Federal Reserve Bulletin, 1974-04

FED ER A L RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy;-elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In 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 4 □ VOLUME 60 □ APRIL 1974 CONTENTS 235 Recent Developments in U.S. Balance of Payments 246 Capacity Utilization for Major Materials: Revised Measures 252 Changes in Time and Savings Deposits at Commercial Banks, July-October 1973 263 Changes in Bank Lending Practices, 1973 268 Statement to Congress 275 Record of Policy Actions of the Federal Open Market Committee 284 Law Department 321 Announcements 323 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 92 Board of Governors and Staff A 94 Open Market Committee and Staff; Federal Advisory Council A 95 Federal Reserve Banks and Branches A 96 Federal Reserve Board Publications A 99 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

R e c e n t D e v e lo p m e n ts in th e U .S . B a la n c e o f P a y m e n ts 1973 was a year of considerable change in the U.S. international economic position. At the beginning of the year the U.S. trade balance was still in large deficit and confidence in the dollar was weak. By the end of the year our position had been completely reversed—the trade balance was then in large surplus and the dollar was appreciating against foreign currencies. Strong upward movements in world prices during the year, particularly of basic commodities, affected both U.S. trade flows and the domestic economy. The oil crisis had an immediate impact U.S. INTERNATIONAL on the balance of payments, and it greatly affected consideration ECONOMIC POSITION of the near-term evolution of the U.S. payments position. Under pressures of massive speculative capital flows early in 1973 and continuing uncertainties later, exchange rates evolved toward greater flexibility. With this greater flexibility in exchange rates, the U.S. international position can no longer be assessed in terms of the traditional balance of payments measures alone. Under a regime of fixed rates, the official settlements balance measured external payments pressure by indicating the extent to which central banks needed to buy or sell foreign exchange to keep exchange rates within their fixed relationships. With freely fluctuating exchange rates, changes in exchange rates would be the important indicators of external balance. However, under the mixed regime of managed floating rates in operation now, not only “Value of U.S. dollar” is based on variations in exchange rates but also surpluses or deficits in reserve market exchange rates weighted by country shares in world trade in 1972. transactions must be examined in appraising the over-all balance “Official settlements balance” is of payments position. (For a more detailed discussion see the Dept, of Commerce data at season­ ally adjusted annual rates. October 1973 Bulletin, pp. 713-23.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN □ APRIL 1974 Movements in the foreign exchange value of the dollar and in the official reserve transactions balance need not always be in the same direction, since the official settlements balance depends on the particular balance of payments situations of individual foreign countries and the intervention decisions of their central banks. For example, in the second quarter of 1973 the dollar depreciated sharply, on average, yet the United States had an official settlements surplus. However, the two indicators did move broadly together over the course of 1973. Early in the year, confidence in the dollar plummeted, partly because the U.S. trade balance had continued in heavy deficit throughout 1972. In the face of heavy speculative dollar outflows from the United States, foreign central banks made large-scale dollar purchases in an effort to stabilize exchange rates, as evidenced by the $10.5 billion deficit in official reserve transac­ tions for the first quarter. An official 10 per cent devaluation of the dollar in February and continued market intervention by foreign authorities failed to stem the speculative flow. In February U.S. BALANCE OF PAYMENTS, 1971-73 In billions of dollars; quarterly data at seasonally adjusted annual rates 1973 Item 1971 1972 1973 Q1 Q2 Q3 Q4 Exports of goods and services ........................................... 66.3 73.5 102.7 90.2 97.2 105.0 118.7 Merchandise, excluding military ...................................... 42.8 48.8 70.3 60.9 66.7 72.6 80.8 Military sales ................................................................. 1.9 1.2 2.4 1.4 1.8 2.1 4.1 Other services ................................................................. 8.7 9.6 11.6 11.1 1 1.3 11.6 12.2 Investment income .......................................................... 12.9 13.9 18.6 16.7 17.3 18.6 21.5 Imports of goods and services .......................................... -65.5 -78.1 -95.8 -89.4 -94.8 -96.4 -102.8 Merchandise, excluding military ...................................... -45.5 -55.7 -69.6 -64.7 -68.0 -70.1 -75.4 Military expenditures ...................................................... -4.8 -4.7 -4.5 -4.7 -4.7 -4.3 -4.4 Other services ................................................................. -10.3 — 11.6 -12.9 - 12.6 - 13.2 - 12.6 -13.2 Investment income .......................................................... -4.9 -6.1 -8.8 -7.4 -8.8 -9.3 -9.8 Balance on goods (merchandise) .......................................... -2.7 -6.9 .7 -3.8 -1.3 2.4 5.4 Balance on goods and services .......................................... .8 -4.6 6.9 .7 2.4 8.6 15.9 Private and U.S. Govt, unilateral transfers, net.................. -3.6 -3.7 -3.9 -3.0 -4.3 -3.5 -4.6 Balance on current account .............................................. -2.8 -8.4 3.0 -2.2 -1.8 5.0 11.2 U.S. Govt, capital flows, net, outflows (—)......................... -2.4 -1.3 -1.5 -1.3 .3 -1.5 -3.4 Long-term private capital flows, net, outflows (—) ............ -4.4 - .2 - .4 -1.2 6.7 -6.9 U.S. direct investment abroad ...................................... -4.9 -3.4 -4.9 -8.1 -3.8 -1.9 -5.6 Foreign direct investment in U.S.................................... - .1 2 2.1 1.1 2.1 3.0 2.0 U.S. purchases of foreign securities .............................. - 1.0 - 6 - .8 .2 - .5 - .8 - 2.1 Foreign purchases of U.S. securities ............................. 2J 4.3 4.1 7.0 2.0 4.7 2.7 Other long-term capital flows, net ................................. - .6 - .6 - .9 - .1 - 1.0 1.6 -3.9 Basic balance [current account and long-term capital]........... -9.6 -9.8 1.2 -3.5 -2.7 10.2 .9 Short-term capital flows, net, outflows (—)......................... — 10.1 1.9 -1.7 -22.8 2.2 2.7 11.0 U.S. short-term capital ................................................. -3.4 -3.0 -6.6 -15.5 — 2.2 -2.3 -6.5 Foreign short-term capital ............................................. -6.7 4.9 4.9 -7.3 4.4 5.0 17.5 Errors and omissions, net ................................................ -10.8 -3.1 -4.8 -15.6 1.9 -4.4 -1.1 SDR allocations ............................................................. .7 .7 Balance on official settlements ........................................... -29.8 -10.3 -5.3 -41.9 1.4 8.5 10.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 237 several important currencies were allowed to fluctuate and by mid-March most other major foreign countries had ceased holding the rates for their currencies within stated margins of a fixed rate against the dollar. Between January and mid-July 1973, the dollar depreciated by an average of nearly 10 per cent against major for­ eign currencies. (Developments in foreign exchange markets in 1973 are discussed at length in the September 1973 and March 1974 Bulletins.) The situation reversed in the second half of 1973. The dollar exchange rate stabilized in the third quarter with the emergence of a U.S. trade surplus, and rose strongly following the oil crisis in October because of expectations that the payments position of foreign industrial countries would be more adversely affected than that of the United States. Meanwhile, as foreign countries sold dollars to slow the rise in the value of the dollar against their currencies, the official reserve transactions balance showed a large surplus. A more useful measure of the underlying trends in the balance of payments is the basic balance—the sum of trade and other current-account transactions and long-term capital flows. Early in 1973, the basic balance was in deficit, but it moved into surplus by midyear. For the year as a whole there was a net surplus, of $1.2 billion, the first surplus since 1957. This large swing from a deficit of $10 billion in 1972 was the result of a dramatic improvement in the current account, as exports of goods and services exceeded imports by nearly $7 billion in 1973. Net long-term capital flows were almost the same as in 1972, but there were important changes in the composition of capital flows during 1973. MERCHANDISE TRADE The U.S. trade balance was in surplus by $0.7 billion in 1973, after having registered a deficit of nearly $7 billion in 1972 and of $2.7 billion in 1971. The trade balance showed a steady improvement throughout 1973, shifting into a surplus after midyear. The largest improvement was with Japan and the six original members of the European Economic Community, the countries against which the dollar had depreciated the most. The turnaround in the U.S. balance of trade in 1973 was sparked by an increase of 44 per cent in the value of exports, which far exceeded the 25 per cent rise in imports. The exceptional increase in these values reflected largely the sharp advances in prices of both exports and imports. The average price of U.S. exports rose nearly 17 per cent in 1973, about a third of the increase in total value. The rise in import prices was equally large and accounted for the major portion of the increased value of imports. Three factors that had major effects on both the volumes and the prices of U.S. trade flows in 1973 were the depreciation of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN □ APRIL 1974 CHART 1 U.S. TRADE BALANCE improves in 1973 Dept, of Commerce data at seasonally adjusted annual rates, balance of payments basis. “Real” is in terms of 1967 dollars. the dollar, the sharp acceleration in world economic activity, and poor harvests abroad. The depreciation of the dollar, which improved the competitive position of the United States, resulted in higher volumes of exports and lower volumes of imports. Because of the lagged response of international trade flows to exchange rate realignments, 1973 was the first year in which significant volume effects were felt from the depreciation that had begun in the second quarter of 1971. Higher dollar prices for both exports and imports have also resulted from the depreciation of the dollar. For basic commodities, which are traded competitively at similar prices throughout the world, dollar prices have risen partly because the depreciation of the dollar has meant that foreign buyers, with the same local currency expenditures, can purchase (and spend) more dollars. For finished goods, which are more heterogeneous, dollar prices have also risen U.S. AGRICULTURAL EXPORTS by amounts that reflect Producers’ judgments about their buyers’ sensitivity to price changes. This applies to goods sold by U.S. producers in foreign markets and to goods marketed by foreign suppliers in the United States. More importantly, the unusual world economic situation—with nearly all industrial countries, including the United States, in an expansionary phase at the same time—led to a sharp increase in CURRENT DOLLARS both the volume and the value of world trade. This acceleration in world economic activity led to the sharpest increases in basic 1967 DOLLARS commodity prices since the Korean war. These increases were attributable, in part, to low inventories of commodities at the beginning of the upswing and, in part, to a rekindling of inflationary Dept, of Commerce data at season- expectations, which shifted demand toward goods and away from ally adjusted annual rates, balance of payments basis. financial assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 239 NONAGRICULTURAL EXPORTS Exports. In 1973 U.S. exports were $70.3 billion, compared with $48.8 billion in 1972. Nearly one-half of the increase in total INDUSTRIAL SUPPLIES exports last year resulted from a near-doubling in the value of agricultural exports to $18 billion. Prices of agricultural exports rose by more than 50 per cent and volume by 25 per cent. The extraordinary increase in demand for U.S. agricultural CURRENT DOLLARS products was caused primarily by poor harvests in other major 1967 DOLLARS grain-producing countries. In addition to very heavy shipments of U.S. grain to the Soviet Union, large quantities were sold to Japan, India, and Korea. The People’s Republic of China, which also FINISHED MANUFACTURES became