,,,,888888888555555555999999999 444444444,,,,,,,,,777777777222222222888888888 444444444777777777,,,,,,,,,000000000444444444333333333 111999777222———DDDeee ccc 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 DDDeeeccc 12,677 111111111444444444,,,,,,,,,111111111111111111777777777 3,315 222222222,,,,,,,,,888888888777777777222222222 5,254 666666666,,,,,,,,,888888888222222222666666666 429 333333333444444444888888888 3,679 444444444,,,,,,,,,000000000777777777111111111 Repayments 111999666666 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 1973 111111111444444444444444444,,,,,,,,,999999999777777777888888888 333333333999999999,,,,,,,,,444444444555555555222222222 555555555999999999,,,,,,,,,444444444000000000999999999 333333333,,,,,,,,,555555555777777777777777777 444444444222222222,,,,,,,,,555555555444444444000000000 111999777222———DDDeee ccc 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 222222222.........555555555444444444 3,390 333333333,,,,,,,,,000000000111111111777777777 MMMaaarrr 11,808 111111111222222222,,,,,,,,,222222222666666666555555555 3,225 333333333.........333333333777777777111111111 4,755 555555555,,,,,,,,,000000000111111111333333333 286 222222222888888888888888888 3,542 333333333,,,,,,,,,555555555999999999333333333 AAAppprrr 12,061 111111111222222222,,,,,,,,,000000000111111111444444444 3,218 333333333,,,,,,,,,222222222333333333333333333 4.963 444444444,,,,,,,,,888888888888888888888888888 294 222222222999999999222222222 3,586 333333333,,,,,,,,,666666666000000000111111111 MMMaaayyy 11,941 111111111222222222,,,,,,,,,222222222888888888333333333 3,261 333333333,,,,,,,,,333333333666666666999999999 4,917 555555555,,,,,,,,,000000000444444444333333333 290 222222222999999999888888888 3,473 333333333,,,,,,,,,555555555777777777333333333 JJJuuunnneee 12,034 111111111222222222,,,,,,,,,111111111222222222111111111 3,253 333333333,,,,,,,,,222222222888888888222222222 4,955 444444444,,,,,,,,,999999999222222222111111111 300 333333333000000000333333333 3,526 333333333,,,,,,,,,666666666111111111555555555 JJJuuulllyyy 12,544 111111111222222222,,,,,,,,,666666666111111111888888888 3,334 333333333,,,,,,,,,333333333777777777444444444 5,141 555555555,,,,,,,,,000000000333333333111111111 308 333333333111111111555555555 3,761 333333333,,,,,,,,,888888888999999999888888888 AAAuuuggg 12,399 111111111222222222,,,,,,,,,555555555000000000111111111 3,293 333333333.........333333333777777777222222222 5,168 555555555,,,,,,,,,111111111333333333555555555 298 333333333000000000777777777 3,640 333333333,,,,,,,,,666666666888888888777777777 SSSeeepppttt 12,332 111111111111111111,,,,,,,,,333333333444444444111111111 3,406 333333333,,,,,,,,,111111111555555555111111111 5,072 444444444,,,,,,,,,777777777000000000333333333 322 333333333000000000999999999 3,532 333333333,,,,,,,,,111111111777777777888888888 OOOcccttt 12,449 111111111222222222,,,,,,,,,999999999333333333777777777 3,427 333333333,,,,,,,,,666666666666666666111111111 5,149 555555555,,,,,,,,,222222222888888888111111111 308 333333333222222222444444444 3,565 333333333,,,,,,,,,666666666777777777111111111 NNNooovvv 12,549 111111111222222222,,,,,,,,,333333333000000000888888888 3,471 333333333,,,,,,,,,444444444111111111444444444 5,154 555555555,,,,,,,,,000000000222222222000000000 301 333333333000000000333333333 3,623 333333333,,,,,,,,,555555555777777777111111111 DDDeeeccc 12,267 111111111222222222,,,,,,,,,000000000888888888000000000 3,338 333333333,,,,,,,,,111111111111111111333333333 5,001 444444444,,,,,,,,,888888888888888888888888888 332 333333333111111111777777777 3,596 333333333,,,,,,,,,777777777666666666222222222 Net change in credit outstanding 2 111999666666 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 1973 222222222000000000,,,,,,,,,111111111000000000555555555 777777777,,,,,,,,,000000000000000000111111111 777777777,,,,,,,,,444444444555555555000000000 111111111,,,,,,,,,111111111555555555111111111 444444444,,,,,,,,,555555555000000000333333333 1972—De c 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 Dec 410 222222222,,,,,,,,,000000000333333333777777777 -23 ---------222222222444444444111111111 253 111111111,,,,,,,,,999999999333333333888888888 97 333333333111111111 83 333333333000000000999999999 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

FEBRUARY 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.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 11996666 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 1973 111111111666666666555555555,,,,,,,,,000000000888888888333333333 666666666999999999,,,,,,,,,777777777222222222666666666 444444444333333333,,,,,,,,,222222222222222222111111111 222222222333333333,,,,,,,,,444444444111111111444444444 222222222888888888,,,,,,,,,777777777222222222222222222 111999777222———DDDeee ccc 12,627 111111111333333333,,,,,,,,,666666666444444444333333333 5,313 555555555,,,,,,,,,000000000999999999666666666 3,355 333333333,,,,,,,,,777777777666666666666666666 1.791 111111111,,,,,,,,,666666666444444444222222222 2,168 333333333,,,,,,,,,111111111333333333999999999 111999777333———JJJaaa nnn 13,304 111111111111111111,,,,,,,,,999999999222222222333333333 5,762 555555555,,,,,,,,,222222222444444444666666666 3,517 333333333,,,,,,,,,000000000333333333333333333 1,706 111111111,,,,,,,,,555555555000000000999999999 2,319 222222222,,,,,,,,,111111111333333333555555555 FFFeeebbb 13,434 111111111111111111,,,,,,,,,222222222111111111444444444 5,664 444444444,,,,,,,,,888888888222222222666666666 3,557 222222222,,,,,,,,,999999999777777777222222222 1,964 111111111,,,,,,,,,777777777111111111111111111 2,249 111111111,,,,,,,,,777777777000000000555555555 MMMaaarrr 13,852 111111111333333333,,,,,,,,,666666666888888888111111111 5,853 555555555,,,,,,,,,888888888999999999000000000 3,654 333333333,,,,,,,,,555555555999999999888888888 2,131 222222222,,,,,,,,,000000000888888888333333333 2,214 222222222,,,,,,,,,111111111111111111000000000 AAAppprrr 13,465 111111111333333333,,,,,,,,,666666666666666666111111111 5,644 555555555,,,,,,,,,999999999777777777333333333 3,555 333333333,,,,,,,,,555555555777777777666666666 1.792 111111111,,,,,,,,,888888888333333333222222222 2,474 222222222,,,,,,,,,222222222888888888000000000 MMMaaayyy 13,932 111111111444444444,,,,,,,,,777777777999999999222222222 5,859 666666666,,,,,,,,,333333333555555555666666666 3,820 444444444,,,,,,,,,000000000222222222777777777 1,868 222222222,,,,,,,,,000000000666666666000000000 2,385 222222222,,,,,,,,,333333333444444444999999999 JJJuuunnneee 13,646 111111111444444444,,,,,,,,,666666666000000000888888888 5,684 666666666,,,,,,,,,222222222111111111999999999 3,584 333333333,,,,,,,,,888888888111111111777777777 1,978 222222222,,,,,,,,,222222222111111111111111111 2,400 222222222,,,,,,,,,333333333666666666111111111 JJJuuulllyyy 14,542 111111111444444444,,,,,,,,,888888888111111111222222222 5,976 666666666,,,,,,,,,222222222333333333222222222 3,824 333333333,,,,,,,,,999999999333333333111111111 2,110 222222222,,,,,,,,,222222222333333333333333333 2,632 222222222,,,,,,,,,444444444111111111666666666 AAAuuuggg 14,294 111111111555555555,,,,,,,,,000000000999999999999999999 6,195 666666666,,,,,,,,,555555555111111111888888888 3,685 333333333,,,,,,,,,888888888777777777777777777 1,943 222222222,,,,,,,,,111111111999999999444444444 2,471 222222222,,,,,,,,,555555555111111111000000000 SSSeeepppttt 13,691 111111111222222222,,,,,,,,,666666666222222222444444444 5,809 555555555,,,,,,,,,333333333777777777666666666 3,602 333333333,,,,,,,,,111111111888888888999999999 2,019 111111111,,,,,,,,,999999999111111111222222222 2,261 222222222,,,,,,,,,111111111444444444777777777 OOOcccttt 14,149 111111111444444444,,,,,,,,,444444444555555555444444444 6,060 666666666,,,,,,,,,111111111666666666999999999 3,623 333333333,,,,,,,,,777777777666666666555555555 1,951 111111111,,,,,,,,,999999999666666666888888888 2,515 222222222,,,,,,,,,555555555555555555222222222 NNNooovvv 14,275 111111111444444444,,,,,,,,,000000000999999999888888888 6,222 555555555,,,,,,,,,666666666999999999777777777 3,564 333333333,,,,,,,,,777777777222222222222222222 2,029 111111111,,,,,,,,,999999999222222222999999999 2,460 222222222,,,,,,,,,777777777555555555000000000 DDDeeeccc 12,677 111111111444444444,,,,,,,,,111111111111111111777777777 5,124 555555555,,,,,,,,,222222222222222222444444444 3,279 333333333,,,,,,,,,777777777111111111444444444 1,897 111111111,,,,,,,,,777777777777777777222222222 2,377 333333333,,,,,,,,,444444444000000000777777777 Repayments 111999666666 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 1973 111111111444444444444444444,,,,,,,,,999999999777777777888888888 666666666000000000,,,,,,,,,000000000111111111444444444 333333333888888888,,,,,,,,,000000000666666666666666666 222222222000000000,,,,,,,,,333333333555555555888888888 222222222666666666,,,,,,,,,555555555444444444000000000 111999777222———DDDeee ccc 10,964 111111111000000000,,,,,,,,,666666666333333333666666666 4,485 444444444,,,,,,,,,111111111999999999111111111 2,952 333333333,,,,,,,,,111111111000000000555555555 1,561 111111111,,,,,,,,,444444444999999999999999999 1,966 111111111,,,,,,,,,888888888444444444111111111 111999777333———JJJaaa nnn 11,355 111111111111111111,,,,,,,,,888888888888888888777777777 4,734 444444444,,,,,,,,,888888888888888888111111111 3,033 222222222,,,,,,,,,999999999444444444444444444 1,532 111111111,,,,,,,,,666666666555555555555555555 2,056 222222222,,,,,,,,,444444444000000000777777777 FFFeeebbb 11,437 111111111000000000,,,,,,,,,666666666222222222333333333 4,684 444444444,,,,,,,,,333333333999999999222222222 3,030 222222222,,,,,,,,,777777777111111111888888888 1,625 111111111,,,,,,,,,444444444555555555999999999 2,098 222222222,,,,,,,,,000000000555555555444444444 MMMaaarrr 11,808 111111111222222222,,,,,,,,,222222222666666666555555555 4,870 555555555,,,,,,,,,000000000888888888444444444 3,141 333333333,,,,,,,,,222222222777777777999999999 1,665 111111111,,,,,,,,,666666666444444444888888888 2,132 222222222,,,,,,,,,222222222555555555444444444 AAAppprrr 12,061 111111111222222222,,,,,,,,,000000000111111111444444444 4,919 444444444,,,,,,,,,999999999000000000222222222 3,251 333333333,,,,,,,,,222222222444444444888888888 1.693 111111111,,,,,,,,,666666666999999999444444444 2,198 222222222,,,,,,,,,111111111777777777000000000 MMMaaayyy 11,941 111111111222222222,,,,,,,,,222222222888888888333333333 4,976 555555555,,,,,,,,,111111111000000000888888888 3,100 333333333,,,,,,,,,222222222444444444666666666 1,612 111111111,,,,,,,,,666666666555555555111111111 2,253 222222222,,,,,,,,,222222222777777777888888888 JJJuuunnneee 12,034 111111111222222222,,,,,,,,,111111111222222222111111111 4,890 444444444,,,,,,,,,999999999222222222777777777 3,241 333333333,,,,,,,,,333333333000000000999999999 1.694 111111111,,,,,,,,,777777777222222222666666666 2,209 222222222,,,,,,,,,111111111555555555999999999 JJJuuulllyyy 12,544 111111111222222222,,,,,,,,,666666666111111111888888888 5,112 555555555,,,,,,,,,111111111666666666666666666 3,312 333333333,,,,,,,,,222222222777777777888888888 1,771 111111111,,,,,,,,,999999999222222222333333333 2,349 222222222,,,,,,,,,222222222555555555111111111 AAAuuuggg 12,399 111111111222222222,,,,,,,,,555555555000000000111111111 5,146 555555555,,,,,,,,,222222222000000000222222222 3,241 333333333,,,,,,,,,222222222666666666333333333 1,738 111111111,,,,,,,,,777777777888888888000000000 2,274 222222222,,,,,,,,,222222222555555555666666666 SSSeeepppttt 12,332 111111111111111111,,,,,,,,,333333333444444444111111111 5,167 444444444,,,,,,,,,888888888333333333999999999 3,144 222222222,,,,,,,,,888888888333333333000000000 1,757 111111111,,,,,,,,,555555555999999999111111111 2,264 222222222,,,,,,,,,000000000888888888111111111 OOOcccttt 12,449 111111111222222222,,,,,,,,,999999999333333333777777777 5,212 555555555,,,,,,,,,444444444666666666000000000 3,287 333333333,,,,,,,,,333333333999999999333333333 1,703 111111111,,,,,,,,,777777777888888888222222222 2,247 222222222,,,,,,,,,333333333000000000222222222 NNNooovvv 12,549 111111111222222222,,,,,,,,,333333333000000000888888888 5,345 555555555,,,,,,,,,111111111666666666333333333 3,143 333333333,,,,,,,,,222222222000000000000000000 1,814 111111111,,,,,,,,,777777777333333333999999999 2,247 222222222,,,,,,,,,222222222000000000666666666 DDDeeeccc 12,267 111111111222222222,,,,,,,,,000000000888888888000000000 5,088 444444444,,,,,,,,,888888888999999999000000000 3,151 333333333,,,,,,,,,333333333555555555888888888 1,766 111111111,,,,,,,,,777777777111111111000000000 2,262 222222222,,,,,,,,,111111111222222222222222222 Net change in credit outstanding 2 111999666666 5555,,,,333355552222 222222222,,,,,,,,,333333333555555555777777777 999999999444444444555555555 111111111,,,,,,,,,000000000222222222666666666 111111111,,,,,,,,,000000000222222222444444444 1967 3333,,,,111188883333 111111111,,,,,,,,,888888888333333333333333333 ---------222222222222222222000000000 999999999000000000111111111 666666666666666666999999999 1968 8888,,,,333311117777 444444444,,,,,,,,,777777777888888888444444444 111111111,,,,,,,,,444444444999999999888888888 111111111,,,,,,,,,555555555000000000111111111 555555555333333333444444444 1969 9999,,,,333366660000 444444444,,,,,,,,,444444444888888888555555555 111111111,,,,,,,,,777777777777777777222222222 222222222,,,,,,,,,000000000000000000555555555 111111111,,,,,,,,,000000000999999999888888888 1970 44444,,,,,999995555599999 222222222,,,,,,,,,999999999777777777777777777 ---------111111111666666666888888888 111111111,,,,,,,,,333333333666666666666666666 777777777888888888444444444 1971 99999,,,,,222223333311111 555555555,,,,,,,,,888888888444444444222222222 111111111,,,,,,,,,222222222000000000555555555 111111111,,,,,,,,,999999999333333333333333333 222222222555555555111111111 1972 1111166666,,,,,000003333377777 888888888,,,,,,,,,555555555444444444333333333 333333333,,,,,,,,,222222222000000000555555555 222222222,,,,,,,,,444444444999999999000000000 111111111,,,,,,,,,777777777999999999999999999 1973 2222200000,,,,,111110000055555 999999999,,,,,,,,,777777777111111111222222222 555555555,,,,,,,,,111111111555555555555555555 333333333,,,,,,,,,000000000555555555666666666 222222222,,,,,,,,,111111111888888888222222222 1972—De c 1,663 33333,,,,,000000000077777 828 999999999000000000555555555 403 666666666666666666111111111 230 111111111444444444333333333 202 111111111,,,,,,,,,222222222999999999888888888 1973—Ja n 1,949 3333366666 1,028 333333333666666666555555555 484 888888888999999999 174 ---------111111111444444444666666666 263 ---------222222222777777777222222222 Feb 1.997 555559999911111 980 444444444333333333444444444 527 222222222555555555444444444 339 222222222555555555222222222 151 ---------333333333444444444999999999 Mar 2,044 11111,,,,,444441111166666 983 888888888000000000666666666 513 333333333111111111999999999 466 444444444333333333555555555 82 ---------111111111444444444444444444 Apr 1,404 11111,,,,,666664444477777 725 111111111,,,,,,,,,000000000777777777111111111 304 333333333222222222888888888 99 111111111333333333888888888 276 111111111111111111000000000 May 1,991 22222,,,,,555550000099999 883 111111111,,,,,,,,,222222222444444444888888888 720 777777777888888888111111111 256 444444444000000000999999999 132 777777777111111111 June 1,612 22222,,,,,444448888877777 794 111111111,,,,,,,,,222222222999999999222222222 343 555555555000000000888888888 284 444444444888888888555555555 191 222222222000000000222222222 July 1.998 22222,,,,,111119999944444 864 111111111,,,,,,,,,000000000666666666666666666 512 666666666555555555333333333 339 333333333111111111000000000 283 111111111666666666555555555 Aug 1,895 22222,,,,,555559999988888 1,049 111111111,,,,,,,,,333333333111111111666666666 444 666666666111111111444444444 205 444444444111111111444444444 197 222222222555555555444444444 Sept 1,359 11111,,,,,222228888833333 642 555555555333333333777777777 458 333333333555555555999999999 262 333333333222222222111111111 -3 666666666666666666 Oct 1,700 11111,,,,,555551111177777 848 777777777000000000999999999 336 333333333777777777222222222 248 111111111888888888666666666 268 222222222555555555000000000 Nov 1,726 11111,,,,,777779999900000 877 555555555333333333444444444 421 555555555222222222222222222 215 111111111999999999000000000 213 555555555444444444444444444 Dec 410 22222,,,,,000003333377777 36 333333333333333333444444444 128 333333333555555555666666666 131 666666666222222222 115 111111111,,,,,,,,,222222222888888888555555555 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. • FEBRUARY 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1972 1973 pro- GGrroouuppiinngg por- aaggee pp tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct. r Nov. r Dec. 100.0 125.6 121.1 122.2 123.4 123.7 124.1 124.8 125.6 126.7 126.5 126.8 127.0 127.5 126.7 Products, total 62.21 123.4 119.1 120.7 121.5 121.7 122.0 122.9 123.7 124.2 123.7 124.3 124.3 125.2 124.1 48.95 121.3 116.8 118.6 119.3 119.6 120.0 120.8 121.3 122.1 121.4 122.4 122, .7 123.5 122.2 Consumer goods 28.53 131 .7 127.7 129.8 130.2 130.8 130.9 131.8 131.9 132.8 131.2 132.3 132,. 6 133.4 130.9 20.42 106.7 101.5 102.9 104.1 104.1 104.7 105.7 106.6 107.3 107.6 108.5 108,. 9 109.8 109.8 Intermediate products 13.26 131.1 127.7 128.4 129.5 129.4 129.3 130.5 132.0 132.5 132.1 131.0 130 .6 131.4 130.5 37.79 129.3 124.4 124.5 126.7 127.0 127.7 128.3 129.0 130.9 130.9 131.3 131. 1 131.7 131.0 Consumer goods 7.86 139.0 135.0 136.0 137.8 140.4 140.5 141.5 141.8 142.4 134.0 138.2 137, .3 139.0 134.7 2.84 136.8 142.9 138.6 141.7 144.1 141.7 142.6 142.6 141.7 121.1 129.8 131,. 4 135.1 122.2 Autos 1.87 125.4 133.9 130.2 131.5 130.8 128.1 129.8 132.6 134.0 103.9 118.4 122.. 5 124.8 106.2 Auto parts and allied goods .97 158.9 160.0 155.0 161.4 169.9 167.5 167.0 161.9 156.7 154.2 151.8 148,. 4 154.4 : 15 2. 8 Home goods 5.02 140.3 130.5 134.5 135.8 138.3 139.8 140.9 141.3 142.9 141.1 142.9 140 .9 141.2 141.8 Appliances, TV, and radios 1.41 144.8 133.3 140.7 137.8 143.0 149.7 148.0 147.2 147.8 146.3 149.4 143,. 4 140.4 142.1 Appliances and A/C .92 156.9 151.1 153.2 153.8 156.9 157.6 157.8 154.1 156.0 153.3 159.8 159 .3 154.7 157.6 .49 99.9 Carpeting and furniture 1.08 150.0 139.0 142.1 145.0 145.7 146.7 147.8 148.9 155.4 154.2 153.3 153 .9 152.7 152.8 Misc. home goods 2.53 133.6 125.3 127.5 130.9 132.7 131.4 134.0 134.7 134.7 132.9 134.8 134,. 1 136.7 137.2 Nondurable consumer goods 20.67 129.0 125.0 127.4 127.3 127.1 127.2 128.0 128.1 129.1 130.2 130.1 130 .8 131.2 129.5 Clothing 4.32 116.0 112.2 115.1 115.2 115.4 114.5 114.2 116.0 116.5 117.0 118.0 116,. 8 117.7 Consumer staples 16.34 132.4 128.4 130.7 130.5 130.3 130.6 131.7 131.4 132.5 133.6 133.2 134,. 5 134.8 132.7 Consumer foods and tobacco.... 8.37 122.2 119.1 121.1 121.5 120.9 121.0 120.9 119.6 121.3 121.9 122.2 123,. 3 125.5 125.3 Nonfood staples 7.98 143.1 138.1 140.9 140.0 140.1 140.7 143.1 143.7 144.1 145.8 144.8 146.. 2 144.5 140.6 Consumer chemical products.. 2.64 153.3 143.9 148.8 149.9 151.1 151.5 154.9 153.5 153.0 155.6 153.4 156.. 2 154.9 156.6 Consumer paper products 1.91 121.3 119.3 119.1 119.4 118.7 119.0 121.7 121.7 122.5 124.1 124.4 122,. 5 123.6 120.3 Consumer fuel and lighting... 3.43 147.5 144.1 147.1 144.0 143.8 144.4 145.6 148.2 149.2 150.4 149.7 151.. 9 148.4 139.3 Residential utilities 2.25 156.8 153.6 156.5 154.4 153.5 152.3 152.1 155.4 157.8 160.0 160.9 161,. 9 158.0 147.8 Equipment Business equipment 12.74 122.6 114.4 116.9 118.2 118.6 119.6 121.3 122.5 123.0 124.6 125.8 126.2 127.7 12" .3 Industrial equipment 6.77 120.1 111.5 113.0 114.5 115.6 117.4 119.1 119.8 120.5 122.5 124.1 124.. 5 125.5 125.4 Building and mining equip 1.45 120.4 112.3 113.0 115.1 116.0 118.1 118.8 119.1 119.6 123.0 123.7 124., 7 126.0 127.0 Manufacturing equipment 3.85 113.0 102.5 104.7 106.1 107.5 109.4 112.0 113.1 113.9 115.1 117.3 117., 3 118.0 118.6 Power equipment 1.47 138.5 134.1 134.6 135.5 137.1 137.6 138.2 138.3 138.5 141.0 142.3 143., 0 144.6 141.3 Commercial, transit, farm eq 5.97 125.5 117.6 121.4 122.4 121.9 122.2 123.7 125.4 125.8 127.0 127.7 128.. 1 130.3 129.5 Commercial equipment 3.30 135.0 126.5 128.8 129.9 130.6 131.3 131.6 134.1 135.9 137.0 138.2 140., 1 141.3 139.7 Transit equipment 2.00 109.8 101.7 110.0 111.8 110.2 107.5 109.8 109.7 109.0 108.4 109.6 109.. 8 111.4 111.5 Farm equipment .67 125.1 120.0 118.3 117.6 114.6 120.9 126.5 129.3 126.4 132.8 129.4 123.. 5 132.4 133.4 Defense and space equipment 7.68 80.2 80.1 79.8 80.6 80.1 80.0 79.7 80.1 81.1 79.7 79.8 80. .0 80.0 80.9 Military products 5.15 80.3 81.8 81.0 82.0 81.5 81.0 80.1 80.0 81.1 79.0 79 A 79. .3 78.6 79.8 Intermediate products 5.93 134.2 128.7 129.6 130.3 130.7 132.2 132.2 135.9 134.5 135.3 134.9 134., 3 135.4 134.9 7.34 128.6 126.9 127.4 128.9 128.3 127.0 129.2 128.9 132.7 129.6 128.1 127., 5 128.1 126.9 Materials 20.91 130.1 123.5 124.1 126.6 127.6 127.9 128.6 129.2 131.7 131.8 132.3 132. 2 133.6 133.8 Consumer durable parts 4.75 127.8 123.6 123.9 125.4 125.9 129.0 125.7 128.8 126.9 128.6 129.9 128. 2 129.0 122.5 Equipment parts 5.41 119.3 112.0 111.6 113.0 114.6 113.8 118.0 118.2 124.5 122.3 122.1 122. 1 125.9 127.3 Durable materials nec 10.75 136.5 129.2 130.6 134.2 134.9 134.7 135.3 134.9 137.6 138.0 138.7 139. 0 139.5 142.1 Nondurable goods materials 13.99 129.1 126.4 126.3 127.7 127.1 128.5 128.9 129.4 130.4 130.6 130.3 130. 1 130.2 128.9 Textile, paper, and chem. mat 8.58 139.8 136.0 136.0 136.5 136.3 138.8 139.4 140.2 142.2 142.4 141.9 141. 4 141.9 139.3 Nondurable materials n.e.c 5.41 112.2 111.4 110.9 113.9 112.7 112.2 112.3 112.3 112.1 111.7 112.0 112. 3 111.6 112.4 Fuel and power, industrial 2.89 123.9 119.5 120.6 122.7 122.6 122.1 122.9 125.3 126.9 126.3 128.3 126. 9 124.7 123.0 Supplementary groups 9.34 129.0 122.0 125.5 126.3 127.6 128.1 128.6 129.7 130.7 130.0 131.3 129. 8 130.3 130.7 Containers 1.82 139.9 135.0 137.1 138.8 145.2 139.1 138.0 141.4 135.1 140.5 139.8 141. 2 142.0 141 .0 Gross value of products in market structure i| (In billions of 1963 dollars) Products, total 437.3 442.8 445.7 446.9 446.2 449.7 451.8 452.9 446.2 449.8 452.6 455.1 450.6 Final products 336.3 340.5 342.7 343.9 343.7 346.6 347.8 347.7 341.9 346.3 349.7 352.4 346.9 Consumer goods 235.9 237.6 238.2 239.5 238.9 241.1 241.3 241.0 235.4 239.0 241. 7 243.5 237.9 Equipment 100.6 103.0 104.6 104.5 104.8 105.6 106.6 106.6 106.6 107.3 108. ?? 109.2 108.9 Intermediate products 110011..33 110022..22 110033..00 110022..77 110022..33 110033..11 110044..33 110044..88 110044..66 110033..55 110033.. 110033..77 110033..66 1 For NOTE see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) 1967 1973 1972 1973 pro- Grouping p ti o o r n - age v Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. r Nov.r j ! Dec. 5 88 2 . . 5 3 5 3 1 1 2 2 5 2 . . 2 1 1 1 2 1 0 6 . . 4 3 1 1 2 1 1 7 . . 4 5 1 1 2 1 2 8 . . 7 7 1 1 2 1 3 9 . . 4 9 1 1 2 2 3 0 . . 8 6 1 1 2 2 4 1 . . 9 8 1 1 2 2 5 3 .6 .0 1 1 2 2 6 3 . . 5 8 1 1 2 2 6 2 . . 1 6 1 12 2 6 3 . . 3 3 1 1 2 2 6 3 . . 4 5 1 1 2 2 7 4 . . 4 8 1 1 2 2 6 3 . . 8 9 36.22 129.6 126.2 127.0 128.4 128.6 128.4 129.3 129.3 130.5 130.9 130.7 130.4 131.3 131.0 11.45 128.9 126.1 127.3 128.0 127.3 126.6 127.0 128.2 130.4 130.7 131.3 131.5 130.3 125.9 6.37 110.2 108.2 108.5 110.2 109.5 109.0 109.1 109.5 111.0 111.5 111.8 111.9 111.4 110.0 Utilities 55..0088 152.3 114488..55 151.0 150.5 149.6 148.7 149.5 151.5 154.8 154.8 155.8 156.2 153.7 146.0 Durable manufactures Primary and fabricated metals 1 6 2. . 5 6 5 1 .1 1 2 2 8 7 .8 .1 1 1 2 2 4 5 .0 .4 1 1 2 2 4 3 . . 3 1 1 1 2 2 5 4 . . 4 7 1 1 2 2 5 3 . . 8 5 1 1 2 2 7 5 . . 3 8 1 1 2 2 8 6 . . 1 1 1 1 2 2 8 4 . . 7 5 1 1 3 2 0 8 . . 6 1 1 1 2 2 9 5 .5 .6 1 1 2 2 9 7 . . 5 8 1 1 3 2 0 8 . . 6 7 1 1 3 3 3 3 .4 .4 1 1 3 3 2 3 .8 .0 4.23 121.6 120.0 118.6 120.0 117.5 119.7 119.8 119.9 120.9 118.5 122.7 123.6 129.6 129.1 5.94 130.7 122.3 125.7 126.2 128.4 128.9 130.3 133.4 133.5 133.8 131.5 132.4 133.5 132.4 32.44 117.3 111.2 112.5 113.7 115.1 115.7 117.3 118.8 119.3 117.7 118.9 118.9 119.4 118.3 Machinery 17.39 125.9 116.8 118.4 119.1 121.4 122.6 124.7 126.9 127.6 128.5 130.0 129.2 130.5 130.8 9.17 125.1 114.4 116.3 117.3 119.0 121.5 124.0 126.1 127.1 128.9 130.0 130.0 130.4 130.6 8.22 126.8 119.6 120.8 121.2 123.9 123.8 125.4 127.8 128.0 128.2 129.8 128.5 130.8 130.9 9.29 109.2 106.6 107.6 110.0 110.3 110.0 111.0 112.2 112.1 105.7 107.3 108.8 108.3 103.1 4.56 138.1 135.9 139.3 141.5 141.0 140.1 140.9 143.3 144.1 131.0 133.9 136.4 134.8 122.9 Aerospace and misc. trans, eq... 4.73 81.4 78.3 77.1 79.7 80.8 81.1 82.2 82.2 81.3 81.3 81.7 82.3 82.9 84.1 2.07 138.4 126.6 130.1 131.9 133.8 134.7 138.9 140.2 140.8 140.9 141.5 141.0 142.9 143.6 3.69 85.4 87.8 87.0 87.6 87.1 86.4 85.4 86.7 86.7 83.8 83.7 83.8 82.3 83.9 Lum L b u e m r, be c r l a a y n d a n p d r o g d la u s c s t s 4 1 . . 4 6 4 5 1 1 2 2 9 8 . . 5 9 1 1 2 2 3 2 . . 7 7 1 1 2 2 6 5 . . 4 8 1 1 2 2 7 8 . . 3 5 1 1 2 2 9 9 . . 1 5 1 1 2 2 9 9 . . 9 1 1 1 3 2 0 7 . . 3 5 1 1 2 2 9 6 . . 2 6 1 1 2 2 9 5 .8 .4 1 1 2 2 9 8 . . 2 4 1 1 2 2 8 8 . . 8 9 1 1 2 2 9 7 .7 .4 1 1 3 3 1 3 .4 .2 1 1 3 3 0 3 . . 9 7 Clay, glass, and stone products 2.79 129.9 124.3 126.8 126.6 128.9 130.4 132.0 130.5 132.3 129.6 128.8 131.2 130.4 129.4 Furniture and miscellaneous 2.90 135.2 127.7 130.3 132.8 133.4 133.1 136.0 135.4 135.9 137.5 138.2 136.1 135.5 136.0 Furniture and fixtures 1.38 126.3 120.3 119.1 122.3 122.8 123.8 126.5 126.5 127.5 129.5 130.4 128.8 127.9 127.6 Miscellaneous manufactures 11..5522 143.3 134.5 140.5 142.4 143.0 141.6 144.5 143.6 143.5 144.9 145.3 142.9 142.4 143.6 Nondurable manufactures Te T xt e il x e t s i , l e a m pp il a l r e p l r , od an u d c ts le ather 2 6. . 9 6 0 9 1 1 1 2 4 7 . . 7 1 1 1 1 2 3 4 . . 2 2 1 1 1 2 3 5 . . 4 3 1 1 1 2 4 6 . . 4 1 1 1 1 2 4 7 . . 6 1 1 1 1 2 4 6 . . 0 1 1 1 1 2 3 7 . . 3 2 1 1 1 2 5 9 . . 0 2 1 1 1 2 4 8 . . 5 9 1 1 1 2 5 9 .4 .0 1 1 1 3 7 0 . . 5 2 1 1 1 3 6 0 .8 .2 1 11 2 6 9 . . 5 7 1 11 3 7 0 .5 .0 Apparel products 3.33 112.9 111.1 112.3 112.6 112.4 111.7 110.0 111.0 112.1 113.6 115.4 114.9 114.9 Leather and products .88 £3.6 87.4 81.3 85.1 85.0 86.8 83.0 86.6 79.2 81.0 86.4 83.1 82.7 82.4 Pap P e a r p e a r n d a n p d r in p t r in o g d ucts 3 7. . 9 1 2 8 1 12 3 2 5 .1 .4 1 1 2 3 0 3 . . 3 6 1 1 2 3 0 1 . . 0 8 1 1 2 3 1 4 . . 5 1 1 1 2 3 2 7 . . 4 1 1 1 2 3 0 3 . . 8 6 1 12 3 2 5 . . 0 1 1 1 2 3 2 4 . . 8 6 1 1 2 3 3 5 . . 8 3 1 1 2 3 4 7 .5 .0 1 1 2 3 2 4 . . 1 8 1 1 2 3 1 5 . . 3 3 1 1 2 3 1 6 . . 9 2 1 12 3 0 4 . . 5 9 Printing and publishing 4.74 113.2 111.3 112.1 113.0 112.4 112.2 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 Chemicals, petroleum, and rubber.... 11.92 149.3 143.8 145.5 146.3 146.3 147.9 150.2 149.8 151.8 151.0 150.9 151.1 151.2 151.4 Chemicals and products 7.86 150.1 144.7 146.4 147.2 146.8 147.8 150.2 150.4 152.0 151.4 153.0 152.7 152.0 153.7 Petroleum products 1.80 127.4 125.5 127.3 124.1 123.5 126.9 128.5 129.7 129.3 128.2 126.0 130.4 129.5 125.8 Rubber and plastics products 2.26 164.0 154.7 157.1 160.4 163.4 165.1 166.8 163.9 168.8 167.9 163.6 161.9 165.6 163.7 Foo F d o s od a s n d tobacco 9 8 . . 4 8 8 1 1 12 2 1 2 . . 9 7 1 1 1 1 8 9 . . 5 7 1 1 1 2 9 0 . . 6 5 1 12 2 2 2 . . 0 9 1 12 2 1 1 . . 5 8 1 1 2 2 0 1 . . 7 3 1 1 2 2 1 2 . . 5 4 1 1 1 2 9 0 . . 5 3 1 1 2 2 1 2 . . 3 4 1 1 2 2 2 2 . . 0 9 1 1 2 2 2 3 .2 .2 1 1 2 2 1 2 . . 7 4 1 12 2 4 5 . . 6 3 1 12 2 3 4 .9 .4 Tobacco products ..6677 111111..66 110022..55 110077..99 111100..33 118.1 111122..99 111.2 110088..11 105.3 110.1 109.1 113.7 115.8 Mining Met M al e , ta s l to m n i e n in a g nd earth minerals 1. . 2 5 6 1 1 1 1 3 8 0 . . 1 8 1 1 1 2 3 8 . . 7 1 1 1 1 3 6 0 . . 4 3 1 1 1 3 7 1 . . 6 9 1 1 1 2 7 7 . . 0 8 1 1 1 2 6 8 . . 8 5 1 1 1 2 6 7 . . 2 0 1 1 1 2 1 1 . . 8 6 1 1 1 2 6 8 . . 9 4 1 1 2 3 0 1 . . 6 4 1 1 2 3 0 6 . . 4 6 1 1 2 3 0 8 . . 9 3 1 1 2 3 1 5 . . 3 2 1 12 3 2 5 .0 .2 Stone and earth minerals .75 109.5 104.0 106.9 107.8 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2 111.7 113.1 Coa C l oa o l ily and gas 5. . 