a major buyer of U.S. wheat, was second only to the Soviet CURRENT DOLLARS Union as a market in 1973. Rising demand and limited supplies of alternative protein feeds helped increase soybean exports. For example, the revaluation of the yen and uncertainties about future supply availabilities en­ couraged the Japanese, who rely heavily on imported foodstuffs, to buy large quantities of U.S. soybeans. Because of the sharp Dept, of Commerce data at season- increase in soybean exports in the first half of 1973, export controls ally adjusted annual rates, end-use commodity categories. were temporarily imposed in July to preserve domestic stocks. Cotton was the other major agricultural commodity that showed a large export gain in 1973; these exports increased because of a rising demand for cotton fabrics and a limited supply of man-made fibers. U.S. exports of nonagricultural goods rose from $39.3 billion in 1972 to $52.4 billion in 1973. There were large gains in both industrial materials and finished goods. In addition to the stimulus provided by higher foreign industrial output and the dollar depre­ ciation, the domestic price control program played a role in en­ couraging exports of industrial materials. Besides such traditional export items as copper and aluminum, there were also shipments of other nonferrous metals, such as lead and zinc, which are not ordinarily exported. Exports of steel scrap rose so rapidly in the first half of 1973 that export controls were imposed to ease the pressures on domestic supply. WORLD EXPORTS OF In 1973 U.S. exports of both machinery and consumer goods MANUFACTURES also rose significantly. Most of the increase in exports of these goods was in volume terms, since their prices rose only slightly until the latter part of the year. The upturn in foreign demand accounted in part for these increases in volume. The fact that dollar export prices showed only a moderate increase after the depreciation of the dollar indicates that exports were also helped by a substantial drop in their costs to foreign customers in terms of their own currencies. As a consequence, the U.S. share of world exports of manufactures in real terms increased in 1973 after declining Dept, of Commerce data at season­ ally adjusted annual rates. steadily from the mid-1960’s to 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN □ APRIL 1974 Imports. In 1973 the value of U.S. imports was $69.6 billion, nearly $14 billion higher than in 1972. Fuel imports accounted for $4 billion of this increase, as both the volume and the value of imported fuels rose. All of the increase in the volume of fuels was in the first three quarters of the year, before the Middle East embargo. During that period, imports of petroleum averaged 6.5 million barrels a day, compared with an average of 5 million barrels a day in 1972. With the embargo, imports dropped, averaging about 6 million barrels a day in both January and February 1974. However, as a result of the increases in prices imposed by the major oil-exporting countries, the average import price of oil rose to $9.25 a barrel in February 1974, nearly triple the average price in the months preceding the embargo. With the lifting of the embargo at the end of March, the volume of oil imported to the United States is expected to return to close to pre-embargo rates by the middle of 1974. MERCHANDISE IMPORTS In 1973 U.S. imports of nonfuel products rose $10 billion to EXCLUDING FUELS about $60.8 billion, as imports of commodities in all major cate­ gories—food, industrial supplies, capital goods, and consumer goods—rose in value. However, nearly all of the increase in value represented higher prices. In fact, the volume of total nonfuel imports did not grow after the first quarter of 1973. Imports of industrial supplies, excluding fuel, were little changed in volume from 1972 despite the strong growth of U.S. output Dept, of Commerce data at season­ ally adjusted annual rates. in 1973. Capacity limitations abroad may have restrained the growth of these imports. In addition, U.S. Government sales from stockpiles of such commodities as aluminum may have reduced the need for imports of some industrial materials. The performance of imports of finished goods gives evidence of the continuing impact of the depreciation of the dollar. After having shown large advances in previous years, the volumes of both imported consumer durable and imported consumer nondura­ ble goods increased only marginally in 1973 or even declined in spite of the rapid growth in the U.S. economy. For example, the quantity of radios and television sets imported in 1973 was only slightly higher than in 1972. Imports of these goods rose from Taiwan, Hong Kong, and Korea—countries that had not allowed the value of their currencies against the dollar to change signifi­ cantly in the last 2 years. In contrast, imports of these products from Japan, still the major supplier, have fallen sharply since 1971, in part because the depreciation of the dollar encouraged the establishment of production facilities in the United States by Japa­ nese firms. Voluntary export constraints may also have been a factor in reducing imports from Japan. Imports of cars from Europe and Japan declined in quantity for the second straight year. The realignment of exchange rates proba­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 241 bly encouraged producers in those countries to divert their ship­ ments to non-U.S. markets. However, sales in this country of foreign cars remained strong in 1973, and dealers drew down inventories. The strength in sales of these cars in the first part of the year reflected heavy “bargain buying” out of existing inventories following the U.S. devaluation in February 1973. Toward the end of the year, as a result of the energy crisis, sales were boosted by the shift toward smaller cars. An exception to the slowdown in the volume of imports of finished goods last year was the continued increase in imports of capital equipment. Imports of agricultural machinery advanced sharply in response to expanded U.S. production of grain, and the rise in imports of other industrial equipment paralleled the expansion in domestic investment. TRADE IMPACT ON The dramatic swing in the trade position in 1973 and the steep U.S. ECONOMY rises in prices of exports and imports had pronounced impacts on both prices and output in the United States. Perhaps the largest impact on domestic prices resulted from the very sharp rises in the prices of foodstuffs and basic industrial materials—goods that are marketed competitively at similar dollar prices throughout the world. As foreign buyers sought large quantities of U.S. agricultural goods that were in short supply and that were not subject to domestic price controls, the dollar prices of these com­ modities rose, both abroad and in the United States. For those basic commodities that were generally under price controls, the higher export and import prices could not be immedi­ ately transmitted to the domestic prices. Consequently, with do­ mestic prices lower than foreign prices, domestic firms were in­ duced to expand exports, and shortages in the United States resulted. For example, as a result of the 35 per cent average spread between export and domestic prices in 1973, U.S. producers of fertilizers exported such a large portion of their output that domestic supplies of some types of fertilizer were actually reduced. In recognition of this type of problem, the planned decontrol of prices was accelerated and the Cost of Living Council removed many com­ modities from controls after mid-1973. Among those exempted from control were prices of copper scrap in August, fertilizers in October, and many nonferrous metals at the beginning of De­ cember. With the removal of the controls, domestic prices of these commodities moved up sharply toward world price levels. From the fourth quarter of 1972 to the fourth quarter of 1973, U.S. wholesale prices rose by nearly 40 per cent for foodstuffs and by more than 45 per cent for other basic industrial materials. It is estimated that about a third of the 7.2 per cent rise in the GNP Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN □ APRIL 1974 deflator during these four quarters is attributable to the higher prices of these basic commodities. The domestic price level may also be affected when prices of imported finished goods rise. However, increases in these prices should not have a major direct impact on the U.S. price level, since imports of finished goods account for a relatively small portion of domestic expenditures. More important would be the indirect effect on the U.S. price level that would occur if domestic producers decided to raise their own prices because of reduced competition from abroad. Pressures on the domestic price level may also have resulted from the increased production needed to supply the larger volume of net exports (exports minus imports) that accom­ panied the dollar depreciation. As domestic production for both exports and substitutes for imports expanded in 1973, the resultant pressure on capacity may have been sufficient to raise costs and prices, given the existing high rates of capacity utilization. The metals industry provides an illustration. In 1973, net exports Changes in of metals increased, absorbing an additional 4 per cent of industry OUTPUT and NET EXPORTS output. Without such a change, the average capacity utilization rate for the year might have been as much as 3 percentage points lower than it actually was. According to the Federal Reserve series, GNP GOODS OUTPUT the capacity utilization rate for metals in 1973 was 91.7 per cent, the highest level since the mid-1950’s. To generalize, the increase in the volume of net exports in 1973 NET EXPORTS represented about 20 per cent of the increase in the volume of ■ riflft total U.S. goods output, which rose by about 7.5 per cent from 1972 to 1973. As domestic demand began to slow after the first quarter of 1973, the contribution of the increase in net exports to the growth of domestic goods output was even greater. In the Absolute change in quantity from preceding quarter at seasonally ad­ fourth quarter the rise in net exports represented nearly one-half justed annual rates. the total increase in output of goods. Thus there are several channels through which the increases in prices of exports or imports have affected domestic prices. One should not conclude, however, that the depreciation of the dollar, which was needed to correct the U.S. balance of payments position, was the major source of inflationary pressure. Rather it was probably the cumulative worldwide demand pressures that provided the mainspring for the current inflationary acceleration. SERVICE The expansion in world economic activity, the depreciation of the TRANSACTIONS dollar, and the Middle East crisis significantly affected service transactions. Net investment income increased by more than $2 billion in 1973. Receipts of income and fees from U.S. direct investments abroad rose by approximately $3.5 billion, compared with an increase of $1 billion in 1972 and of $1.5 billion in 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 243 The large increase in direct investment receipts was mainly the result of a sharp rise in earnings, particularly in the fourth quarter, of petroleum companies abroad. In addition, with higher interest rates abroad, U.S. earnings on other investment assets were nearly $1 billion higher than they had been in 1972. However, higher interest rates in the United States, combined with an increase in the amount of U.S. liabilities to foreigners, raised income payments to foreigners by more than $2.5 billion. Net military sales also increased substantially last year as shipments of military equipment rose sharply, particularly to Israel in the fourth quarter. U.S. military expenditures abroad were slightly lower in 1973 than in 1972. Net payments on travel and transportation were down by nearly $500 million in 1973, the first decline in such payments since 1968. The depreciation of the dollar encouraged foreigners to travel in the United States and slowed the rate of increase in U.S. travel abroad. CAPITAL FLOWS The balance on private long-term capital showed a slight deficit— about $0.4 billion—for the year. An increase of 43 per cent in direct investment outflows, from $3.4 billion in 1972 to $4.9 billion in 1973, was offset by a phenomenal increase in foreign direct investment in the United States, from $0.2 billion to $2.1 billion, and by a continued high level of foreign purchases of U.S. stocks DIRECT INVESTMENT and bonds. Much of the direct investment outflow took place in the first quarter, when U.S. corporations probably shifted funds to their foreign affiliates in anticipation of a decline in the foreign exchange value of the dollar. This outflow increased considerably again in the fourth quarter, following the relaxation of controls by the Office of Foreign Direct Investment in November and December. This would seem to indicate that U.S. parent companies were substitut­ ing U.S. funds for foreign funds that because of the controls had been used to finance foreign affiliates. Seasonally adjusted annual rates. Capital expenditures by the foreign affiliates of petroleum com­ panies were estimated to have the sharpest increases in 1973, espe­ cially for the development of new supplies from areas such as the North Sea and Indonesia. The biggest relative increases were in investment outflows to Japan, following the relaxation by that country of foreign investment controls, and to the United Kingdom, with an improved competitive position following successive de­ valuations of the pound. The surge in the inflow of foreign direct investment to the United States in 1973 was a much greater departure from earlier experi­ ence. This investment was widely distributed among manufac­ turing, retail, and service industries and included sizable takeovers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN □ APRIL 1974 COMPARATIVE of existing U.S. concerns as well as investments in new enterprises. UNIT LABOR COSTS Most of the inflow came from the United Kingdom, Japan, and Canada. Probably the most important new stimulus to such an inflow was the improvement that had taken place over the past several years in the U.S. competitive position. Wages and other costs have risen less in the United States than in other industrial countries in recent years, and the dollar depreciation between mid-1970 and mid-1973 reduced the dollar cost of U.S. labor relative to foreign labor by an average of 20 per cent. For example, increases in unit labor costs measured in U.S. dollars were much Unit labor costs are in U.S. dollars. greater in Japan and Germany than in the United States over the 1970-73 period. Other long-term capital flows in 1973 were dominated by a continued high level of foreign purchases of U.S. stocks and bonds, though the inflow dipped abruptly in the second quarter, when the dollar was approaching its lowest point, and again in the fourth quarter, when stock prices fell off sharply. PRIVATE CAPITAL RECORDED FLOWS There was a net outflow of private short-term capital (excluding errors and omissions) of about $1.7 billion for the year. This modest annual net flow, however, included huge outflows early in the year and large inflows later. The net outflow for the year may have been related to an expansion of trade credit, associated with the sharp increase in the value of U.S. exports in 1973. During the first quarter of 1973 the recorded amount of short-term capital outflows exceeded inflows by $5.7 billion, and another large net outflow was probably included in the errors and omissions figure of $3.9 billion. A flow of this magnitude would have to be attributed largely to speculation that the dollar would be devalued or other currencies revalued. In the second and third quarters there were moderate net inflows of short-term capital, after market interest rates in the United States moved up sharply. Then in the fourth quarter, the net inflow rose substantially to nearly $3.0 billion. This inflow persisted despite a decline in short-term U.S. interest rates relative to those abroad, suggesting that the market anticipated an appreciation of the dollar. RECENT DEVELOPMENTS The effects of the energy crisis and the removal of capital controls AND OUTLOOK in January of this year are two reasons why the trends in the balance of payments over the course of 1973 cannot readily be projected into 1974. The trade surplus in January-February declined from the high levels in the fourth quarter of 1973 as a consequence of sharply higher oil prices. Preliminary data show that the official settlements balance shifted into deficit in February as the net short-term private capital inflow of late 1973 was reversed. At the same time, after appreciating by 14 per cent on average from October 1973 to late January 1974, the dollar depreciated by more than 8 per cent from late January to early April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 245 In the coming months, both higher prices of oil imports and a reduced value of agricultural exports will have negative influences on the trade balance. The continuation of inflation, both here and abroad, is expected to raise the values of other exports and imports in 1974. However, it is difficult to make any assessment of the net effect of these price movements on trade. The net balance on services this year will be influenced mainly by changes in income flows. Changes in income receipts, as in 1973, will reflect largely the magnitude of the earnings of oil companies operating abroad. Income payments will be affected primarily by interest costs on accumulated liabilities to foreigners. The outlook for capital flows is even more uncertain than that for trade and service flows. A great deal depends upon the impact of the removal of capital controls, and on the direction of invest­ ment in world capital markets of the huge additional revenues being accumulated by the oil-producing countries. The capital controls that were removed in late January of this year included the interest equalization tax on U.S. purchases of certain foreign securities, Federal Reserve voluntary foreign credit restraint guidelines to limit credit extended to foreigners by U.S. banks and other financial institutions, and Commerce Department limits on the transfers of U.S. funds to foreign affiliates of U.S. corporations. While the impact of the removal of these controls is still unclear, capital will be freer to move into and out of the United States in response to speculative pressures and changes in relative interest rates. A recent Commerce Department survey has indicated that foreign affiliates of U.S. corporations plan another year of large spending for plant and equipment in 1974. Finally, the growth in international payments to oil-producing countries and the investment of these revenues in the Euro-currency market and national financial markets will have important conse­ quences for the U.S. capital account position. The foreign exchange earnings of major oil-exporting countries in 1974 could amount to more than $80 billion, up from $27 billion in 1973. The great bulk of the increased earnings will probably not be spent on imports but rather will be invested in international capital markets. In the past, the greater part of the revenue from oil has been deposited in the Euro-currency market, and that market is probably capable of absorbing a good portion of the increase in oil revenue. The extent to which these additional flows into the Euro-currency market will affect the U.S. capital account depends on the asset preferences of the oil producers, as well as of other market participants, and on relative conditions in various money and capital markets. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capacity Utilization for Major Materials: Revised Measures The Board’s quarterly measures of output, ca­ capacity. Methods by which the data are esti­ pacity, and capacity utilization for major mate­ mated and aggregated are summarized on pages rials, published initially in the Bulletin for 250 and 251. August 1973, have been expanded and im­ proved. The important changes encompass (1) NEW SERIES AND WEIGHTS the addition of three series for the chemicals A notable improvement in the major materials industry, (2) a broadened representation of the series is the addition of three series in the steel industry, (3) the publication of data for chemicals industry—plastics materials, syn­ six industrial subgroups, (4) a modified treat­ thetic rubber, and basic inorganic chemicals ment of the data for capacity utilization in the n.e.c.—as represented in the total industrial petroleum refining industry, and (5) an im­ production (IP) index. Table 1 lists all of the proved method of aggregating the capacity uti­ individual materials series represented, together lization series. with their relative importance in both the major According to the revised series, aggregate materials measure and in IP. Prior to the addi­ utilization is generally within 1 to 2 percentage tion of these three series for chemicals, the only points of the old level, and the quarterly move­ chemicals component in the major materials ments are similar to the old series, as shown measure had been man-made fibers. As a result in Chart 1. The new method of aggregation has of these additions there has been a substantial eliminated the erratic quarterly movements that improvement in the measurement of capacity had occurred in the old series for aggregate utilization in the chemicals industry. The intro­ duction of plastics materials is especially im­ portant to this series’ usefulness as an indicator Note.—This article was prepared by Nathan Ed­ of capacity utilization conditions for all materi­ monson of the Board’s Business Conditions Section, Division of Research and Statistics. als because of the degree of substitutability that CHART 1 CAPACITY UTILIZATION for MAJOR MATERIALS: OLD and NEW Digitized for FRASER http://fraser.stlouisfed.2o4rg6/ Federal Reserve Bank of St. Louis

exists among plastics, wood products, metals, is smaller relative to the value-added weight of and paper in many applications. the parts of other industries—for example, Another change that affected both the series paper, pulp, and board—used in the major ma­ for individual output and that for capacity utili­ terials measure than is the weight of the entire zation relates to the steel industry. Generally steel industry relative to the entirety of these speaking, the underlying capacity data for that same other industries. Consequently, it was felt industry refer only to the output of raw steel. that the impact of steel industry events on the The value-added weight for raw steel, however, economy had been unrealistically understated in the weighting system used previously. In the new aggregation the weight of the steel series has TABLE 1 been increased to reflect total basic iron and steel CLASSIFICATION AND WEIGHTS OF MAJOR as represented in IP, rather than raw steel only. MATERIALS IN INDUSTRIAL PRODUCTION INDEX This change is in keeping with the close tech­ nological relation between growth in raw steel Proportion of SIC Group and series value added in capacity and growth in capacity in the broader number 1967 “basic iron and steel” category, which includes pig iron and coke in addition to raw steel. This Total IP ............................. 100.00 Materials in IP ................. 37.79 change results in steel being shown more realis­ tically in the major materials measure. Major materials* ................ 8.45 100.00 Among the individual industries only one Durable* ............................ 2.27 26.86 change was made—for petroleum refining—to Plywood and prefab, products 2432,3 .29 3.43 Cement ................................ 324 .27 3.20 comply with the American Petroleum Institute’s Metals* .............................. 1.71 20.24 Basic iron and steel .......... 331 part 1.34 15.86 revised method of calculating refinery operating Pig iron ........................ .46 5.44 rates. These rates had previously been based on Raw steel ..................... .72 8.52 Coke and products __ .16 1.89 the ratio of crude oil runs to the capacity of Copper ........................... .10 1.18 Aluminum ........................ 3334 .27 3.20 crude distillation units. Although other materi­ als—such as unfinished oils and natural gas Nondurable* ...................... 6.18 73.14 Fabrics ................................ 221-4 1.05 12.43 liquids—have been included with crude oil Cotton ............................. 221,4 .61 1.22 Man-made ........................ 222 .30 3.55 in increasingly significant volumes for a number Wool .............................. 223 .14 1.66 of years, these had not been represented in the Cotton and man-made yarns .. 2281,2,4 .27 3.20 Paper and pulp* .................. 1.40 16.57 earlier compilations. The revised data, which Wood pulp ...................... 261 .51 6.04 Paper .............................. 262 .54 6.39 recognize these changes in refinery practices, Paperboard ...................... 263 .35 4.14 Chemicals and petroleum* __ 3.46 40.95 raised the refining utilization rates by about 5 Basic inorganic chemicals percentage points in 1973.1 Because the data n.e.c. ........................... 2819 part .55 6.51 Plastics materials .............. 2821 .55 6.51 necessary to carry out this revision prior to 1973 Synthetic rubber .............. 2822 .13 1.54 Man-made fibers .............. 2823,4 .58 6.86 are not available, the amount of the revision Petroleum refining ............ 291,9 1.65 19.53 change was distributed back to 1964, when inputs other than crude oil were much less Supplemental groups: Textiles* ......................... 