1 6 1 9 1 1 0 0 8 3 . . 3 6 1 9 06 8 . . 8 6 1 9 06 9 . . 5 1 1 1 0 0 8 3 . . 4 9 1 1 0 0 7 5 . . 6 7 1 9 07 9 . . 1 9 1 1 0 0 0 7 . . 9 3 1 1 0 0 8 8 .9 .0 1 1 0 0 9 9 .5 .0 1 1 0 0 9 4 .2 .0 1 1 0 0 9 9 .5 .8 1 1 0 0 9 3 .7 .0 1 10 0 9 4 . . 0 1 1 9 06 9 . . 9 7 Oil and gas extraction 44..4422 110099..00 110088..22 107.7 109.1 107.9 108.3 108.4 109.1 109.5 110.0 109.7 110.8 109.8 108.0 Utilities Electric 3.91 160.7 155.6 159.1 158.3 157.4 156.2 156.8 159.7 164.0 163.8 165.1 165.3 162.2 153.5 Gas • • 11..1177 112244..22 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. • FEBRUARY 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1972 1973 pro- aver- Grouping p ti o o r n - age p Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov.r Dec. Total index 100.0 125.6 117.3 118.9 123.6 124.6 124.5 125.6 128.9 122.4 126.7 131.0 130.4 Products, total 62.21 123.4 114.2 116.6 120.6 121.8 121.2 122.4 127.3 121.6 125.1 130.6 129.1 Final products 48.95 121.3 112.0 115.3 119.1 120.0 118.9 120.0 125.1 118.9 122.2 128.6 127.2 Consumer goods 28.53 131.7 120.2 125.3 129.2 130.8 129.2 130.3 136.4 128.6 134.1 141.8 139.2 Equipment 20.42 106.7 100.5 101.4 104.9 105.0 104.6 105.5 109.2 105.2 105.7 110.3 110.3 Intermediate products 13.26 131.1 122.2 121.2 126.1 128.5 129.6 131.4 135.2 131.8 135.5 137.6 136.2 Materials 37.9 129.3 122.5 122.8 128.6 129.2 129.9 130.9 131.4 123.7 129.2 131.8 132.5 Consumer goods Durable consumer goods 7. 139.0 125.1 133.3 140.6 143.5 141.3 142.7 147.5 129.2 126.9 146.2 149.6 Automotive products 2.84 136.8 123.9 138.5 149. 151.5 147.6 147.4 154.4 124.3 100.5 136.6 146.6 Autos 1.87 125.4 109.8 134. 144.6 143.9 135.8 138.2 148.5 108.5 69.1 121.9 140.3 Auto parts and allied goods.... .97 158.9 150.9 145.7 157.7 166.0 170.2 165.0 165.8 154.5 160.8 164.9 158.6 Home goods 5.02 140.3 125.8 130.3 135.8 138.9 137.7 140.1 143.6 132.0 141.8 151.7 151.3 Appliances, TV, and home audio 1.41 144.8 122.0 139.7 142.6 149.0 148.2 148.5 146.8 130.1 135.0 161.6 165.5 Appliances and A/C .92 156.9 134.6 153.7 157.0 166.2 165.6 166.1 162.7 150.5 134.1 168.7 176.5 TV and home audio .49 98.4 Carpeting and furniture 1.08 156.'6 140.0 141.0 150.2 149.1 146.1 146.3 151.1 134.4 156.5 159. 156.2 Misc. home goods 2.53 133.6 121.9 120.4 125.9 129.0 128.2 132.7 138.6 132.1 139.3 143.0 141.2 Nondurable consumer goods 20.67 129.0 118.4 122.2 124.9 126.0 124.6 125.6 132.2 128.4 136.8 140.1 135.2 Clothing 4.32 116.0 103.0 105.9 116.6 120.0 119.3 115.3 122.4 104.3 121.7 124.3 121.5 Consumer staples 16.34 132.4 122.5 126.5 127.1 127.6 126.0 128.3 134.8 134.8 140.8 144.3 138.8 Consumer foods and tobacco... 8.37 122.2 111.6 113.8 117.0 118.4 117.8 120.7 123.8 120.2 128.0 133.2 130.0 Nonfood staples 7.98 143.1 134.0 139.9 137.8 137.2 134.7 136.2 146.3 150.1 154.3 156.0 148.0 Consumer chemical products. 2.64 153.3 133.8 139.9 140.2 147.3 146.9 154.0, 164.2 157.6 157.5 166.4 164.9 Consumer paper products.... 1.91 121.3 113.2 112.4 116.2 115.5 117.8 117.01 125.1 123.1 133.2 132.1 126.5 Consumer fuel and lighting.. 3.43 147.5 145.8 155.3 148.0 141.6 134.6 133.2 144.4 159.5 163.6 161.4 147.0 Residential utilities 2.25 156.8 154.5 168.5 160. 151. 140.4 135.5 148.7 177.3 178.9 177.5 154.9 Equipment Business equipment 12.74 122.6 112.0 114.4 119.6 119.8 119.7 121.1 126.4 120.3 121.9 128.6 128.5 Industrial equipment 6.77 120. 110.6 111.6 116.4 116.8 116.8 117.9 122.6 117.4 121.0 126.1 126.0 Building and mining equip 1.45 120.4 114.3 112.0 118.6 117.2 115.7 115.6 120.2 115.9 119.3 128.3 126.7 Manufacturing equipment 3.85 113.0 101.7 103.4 108.9 109.6 109.3 111.4 116.2 108.8 115.7 118.6 118.5 Power equipment 1.47 138.5 130.2 132.7 133.9 135.3 137.3 137.1 141.8 141.3 136.7 143.7 145.1 Commercial, transit, farm eq 5.97 125.5 113.6 117.6 123.3 123.2 122.9 124.7 130.7 123.5 122.9 131.5 131.3 Commercial equipment 3.30 135.0 122.3 123.0 127.8 126.9 129.1 131.6 140.1 139.3 140.4 144.7 141.8 Transit equipment 2.00 109.8 99.2 108. 114.8 114.9 110.8 112.0 113.8 102.6 96.8 108.0 115.5 Farm equipment .67 125.1 113.2 118.9 126.2 129.7 128.2 128.6 134.9 108.2 113.9 136.3 126.5 Defense and space equipment 7.68 80.2 81.5 79.8 80.5 80.4 79.5 79.6 80.7 80.0 78.8 79.9 80.1 5.15 80.3 82.4 81.2 81.9 81.8 80.8 80.3 81.3 80.5 78.4 79.0 79-0 Military products Intermediate products 5.93 134.2 121.9 120.5 128.0 131.9 135.0 136.4 140.7 131.6 136.0 139.8 140.1 Construction products 7.34 128.6 122.5 121.7 124.5 125.7 125.2 127.4 130.7 131.9 135.0 135.9 133.0 Misc. intermediate products Materials 20.91 130.1 121.8 121.6 128.8 130.7 131.2 132.2 132.8 124.4 128.9 133.4 132.9 4.75 127.8 126. 126.8 129.3 129.4 130.0 128.8 130.5 120.4 122.9 128.7 129-9 Durable goods materials 5.41 119.3 111.0 110.8 114.7 117.5 117.4 118.7 120.7 116.3 119.4 123.3 122.3 Consumer durable parts 10.75 136.5 125.1 124.7 135.7 137.9 138.7 140.6 139.9 130.3 136.3 140.6 139.6 Equipment parts Durable materials n.e.c 13.99 129.1 123.9 124.5 129.2 128.2 129.4 130.7 130.8 123.4 130.1 130.4 133-1 Nondurable goods materials 8.58 139.8 131.8 133.7 139.6 139.0 140.9 142.2 142.2 132.1 141.3 141.8 144.4 Textile, paper, and chem. mat 5.41 112.2 111.4 110.0 112 111.2 111.1 112.6 112.7 109.7 112.4 112.4 115-3 Nondurable materials n.e.c 2.89 123.9 120.3 122.6 124.5 123.2 122.3 122.7 123.9 119.9 126.6 127.3 127-2 Fuel and power, industrial Supplementary groups Home goods and clothing 9.34 129.0 115.3 119.0 126.9 130.2 129.2 128.6 133.8 119.2 132.5 139.1 137-5 Containers 1.82 139.9 125.0 129.4 140.5 142.6 139.4 140.9 145.8 131.2 144.6 142.9 149-8 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 11996677 11997733 1972 1973 pprroo-- aavveerr-- GGrroouuppiinngg pp ttii oo oo rr nn -- aaggee pp Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov. r Dec. Manufacturing, total 88.55 125.2 116.3 117.6 123.2 124.6 124.7 125.8 128.9 121.1 125.3 130.2 130.2 128.1 122.4 Durable 52.33 122.1 113.3 114.9 121.0 122.5 122.4 123.2 125.8 117.9 119.3 125.9 126.3 125.2 120.6 Nondurable 36.22 129.6 120.6 121.5 126.3 127.7 128.0 129.5 133.3 125.6 133.9 136.4 135.9 132.3 124.9 Mining and utilities 11.45 128.9 125.2 128.6 127.5 125.0 122.7 123.6 128.2 133.0 137.2 137.1 131.2 127.4 125.0 Mining 6.37 110.2 109.2 107.0 109.2 107.6 108.5 110.7 110.9 108.3 112.3 112.5 112.9 112.0 110.8 Utilities 5.08 152.3 145.4 155.7 150.6 146.8 140.5 139.9 149.9 164.1 168.4 168.0 154.3 146.7 142.9 Durable manufactures Primary and fabricated metals 12.55 128.8 120.5 120.4 130.0 132.1 131.7 131.2 130.5 121.6 725.5 131.3 130.3 131.0 130.2 Primary metals 6.61 127.1 118.9 118.5 131.3 133.8 133.9 131.7 127.7 116.4 121.6 129.5 125.9 127.1 128.3 Iron and steel, subtotal 4.23 121.6 114.2 112.3 125.8 128.3 128.5 125.8 121.1 112.7 117.1 125.6 118.4 120.5 122.9 5.94 130.7 122.3 122.6 128.5 130.1 129.3 130.7 133.7 127.5 129.8 133.3 135.3 135.4 132.4 32.44 117.3 109.0 111.8 116.0 117.1 116.7 117.9 121.7 114.1 113.0 121.2 122.1 120.7 115.1 17.39 125.9 114.6 116.9 121.8 123.3 123.5 124.9 129.4 122.2 125.8 133.0 132.0 130.4 126.8 Nonelectrical machinery 9.17 125.1 112.5 114.0 121.2 122.2 122.3 124.0 129.6 122.9 126.3 132.2 129.6 129.2 127.1 Electrical machinery 8.22 126.8 117.0 120.2 122.4 124.5 124.8 125.9 129.2 121.4 125.2 134.0 134.8 131.8 126.4 Transportation equipment 9.29 109.2 103.2 108.7 113.5 114.0 112.8 113.4 116.3 104.0 94.0 108.3 113.7 112.3 99.3 Motor vehicles and parts 4.56 138.1 129.2 142.6 148.6 147.3 144.9 145.6 151.2 129.0 108.5 135.2 145.8 142.6 115.4 Aerospace and misc. trans, eq. .. 4.73 81.4 78.1 76.0 79.6 82.0 81.8 82.4 82.7 79.8 80.1 82.4 82 7 83.1 83.8 Instruments 2.07 138.4 125.3 126.3 128.1 131.5 130.5 137.5 143.1 140.8 143.9 147.4 145.4 144.5 142.2 Ordnance, private and Govt 3.69 85.4 88.2 87.5 87.9 87.8 86.4 85.6 87.1 86.0 82.8 83.4 83.2 82.4 84.3 Lumber, clay, and glass 4.44 129.5 115.4 115.3 123.2 127.2 130.9 132.8 135.1 128.9 134.9 134.5 136.1 131.5 123.6 Lumber and products 1.65 128.9 111.9 115.6 128.4 130.5 131.3 128.6 132.3 123.3 132.8 134.4 133.1 131.1 125.7 Clay, glass, and stone products 2.79 129.9 117.5 115.1 120.1 125.3 130.7 135.3 136.8 132.3 136.2 134.6 137.8 131.7 122.3 Furniture and miscellaneous 2.90 135.2 127.6 126.1 134.3 133.9 132.4 132.5 137.2 127.6 138.9 142.9 140.5 140.4 135.9 Furniture and fixtures 1.38 126.3 121.5 121.6 128.7 127.3 124.2 123.0 125.7 114.5 128.7 131.7 130.1 131.7 128.9 Miscellaneous manufactures 1.52 143.3 133.2 130.2 139.4 139.9 139.9 141.2 147.6 139.5 148.2 153.1 150.0 148.4 142.2 Nondurable manufactures Textiles, apparel, and leather 6.90 114.7 103.9 106.4 115.4 118.2 116.9 113.8 120.4 102.0 120.0 121.7 120.1 115.5 106.3 Textile mill products 2.69 127.1 117.0 117.8 126.1 129.6 128.7 129.1 135.0 112.1 133.6 133.2 132.8 129.1 118.6 Apparel products 33..3333 112.9 98.7 103.9 113.7 116.3 115.6 110.0 117.4 102.6 118.1 121.7 118.6 112.9 Leather and products ..8888 83.6 83.3 80.6 88.7 89.9 85.8 81.3 87.1 68.7 85.5 86.7 87.0 83.3 78.5 7.92 122.1 113.8 113.2 118.7 120.4 121.4 122.8 125.7 121.8 128.4 127.1 127.9 124.2 114.0 Paper and products 3.18 135.4 123.6 130.2 137.5 138.9 137.6 138.5 138.4 127.6 136.7 133.0 142.3 138.7 124.8 Printing and publishing 4.74 113.2 107.3 101.7 106.0 107.9 110.6 112.2 117.2 117.9 122.8 123.1 118.2 114.4 106.8 Chemicals, petroleum, and rubber 11.92 149.3 140.3 141.1 144.8 145.6 147.6 150.6 153.8 147.1 151.3 154.8 155.2 152.3 147.8 Chemicals and products 7.86 150.1 139.5 140.5 143.8 145.0 148.8 152.2 155.5 150.3 152.6 157.0 155.8 152.0 148.2 Petroleum products 1.80 127.4 125.2 123.9 120.9 119.5 121.3 127.0 132.8 132.8 133.2 130.4 132.1 129.4 125.9 Rubber and plastics products 2.26 164.0 155.0 156.8 167.3 168.3 164.4 164.0 164.6 147.4 161.2 166.5 171.5 171.6 164.0 Foods and tobacco 9.48 121.9 113.8 114.9 117.4 118.1 117.1 120.0 123.1 119.2 .126.6 131.7 129.9 126.2 118.9 Foods 8.81 122.7 115.9 115.4 117.7 118.1 117.8 120.7 123.7 121.1 127.2 132.9 130.5 126.9 120.5 Tobacco products. ..6677 111111..66 8866..00 110077..77 111133..55 111188..33 110088..00 111100..11 111155..66 9933..99 111188..55 111155..99 112222..55 111166..77 Mining Metal, stone, and earth minerals 1.26 118.1 108.7 103.4 105.7 109.0 116.4 125.7 125.3 119.0 125.5 126.2 125.3 119.2 116.8 Metal mining .51 130.8 115.0 114.0 120.6 118.7 127.2 143.4 144.0 133.9 139.7 143.4 138.7 124.7 121.4 Stone and earth minerals .75 109.5 104.4 96.2 95.5 102.4 109.0 113.6 112.6 108.9 115.8 114.4 116.2 115.5 113.6 Coal, oil, and gas 5.11 108.3 109.3 107.9 110.1 107.2 106.5 107.0 107.3 105.6 109.0 109.1 109.8 110.2 109.3 Coal .69 103.6 98.0 98.0 104.2 1 34.3 101.7 102.9 103.2 89.3 110.8 112.7 110.1 106.4 99.1 Oil and gas extraction 4.42 109.0 111.1 109.5 111.0 107.6 107.2 107.7 108.0 108.1 108.7 108.5 109.8 110.8 110.9 Utilities Electric 3.91 160.7 151.6 165.1 158.5 153.8 145.4 144.6 157.5 175.9 181.5 181.0 163.0 153.1 149.4 Gas 11..1177 112244..22 1 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 • FEBRUARY 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production fac M tu a r n in u g - 2 Prices 4 Period TToottaall Total Fin P a r M l o d ar u k c e ts t Inter- Mate- ff MM dd aa uu II cc aa ss nn tt nn tt uu -- rr uu rr yy -- -- uu ii oo == tt pp nn (( uu tt ii CC 11 aa oo ii tt mm 11 ll 99 cc aa nn pp ii 00 zz ii 66 -- ff uu tt 00 aa 77 gg yy tt )) -- .. tt ss rr tt cc CC tt rr aa ii oo oo uu oo cc nn nn tt nn cc -- ss -- -- NN TT mm rr pp tt oo ee ii oo uu ee ll cc mm nn tt oo rr nn uu aa aa yy aa tt -- ll ll —— -- ll -- gg ii -- p m E l e m o n y - t - P ro a l y ls - TT ss rr aa oo ee ll tt tt ee aa aa ss ii ll ll 33 s C um on e - r m W c s o o h a d m l o e i l - t e y - Con- mediate rials iinngg Total sumer Equipgoods ment 1955.. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956.. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957.. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958.. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959.. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961.. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962.. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964.. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965.. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966,, 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967.. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968.. 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 1969.. 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 1970., 106.6 106.0 104.5 110.3 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. A 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 1973? 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 114.8 101.9 146.9 133.1 135.5 1972--Dec 121.1 119.1 116.8 127.7 101.5 127.7 124.4 120.4 5 81.5 163.0 112.4 99.6 139.3 151 127.3 122.9 1973--Jan 122.2 120.7 118.6 129.8 102.9 128.4 124.5 121.4 181.0 112.7 99.9 139.8 156 127.7 124.5 Feb 123.4 121.5 119.3 130.2 104.1 129.5 126.7 122.7 • 82.8 191.0 113.5 100.7 142.9 158 128.6 126.9 Mar 123.7 121.7 119.6 130.8 104.1 129.4 127.0 123.4 193.0 113.8 101.0 142.6 160 129.8 129.7 124.1 122.0 120.0 130.9 104.7 129.3 127.7 123.8 177.0 114.0 101.5 144.8 157 130.7 130.7 May 124.8 122.9 120.8 131.8 105.7 130.5 128.3 124.9 '83.3 173.0 114.4 101.7 144.9 159 131.5 133.4 June 125.6 123.7 121.3 131.9 106.6 132.0 129.0 125.6 183.0 114.7 102.1 145.3 157 132.4 136.7 July 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 175.0 114.6 101.8 146.3 163 132.7 134.7 Aug 126.5 123.7 121.4 131.2 107.6 132.1 130.9 126.1 83.3 206.0 115.0 102.1 146.7 162 135.1 142.9 Sept 126.8 124.3 122.4 132.3 108.5 131.0 131.3 126.3 182.0 115.3 102.1 149.8 163 135.5 140.2 Oct 127.0 '124.3 r122.7 r132.6 r108.9 r130.6 '131.1 r126.4 1 1 191.0 116.0 102.9 151.7 165 136.6 139.5 Nov r127.5 r125.2 r123.5 r133.4 r109.8 r 131.4 '131.7 r127.4 82.7 194.0 116.4 '103.3 '155.8 164 137.6 141.8 Dec.? r126.7 r124.1 '122.2 '130.9 r109.8 r130.5 131.0 126.8 J 161.0 116.4 '103.3 '153.6 160 138.5 145.3 1974--Jan.f 125.7 123.0 121.1 129.2 109.7 129.4 130.3 112255..88 111166..00 110022..55 114499..44 116644 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 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Total construction 1 80,188 91,183 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 1,785 1,650 1,918 1,717 2,046 2,071 2,359 2,995 2,581 2,968 2,328 2,055 Private i 56,261 67,098 5,462 4,814 4,877 5,122 6,599 6,743 7,069 6,916 6,647 7,335 5,822 6,928 By type of construction: Residential building 1 34,754 45,123 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 2,184 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 1,402 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 2,226 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

FEBRUARY 1974 • CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser- Period Total Total d R en e t s i i a - l Total In tr d i u al s - B m u C i e l o r d m c i i n - a g l s b O in u t g i h s l e d r 1 - Other Total M ta i r l y i- H w ig ay h - d v e m a v t & e e i l n o o t n p - Other 2 1962 3 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1,750 10,590 1965 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4.382 10,292 27,605 808 9,321 1,973 15,503 1969 93,368 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 4,822 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 4,832 197 1 109,238 79,367 43,268 36,099 5,423 11,619 5,437 13,620 29,871 901 10,658 2,095 4,820 197 2 123,836 93,640 54,186 39,454 4,676 13,462 5,898 13,418 30,196 1,080 10,448 2,172 4,996 1972—Nov. 126,831 97,506 57,167 40,339 4,617 13,607 6,235 15,880 29,325 1,200 10,585 2,042 15,498 Dec.. 131,550 98,450 57,545 40,905 4,765 13,865 6,220 16,055 33,100 1,188 11,045 2,065 18,802 1973—Jan.. 135,748 102,046 59,357 42.689 5,292 15,001 6,002 16,394 33,702 1,221 2,446 Feb.. 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.. 133,794 101,234 58,047 43,187 5,287 15,474 6,282 16,144 32,560 1,158 2,062 May, 134,139 101,790 57,453 44,337 5,338 16,118 6,252 16,629 32,349 1,277 2,569 June, 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 136,463 102,980 56,290 46.690 6,573 15,561 5,883 18,673 33,483 1,032 2,330 Nov. 136,762 102,931 54,604 48,327 6,742 16,139 6,035 19,411 33,831 1,040 1,992 Dec., 133,573 100,083 52,590 47,493 6,788 15,407 6,096 19,202 33,490 1,113 1,762 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 1- 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—Dec. 2,369 486 330 1,080 473 1,207 128 1,034 153 151 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.' 1,646 248 383 673 342 956 75 615 150 147 15 9 46 Nov. 1,696 294 309 788 355 936 83 677 133 132 16 40 Dec. 1,355 192 276 608 279 762 74 519 89 89 11 NOTE.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspecfor Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac- Digitized for FRASER turers Assn. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT • FEBRUARY 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) i p n T o s o t p t i a u tu l l a t n i t o o i n o n n a - l lab N or o t f i o n r ce T l f a o o b r t o c a e r l Employed1 Une m r m a e t n p e t 2 l oy- (N.S.A.) (N.S.A.) (S.A.) Total Total In c u n l o t n u a ra g l r i- In U pl n o e y m ed - (pe S r . A ce .) n t; industries agriculture 1967 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82.715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86.542 81,702 78,230 3,472 4,840 5.6 197 3 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1973—Jan.. 147,129 59,008 89,404 87,000 82,619 79,130 3,489 4,381 5.0 Feb.. 147,313 58,238 90,108 87.716 83,230 79,784 3,446 4,486 5.1 Mar. 147,541 57,856 90,523 88,162 83,782 80,313 3,469 4,380 5.0 Apr. 147,729 57,906 90,622 88,272 83,854 80,498 3,356 4,418 5.0 May 147,940 58,050 90,597 88,263 83,950 80,630 3,320 4,313 4.9 June 148,147 55,417 91,133 88,818 84,518 81,088 3,430 4,300 4.8 July. 148,361 55,133 91,139 88,828 84,621 81,109 3,512 4,207 4.7 Aug. 148,565 56,129 91,011 88,704 84,513 81,088 3,425 4,191 4.7 Sept. 148,782 57,484 91,664 89,373 85,133 81,757 3,376 4,240 4.7 Oct. 149,001 56,955 92,038 89,749 85,649 82,194 3,455 4,100 4.6 Nov. 149,208 57,040 92,186 89,903 85,649 82,088 3,561 4,254 4.7 Dec. 149,436 57,453 92,315 90,033 85,669 82,026 3,643 4,364 4.8 1974—Jan., 149,656 58,303 92,801 90.543 85,811 82,017 3,794 4,732 5.2 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is NOTE.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g a c- Mining c C o o n t n s io t t r r n a u c c t - T t l i i r o c a n n u & s t p i l o i p t r u i t e b a s - - Trade Finance Service G m ov e e n r t n - 196 7 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 196 8 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 196 9 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 197 0 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 197 1 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 1972. 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 SEASONALLY ADJUSTED 1973—Ja n 74,252 19,463 610 3,498 4,574 16,013 3,995 12,621 13,478 Feb 74,715 19,586 612 3,594 4,580 16,114 4,014 12,682 13,533 Mar 74,914 19,643 610 3,604 4,580 16,163 4,024 12,716 13,574 Apr 75,105 19,727 608 3,571 4,591 16,217 4,031 12,746 13,614 May 75,321 19,782 608 3,620 4,593 16,256 4,044 12,776 13,642 June 75,526 19,856 629 3,654 4.597 16,262 4,049 12,820 13,659 July 75,493 19,804 631 3,680 4.598 16,294 4,048 12,828 13,610 Aug 75,747 19,861 634 3,676 4,617 16,352 4.064 12,906 13,637 Sept 75,961 19,882 633 3,700 4,629 16,388 4,078 12,995 13,656 Oct 76,363 20,016 639 3,694 4,671 16,465 4,088 13,044 13,746 Nov 76,679 20,095 644 3,711 4,654 16,520 4,095 13,122 13,838 Dec.? 76,631 20,091 645 3,730 4,639 16,400 4.098 13,124 13,904 1974—Jan. p 76,372 19,966 645 3,601 4,665 16,363 4.099 13,107 13,926 NOT SEASONALLY ADJUSTED 1973—Jan.... 73,343 19,279 598 3,155 4,510 15,865 3,959 12,406 13,571 Feb.... 73,724 19,420 598 3,184 4,507 15,776 3,978 12,530 13,731 Mar.. . 74,255 19,521 598 3,294 4,539 15,880 4,000 12,627 13,796 Apr.... 74,861 19,586 603 3,442 4,559 16,088 4,019 12,771 13,793 May... 75,404 19,667 608 3,616 4,593 16,200 4,040 12,865 13,815 June... 76,308 20,002 642 3,837 4,661 16,335 4,089 12,999 13,743 July. .. 75,384 19,729 644 3,934 4,653 16,262 4,113 12,982 13,067 Aug 75,686 20,018 648 3,981 4,659 16,279 4,121 13,009 12,971 Sept... 76,238 20,132 641 3,944 4,671 16,367 4,082 12,982 13,419 Oct 76,914 20,168 640 3,923 4,680 16,515 4,076 13.057 13,855 Nov.. . 77,322 20,202 643 3,822 4,659 16,780 4,079 13,096 14,041 Dec.p. . 77,399 20,113 641 3,637 4,639 17,115 4,078 13.058 14,118 1974—Jan.? 75,467 19,781 633 3,248 4,600 16,236 4,062 12,884 14,023 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

FEBRUARY 1974 • EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1973 1974 1973 1974 Jan. Nov. Dec.? Jan.? Jan. Nov. Dec.? Jan.f 14,295 14,774 14,773 14,661 14,130 14,886 14,800 14,491 Durable goods 8,307 8,712 8,707 8,607 8,243 8,765 8,731 8,540 Ordnance and accessories 102 93 96 95 103 95 97 95 Lumber and wood products 539 548 554 554 521 548 546 535 Furniture and fixtures 424 434 433 433 424 441 438 433 Stone, clay, and glass products 539 561 566 565 519 565 559 545 Primary metal industries 1,031 1,096 1,095 1,074 1,024 1,079 1,082 1,066 Fabricated metal products 1,091 1,137 1,132 1,131 1,085 1,150 1,143 1,126 Machinery 1,324 1,441 1,445 1,426 1,323 1,431 1,447 1,425 Electrical equipment and supplies 1,316 1,417 1,424 1,400 1,315 1,436 1,437 1,399 Transportation equipment 1,310 1,324 1,298 1,259 1,319 1,342 1,318 1,268 Instruments and related products 292 318 320 319 291 320 322 318 Miscellaneous manufacturing industries 339 343 344 351 320 359 343 311 5,988 6,062 6,066 6,054 5,887 6,121 6,069 5,951 Food and kindred products 1,181 1,184 1,187 1,190 1,121 1,208 1,174 1,129 Tobacco manufactures 59 62 62 62 58 68 66 61 Textile-mill products 893 903 904 907 890 907 909 904 1,161 1,155 1,153 1,142 1,143 1,168 1,150 1,125 Paper and allied products 548 562 559 563 545 566 563 559 Printing, publishing, and allied industries 662 664 667 665 659 668 674 662 Chemicals and allied products 590 608 610 611 585 606 608 606 Petroleum refining and related industries 119 120 122 122 115 120 120 117 Rubber and misc. plastic products 522 549 548 541 519 554 551 538 Leather and leather products 253 255 254 251 252 256 254 250 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.) IInndduussttrryy ggrroouupp 1973 1974 1973 1974 1973 1974 Jan. Nov. Dec.f Jan.p Jan. Nov. Dec.p Jan.*5 Jan. Nov. Dec.f Jan.? 40.3 40.6 40.7 39.9 159.20 169.73 173.45 166.32 3.98 4.16 4.21 4.20 41.3 41.4 41.3 40.3 173.43 183.43 187.71 178.00 4.23 4.42 4.48 4.45 Ordnance and accessories 42.5 42.1 42.7 43.2 176.38 189.06 193.95 195.24 4.16 4.48 4.50 4.53 Lumber and wood products 39.9 40.3 41.2 40.6 134.55 146.73 152.03 146.10 3.45 3.65 3.69 3.68 Furniture and fixtures 39.0 39.4 39.7 40.0 120.96 132.93 136.49 132.78 3.15 3.34 3.37 3.37 Stone, clay, and glass products 41.1 42.1 42.1 40.9 162.01 180.62 180.18 171.20 4.03 4.28 4.29 4.28 Primary metal industries 42.4 43.4 42.5 40.6 206.49 224.89 223.55 211.93 4.87 5.23 5.26 5.22 Fabricated metal products 41.4 41.6 41.6 40.8 169.33 181.40 183.98 176.95 4.13 4.35 4.37 4.38 Machinery 42.4 42.3 42.6 41.9 188.26 197.16 205.28 197.35 4.44 4.65 4.73 4.71 Electrical equipment and supplies 40.4 40.2 40.1 39.4 153.14 159.17 161.99 156.81 3.80 3.93 3.98 3.99 Transportation equipment 42.3 41.1 41.2 38.6 209.50 213.62 225.78 199.16 5.00 5.16 5.30 5.20 Instruments and related products 40.4 40.9 41.1 40.7 153.56 163.14 168.06 163.62 3.82 3.95 4.04 4.04 Miscellaneous manufacturing industries... 38.7 38.9 38.9 38.6 124.42 130.87 131.71 129.84 3.24 3.33 3.36 3.39 Nondurable goods 39.1 39.7 39.7 39.4 139.71 150.82 152.00 148.98 3.61 3.78 3.80 3.82 Food and kindred products 40.1 40.8 40.8 40.4 149.25 159.92 163.17 160.00 3.75 3.91 3.97 3.99 Tobacco manufactures 36.6 40.7 39.1 40.1 128.52 155.83 154.80 156.42 3.56 3.81 3.87 3.96 Textile-mill products 39.5 40.6 40.7 40.3 112.22 125.46 125.77 122.09 2.87 3.06 3.06 3.06 Apparel and related products 34.5 35.7 35.9 35.1 92.75 102.96 101.96 98.61 2.72 2.86 2.84 2.85 Paper and allied products 42.5 42.7 42.8 42.9 171.74 184.47 186.19 184.46 4.06 4.30 4.31 4.32 Printing, publishing, and allied industries. 37.8 37.9 37.8 37.6 170.09 180.88 183.07 177.34 4.56 4.76 4.78 4.78 Chemicals and allied products 41.6 42.0 41.9 41.4 180.94 192.82 193.70 192.46 4.36 4.58 4.59 4.66 Petroleum refining and related industries . 41.9 43.0 42.8 42.6 209.71 228.00 223.98 227.94 5.09 5.29 5.27 5.44 Rubber and misc. plastic products 41.0 41.2 40.8 40.1 152.97 161.07 160.70 156.00 3.74 3.90 3.91 3.90 Leather and leather products 37.2 38.0 37.5 37.6 103.04 109.35 109.92 109.42 2.77 2.87 2.87 3.91 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 • FEBRUARY 1974 CONSUMER PRICES (1967 - 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o n u i a l d e l l t e r G a l i n e c a d i c s t - y o n F p i a n i u e n s g r h r d s a - - - A u p p a p k n a e d e r p el T p t o r i a r o n t n a s - - 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 t a i e c i n n o a r g d n e d a - - g O s o a i e t c n o h r e d v d e s - r s tion 5555511111.....33333 4444488888.....33333 7766..00 48.5 1933 3333388888.....88888 3333300000.....66666 5544..11 36.9 1941 4444444444.....11111 3333388888.....44444 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945 5555533333.....99999 5555500000.....77777 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 I960 8888888888.....77777 8888888888.....00000 90.2 91.7 86.3 89.2 98.6 *93.*8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1Q71 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973 133.1 141.4 135.0 124.2 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1072—"Dec 127.3 126.0 131.2 121.0 142.6 119.4 122.5 122.3 125.0 121.3 127.5 134.4 121.5 124.0 126.5 11997733---Jan 127.7 128.6 131.4 121.5 142.6 120.7 124.1 122.2 123.0 121.0 127.8 134.9 121.8 124.1 126.7 Feb 128.6 131.1 132.0 122.1 142.9 127.2 124.5 122.6 123.6 121.1 128.1 135.3 122.4 124.3 127.1 Mar 129.8 134.5 132.3 122.6 143.2 127.8 125.0 123.0 124.8 121.5 128.6 135.8 123.1 124.5 127.6 Apr 130.7 136.5 132.8 123.0 143.6 128.3 125.5 123.6 125.8 122.6 129.2 136.2 123.8 125.2 128.2 May 131.5 137.9 133.3 123.5 144.2 129.3 125.7 123.9 126.7 123.5 129.6 136.6 124.4 125.6 128.5 June 132.4 139.8 133.9 123.9 145.0 131.6 125.4 124.7 126.8 124.6 130.0 137.0 124.9 125.9 129.0 July 132.7 140.9 134.2 124.3 145.2 131.7 125.5 125.0 125.8 124.8 130.3 137.3 125.3 126.2 129.5 Aug 135.1 149.4 135.2 125.0 147.0 132.8 125.8 125.3 126.5 124.5 130.5 137.6 125.7 126.1 129.4 Sept 135.5 148.3 136.6 125.4 149.2 133.6 126.5 126.1 128.3 123.9 131.1 138.3 126.3 126.8 129.9 Oct 136.6 148.4 138.1 125.9 151.5 141.1 127.4 126.7 129.6 125.0 132.1 140.6 127.3 127.2 130.3 Nov 137.6 150.0 139.4 126.3 152.6 155.6 129.8 127.5 130.5 125.8 132.6 140.9 128.1 127.5 130.8 Dec 113388..55 115511..33 114400..55 126.9 153.6 172.8 131.0 128.0 130.5 126.7 133.0 141.4 129.2 127.6 131.3 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro- Poriod m 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 c M q a e h n u r i a y n d i - p - - 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 - T e m p t q r o i e a u o r n n n i t p a t s 1 - - - n c M e e l o i l s u a - s ment I960. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965, 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966, 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969, 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971 , 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973, 135.5 176.3 148.1 126.9 123.8 143.1 145.5 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1972—Dec 122.9 137.5 129.4 119.4 115.6 142.2 121.9 104.8 109.8 149.8 115.1 124.4 118.6 112.4 127.4 114.2 115.1 1973--Jan 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 128.2 114.1 115.8 Feb 126.9 150.9 137.0 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 128.4 114.2 117.1 Mar 129.7 160.9 141.4 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 129.0 114.5 117.9 Apr 130.7 160.6 139.8 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 130.0 114.9 118.6 May 133.5 170.4 145.0 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 130.5 115.1 119.5 June 136.7 182.3 151.8 126.9 123.7 140.9 142.8 110.4 112.6 183.1 122.0 132.5 121.9 115.2 131.1 115.0 120.2 July 134.9 173.3 146.5 126.9 124.2 141.4 142.8 110.8 112.9 177.8 122.3 132.8 122.0 115.2 130.0 115.0 120.9 Aug 142.7 213.3 166.2 127.4 125.2 143.0 142.9 111.0 113.1 178.8 123.3 133.7 122.3 115.9 130.0 115.1 121.0 Sept 140.2 200.4 156.3 128.1 126.8 143.8 144.8 111.5 112.8 181.9 124.4 134.4 122.6 116.0 129.9 114.5 121.1 Oct 139.5 188.4 153.1 129.6 128.5 143.8 150.5 112.7 114.0 180.3 125.8 135.9 123.1 116.6 130.9 115.9 121.0 Nov 141.8 184.0 151.9 133.5 130.0 143.0 179.2 113.5 114.8 184.7 127.6 138.5 123.8 117.2 131.5 116.1 121.3 Dec 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 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • PRICES A 67 WHOLESALE PRICES: DETAIL (1967= 100) 1972 1973 1972 GGrroouupp Group Dec. Oct. Nov. Dec. Dec. Oct. Farm products: Pulp, paper, and allied products: Fresh and dried produce 134.6 162.1 168.2 171.6 Pulp, paper and products, excluding 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 107.1 118.0 143.9 177.7 181.2 190.6 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 119.2 120.8 108.8 180.5 159.1 208.6 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: 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 121.3 127.5 116.0 121.5 121.9 122.2 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 121.0 125.2 255.2 256.3 239.8 227.3 162.2 160.7 160.4 156.1 128.7 131.0 131.9 132.5 128.4 130.5 130.1 130.3 Furniture and household durables: Fuels 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 122.5 118.2 118.2 126.0 128.1 128.6 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 127.3 127.3 114.6 120.2 121.2 123.5 Crude rubber 101.2 111.4 113.9 125.8 Tires and tubes 109.7 115.1 116.3 116.3 Transportation equipment:1 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 9944..88 Railroad equipment 131.1 136.2 Unsupported plastic film and sheeting (Dec. 1970= 100) 9988..66 110011..11 110011..44 110022..22 Laminated sheets, high pressure (Dec. 1970- 100) 9977..99 9977..77 9999..55 9999..99 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 • FEBRUARY 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973p IV II III IV ? Gross national product. 103.1 55.6 124.5 284.8 930.3 977.1 1,055.51,155.2 1,199.2 1,343.51,272.0 1.304.51334.0 Final purchases 101.4 57.2 120.1 278.0 922.5 972.6 1M9.41J49.1 1,191.0 1,237.81,267.5 1.299.81318.1 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.2 726.5 805.0 752.6 119. A 795.6 816.0 829.0 Durable goods 9.2 3.5 9.6 30.5 90.8 91.3 103.6 17.4 131 122.9 132.2 132.8 132.8 126.8 Nondurable goods 37.7 22.3 42.9 98. 245.9 263.8 278.7 299.9 336.3 310.7 322.2 330.3 341.6 351.1 Services 30.3 20. 28.1 62.4 242.7 262.6 284.9 309.2 337.6 319.0 325.0 332.6 341.6 351.2 Gross private domestic investment 16.2 1.4 17.9 54.1 139.0 136.3 153.2 178.3 201.5 189.4 194.5 198.2 202.0 211.1 Fixed investment 14.5 3.0 13.4 47.3 131.1 131.7 147.1 172.3 194.0 181.2 189.9 193.7 197.3 195.3 Nonresidential 10.6 2.4 9.5 27.9 98.5 100.6 104.4 118.2 136.0 124.3 130.9 134.1 138.0 141.1 Structures 5.0 .9 2.9 9.2 34.2 36.1 37.9 41.7 48.3 43.0 45.3 47.2 49.5 51.1 Producers' durable equipment. 5.6 1.5 6.6 18.7 64.3 64.4 66.5 76.5 87.7 81.2 85.5 86.9 88.61 90.0 Residential structures 4.0 .6 3.9 19.4 32.6 31.2 42.7 54.0 58.0 56.9 59.0 59.6 59.2 54.2 Nonfarm 3.8 .5 3.7 18.6 32.0 30.7 42.2 53.5 57.4 56.4 58.4 59. 58.6 53.6 Change in business inventories. 1.7 -1.6 4.5 6 7.8 4.5 6 6.0 7.4 8.2 4.6 4.5 4.7 15.9 Nonfarm 1. -1.4 4.0 6.0 7.7 4.3 4.5 5.6 6.7 7.9 4.4 4.4 3.2 14.9 Net exports of goods and services. 1.1 .4 1.3 1.8 1.9 3.6 .8 -4.6 4.6 -3.5 .0 2.8 7.6 8.0 Exports 7.0 2.4 5.9 13.8 55.5 62.9 66.3 73.5 101.3 79.7 89.7 97.2 104.5 113.5 Imports 5.9 2.0 4.6 12.0 53.6 59.3 65.5 78. 96.7 83.2 89.7 94.4 97.0 105.6 Government purchases of goods and services. 8.5 8.0 24.8 37.9 210.0 219.5 234.3 255.0 277.2 260.7 268.6 275.3 279.0 285.8 Federal 1.3 2.0 16.9 18.4 98.8 96.2 98.1 104.4 106.9 102.7 105.5 107.3 106.8\ 107.8 National defense 13. 14. 78.4 74.6 71.6 74.4 74.2 72.4 74.3 14.2 14.2l 74.0 Other 3.1 4.3 20.4 21.6 26.5 30. 32.7 30.3 31.2 33 32.71 33.8 State and local 7.2 6.0 7.9 19.5 111.2 123.3 136.2 150.5 170.3 158.0 163.0 168.0 172.2 178.0 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 725.6 722.5 745.4 790.7 837.3 812.3 829.3 834.3 841.3 844.1 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 11996699 11997700 11997711 11997722 11997733?? Item IV I II III I VP National income 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.8 1054.2 978.6 1,015.0 1,038.2 1,067.4 Compensation of employees 51.1 29.5 64.8 154.6 566.0 603.9 644.1 707.1 785.3 731.2 757.4 774.9 794.0 815.0 Wages and salaries 50.4 29.0 62.1 146.8 509.7 542.0 573.8 627.3 691.5 648.7 666.7 682.3 699.3 717.6 Private 45.5 23.9 51.9 124.4 405.6 426.9 449.7 493.3 546.1 510.9 525.1 538.7 553.2 567.2 Military .3 .3 1.9 5.0 19.0 19.6 19.4 20.3 20.8 20.1 20.9 20.5 20.4 21.3 Government civilian 4.6 4.9 8.3 17.4 85.1 95.5 104.7 113.8 124.6 117.7 120.7 123.1 125.7 129.1 Supplements to wages and salaries .7 .5 2.7 7.8 56.3 61.9 70.3 79.7 93.9 82.5 90.8 92.6 94.7 97.5 Em su p r lo a y n e c r e contributions for social in- I .1 2.0 4.0 27.8 29.1 33.7 39.0 49.0 40.2 41.4 48.3 49.4 50.8 Other labor income '.6 .4 .7 3.8 28.4 32.2 36.6 40.7 44.9 42.3 43.3 44.2 45.3 46.7 Proprietors' income 15.1 5.9 17.5 37.5 67.2 66.9 68.7 74.2 84.3 77.1 80.6 81.5 85.0 90.0 Business and professional 9.0 3.3 11.1 24.0 50.5 50.0 51.9 54.0 57.5 55.3 56.3 57.1 57.9 58.7 Farm 6.2 2.6 6.4 13.5 16.7 16.9 16.8 20.2 26.8 21.8 24.3 24.4 27.1 31.3 Rental income of persons 5.4 2.0 3.5 9.4 22.6 23.9 24.5 24.1 25.1 24.9 24.7 24.6 25.3 25.7 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 79.8 69.2 80.1 91.1 109.2 98.8 104.3 107.9 112.0 Profits before tax 10.0 1.0 17.7 42.6 84.9 74.0 85.1 98.0 126.5 106.1 119.6 128.9 129.0 Profits tax liability 1.4 .5 7.6 17.8 40.1 34.8 37.4 42.1 56.2 45.9 52.7 51.4 57.6 Profits after tax 8.6 .4 10.1 24.9 44.8 39.3 47.6 55.4 70.2 60.3 66.9 71.6 71.5 Dividends 5.8 2.0 4.4 8.8 24.3 24.7 25.1 26.0 27.8 26.4 26.9 27.3 28.1 29.0 Undistributed profits 2.8 -1.6 5.7 16.0 20.5 14.6 22.5 29.3 42.4 33.9 40.0 44.2 43.4 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 -5.1 -4.8 -4.9 -6.9 -17.3 -7.3 -15.4 -21.1 -17.0 -15.6 Net interest 4.7 4.1 3.2 2.0 30.5 36.5 42.0 45.2 50.4 46.6 47.9 49.4 51.1 53.0 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

FEBRUARY 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 1929 1933 1941 1950 1969 1970 1971 1972 1973* IV II III IV* Gross national product. 103.1 55.6 124.5 284.8 930.3 977.1 1,055.51,155.2 1288.21 ,199. 21 ,242.5 1,272.01,304.5 1334.0 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 81.6 87.3 93 J 102.4 109.6 105. 106.9 109.0 110.5 112.1 Indirect business tax and nontax liability . 7.0 7.1 11.3 23.3 85.9 93.5 102.4 109.5 117.8 112.8 115.6 117.2 118.5 120.2 Business transfer payments. .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.7 4. 4.9 5.0 5.1 Statistical discrepancy .7 .6 .4 1.5 -6.1 -6.4 -3.4 -1.5 2.3 .2 1. 3.2 3.7 Plus: Subsidies less current surplus of government enterprises -.1 .1 .2 1.0 1.7 1.2 1.7 .7 2.2 .9 .4 .6 .9 Equals: National income 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.8 1054.2 978.6 1,015.0 1,038.2 1,067.4 Less: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 79. 69.2 80.1 91.1 109.2 98.8 104.3 107. 112. Contributions for social insurance .2 .3 2 6.9 54.2 57.7 73.7 92. 75.8 89.3 90. 93. 95.0 Excess of wage accruals over disburse- 64.6 ments .0 -.5 .0 .0 -.3 .0 .6 Plus: Government transfer payments .9 1.5 2.6 14.3 61.9 75.1 98.3 112.5 107.3 110. 113. 116.8 Net interest paid by government and 88.9 consumers 2.5 1.6 2.2 7.2 28.7 31.0 31.0 32.7 37.1 33.7 34.7 36. 38. 39.6 Dividends 5 2.0 4.4 8.8 24.3 24.7 25.1 26.0 27.8 26.4 26.9 27. 28. 29.0 Business transfer payments .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.7 4. 4. 5. 5.1 .6 Equals: Personal income 47.0 96.0 227.6 750.9 808.3 863.5 939.2 1035.5 976.1 996.6 1,019 .01,047. 1079.2 85.9 Less: Personal tax and nontax payments... 1.5 3.3 20.7 116.5 116.6 117.5 142.2 152.9 147.4 145. 149 156. 161.2 2.6 Equals: Disposable personal income 45.5 92.7 206.9 634.4 691.7 746.0 797.0 882.6 828.7 851.5 869 891 918.0 83.3 Less: Personal outlays 79. 46.5 81.7 193.9 596.2 635.5 685.8 747.2 828.7 774.3 801.5 818 840 854.6 Personal consumption expenditures, 77.2 45. 80.6 191.0 579.5 617.6 667.2 726.5 805.0 752.6 779.4 795 816 829.0 Consumer interest payments 1.5 .5 .9 2.4 15.8 16. 17.7 19.7 22.5 20.7 21.2 22 23 23.8 Personal transfer payments to foreigners .3 .2 .2 .5 .9 1.0 1.0 1.0 1.2 1. .9 1. 1.8 Equals: Personal saving. 4.2 -.9 11.0 13.1 38.2 56.2 60.2 49.7 53.8 54.4 50.0 51.0 51. 63.3 Disposable personal income in constant (1958) dollars 150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.1 595.lj 603.9 604.8 609.5 613.9 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 11997722 11997733** Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov Dec. p Total personal income 939.2 1035.5 983.6 989.1 997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1068.5 1079.4 1089.6 Wage and salary disbursements 627.8 691.5 654.0 661.7 667.2 671.1 677.6 682.0 688.2 693.2 698.9 706.0 711.2 717.8 : 723.7 Commodity-producing industries.. 226.0 252.0 236.8 239.2 242.2 243.5 245.9 248.3 251.7 253.4 254.8 257.8 259.5 262.5 264.8 Manufacturing only 175.9 196.8 185.6 187.1 189.6 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.7 Distributive industries 151.5 165.1 157.2 158.7 159.3 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171.8 Service industries " 116.1 129.0 121.3 122.9 124.1 124.9 126.4 126.8 127.7 129.4 130.8 132.5 132.9 134.1 135.8 Government 134.2 145.4 138.7 140.9 141.6 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 Other labor income 40.7 44.9 42.7 43.0 43.3 43.6 43.9 44.2 44.5 44.8 45.3 45.8 46.2 46.7 47.1 Proprietors' income 74.2 84.3 77.9 80.1 80.6 81.0 81.0 81.5 81.9 83.7 85.1 86.4 ••88.4 90.3 91.3 Business and professional 54.0 57.5 55.6 56.1 56.3 56.4 56.8 57.1 57.3 57.8 58.0 58.1 58.5 58.7 58.9 Farm 20.2 26.8 22.3 24.0 24.3 24.6 24.2 24.4 24.6 25.9 27.1 28.3 '29.9 31.6 32.4 Rental income 24.1 25.1 24.9 24.8 24.8 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 25.7 25.7 Dividends 26.0 27.8 26.5 26.8 26.9 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 28.7 29.8 Personal interest income 78.0 87.5 81.1 81.9 82.6 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.5 92.6 93.7 Transfer payments 103.0 117.5 112.6 112.5 113.8 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.1 121.9 122.7 Less: Personal contributions for social insurance 34.7 43.1 35.9 41.7 41.9 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 44.3 44.4 Nonagricultural income 911.5 1000.6 953.6 957.4 965.3 970.9 979.5 986.4 994.2 1,001.8 1,012.1 1,021.8 1030.0 1039.0 1048.2 Agricultural income 27.7 34.9 30.0 31.8 32.1 32.4 32.0 32.2 32.4 33.8 35.2 36.7 38.5 40.4 41.5 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 FLOW OF FUNDS • FEBRUARY 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1968 1969 1970 1971 1972 1973 HI H2 HI H2 HI H2 Funds raised, by type and sector Total funds raised by nonfinancial sectors 94.6 91.4 97.5 146.7 166.1 183.2 134.7 158.7 145.2 187.3 197.4 169.1 1 2 Excluding equities 95.9 88.0 92.6 135.0 156.1 177.7 123.8 146.1 134.7 177.8 192.4 163.1 2 3 U.S. Government 13.4 -3.6 12.8 25.5 17.3 9.7 22.7 28.4 12.4 22.2 17.0 2.5 3 4 Public debt securities 10.3 -1.3 12.9 26.0 13.9 8.3 24.2 27.8 10.5 17.2 15.8 .7 4 5 Budget agency issues 3.1 -2.4 -.5 3.4 1.5 -1.6 .5 1.9 4.9 1.2 1.8 5 6 All other nonfinancial sectors 81.2 95.0 84.7 121.2 148.8 173.5 112.0 130.4 132.8 165.1 180.4 166.7 6 7 Corporate equities -1.4 3.4 4.9 11.7 10.0 5.5 10.9 12.6 10.4 9.5 5.0 6.1 7 8 Debt instruments 82.6 91.6 79.8 109.5 138.8 168.0 101.1 117.8 122.3 155.6 175.4 160.6 8 9 50.6 50.6 57.7 83.2 92.4 92.8 79.5 86.9 87.3 97.6 91.7 93.9 9 10 State and local government securities 9.5 9.9 11.3 16.6 11.9 8.9 17.9 15.4 12.0 11.9 6.3 11.5 10 11 Corporate and foreign bonds 14.0 13.0 20.6 19.7 13.2 11.8 22.3 17.2 14.4 12.0 10.6 12.9 11 12 Mortgages 27.1 27.7 25.7 46.8 67.3 72.2 39.3 54.3 60.9 73.7 74.9 69.5 12 13 Home mortgages 15.1 15.7 12.8 26.0 39.7 39.0 20.6 31.5 35.6 43.7 41.4 36.7 13 14 Other residential 3.4 4.7 5.8 8.8 10.3 13.0 8.5 9.1 9.1 11.5 14.1 11.9 14 15 6.4 5.3 5.3 10.0 14.8 15.9 8.5 11.5 13.5 16.0 15.1 16.8 15 16 Farm 2.2 1.9 1.8 2.0 2.6 4.2 1.7 2.3 2.7 2.5 4.3 4.1 16 17 Other private credit 32.0 41.0 22.1 26.3 46.4 75.2 21.7 30.9 35.0 58.0 83.7 66.7 17 18 13.1 15.3 6.4 9.3 21.8 41.3 5.1 13.5 14.5 29.3 54.4 28.2 18 19 Consumer credit 10.0 10.4 6.0 11.2 19.2 22.9 8.9 13.6 15.8 22.5 25.2 20.6 19 20 Open-market paper 1.6 3.3 3.8 -.9 -1.6 2.5 -1.0 -.8 -.3 -2.8 -3.4 8.4 20 21 Other 7.2 12.0 5.9 6.6 7.0 8.5 8.7 4.6 5.0 9.0 7.5 9.5 21 22 By borrowing sector 81.2 95.0 84.7 121.2 148.8 173.5 112.0 130.4 132.8 165.1 180.4 166.7 22 23 Debt instruments 82.6 91.6 79.8 109.5 138.8 168.0 101.1 117.8 122.3 155.6 175.4 160.6 23 24 Foreign 2.9 2.9 3.0 5.7 3.8 6.9 5.3 6.1 3.4 4.3 11.1 2.6 24 25 State and local governments 9.8 10.7 11.4 17.0 12.3 8.8 17.9 16.1 11.9 12.7 6.3 11.4 25 26 Households 29.6 32.2 22.9 38.3 63.2 70.9 30.0 46.6 56.2 70.5 72.4 69.4 26 27 Nonfinancial business 40.2 45.9 42.5 48.5 59.5 81.3 47.9 49.0 50.9 68.2 85.6 77.2 27 28 2.8 3.2 3.2 4.1 4.9 7.6 4.0 4.2 4.4 5.3 7.3 8.0 28 29 5.6 7.4 5.3 8.7 10.4 12.6 9.3 8.1 9.5 11.6 13.7 11.5 29 30 31.8 35.4 33.9 35.7 44.2 61.1 34.6 36.8 37.0 51.2 64.5 57.7 30 31 -1.4 3.4 4.9 11.7 10.0 5.5 10.9 12.6 10.4 9.5 5.0 6.1 31 32 Foreign .2 .5 .1 * -.4 -.1 .4 -.3 -.2 -.6 - .4 . 1 32 33 Corporate business -1.5 2.9 4.8 11.7 10.4 5.7 10.5 12.9 10.7 10.1 5.4 6.0 33 Totals including equities 34 3.1 3.3 3.0 5.7 3.4 6.7 5.7 5.8 3.2 3.7 1100..77 2.7 3344 35 38.7 48.8 47.3 60.2 69.9 87.0 58.4 61.9 61.6 78.3 91.0 83.2 35 36 30.3 38.3 38.8 47.4 54.6 66.8 45.1 49.7 47.7 61.3 69.9 63.7 36 37 Memo: U.S. Govt, cash balance -1.1 .4 2.8 3.2 .5 -1.6 -.2 6.6 -3.0 4.0 3.6 -6.7 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised 95.7 91.0 94.7 143.5 165.6 184.8 134.9 115522..11 148.1 118833..33 119933..88 117755..99 3388 39 By U.S. Government 14.5 -4.0 10.0 22.3 16.8 11.3 22.9 21.7 15.4 18.1 13.4 9.2 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlays i 207.6 226.7 224.2 252.5 291.1 328.0 246.3 258.7 279.9 302.3 323.8 332.3 1 2 Capital consumption 2 140.4 154.3 166.0 179.0 193.4 209.5 175.8 182.2 190.3 196.6 205.6 213.5 2 3 Net physical investment 67.2 72.4 58.2 73.5 97.7 118.5 70.5 76.6 89.7 105.7 118.2 118.8 3 4 Net funds raised 68.3 81.0 70.2 98.5 133.1 157.9 88.4 108.5 117.7 148.8 163.4 152.6 4 5 Excess net investment 3 -8.6 -12.0 -25.0 -35.4 -39.4 -17.9 -32.0 -28.0 -43.1 -45.2 -33.8 5 Total business 6 Total capital outlays 97.9 108.9 108.0 116.6 133.3 150.6 115.8 117.3 127.4 139.3 145.6 155.5 6 7 Capital consumption 63.2 69.5 74.6 80.3 87.6 94.1 78.8 81.7 86.2 88.9 92.7 95.6 7 8 Net physical investment 34.7 39.4 33.5 36.3 45.8 56.4 37.0 35.5 41.2 50.4 52.9 60.0 8 9 Net debt funds raised 40.2 45.9 42.5 48.5 59.5 81.3 47.9 49.0 50.9 68.2 85.6 77.2 9 10 Corporate equity issues -1.5 2.9 4.8 11.7 10.4 5.7 10.5 12.9 10.7 10.1 5.4 6.0 10 11 Excess net investment 3 -4.0 -9.4 -13.8 -23.9 -24.1 -30.6 -21.4 -26.4 -20.4 -27.9 -38.1 -23.2 11 Corporate business 12 Total capital outlays 75.0 83.7 84.0 86.7 100.7 113.7 86.5 87.0 96.0 105.4 108.5 118.8 12 13 Capital consumption 45.1 49.8 53.6 57.7 62.8 67.6 56.7 58.7 61.8 63.8 66.5 68.7 13 14 Net physical investment 29.9 33.9 30.4 29.1 37.8 46. 1 29.8 28.3 34.1 41.5 42.0 50.1 14 15 Net debt funds raised 31.8 35.4 33.9 35.7 44.2 61.1 34.6 36.8 37.0 51.2 64.5 57.7 15 16 Corporate equity issues -1.5 2.9 4.8 11.7 10.4 5.7 10.5 12.9 10.7 10.1 5.4 6.0 16 17 Excess net investment 3 -.4 -4.4 -8.4 -18.3 -16.8 -20.7 -15.3 -21.4 -13.5 -19.8 -27.9 -13.5 17 Households 18 Total capital outlays 109.7 117.8 116.2 135.9 157.8 177.5 130.4 141.4 152.6 163.0 178.2 176.8 18 19 Capital consumption 77.2 84.8 91.4 98.7 105.9 115.4 97.0 100.4 104.1 107.7 112.9 118.0 19 20 Net physical investment 32.5 33.0 24.7 37.2 51.9 62.1 33.5 41.0 48.5 55.3 65.3 58.8 20 21 Net funds raised 29.6 32.2 22.9 38.3 63.2 70.9 30.0 46.6 56.2 70.5 72.4 69.4 21 22 Excess net investment 3 2.9 .8 1.8 -1.1 -11.3 -8.9 3.5 -5.6 -7.6 -15.2 -7.1 -10.6 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 5) 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 F ag H e A nc , i E es x p a o re 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 i V ng A . b I y s su fi e n s a n b c y i a F l ed in e s r t a i l t l u y - NOTE.—Full statements for sectors and transaction types are available tions. Such issues are on p. A-71, line 11. Corporate share issues are net on a quarterly basis and annually for flows and for amounts outstanding. cash issues by nonfinancial and foreign corporations. Mortgages exclude Requests for these statements should be addressed to the Flow of Funds loans in process. Open-market paper is commercial paper issued by Section, Division of Research and Statistics, Board of Governors of the nonfinancial corporations plus bankers' acceptances. Digitized for FRASFeEdRer al Reserve System, Washington, D.C., 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 Transaction category, or sector 1968 1970 1971 1972 1973 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to By p n ub on li f c i n a a g n e c n i c a i l e s s e a c n to d r s f oreign 95.9 88.0 92.6 135.0 156.1 177.7 123.8 146.1 134.7 177.8 192.4 163.1 4 5 6 2 3 B T y o O R F U ta a H e t . l g S h s L e . i n e d n r B e G e c t l n y o a o a t — v d a i d a e n v v l r s a a n m n n a m c c n o e e e d r s s n t g t s t o e a s c g e S u e c & r s u i r t L i i e ' t s i s e s . ]. 1 2 3 5 2 . . . . . 1 8 4 9 2 1 4 4 6 5 . . . . . 0 6 3 9 8 2 1 5 5 8 1 5 . . . . . 7 2 7 0 3 - 4 3 2 4 5 1 3 . . . 7 . . 7 9 3 4 1 7 4 5 6 . . . . 3 3 2 9 * 3 1 7 7 7 2 0 . . . . . 5 2 6 7 4 - 3 3 5 4 7 8 2 . . . 5 . . 1 2 6 9 4 3 7 2 4 4 . . . . . 7 2 0 0 - 1 1 2 6 3 9 2 .4 . . . . 7 2 2 7 1 2 4 2 5 4 . . . . . 3 0 5 4 1 4 2 4 7 2 8 1 . . . . . 9 8 5 4 4 2 1 - 6 2 6 0 .6 . . . . 9 6 7 2 1 1 7 8 9 0 1 Ag F S M U e p o n . o S r o c n e . n y i e s G g t b o n a o r o r e v r y d r e o r a c n w u r m t i e h n d e g o i n t r t n i a t o i g e t e s n i n c c ie lu s ded in line I.... ! . ! . ! . . ! . " ! ! . . ! . 4 3 3 3 . . . . . 9 5 7 2 3 - 2 9 4 .3 . . . 9 2 0 1 9 5 2 8 0 . . . . . 9 8 0 2 3 2 4 2 8 3 6 . . . . . 3 2 4 2 6 6 8 . . . . . 3 2 0 2 4 2 1 9 0 1 1 9 . . . . . 3 0 1 7 6 - 2 1 4 8 7 . . . . 4 . 3 4 3 9 2 7 9 7 2 5 . . . . . 7 3 0 2 5 4 7 6 7 1 . . . . . 5 5 2 4 5 - 1 4 4 3 5 0 . . 1 . . . 5 1 0 6 1 1 1 1 2 8 1 7 . . . . . 3 7 5 6 0 - 2 2 8 3 6 1 0 . . . . 3 . 1 7 4 7 Private domestic funds advanced 1 1 1 1 1 1 1 3 5 6 4 7 8 2 To S L R U O C ta t e e . o t a l S h s s r t s . i e e n p d : r e G o e a t F r n m n o a H a t d v o t i d e a e L r v l r l t B o a a n g m c n n a m a a d c g o l d e e e r s v f n o s t o a t g b r a n a l s e i n g c e g i d e g e c a s s n u t l i r o o b i a t n o i n s e n s s d s .... ! ! . . ... ! . . 8 3 1 1 1 9 5 5 7 3 3 . . . . . . . 5 5 9 9 2 8 3 4 8 1 1 9 4 4 2 0 2 5 . . . . . . . 9 6 0 9 2 5 7 2 2 7 1 1 5 0 4 2 1 2 1 . . . . . . . 4 6 8 0 3 3 8 - - 9 2 1 3 1 3 2 9 8 6 3 9 . . 5 . 7 . . . . 1 0 7 5 6 1 4 5 1 1 1 4 9 4 1 6 3 5 . . . . . . 5 9 6 3 2 4 1 4 8 6 1 1 8 7 4 7 4 1 8 . . . . . . . 9 2 4 7 2 5 8 - - 2 2 2 8 1 5 9 2 4 5 6 7 . . . 5 . 2 . . . 1 8 1 0 9 1 4 3 1 0 1 2 2 3 9 5 6 , . . . . . . 2 3 9 8 4 4 1 - 4 3 2 1 1 2 7 8 8 2 2 4 . . . 4 . . . . 3 4 4 0 2 1 2 7 6 5 1 1 0 2 5 8 1 1 2 . . . . . . 5 3 6 0 9 1 1 9 5 6 1 1 6 7 7 5 0 0 3 . . . . . . . 3 8 5 5 0 3 3 16 2 8 3 1 1 0 3 6 8 0 1 3 . . . . . . . 8 8 6 5 3 3 4 Private financial intermediation 19 Credit market funds advanced by private financial 2 2 2 2 0 1 2 3 C I O S n a o t s i v h m u n i e s r n m r t a i g t n e s u r c t i c i e n o i n a s a s t l n it d b u a t p n i e o k n n i s s n i g o n f in fu a n nc d e s .!!.!! '' ! 1 ] .! . ] 3 7 1 1 5 7 8 5 4 . . . . . 3 0 7 6 0 5 1 1 1 4 9 4 2 8 . . 9 . . . 9 5 3 2 3 7 1 1 4 5 5 6 7 . . . . . 9 7 1 9 3 1 5 1 4 1 1 5 0 4 1 . . . . . 4 5 3 6 15 6 4 1 1 0 9 8 5 6 . . . 2 . . 7 7 8 0 15 2 8 3 1 9 4 5 5 4 .1 . . . . 3 2 2 3 11 5 4 1 2 3 5 1 2 . . 2 . . . 2 5 2 4 11 4 3 1 0 9 8 7 5 . . 6 . . . 4 5 0 7 13 4 5 1 1 0 8 4 7 0 . 5 . . . 4 2 6 17 4 8 2 1 0 8 1 2 7 . . . 1 . 9 4 0 1 1 8 4 2 1 0 6 9 1 1 4 .2 . . . . 1 7 3 2 13 6 2 2 1 2 9 1 6 4 .1 . . . . 9 2 4 5 2 2 2 1 2 2 1 9 3 0 2 2 24 6 5 Sou C P rc r r e i e s v d a i t t o e f m d fu a o n r m d k s e e t s t b ic o r d r e o p w o i s n it g s ... . . .! .. ! . . . .! .! ! ! ! 4 75 8 5 . . . 3 5 9 5 1 4 2 9 . . . 9 6 1 6 7 - 4 3 . . 4 . 9 2 11 9 1 9 0 . . 2 8 15 9 2 0 7 0 . . 2 . 2 15 2 8 9 8 6 .1 . . 8 8 1 1 1 0 2 2 7 . . 2 . 6 7 11 7 1 0 3 5 .6 . . 9 9 13 9 1 0 7 6 . . 5 . 9 4 17 9 2 0 7 4 .1 . . 9 0 1 1 8 3 0 6 4 4 . . 2 . 4 13 6 2 2 8 3 .1 . . 9 2 2 2 2 6 5 4 2 2 2 3 3 7 8 9 0 1 Ot I T F O h n e r o t s r e r h u a e e s r s i r o a g u , u n n r n r y c e f c e u t e b a s n a n d la d s n p ce e s n sion reserves .! ! . ! ! ! ! ! ! ! ! ! ! ! . ! 2 1 - 2 7 1 1 .2 . . . . 6 2 0 4 3 1 1 9 3 3 0 . . . . 3 5 3 4 * - 1 1 8 2 4 3 2 . . . 5 . . 5 9 1 1 - 1 3 9 2 2 1 . . . . 2 . 6 7 2 3 3 1 1 5 2 5 1 . . . . . 1 1 7 2 3 - 4 1 1 1 3 5 9 9 . . . 0 . . 5 7 8 0 - - 7 7 2 1 . . 8 . . 2 . 7 2 9 2 1 0 5 3 1 . . . . . 3 2 8 5 - 1 3 5 8 5 6 . . . . 6 . 5 4 9 2 4 2 1 4 8 4 5 4 . . . . . 7 2 3 1 - 4 2 1 1 7 5 6 6 . . . . 4 . 1 5 2 7 4 2 1 - 6 0 1 3 .6 . . . . 0 3 1 2 2 3 2 2 3 7 1 9 8 0 Private domestic nonfinancial investors 3 3 3 3 3 3 7 2 5 6 3 4 Di o C r S C U e t t o o . a c h S m r t t e . e p r m l o G e a r n e n o a r d d v t c i e e n i l a r g o a l n c n m i p a n d l a e p c f n o r o e t b e r r l d s e i e g i i t g c a u n t m i r o b i a t n o i r s e n k s d e s t s !.!!!!!!!! '. ! .. ! " ! . ! ! 2 - 2 8 4 5 0 .2 . . . . . 1 7 8 0 3 4 1 1 7 2 8 5 6 0 . . . . . . 4 7 0 0 8 2 - - - - 1 8 4 1 2 0 1 . . . . . 3 4 4 . 4 - - 1 - 4 3 8 1 . * . 6 . 2 . 0 . 3 2 1 4 2 4 3 5 . . . . . . 1 1 9 7 6 4 3 1 - 4 8 3 1 9 .2 . . . . . 4 7 8 6 2 - - - - 2 2 7 2 3 2 8 . . . . 3 . 7 . 5 4 3 6 - 1 3 2 2 6 7 5 . . . 5 . . . 6 3 7 0 2 - - 3 8 4 6 . . 4 . . . 3 . 3 7 5 9 2 1 3 2 5 1 . . . . 4 5 2 5 1 1 - 2 5 3 .6 . . . . . 7 3 4 7 0 2 5 1 2 6 6 2 7 . . . . . . 1 3 4 0 1 1 3 3 3 3 3 3 3 5 7 2 6 4 4 4 3 4 3 0 2 9 1 8 De T p i o m L A O s a t i e t t r h s s g a e a e n r a v d n i n a n d e t s g g a s c c o v u o t i i m r n n ia r s g m e b t s n i l e t e c a u r y c c t C c i i o a o D n l u ' s S n b t a s n ks ....!...... 4 3 1 1 3 8 3 2 7 . . . . . 5 3 9 5 9 - - 1 2 3 5 8 3 . . . . 3 . 7 4 0 4 2 5 6 1 1 6 4 6 6 5 . . . . . 1 2 9 6 0 9 4 3 8 7 0 4 2 1 . . . . . 7 6 9 2 2 1 4 8 3 0 8 6 5 1 2 . . . . . 7 7 0 0 2 2 9 2 7 1 9 8 0 6 8 . . . . . 6 9 4 6 9 1 9 4 4 1 3 2 5 4 0 . . . . . 4 6 3 0 6 2 6 7 3 1 1 9 5 7 2 . . . . . 9 8 9 9 0 1 4 3 8 0 7 2 8 8 3 . . . . . 8 1 9 8 3 1 4 2 8 0 1 4 3 5 2 1 . . . 1 2 6 1 9 3 2 3 1 9 4 7 7 0 . . . . . 1 9 0 2 8 2 7 5 1 1 5 0 4 9 0 . . . . . 2 7 4 0 5 4 4 4 3 3 1 0 2 9 8 4 4 4 3 4 5 Mo D C n e u e m r y r a e n n d cy deposits ..!.!!..!! . ! ! ! ! . ! . ! ! . ! . ! ! 1 1 2 2 4 . . . 4 5 1 7 2 4 . . . 7 8 1 7 3 0 . . . 1 5 5 1 9 3 3 . . . 6 4 0 1 1 4 2 6 . . . 4 5 1 9 3 3 . . . 9 8 7 1 1 2 5 7 . . . 8 1 9 4 8 3 . . . 1 9 1 9 5 4 . . . 1 5 5 1 1 3 5 8 . . . 4 3 7 1 6 5 1 . . 0 7 1 1 1 4 5 . . . 5 7 2 4 4 4 5 4 3 46 Total of credit market instr., deposits, and currency 68.7 50.5 64.2 90.0 117.7 124.4 87.1 111.7 123.8 126.5 122.4 46 44 4 87 9 PP T ru o ib t v a la l i cte f o sfu r i e np i ap g no n cr it f a u lr n ai d nte s t e(rinm epdeira ctieonnt )( in per cent).. 8 1 2 6 2 . . . 9 4 7 6 1 9 7 8 . . . 1 9 0 1 3 0 1 0 2 . . . 8 2 8 1 2 3 1 3 0 3 . . . 2 6 7 1 1 1 0 3 0 3 . . . 5 3 8 9 1 6 7 8 . . . 9 3 4 1 2 3 3 0 1 0 . . . 1 3 2 1 2 3 0 6 0 0 . . . 3 7 1 1 1 0 1 4 6 . . . 6 6 6 1 1 0 7 5 0 . . . 9 3 9 1 2 1 1 2 6 1 . . . 1 7 2 - 8 1 2 2 4 . . 2 . 1 0 4 4 4 9 8 7 Corporate equities not included above 5 2 4 3 1 A O To c t O M h q ta e u t u l r h i t s e n n u i r e t e a i t t e l o q i n p f s u u s s u i u n r t b e i d c e y s h s s a h f s i a e n s r a e n s c ial institutions - 1 - 5 5 5 0 . . 7 . 8 . . 8 1 8 - 1 2 4 4 9 2 . . 7 . . . 7 8 5 2 - 1 1 2 6 9 1 . . 9 . . . 9 6 5 4 - 1 1 1 4 9 3 1 4 .6 . . . . 5 2 2 7 - 1 1 1 3 - 5 2 2 . . 6 6 . . . 6 6 0 - -1 3 9 6 7 . . . . . 4 0 7 3 3 -1 2 1 1 0 3 2 3 . . . . . 4 4 7 3 0 1 1 1 2 1 5 4 6 . . . . . 3 0 2 3 1 -5 1 1 1 - 7 2 3 . . . 8 . 6 3 4 - 1 1 1 2 - 3 1 2 . . 4 1 . . . 6 5 0 - - 1 6 1 7 5 2 . . 6 . 7 . . 4 8 3 - - 7 7 6 . . 3 3 . . . 1 1 8 4 5 2 3 1 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. 2. Sum of lines 3-6 or 7-10. 3 3 2 1 . . L M in a e in l 1 y 2 r l e e t s a s in li e n d e e 1 a 9 r n p i l n u g s s l i a n n e d 2 n 6. e t miscellaneous liabilities 6. Includes farm and commercial mortgages. 11. Credit market funds raised by Federally sponsored credit agencies. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 Included below in lines 13 and 33. Includes all GNMA-guaranteed includes mortgages. security issues backed by mortgage pools. 39+44. See line 25. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 45. Mainly an offset to line 9. Also sum of lines 27, 32, 39, and 44. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 17. Includes farm and commercial mortgages. 47. Line 2/line 1. 25. Lines 39 + 44. 48. Line 19/line 12. 26' Hne^8CS equity issues and investment company shares. Includes 49. Lines 10 plus 28. 