1.90 22.49 significant than they are today. Fabrics and yarns ......... 221-4, 2281,2,4 1.32 15.63 The proportions shown in Table 1 for the Man-made fibers ............ 2823,4 .58 6.86 major materials series are based on value-added amounts in 1967, which are used to combine * Capacity, output, and utilization data for these series are available separately. Output data for the other series listed are shown separately in IP. *In addition to the revised measures of refinery input, Note.—Source and description of output series are shown the American Petroleum Institute has made an allowance in Table A2 in Industrial Production—1971 Edition. Capacity in its capacity measures for existing refining capacity data are from the same sources except in the following in­ that does not meet pollution control standards. Such an stances: steel (since 1959), various industry sources; copper and aluminum, American Bureau of Metal Statistics Year­ allowance is not used for the major materials capacity book; paper series, American Paper Institute; petroleum refin­ calculations of refining capacity mainly because it was ing, Oil & Gas Journal; and synthetic rubber and basic inor­ assumed that pollution control standards would be re­ ganic chemicals (n.e.c.), Stanford Research Institute Chemi­ laxed somewhat during a shortage of petroleum prod­ cal Economics Handbook. ucts. Digitized for FRASER 247 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE BULLETIN □ APRIL 1974 the series beginning with the first quarter of Historical utilization rate data for the six group­ 1967. As in the IP index, linked weights for ings are shown in Table 3. initial-year periods—1963, 1958, 1954, and 1947—are used to aggregate the series for the IMPACT OF THE REVISIONS period prior to 1967. Revised historical data for As formerly constituted—that is, before both the capacity, output, and utilization rates appear in addition of the chemicals series and the increase Table 2 below. in the weight for steel—the major materials group accounted for 6.6 per cent of total IP NEW INDUSTRY GROUPINGS value added. As a result of the chemicals addi­ The revisions in representation and weights tions and the steel re weighting, the major mate­ make possible publication of six new industry rials series represent 8.5 per cent of total IP groupings of the materials series. There is now and 9.5 per cent of value added in manufac­ a division between durable and nondurable turing in 1967. The revision of the petroleum products. In addition, separate subtotals are refining series did not affect the weights of the compiled for metals, textiles, paper, and chem­ major materials series. icals and petroleum, as shown in Table 1. This Chart 1 shows the extent to which the revision table identifies the individual series by classifi­ has changed the historical picture for the old cation and relative importance in the total IP utilization series in terms of levels and cyclical measure and by market grouping for materials. patterns. In the third quarter of 1973 the revised TABLE 2 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION IN MAJOR MATERIALS Seasonally adjusted, 1967 output = 100 1 II III IV Avg. I II III IV Avg. I 11 in IV Avg. Year Output , Capacity Capacity utilization 1948 ......... 41.7 43.2 42.4 41.4 42.2 48.9 49.6 50.2 50.9 49.9 85.3 87.1 84.4 81.2 84.5 1949 41.0 37.9 38.8 40.9 39.7 51.5 51.9 52.3 52.8 52.1 79.7 73.1 74.2 77.4 76.1 1950 43 3 45 3 47 7 49 4 46 4 53 3 53.9 54.5 55 j 54.2 81.3 84 0 87.5 89.6 85.6 1951 ......... 51.4 52.1 49.2 47*9 50.1 55^6 56.0 56.5 56*9 563 92.3 92.9 87*1 84’1 89.1 1952 ......... 48.5 45.7 48.5 51.9 48.7 57.4 58.1 58.7 59.4 58.4 84.5 78.7 82.6 87.5 83.3 1953 ......... 52.7 54.8 53.0 50.0 52.6 60.1 60.8 61.6 62.3 61.2 87.7 90.0 86.0 80.3 86.0 1954 ......... 49.2 49.7 50.8 53.5 50.8 63.2 64.1 65.1 66.0 64.6 77.8 77.5 78.0 81.1 78.6 1955 ......... 57.0 60.3 61.8 62.5 60.4 66.8 67.4 68.0 68.6 67.7 85.3 89.4 90.9 91.1 89.2 1956 ......... 63.3 63.0 59.4 63.8 62.4 69.4 70.2 71.1 72.1 70.7 91.3 89.7 83.5 88.4 88.3 1957 ......... 62.8 62.2 63.6 60.2 62.2 73.0 74.0 75.1 76.2 74.6 85.9 84.1 84.6 78.9 83.4 1958 55.1 54.6 60.7 64.7 58.8 77.2 78.1 79.1 80.1 78.6 71.3 69.9 76.8 80.9 74.7 1959 ......... 67.3 71.8 60.5 65.2 66.2 81.1 82.2 83.0 83.9 82.5 83.0 87.4 72.9 77.7 80.2 1960 ......... 71.4 68.3 66.1 63.3 67.3 84.7 85.2 85.8 86.4 85.5 84.3 80.1 77.0 73.3 78.7 1961 ......... 63.4 67.9 72.6 75.1 69.7 87.2 88.0 88.8 89.7 88.4 72.7 77.1 81.7 83.7 78.8 1962 ......... 75.7 73.6 74.0 75.0 74.6 90.8 91.6 92.4 93.1 92.0 83.3 80.4 80.1 80.6 81.1 1963 ......... 76.4 80.3 79.7 81.1 79.4 93.8 94.5 95.3 95.9 94.9 81.4 85.0 83.7 84.6 83.7 1964 ......... 83.3 85.6 88.9 91.0 87.2 96.9 97.9 99.0 99.9 98.4 86.0 87.5 89.7 91.1 88.6 1965 ......... 92.1 92.9 95.5 94.8 93.8 101.3 102.6 104.0 105.5 103.4 90.8 90.5 91.8 89.9 90.8 1966 ......... 98.5 100.5 102.4 100.8 100.5 106.9 108.4 110.0 111.3 109.1 92.2 92.7 93.0 90.6 92.1 1967 ......... 99.1 97.9 98.8 103.9 99.9 1 12.7 113.7 1 14.8 115.8 114.3 87.9 86.1 86.1 89.7 87.4 1968 ......... 104.8 107.7 107.3 108.5 107.1 117.2 119.1 120.9 122.5 119.9 89.4 90.5 88.7 88.5 89.3 1969 ......... 110.9 112.8 114.6 116.1 1 13.6 124.3 125.5 126.9 128.1 126.2 89.2 89.9 90.3 90.7 90.0 1970 ......... 112.7 111.9 113.3 113.1 1 12.7 129.0 130.3 131.5 132.2 130.7 87.3 85.9 86.2 85.5 86.2 1971 ......... 115.0 117.3 1 13.1 115.6 1 15.3 133.1 134.4 135.9 137.2 135.1 86.4 87.3 83.2 84.3 85.3 1972 ......... 120.9 124.2 128.1 131.6 126.2 138.8 140.1 141.4 142.9 140.8 87.1 88.7 90.6 92.1 89.6 1973 ......... 133.8 135.1 138.4 138.3P136.4 144.2 145.5 146.7 148.0 146.1 92.8 92.8 94.3 93.4 93.3 1974 ......... 136.0P 149.2P 91.2P Note.—Calculation of output and capacity rates may differ slightly from the utilization rate shown because of rounding. Sources are listed in note to Table 1. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED CAPACITY UTILIZATION MEASURES 249 TABLE 3 CAPACITY UTILIZATION RATES FOR SELECTED INDUSTRY GROUPS OF MAJOR MATERIALS Seasonally adjusted data in per cent I II III IV Avg. I II III IV Avg. I II III IV Avg. Year Durable goods Metals Nondurablegoods 1948 ......... 844 8? 1 871 87.4 853 88.7 86.6 93.3 93.5 90.5 86.3 89.3 84.4 80.2 85.1 1949 ....... 853 78 1 733 60.7 744 91.9 82.7 76.1 56.2 76.7 78.9 72.4 75.1 82.7 77.3 1950 ......... 789 879 918 92.8 878 81.7 91.3 97.1 96.5 91.7 82.7 83.7 87.2 89.5 85.8 1951 95.5 954 916 90.1 932 98.6 99.3 97.3 96.2 97.8 92.3 93. 1 86.7 83.3 88.9 1952 . 898 730 76 1 91.3 825 94.9 70.8 74.1 94.1 83.5 83.9 81.0 85.1 87.3 84.3 1953 ......... 9? 5 901 871 78.2 870 95.3 95.8 95.2 85.2 92.9 87.2 90.8 86.5 81.5 86.5 1954 ......... 759 73 1 733 79.0 753 73..5 71..0 73..7 76.3 73.6 79.2 80 1 80.6 82.6 80.6 1955 ......... 850 92 1 963 93.5 917 83.5 92.8 98.8 95.1 92.6 86.1 89.0 89.3 90,8 88.8 1956 ......... 935 928 759 93.6 889 94,.0 94.3 72..2 97.0 89.3 91.2 89.1 87.4 87..0 88.7 1957 ......... 874 860 910 76.7 853 906 87..7 95.0 77.1 87.6 86.0 83..9 82.7 80..5 83.3 1958 ......... 622 608 728 78.1 685 58.4 55.4 69.6 76.4 65.0 75..8 74..5 78,.8 82.3 77.9 1959 ......... 809 881 483 65.2 706 79.6 88.5 36.2 59..0 65.8 84..1 87..0 85,.5 84.1 85.2 1960 ......... 831 726 685 61.7 715 84.4 70.1 65.1 57.5 69.3 84.9 83.9 81..4 79.1 82.3 1961 ......... 587 680 795 79.5 714 52..9 64.5 79..5 79.0 69.0 79..7 81.6 82..8 85.7 82.5 1962 ......... 782 691 693 72.2 722 79..0 66.1 66.3 70.0 70.3 85..8 85..7 85.,2 84.,5 85.3 1963 ......... 734 829 773 77.8 778 71..7 83.8 77..0 77..1 77.4 85.1 85..9 86.6 87.,7 86.3 1964 ......... 809 840 893 93.2 869 80.2 84.4 91.7 97.0 88.3 88..2 89.0 89.9 90.2 89.3 1965 .......... 905 899 914 83.3 888 94.1 92.0 94..2 81.5 90.4 91.0 90.8 91.9 92.7 91.6 1966 .. 87..1 88.0 90.3 88.0 88..4 87..4 89.8 94.9 93.1 91.3 94.,3 94.1 ^4.,2 91.7 93.7 1967 82.6 79..0 80..7 84.4 81.7 85. .7 81..2 82. 1 86..9 84.0 90.0 89.0 88.3 91. 7 89.8 1968 84.0 86.5 81.0 82.9 83.6 85.,7 88.7 801 81..5 84.0 91.6 92.0 91.7 90.7 91.5 1969 ......... 85.9 85.9 87.8 91.0 87.6 86.6 86.8 90..6 93..7 89.4 90.5 91.4 913 90.6 90*9 1970 ......... 83.7 82.1 84.6 84.1 83.6 85.0 83.1 868 85.,3 85.1 88.6 87.3 86.7 86.1 87.2 1971 ......... 85.5 85..7 698 74.0 78..8 85.9 85.3 64.0 69.0 76.1 86.8 87.8 88.1 88.0 87.6 197° ......... 80.3 82.3 86.9 89.1 84..7 76.0 79.8 85.6 89..3 82.7 89.5 90.9 91.8 93.1 91.3 1973 ......... 90.0 88.8 94.0 94.3 91..8 88.0 87..4 94.9 96..4 91.7 93.7 94.2 94.4 93..2 93.9 Textiles Paper and pulp ChemicalsandI petroleum 1948 ......... 80.0 84.2 78.1 71.3 78.4 917CT 936 90.0 88.0 90.7 90.0 91.9 89.3 89.6 90.2 1949 ......... 70.6 64.2 69.0 78.0 70.4 83.4 75.6 77.6 84.6 80.3 89.2 81.5 80.5 86. l 84.3 1950 ......... 76.9 77.1 81.9 83.8 79.9 86.9 89.7 92.1 94.4 90.8 87.5 89.0 88.9 91.2 89.1 1951 ......... 86.0 85.9 78.0 73.1 80.7 96.4 100.2 94.4 90.3 95.3 95.0 96.4 92.7 90.7 93.7 1952 ......... 74.1 73.8 80.4 80.7 77.3 90.1 85.6 81.2 86.7 85.9 89.6 82.9 87.9 90.3 87.7 1953 ......... 79.5 84.5 79.4 72.5 79.0 89 1 90.9 907 89.0 89.9 89.9 92.7 85.9 81.3 87.4 1954 ......... 70.3 73.5 75.2 78.7 74.4 86.7 86.2 86.2 87.7 86.7 78.6 79.8 79.8 81.5 79.9 1955 ......... 82.7 86.2 86.9 88.2 86.0 89.9 92.5 93.1 94.6 92.6 86.0 88.6 88.9 90.2 88.4 1956 . 89.5 86.0 84.5 86.1 86.5 95.0 94.7 93.2 91.3 93.5 89.9 87.5 85.3 85.0 86.9 1957 ......... 84.9 82.1 81.1 78.0 81.5 89.6 86.9 84.2 83.6 86.1 85.9 84.2 83.3 80.7 83.5 1958 ......... 72.7 71.1 77.5 81.8 75.8 80.7 78.3 82.2 85.4 81.6 74.4 73.2 770 80.6 76.3 1959 ......... 85.1 89.4 87.4 83.8 86.4 85.9 89.1 88.8 87.5 87.8 82.4 84.7 82.9 81.7 82.9 I960 ......... 85.2 84..2 79..4 76.6 81.4 88.4 87..5 86.2 84.4 86.6 82.2 81.4 79.0 76.5 79.8 1961 77.3 80.7 82.5 86.3 81.7 85.0 87.4 87.6 90.9 87 7 775 78.7 799 82.4 79.7 1962 ......... 88.1 87,.3 86.7 86.8 87.2 89.3 89.5 89.5 88.4 89.2 83.2 83.4 82'’8 82'!5 83^0 1963 ......... 85.5 87.1 88.9 90.1 87.9 90.7 899 91.3 92.0 91.0 82.9 .0 84.5 85.7 84.3 1964 ......... 90.7 90.2 92.0 93.0 91.5 91..7 93..5 94.2 94.1 93.4 86.5 87.0 87.2 88.2 87.2 1965 ......... 94..2 94..2 93..4 93.1 93.7 94.2 92..5 94..7 95.2 94.1 88.8 89.5 91.0 91.2 90.1 1966 ......... 94.3 95..7 92.6 87.0 92.4 95..8 95..5 95.7 93.7 95.2 93.3 93.7 93.4 91.2 92.9 1967 ......... 83..9 83,.7 83.3 90.1 85..2 91.3 89..4 87.7 88.8 89.3 90.8 89.5 89.1 93.1 90.6 1968 ......... 91..2 90..3 90.,2 89.3 90..2 90.1 91.6 92,.4 93..3 91.9 92.2 92.8 92.5 91.0 92.1 1969 ......... 88.8 88..3 88.1 86.1 87.8 95.3 95.9 95.9 95.1 95.5 89n 91.1 90.5 89.0 90.1 1970 ......... 84.7 81.,7 80.9 81.1 82.1 93.2 91.7 90.3 90.,4 91.4 87,.6 86.9 85.9 84.9 86.3 1971 ......... 82.6 84.9 85.1 84.7 84..3 91.8 91.6 93,0 93.,7 92.5 85.4 87.0 87,1 86..7 86.6 1972 ......... 86.1 89..2 88.8 91.9 89.0 96.2 96.6 97.1 97.5 96.9' 88.2 90.0 91.1 92.0 90.3 1973 ......... 94.6 94.6 94.6 94.3 94..5 96.1 95.6 98.0 96.4 96.5 92.9 93.9 93,.3 919 93.0 Note.—See Table 1 for a description of the composition and weights of these groups. See also Note to Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN □ APRIL 1974 as well as the old series were at their highest of-year capacity and December output levels (at levels since the second quarter of 1951. The annual rates) in units appropriate for the indi­ new utilization rates have been slightly below vidual industry—for example, % tons. These the old series since 1968—by about 1 percent­ physical unit data are used to estimate prelimin­ age point—largely due to the effects of the three ary utilization rates for December. The prelim­ added chemicals series. inary rates are then used to derive an index of The slightly larger cyclical variations in the capacity comparable to the IP series by dividing revised capacity utilization series in the 1958-61 the preliminary rate into the appropriate De­ period—and especially in late 1959 when there cember IP series (not seasonally adjusted). This was an extended steel strike—reflect the in­ step, which in effect benchmarks the capacity creased weight given to the steel industry. In series to the IP series, is necessary because the all but four quarters of the 1948-74 period the value-added weighting system of the IP index difference between the old and new series is less causes its series in some instances to have a than 3 percentage points, and in most quarters growth pattern different from that of the equiv­ it is less than 2 percentage points. alent physical product series. Quarterly esti­ Chart 2 shows output and capacity for the mates of capacity are derived for most series major materials group. Of particular interest is by interpolating linearly between adjacent pairs the slowdown in capacity growth in 1972 and of year-end capacity indexes. The quarterly uti­ 1973, which stems largely from the durable lization rate for each industry is quarterly goods components of the major materials series. average output (seasonally adjusted) divided by average capacity for the quarter. REVISED METHODOLOGY The procedure by which aggregate figures for In general, the capacity utilization