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 • FEBRUARY 1974 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 LLiinnee CCrreeddiittss++,, ddeebbiittss —— 11997700 11997711 11997722 III IV I II IIIP Summary—Seasonally adjusted 1 2,176 -2,698 -6,912 -1,573 -1,745 -960 -244 714 2 41,964 42,768 48,769 12,362 13,213 15,320 16,778 18,153 3 Imports -39,788 -45,466 -55,681 -13,935 -14,958 -16,280 -17,022 -17,439 4 Military transactions, net -3,374 -2,918 -3,558 -846 -864 -825 -730 -576 5 Travel and transportation, net -2,013 -2,288 -2,853 -679 -730 -608 -703 -526 6 Investment income, net 2 6,260 7,972 7,863 1,950 2,232 2,309 2,111 2,311 7 U.S. direct investments abroad 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 U.S. Government grants (excluding military) -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 448844 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 Foreign securities -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 -6,657 -1,588 1,418 34 -5,988 -7,788 3,542 7 2,367 -3,842 1,923 690 35 Liquid claims 252 -1,097 -1,234 -410 -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 -87 52 38 Liquid liabilities -6,240 -6,691 4,776 417 2,498 -1,876 1,105 980 39 -6,508 -6,908 3,862 295 1,995 -1,896 710 866 40 To international and regional organizations 181 682 104 -32 181 12 31 -52 41 87 -465 810 154 322 8 364 166 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 99,,112200 -778 -1,654 44 Other readily marketable liabilities to foreign official agen- -810 -551 399 34 117 11,,220022 259 11 45 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt 553355 341 118899 7788 --116677 --4433 116677 -452 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 115533 --1155 -16 -13 8 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14) 22,,558866 3,153 44,,220000 11,,118899 994499 771166 833 521 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 ro fo m r e 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 e f d f U ro . m S. li i n n e c s o 9 rp a o n r d at e 2 d 1 ) affiliates of 443344 498 548 ! (6) (6) 1 (6) (6) <*) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 11997722 III IV I 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 -784 712 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 ^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 ] Imports 2 Trade balance 1970 1971 1972 1973r 1970 1971 1972 1973 1970 1971 1972 1973 ' Month: Jan... ,406 3,601 4,074 4,961 3,222 3,599 r4,436 5,265 184 2 r — 361 -304 Feb.. ,546 3,695 3,824 5,067 3,279 3,564 4,473 5,556 267 130 — 649 -489 Mar.. 375 3,790 3,869 5,379 3,219 3,628 4,515 5,437 156 160 — 647 -58 Apr.. 410 3,631 3,820 5,487 3,262 3,774 4,417 5,293 148 -143 -596 195 May. ;661 3,746 3,882 5,601 3,367 3,908 4,486 5,762 324 -161 -604 -161 June. 727 3,672 3,971 5,778 3,265 4,037 4,468 5,794 462 -365 -497 -16 July.. 704 3,573 4,074 5,874 3,254 3,832 4,565 5,762 450 -259 -491 111 Aug.. 591 3,667 4,197 6,014 3,346 3,913 4,726 6,021 245 -247 -530 -7 Sept.. ,553 4,487 4,176 6,448 3,423 4,179 4,612 5,575 130 308 -436 873 Oct.. ,688 2,669 4,316 6,432 3,498 3,469 4,738 5,904 190 -800 -421 527 Nov.. ,499 3,196 4,473 6,819 3,428 3,456 5,148 6,733 71 -260 -675 86 Dec.. ,569 3,881 4,558 6,927 3,401 4,169 5,002 5,985 168 -288 -444 942 Quarter: I 10,327 11,086 11,767 15,407 9,720 10,792 13,403 607 294 -1,657 -851 I I 10,798 11,049 11,673 16,866 9,864 11,719 13,370 933 -670 -1,697 19 II I 10,848 11,727 12,447 18,335 10,023 11,924 13,903 816 -197 -1,456 977 I V 10,756 9,746 13,347 20,178 10,327 11,094 14,888 425 -1,348 -1,540 ,555 Year3 42,659 43,549 49,208 70,799 39,952 45,563 55,555 69,121 2,707 -2,014 -6,347 ,678 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 • FEBRUARY 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 FFrraannccee --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333332222255555 --112299 ---444777333 -----------222222222222222222222255555555555 555550000000000 -----------11111111111 -------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 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 Canada 222222000000000000 111115555500000 5555500000 Latin American republics: Argentina ---333000 ------333333999999 -----11111 -----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^n -----5555566666 --111199 Lebanon --1111 -----1111111111 --ii -------99999995555555 ----33335555 Malaysia -------33333334444444 ----11110000 Philippines 2255 2200 ** --11 9999999 4400 --44 ----2222 -------55555550000000 -------88888881111111 111111 ---333000 Other --1133 --66 --1144 --1144 --2222 -------77777775555555 ---999 22--9911 333999 --33 TToottaall 111222 333 ---222444 ---888666 ---444444 ---333666666 444222 ---222111333 ---333888 --33 All other ---333666 ---777 ---111666 ---222222 333---111666666 333---666888 ---111 ---888111 ---666 TToottaall ffoorreeiiggnn ccoouunnttrriieess --339922 --3366 ----1111,,,,333322222222 ----666600008888 ----1111,,,,000033331111 ----1111,,,,111111118888 999955557777 ----666633331111 ----888844445555 ----3333 Intl Monetary Fund^ 5555----222222225555 111177777777 22222222 ----3333 11110000 ----111155556666 ----22222222 ----555544444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ----1111,,,,000000009999 ----1111,,,,111122221111 999966667777 ««««----777788887777 ----888866667777 ----555544447777 1 Includes purchase from Denmark of $25 million. repurchase; proceeds from these sales invested by IMF in U.S. Treasury 2 Includes purchase from Kuwait of $25 million. securities. IMF repurchased $400 million in Sept. 1970 and the remaining 3 Includes sales to Algeria of $150 million in 1967 and $50 million in $400 million in Feb. 1972. 1968. * Payment to the IMF of $259 million increase in U.S. gold subscription 4 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. U.S. payment of increases in its gold subscription to IMF, gold deposits 6 Includes the U.S. payment of $385 million increase in its gold subby the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The scription to the IMF and gold sold by the IMF to the United States in first withdrawal ($17 million) was made in June 1968 and the last with- mitigation of U.S. sales to other countries making gold payments to the drawal ($144 million) was made in Feb. 1972. IMF. The country data include U.S. gold sales to various countries in IMF sold to the United States a total of $800 million of gold ($200 connection with the IMF quota payments. Such U.S. sales to countries million in 1956, and $300 million in 1959 and in 1960) with the right of and resales to the United States by the IMF totaled $548 million each. NOTES TO TABLE 5 ON OPPOSITE PAGE: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in that the United States could purchase in foreign currencies automatically IMF operations. Does not include transactions in gold relating to gold if needed. Under appropriate conditions, the United States could purdeposit or gold investment (see Table 6). chase additional amounts equal to its quota. 2 Positive figures represent purchases from the IMF of currencies of 5 Includes $30 million of Special Drawing Rights. other members for equivalent amounts of dollars; negative figures repre- ^ Represents amount payable in dollars to the IMF to maintain the sent repurchase of dollars, including dollars derived from charges on value of IMF holdings of U.S. dollars. purchases and from other net dollar income of the IMF. The United States has a commitment to repurchase within 3 to 5 years, but only to NOTE—The initial U.S. quota in the IMF was $2,750 million. The U.S. the extent that the holdings of dollars of the IMF exceed 75 per cent of quota was increased to $4,125 million in 1959, to $5,160 million in Feb. the U.S. quota. Purchases of dollars by other countries reduce the U.S. 1966, to $6,700 million in Dec. 1970, and revalued to $7,274 million in commitment to repurchase by an equivalent amount. May 1972 and $8,083 million in Oct. 1973 as a result of changes in par 3 Includes dollars obtained by countries other than the United States value of the U.S. dollar. Under the Articles of Agreement subscription from sales of gold to the IMF. payments equal to the quota have been made 25 per cent in gold and 75 4 Represents the U.S. gold tranche position in the IMF (the U.S. per cent in dollars. quota minus the holdings of dollars of the IMF), which is the amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r o l To G ta o l2 l d st T oc r k ea i s ury v c fo u e C c r r r o i t e r e i n i e b s g - n l n e - p R I o e M s s i e t F r io 3 v n e SDR's4 E m n o d n t o h f To G ta o l2 l d st T oc r k ea i s ury 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 - p R I o e M s s i e t F r io v 3 n e SDR's4 I960.. 19,359 17,804 17,767 1,555 1973 1961.. 18,753 16,947 16,889 116 1,690 Jan... 13,054 10,487 10,410 140 469 1,958 1962.. 17,220 16,057 15,978 99 1,064 Feb... 12.926 10,487 10,410 473 1,958 1963.. 16,843 15,596 15,513 212 1,035 Mar. . 12,931 10,487 10,410 478 1,958 1964.. 16,672 15,471 15,388 432 769 Apr... 12,904 10,487 10,410 460 1,949 May.. 12,916 10,487 10,410 16 464 1,949 1965.. 15,450 613,806 613,733 781 6 863 June. . 12,914 10,487 10,410 470 1,949 1966.. 14,882 13,235 13,159 1 ,321 326 July. . 12,918 10,487 10,410 474 1,949 1967.. 14,830 12,065 11,982 2,345 420 Aug... 12,923 10,487 10,410 479 1,949 1968.. 15,710 10,892 10,367 3,528 1,290 Sept... 12.927 10,487 10,410 483 1,949 1969.. 7 16,964 11,859 10,367 72,781 2,324 Oct.. . 1014,367 011,652 1011,567 10541 102,166 Nov... 14,373 11,652 11,567 547 2,166 1970.. 14,487 11,072 10,732 629 1,935 851 Dec.. 14,378 11,652 11,567 552 2,166 1971 . . 812,167 10,206 10,132 8 276 585 1,100 19729. 13,151 10,487 10,410 241 465 1,958 1974 1973... 14,378 11,652 11,567 552 2,166 Jan.. . 14,565 11,652 11,567 59 688 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. i° 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; of which, $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 total gold stock is $1,165 million (Treas. gold stock $1,157 million), million on Jan. 1, 1972; plus net transactions in SDRs. reserve position in IMF $54 million, and SDR's $217 million. 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 23 for gold held under earmark at F.R. Banks for subscription to the IMF in June 1965 for a U.S. quota increase which foreign and international accounts. Gold under earmark is not included became effective on Feb. 23, 1966. In figures published by the IMF from in the gold stock of the United States. June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IIMMFF hhoollddiinnggss (during period) ooff ddoollllaarrss ((eenndd ooff ppeerriioodd)) UU..SS.. ttrraannssaaccttiioonnss wwiitthh IIMMFF TTTrrraaannnsssaaaccctttiiiooonnnsss bbbyyy rrrrreeeee UUUUU ssssseeeee .....SSSSS rrrrrvvvvv ..... eeeee PPPPPeeeeerrrrriiiiioooooddddd ooottthhh www eeerrr iiittt hhh ccc ooo III uuu MMM nnnttt FFF rrr iiieeesss ppppp iiiiinnnnn ooooo sssssiiiii IIIII ttttt MMMMM iiiiiooooo FFFFF nnnnn PP ss tt uu aa dd ii bb oo yy oo nn ss mm ll oo ll cc ss ff aa ee rr rr nn ii ii ss pp nn tt -- ss bbyy ss gg NN II aa oo MM ll ee ll ee dd tt FF ss ii TT tt cc ff ii rr cc oo uu oo aa ii rr rr nn ee nn ee rr ss ss ii ss ee gg aa nn 22 ii nn nn cc -- -- II ii dd MM nn oo cc FF ll ii oo nn ll aa mm nn rr ee ee ss tt P d u o r l c o l h a f 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 cccc TTTT hhhhaaaa oooo nnnn ttttaaaa gggg llll eeee AAAmmmooouuunnnttt PPP qqq eee UUU rrr uuu ooo ... ooo fff ccc SSS ttt eee ... aaa nnn ttt ppppp ((((( eeeee eeeee rrrrr nnnnn iiiii ddddd ooooo ddddd ooooo ))))) fffff 44444 1946—1957 2222,,,,000066663333 666000000 ----------------------44444444444444444444445555555555555555555555 -------2222222,,,,,,,666666677777770000000 888888822222227777777 777777777777777777777777777777777777777777775555555555555555555555 777777777777777777777777777777777777777777775555555555555555555555 222222222222222222222888888888888888888888 111111111111111111111,,,,,,,,,,,,,,,,,,,,,999999999999999999999777777777777777777777555555555555555555555 1958—1963 1111,,,,000033331111 111555000 66666666666666666666660000000000000000000000 -------1111111,,,,,,,666666666666666666666 2222222,,,,,,,777777744444440000000 2222222222222222222222,,,,,,,,,,,,,,,,,,,,,,333333333333333333333311111111111111111111115555555555555555555555 3333333333333333333333,,,,,,,,,,,,,,,,,,,,,,000000000000000000000099999999999999999999990000000000000000000000 777777777777777777777555555555555555555555 111111111111111111111,,,,,,,,,,,,,,,,,,,,,000000000000000000000333333333333333333333555555555555555555555 1964—1966 777777776666 111111,,,,,,666666444444000000 44444444444444444444445555555555555555555555 -------777777722222223333333 6666666 1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,777777777777777777777744444444444444444444444444444444444444444444 4444444444444444444444,,,,,,,,,,,,,,,,,,,,,,888888888888888888888833333333333333333333334444444444444444444444 999999999999999999999444444444444444444444 333333333333333333333222222222222222222222666666666666666666666 1967—1969 22222222 ------888888444444 55555555555555555555559999999999999999999999 -------2222222,,,,,,,222222266666663333333 222222266666668888888 ----------------------1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999998888888888888888888888 2222222222222222222222,,,,,,,,,,,,,,,,,,,,,,888888888888888888888833333333333333333333336666666666666666666666 555555555555555555555555555555555555555555 222222222222222222222,,,,,,,,,,,,,,,,,,,,,333333333333333333333222222222222222222222444444444444444444444 1970 11,,115555 5555777711112222**** 111111555555000000 22222222222222222222225555555555555555555555 -------888888855555554444444 777777744444441111111 1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,999999999999999999999922222222222222222222229999999999999999999999 4444444444444444444444,,,,,,,,,,,,,,,,,,,,,,777777777777777777777766666666666666666666665555555555555555555555 777777777777777777777111111111111111111111 111111111111111111111,,,,,,,,,,,,,,,,,,,,,999999999999999999999333333333333333333333555555555555555555555 1971 111111,,,,,,333333666666222222 ----------------------22222222222222222222228888888888888888888888 -------22222224444444 44444440000000 1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,333333333333333333333355555555555555555555550000000000000000000000 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111115555555555555555555555 999999999999999999999111111111111111111111 555555555555555555555888888888888888888888555555555555555555555 1972 666 555444111 222222000000000000 ----------------------44444444444444444444447777777777777777777777 666666666666666666666699999999999999999999994444444444444444444444 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888811111111111111111111110000000000000000000000 999999999999999999999444444444444444444444 444444444444444444444666666666666666666666555555555555555555555 1973 666 777555444 ----------------------33333333333333333333333333333333333333333333 777777777777777777777722222222222222222222221111111111111111111111 7777777777777777777777,,,,,,,,,,,,,,,,,,,,,,555555555555555555555533333333333333333333331111111111111111111111 999999999999999999999333333333333333333333 555555555555555555555555555555555555555555222222222222222222222 1973—jan ----------------------4444444444444444444444 ----------------------4444444444444444444444 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888800000000000000000000006666666666666666666666 999999999999999999999444444444444444444444 444444444444444444444666666666666666666666999999999999999999999 Feb ----------------------5555555555555555555555 ----------------------5555555555555555555555 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888800000000000000000000001111111111111111111111 999999999999999999999333333333333333333333 444444444444444444444777777777777777777777333333333333333333333 Mar ----------------------5555555555555555555555 ----------------------5555555555555555555555 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,777777777777777777777799999999999999999999996666666666666666666666 999999999999999999999333333333333333333333 444444444444444444444777777777777777777777888888888888888888888 Apr 11111111111111111111118888888888888888888888 11111111111111111111118888888888888888888888 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888811111111111111111111114444444444444444444444 999999999999999999999444444444444444444444 444444444444444444444666666666666666666666000000000000000000000 May ----------------------4444444444444444444444 ----------------------4444444444444444444444 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888811111111111111111111110000000000000000000000 999999999999999999999444444444444444444444 444444444444444444444666666666666666666666444444444444444444444 June ----------------------6666666666666666666666 ----------------------6666666666666666666666 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888800000000000000000000004444444444444444444444 999999999999999999999444444444444444444444 444444444444444444444777777777777777777777000000000000000000000 July ----------------------4444444444444444444444 ----------------------4444444444444444444444 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,888888888888888888888800000000000000000000000000000000000000000000 999999999999999999999333333333333333333333 444444444444444444444777777777777777777777444444444444444444444 Aug ----------------------5555555555555555555555 ----------------------5555555555555555555555 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,777777777777777777777799999999999999999999995555555555555555555555 999999999999999999999333333333333333333333 444444444444444444444777777777777777777777999999999999999999999 Sept ----------------------4444444444444444444444 ----------------------4444444444444444444444 6666666666666666666666,,,,,,,,,,,,,,,,,,,,,,777777777777777777777799999999999999999999991111111111111111111111 999999999999999999999333333333333333333333 444444444444444444444888888888888888888888333333333333333333333 Oct 66 775544 ----------------------4444444444444444444444 777777777777777777777755555555555555555555550000000000000000000000 7777777777777777777777,,,,,,,,,,,,,,,,,,,,,,555555555555555555555544444444444444444444441111111111111111111111 999999999999999999999333333333333333333333 555555555555555555555444444444444444444444111111111111111111111 Nov ----------------------5555555555555555555555 ----------------------5555555555555555555555 7777777777777777777777,,,,,,,,,,,,,,,,,,,,,,555555555555555555555533333333333333333333336666666666666666666666 999999999999999999999333333333333333333333 555555555555555555555444444444444444444444777777777777777777777 Dec ----------------------5555555555555555555555 ----------------------5555555555555555555555 7777777777777777777777,,,,,,,,,,,,,,,,,,,,,,555555555555555555555533333333333333333333331111111111111111111111 999999999999999999999333333333333333333333 555555555555555555555555555555555555555555222222222222222222222 1974—Jan --113333 ----------------------4444444444444444444444 ----------------------111111111111111111111133333333333333333333337777777777777777777777 7777777777777777777777,,,,,,,,,,,,,,,,,,,,,,333333333333333333333399999999999999999999994444444444444444444444 QQQQQQQQQQQQQQQQQQQQQ111111111111111111111 1 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. • FEBRUARY 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 liabili- other foreigners ties to Liquid Total a a c t f I r r g t r M i a i o s o o n l i m F n d n s s g - i Total t p l S b i i t o e h a a e b s i r b o r n n y t m r i k r e l t e i d s - - - M n T b U o a a o a r t r b n e n . 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 a n r r t o n n e t . a m n S i a d b d b - . a s s l l . e r e - N n v k T b o o n e e U o a n r n r o t n e n t . a m c t S i a d b e d o b . a s s s l n l . e 4 r e - - m r l O i e t a a a a i t r b b e h d k l s i e i e l 5 e l i r y t - - a t m L l o b b i i a e r a t q c r i b o n e o u c i a s k l i m i d i a d s - l - 6 Total t p l S b i i t o a e h a e b i s r b o r n n y t m i r k r e l t e i d s - - - n M T b o U a a o a r t b r e n n e .S k a l d s d e . 3 s e s . , t 7 - U.S. notes U.S. 24,268 800 12.914 11,963 751 200 5,346 3,013 2,565 J26,433 800 14,459 12,467 1,217 703 9 5,817 3,397 3,046 \26,394 800 14,425 12,467 1,183 703 9 5,817 3,387 3,046 /29,313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 \29,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 29,569 834 15,826 13,066 1,105 1,201 120 7,419 4,059 3,587 J31,145 1,011 14,841 12,484 860 256 328 913 10,116 4.271 3.743 \31,020 1,011 14,896 12,539 860 256 328 913 9,936 4.272 3.744 /35,819 1,033 18,201 14,034 908 711 741 1,807 11,209 4,685 4,127 \35,667 1,033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 f38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 \38,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 »o/45,755 1,019 ioi5,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3.939 \45,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 J47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 J67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 \67,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 82,883 61,520 39,994 5,236 12,108 3,639 543 14,785 4,952 4,527 82,048 60,796 38,534 5,798 12,110 3,780 574 14,767 4,892 4,467 87,854 68,475 45,413 6,377 12,110 3.627 948 12,791 4,968 4,596 1290,884 1271,331 46,924 6,917 1212,128 3,617 1,745 12,955 4,960 4,584 1390,580 70,748 45,949 6,934 12,245 3,631 1,989 13,052 5,149 4,750 92,085 70.915 46,112 6,934 12,245 3.628 1,996 14,274 5,147 4,763 92,185 70,693 45,705 6,934 12,245 3,805 2,004 14,500 5,323 4.940 93,212 71,019 46,129 6,934 12,245 3,705 2,006 15,420 5,257 4,883 92,569 70,513 45,714 6,906 12,319 3,555 2,019 15,204 5,322 4,987 92,072 69,775 45,172 6,914 12,319 3,355 2,015 15,199 5,479 5,132 93,171 69,701 45,211 6,929 12,319 3.233 2,009 16,131 5,519 5,145 92,559 67,367 43,756 6,207 12,319 3.234 1,851 17,496 5,689 5,279 92,588 66,790 43,914 5,686 12,319 3,210 1,661 17,645 6,153 5,723 1 Includes (a) liability on gold deposited by the IMF to mitigate the 11 Data on the second line differ from those on first line because cerimpact on the U.S. gold stock of foreign purchases for gold subscriptions tain accounts previously classified as "official institutions" are included to the IMF under quota increases, and (b) U.S. Treasury obligations at with "banks"; a number of reporting banks are included in the series for cost value and funds awaiting investment obtained from proceeds of sales the first time; and U.S. Treasury securities payable in foreign currencies of gold by the IMF to the United States to acquire income-earning assets. issued to official institutions of foreign countries have been increased in 2 Includes BIS and European Fund. value to reflect market exchange rates as of Dec. 31, 1971. 3 Derived by applying reported transactions to benchmark data; 12 Includes $15 million increase in dollar value of foreign currency breakdown of transactions by type of holder estimated 1962-63. liabilities revalued to reflect market exchange rates. 4 Excludes notes issued to foreign official nonreserve agencies. 13 Includes $147 million increase in dollar value of foreign currency 5 Includes long-term liabilities reported by banks in the United States liabilities to official institutions of foreign countries revalued to reflect and debt securities of U.S. Federally-sponsored agencies and U.S. cor- market exchange rates as follows: short-term liabilities, $15 million; nonporations. marketable convertible U.S. Treasury bonds and notes, $113 million; and 6 Includes short-term liabilities payable in dollars to commercial banks nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million. abroad and short-term liabilities payable in foreign currencies to commercial banks abfoad and to "other foreigners." NOTE.—Based on Treasury Dept. data and on data reported to the 7 Includes marketable U.S. Treasury bonds and notes held by commer- Treasury Dept. by banks and brokers in the United States. Data correspond cial banks abroad. generally to statistics following in this section, except for the exclusion 8 Principally the International Bank for Reconstruction and Develop- of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign ment and the Inter-American and Asian Development Banks. 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. liabilities resulting from revaluation of the German mark in Oct. 1969 as follows: liquid, $17 million, and other, $84 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 \17,340 8,062 1,866 1,865 4,997 248 302 1969 3 J4 15,975 4 7,074 1,624 1,888 4,552 546 291 I4 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3 /23,786 13,620 2,951 1,681 4,713 407 414 123,775 13,615 2,951 1,681 4,708 407 413 1971 5 /51,209 30,010 3,980 1,414 14,519 415 871 \50,651 30,134 3,980 1,429 13,823 415 870 1972—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.*... . 67,367 46,003 3,820 2,212 11,475 771 3,086 Dec P 66,790 45,713 3,838 2,546 10,881 788 3,024 1 Includes Bank for International Settlements and European Fund. 6 Includes $15 million increase in dollar value of foreign currency 2 Includes countries in Oceania and Eastern Europe, and Western Euro- liabilities revalued to reflect market exchange rates. pean dependencies in Latin America. 7 Includes $147 million increase in dollar value of foreign currency 3 See note 9 to Table 6. liabilities revalued to reflect market exchange rates. 4 Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. NOTE.—Data represent short- and long-term liabilities to the official 5 Data on second line differ from those on the first line because certain institutions of foreign countries, as reported by banks in the United States; accounts previously classified as "Official institutions" are included in foreign official holdings of marketable and nonmarketable U.S. Treasury "Banks"; a number of reporting banks are included in the series for securities with an original maturity of more than 1 year, except for nonthe first time; and U.S. Treasury liabilities payable in foreign currencies marketable notes issued to foreign official nonreserve agencies; and into official institutions of foreign countries have been increased in value by vestments by foreign official reserve agencies in debt securities of U.S. $110 million to reflect market exchange rates as of Dec. 31, 1971. Federally-sponsored agencies and U.S. corporations. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners To nonmonetary international and regional organizations 6 Payable in dollars Dep osits IMF Total i Total Dem D an e d p os T its i me2 b T i c r c l e U l e a s r a t . t e S s i a u s f . 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 i b - g e l n s e in m g v o e e n s ld t t - 5 Total Demand Time2 b T i c r l c e U l e s a r a . t t S s i e a u f . s i n r - d y s l O t i h e a t o r 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 69 159 211 381 141,761 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 60,719 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 69,234 68,638 11,419 7,015 31,866 18,338 597 1,952 101 84 296 1,470 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. • FEBRUARY 1974 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions!o 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 ime2 T bi c r c l U e e a ls r a t . t e S s a i s u . f n i r 3 - d y s O t l h i e t a o r h b r m e t .4 r - 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 /40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 /53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 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 7,492 478 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 67,282 11,318 6,930 31,570 16,867 597 43,914 2,119 3,916 31,491 6,261 To banksii To other foreigners Payable in dollars Total Total Dema D nd ep osi T ts i me2 T b c i r c l e U e l a r s a . t t s S e i a u f . s n i r - d y s O l t h i e a t o r h b r m e . t 4 r - Total Deposi T ts i me2 T b c r i c l e U e l a r s a . t t s S e i a u f . s n i r - d y s O l t h i e a t o r h b r m e . t 4 r - 27,709 23,419 16,756 1,999 4,644 4,064 1,711 1,935 107 J21,166 16,917 12,376 1,326 3,202 4,029 1,688 1,886 131 \21,208 16,949 12,385 1,354 3,197 4,039 1,688 1,895 131 /13,953 10,034 7,047 850 2,130 3,691 1,660 1,663 96 114,643 10,721 3,399 320 6,995 3,694 1,660 1,666 96 19,312 14,460 4,659 525 9,270 4,527 1,954 2,026 65 19,234 14,413 4,155 415 9,835 4,467 1,773 2,070 69 17,387 12,449 4,084 483 7,877 4,596 1,813 2.127 83 17,539 12,579 4,144 518 7,912 4,584 1,805 2.128 63 17,803 12,654 4,335 514 7,799 4,751 1,951 2,113 75 19,037 13,889 4,645 535 8,701 4,764 1,859 2,116 73 19,440 14,042 5,053 404 8,577 4,941 1,965 2,174 70 20,303 15,003 4,957 432 9,605 4,883 1,890 2,144 72 20,191 14,720 4,806 491 9,413 4,987 1,876 2,183 68 20,331 14,666 5,071 603 8,983 5,132 1,972 2,201 77 21,276 15.681 5,251 651 9,772 5,145 1,977 2,179 76 22,775 17,016 5,761 693 10,554 5,279 2,007 2,289 67 23,367 17,176 6,967 527 9,670 5,722 2.232 2,487 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 ih&jtease in foreign currency liabilities revalued time certificates of deposit. See also note 8(a). to reflect market exchange rates. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of I °Foreign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac- II Excludes central banks, which are included in "Official institutions." quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop- NOTE.—"Short term" refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the "holdings of dollars" IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti- 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop- 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 Mar. Apr. May June July Aug. Sept. Oct. Nov-* Dec. Europe: Austria. 272 281 292 301 297 305 302 292 204 172 Belgium-Luxembourg 1,092 1,253 1,245 1,373 1,376 1.456 1,378 1,377 1,410 1,457 Denmark 284 400 406 502 489 477 437 409 470 527 Finland. 163 142 168 244 194 165 153 145 135 135 France 4,441 5,000 5,167 5,327 5,406 5,452 5,246 5,296 4,143 3,416 Germany 5,346 12,990 12,701 12,161 12,003 12,837 12,912 13,236 14,180 14,227 Greece 238 223 175 219 219 240 236 215 280 236 Italy. 1,338 968 1,020 1,171 1,072 870 1,506 1,140 1,095 1,224 Netherlands 1,468 2,532 2,543 2,427 2,369 2,029 1,945 2,022 2,534 2,866 Norway 978 1,018 1,035 1,046 1,049 1,082 1,055 1,024 999 980 Portugal 416 518 502 511 500 477 472 459 467 470 Spain 256 256 250 325 334 282 237 259 284 319 Sweden 1,184 1,483 1,682 1,787 1,905 1,951 1,871 1,835 1,787 1,807 Switzerland 2,857 2,901 2,959 3,272 3,268 3,310 3,226 3,309 3,316 3,081 Turkey. 97 105 118 71 75 102 115 72 83 82 United Kingdom 5,011 4,657 4,741 5,899 6,317 6.457 5,943 5,593 6,416 6,487 Yugoslavia 117 58 69 73 66 66 57 58 61 76 Other Western Europe! 1,483 1,619 1,772 2,164 2,360 2,965 3,015 3,099 3,427 2,930 O U t .S h . e S r .R E astern Europe 8 1 1 1 7 1 1 4 71 8 66 9 7 1 4 1 8 1 1 8 9 1 0 7 11 1 4 6 4 9 0 6 1 2 0 0 1 Total 27,134 36,488 36,924 38,949 39,383 40,621 40,212 39,970 41,425 40,611 Canada 3,467 3,293 3,600 3,796 3,327 3,392 3,786 3,721 3,812 3,967 Latin America: C C C P O B M V N O A B P U a e a r h u o e e r t t r e r h h n a n h g t l i b u x u h o l z e e e a e a a e g i r i r m e n z m m c l u r u t o L L a b a i l a e n a y i a s a l a a n a t t i 2 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 1,0 6 2 5 6 2 8 8 1 1 1 7 3 4 2 3 0 3 1 6 8 3 6 4 7 1 4 5 1 5 9 0 6 7 7 0 0 6 2 9 2 6 7 8 6 1 1 1 1 1 4 7 0 8 1 8 0 7 7 4 8 7 3 8 1 0 8 6 7 4 6 1 3 6 4 2 2 1,0 7 2 2 6 8 8 1 1 1 1 1 4 0 2 4 1 5 9 7 6 9 6 4 4 4 3 8 3 8 3 4 2 7 7 7 8 0 3 9 7 7 2 2 5 7 8 1 1 1 1 7 6 1 3 6 6 4 0 6 3 9 7 5 8 7 9 0 8 9 3 2 4 7 7 2 0 0 1,0 7 4 7 7 2 9 6 1 1 1 1 5 8 2 4 2 6 7 0 6 8 4 8 8 1 4 3 7 8 5 2 0 8 0 0 6 0 0 0 ,0 7 4 7 7 9 9 2 1 1 1 1 6 0 4 1 7 5 2 9 0 9 3 9 2 6 8 4 9 8 0 0 6 0 7 0 4 4 8 1,0 4 7 7 9 2 8 5 1 1 1 1 7 9 0 7 1 6 6 3 0 7 6 2 2 8 1 2 5 7 3 1 2 7 7 8 6 0 6 1,0 4 9 8 2 7 5 7 1 1 1 1 6 4 4 9 8 0 9 6 0 7 2 6 1 1 4 1 1 9 4 4 5 0 7 8 7 7 4 1 1 , ,0 1 4 2 2 7 7 7 5 1 1 1 2 3 5 3 0 7 4 4 3 7 3 5 1 9 0 6 1 7 9 5 2 2 0 7 7 2 5 1 1 , , 1 4 8 2 2 7 8 7 5 1 1 1 3 2 2 0 6 8 3 1 5 6 4 2 1 2 0 1 4 9 2 4 6 6 3 6 2 4 2 Total 5,558 5,197 5,478 5,796 6,323 6,532 6,224 6,283 6,332 7,181 Asia: China, People's Rep. of (China Mainland 39 49 43 44 41 38 43 40 37 42 China, Republic of (Taiwan) 675 816 831 832 846 790 8i0 802 779 764 Hong Kong 318 337 330 368 341 289 356 349 363 383 India 98 114 125 145 110 141 103 99 105 71 Indonesia 108 89 90 117 155 i76 140 254 169 160 Israel 177 137 144 142 161 159 146 173 279 330 Japan 15,843 12,344 10,415 9,056 8,458 8,126 8,003 7,680 7,061 6,726 Korea 192 227 214 231 226 219 217 213 198 210 Philippines 438 513 520 575 544 545 541 482 479 497 Thailand 171 170 166 177 175 146 140 143 163 180 Other 1,071 869 940 873 883 958 1,139 1,165 1,139 1,138 Total 19,131 15,665 13,818 12,560 ,940 11,588 11,640 11,401 10,771 10,501 Africa: Egypt.. 24 17 33 67 29 29 41 34 34 63 S M o o u r th o c A co f rica 11 1 5 2 12 1 5 3 12 9 5 12 8 0 15 1 5 1 16 1 9 5 10 1 0 0 13 1 2 1 10 1 3 0 10 1 9 4 Zaire 21 22 28 45 17 21 27 19 26 24 Other 768 739 798 786 904 803 683 765 747 822 Total. 939 917 992 1,025 1,118 1,037 862 962 919 1,032 Other countries: Australia 3,027 2,489 2,882 2,961 2,985 3,202 3,124 3,106 3.169 3,184 All other 51 54 57 60 71 61 57 62 59 55 Total 3,077 2,903 2,939 3,022 3,056 3,263 3,181 3,168 3,228 3,239 Total foreign countries 59,306 64,463 63,751 65,149 65,145 66,432 65,905 65,503 66,487 66,531 International and regional: International 3 952 980 983 ,132 1,149 1,097 1,123 ,183 1,402 1,609 Latin American regional 307 320 337 345 329 309 289 298 299 288 Other regional4 154 126 109 102 89 81 72 70 66 62 Total 1,412 1,426 ; 1,429 1,579 1,569 1,486 1,485 1,552 1,767 1,959 Grand total 60,719 65,889 | 65,180 66,729 66,714 67,919 67,389 67,056 68,254 68,490 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. • FEBRUARY 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 AArreeaa aanndd ccoouunnttrryy Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec Apr. Other Western Europe: Other Asia—Cont. : Cyprus 7 2 2 3 9 36 20 16 39 36 Iceland 10 11 9 9 12 2 3 3 2 3 Ireland, Rep. of 29 16 15 17 22 60 46 60 55 55 28 23 25 54 59 Other Latin American republics: 28 33 58 5599 9933 Bolivia 5599 55 5533 8877 65 Ryukyu Islands (incl. Okinawa) 6 39 29 53 Costa Rica 43 62 70 92 75 Saudi Arabia 41 79 80 344 236 Dominican Republic 90 123 91 114 104 Singapore 43 35 45 77 53 Ecuador 72 57 62 121 109 Sri Lanka (Ceylon) 4 4 6 5 6 El Salvador 80 78 83 76 86 3 4 6 4 3399 Guatemala 97 117 123 132 127 161 115599 118855 113355 9988 Haiti 19 18 23 27 25 Honduras 44 42 50 58 64 Jamaica 19 19 32 41 32 Other Africa: Nicaragua 47 50 66 61 79 13 23 31 32 51 Paraguay 15 17 17 22 26 Ethiopia (incl. Eritrea) 12 11 29 57 75 Trinidad & Tobago 14 10 15 20 17 6 8 11 10 28 13 9 14 23 19 Ot B B h e e r r r it m i L s u h a d t W i a n e A st m In er d i i c e a s : ( 3 2 8 ) ( 3 2 2 ) ( 2 2 3 ) ( 3 2 6 ) 1 12 0 7 0 9 2 2 1 5 1 27 4 2 4 6 3 2 2 9 5 5 6 6 39 8 3 3 5 0 ( (( 37 77 1 ) )) Southern Rhodesia 2 2 2 2 Other Asia: 1 1 5 3 3 B A B a u fg h r h m ra a a i n n i stan 3 1 5 3 5 2 1 1 1 9 0 1 1 5 7 8 2 2 4 5 2 ( ( 1 7 79 ) ) 1 6 5 0 9 6 3 1 6 7 0 1 1 7 0 1 1 1 1 6 9 1 Cambodia 2 5 2 3 3 1144 13 7 2288 (7) I I r ra a q n 6 7 7 5 1 9 0 88 9 9 1 3 0 1 ( 174 ) All other: Jordan 3 2 2 4 4 New Zealand 22 23 27 30 34 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in "Europe." 3 Data exclude "holdings of dollars" of the International Monetary 5 Represent a partial breakdown of the amounts shown in the "other" Fund but include IMF gold investment until Feb. 1972, when investment categories (except "Other Eastern Europe"). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To intl. End of period Total and Official Other Ger- United Other Total Other All regional Total institu- Banks1 foreign- many King- Europe Latin Japan Asia other tions ers dom America countries 196 9 2,490 889 ,601 1,505 56 40 46 7 239 655 582 70 197 0 1,703 789 914 695 165 53 110 42 26 152 385 137 62 197 1 902 446 457 144 257 56 164 52 30 111 3 87 9 1972—Dec.2, { f 1 l , , 0 0 1 00 8 5 5 8 6 0 2 4 4 3 3 9 9 9 9 3 3 2 2 5 5 9 9 8 8 7 7 1 1 6 6 5 5 6 6 3 3 3 3 2 2 1 1 3 3 6 6 3 3 2 2 1 1 0 0 1973—Jan... 1,044 617 427 74 257 96 165 61 30 127 30 13 Feb... 1,276 613 663 304 258 100 164 59 233 118 71 16 Mar.. 1,406 697 709 328 269 112 164 66 234 133 96 16 Apr.. . 1,399 686 713 329 274 111 164 68 239 128 98 16 May. . 1,379 688 691 313 274 104 164 68 231 115 96 16 June.. 1,467 769 697 311 274 113 164 68 233 125 94 10 July.. 1,527 770 757 311 305 141 164 68 265 145 93 19 D A O N Se e o u c p c v t g t . . . . . ? . ? . . . . 1 1 1 1 1 , , , , , 4 4 4 5 5 6 7 7 0 3 9 6 3 2 2 7 7 7 7 7 6 5 5 7 3 1 8 8 7 5 7 7 7 7 7 0 1 3 5 4 8 9 8 5 4 3 3 3 3 3 1 1 1 2 1 8 0 5 2 2 2 2 3 3 3 8 8 0 0 0 7 7 5 5 2 1 1 1 1 1 1 1 2 2 2 7 2 3 7 2 1 1 1 1 1 6 6 6 6 6 5 5 5 5 5 6 6 6 6 6 8 8 7 6 8 2 2 2 2 2 4 3 6 6 6 6 7 3 5 5 1 1 1 1 1 4 3 4 4 4 1 8 5 3 0 9 8 7 8 8 5 7 4 1 0 2 1 1 1 1 1 8 8 8 7 1 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

FEBRUARY 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 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.f Dec.f Europe: Belgium-Luxembourg 6 6 6 6 6 6 6 6 6 7 7 7 7 Sweden 85 110 135 135 135 135 135 135 135 165 165 165 235 45 45 44 43 44 43 43 42 37 37 37 38 34 United Kingdom 327 327 276 278 300 281 280 275 236 247 290 400 423 Other Western Europe 79 79 79 79 79 85 85 85 85 85 85 85 86 Eastern Europe 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 547 572 544 546 569 555 554 547 504 546 588 700 789 Canada 558 558 559 561 561 560 560 560 560 560 560 567 567 Latin America: Latin American republics 1 1 1 1 1 1 1 4 8 9 9 11 11 Other Latin America 6 6 6 6 6 6 6 3 3 3 3 3 3 Total 7 7 7 7 7 7 7 7 11 12 12 14 14 Asia: Japan. 4,380 4,867 5,421 5,961 5,978 5,978 5,977 5,977 5,949 55,,995500 55,,995500 5,143 4,552 Other Asia 10 10 10 10 10 10 10 9 9 1111 11 11 Total 4,391 4,877 5,431 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 5,154 4,563 Africa 133 183 183 183 183 183 183 183 183 158 158 158 158 All other 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 5,661 6,223 6,749 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 6,617 6,116 International and regional: International 186 186 176 186 176 142 72 1 1 21 6 1 1 Latin American regional 28 28 26 26 27 27 27 28 45 45 47 47 48 Total 214 214 202 212 202 169 100 29 46 66 53 48 49 Grand total 5,874 6,436 6,951 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 6,665 6,164 NOTE.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies EEnndd ooff ppeerriioodd TToottaall China, Total g B iu e m l- C a a d n a - ( R Ta ep iw . a o n f ) m G a e n r- y Italy i Korea T la h n a d i- Total m G an er y - 2 e S r w la it n z d - 1970 33333333333333333,,,,,,,,,,,,,,,,,555555555555555556666666666666666633333333333333333 22222222222222222,,,,,,,,,,,,,,,,,444444444444444448888888888888888800000000000000000 333333333222222222 22222222222222222,,,,,,,,,,,,,,,,,222222222222222228888888888888888899999999999999999 222222222000000000 222222222222222555555555555555 11115555 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,000000000000000008888888888888888833333333333333333 555555555555544444444444442222222222222 555555555555555554444444444444444411111111111111111 1971 3333333333333333399999999999999999,,,,,,,,,,,,,,,,,666666666666666665555555555555555577777777777777777 77777777777777777,,,,,,,,,,,,,,,,,888888888888888882222222222222222299999999999999999 333333333222222222 22222222222222222,,,,,,,,,,,,,,,,,666666666666666664444444444444444400000000000000000 222222222000000000 5555555555555555,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000 222222222222222222222222222222 11115555 111111111100000000000000000000 33333333333333333 11111111111111111,,,,,,,,,,,,,,,,,888888888888888882222222222222222277777777777777777 666666666666611111111111112222222222222 11111111111111111,,,,,,,,,,,,,,,,,222222222222222221111111111111111155555555555555555 1972 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888887777777777777777722222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 222222222000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,333333333333333311111111111111115555555555555555 222222222222222222222222222222 11115555 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555553333333333333333399999999999999999 333333333333300000000000006666666666666 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 1973—Jan 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111166666666666666666 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444447777777777777777744444444444444444 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 222222222000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,444444444444444477777777777777771111111111111111 222222222222222222222222222222 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555554444444444444444422222222222222222 333333333333300000000000006666666666666 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333366666666666666666 Feb 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888886666666666666666633333333333333333 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444447777777777777777744444444444444444 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 222222222000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,444444444444444477777777777777771111111111111111 222222222222222222222222222222 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888899999999999999999 111111111111155555555555553333333333333 11111111111111111,,,,,,,,,,,,,,,,,222222222222222223333333333333333366666666666666666 Mar 444444444444444441111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888887777777777777777700000000000000000 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444446666666666666666644444444444444444 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 111111111000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,444444444444444477777777777777771111111111111111 222222222222222222222222222222 111111111100000000000000000000 4444444444444444411111111111111111,,,,,,,,,,,,,,,,,444444444444444440000000000000000077777777777777777 111111111111155555555555553333333333333 11111111111111111,,,,,,,,,,,,,,,,,222222222222222225555555555555555544444444444444444 Apr 444444444444444441111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111155555555555555555 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444445555555555555555599999999999999999 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 555555555 11111111111111111111111111111111,,,,,,,,,,,,,,,,444444444444444477777777777777771111111111111111 222222222222222222222222222222 111111111100000000000000000000 4444444444444444411111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 May 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111122222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,444444444444444445555555555555555566666666666666666 222222222000000000 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 222222222 11111111111111111111111111111111,,,,,,,,,,,,,,,,444444444444444477777777777777771111111111111111 222222222222222222222222222222 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 June 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,111111111111111118888888888888888899999999999999999 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,666666666666666663333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 111111111100000000000000000000 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 July 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000008888888888888888899999999999999999 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,555555555555555553333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,888888888888888884444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,555555555555555555555555555555555566666666666666666 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333338888888888888888844444444444444444 Aug 1111111111111111166666666666666666,,,,,,,,,,,,,,,,,000000000000000001111111111111111155555555555555555 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,333333333333333338888888888888888833333333333333333 22222222222222222,,,,,,,,,,,,,,,,,666666666666666669999999999999999900000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,666666666666666663333333333333333311111111111111111 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555588888888888888888 Sept 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,888888888888888881111111111111111133333333333333333 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,111111111111111118888888888888888833333333333333333 22222222222222222,,,,,,,,,,,,,,,,,444444444444444449999999999999999900000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 11111111111111111,,,,,,,,,,,,,,,,,666666666666666663333333333333333311111111111111111 111111111111177777777777772222222222222 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555588888888888888888 Oct 1111111111111111155555555555555555.................666666666666666669999999999999999911111111111111111 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 11111111111111111.................444444444444444445555555555555555588888888888888888 11111111111111111.................444444444444444445555555555555555588888888888888888 Nov 1111111111111111155555555555555555.................666666666666666669999999999999999922222222222222222 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222223333333333333333333333333333333333 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 222222222222222222222222222222 11111111111111111.................444444444444444445555555555555555599999999999999999 11111111111111111.................444444444444444445555555555555555599999999999999999 Dec 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,666666666666666666666666666666666699999999999999999 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222221111111111111111100000000000000000 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555599999999999999999 11111111111111111,,,,,,,,,,,,,,,,,444444444444444445555555555555555599999999999999999 1974—Jan 1111111111111111155555555555555555,,,,,,,,,,,,,,,,,666666666666666667777777777777777711111111111111111 1111111111111111144444444444444444,,,,,,,,,,,,,,,,,222222222222222221111111111111111100000000000000000 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444400000000000000000 11111111111111111111111111111111,,,,,,,,,,,,,,,,666666666666666677777777777777770000000000000000 11111111111111111,,,,,,,,,,,,,,,,,444444444444444446666666666666666611111111111111111 11111111111111111,,,,,,,,,,,,,,,,,444444444444444446666666666666666611111111111111111 1 Notes issued to the Government of Italy in connection with mili- 3 Includes $106 million increase in dollar value of foreign currency tary purchases in the United States. obligations revalued to reflect market exchange rates as of Dec. 31, 1971. 2 In addition, nonmarketable U.S. Treasury notes amounting to $125 4 Includes $15 million increase in Mar. and $145 million increase in million equivalent were held by a group of German commercial banks from Apr. in dollar value of foreign currency oblieations revalued to reflect June 1968 through Nov. 1972. The dollar value of these notes was increased market exchange rates. by $10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 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) 1972 1973 AArreeaa aanndd ccoouunnttrryy Dec. Apr. May June July Aug. Sept. Oct. Nov.* Dec.f Europe: Austria 8 9 9 12 10 18 14 15 1144 1111 Belgium-Luxembourg 120 87 73 94 96 107 190 150 145 148 Denmark 59 63 69 69 56 67 52 50 53 48 118 134 140 141 134 125 114 97 89 108 France 330 451 447 389 434 368 413 461 525 621 Germany 321 345 356 399 349 281 313 366 392 311 Greece 29 32 19 19 28 20 16 26 23 35 Italy 255 288 327 326 278 278 242 .282 363 316 Netherlands 108 129 115 109 101 155 144 132 172 133 69 66 67 65 79 70 67 74 82 72 Portugal 19 30 17 19 18 14 18 23 22 23 207 238 360 387 272 251 183 183 189 222 Sweden 164 246 267 234 224 184 166 155 177 153 Switzerland 125 186 190 245 208 206 234 242 203 176 Turkey 6 5 6 9 7 6 6 8 16 10 United Kingdom 967 918 984 999 1,061 1,346 1,304 1,236 1,178 1,456 22 20 13 12 12 10 10 8 19 10 20 29 21 29 20 21 26 34 26 27 U.S.S.R 41 61 50 56 56 42 46 49 51 46 Other Eastern Europe 49 60 69 73 84 83 97 87 72 59 Total 3,037 3,396 3,599 3,684 3,526 3,654 3,654 3,678 3,811 3,985 1,914 2,305 2,400 2,034 2,168 2,186 1,909 2,210 1,979 1,958 Latin America: 379 396 408 440088 431 442 455 469 448855 449988 Bahamas 1 476 505 409 399 495 454 617 696 608 869 Brazil 649 759 851 891 965 915 879 837 826 900 Chile 52 45 40 43 36 50 40 80 125 151 Colombia 418 401 398 412 420 422 423 423 413 397 Cuba 13 13 13 14 13 13 13 15 13 12 Mexico 1,202 1,343 1,343 1,399 1,376 1,338 1,329 1,388 1,357 1,390 Panama 244 183 190 218 223 262 252 273 255 266 Peru 145 143 147 169 180 176 178 208 212 178 Uruguay 40 36 31 34 34 35 39 45 47 55 383 401 440 454 454 441 430 436 469 517 Other Latin American republics 388 382 383 380 373 394 409 431 465 490 Netherlands Antilles and Surinam 14 24 35 38 48 38 31 23 17 13 36 85 74 66 71 89 91 137 124 140 4,437 4,715 4,762 4,925 5,119 5,069 5,185 5,462 5,417 5,877 Asia: China, People's Rep. of (China Mainland) 2 5 3 7 6 7 22 3366 2200 119944 238 216 200 198 183 141 128 117 140 93 122 132 204 218 116 128 121 124 147 India 14 14 19 21 18 17 19 14 16 16 87 127 97 94 91 77 81 89 96 88 Israel 105 126 116 111 133 133 145 145 155 166 4,158 5,665 5,536 5,756 5,753 5,791 5,801 5,745 6,033 6,405 296 331 338 347 348 336 348 372 368 401 149 150 139 144 134 129 121 105 118 179 191 197 194 173 188 185 179 206 225 273 Other 300 296 324 354 352 350 361 349 377 394 5,589 7,269 7,116 7,407 7,441 7,321 7,330 7,295 7,664 8,230 Africa: 21 22 25 34 44 41 43 38 40 35 4 5 4 4 5 5 11 4 7 5 143 151 166 163 150 151 157 150 147 129 13 13 13 42 43 49 48 51 61 60 Other 124 137 136 145 149 173 146 163 155 159 Total 304 327 343 388 391 419 405 406 410 388 Other countries: 291 249 232 260 271 230 218 223 251 243 40 50 47 46 40 41 36 36 36 43 Total 330 299 280 305 310 271 254 259 287 286 15,611 18,311 18,501 18,744 18,956 18,921 18,737 19,310 19,569 20,724 International and regional 3 2 2 1 2 1 1 1 1 1 15,614 18,312 18,502 18,745 18,957 18,922 18,737 19,311 19,570 20,725 i Includes Bermuda through Dec. 1972. their own account or for account of their customers in the United States; NOTE.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities. foreigners, where collection is being made by banks and bankers for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 Total Total Total O in t f s i f o t L i i n c t o i s u a a - l n s t B anks * 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 f r g n c a n a f c e o d e c e p r e r 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 n p c o n v o r a a r d i t m p n e t , i i e c f l e g s r e . i e s n - , - Other 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 /13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 \13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 /15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 \15,614 14,768 5,682 163 2,975 2,543 3,298 3,204 2,584 846 441 223 182 15,172 14,347 5,437 142 2,814 2,480 3,280 3,103 2,527 825 443 253 128 17,973 16,902 6,460 162 3,674 2,624 3,608 3,283 3,551 1,071 596 313 162 18,324 17,374 6,534 141 3,683 2,711 3,751 3,464 3,624 951 524 262 165 18,312 17,494 6,842 146 3,931 2,765 3,834 3,464 3,354 819 460 207 152 18,502 17,649 6,931 163 3,812 2,956 3,844 3,602 3,271 854 499 237 118 18,745 17,907 7,285 205 4,037 3,043 3,901 3,963 2,758 838 552 140 147 18,957 18,095 7,015 162 3,916 2,936 3,891 3,899 3,290 862 561 151 151 18,922 18,036 6,964 176 4,021 2,767 3,967 3,694 3,411 886 488 151 247 18,737 17,961 6,827 155 3,920 2,752 4,088 3,700 3,345 777 459 143 175 19,311 18,451 7,003 216 3,989 2,798 4,099 3,774 3,575 861 510 187 163 19,570 18,780 7,090 252 4,099 2,739 4.287 3,788 3,614 790 512 131 148 20,725 20,063 7,733 268 4,587 2,878 4,304 4,155 3,870 622 428 119 115 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 Payable Loans to- O lo t n h g e - r c fo u r r i e r n i e g n n - U K d n i o i n m t g e - d E O u t r h o e p r e Canada Am La e t r i i n c a Japan O A t s h i e a r co o u t A n h t l e l r r i es Official Other term cies institu- Banks i foreign- claims tions ers 3,250 2,806 502 209 2,096 426 67 411 408 1,329 568 378 3,075 2,698 504 236 1,958 352 71 411 312 1,325 115 548 292 3,667 3,345 575 315 2,455 300 130 593 228 1,458 246 583 429 [4,954 4,539 833 430 3,276 375 145 704 406 1,996 319 881 503 l5,014 4,539 835 430 3,274 436 145 701 406 2,006 348 901 509 5,017 4,536 835 442 3,258 440 144 724 403 1,967 353 918 508 5,126 4,625 836 477 3,311 449 135 763 434 1,987 342 930 535 5,270 4,763 883 496 3,384 460 121 851 453 1,978 336 987 544 5,413 4,917 903 544 3,469 448 122 904 477 2,000 337 1,031 544 5,514 5.010 932 545 3,532 456 131 923 511 2,000 331 1,059 558 5,605 5,096 978 550 3,568 464 131 980 523 2,003 311 1,096 561 5,626 5,116 957 554 3,605 456 128 1,029 517 1,983 310 1,123 535 5,521 5,009 1,002 514 3,492 466 137 1,007 404 1,964 304 1,158 548 5,385 4,859 1,010 507 3,342 457 131 975 418 1,921 252 1,187 501 5,567 5.011 1,041 537 3,434 476 130 1,011 491 1,960 258 1,203 514 5,766 5,221 1,127 554 3,540 463 138 1,058 484 2,071 251 1,246 516 5,855 5,303 1,122 599 3,582 480 140 1,098 489 2,061 243 1,292 533 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. • FEBRUARY 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 i securities 2 Foreign bonds Foreign stocks Net purchases or sales 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 e l p e s s u o r r - c P ha u s r e - s Sales c N ha s e a t s e l p e s s u o r r - ch P a u s r e - s Sales regional Total Official Other 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 3,316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 290 -165 455 450 6 18,583 13,838 4,745 1,460 2,436 -976 1,729 1,554 404 404 403 2,014 1.375 639 243 465 -222 233 178 562 562 562 1,852 1,116 736 191 323 -132 161 158 515 -12 527 579 -52 1,761 1,045 716 145 144 194 145 554 10 544 540 3 2,220 1,111 1,109 144 125 19 211 114 31 -9 40 16 23 1,564 1,040 523 117 292 -175 121 112 -48 -33 -15 -15 1,141 1,101 40 139 150 -11 137 125 -71 -69 -1 -1 1,097 899 198 125 103 22 123 111 -79 -71 -9 -9 1,320 898 422 94 194 -100 107 107 -51 17 -68 -28 -39 1,343 864 479 96 157 -61 117 125 40 20 20 8 12 1,173 963 210 67 101 -34 115 105 29 -13 42 15 27 1,804 1,736 69 97 336 -238 129 131 -691 -5 -686 -722 36 1,946 1,689 257 103 305 -202 156 178 -501 1 -502 -521 19 1,360 1.376 -15 141 204 -63 159 144 t Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, NOTE.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Other Total Latin Period chases Sales chases or France many lands land King- EEuurrooppee EEuurrooppee Canada America Asia Other sales ( —) dom 1971 11,626 10,894 731 87 131 219 168 -49 71 627 -93 37 108 52 1972 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973 12,749 9,955 2,794 439 2 339 684 363 287 2,114 99 -1 577 5 1972—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 Mar 1,144 793 350 35 8 47 148 21 29 288 25 5 21 11 Apr 866 728 139 21 9 -8 53 -16 46 105 34 -10 5 4 May 777 898 -121 -2 -43 -14 -22 -39 3 -117 -7 -16 11 9 June 766 632 134 2 -23 7 52 15 21 74 8 -2 55 -2 July 880 564 316 67 -19 25 80 28 28 210 19 11 71 5 Aug 972 631 341 53 1 60 57 40 34 245 10 11 81 -6 Sept 947 734 212 63 6 18 52 15 14 167 * 27 21 -3 Oct 1,366 1,272 93 6 -7 5 -34 66 24 59 -26 16 41 4 Nov.1'. . . . 1,480 1,071 409 106 27 54 69 66 20 342 -18 -9 108 -14 Dec.f 870 872 -2 30 9 32 -64 -23 6 -9 -8 -4 34 -16 1 Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 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 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 1 684 15 197 327 39 612 19 -2 -21 39 197 2 1,871 336 135 357 315 1,293 22 323 148 1973* 1,951 201 307 302 475 1,233 44 588 26 1972—Dec... 289 56 49 60 210 29 38 1973—Jan... 260 12 -2 29 49 73 161 31 60 Feb... 270 6 4 2 30 46 60 149 110 -26 Mar.. 759 45 3 -22 -7 -3 158 174 623 -42 Apr... 385 33 2 65 -96 94 98 16 199 68 May.. 161 -4 76 120 22 215 2* -63 June.. 64 -3 -3 -9 -2 -10 10 59 July. . 106 -57 13 -15 7 -52 1 150 Aug... 138 1 -5 72 10 109 2 24 Sept.. -2 14 12 26 11 -39 Oct.. . -25 46 -14 1 87 1 -118 Nov.® -151 28 76 7 124 -209 -48 Dec.?. -13 37 61 32 153 -183 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) 1971 -992 -310 -682 31 -275 -46 -366 -57 32 291 203 1972 -651 -90 -561 492 -651 -69 -296 -66 29 349 281 1973p -801 139 -941 -141 -566 -107 -168 3 38 1971—Mar 511 314 1972-Dec.. . . -167 9 -176 7 -158 -26 -2 2 1 419 300 333 320 1973—Jan -129 9 -138 7 -67 -70 -9 * * 311 314 Feb.. . . 49 -2 51 -3 41 -16 29 * * Mar 116 23 93 24 34 8 27 * 1 1972—Mar 325 379 Apr.. .. -166 16 -182 22 -193 -6 -5 * • 312 339 May.. . 