rates for capacity utilization for major materials are individual series are based on estimates of end- computed from the individual series has been CHART 2 OUTPUT and CAPACITY for MAJOR MATERIALS: NEW Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED CAPACITY UTILIZATION MEASURES 25f revised. Formerly it had been a simple aggrega­ adjacent pairs of capacity observations. The tion of the individual industry utilization rates method has been described in detail elsewhere.2 using value-added weights. In that procedure the Another instance that required special han­ quarterly output series for the individual indus­ dling was the plastics materials industry. In that tries were aggregated independently of the utili­ industry a comprehensive survey of capacity has zation rate aggregation in such a way that the recently been inaugurated by the Society of the result was consistent with other published in­ Plastics Industry. Each survey provides capacity dexes for industrial production. Quarterly ca­ data for the end of the most recent calendar year pacity was then derived as the ratio of output plus a forecast for the end of the current year. to utilization. This procedure did not prove to 1972 was the first year for which data were be satisfactory, for the capacity series tended reported. Although there are no comparable to have erratic quarterly movements not justified historical data, the importance of this industry by the underlying capacity data, which are and the assurance of a future source of reliable available only at annual intervals for most in­ capacity data strongly indicated that the industry dustries. This problem is corrected by the new should be included in this revision of the major procedure, in which individual industry capaci­ materials series. A variation of the trendties and outputs are aggregated by parallel pro­ through-output-peaks method was used to esti­ cedures—but still independently—and aggre­ mate historical capacity, and this estimated gate utilization is computed as the ratio of output series was benchmarked to the 1972 survey to capacity. observation. Some industry data required special handling. Finally, the capacity series for plywood was For example, capacity figures for steel and syn­ compiled on the basis of quarterly data from thetic rubber have not been available annually 1956 to the present. □ since the late 1950’s, but they have been avail­ able at irregular intervals generally not exceed­ 2Nathan Edmonson, “Production Relations at High Levels of Capacity Utilization in the Steel Industry,” ing 4 years. Interpolation was based on changes Papers and Proceedings of the American Statistical in deflated annual investment data between Association, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits at Commercial Banks Ju ly -O cto b er 1973 Time and savings deposits held by individuals, CONSUMER-TYPE TIME AND SAVINGS partnerships, and corporations (IPC) increased ACCOUNTS less than 2 per cent at insured commercial banks Effective July 1, ceiling rates on savings depos­ between July 31 and October 31, 1973, accord­ its and on small-denomination time deposits at ing to the latest quarterly survey of time and commercial banks were raised, in some in­ savings deposits.1 The slackened pace of such stances by V2 percentage point and in others by deposit growth continued a slowing trend that % percentage point, to 5 per cent on passbook had begun early in the year, reflecting in large savings and up to 6V2 per cent on time deposits part the relative attractiveness of high and rising with maturities of 2V2 to 4 years. As shown in interest rates available on alternative market Table 2, by July 31 a substantial majority of investments. Although by October most banks banks had moved their offering rates to the new had adjusted their deposit rates upward to the ceiling levels, and other banks adjusted their new regulatory ceilings instituted in July, the rates upward between July and October. On new maximum rates on most types of consumer October 31 more than 90 per cent of the dollar deposits remained well below rates available on volume of small-denomination time deposits competing market instruments, such as Treasury with maturities of a year or more were again securities. An exception to this was the 4-year paying maximum rates. certificate in minimum denomination of $1,000, However, a number of large banks (with total which was free of any regulatory ceiling be­ deposits of $100 million and over) continued tween July 1 and November 1. Commercial to pay a AV2 per cent rate on passbook sav­ banks were successful in promoting the new ings—they apparently assumed that most inter­ 4-year certificates, and such deposits accounted est-sensitive funds had already been shifted to for all of the expansion in time deposits, IPC, higher earning assets, and they also wished to in denominations of less than $100,000 at banks avoid the substantial increase in cost that an in the July-October period. Large-denomination increase of V2 percentage point in the rate on ($100,000 or more) time deposits expanded by outstanding savings deposits would incur; as a only 6 per cent during the 3 months ending with general rule passbook accounts constitute a large the October survey date, in sharp contrast to proportion of total time and savings deposits. their very rapid growth in the two preceding Most of the large banks that maintained the survey periods. lower (4V2 per cent) passbook rate were located on the West Coast, but there were a few on the East Coast in Philadelphia and New York. Note.—Martha S. Scanlon of the Board’s Division Moreover, although some large banks were of Research and Statistics prepared this article. paying lower rates on savings deposits, almost Previous surveys of time and savings deposits at all member banks were conducted by the Board of Gover­ all large banks were paying maximum rates on nors in late 1965, in early 1966, and quarterly beginning longer-maturity time deposits. This too implies in 1967. Beginning in 1968 the surveys were expanded that their strategy was to reduce costs of the to provide figures for all insured commercial banks and were conducted jointly by the Board of Governors and less interest-sensitive savings of customers, but the Federal Deposit Insurance Corporation. The results at the same time to make available attractive of earlier surveys have appeared in Bulletins for investment instruments to the more interest- 1966-73, the most recent being October 1973, pp. 724-31. sensitive customers. Digitized for FRASER 252 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The average of most common rates paid by years or less) time accounts, which were subject all insured banks on savings deposits in October to lower ceiling rates, into higher-yielding time was 4.77 per cent (Table 3), but almost all banks accounts or into market securities. As a result outside metropolitan areas were paying the there was a sizable decline in time deposits with maximum 5.0 per cent. Nevertheless, growth maturities of less than 1 year and of 1 to 2xh in savings deposits at all commercial banks years. At the same time, longer-maturity time between July 31 and October 31 was less than accounts—in particular the new 4-year certifi­ 1 per cent, and for the 12 months ending Oc­ cates—expanded at a rapid rate. tober 31 such deposits increased less than 3.5 Immediately following the inception of the per cent. This was the slowest rate of growth ceiling-free 4-year certificates in July, banks in these deposits since 1969-70, also a period began offering these instruments at rates ranging of high interest rates and restrictive monetary from 6.5 to 9.0 per cent, with the majority policy. offering 7.0 to 7.5 per cent. This same rate During the July-October period, many savers structure prevailed in October, with more than showed their preference for higher interest rates 80 per cent of the volume of outstanding 4-year by shifting funds out of the short-maturity (2V2 certificates paying 7.0 to 7.5 per cent. Between TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, JAN. 31—OCT. 31, 1973 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits Type of deposit 1973 1973 (quarterly rate) Jan. 31 Apr. 30 July 31 r Oct. 31 Jan. 31 Apr. 30 July 31 ' Oct. 31 Apr. 30- July 31- July 31 Oct. 31 Total time and savings deposits1...... 13,589 13,813 13,811 13,560 275,611 291,216 304,050 308,909 4.4 O) Savings................................. 13,252 13,508 13,513 13,299 121,453 122,936 123,627 123,876 .6 .2 Time deposits in doniminations of less than $100,000—total...... 13,396 13,571 13,573 13,428 100,280 103,944 104,606 105,773 .6 1.1 Accounts with original maturity of— Less than 1 year................ 12,798 13,044 13,072 12,860 46,693 46,633 43,281 39,189 -7.2 -9.5 1 up to 2 Vi years 2............ n.a. n.a. 13,066 13,158 n.a. n.a. 48,174 45,700 2Vi up to 4 years 2............. n.a. n.a. 8,068 10,280 n.a. n.a. 9,267 10,919 4 years and over:2 In denominations of 7.0 8.6 less than $ 1,000........ n.a. n.a. 340 381 n.a. n.a. 689 402 In denominations of $1,000 or more.......... n.a. n.a. 5,225 7,635 n.a. n.a. 3,181 9,563 All maturities: Open accounts— Passbook or statement 3,518 3,626 3,857 3,457 28,637 29,065 30,376 28,501 4.5 -6.2 Time deposits in denominations of $100,000 or more............... 6,131 6,275 6,627 6,944 48,206 58,212 69,221 73,161 18.9 5.7 Negotiable CD’s................... 3,098 3,226 3,233 3,596 35,065 42,511 50,856 52,166 19.6 2.6 Nonnegotiable CD’s and open account................. 3,690 3,738 3,874 3,934 13,141 15,701 18,365 20,995 17.0 14.3 Christmas savings and other special funds1.................... 8,257 8,606 8,854 7,807 5,672 6,124 6,604 6,099 7.8 O) r Revised. ment, or other forms that are direct alternatives for regular savings n.a. Not available. accounts. The figures shown on this line are included above in the 1 Prior to Oct. 31, 1973, special funds and total time and savings appropriate maturity category. deposits included deposits accumulated for the payment of personal Note.—Data were compiled jointly by the Board of Governors of loans (hypothecated deposits). In the Oct. 31 and future surveys the Federal Reserve System and the Federal Deposit Insurance these funds are excluded. Hence, the amounts of special funds and Corporation. For Jan. 31, Apr. 30, and July 31, 1973, the information total time and savings deposits reported Oct. 31 and after are not was reported by a probability sample of all insured commercial strictly comparable with those in previous surveys. (In October 1973 banks; for Oct. 31, 1973, the data for member banks were reported hypothecated deposits at insured commercial banks amounted to by virtually all such banks and for insured nonmember banks by the slightly more than $500 million.) same sample of these banks reporting in earlier surveys. 2 Maturity categories were changed from those of previous surveys Some deposit categories include a small amount of deposits out­ to conform with the change in Regulation Q that went into effect standing in a relatively few banks that no longer issue these types of July I, 1973. deposits and are not included in the number of issuing banks. Dollar 3 Includes time deposits, open account, issued in passbook, state­ amounts may not add to totals because of rounding. Digitized for FRASER 253 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN □ APRIL 1974 TABLE 2 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JULY 31 AND OCT. 31,1973, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, 1973 1973 r 1973 1973 «■ 1973 1973 ' 1973 1973 ' 1973 1973 r 1973 1973 ^ Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits: Issuing banks.............................. 13,299 13,513 12,577 12,793 723 721123,876123,627 50,239 48,729 73,637 74,897 Percentage distribution by most com­ mon rate paid on new deposits: Total..................................... 100 100 100 100 100 100 100 100 100 100 100 100 3.50 or less........................... 3.1 3.6 3.1 3.7 1.5 1.7 1.2 1.4 1.5 1.7 1.1 1.2 3.51-4.00.............................. 8.5 11.1 8.4 11.0 10.3 11.8 8.3 9.8 6.6 7.7 9.5 11.0 4.01-4.50.............................. 12.4 21.4 12.1 21.3 17.6 24.0 24.6 33.0 13.9 23.8 31.9 39.0 4.51-5.00.............................. 76.1 63.9 76.5 64.0 70.6 62.4 65.8 55.9 78.0 66.9 57.6 48.7 Time deposits in denominations of less than $100,000: Maturities less than 1 year: Issuing banks........................... 12,860 13,072 12,137 12,350 723 722 39,189 43,281 18,849 21,073 20,340 22,208 Percentage distribution by most common rate paid on new de­ posits: Total.................................. 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less........................... .1 .3 .1 .3 .1 . 1 .1 .1 O) .1 .1 .1 4.01-4.50.............................. .4 .5 .4 .5 . 1 .3 .4 .1 .8 O) .1 .2 4.51-5.00.............................. 18.2 31.9 18.4 32.2 15.6 26.7 14.8 27.4 13.1 27.8 16.4 27.1 5.01-5.50.............................. 