1 11 -10 -22 -13 6 6 — 1 14 286 336 June... 34 7 27 10 6 13 -13 1 9 372 405 July.... -100 3 -103 -14 -100 * 9 * 3 Aug -69 5 -75 -21 -44 -4 -8 • 3 310 364 Sept -25 4 -28 -28 8 -8 -1 * 2 316 243 Oct -240 4 -243 -25 -148 -8 -64 1 1 Sept.f 290 255 Nov-®.. -225 9 -234 -47 -78 -6 -104 * * Dec.®. . -48 51 -99 -44 -10 -15 -34 2 3 NOTE.—Data represent the money credit balances and money debit balances appearing on the books of reporting 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: i Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $16,537 million and $16,894 million, respectively, on Oct. 31 and $17,534 some branches do not adjust the parent's equity in the branch to reflect million and $17,824 million, respectively, on Nov. 30, 1973. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent NOTE.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 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- Parent branches Other cial bank Total bank Other 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 1971—Dec.. 61,334 4.798 2,311 2,486 54,752 11,211 24,550 1,167 1972—Nov.. 76,241 4,456 1,824 2,632 69.425 11,350 34,203 1,577 Dec.. 80,034 4,735 2,124 2,611 73,031 11.717 36,738 1,665 1973—Jan.. 81,199 4,926 2,327 2,600 74,006 11,945 36,797 1,621 Feb.. 87,901 4,325 1,565 2,760 81,067 12,272 42,203 1,747 Mar.. 91.646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 Apr.. 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 May. 92,994 4,218 1,926 2,292 85,577 13,490 42,746 2,004 Juner 98,757 4,955 2,333 2,622 90,208 13,528 46,277 1,900 July. 103,793 5,404 2,505 2,899 94,584 15,316 47,555 2,035 Aug.. 105,131 5,157 2,289 2,868 95,946 15,667 47,411 2,102 Sept.. 110,673 4,853 1,917 2,936 101,022 17,194 49,312 2,242 Oct... 113,888 4,888 1,856 3,031 104,291 18,042 50,967 2,333 Nov.. 121,170 5,898 2,915 2,983 109,618 19,304 53,858 2,220 Payable in U.S. dollars. 1970—Dec.. 34,619 9,452 7,233 2,219 24.642 4,213 13,265 362 1971—Dec.. 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 1972—Nov.. 49,631 4,173 1,803 2,371 44,664 7,439 24,123 1,083 Dec.. 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 1973—Jan.. 54,196 4,592 2,303 2.289 48,828 8,093 26,764 1,063 Feb.. 57,567 3,985 1,534 2,451 52,692 8,550 29,829 1,097 Mar.. 58.745 3,988 1,957 2,031 53,752 8,438 30,568 1,124 Apr.. 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 May. 58,019 3,930 1,899 2.031 52,871 8,548 28,677 1,140 June' 51,415 1,876 1,012 864 48,031 5,279 30,348 607 July. 64,146 4.799 2,469 2,330 57,867 9,229 '31,803 1,220 Aug.. 65,434 4,521 2,231 2.290 59,458 10,033 31,387 1,278 Sept.. 68,114 4,415 1,866 2,549 62,015 10.718 32,458 1,281 Oct.. 70.293 4,398 1,790 2,608 64,248 11,562 33,483 1,321 Nov.. 76,120 5,424 2,855 2,569 68,907 12,334 36,133 1,413 IN UNITED KINGDOM Total, all currencies 1970—Dec.. 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 1971—Dec.. 34.552 2,694 1,230 1,464 30,996 5,690 16,211 476 1972—Nov.. 41,600 1,939 907 1.032 38.643 5,490 22,671 584 Dec.. 43,684 2,234 1,138 1.096 40,430 5,659 23,983 609 1973—Jan.. 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 Feb.. 48,533 1,945 848 1.097 45,487 5,887 28,473 585 Mar.. 49,696 2,052 1,130 922 46,520 5,783 29,148 663 Apr.. 49,181 1,662 794 868 46,332 5,437 29,255 651 May. 49,080 1,744 910 834 46.001 5,725 28,394 614 June7 61,844 4,602 2,285 2,317 55,886 8,493 31,261 1,129 July. 54,265 2,500 1.492 1,008 50,189 6,274 30,826 649 Aug.. 53,153 1,878 937 942 49,692 6,849 29,696 685 Sept.. 56,127 1,473 604 870 52,771 8,022 30,967 660 Oct.. 57,589 1,853 879 974 53,778 7,970 31,775 695 Nov.. 62.294 2,285 1,245 1,040 57,146 8,552 34,059 701 Payable in U.S. dollars. 1970—Dec.. 22,574 6,596 15,655 2,223 9,420 1971—Dec.. 24,428 2,585 21,493 4,135 12,762 1972—Nov.. 27,865 1,846 25,579 4,049 16,399 Dec.. 30,381 2,146 27,787 4,326 17,976 1973—Jan.. 30.652 2,468 27,778 4,184 18,069 Feb.. 32.746 1,814 30,423 4,568 20,219 Mar.. 32,658 1,953 30,183 4,324 20,033 Apr.. 31,833 1.539 29,778 4,034 20,119 May. 30,906 1,654 28,666 3,943 18,848 Juner 32,864 1,784 30,386 3,900 20,413 July. 33,486 2,193 30,569 4,042 20,209 Aug.. 32,935 1.540 30,694 4,887 19,224 Sept.. 34,401 1,348 32,210 5,399 19,873 Oct.. 35.647 1,700 33,176 5,769 20,415 Nov.. 39,321 2,098 36,386 6,273 22,786 IN THE BAHAMAS Total, all currencies. 1970—Dec.. 4,815 1,173 455 717 3,583 2,119 1971—Dec.. 8,493 1,282 505 778 7,119 3,798 1972—Nov.. 12,330 1,586 221 1,365 10,577 6,209 Dec.. 13,091 1,496 225 1,272 11,419 6,965 1973—Jan.. 13,064 1,387 182 1,206 11,495 6,753 Feb.. 13,559 1,461 83 1,378 11,860 7,189 Mar.' 13,764 1,210 89 1,121 12,284 7,519 Apr.. 13.653 1,407 293 1,113 11,988 6,726 May. 14,730 1,498 272 1,227 12,888 7,242 June. 16,184 1,917 410 1,507 14.002 8,206 July. 17,086 1,929 350 1,579 14,862 8,802 Aug.. 18,051 2,206 567 1,639 15.426 9,001 Sept.. 18,665 2,217 469 1,748 15,995 9,420 Oct.. 18.553 1,81 174 1,637 16,279 9,457 Nov.. M9,576 2,284 648 1,636 16,777 9,400 Digitized for FRASEFRor notes see p. A-85. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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. 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 1972—Nov. 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 Dec. 3,414 836 2,578 75,272 1 ,746 42,259 9,236 12,032 2,513 1973—Jan. 3,967 1,132 2,835 80,848 11,868 46,370 9.387 13,223 3,086 Feb. 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 4,579 1,009 3,569 90,133 13,315 52,388 9,593 13,837 4,044 June ' 4,491 1,213 3,279 94,940 15,040 55,705 9,676 14,519 4,362 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 4,821 1,366 3,455 104,148 17,575 61,126 9,070 16,377 4,919 Oct. 4,859 1,088 3,771 10,480 18,544 65,630 9,703 16,603 5,832 2.334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 1970—Dec. • Payable in U.S. dollars 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 1971—Dec. 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 1972—Nov. 3,104 848 2,256 51,81 8,178 30,253 6,913 6,467 1,459 2,995 693 2,302 52,113 8.400 29,233 7,680 6,800 1,297 1973—Jan. 3,466 954 2,511 55.780 8,750 32,023 7.808 7,200 1,568 Feb. 3,613 1,038 2,575 57.127 8,735 33,131 7,771 7,489 1,691 3,562 886 2,676 55,604 8,657 31,970 7,743 7,234 1,750 4,005 955 3,050 55,636 8,810 32,275 7,361 7,190 1,786 4,036 868 3,167 58.781 8,774 35,470 7,354 7,183 1,844 June 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 4,273 1.205 3,068 65,345 11,636 38,886 6,325 8,498 2,293 Oct. 4,236 897 3,339 70,719 12,313 43,108 6,441 8,857 3,184 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. 1,481 132 1,349 39,149 2,928 22,769 6,340 7,112 969 1972—Nov. 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 Apr. 2,028 170 1,857 45,792 3,614 27,168 7,324 7,685 1,260 May 1,957 122 1,835 48,145 3.321 29,332 7,585 7,907 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 2,125 161 1,964 52.238 4,118 32,210 6,952 8,957 1,764 2,031 134 1,897 53,748 4,036 33,531 6,999 9,182 1,809 Oct. 2,198 143 2,055 57,434 3,886 36,348 7,700 9,500 2,662 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. 1,270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 1972—Nov. 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 Feb. 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 31,278 2,234 18,390 5,990 4,663 575 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 Sept. 1,836 108 1,727 32,902 2,515 20,383 4.809 5,194 732 1,908 87 1,821 36.239 2,468 23,189 4,983 5,598 1,557 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. 934 11,230 1,982 7,862 1,386 166 1972—Nov. 1,220 11,703 1,964 8,395 1,344 168 1,137 11,760 1,875 8,502 1,383 167 1973—Jan. 1,186 12,144 2,223 8,394 1,527 230 1,304 12,194 1,830 8,829 1,536 267 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 Sept. 1,574 16,437 3,865 10,808 1,764 541 1,382 17,630 4 11,961 1,581 565 Digitized for FFRorA nSoEteRs see p. A-85. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 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) Wednesday Liabilities 1 Liab. plus Wednesday Liabilities 1 Wednesday Liabilities 1 Wednesday Liabilities 1 sec.2 1968 1972 1973 1973 Mar. 27 4,920 Jan. 26.. 1,419 June 6.. 940 Nov. lr. 1,754 June 26 6,202 Feb. 23.. 1,068 13.. 1,266 14'. 1,870 Sept. 25 7,104 Mar. 29.. 1,532 20.. 1,242 21 r. 2,473 Dec. 31 (1/1/69) 6,039 27.. 1,521 28'. 2,458 Apr. 26.. 1,374 1969 May 31.. 1,465 July 3.. 1,766 Dec. 5.. 1,911 June 28.. 1,443 11.. 1,664 12r. 1,938 Mar. 26 9,621 18.. 2,146 19r. 2,382 June 25 13,269 July 26.. 1,345 25.. 2,086 26 r. 1,703 Sept. 24 14,349 Aug. 30.. 1,270 Dec. 31 12,805 Sept. 27.. 2,023 Aug. 1.. 2,226 1974 8.. 2,276 1970 Oct. 25.. 1,415 15.. 1,900 Jan. 2r. 1,158 Nov. 29.. 1,745 22r. 2,446 9r. 1,322 Mar. 25 11,885 Dec. 27.. 1,406 29 2,802 16'. 2,039 June 24 12,172 23 r. 2,002 Sept. 30 9,663 1973 Sept. 5.. 1,512 30.. 1,683 Dec. 30 7,676 12.. 1,942 Jan. 31.. 1,413 19.. 1,801 1971 Feb. 28.. 790 26.. 1,731 Mar. 28.. 1,127 Mar. 31 2,858 4,358 Oct. 3.. 1,695 June 30 1,492 4,500 Apr. 25.. 1,123 10.. 1,790 Sept. 29 2,475 3,578 17.. 1,814 Dec. 29 909 May 30.. 1,351 24.. 1,642 31'. 1,768 1 Represents gross liabilities of reporting banks to their branches in Certificates Eurodollar Series and special Export-Import Bank securities foreign countries. held by foreign branches. Beginning July 28, 1971, all of the securities 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury held were U.S. Treasury Certificates Eurodollar Series. 23. 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 End of United period Deposits period Total Short- Short- King- Canada 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 - dom ments 1 ments 1 1971 . 294 43,195 13,815 1972. 325 50,934 215,530 196 8 1,638 1,219 87 272 60 979 280 1973—Jan... 310 50,118 15,526 1969 2 / \1 1 , , 4 3 9 1 1 9 1,0 9 6 5 2 2 1 1 6 1 1 6 1 18 7 3 4 7 8 6 6 6 66 1 3 0 4 5 6 3 9 4 Feb. . 455 56,914 15,522 197 0 1,141 697 150 173 121 372 443 Mar.. 327 359,389 15,519 A M p a r y . . . 2 3 8 2 9 8 3 5 5 8 8 , , 0 25 1 5 5 1 1 5 5 , , 5 51 1 1 3 1971—Dec.2 . . . / \ 1 1 , , 6 5 4 0 8 7 1 1, , 0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 7 8 7 0 4 5 4 8 3 7 June. 334 57,545 15,486 July.. 280 57,054 15,464 1972—No v 2,058 1.493 167 343 55 635 587 A Se u p g t . . . . 2 2 5 5 9 0 5 5 5 5 , , 8 4 5 0 5 7 1 1 5 5 , , 4 4 5 3 5 7 Dec.2.. . . \ f 2 l, , 9 25 6 0 5 1 1, , 7 4 8 4 9 6 1 5 6 5 9 3 33 0 8 7 4 6 2 8 8 7 6 0 9 2 4 5 8 3 5 5 Oct... 426 54,766 417,122 Nov.. 420 52,998 17,104 1973—Ja n 2,458 1,929 92 344 93 921 704 Dec... 251 52,070 17,068 Feb 2,989 2,218 170 378 224 1,012 ,088 Mar.r 3,074 2,282 156 412 225 1,100 963 1974—Jan... 392 49,582 17,044 Apr.r.. . . 3,041 2,272 118 416 234 1,042 882 May r.. . . 3,188 2,412 130 433 211 1,008 ,007 1 Marketable U.S. Treasury bills, certificates of in- J J u u n ly e . r .. . .. . . 3 3 , , 2 2 0 6 3 0 2 2, , 4 5 8 4 2 2 1 7 3 4 6 4 4 5 7 3 5 1 16 3 7 4 1 1 , , 0 0 6 6 8 2 9 8 5 7 5 8 debtedness, notes, and bonds and nonmarketable U.S. Aug.r 3,349 2,575 82 484 209 1,061 936 Treasury securities payable in dollars and in foreign Sept.r 3,203 2.494 78 471 161 1,080 882 cur 2 r e T n h c e i e v s. a lue of earmarked gold increased because of the N O o ct v 2 3 , , 8 1 8 2 3 0 2 2 , , 2 4 2 9 3 4 6 5 6 8 4 4 4 3 7 2 1 1 4 3 8 6 1,0 9 3 8 4 1 9 8 0 6 4 8 change in par value of the U.S. dollar in May 1972. 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates. 1 Negotiable and other readily transferable foreign obligations payable on demand 4 The value of earmarked gold increased because of the 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 change in par value of the U.S. dollar in Oct. 1973. 2 Data on the two lines for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding NOTE.—Excludes deposits and U.S. Treas. securities date; figures on the second line are comparable with those shown for the following date. held for international and regional organizations. Earmarked gold is gold held for foreign and international NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in a U c n c i o t u ed n ts S ta a t n e d s . is not included in the gold stock of the the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 25 and 26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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 Dec. r Mar. r June Sept.p Dec.r Mar.r June Sept.p Europe: 2 3 2 2 19 14 17 15 83 75 81 129 73 121 109 112 7 8 19 18 29 26 20 21 4 4 4 7 25 21 21 31 167 161 165 165 228 288 315 275 Germany, Fed. Rep. of 157 147 182 193 195 245 273 265 Greece 15 19 24 33 35 36 40 52 Italy 121 107 103 108 202 204 201 201 Netherlands 109 102 111 113 84 97 96 118 14 14 13 10 16 18 19 21 Portugal 4 5 4 12 19 19 25 24 81 82 72 79 157 159 140 169 13 23 25 32 57 45 49 53 112 134 90 148 82 87 90 63 4 3 3 6 48 23 14 17 United Kingdom 1,057 898 746 829 1,182 1,422 1,400 1,482 Yugoslavia 7 16 17 22 12 14 18 21 Other Western Europe 2 2 3 3 12 9 9 12 Eastern Europe 3 6 22 24 42 40 91 73 Total 1,961 1,808 1,686 1,933 2,517 2,888 2,949 3,025 Canada 213 266 248 236 965 1,360 1,300 1,330 Latin America: Argentina 29 30 24 24 79 74 60 65 Brazil 35 42 47 41 169 172 178 202 Chile 18 17 13 13 34 31 29 34 Colombia 7 8 7 8 40 40 36 44 Cuba 1 * * * 1 1 11 Mexico 27 34 37 36 183 195 220044 118877 Panama 18 17 18 17 74 72 72 91 Peru 4 4 6 10 36 33 34 37 Uruguay 7 5 3 2 4 5 5 5 Venezuela 21 23 23 24 92 106 101 103 Other L.A. republics 45 46 47 49 95 96 102 125 Bahamas1 381 320 415 349 585 571 766 744 Neth. Antilles and Surinam 10 10 11 7 13 12 11 9 Other Latin America 4 9 19 20 34 44 90 105 Total 605 565 670 602 1,439 1,451 1,688 1,753 Asia: China, People's Republic of (China Mainland) 32 32 31 36 * 1 11 48 China, Rep. of (Taiwan) 26 33 35 31 65 61 76 77 Hong Kong 12 17 13 17 32 31 34 36 India 7 7 7 7 34 32 29 32 J O I I K P T s n a h h t r o p d h i a a r l a o e e i i e l n p n r l a a p e n A s i d n i s a e i a s 1 1 2 8 5 1 1 1 1 9 5 2 6 3 6 2 1 2 2 5 1 1 1 9 5 6 5 9 6 6 2 1 7 4 1 1 1 5 0 9 6 9 5 8 3 1 2 2 7 1 1 1 8 0 9 6 5 1 6 4 2 7 0 4 6 2 3 3 3 3 8 3 3 4 1 5 1 4 4 2 1 3 3 9 7 7 5 8 9 4 1 2 5 4 2 4 2 0 0 3 1 7 7 4 3 6 6 2 6 4 4 0 3 2 5 2 1 8 3 2 8 2 7 Total 488 554 567 665 1,007 1,026 1,033 1,224 Africa: Egypt 32 37 20 11 16 25 23 28 South Africa 8 6 6 6 52 56 51 60 Zaire 12 12 19 8 16 15 19 Other Africa 62 67 67 97 88 84 92 90 Total 104 121 105 134 164 179 181 197 Other countries: Australia 46 54 72 94 85 81 75 89 All other 13 11 11 9 22 24 26 22 Total 59 65 83 103 107 105 101 111 International and regional * * * * 1 1 1 * Grand total 33,,443300 --33,,338811 3,361 3,671 66,,119999 7,011 7,254 7,640 i Includes Bermuda. Data exclude claims held through U.S. banks, and intercompany accounts NOTE.—Reported by exporters, importers, and industrial and com- between U.S. companies and their foreign affiliates, mercial concerns and other nonbanking institutions in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 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 Total P d a o y l i l n a a b r l s e 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 P d a o y l in l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter's name 1,797 1,450 346 3,874 3,222 386 267 1,786 1,399 387 3,710 3,124 221 365 2,124 1,654 471 4.159 3,532 244 383 2,387 1,843 543 4,457 3,868 234 355 2,512 1,956 557 4,361 3,756 301 305 2,677 2,281 496 4.160 3,579 234 348 2,437 1,975 462 4,515 3,909 232 374 2,375 1,937 438 4,708 4,057 303 348 2,564 2,109 454 4,894 4,186 383 326 2,704 2,229 475 5,185 4,535 318 333 2,763 2,301 463 5,004 4,467 290 247 2,844 2,407 437 5,177 4,557 318 302 2,925 2,452 472 5,331 4,685 376 270 2,933 2,435 498 5,495 4,833 432 230 3,119 2,635 484 5,723 5,074 411 238 3,430 2,918 512 6,199 5,523 394 282 3,381 2,858 523 7,011 6,112 462 437 3,361 2,780 581 7,254 6,392 504 358 3,671 2,970 701 7,640 6,690 536 414 i Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area EEEnnnddd ooofff pppeeerrriiioooddd TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss TToottaall K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n r c a Japan O A t s h i e a r Africa o A th l e l r 1969—Sept 1,418 1,965 167 369 465 179 70 213 143 246 71 42 D 1 \ / 2 1, , 7 3 2 0 5 4 2 2 , , 2 3 1 6 5 3 1 15 5 2 2 4 4 3 4 3 2 5 4 6 9 2 6 1 1 7 7 7 2 7 7 7 3 4 38 2 8 0 1 14 4 1 2 2 27 4 1 9 6 7 9 5 4 4 2 6 1970—Mar 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept 2,939 3,019 135 672 765 178 60 597 133 319 85 75 7 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 3,138 3,118 128 705 767 174 60 653 136 325 86 84 1972—Mar 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec.1 r J 3,540 3,370 163 715 833 184 60 659 156 406 87 109 \ 3,864 3,480 187 758 857 187 64 702 134 399 82 111 1973—Mar.' 4,022 3,622 151 816 871 165 63 794 124 413 101 125 June 4,008 3,696 174 823 882 146 65 817 138 416 104 131 Sept.* 4,255 3,855 211 840 884 152 71 829 152 475 104 137 i 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

FEBRUARY 1974 • EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period A (d u o st l r la a r li ) a (s A ch u i s l t l r in ia g ) B ( e fr 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 l k an k d a ) F (f r r a a n n c c e ) ( G D m e e r u a m t r s a k c n ) h y e 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 1973 141.94 5.1649 2.5761 99.977 16.603 26.165 22.536 37.758 1973 Jan 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 Mar 141.29 4.8759 2.5378 100.333 16.275 25.628 22.191 35.548 Apr 141.50 4.8330 2.4895 99.928 16.099 25.872 21.959 35.252 May 141.50 4.9082 2.5356 99.916 16.241 25.277 22.341 35.841 June 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 Aug 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 Nov. 148.22 5.2670 2.5882 100.092 16.744 26.894 22.687 38.764 t)ec 148.33 5.1150 2.4726 100.058 16.089 26.104 21.757 37.629 1974 Jan 114488..2233 4.8318 2.3329 100.859 14.981 25.138 19.905 35.529 Period (r In up d e ia e ) ( I p r o e u la n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - r s ) Z (d e N o a e l l l w a a n r d ) 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 111.48 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 113.71 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 119.35 12.071 245.10 .17192 .36915 40.988 8.0000 35.977 136.04 1973 Jan 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 Mar 13.260 247.24 .17604 .38190 39.922 8.0000 34.334 132.21 Apr 13.255 248.37 .16971 .37666 40.307 8.0000 33.890 132.99 May 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 July 13.605 253.75 .17200 .37801 43.121 8.0000 38.700 135.02 Aug 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 Oct 12.938 242.92 .17656 .37547 43.641 8.0000 40.011 148.64 Nov 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 1974 Jan 11.854 222.40 .15433 .33559 40.094 8.0000 34.009 139.08 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 ) Sr ( i 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 ) 13.992 3.4978 139.24 1.4280 16.774 19.282 23.199 239.59 14.205 3.5456 140.29 1.4383 16.800 19.592 24.325 244.42 15.180 3.7023 129.43 1.5559 16.057 21.022 26.193 250.08 1973 17.406 4.1080 143.88 1.7178 15.705 22.970 31.700 245.10 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 1.7217 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 1974—Jan 16.739 3.7195 148.66 1.7205 14.423 20.781 29.727 222.40 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 • FEBRUARY 1974 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Jan. 31, 1973 Country 1973 1974 Per Month cent effective Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Argentina 18.0 Feb. 1972 Austria 5.5 Nov. 1972 6.0 Belgium 5.0 Dec. 1972 5.50 6.0 6.5 7.75 8.75 Brazil 18.0 Feb. 1972 Canada 4.75 Oct. 1971 5.25 5.75 6.25 6.75 Chile 7.0 Jan. 1972 China, Rep. of (Taiwan) 9.25 May 1971 10.5 10.75 Colombia 14.0 May 1970 Costa Rica 5.0 June 1966 Denmark 7.0 Oct. 1972 8.0 9.00 Ecuador 8.0 Jan. 1970 Egypt 5.0 May 1962 El Salvador 4.0 Aug. 1964 Ethiopia 6.50 Aug. 1970 Finland 7.75 Jan. 1972 9.25 France 7.5 Nov. 1972 8.50 9.5 Germany, Fed. Rep. of..... 5.0 Jan. 1973 6.0 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 7.0 Indonesia 6.0 May 1969 7.5 Dec. 1972 9.0 Ireland 8.75 Jan. 1973 10.5 12.75 Italy 4.0 Apr. 1972 6.5 Jamaica 7.0 Jan. 1973 9.0 Japan 4.25 June 1972 5.0 6.0 9.00 Korea 13.0 Jan. 1972 Mexico 4.5 June 1942 Morocco 3.5 Nov. 1951 Netherlands 4.0 Nov. 1972 5.0 6.0 6.5 7.0 8.00 New Zealand 6.0 Mar. 1972 Nigeria 4.5 June 1968 Norway 4.5 Sept. 1969 Pakistan 6.0 May 1972 8.0 Peru 9.5 Nov. 1959 Philippine Republic 10.0 June 1969 Portugal 4.0 Dec. 1972 5.5 5.00 South Africa 6.0 Aug. 1972 Spain 5.0 Oct. 1971 Sri Lanka1 6.5 Jan. 1970 Sweden 5.0 Nov. 1971 Switzerland 4.5 Jan. 1973 Thailand 5.0 Oct. 1959 Tunisia 5.0 Sept. 1966 Turkey 9.0 Sept. 1970 8.0 8.75 United Kingdom 8.75 Jan. 1973 8.5 7.75 11.50 13.0 Venezuela 5.0 Oct. 1970 Vietnam 18.0 Sept. 1970 1 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- t 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 ce l 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 in 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 V tu i r e p e p r a p ce 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

FEBRUARY 1974 • OPEN MARKET RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom I France Fe G d e . r R m e a p n . y o , f Netherlands Sw la it n z d e r- Month 3 T m r b e o i a l n s ls u t , h r s y ^ D m a o d y n a - y e t y o 2 - 3 m P b b r o a i i l n n m ls k t , e h s3 3 T r m b e i a o l s l n s u , t r h y s D m a d o y a n - y t e o y - C d b r l e e a a p a n t o r e k s i s n s i 4 t ' g D m a o d y n a - y e t y o 5 - Tr 6 d b e 0 a i a - l y s l 9 s s u 0 , 6 r y D m a o d y n a - e y t y o - 7 3 T r m b e i a o l s l n s u , t r h y s D m a d o y a n - y t e o y - d P is r r c i a v o t a e u t n e t 197 2 3.55 3.65 6.06 5.02 4.83 3.84 3.04 4.30 2.15 1.97 4.81 1973 5.43 5.27 10.45 9.40 8.27 7.96 10.18 4.07 4.94 1973—Jan.. 3.79 3.72 8.76 8.49 7.66 6.55 7.23 4.75 5.58 3.16 2.78 5.00 Feb. 3.91 3.93 9.34 8.14 8.31 7.30 7.71 5.75 2.18 2.33 1.55 5.00 Mar. 4.28 4.21 9.76 8.16 7.52 7.50 7.49 5.75 11.37 1.53 .61 5.00 Apr. 4.73 4.53 8.64 7.87 7.20 7.25 7.46 5.75 14.84 1.22 .77 5.00 May 5.08 4.67 8.35 7.45 8.29 7.11 7.71 5.75 7.40 2.89 3.88 5.00 June 5.40 5.00 8.14 7.12 6.66 6.55 7.46 7.00 10.90 3.59 4.28 5.00 July. 5.67 5.28 9.06 8.35 5.89 6.25 7.89 7.00 15.78 5.58 5.65 5.00 Aug. 6.47 5.87 12.78 10.98 9.70 8.99 8.87 10.63 5.92 7.24 5.00 Sept. 6.41 6.31 12.12 11.37 9.13 9.50 9.73 9.76 5.67 7.97 5.25 Oct.. 6.56 6.54 11.37 10.75 10.53 9.50 10.99 10.57 5.25 7.93 5.25 Nov. 6.48 6.56 13.38 11.76 8.80 9.50 11.30 5.29 7.88 5.25 Dec. 6.39 6.58 13.74 12.41 9.57 9.46 11.89 6.41 8.75 1974—Jan.. 6.31 6.50 13.67 12.09 9.25 9.25 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers' acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers' allowance on NOTE.—For description and back data, see "International Finance," deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates PPrreemmiiuumm DDDaaattteee q K ( u U i a n o U n d t g i j . a t . d S t e . o i t d o o m n U S n ta it te e s d L S ( o p f n a o r v d e f o a o r d n ) PP dd ff (( (( rr pp oo ii ++ ss -- ee rr oo )) cc mm ww uu oo )) nn aa ii oo uu uu oo rr dd nn nn mm rr 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 )) qu A o in s t e d C anl a q d u A a o U d t j . a . S t . i t o o n U S n ta i t t e e s d C S ( a f p n a o r v a e f o d a r d a ) CC dd ff (( (( dd oo aa ii ++ —— ss oo rr nn cc )) ww ll aa oo )) llaa dd aa oo uu oo rr ii rr rr nn aa nn ss 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 )) basis) Canada basis 1973 Aug.. 3 10.63 8.18 2.45 -2.97 -.52 5.82 5.66 8.18 -2.52 2.64 .12 10 10.76 8.76 2.00 -4.60 -2.60 5.99 5.82 8.76 -2.94 2.88 -.06 17 10.78 8.47 2.31 -4.55 -2.24 6.05 5.82 8.47 -2.65 2.69 .04 24 10.83 8.45 2.38 -4.88 -2.50 6.12 5.95 8-45 -2.50 2.64 .14 31 10.82 8.53 2.29 -4.45 -2.16 8.38 6.00 8.53 -2.53 2.58 .05 Sept.. 7 10.84 8.77 2.07 -4.55 -2.48 6.22 6.04 8.77 -2.73 2.26 -.47 14 10.80 8.75 2.05 -5.49 -3.44 6.42 6.25 8.75 -2.50 2.06 -.44 21 10.83 8.00 2.83 -4.84 -2.01 6.48 6.26 8.00 -1.74 1.89 .15 28 10.79 6.94 3.85 -4.52 -.67 6.50 6.29 6.94 -0.65 1.37 .72 Oct. 5 10.74 7.36 3.38 -3.73 -.35 6.68 6.26 7.36 -1.11 1.41 .30 12 10.67 7.08 3.59 -3.56 .03 6.51 6.29 7.08 -.79 .46 -.33 19 10.56 6.98 3.58 -3.68 -.10 6.53 6.30 6.98 -.68 .08 -.60 26 10.54 6.99 3.55 -4.08 -.53 6.51 6.30 6.99 -.69 -.70 -1.39 . 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 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 1974 Jan. 4 12.04 7.38 4.66 -7.44 -2.78 6.35 6.13 7.38 -1.25 -.60 -1.85 11 12.04 7.75 4.29 -7.30 -3.01 6.32 6.10 7.75 -1.65 -.22 -1.87 18 11.88 7.75 4.13 -7.69 -3.56 6.30 6.10 7.75 -1.65 -.18 -1.83 25 1111..8866 77..9922 33..9944 --88..8822 -4.88 66..2266 66..0088 77..9922 --11..8844 --11..8844 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 • FEBRUARY 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 world1 Fund world 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 1,151 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 1,046 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 1,015 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 863 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 872 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 791 41,160 4,732 10,206 26,220 192 90 259 729 1,544 46 792 44,890 5,830 10,487 28,575 208 152 281 792 1,638 50 834 5,830 10,487 208 152 281 793 1,621 50 834 5,830 10,487 208 152 281 793 1,603 50 834 44,880 10,487 28,565 208 152 282 793 1,603 50 834 5.830 10,487 208 152 281 793 1,603 50 834 5,826 10,487 208 152 281 793 1,603 50 834 44,865 5.831 10,487 28,545 208 152 281 793 1,603 50 834 5,826 10,487 208 281 793 1,603 50 834 5,826 10,487 208 281 793 1,603 50 834 *44j880 5,826 10,487 *28,565 208 282 793 1,603 50 834 6,474 11,652 231 312 881 1,781 56 927 6,476 11,652 231 312 881 1,781 927 6,478 11,652 231 311 881 1,781 927 Ger- R C e h p in . a o , f lo C m o b - ia m De a n rk - Egypt l F a i n n d - m F a e n d y . , Greece India Iraq l I a r n e d - (Taiwan) Rep. of 55 35 97 13!> 4,706 4,410 78 281 146 110 21 62 26 108 93 5,238 4,292 120 243 130 106 23 81 31 107 93 5,234 4,228 130 243 144 115 25 81 31 114 93 3,877 4,539 140 243 158 193 79 82 26 89 93 3,547 4,079 130 243 158 193 39 82 17 64 85 3,532 3,980 117 243 131 144 16 80 14 64 85 3,523 4,077 98 243 131 144 16 87 16 69 92 3,826 4,459 133 264 142 156 17 87 16 69 92 53 3,834 4,468 133 264 142 156 17 87 16 69 92 53 3,834 4,468 133 264 142 156 17 87 16 69 92 53 3,834 4,468 133 264 142 156 17 87 16 69 92 53 3,834 4.468 133 264 142 156 17 87 16 69 92 53 3.834 4.469 133 264 142 156 17 87 16 69 92 53 3,841 4,462 133 264 142 156 17 87 16 69 92 53 3.835 4,469 133 264 142 156 17 87 16 69 92 53 3,835 4,469 133 264 142 156 17 87 16 69 92 53 3,835 4,469 133 142 156 16 97 18 77 103 59 4,261 4,966 148 158 173 19 97 18 77 42 4,261 4,966 148 158 173 18 18 77 35 4,261 4,966 158 18 E pe n r d i o o d f Italy Japan Kuwait a L n e o b n - Libya M s a i l a a y- N l e a t n h d e s r - N w o a r y - P s a ta k n i- 1965 2,404 328 52 182 68 2 158 21 1,756 31 53 1966 2,414 329 67 193 68 1 109 21 1,730 18 53 1967 , 2,400 338 136 193 68 31 166 21 1,711 18 53 1968. 2,923 356 122 288 85 66 165 21 1,697 24 54 1969. 2,956 413 86 288 85 63 169 21 1,720 25 54 1970. 2,887 532 86 288 85 48 176 21 1,787 23 54 1971. 2,884 679 87 322 85 58 184 21 1,909 33 55 1972--Dec 3,130 801 94 350 93 63 23 2,059 37 60 1973--Jan 3,134 801 94 350 93 63 188 23 2,059 37 60 Feb 3,134 801 94 350 93 63 188 23 2,059 37 60 Mar 3,134 801 94 350 93 63 188 23 2,059 37 60 Apr 3,134 801 94 350 93 63 188 23 2,059 37 60 May 3,134 802 350 93 63 188 23 2,059 37 60 June 3,134 802 350 93 63 186 23 2,063 37 60 July 3,134 802 350 93 63 184 23 2,063 37 60 Aug 3,134 802 350 93 63 182 23 2,065 37 60 Sept 3,134 802 350 93 63 179 23 2,065 37 60 Oct 3,483 891 388 103 70 26 2,294 41 67 Nov 3,483 891 388 103 26 2,294 41 67 Dec.