81.2 67.3 81.0 66.9 84.1 72.9 84.7 72.4 86.0 72.1 83.4 72.6 Maturities of 1 up to 2Vi years: Issuing banks........................... 13,158 13,067 12,442 12,353 716 714 45,697 48,174 29,954 31,506 15,743 16,669 Percentage distribution by most common rate paid on new de­ posits: Total................................... 100 100 100 100 100 100 100 100 100 100 100 100 4 4 . . 5 5 0 1 - o 5 r . 0 l 0 es .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 1 1 . .9 1 . . 9 1 (12l.0 O) .4 (!) .7 O) .5 O) .8 O) .4 O) 1.1 O) .6 O) .2 5.01-5.50.............................. 6.7 17.7 6.8 18.0 4.6 12.5 4.7 11.2 5.3 13.1 3.6 7.6 5.51-6.00.............................. 92.3 80.3 92.1 80.0 94.9 86.7 94.8 88.0 94.2 85.8 95.8 92.2 Maturities of 2V£ years to 4 years: Issuing banks........................... 10,280 8,068 9,612 7,440 667 629 10,912 9,267 5,523 4,767 5,389 4,500 Percentage distribution by most common rate paid on new de­ posits : Total.................................. 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less........................... .3 .3 .4 .1 .2 1.4 (0 .2 0) O) 0) .4 5.01-5.50.............................. .1 .5 .1 .5 .2 .6 .1 .4 O) .6 .2 .3 5.51-6.00.............................. 4.1 12.9 4.0 12.8 6.5 13.5 9.3 29.6 5.8 34.4 12.8 24.6 6.01-6.50.............................. 95.4 86.3 95.6 86.5 93.2 84.4 90.6 69.7 94.1 65.1 87.0 74.7 Maturities of 4 years and over (mini­ mum denomination of $1,000): Issuing banks........................... 7,636 5,225 7,018 4,664 618 561 8,872 3,181 3,621 1,241 5,251 1,939 Percentage distribution by most common rate paid on new de­ posits : Total.................................. 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less........................... 5.7 4.4 5.4 3.7 9.9 10.0 6.3 7.2 4.6 6.4 7.5 7.7 6.51-7.00.............................. 52.4 58.9 53.1 59.8 44.2 51.7 41.1 40.6 42.4 42.0 40.2 39.5 7.01-7.25.............................. 16.6 10.2 16.4 9.8 19.8 13.2 17.5 10.8 18.2 8.1 17.1 12.5 7.26-7.50.............................. 20.2 21.1 20.4 21.2 18.1 20.2 23.7 31.4 25.6 30.7 22.5 31.9 7.51-8.00.............................. 4.1 4.9 4.0 5.0 5.0 3.8 6.3 6.7 7.8 11.9 5.3 3.4 8.01-8.50.............................. .4 .4 .3 .3 1.3 1.1 1.0 3.1 .7 .3 1.1 4.9 8.51-9.00.............................. .3 . 1 .2 . 1 .5 1.6 . 1 .6 .7 2.2 0) 9.01-10.00............................ .2 . 1 1.1 2.5 .2 4.2 1 Less than .05 per cent, n.a. Not available. r Revised. For Note, see p. 257. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 255 July 1 and October 31 outstanding 4-year cer­ 4-year deposits at commercial banks, effective tificates increased from an estimated level of November 1. As of October 31, approximately about $500 million to over $9.5 billion. This one-quarter of the banks offering these certifi­ large increase more than offset the decline of cates were still paying rates above 7.25 per cent, about $5 billion in other small-denomination and the average of most common rates paid was time deposits. Thus, the 4-year certificates at­ 7.27 per cent. Although banks with total depos­ tracted new deposits into banks as well as funds its of more than $500 million were paying out of lower-yielding time accounts. somewhat higher rates on the 4-year certificates To implement new legislation enacted by the than smaller institutions, inflows of such funds Congress in October, the regulatory authorities were broadly distributed among banks in all size established a ceiling rate of 7.25 per cent on groups and among Federal Reserve districts. TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON OCT. 31, 1973 Time deposits in denominations of less than $100,000 Savings Maturing in— and small Bank location and size of denom­ Savings 4 years 4 years bank (total deposits in ination Total or more or more millions of dollars) time Less 1 up to 2Vi years (in de­ (in de­ deposits than 2l/i years up to nomina­ nomina­ 1 year 4 years tions of tions of less than $1,000 or $1,000) more) All banks: All size groups.............. 5.30 4.77 5.92 5.42 5.95 6.44 6.35 7.27 Less than 10.............. 5.52 4.74 5.90 5.40 5.95 6.45 6.03 7.14 10-50....................... 5.41 4.85 5.91 5.42 5.94 6.47 5.78 7.23 50-100..................... 5.33 4.84 5.91 5.44 5.95 6.46 6.12 7.27 100-500.................... 5.24 4.76 5.91 5.42 5.96 6.41 5.79 7.20 500 and over.............. 5.17 4.71 5.94 5.41 5.96 6.41 6.44 7.35 Banks in— Selected large SMSA’s1: All size groups.............. 5.22 4.77 5.93 5.41 5.95 6.41 6.37 7.30 Less than 10.............. 5.35 4.82 5.94 5.41 5.94 6.46 6.43 7.52 10-50....................... 5.32 4.88 5.94 5.42 5.95 6.46 5.20 7.22 50-100..................... 5.29 4.85 5.95 5.45 5.95 6.47 6.06 7.31 100-500.................... 5.21 4.78 5.89 5.40 5.94 6.36 5.70 7.14 500 and over.............. 5.18 4.73 5.94 5.41 5.95 6.40 6.44 7.37 All other SMSAs: All size groups........... 5.25 4.70 5.91 5.43 5.96 6.48 6.34 7.22 Less than 10........... 5.26 4.42 5.91 5.28 5.94 6.48 6.50 7.10 10-50.................... 5.31 4.75 5.94 5.44 5.94 6.48 6.46 7.27 50-100.................. 5.31 4.80 5.89 5.45 5.95 6.44 6.42 7.20 100-500................. 5.25 4.73 5.92 5.45 5.98 6.48 5.84 7.24 500 and over........... 5.09 4.49 5.88 5.38 5.97 6.49 6.50 7.10 Banks outside SMSA’s: All size groups.............. 5.49 4.86 5.89 5.42 5.95 6.46 5.70 7.24 Less than 10.............. 5.58 4.81 5.89 5.42 5.95 6.44 5.90 7.07 10-50....................... 5.49 4.88 5.89 5.42 5.94 6.46 5.62 7.23 50-100..................... 5.42 4.86 5.88 5.41 5.95 6.48 5.60 7.27 100-500.................... 5.32 4.78 5.95 5.42 5.95 6.40 6.03 7.35 500 and over.............. 5.54 5.00 6.02 5.50 6.00 6.50 6.50 7.87 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of popula­ tion in the 1970 Census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-Troy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland N orfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D. C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Bernadino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Y oungsto wn-W arren Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN □ APRIL 1974 LARGE-DENOMINATION were only $1.3 billion above their level on TIME DEPOSITS July 31. Large-denomination IPC time deposits other During the first 8 months of 1973 commercial than negotiable CD’s—nonnegotiable CD’s and banks bid aggressively for funds with which to open account deposits—increased faster than meet accelerating credit demands through sales CD’s in the 3 months ending in October, but of large negotiable certificates of deposit at a slower rate than in earlier quarters. In July (CD’s). Between January 31 and July 31 the more than a third of such deposits at commercial outstanding volume of large CD’s, IPC, ex­ banks were yielding rates of 9.0 per cent or panded by almost $16 billion, as the average more, whereas by October less than a quarter rate paid on such deposits (measured by the were yielding rates as high as 9.0 per cent. average of most common rates paid) increased Almost 90 per cent of the total amount of from 5.2 per cent to 9.2 per cent. Sales of CD’s large IPC time deposits are held by commercial continued strong through mid-August, but by banks with total deposits of $100 million or late September banks had become considerably more. In general, these large banks pay consid­ less aggressive in seeking such funds. erably higher rates on such deposits than do A combination of factors—including a drop­ smaller institutions. off in business credit demands at banks, which reduced their need for loanable funds—contrib­ DEPOSITS HELD BY BUSINESSES uted to the slowing in sales of CD’s in the fall. In addition, the effective cost of such funds to In October surveys, member banks are asked banks was increased in September when the to report the percentage of their IPC time de­ Board of Governors imposed an additional 3 per posits held by businesses. In the October 1973 cent marginal reserve requirement on these and survey, member banks holding more than 60 similar instruments above a specified base level. per cent of total IPC time and savings deposits This raised the reserve requirement on such reported this information, which is summarized CD’s to 11 per cent from its previous level of in Table 4. As would be expected, businesses 8 per cent. Several months earlier—in May—a account for less than 10 per cent of small-de­ marginal reserve requirement of 3 per cent had nomination time deposits, but they hold the bulk been imposed on CD’s and similar instruments (over 75 per cent) of large negotiable CD’s, (raising the total requirement from 5 to 8 per IPC. However, they account for only 50 per cent); this was at the time when interest ceiling cent of all other large IPC time deposits in the restrictions on such deposits were removed. The form of nonnegotiable CD’s and open accounts further increase in reserve requirements in Sep­ at member banks. This would imply that house­ tember—bringing total required reserves to 11 holds and nonprofit institutions hold an equally per cent—meant that a CD that yielded a rate sizable share of such large-denomination de­ of 10 per cent would actually cost the issuing posits. Moreover, the nonbusiness share appears bank subject to these requirements more than to have increased since the October 1972 sur­ 11 per cent, since a larger proportion of the vey, when businesses accounted for 56 per cent funds had to be held as reserves. of large IPC deposits other than negotiable As a result of these factors, together with the CD’s. In total volume such deposits (held by decline in interest rates generally, offering rates both businesses and households) amounted to on CD’s fell late in the third quarter from their only about $20 billion in October 1973; this was peak August levels, and the average of most less than 7 per cent of total IPC time and savings common rates reported in the October 31 survey deposits at all insured banks. was somewhat below that of the July survey. Between October 1972 and October 1973 the As the rates on CD’s fell, sales dropped in late share of small-denomination time deposits held September and early October, and many banks by businesses at member banks declined from allowed outstanding CD’s to run off. Conse­ 11.3 to 9.2 per cent, while their holdings of quently, outstanding CD’s of IPC’s in October large-denomination IPC deposits dropped from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 257 76 to 71 per cent. However, businesses still held relative to the slow growth in small-denomia substantial majority of large-denomination nation consumer deposits resulted in an increase deposits, and the very rapid growth of such in the share of business deposits to total IPC deposits over the 12 months ending in October time deposits during this period. □ TABLE 4 ESTIMATED PERCENTAGE OF TIME DEPOSITS, IPC, HELD BY BUSINESSES AT MEMBER BANKS ON OCTOBER 31, 1973 Time deposits in denominations of— Less than $100,000 $100,000 or more All time deposits Maturing in— Group (excluding passbook Nonnesavings) 4 years 4 years Nego­ gotiable Total or more or more tiable CD’s Less 1 up to 2 Vi years (in de­ (in de­ CD’s and open than 2 Vi years up to nomina­ nomina­ accounts 1 year 4 years tions of tions of less than $1,000 or $1,000) more) All banks reporting information.... 43.4 9.2 11.3 7.0 8.6 9.3 9.0 76.5 50.1 Size of bank (total deposits in millions of dollars): Under 10........................... 12.3 8.1 11.0 6.7 10.2 11.0 9.8 62.5 70.2 10-50................................ 13.5 7.2 9.1 6.1 5.9 4.6 5.8 53.8 53.1 50-100............................... 19.7 8.4 10.4 6.9 6.3 5.6 7.5 49.5 54.8 100-500............................. 33.6 11.4 14.1 9.0 8.0 1.7 8.4 65.7 58.9 500 and over....................... 54.6 9.4 11.1 6.8 10.6 9.5 10.0 78.9 44.6 F.R. district: Boston.............................. 60.6 13.9 15.2 10.8 9.9 5.8 71.6 71.5 New York.......................... 63.2 14.5 15.6 15.6 9.6 2.0 10.6 77.6 54.8 Philadelphia........................ 31.6 8.0 7.1 6.3 4.6 9.9 17.5 76.5 44.7 Cleveland........................... 37.3 9.1 12.0 6.8 5.6 6.8 8.3 73.6 62.4 Richmond.......................... 33.2 10.4 12.5 9.1 9.5 12.0 4.9 59.5 68.3 Atlanta.............................. 38.3 10.0 12.3 8.7 7.5 4.0 5.4 75.9 59.9 Chicago.............................. 38.3 6.5 7.1 4.7 11.1 2.6 8.2 83.2 30.5 St. Louis............................. 32.3 10.9 16.2 7.9 8.2 10.0 5.0 81.4 75.1 Minneapolis........................ 24.6 6.5 8.0 5.3 8.7 7.0 7.7 76.9 52.1 Kansas City......................... 31.0 9.0 14.6 6.0 5.6 1.0 5.5 68.2 62.6 Dallas................................. 38.4 12.7 16.0 9.9 13.1 5.0 12.8 60.3 32.1 San Francisco...................... 42.1 8.1 10.6 6.0 7.8 4.9 7.4 82.3 42.5 Note.—Data are for member banks of the Federal Reserve System 60 per cent of the total deposits of these types in all member banks. only. No insured nonmember banks reported this information, Passbook savings and Christmas savings and other special funds are and there was some nonreporting among member banks. Never­ excluded. theless. the member banks that did report accounted for more than NOTE TO TABLE 2: Note.—The most common interest rate for each instrument refers While rate ranges of lA or Vi of a percentage point are shown in to the basic stated rate per annum (before compounding) in effect on this and other tables, the most common rate reported by most bank s the survey date that was generating the largest dollar volume of de­ was the top rate in the range; for example, 4.00, 4.50, etc. Some posit inflows. If the posted rates were unchanged during the 30-day deposit categories exclude a small amount of deposits outstanding in period just preceding the survey date, the rate reported as the most a relatively few banks that no longer issue these types of deposits and common rate was the rate in effect on the largest dollar volume of are not included in the number of issuing banks. deposit inflows during the 30-day period. If the rate changed during Figures may not add to totals because of rounding. that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4,00 4.50 5.00 or 4.00 4.50 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS July 31, 1973 All banks..................................................... 13,513 491 1,493 2,895 8,635 123,627 1,700 12,058 40,770 69,099 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 5,835 360 952 1,154 3,369 6,235 283 852 1,358 3,742 10-50...................................................... 6,181 105 395 1,413 4,267 30,093 344 1,930 7,279 20,540 50-100..................................................... 777 14 61 155 547 12,402 181 965 2,942 8,313 100-500................................................... 544 8 63 119 354 25,419 236 3,936 6,144 15,103 500 and over.............................................. 177 4 22 54 97 49,479 656 4,374 23,047 21,402 October 31, 1973 13,299 401 1,126 1,648 10,126 123,877 1,509 10,336 30,461 81,571 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 5,518 276 672 547 4,023 5,808 286 591 613 4,319 10-50...................................................... 6,169 102 322 834 4,912 30,140 329 1,809 4,171 23,831 50-100..................................................... 890 13 58 140 680 14,292 149 911 2,211 11,020 100-500................................................... 556 8 57 85 406 25,975 227 3,499 4,587 17,662 500 and over.............................................. 167 3 17 42 105 47,662 519 3,526 18,879 24,738 APPENDIX TABLE 2—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN LESS THAN 1 YEAR Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 or 5.00 5.50 4.50 5.00 5.50 less NUMBER OF BANKS MILLIONS OF DOLLARS July 31, 1973 All banks..................................................... 13,072 107 4,171 8,794 43,281 71 11,881 31,329 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 5,642 76 2,122 3,444 3,632 8 1,440 2,184 10-50...................................................... 5,933 25 1,652 4.256 13,098 6 3,270 9,822 50-100..................................................... 775 2 205 567 4,343 (2) (2) 3,197 100-500................................................... 545 2 142 401 8,415 (2) (2) 6,238 500 and over.............................................. 177 1 51 125 13,793 (2) (2) 9,888 October 31, 1973 12,860 71 2,345 10,444 39,189 199 5,815 33,175 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 5,281 16 1,061 4,204 2,838 2 538 2,298 10-50...................................................... 5,970 51 1,027 4,893 10,916 158 1,303 9,456 50-100..................................................... 886 2 145 739 5,095 (2) (2) 4,464 100-500................................................... 556 2 83 471 7,921 (2) (2) 6,817 500 and over.............................................. 167 30 137 12,419 2,278 10,141 For notes to Appendix Tables 1-7, see p. 262. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 259 APPENDIX TABLE 3—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 1 UP TO 2V2 YEARS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.00 or 5.50 6.00 or 5.50 6.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS July 31[, 1973 All banks...................................................... 13,067 253 2,316 10,498 48,174 381 5,381 42,412 Size of bank (total deposits in millions of dollars): Less than 10................................................ 5,591 147 1,373 4,071 8,417 179 2,172 6,066 10-50........................................................ 5,993 98 791 5,103 18,829 163 1,822 16,844 50-100....................................................... 769 2 61 705 4,260 (2) (2) 4,140 100-500..................................................... 540 2 63 475 6,806 (2) (2) 6,136 500 and over............................................... 174 3 27 144 9,863 2 634 9,227 October 31, 1973 All banks...................................................... 13,158 131 885 12,142 45,697 231 2,154 43,311 Size of bank (total deposits in millions of dollars): Less than 10................................................ 5,501 62 366 5,074 7,633 27 515 7,090 10-50........................................................ 6,056 66 439 5,552 17,408 104 897 16,407 50-100....................................................... 886 1 48 837 4,914 (2) (2) 4,731 100-500..................................................... 550 2 22 525 6,526 (2) (2) 6,337 500 and over............................................... 166 1 11 154 9,216 (2) (2) 8,747 APPENDIX TABLE 4—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 2^ YEARS OR MORE EXCLUDING DEPOSITS WITH MINIMUM MATURITY OF 4 YEARS IN DENOMINATION OF $1,000 to $100,000 Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.00 or 6.00 6.50 or 6.00 6.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS July 31, 1973 AH banks...................................................... 8,068 65 1,041 6,963 9,267 59 2,747 6,461 Size of bank (total deposits in millions of dollars): Less than 10............................................... 2,553 24 416 2,113 852 24 389 439 10-50........................................................ 4,251 16 490 3,744 3,176 1 1,116 2,059 50-100....................................................... 636 10 50 575 739 2 134 603 100-500..................................................... 469 7 60 403 1,512 16 546 950 500 and over............................................... 160 7 25 128 2,988 16 563 2,410 October 31, 1973 All banks...................................................... 10,280 47 424 9,808 10,912 13 1,011 9,888 Size of bank (total deposits in millions of dollars): Less than 10............................................... 3,809 8 104 3,697 936 (2) (2) 866 10-50........................................................ 4,997 38 237 4,722 3,373 3 180 3,190 50-100...................................................... 806 39 767 1,214 72 1,142 100-500..................................................... 511 28 484 1,832 262 1,570 500 and over............................................... 156 2 16 138 3,557 (2) (2) 3,119 For Notes to Appendix Tables 1-7, see p. 262. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 5—TIME DEPOSITS, IPC, IN DENOMINATION OF $1,000 to $100,000—MATURING IN 4 YEARS OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 Over 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.00 or 6.50 7.00 7.25 7.50 8.008.00 less less JULY 31, 1973 NUMBER OF BANKS MILLIONS OF DOLLARS 5,225 129 1023,079 5311,104 255 25 3,181 149 791,290 3421,000 213 108 Size of bank (total deposits in millions of dollars): Less than 10. . ............,........ 1,315 26 10 943 108 205 20 3 109 2 1 59 7 29 (2) (2) 10-50................................. 2,753 57 421,474 300 681 184 15 746 15 37 297 74 223 97 4 50-100................................ 596 20 20 373 48 105 30 386 2 22 165 20 129 49 100-500.............................. 422 18 22 216 53 88 19 5 761 71 16 276 80 186 57 76 500 and over........................ 139 8 8 73 21 25 2 1 1,178 59 4 493 162 433 (2) (2) Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 Over 6.50 Over or 7.00 7.25 7.50 8.00 8.50 9.00 9.00 or 7.00 7.25 7.50 8.00 8.50 9.00 9.00 less less OCTOBER 31, 1973 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................ 7,636 4444,0021,2711,545 315 27 19 138,872 5583,6451,5562,106 558 85 139 226 Size of bank (total deposits in millions of dollars): Less than 10......................... 2,359 1041,447 240 499 65 2 3 414 38 234 43 80 10 (2) (2) 10-50................................. 3,963 2501,942 771 795 172 17 12 52,104 111 827 417 560 149 25 13 2 50-100................................ 695 29 340 138 139 47 1 11,102 19 472 198 286 123 (2) (2) 100-500.............................. 471 44 209 97 87 23 8 1 22,025 199 716 448 442 155' (2) ’ (2) (2) 500 and over........................ 147 17 65 25 25 8 2 53,226 1921,395 449 738 121 (2) (2) For notes to Appendix Tables 1-7, see p. 262. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 261 APPENDIX TABLE 6—NEGOTIABLE CD’s, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 Over 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 less less JULY 31, 1973 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................ 3,233 478 329 640 110 572 411 219 47350,841 706 4271,393 6871,8712,3151,96041,481 Size of bank (total deposits in millions of dollars): Less than 10......................... 550 141 98 194 27 58 33 316 30 165 61 7 15 37 10-50................................. 1,876 283 200 326 91 464 224 99 1892,093 198 130 585"'85 380 252 97”367 50-100................................ 335 29 23 84 7 32 65 43 521,174 112 58 148 14 72 244 154 371 100-500.............................. 310 20 8 26 9 43 54 32 1195,340 109 (2) 362 (2) 934 787 5782,419 500 and over........................ 162 4 1 10 4 6 11 12 11341,918 257 (2) 237 (2) 4781,0161,09438,324 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 Over 6.50 Over or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less less OCTOBER 31, 1973 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................ 3,596 607 468 665 477 312 598 303 16652,141 346 4391,3235,9876,39313,24312,24612,164 Size of bank (total deposits in millions of dollars): Less than 10......................... 776 212 173 124 118 32 73 20 24 327 36 165 24 42 13 27 12 8 10-50................................. 1,935 368 257 442 252 140 261 140 742,303 174 171 476 374 218 390 370 130 50-100................................ 417 15 28 74 65 54 124 42 161,814 34 68 240 203 263 670 248 88 100-500.............................. 316 8 9 21 37 62 90 65 236,188 (2) (2) 163 779 9522,1991,617 398 500 and over........................ 152 3 1 4 6 23 50 35 2941,508 (2) (2) 4204,5894,9479,9589,99911,539 For notes to Appendix Tables 1-7, see p. 262. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 7—NONNEGOTIABLE CD’s AND OPEN ACCOUNT DEPOSITS, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 Over 6.00 Over 6.50 7.00 7.25 7.50 8.00 8.50 8.50 or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 less JULY 31, 1973 NUMBER OF BANKS MILLIONS OF DOLLARS All banks.............................. 3,874 1,204 306 497 9 4 665 415 309 384 18,267 1,679 540 1,204 283 1,607 1,8781,502 9,574 Size of bank (total deposits in millions of dollars): Less than 10....................... 591 283 45 77 78 26 43 34 179 45 12 30 5 21 16 40 10 10-50................................ 2,275 677 213 295 442 276 183 1342,250 443 180 147 46 320 472 272 371 50-100............................... 475 111 28 79 97 43 23 751,413 146 82 207 24 358 189 66 342 100-500............................. 402 95 16 38 42 60 48 893.999 284 126 298 208 328 691 6271,437 500 and over....................... 132 37 4 6 11 13 5210,425 761 140 522 580 510 4987.415 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 Over 6.50 Over or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less less OCTOBER 31,1973 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................ 3,934 924 498 662 472 428 487 266 19620,8941,692 4991,1692,1553,3637,5322,4142,069 Size of bank (total deposits in millions of dollars) Less than 10......... 486 130 86 101 50 58 37 17 7 149 29 22 28 17 28 13 8 5 10-50.................. 2,411 620 348 441 295 225 223 123 1362,202 296 226 377 302 334 305 205 157 50-100................ 512 71 42 73 72 72 96 62 241,683 109 90 145 245 245 380 320 150 100-500............... 401 74 18 37 46 60 98 48 204,712 191 95 240 557 9611,434 888 347 500 and over........ 124 29 4 11 9 13 33 16 812,1481,067 67 3791,0341,7965,401 9941,411 For notes to Appendix Tables 1-7, see p. 262. NOTES TO APPENDIX TABLES 1-7: 1 Less than $500,000. a few banks that had discontinued issuing these instruments but 2 Omitted to avoid individual bank disclosure. still had some deposits outstanding on the survey date. Time deposits, Note.