* 3,483 891 389 103 2,294 41 67 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 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) Po g r a t l u - A S r a a u b d i i a A So fr u i t c h a Spain Sweden Sw la it n z d e r- T la h n a d i- Turkey U K d n i o i n t m g e - d U gu r a u y - V zu e e n l e a - Y sl u av g i o a - 576 73 425 810 202 3,042 96 116 2,265 155 401 643 69 637 785 203 2,842 92 102 1,940 146 401 699 69 583 785 203 3,089 92 97 1,291 140 401 856 119 1,243 785 225 2,624 92 97 1,474 133 403 876 119 1,115 784 226 2,642 92 117 1,471 165 403 902 119 666 498 200 2,732 92 126 1,349 162 384 921 1Q8 410 498 200 2,909 82 130 775 148 391 1,021 117 681 541 217 3,158 89 136 800 133 425 1,022 117 706 542 220 3,162 89 136 810 133 425 1,022 117 711 542 220 3,162 89 136 810 133 425 1,022 117 714 542 220 3,162 89 136 810 133 425 1,022 117 720 542 220 3,162 89 136 810 133 425 1,022 117 721 542 220 3,162 89 136 810 133 425 1,022 117 724 542 220 3,162 89 136 810 133 425 1,022 117 734 542 220 3,162 89 136 810 133 425 1.035 117 740 542 220 3,162 89 136 797 133 425 1.036 116 738 542 220 3,162 89 136 797 133 425 1,154 129 820 602 244 3.512 99 151 148 472 1,159 129 809 602 244 3.513 99 151 472 129 802 244 3,513 99 472 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 Sept. 1973, and at $42.22 thereafter) Africa North and South America Asia Other WWoorrlldd PPeerriioodd pprroodduucc-ttiioonn 11 A So fr u i t c h a Ghana Zaire U S n ta i t t e e s d C a a d n a - M ic e o x - N ra ic g a u - a Co b l i o a m - India Japan P p h i i n li e p s - t A ra u l s i - a ot A h l e l ri 1966.. 111111,,,,,,444444444444555555......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000008888888888888888888800000000000000000000....................88888888888888888888 2222222244444444........00000000 55555555........66666666 6666666633333333........11111111 111111111111111111111111111111111111111111444444444444444444444.....................666666666666666666666 777777777.........555555555 555555555.........222222222 999999999999999999..................888888888888888888 444444444444444...............222222222222222 1111111199999999........44444444 1111111155555555........88888888 333333333333222222222222............111111111111 666666222222......999999 1967 111111,,,,,,444444111111000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000006666666666666666666688888888888888888888....................77777777777777777777 2222222266666666........77777777 55555555........44444444 5555555533333333........44444444 111111111111111111111000000000000000000000333333333333333333333.....................777777777777777777777 555555555.........888888888 555555555.........222222222 999999999999999999..................000000000000000000 333333333333333...............444444444444444 2222222233333333........77777777 1111111177777777........22222222 222222222222888888888888............444444444444 555555999999......444444 1968 111111,,,,,,444444222222000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000008888888888888888888888888888888888888888....................00000000000000000000 2222222255555555........44444444 55555555........99999999 5555555533333333........99999999 999999999999999999999444444444444444444444.....................111111111111111111111 666666666.........222222222 444444444.........999999999 888888888888888888..................444444444444444444 444444444444444...............000000000000000 2222222211111111........55555555 1111111188888888........55555555 222222222222777777777777............666666666666 666666111111......666666 1969 111111,,,,,,444444222222000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000009999999999999999999900000000000000000000....................77777777777777777777 2222222244444444........88888888 66666666........00000000 6666666600000000........11111111 888888888888888888888999999999999999999999.....................111111111111111111111 666666666.........333333333 333333333.........777777777 777777777777777777..................777777777777777777 333333333333333...............444444444444444 2222222233333333........77777777 2222222200000000........00000000 222222222222444444444444............555555555555 666666000000......000000 1970 111111,,,,,,444444555555000000......000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222288888888888888888888....................00000000000000000000 2222222244444444........66666666 66666666........22222222 6666666633333333........55555555 888888888888888888888444444444444444444444.....................333333333333333333333 666666666.........999999999 444444444.........000000000 777777777777777777..................111111111111111111 333333333333333...............777777777777777 2222222244444444........88888888 2222222211111111........11111111 222222222222111111111111............777777777777 555555444444......111111 1971* 11111111111111111111....................000000000000000000009999999999999999999988888888888888888888....................77777777777777777777 2222222244444444........44444444 66666666........00000000 5555555522222222........33333333 777777777777777777777999999999999999999999.....................111111111111111111111 555555555.........333333333 333333333.........777777777 666666666666666666..................666666666666666666 444444444444444...............111111111111111 2222222277777777........00000000 2222222222222222........22222222 222222222222333333333333............555555555555 1972* 11111111111111111111....................111111111111111111110000000000000000000099999999999999999999....................88888888888888888888 2222222277777777........55555555 55555555........33333333 5555555544444444........33333333 777777777777777777777777777777777777777777.....................222222222222222222222 555555555.........666666666 333333333.........000000000 777777777777777777..................111111111111111111 444444444444444...............000000000000000 3333333322222222........22222222 2222222233333333........00000000 222222222222888888888888............777777777777 1972—Nov 9999999999999999999911111111111111111111....................55555555555555555555 666666666666666666666.....................000000000000000000000 .........555555555 ..................777777777777777777 ...............444444444444444 222222222222............000000000000 Dec 8888888888888888888844444444444444444444....................33333333333333333333 666666666666666666666.....................333333333333333333333 ..................555555555555555555 ...............333333333333333 111111111111............999999999999 1973—Jan 8888888888888888888888888888888888888888....................22222222222222222222 666666666666666666666.....................222222222222222222222 ..................888888888888888888 ...............333333333333333 222222222222............444444444444 Feb. 8888888888888888888866666666666666666666....................55555555555555555555 666666666666666666666.....................111111111111111111111 ..................555555555555555555 ...............333333333333333 111111111111............888888888888 Mar 8888888888888888888888888888888888888888....................55555555555555555555 666666666666666666666.....................333333333333333333333 ..................555555555555555555 ...............444444444444444 Apr 8888888888888888888866666666666666666666....................66666666666666666666 666666666666666666666.....................222222222222222222222 ..................666666666666666666 ...............222222222222222 May 8888888888888888888866666666666666666666....................00000000000000000000 666666666666666666666.....................888888888888888888888 ..................666666666666666666 ...............333333333333333 June 8888888888888888888877777777777777777777....................66666666666666666666 666666666666666666666.....................444444444444444444444 ..................666666666666666666 July 8888888888888888888888888888888888888888....................33333333333333333333 555555555555555555555.....................666666666666666666666 ..................888888888888888888 Aug 9999999999999999999900000000000000000000....................22222222222222222222 555555555555555555555.....................777777777777777777777 ..................999999999999999999 Sept 8888888888888888888888888888888888888888....................22222222222222222222 555555555555555555555.....................777777777777777777777 Oct 9999999999999999999977777777777777777777....................55555555555555555555 777777777777777777777.....................000000000000000000000 Nov 666666666666666666666.....................444444444444444444444 1 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 FEDERAL RESERVE BANKS, 1973 • FEBRUARY 1974 EARNINGS AND EXPENSES (In Item Total Boston New York Philadelphia Cleveland Richmond Atlanta Current sayings Loans 110099,,443300,,558822 7,614,050 2211,,558866,,885566 6,449,366 7,136,299 10,025,720 10,801,593 77,,771100,,773300 77,,771100,,773300 UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvvttttttttttttt,,,,,,,,,,,,, ssssssssssssseeeeeeeeeeeeecccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrriiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 44,,889966,,550088,,441144 221,873,896 11,,331177,,008888,,887788 257,976,379 362,859,741 351,002.336 262,347,634 FFFFFFFFFFFFFooooooooooooorrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiigggggggggggggnnnnnnnnnnnnn cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnccccccccccccciiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 444499,,226699 19,313 111177,,220033 22,568 40,969 23,341 31,080 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 22,,667700,,333355 41,203 11,,330022,,999988 57,169 146,103 66,264 156,360 TTTTTTTTTTTTToooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll 5,016,769,330 229,548,462 1,347,806,665 264,505,482 370,183,112 361,117,661 273,336,667 CCCCCCCCCCCCCuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss SSSSSSSSSSSSSaaaaaaaaaaaaalllllllllllllaaaaaaaaaaaaarrrrrrrrrrrrriiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss ::::::::::::: OOOOOOOOOOOOOffffffffffffffffffffffffffiiiiiiiiiiiiiccccccccccccceeeeeeeeeeeeerrrrrrrrrrrrrsssssssssssss 16,892,190 1,107,634 3,476,858 1,086,768 1,006.540 1,528,856 1,348,376 EEEEEEEEEEEEEmmmmmmmmmmmmmpppppppppppppllllllllllllloooooooooooooyyyyyyyyyyyyyeeeeeeeeeeeeeeeeeeeeeeeeeesssssssssssss 216,323.791 14,518,976 53,098,352 10,843,787 13,586,409 17,337,798 18,000,906 RRRRRRRRRRRRReeeeeeeeeeeeetttttttttttttiiiiiiiiiiiiirrrrrrrrrrrrreeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr bbbbbbbbbbbbbeeeeeeeeeeeeennnnnnnnnnnnneeeeeeeeeeeeefffffffffffffiiiiiiiiiiiiitttttttttttttsssssssssssss 40.570,742 2,885,313 9,429,129 2,011,831 2,601,051 3,180,147 3,287,320 4,608,281 185,955 1,779,944 332,557 298,554 177,837 255,526 5,086,323 379,504 827,678 193,977 327,934 375,025 548,250 PPPPPPPPPPPPPooooooooooooossssssssssssstttttttttttttaaaaaaaaaaaaagggggggggggggeeeeeeeeeeeee aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd eeeeeeeeeeeeexxxxxxxxxxxxxppppppppppppprrrrrrrrrrrrreeeeeeeeeeeeessssssssssssssssssssssssssaaaaaaaaaaaaaeeeeeeeeeeeeeeeeeeeeeeeeee 57,449,988 3,300,495 7,633.417 2,636,908 5,306,387 6,106,261 6,621,759 TTTTTTTTTTTTTeeeeeeeeeeeeellllllllllllleeeeeeeeeeeeeppppppppppppphhhhhhhhhhhhhooooooooooooonnnnnnnnnnnnneeeeeeeeeeeee aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd ttttttttttttteeeeeeeeeeeeellllllllllllleeeeeeeeeeeeegggggggggggggrrrrrrrrrrrrraaaaaaaaaaaaappppppppppppphhhhhhhhhhhhh 5,587,862 292,938 1,071,178 207,548 330,810 472,267 721,919 PPPPPPPPPPPPPrrrrrrrrrrrrriiiiiiiiiiiiinnnnnnnnnnnnntttttttttttttiiiiiiiiiiiiinnnnnnnnnnnnnggggggggggggg aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd sssssssssssssuuuuuuuuuuuuuppppppppppppppppppppppppppllllllllllllliiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 19,408,840 1,195,504 3,576,248 1.012,778 1,008,073 1,899,273 2,359.483 IIIIIIIIIIIIInnnnnnnnnnnnnsssssssssssssuuuuuuuuuuuuurrrrrrrrrrrrraaaaaaaaaaaaannnnnnnnnnnnnccccccccccccceeeeeeeeeeeee 804,1 16 52,000 157,995 30,030 70,223 65,880 70,491 TTTTTTTTTTTTTaaaaaaaaaaaaaxxxxxxxxxxxxxeeeeeeeeeeeeesssssssssssss ooooooooooooonnnnnnnnnnnnn rrrrrrrrrrrrreeeeeeeeeeeeeaaaaaaaaaaaaalllllllllllll eeeeeeeeeeeeessssssssssssstttttttttttttaaaaaaaaaaaaattttttttttttteeeeeeeeeeeee 11,171,872 2,561,346 1,682,808 202,715 721.433 357,237 524,613 DDDDDDDDDDDDDeeeeeeeeeeeeeppppppppppppprrrrrrrrrrrrreeeeeeeeeeeeeccccccccccccciiiiiiiiiiiiiaaaaaaaaaaaaatttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnn 6,591,264 136,156 534,138 76,596 1,396,913 520,198 648,539 LLLLLLLLLLLLLiiiiiiiiiiiiiggggggggggggghhhhhhhhhhhhhttttttttttttt,,,,,,,,,,,,, hhhhhhhhhhhhheeeeeeeeeeeeeaaaaaaaaaaaaattttttttttttt,,,,,,,,,,,,, pppppppppppppooooooooooooowwwwwwwwwwwwweeeeeeeeeeeeerrrrrrrrrrrrr,,,,,,,,,,,,, aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd wwwwwwwwwwwwwaaaaaaaaaaaaattttttttttttteeeeeeeeeeeeerrrrrrrrrrrrr 4,595,244 265,999 814,385 188,610 620,766 358,818 375,905 MMMMMMMMMMMMMaaaaaaaaaaaaaiiiiiiiiiiiiinnnnnnnnnnnnnttttttttttttteeeeeeeeeeeeennnnnnnnnnnnnaaaaaaaaaaaaannnnnnnnnnnnnccccccccccccceeeeeeeeeeeee aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd rrrrrrrrrrrrreeeeeeeeeeeeepppppppppppppaaaaaaaaaaaaaiiiiiiiiiiiiirrrrrrrrrrrrrsssssssssssss 3,233,478 276,420 847,873 173,246 221,426 334,550 211,686 5,264,156 1,049,445 2,791,266 297,848 154,226 143,821 488,289 FFFFFFFFFFFFFuuuuuuuuuuuuurrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiitttttttttttttuuuuuuuuuuuuurrrrrrrrrrrrreeeeeeeeeeeee aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd eeeeeeeeeeeeeqqqqqqqqqqqqquuuuuuuuuuuuuiiiiiiiiiiiiipppppppppppppmmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt::::::::::::: 10,485,160 474,745 4,139,253 415,833 549,458 415,311 1,156,925 31,179,009 2,399,252 5.009.411 2,088,790 2,522,270 2,641,286 2,619,107 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 9,197,533 865,377 2,178,213 568,669 561,762 370,309 797,885 IIIIIIIIIIIIInnnnnnnnnnnnnttttttttttttteeeeeeeeeeeeerrrrrrrrrrrrr-------------OOOOOOOOOOOOOffffffffffffffffffffffffffiiiiiiiiiiiiiccccccccccccceeeeeeeeeeeee eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss*************7777777777777 -1,951 99,417 -1,454,992 118,000 217,461 -285,961 202,971 SSSSSSSSSSSSSuuuuuuuuuuuuubbbbbbbbbbbbbtttttttttttttoooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll 448,447,89? 32,046,476 97,593,154 22,486,491 31,501,676 35,998,913 40,239,950 FFFFFFFFFFFFF.............RRRRRRRRRRRRR............. cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnncccccccccccccyyyyyyyyyyyyy 33,826,299 1,580,049 6,237,084 2,052,861 2,078,256 3,500,418 3,569,407 AAAAAAAAAAAAAsssssssssssssssssssssssssseeeeeeeeeeeeessssssssssssssssssssssssssmmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss fffffffffffffooooooooooooorrrrrrrrrrrrr BBBBBBBBBBBBBoooooooooooooaaaaaaaaaaaaarrrrrrrrrrrrrddddddddddddd aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvveeeeeeeeeeeeerrrrrrrrrrrrrnnnnnnnnnnnnnooooooooooooorrrrrrrrrrrrrsssssssssssss::::::::::::: CCCCCCCCCCCCCooooooooooooonnnnnnnnnnnnnssssssssssssstttttttttttttrrrrrrrrrrrrruuuuuuuuuuuuuccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnn eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss 2 1 7 7 , , 1 2 9 1 3 8 , , 2 5 0 0 0 0 } 1,857,600 11,498,900 2,192,099 4,008,800 2,355,300 3,131,800 TTTTTTTTTTTTToooooooooooootttttttttttttaaaaaaaaaaaaalllllllllllll 526,685,898 35,484,125 115,329,138 26,731,451 37,588,752 41,854,631 46,741,157 LLLLLLLLLLLLLeeeeeeeeeeeeessssssssssssssssssssssssss rrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiimmmmmmmmmmmmmbbbbbbbbbbbbbuuuuuuuuuuuuurrrrrrrrrrrrrssssssssssssseeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt fffffffffffffooooooooooooorrrrrrrrrrrrr ccccccccccccceeeeeeeeeeeeerrrrrrrrrrrrrtttttttttttttaaaaaaaaaaaaaiiiiiiiiiiiiinnnnnnnnnnnnn fffffffffffffiiiiiiiiiiiiissssssssssssscccccccccccccaaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaagggggggggggggeeeeeeeeeeeeennnnnnnnnnnnncccccccccccccyyyyyyyyyyyyy aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss 31,568,524 1,758,482 6,481,055 1,396,991 2,732,466 1,971,469 2,776,124 495,117,374 33,725,643 108,848,083 25,334,460 34,856,286 39,883,162 44,165,033 PPPPPPPPPPPPPrrrrrrrrrrrrrooooooooooooofffffffffffffiiiiiiiiiiiiittttttttttttt aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd lllllllllllllooooooooooooossssssssssssssssssssssssss CCCCCCCCCCCCCuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss 4,521,651,953 195,822,819 1,238,958,852 239,171,021 335,326,826 321,234,499 229,171,632 AAAAAAAAAAAAAddddddddddddddddddddddddddiiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss tttttttttttttooooooooooooo cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss::::::::::::: AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 2,336,124 84,751 503,461 71,440 899,838 95,140 102,827 2,336,124 84,751 503,461 71,440 899,838 95,140 102,827 DDDDDDDDDDDDDeeeeeeeeeeeeeddddddddddddduuuuuuuuuuuuuccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss fffffffffffffrrrrrrrrrrrrrooooooooooooommmmmmmmmmmmm cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss::::::::::::: LLLLLLLLLLLLLooooooooooooosssssssssssssssssssssssssseeeeeeeeeeeeesssssssssssss ooooooooooooonnnnnnnnnnnnn sssssssssssssaaaaaaaaaaaaallllllllllllleeeeeeeeeeeeesssssssssssss ooooooooooooofffffffffffff UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvvttttttttttttt,,,,,,,,,,,,, ssssssssssssseeeeeeeeeeeeecccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrriiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 35,241,103 1,600,658 9,281,164 1,894,162 2,625,734 2,529,866 1,869,963 LLLLLLLLLLLLLooooooooooooosssssssssssssssssssssssssseeeeeeeeeeeeesssssssssssss ooooooooooooonnnnnnnnnnnnn fffffffffffffooooooooooooorrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiigggggggggggggnnnnnnnnnnnnn eeeeeeeeeeeeexxxxxxxxxxxxxccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaannnnnnnnnnnnngggggggggggggeeeeeeeeeeeee tttttttttttttrrrrrrrrrrrrraaaaaaaaaaaaannnnnnnnnnnnnsssssssssssssaaaaaaaaaaaaaccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss 47,416,528 1,991,494 12,375,714 2,323,410 4,314,904 2,465,659 3,319,157 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 331,981 30,248 60,105 24,406 4,904 52,397 35,642 82,989,612 3,622,400 21,716,983 4,241,978 6,945,542 5,047,922 5,224,762 NNNNNNNNNNNNNeeeeeeeeeeeeettttttttttttt dddddddddddddeeeeeeeeeeeeeddddddddddddduuuuuuuuuuuuuccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnn fffffffffffffrrrrrrrrrrrrrooooooooooooommmmmmmmmmmmm ((((((((((((( ————————————— ))))))))))))) cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss....................................... -80,653,489 -3,537,648 -21,213.522 -4,170,538 -6,045,704 -4,952,782 -5,121,935 NNNNNNNNNNNNNeeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss bbbbbbbbbbbbbeeeeeeeeeeeeefffffffffffffooooooooooooorrrrrrrrrrrrreeeeeeeeeeeee pppppppppppppaaaaaaaaaaaaayyyyyyyyyyyyymmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss tttttttttttttooooooooooooo UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. TTTTTTTTTTTTTrrrrrrrrrrrrreeeeeeeeeeeeeaaaaaaaaaaaaasssssssssssssuuuuuuuuuuuuurrrrrrrrrrrrryyyyyyyyyyyyy 4,440,998,464 192,285,170 1,217,745,060 235,000,484 329,281,122 316,281,717 224,049,697 DDDDDDDDDDDDDiiiiiiiiiiiiivvvvvvvvvvvvviiiiiiiiiiiiidddddddddddddeeeeeeeeeeeeennnnnnnnnnnnndddddddddddddsssssssssssss pppppppppppppaaaaaaaaaaaaaiiiiiiiiiiiiiddddddddddddd 49,139,683 2,018,707 12,549,890 2,416,994 4,400,130 2,684,548 3,565,229 PPPPPPPPPPPPPaaaaaaaaaaaaayyyyyyyyyyyyymmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss tttttttttttttooooooooooooo UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. TTTTTTTTTTTTTrrrrrrrrrrrrreeeeeeeeeeeeeaaaaaaaaaaaaasssssssssssssuuuuuuuuuuuuurrrrrrrrrrrrryyyyyyyyyyyyy (((((((((((((iiiiiiiiiiiiinnnnnnnnnnnnnttttttttttttteeeeeeeeeeeeerrrrrrrrrrrrreeeeeeeeeeeeesssssssssssssttttttttttttt ooooooooooooonnnnnnnnnnnnn FFFFFFFFFFFFF.............RRRRRRRRRRRRR............. nnnnnnnnnnnnnooooooooooooottttttttttttteeeeeeeeeeeeesssssssssssss))))))))))))) 4,340,683,483 189,416,364 1,196,836,370 229,888,440 322,347,692 308,264,120 213,799,618 51,178,300 850,100 8,358,800 2,695,050 2,533,300 5,333.050 6,684,850 792,845,050 33,507,650 206,603,950 38,896,550 71,794,750 41,564,950 55,319,550 SSSSSSSSSSSSSuuuuuuuuuuuuurrrrrrrrrrrrrpppppppppppppllllllllllllluuuuuuuuuuuuusssssssssssss,,,,,,,,,,,,, DDDDDDDDDDDDDeeeeeeeeeeeeeccccccccccccceeeeeeeeeeeeemmmmmmmmmmmmmbbbbbbbbbbbbbeeeeeeeeeeeeerrrrrrrrrrrrr 33333333333331111111111111 844,023,350 34,357,750 214,962,750 41,591,600 74,328,050 46,898,000 62,004,400 p Preliminary. NOTE.—Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • FEDERAL RESERVE BANKS, 1973 A 97 OF FEDERAL RESERVE BANKS dollars) Chicago St. Louis Minneapolis Kansas Dallas San City Francisco Item Current savings 16,287,284 3,498,812 1,792,426 7,686,648 6,247,513 10,304,015 778,388,289 177,084,559 97,099,794 192,124,993 212,600,020 666,061,895 UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvvttttttttttttt,,,,,,,,,,,,, ssssssssssssseeeeeeeeeeeeecccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrriiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss 69,226 15,194 10,307 18,949 24,403 56,716 285,432 74,396 237,953 102,363 87,053 113,041 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 795,030,231 180,672,961 99,140,480 199,932,953 218,958,989 676,535,667 CCCCCCCCCCCCCuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss SSSSSSSSSSSSSaaaaaaaaaaaaalllllllllllllaaaaaaaaaaaaarrrrrrrrrrrrriiiiiiiiiiiiieeeeeeeeeeeeesssssssssssss::::::::::::: 1,571,595 1,226,757 882,159 1,171,780 1,007,557 1,479,915 28,160,993 12,360,012 8,249.664 12,250,077 10,425,002 17,489,210 5,181,768 2,366,508 1,520,526 2,300,532 2,028,838 3,777,779 377,240 159,108 398,051 130,434 126,096 386.979 563,535 295,997 356,201 330,531 298,346 589,345 7,089,704 4,176,730 2,390,366 3,494.289 3,102,343 5,591,329 676,156 312,988 241,981 495.570 426,825 337,682 2,496,245 1,333,844 782,933 1,231,870 902,453 1,610,136 76,030 57,162 30,025 56,791 42,327 95,162 1,533,729 443,345 1,467,177 548,252 407,119 722,098 633,065 831,327 361,520 831,182 339,131 282,499 553,448 345,631 222,117 381,272 212,520 255,773 260,239 320,566 104,158 119,677 94,385 269,252 276,246 45,070 217 12,380 3,036 2,312 FFFFFFFFFFFFFuuuuuuuuuuuuurrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiitttttttttttttuuuuuuuuuuuuurrrrrrrrrrrrreeeeeeeeeeeee aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd eeeeeeeeeeeeeqqqqqqqqqqqqquuuuuuuuuuuuuiiiiiiiiiiiiipppppppppppppmmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt::::::::::::: 922,730 341,717 500,977 554,702 509,532 503,977 4,117,375 1,681,897 1,282,771 2,383,100 2,004,271 2,429,479 1,508,117 254,557 426,996 362,823 799,018 503,807 382,557 95,388 63,219 113,312 141,457 305,220 56,380,772 26,648,604 19,281,058 26,768,574 22,870,256 36,631,954 3,927,084 1,593,075 842,609 1,976,685 1,865,504 4,603,267 FFFFFFFFFFFFF.............RRRRRRRRRRRRR............. cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnncccccccccccccyyyyyyyyyyyyy AAAAAAAAAAAAAsssssssssssssssssssssssssseeeeeeeeeeeeessssssssssssssssssssssssssmmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss fffffffffffffooooooooooooorrrrrrrrrrrrr BBBBBBBBBBBBBoooooooooooooaaaaaaaaaaaaarrrrrrrrrrrrrddddddddddddd ooooooooooooofffffffffffff GGGGGGGGGGGGGooooooooooooovvvvvvvvvvvvveeeeeeeeeeeeerrrrrrrrrrrrrnnnnnnnnnnnnnooooooooooooorrrrrrrrrrrrrsssssssssssss::::::::::::: 6,961,600 1,508,800 1,023,500 1,866,300 2,422,502 5,584,500 67,269,456 29,750,479 21,147,167 30,611,559 27,185,262 46,819,721 LLLLLLLLLLLLLeeeeeeeeeeeeessssssssssssssssssssssssss rrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiimmmmmmmmmmmmmbbbbbbbbbbbbbuuuuuuuuuuuuurrrrrrrrrrrrrssssssssssssseeeeeeeeeeeeemmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt fffffffffffffooooooooooooorrrrrrrrrrrrr ccccccccccccceeeeeeeeeeeeerrrrrrrrrrrrrtttttttttttttaaaaaaaaaaaaaiiiiiiiiiiiiinnnnnnnnnnnnn fffffffffffffiiiiiiiiiiiiissssssssssssscccccccccccccaaaaaaaaaaaaalllllllllllll aaaaaaaaaaaaagggggggggggggeeeeeeeeeeeeennnnnnnnnnnnncccccccccccccyyyyyyyyyyyyy aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd 5,315,358 1,958,990 892,736 2,100,513 974,748 3,209,592 61,954,098 27,791,489 20,254,431 28,511,046 26,183,514 43,610,129 NNNNNNNNNNNNNeeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeexxxxxxxxxxxxxpppppppppppppeeeeeeeeeeeeennnnnnnnnnnnnssssssssssssseeeeeeeeeeeeesssssssssssss PPPPPPPPPPPPPrrrrrrrrrrrrrooooooooooooofffffffffffffiiiiiiiiiiiiittttttttttttt aaaaaaaaaaaaannnnnnnnnnnnnddddddddddddd lllllllllllllooooooooooooossssssssssssssssssssssssss 733,076,133 152,881,473 78,886,049 171,421,907 192,775,474 632,925,538 AAAAAAAAAAAAAddddddddddddddddddddddddddiiiiiiiiiiiiitttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss tttttttttttttooooooooooooo cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss::::::::::::: 145,672 61,838 69,899 96,446 81,479 123,333 145,672 61,838 69,899 96,446 81,479 123,333 DDDDDDDDDDDDDeeeeeeeeeeeeeddddddddddddduuuuuuuuuuuuuccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss fffffffffffffrrrrrrrrrrrrrooooooooooooommmmmmmmmmmmm cccccccccccccuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrrrrrrreeeeeeeeeeeeennnnnnnnnnnnnttttttttttttt nnnnnnnnnnnnneeeeeeeeeeeeettttttttttttt eeeeeeeeeeeeeaaaaaaaaaaaaarrrrrrrrrrrrrnnnnnnnnnnnnniiiiiiiiiiiiinnnnnnnnnnnnngggggggggggggsssssssssssss::::::::::::: 5,659,178 1,292,199 700,901 1,416,118 1,546,151 4,825,009 7,444,395 1,612,162 1,090,580 1,991,494 2,560,493 5,927,066 LLLLLLLLLLLLLooooooooooooosssssssssssssssssssssssssseeeeeeeeeeeeesssssssssssss ooooooooooooonnnnnnnnnnnnn fffffffffffffooooooooooooorrrrrrrrrrrrreeeeeeeeeeeeeiiiiiiiiiiiiigggggggggggggnnnnnnnnnnnnn eeeeeeeeeeeeexxxxxxxxxxxxxccccccccccccchhhhhhhhhhhhhaaaaaaaaaaaaannnnnnnnnnnnngggggggggggggeeeeeeeeeeeee tttttttttttttrrrrrrrrrrrrraaaaaaaaaaaaannnnnnnnnnnnnsssssssssssssaaaaaaaaaaaaaccccccccccccctttttttttttttiiiiiiiiiiiiiooooooooooooonnnnnnnnnnnnnsssssssssssss 30,350 19,269 16,762 12,966 37,724 7,208 AAAAAAAAAAAAAllllllllllllllllllllllllll ooooooooooooottttttttttttthhhhhhhhhhhhheeeeeeeeeeeeerrrrrrrrrrrrr 13,133,923 2,923,630 1,808,243 3,420,578 4,144,368 10,759,283 -12,988,251 -2,861,793 -1,738,344 -3,324,132 -4,062,890 -10,635,950 720,087,882 150,019,680 77,147,705 168,097,775 188,712,584 622,289,588 7,729,090 1,666,567 1,147,795 2,053,131 2,686,541 6,221,061 PPPPPPPPPPPPPaaaaaaaaaaaaayyyyyyyyyyyyymmmmmmmmmmmmmeeeeeeeeeeeeennnnnnnnnnnnntttttttttttttsssssssssssss tttttttttttttooooooooooooo UUUUUUUUUUUUU.............SSSSSSSSSSSSS............. TTTTTTTTTTTTTrrrrrrrrrrrrreeeeeeeeeeeeeaaaaaaaaaaaaasssssssssssssuuuuuuuuuuuuurrrrrrrrrrrrryyyyyyyyyyyyy (((((((((((((iiiiiiiiiiiiinnnnnnnnnnnnnttttttttttttteeeeeeeeeeeeerrrrrrrrrrrrreeeeeeeeeeeeesssssssssssssttttttttttttt ooooooooooooonnnnnnnnnnnnn FFFFFFFFFFFFF.............RRRRRRRRRRRRR............. 704,086,842 146,823,563 74,484,209 164,539,344 183,063,194 607,130,727 8,271,950 1,529,550 1,515,700 1,505,300 2,962,850 8,937,800 124,150,150 26,955,100 18,132,600 33,396,800 43,153,350 99,369,650 132,422,100 28,484,650 19,648,300 34,902,100 46,116,200 108,307,450 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 BANKING OFFICES • FEBRUARY 1974 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks MMuuttuuaall ssaavviinnggss bbaannkkss AAAllllll Member Nonmember TTTyyypppeee ooofff oooffffffiiiccceee aaannnddd tttyyypppeee ooofff ccchhhaaannngggeee bbbaaannnkkksss TToottaall Total Na- State Total Insured Non- Insured 1 Nontional insured insured Banks (head office): Dec. 31, 1934 1111166666,,,,,000006666633333 1111155555,,,,,444448888844444 66,,444422 55,,446622 998800 9999999,,,,,,,000000044444442222222 7777777,,,,,,,666666699999999999999 11,,334433 68 511 Dec. 31, 1941 1111144444,,,,,888882222266666 1111144444,,,,,222227777788888 66,,661199 55,,111177 11,,550022 7777777,,,,,,,666666666666662222222 6666666,,,,,,,888888811111110000000 885522 52 496 Dec. 31, 1947 2 1111144444,,,,,777771111144444 1111144444,,,,,111118888811111 66,,992233 55,,000055 11,,991188 7777777,,,,,,,222222266666661111111 6666666,,,,,,,444444477777778888888 778833 194 339 Dec. 31, 1951 1111144444,,,,,666661111188888 1111144444,,,,,000008888899999 66,,884400 44,,993399 11,,990011 7777777,,,,,,,222222255555552222222 6666666,,,,,,,666666600000002222222 665500 202 327 Dec. 31, 1962 1111133333,,,,,999993333388888 1111133333,,,,,444442222277777 66,,004477 44,,550033 11,,554444 7777777,,,,,,,333333388888880000000 7777777,,,,,,,000000077777772222222 330088 J31 180 Dec. 31, 1963 1111144444,,,,,000007777788888 1111133333,,,,,555556666699999 66,,110088 44,,661155 11,,449933 7777777,,,,,,,444444466666661111111 7777777,,,,,,,111111177777777777777 228844 330 179 Dec. 31, 1964 1111144444,,,,,222226666666666 1111133333,,,,,777776666611111 66,,222255 44,,777733 11,,445522 7777777,,,,,,,555555533333336666666 7777777,,,,,,,222222266666662222222 227744 327 178 Dec. 31, 1965 1111144444,,,,,333330000099999 1111133333,,,,,888880000044444 66,,222211 44,,881155 11,,440066 7777777,,,,,,,555555588888883333333 7777777,,,,,,,333333322222220000000 226633 328 177 Dec. 31, 1966 1111144444.....222227777744444 1111133333,,,,,777777777700000 66,,115500 44,,777799 11,,335511 7777777,,,,,,,666666622222220000000 7777777,,,,,,,333333388888885555555 223355 330 174 Dec. 31, 1967 1111144444,,,,,222222222222222 1111133333,,,,,777772222211111 66,,007711 44,,775588 11,,331133 7777777,,,,,,,666666655555550000000 7777777,,,,,,,444444433333339999999 221111 331 170 Dec. 31, 1968 1111144444,,,,,111117777799999 1111133333,,,,,666667777799999 55,,997788 44,,771166 11,,226622 7777777,,,,,,,777777700000001111111 7777777,,,,,,,555555500000004444444 119977 333 167 Dec. 31, 1969 1111144444,,,,,111115555588888 1111133333,,,,,666666666622222 55,,887711 44,,666699 11,,220022 7777777,,,,,,,777777799999991111111 7777777,,,,,,,555555599999995555555 119966 330 166 Dec. 31, 1970 1111144444,,,,,111118888811111 1111133333,,,,,666668888888888 55,,776688 44,,662211 11,,114477 7777777,,,,,,,999999922222220000000 7777777,,,,,,,777777733333335555555 118855 328 165 Dec. 31, 1971 1111144444,,,,,222227777733333 1111133333,,,,,777778888844444 55,,772288 44,,660000 11,,112288 8888888,,,,,,,000000055555556666666 7777777,,,,,,,888888877777775555555 118811 326 163 Dec. 31, 1972 1111144444,,,,,444441111133333 1111133333,,,,,999992222288888 55,,770055 44,,661133 11,,009922 8888888,,,,,,,222222222222223333333 8888888,,,,,,,000000011111117777777 220066 325 160 Dec. 31, 1973 1111144444,,,,,666665555533333 1111144444,,,,,111117777722222 55,,773377 44,,666611 11,,007766 8888888,,,,,,,444444433333335555555 8888888,,,,,,,222222222222229999999 220066 321 160 Branches, additional offices, and facilities: Dec. 31, 1934 33333,,,,,111113333333333 33333,,,,,000000000077777 22,,222244 11,,224433 998811 777777788888883333333 1111111\\\\\\\SS 33 i:2 6 Dec. 31, 1941 33333,,,,,666669999999999 33333,,,,,555556666644444 22,,558800 11,,556655 11,,001155 999999988888884444444 999999933333332222222 5522 32 103 Dec. 31, 1947 2 44444,,,,,333333333322222 44444,,,,,111116666611111 33,,005511 11..887700 11,,118811 1111111,,,,,,,111111111111110000000 1111111,,,,,,,000000044444443333333 6677 124 47 Dec. 31, 1951 55555,,,,,333338888833333 55555,,,,,111115555533333 33,,883377 22,,337700 11,,446677 1111111,,,,,,,333333311111116666666 1111111,,,,,,,222222277777775555555 4411 165 65 Dec. 31, 1962 1111122222,,,,,999993333322222 1111122222,,,,,333334444455555 99,,664499 66,,664400 33,,000099 2222222,,,,,,,666666699999996666666 2222222,,,,,,,666666644444446666666 5500 466 121 Dec. 31, 1963 1111144444,,,,,111112222222222 1111133333,,,,,444449999988888 1100,,661133 77,,442200 33,,119933 2222222,,,,,,,888888888888885555555 2222222,,,,,,,888888833333335555555 5500 502 122 Dec. 31, 1964 1111155555.....222227777755555 1111144444,,,,,666660000011111 1111,,445577 88,,115566 33,,330011 3333333.......111111144444444444444 3333333,,,,,,,000000099999994444444 5500 549 125 Dec. 31, 1965 1111166666,,,,,444447777711111 1111155555,,,,,777775555566666 1122,,229988 88,,996644 33,,333344 3333333,,,,,,,444444455555558888888 3333333,,,,,,,444444400000004444444 5544 583 132 Dec. 31, 1966 1111177777,,,,,666666666655555 1111166666,,,,,999990000088888 1133,,112299 99,,661111 33,,551188 3333333,,,,,,,777777777777779999999 3333333,,,,,,,777777711111117777777 6622 614 143 Dec. 31, 1967 1111188888,,,,,777775555577777 1111177777,,,,,999992222288888 1133,,885566 1100,,118833 33..667733 4444444,,,,,,,000000077777772222222 4444444,,,,,,,000000022222226666666 4466 669 160 Dec. 31, 1968 1111199999,,,,,999991111111111 1111199999,,,,,000001111133333 1144,,555533 1100,,998855 33,,556688 4444444,,,,,,,444444466666660000000 4444444,,,,,,,444444411111114444444 4466 729 169 Dec. 31, 1969 2222211111,,,,,111119999966666 2222200000,,,,,222220000088888 1155,,220044 1111,,772277 33,,447777 5555555,,,,,,,000000000000004444444 4444444,,,,,,,999999955555557777777 4477 810 178 Dec. 31, 1970 2222222222,,,,,777772222277777 2222211111,,,,,666664444433333 1166,,119911 1122,,553366 33,,665555 5555555,,,,,,,444444455555552222222 5555555,,,,,,,444444400000004444444 4488 891 193 Dec. 31, 1971 2222244444,,,,,222229999999999 2222233333,,,,,111110000044444 1177,,008855 1133,,227722 33,,881133 6666666,,,,,,,000000011111119999999 5555555,,,,,,,999999977777779999999 4400 983 212 Dec. 31, 1972 2222255555,,,,,999997777777777 2222244444,,,,,666662222222222 1177,,995544 1133,,997744 33,,998800 6666666,,,,,,,666666666666668888888 6666666,,,,,,,666666622222223333333 4455 1,113 242 Dec. 31, 1973 2222277777,,,,,999994444466666 2222266666,,,,,444445555544444 1188,,996666 1144,,991166 44,,005500 7777777,,,,,,,444444488888888888888 7777777,,,,,,,444444444444442222222 4466 1,241 251 Changes—Dec. 31, 1973 Banks: New banks .... 333334444444444 333334444444444 111166 9900 2266 222222222222228888888 222222211111116666666 1122 Suspensions -----33333 -----33333 -------3333333 -------3333333 Consolidations and absorptions: Banks converted into branches -----9999911111 -----8888877777 -----4444444444 ----33336666 ---888 -------44444443333333 -------44444442222222 --11 --44 Other -----1111100000 -----1111100000 -----44444 ----2222 ---222 -------6666666 -------6666666 Interclass changes: Nonmember to national 88888 8888 -------8888888 -------8888888 Nonmember to State member 33333 3333 -------3333333 -------3333333 State member to national 88 ----8888 State member to nonmenber ----22228888 ----22228888 22228888 222888 National to nonmember ... ----22221111 ---222111 22221111 222111 Noninsured to national 1111 111 ----iiii Noninsured to insured 99 ----9999 Noninsured to State member 11111111 iiiiii ----1111 Net change ... . 222224444400000 222224444444444 3333333322222222 444444888888 ------111111666666 222222221111111122222222 222222211111112222222 ----4444 Number of banks, Dec. 31, 1973 1111144444,,,,,666665555533333 1111144444,,,,,111117777722222 55555555,,,,,,,,777777773333333377777777 444444,,,,,,666666666666111111 111111,,,,,,000000777777666666 88888888,,,,,,,,444444443333333355555555 8888888,,,,,,,222222222222229999999 206 333322221111 160 Branches and additional offices: 11111,,,,,999996666688888 11111,,,,,888883333333333 11111111,,,,,,,,000000008888888888888888 888888777777444444 222222111111444444 777777774444444455555555 777777744444444444444 1 111122226666 9 Banks converted 9999933333 8888899999 5555555544444444 555555111111 333333 3333333355555555 33333335555555 4444 Discontinued . . . -----8888800000 -----7777799999 --------6666666633333333 ------444444222222 ------222222111111 --------1111111166666666 -------11111116666666 Sale of branch -----77777 -----77777 --------1111111155555555 ------111111000000 ------555555 88888888 8888888 Interclass changes: Nonmember to national . 8888888811111111 888888111111 --------8888888811111111 -------88888881111111 Nonmember to State member 1111111100000000 1111100000 --------1111111100000000 -------11111110000000 State member to national 4444 -----4444444444 State member to nonmember --9900 -----9999900000 9900 9900 National to State member ---222 22222 National to nonmember --4444 ---444444 4444 4444 Facilities reclassified as branches 22222 22222 222222222 222222222 Other -----22222 ---------333333333 ---------444444444 22222 22222 --11 11111,,,,,999997777744444 11111,,,,,888883333377777 111111111,,,,,,,,,000000000222222222000000000 999999999555555555000000000 7700 888881111166666 1 112288 9 Number of branches and additional offices, 888881111177777 Dec. 31, 1973 2222277777,,,,,777774444433333 2222266666,,,,,222225555511111 111111111888888888,,,,,,,,,777777777999999999888888888 111111111444444444,,,,,,,,,777777777666666666000000000 44,,003388 77777,,,,,444440000077777 46 11,,224411 251 77777,,,,,444445555533333 Banking facilities: 3 Established 77777 77777 444444444 444444444 33333 33333 -----1111100000 -----1111100000 ---------999999999 ---------999999999 Other ---------111111111 11111 Facilities reclassified as branches . .... ----2222 ----2222 ---------222222222 ---------222222222 Net change ----5555 ----5555 ---------888888888 ---------888888888 333 333 Number of facilities Dec 31 1973 222200003333 222200003333 111111111666666666888888888 111111111555555555666666666 1122 333555 333555 1 Insured mutual savings banks figures include one to three member 3 Provided at military and other Govt, establishments through arrangemutual savings banks, 1941 to 1962 inclusive, not reflected in total com- ments made by the Treasury Dept. mercial bank figures. 2 Series revised as of June 30, 1947. The revision resulted in an addition NOTE.—Beginning with 1959, figures include all banks in Alaska and of 115 banks and nine branches. Hawaii, but nonmember banks in territories and possesssions are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1974 • FEDERAL RESERVE PAR LIST A 99 NUMBER OF PAR AND NONPAR BANKING OFFICES Par TToottaall Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other area Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including other areas: Dec. 31, 1972 13,822 24,850 13,643 24,733 5,705 18,001 7,938 6,732 179 117 Dec. 31, 1973 14,062 26,687 13,915 26,594 5,737 19,015 8,178 7,579 147 93 F.R. districts, Dec. 31, 1973 Boston 383 1,883 383 1,883 212 1,207 171 676 New York i 480 4,121 480 4,121 333 3,596 147 525 Philadelphia 421 1,935 421 1,935 281 1,305 140 630 Cleveland 769 2,323 769 2,323 456 1,881 313 442 Richmond 761 3,808 753 3,807 379 2,376 374 1,431 Atlanta 1,831 2,078 1,787 2,017 607 1,238 1,180 779 44 Chicago 2,644 2,763 2,644 2,763 936 1,783 1,708 980 St. Louis 1,409 1,182 1,360 1,167 431 587 929 580 15 Minneapolis 1,386 337 1,386 337 501 174 885 163 Kansas City 2,140 460 2,140 460 816 261 1,324 199 Dallas 1,416 314 1,370 298 642 148 728 150 16 San Francisco 422 5,483 422 5,483 143 4,459 279 1,024 State or area, Dec. 31, 1973: Alabama 287 369 287 369 111 264 176 105 Alaska 10 73 10 73 5 65 5 8 Arizona 15 405 15 405 4 280 11 125 Arkansas 255 227 206 212 83 133 123 79 49 15 California 174 3,393 174 3,393 65 2,951 109 442 Colorado 255 42 255 42 143 24 112 18 Connecticut 68 518 68 518 26 316 42 202 Delaware 18 118 18 118 5 4 13 114 District of Columbia 15 117 15 117 13 108 2 9 Florida 640 67 640 67 284 12 356 55 Georgia. .. 436 558 436 558 72 359 364 199 Hawaii. .. . 8 147 8 147 2 10 6 137 Idaho 24 179 24 179 10 154 14 25 Illinois 1,167 175 1,167 175 491 103 676 72 Indiana. . . 409 777 409 777 178 470 231 307 Iowa 668 369 668 369 148 109 520 260 Kansas.. .. 612 89 612 89 196 49 416 40 Kentucky., 342 424 342 424 91 247 251 177 Louisiana. 245 490 167 413 61 254 106 159 77 Maine 44 260 44 260 23 151 21 109 Maryland 112 643 112 643 46 387 66 256 Massachusetts... 153 852 153 852 92 632 61 220 Michigan 339 1,400 339 1,400 206 1,136 133 264 Minnesota 739 24 739 24 226 13 513 11 Mississippi 181 449 181 449 48 201 133 248 Missouri 683 203 683 203 171 73 512 130 Montana 149 12 149 12 98 9 51 3 Nebraska 444 56 444 56 131 34 313 22 Nevada 8 96 8 96 5 83 3 13 New Hampshire. 80 89 80 89 50 75 30 14 New Jersey.... 221 1,251 221 1,251 154 1,069 67 182 New Mexico 73 177 73 177 41 109 32 68 New York 299 2,881 299 2,881 230 2,705 69 i 176 North Carolina. 89 1,445 89 1,445 28 727 61 718 North Dakota.. 169 74 169 74 47 16 122 58 Ohio 498 1,525 498 1,525 329 1,277 169 248 Oklahoma 448 91 448 91 209 58 239 33 Oregon 46 400 46 400 8 281 38 119 Pennsylvania.. . 419 2,059 419 2,059 280 1,472 139 587 Rhode Island. . , 16 207 16 207 5 114 11 93 South Carolina. 91 548 83 547 24 356 59 191 South Dakota.. 159 108 159 108 60 76 99 ' 32 Tennessee 320 658 320 658 82 373 238 285 Texas 1,265 108 1,253 108 590 29 663 79 12 Utah 53 171 53 171 16 123 37 48 Vermont 38 109 38 109 22 43 16 66 Virginia 271 1,045 271 1,045 157 793 114 252 Washington.... 87 638 87 638 29 530 58 108 West Virginia. . 210 15 210 15 124 5 86 10 Wisconsin 616 309 616 309 161 97 455 212 Wyoming 71 2 71 2 55 1 16 1 Other areas: American Samoa2. 1 1 1 Guam2 1 7 j 7 7 1 Pureto Rico 3 14 207 14 207 1 19 13 188 Virgin Islands3. . . . 8 30 8 30 1 29 7 1 1 Includes 18 New York City branches of three insured nonmember gin Islands) are included above in the table as nonmember banks; and Puerto Rican banks. nonmember branches in Puerto Rico include eight branches of Canadian 2 American Samoa and Guam assigned to the San Francisco District banks. for check clearing and collection purposes. All member branches in Gu 3 a m Pu e a r r t e o b R ra ic n o c h a e n s d o t f h C e a V li ir fo g r in n i I a s l a a n n d d s N a e s w si g Y n o ed rk t o B t a h n e k N s. ew York District Pu N er O to T E R .— ico I , n c a l n u d d e t s h e a l V l i c r o g m in m Is e l r a c n i d al s o b n a n w k h in ic g h o c f h f e ic c e k s s i a n r e t h d e r a U w n n i , t e i d n cl S u t d a i t n e g s ; for purposes of Regulation J, "Check Clearing and Collection." Member 203 banking facilities. Number of banks and branches differs from that branches in Puerto Rico and all except eight in the Virgin Islands are in the table on page A-98 of the Feb. 1974 BULLETIN, because this table branches of banks located in California, New York and Pennsylvania. includes banks in Puerto Rico and the Virgin Islands but excludes banks Certain branches of Canadian banks (two in Puerto Rico and five in Vir- and trust companies on which no checks are drawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS 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 Employment Board DIVISION OF RESEARCH AND STATISTICS 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, Deputy 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 KEITH D. ENGSTROM, Director DIVISION OF SUPERVISION HELEN B. JUNZ, Associate Adviser CHARLES W. WOOD, Assistant Director AND REGULATION t NORM AN S. FIELEKE, Assistant Adviser FREDERIC SOLOMON, Director OFFICE OF THE CONTROLLER BRENTON C. LEAVITT, Deputy Director fOn loan from the Federal Reserve Bank of Boston. FREDERICK R. DAHL, Assistant Director JOHN KAKALEC, Controller JACK M. EGERTSON, Assistant Director JOHN M. DENKLER, Assistant Controller JANET O. HART, Assistant Director JOHN N. LYON, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES JOHN T. MCCLINTOCK, Assistant Director THOMAS A. SIDMAN, Assistant Director WALTER W. KREIMANN, Director WILLIAM W. WILES, Assistant Director DONALD E. ANDERSON, Assistant Director JOHN D. SMITH, Assistant Director *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL OPEN MARKET COMMITTEE ARTHUR F. BURNS, Chairman ALFRED HAYES, Vice Chairman JOHN J. BALLES J. DEWEY DAANE GEORGE W. MITCHELL ANDREW F. BRIMMER DARRYL R. FRANCIS FRANK E. MORRIS JEFFREY M. BUCHER ROBERT C. HOLLAND JOHN E. SHEEHAN ROBERT P. MAYO ARTHUR L. BROIDA, Secretary *ROBERT SOLOMON, Economist MURRAY ALTMANN, Assistant Secretary (International Finance) NORMAND R. V. BERNARD, Assistant LEON ALL C. ANDERSEN, Associate Economist Secretary RALPH C. BRYANT, Associate Economist THOMAS J. O'CONNELL, General Counsel ROBERT W. EISENMENGER, Associate Economist EDWARD G. GUY, Deputy General Counsel GEORGE GARVY, Associate Economist JOHN NICOLL, Assistant General Counsel LYLE E. GRAMLEY, Associate Economist J. CHARLES PARTEE, Senior Economist JOHN E. REYNOLDS, Associate Economist STEPHEN H. AXILROD, Economist KARL A. SCHELD, Associate Economist (Domestic Finance) KENT O. SIMS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager, System Open Market Account FEDERAL ADVISORY COUNCIL THOMAS I. STORRS, FIFTH FEDERAL RESERVE DISTRICT, President JAMES F. ENGLISH, JR., FIRST FEDERAL RESERVE DISTRICT, Vice President 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 LAWRENCE A. MERRIGAN, SIXTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH 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 103 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 W.M. Pierce John F. Breen Louisville 40201 James C. Hendershot Donald L. Henry Memphis 38101 C. Whitney Brown 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. Bailies Joseph F. Alibrandi John B. 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 104 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 105 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- QUIREMENTS AND CHECK COLLECTION. 7/72. OVER SERIES. 3/65. YIELDS ON NEWLY ISSUED CORPORATE BONDS. RESEARCH ON BANKING STRUCTURE AND PER- 9/72. FORMANCE, Staff Economic Study by Tynan RECENT ACTIVITIES OF FOREIGN BRANCHES OF Smith. 4/66. U.S. BANKS. 10/72. A REVISED INDEX OF MANUFACTURING CAPACITY, REVISION OF CONSUMER CREDIT STATISTICS. Staff Economic Study by Frank de Leeuw with 10/72. Frank E. Hopkins and Michael D. Sherman. 11/66. 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. INTEREST COST EFFECTS OF COMMERCIAL BANK EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. 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 106 FEDERAL RESERVE BULLETIN • FEBRUARY 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- PORATIONS. 10/73. OPEN MARKET OPERATIONS IN 1972. 6/73. MONEY SUPPLY IN THE CONDUCT OF MONETARY CHANGES IN BANK LENDING PRACTICES, 1972. 7/73. POLICY. 11/73. BANKING AND MONETARY STATISTICS, 1972. Se- U.S. ENERGY SUPPLIES AND USES. 12/73. lected series of banking and monetary statistics for TREASURY AND FEDERAL RESERVE FOREIGN EX- 1972 only. 3/73 and 7/73. CAPACITY UTILIZATION IN MAJOR MATERIALS IN- CHANGE OPERATIONS, INTERIM REPORT. 12/73. DUSTRIES. 8/73. FINANCIAL DEVELOPMENTS IN THE FOURTH TREASURY AND FEDERAL RESERVE FOREIGN EX- QUARTER OF 1973. 2/74. CHANGE OPERATIONS. 9/73. REVISION OF THE MONEY STOCK MEASURES CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- AND MEMBER BANK RESERVES AND DEPOSITS. MERCIAL BANKS. 9/73. 2/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers', 11, 31, 33 Demand deposits: Agricultural loans of commercial banks, 22, 24 Adjusted, commercial banks, 14, 17, 23 Arbitrage, 93 Banks, by classes, 18, 23, 27 Assets and liabilities (See also Foreigners): Ownership by individuals, partnerships, and Banks, by classes, 18, 22, 23, 24, 37 corporations, 30 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Nonfinancial corporations, current, 48 Turnover, 14 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 54, 55, 56 Accumulated at commercial banks for payment of Production index, 58, 59 personal loans, 30 Banks, by classes, 18, 23, 27, 37 Federal Reserve Banks, 12, 13, 88 Bank credit proxy, 17 Postal savings, 23 Bankers' balances, 23, 26 Subject to reserve requirements, 17 (See also Foreigners, claims on, and liabilities to) Discount rates (See Interest rates) Banking offices: Discounts and advances by Reserve Banks (See Loans) Changes in number, 98 Dividends, corporate, 48 Par and nonpar offices, number, 99 Dollar assets, foreign, 75, 81 Banks for cooperatives, 38 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Earnings and expenses, Federal Reserve Banks, 96 Yields and prices, 34, 35 Earnings and hours, manufacturing industries, 65 Branch banks: Employment, 62, 64, 65 Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Brokerage balances, 85 Farm mortgage loans, 49, 50 Business expenditures on new plant and equipment, 48 Federal agency obligations, 11, 12, 13, 14 Business indexes, 62 Federal finance: Business loans (See Commercial and industrial loans) Receipts and outlays, 40, 41 Treasury operating balance, 40 Federal funds, 7, 22, 24, 28, 33 Capacity utilization, 62 Federal home loan banks, 38, 39, 51 Capital accounts: Federal Home Loan Mortgage Corporation, 53 Banks, by classes, 18, 23, 28 Federal Housing Administration, 49, 50, 51, 52, 53 Federal Reserve Banks, 12, 13 Federal intermediate credit banks, 38, 39 Central banks, 92, 94 Federal land banks, 38, 39 Certificates of deposit, 28 Federal National Mortgage Assn., 38, 39, 52 Coins, circulation, 15 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 17, 22, 31 Earnings, expenses, and dividends, 96 Weekly reporting banks, 24, 29 U.S. Govt, securities held, 4, 12, 14, 42, 43 Commercial banks: Federal Reserve credit, 4, 6, 12, 14 Assets and liabilities, 17, 18, 22, 23, 24 Federal Reserve notes, 12, 13, 15, 96 Banking offices, changes in number, 98 Federally sponsored credit agencies, 38, 39 Consumer loans held, by type, 55 Finance companies: Deposits at, for payment of personal loans, 30 Loans, 24, 54, 55, 57 Loans sold outright, 31 Paper, 31, 33 Number, by classes, 18 Financial institutions, loans to, 22, 24 Real estate mortgages held, by type, 50 Float, 4 Commercial paper, 31, 33 Flow of funds, 70 Condition statements (See Assets and liabilities) Foreign: Construction, 62, 63 Currency operations, 11, 12, 13, 75, 81 Consumer credit: Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Instalment credit, 54, 55, 56, 57 Exchange rates, 91 Noninstalment credit, by holder, 55 Trade, 73 Consumer price indexes, 62, 66 Foreigners: Consumption expenditures, 68, 69 Claims on, 82, 83, 88, 89, 90 Corporations: Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Profits, taxes, and dividends, 48 Security issues, 46, 47 Security yields and prices, 34, 35 Gold: Cost of living (See Consumer price indexes) Certificates, 12, 13, 15 Currency and coin, 5, 9, 23 Earmarked, 88 Currency in circulation, 5, 15, 16 Net purchases by United States, 74 Customer credit, stock market, 36 Production, 95 Reserves of central banks and govts., 94 Stock, 4, 75 Debits to deposit accounts, 14 Government National Mortgage Assn., 52 Debt (See specific types of debt or securities) Gross national product, 68, 69 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 108 FEDERAL RESERVE BULLETIN • FEBRUARY 1974 Hours and-earnings, manufacturing industries, 65 Production, 58-61, 62 Housing permits, 62 Profits, corporate, 48 Housing starts, 63 Real estate loans: Income, national and personal, 68, 69 Banks, by classes, 22, 25, 37, 50 Industrial production index, 58-61, 62 Delinquency rates on home mortgages, 53 Instalment loans, 54, 55, 56, 57 Mortgage yields, 35, 51, 52, 53 Insurance companies, 37, 42, 43, 50, 51 Type of holder and property mortgaged, 49-53 Insured commercial banks, 20, 22, 30, 98 Reserve position, basic, member banks, 7 Interbank deposits, 18, 23 Reserve requirements, member banks, 9 Interest rates: Reserves: Business loans by banks, 32 Central banks and govts., 94 Federal Reserve Banks, 8 Commercial banks, 23, 26, 28 Foreign countries, 92, 93 Federal Reserve Banks, 12, 13 Money market rates, 33 Member banks, 5, 6, 17, 23 Mortgage yields, 51, 52, 53 U.S. reserve assets, 75 Prime rate, commercial banks, 32 Residential mortgage loans. 35, 49, 50, 51, 52, 53 Time and savings deposits, maximum rates, 10 Retail credit, 54 Yields, bond and stock, 34 Retail sales, 62 International capital transactions of U.S., 76-90 International institutions, 74, 75, 92, 94 Saving: Inventories, 68 Flow of funds series, 70 Investment companies, issues and assets, 47 National income series, 68 Investments (See also specific types of investments): Savings and loan assns., 38, 43, 51 Banks, by classes, 18, 22, 25, 26, 37 Savings deposits (See Time deposits) Commercial banks, 17 Savings institutions, principal assets, 37, 38 Federal Reserve Banks, 12, 14 Securities (See also U.S. Govt, securities): Life insurance companies, 37 Federally sponsored agencies, 38, 39 Savings and loan assns., 38 International transactions, 84, 85 New issues, 45, 46, 47 Labor force, 64 Yields and prices, 34, 35 Life insurance companies (See Insurance companies) Silver coin, 15 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 13, 72, 75 Banks, by classes, 18, 22, 24, 37 State and local govts.: Commercial banks, 17, 18, 22, 24, 29, 31, 32 Deposits, 23, 27 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Holdings of U.S. Govt, securities, 42, 43 Insurance companies, 37, 50, 51 New security issues, 45, 46 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Ownership of securities of, 22, 26, 37 Savings and loan assns., 38, 51 Yields and prices of securities, 34, 35 State member banks, 20, 30, 98 Manufacturers: Stock market credit, 36 Capacity utilization, 62 Stocks (See also Securities): Production index, 59, 62 New issues, 46, 47 Margin requirements, 10 Yields and prices, 34, 35 Member banks: Assets and liabilities, by classes, 18, 22 Tax receipts, Federal, 41 Banking offices, changes in number, 98 Time deposits, 10, 17, 18, 23, 27 Borrowings at Federal Reserve Banks, 6, 12 Treasury cash, Treasury currency, 4, 5, 15 Number, by classes, 18 Treasury deposits, 5, 12, 13, 40 Reserve position, basic, 7 Treasury operating balance, 40 Reserve requirements, 9 Reserves and related items, 4, 6, 17 Unemployment, 64 Mining, production index, 59, 61 U.S. balance of payments, 72 Mobile home shipments, 63 U.S. Govt, balances: Money market rates (See Interest rates) Commercial bank holdings, 23, 27 Money stock and related data, 16 Member bank holdings, 17 Mortgages (See Real estate loans and Residential mortgage Treasury deposits at Reserve Banks, 5, 12, 13, 40 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 18, 22, 25, 37, 42, 43 Mutual savings banks, 27, 37, 42, 43, 50, 98 Dealer transactions, positions, and financing, 44 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 National banks, 20, 30, 98 Foreign and international holdings, 12, 81, 84, 88 National defense expenditures, 41, 68 International transactions, 81, 84 National income, 68, 69 New issues, gross proceeds, 46 Nonmember banks, 20, 22, 23, 30, 98 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Open market transactions, 11 Ownership, 42, 43 Yields and prices, 34, 35 Par and nonpar banking offices, number, 99 United States notes, 15 Payrolls, manufacturing index, 62 Utilities, production index, 59, 61 Personal income, 69 Postal savings, 23 Veterans Administration, 49, 50, 51, 52, 53 Prices: Consumer and wholesale commodity, 62, 66 Weekly reporting banks, 24 Security, 35 Prime rate, commercial banks, 32 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Detroit^ Omafta* LonctwHigfT J)J • Kansas Cittj^ It. Louis \ V-fucHm0? y -r . Scfariottel 1 OkiakomaCitA — ? a n t a \/ Dallas® | }(6) / Jiouston XewOrCta** >anAntmio< Miami -Drawn by Z H? 6zrt a C° THE FEDERAL RESERVE S Y S T EM Q) iv 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 http://fraser.stlouisfed.org/ • Federal Reserve Bank Facilities Federal Reserve Bank of St. Louis