—Data were compiled from information reported by all open account, exclude Christmas savings and other special accounts. member banks and by a probability sample of all insured non- Dollar amounts may not add to totals because of rounding. member commercial banks. The latter were expanded to provide In the headings of these tables under “Most common rate paid universe estimates. (percent)” the rates shown are those being paid by nearly all reporting Figures exclude banks that reported no interest rate paid and banks. However, for the relatively few banks that reported a rate in that held no deposits on the survey dates, and they also exclude between those shown, the bank was included in the next higher rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices, 1973 Since 1964 the Federal Reserve has conducted In the spring, credit demands continued quarterly surveys of changes in bank lending strong, and market interest rates moved up practices among large commercial banks. The sharply. In the interval between the February surveys, taken in February, May, August, and and May surveys, banks had turned to sales of November of each year, provide information on large negotiable certificates of deposits (CD’s) both price and nonprice terms of lending as well to finance their lending as their holdings of as on changes in recent and prospective demand liquid assets declined. for business loans. This article, continuing a In the May survey almost 75 per cent of the series of regular annual reviews, summarizes the banks reported stronger current demand for results at 125 banks surveyed in 1973. business loans than in February, and nearly as In an environment of growing credit de­ large a proportion anticipated that business loan mands, total loans and investments at all com­ demand would become stronger in the next mercial banks expanded rapidly in the first three quarter. There was a significant tightening of quarters of 1973—led by sharp growth in busi­ nonprice terms of lending, particularly in com­ ness loans—and bank liquidity declined. Sig­ pensating balances and in weighing the value nificant factors in the rapid growth of business of borrowers as depositors. As the liquidity loans were the high level of real economic position of banks was diminished by the pres­ activity and the expanding credit needs of firms. sure of heavy loan demand, bankers reported Another reason was the rate advantage of bank being less willing to make mortgage loans and loans relative to other sources of short-term term loans to business. credit, particularly the commercial paper mar­ In the summer, short-term market interest ket. In the early part of the year, constraints on rates rose to postwar record levels. In mid-April increases in the bank prime rate stemming from the CID had introduced a two-tier prime rate the interest rate program of the Committee on on business loans that freed rates on loans to Interest and Dividends (CID) contributed to the large businesses to move with market rates and lower relative rates at commercial banks. at the same time limited increases in rates Almost 80 per cent of the banks surveyed in charged small businesses. Subsequently, the February reported stronger demands for busi­ large-business prime rate moved up rapidly, ness loans than 3 months earlier, and they though remaining appreciably below the com­ anticipated stronger demands in the months to mercial paper rate. Banks became aggressive follow. For the large majority of banks, interest borrowers in the CD market, engaged in sub­ rate policies were firmer, in part reflecting the stantial liquidation of Treasury securities, and rise of 25 basis points in the prime rate since sold a large volume of loans to finance new the previous survey in November 1972. Non­ lending. price terms of lending also became much firmer, At the time of the August survey, 75 per cent especially in regard to compensating balances. of the participants still reported that loan de­ New customers and nonlocal businesses faced mand from commercial and industrial borrowers significantly more restrictive bank lending poli­ was stronger than at the time of the previous cies. survey. In addition almost half of the respon­ dents thought that business loan demand would further intensify in the next 3 months. The Note.—This article was prepared by Paul W. Boltz of the Board’s Division of Research and Statistics. survey indicated that interest rate policies were Digitized for FRASER 263 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BULLETIN □ APRIL 1974 firmer and that nonprice terms of lending were As a result of the accompanying narrowing of more restrictive. Banks continued to tighten the rate spread that had encouraged borrowing their requirements for compensating balances of at commercial banks rather than in the commer­ loan applicants, while adopting more stringent cial paper market, growth of business loans policies toward new and nonlocal business cus­ abruptly dropped below its pace earlier in the tomers. As in the previous survey, the respon­ year. And in October when the short-term com­ dents were more reluctant to make mortgage mercial paper rate declined below the prime loans of any type, to make term loans to busi­ rate, growth of business loans at all commercial ness, and to make loans to brokers. banks, seasonally adjusted, came to a halt. After reaching their peaks in late summer, Thus, when the November survey was taken, short-term market rates began to decline rapidly. slightly less than 15 per cent of the bankers The prime rate peaked in September at a historic expected stronger loan demands in the coming high of 10 per cent and began a slow decline. period. QUARTERLY SURVEY—FEBRUARY 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier........... 125 (100.0) 16 (12.8) 82 (65.6) 26 (20.8) (.8) Anticipated in next 3 months............... 125 (100.0) 13 (10.4) 95 (76.0) 17 (13.6) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged..................... 125 (100.0) 13 (10.4) 86 (68.8) 26 (20.8) Compensating or supporting balances. 125 (100.0) 7 (5.6) 50 (40.0) 67 (53.6) (.8) Standards of creditworthiness.......... 125 (100.0) 6 (4.8) 25 (20.0) 94 (75.2) Maturity of term loans................... 125 (100.0) 1 (.8) 23 (18.4) 96 (76.8) (4.0) Practice concerning review of credit lines or loan applications: Established customers..................... 125 (100.0) (.8) 19 (15.2) 104 (83.2) (.8) New customers.............................. 125 (100.0) (7.2) 44 (35.2) 70 (56.0) (1.6) Local service area customers............. 125 (100.0) (.8) 17 (13.6) 104 (83.2) (2.4) Nonlocal service area customers......... 125 (100.0) (7.2) 41 (32.8) 73 (58.4) (1.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.................... 124 (100.0) (7.3) 50 (40.3) 65 (52.4) Intended use of the loan........ 123 (100.0) (1.6) 19 (15.4) 101 (82.2) (.8) Loans to independent finance companies: Terms and conditions: Interest rates charged................ 125 (100.0) (2.4) 42 (33.6) 80 (64.0) Compensating or supporting balances., 125 (100.0) (1.6) 25 (20.0) 98 (78.4) Enforcement of balance requirements .. 125 (100.0) (4.0) 27 (21.6) 93 (74.4) Establishing new or larger credit lines., 125 (100.0) (7.2) 36 (28.8) 78 (62.4) (1.6) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses................... 125 (100.0) 28 (22.4) 90 (72.0) 7 (5.6) Consumer instalment loans................ 124 (100.0) 3 (2.4) 108 (87.1) 11 (8.9) (1.6) Single-family mortgage loans.............. 123 (100.0) (1.6) 9 (7.3) 99 (80.5) 13 (10.6) Multifamily mortgage loans................ 122 (100.0) 0.6) 12 (9.8) 103 (84.5) 5 (4.1) All other mortgage loans................... 123 (100.0) (1.6) 12 (9.8) 97 (78.8) 12 (9.8) Participation loans with correspondent banks........................................ 124 (100.0) 13 (10.5) 106 (85.5) (4.0) Loans to brokers............................. 123 (100.0) (2.4) 14 (11.4) 99 (80.5) (4.9) (.8) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1973 265 In November—for the first time in 1973—a toward increased firmness than toward ease— significant minority of respondents reported an perhaps reflecting a lagged response to the ear­ easing in their policies with regard to interest lier booming loan demand. The modest indica­ rates and several other lending terms and prac­ tion of a greater willingness to make term loans tices. Moreover, there was a marked increase to business was nearly offset by tightening on in willingness to make certain types of loans, the part of other respondents; although some particularly term loans to business and consumer banks reported that they were more willing to instalment loans. However, in most areas cov­ make mortgage loans than 3 months earlier, ered by the survey, more banks reported moves more respondents indicated the opposite. □ QUARTERLY SURVEY—MAY 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.......... 125 (100.0) 23 (18.4) 69 (55.2) 30 (24.0) (2.4) Anticipated in next 3 months.............. 125 (100.0) 13 (10.4) 69 (55.2) 41 (32.8) (1.6) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... 125 (100.0) 24 (19.2) 76 (60.8) 25 (20.0) Compensating or supporting balances. 125 (100.0) 17 (13.6) 51 (40.8) 57 (45.6) Standards of creditworthiness.......... 125 (100.0) 13 (10.4) 42 (33.6) 69 (55.2) (.8) Maturity of term loans.................. 125 (100.0) 7 (5.6) 39 (31.2) 78 (62.4) (.8) Practice concerning review of credit lines or loan applications: Established customers.................... 125 (100.0) 4 (3.2) 37 (29.6) 83 (66.4) (.8) New customers............................ 125 (100.0) 28 (22.4) 48 (38.4) 48 (38.4) (.8) Local service area customers........... 125 (100.0) 4 (3.2) 32 (25.6) 89 (71.2) Nonlocal service area customers....... 125 (100.0) 25 (20.0) 42 (33.6) 57 (45.6) (.8) Factors relating to applicant:2 Value as depositor or source of collat­ eral business............................. 125 (100.0) 18 (14.4) 58 (46.4) 49 (39.2) Intended use of the loan................. 125 (100.0) 13 (10.4) 36 (28.8) 76 (60.8) Loans to independent finance companies:3 Terms and conditions: Interest rates charged..................... 125 (100.0) 15 (12.0) 51 (40.8) 59 (47.2) Compensating or supporting balances., 125 (100.0) 8 (6.4) 21 (16.8) 95 (76.0) (.8) Enforcement of balance requirements .. 125 (100.0) 9 (7.2) 30 (24.0) 86 (68.8) Establishing new or larger credit lines. , 125 (100.0) 21 (16.8) 49 (39.2) 55 (44.0) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses................ 125 (100.0) 13 (10.4) 41 (32.8) 68 (54.4) 3 (2.4) Consumer instalment loans............. 124 (100.0) 1 (.8) 111 (89.5) 11 (8.9) (.8) Single-family mortgage loans........... 123 (100.0) 3 (2.4) 16 (13.0) 100 (81.3) 4 (3.3) Multifamily mortgage loans............ 122 (100.0) 6 (4.9) 24 (19.7) 92 (75.4) All other mortgage loans................ 124 (100.0) 7 (5.6) 26 (21.0) (71.0) (2.4) Participation loans with correspondent banks..................................... 123 (100.0) 5 (4.1) 17 (13.8) 100 (81.3) (.8) Loans to brokers.......................... 124 (100.0) 11 (8.9) 34 (27.4) 77 (62.1) (1.6)’ 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDERAL RESERVE BULLETIN □ APRIL 1974 QUARTERLY SURVEY—AUGUST 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.......... 125 (100.0) 24 (19.2) 71 (56.8) 27 (21.6) 3 (2.4) Anticipated in next 3 months.............. 125 (100.0) 12 (9.6) 48 (38.4) 54 (43.2) 11 (8.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... 125 (100.0) 80 (64.0) 36 (28.8) 9 (7.2) Compensating or supporting balances. 125 (100.0) 41 (32.8) 46 (36.8) 38 (30.4) Standards of creditworthiness.......... 125 (100.0) 27 (21.6) 45 (36.0) 53 (42.4) Maturity of term loans................... 125 (100.0) 22 (17.6) 37 (29.6) 65 (52.0) (.8) Practice concerning review of credit lines or loan applications: Established customers..................... 125 (100.0) 13 (10.4) 60 (48.0) 52 (41.6) New customers.............................. 125 (100.0) 72 (57.6) 38 (30.4) 15 (12.0) Lqcal service area customers............. 125 (100.0) 12 (9.6) 58 (46.4) 55 (44.0) Nonlocal service area customers........ 125 (100.0) 58 (46.4) 45 (36.0) 22 (17.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.................... 125 (100.0) 49 (39.2) 46 (36.8) 30 (24.0) Intended use of the loan........ 125 (100.0) 43 (34.4) 44 (35.2) 38 (30.4) Loans to independent finance companies Terms and conditions: Interest rates charged............... 125 (100.0) 41 (32.8) 33 (26.4) 51 (40.8) Compensating or supporting balances. 125 (100.0) 15 (12.0) 27 (21.6) 83 (66.4) Enforcement of balance requirements . 125 (100.0) 20 (16.0) 45 (36.0) 60 (48.0) Establishing new or larger credit lines. 125 (100.0) 65 (52.0) 31 (24.8) 28 (22.4) (.8) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses................... 125 (100.0) 30 (24.0) 53 (42.4) 41 (32.8) Consumer instalment loans................ 124 (100.0) 3 (2.4) 12 (9.7) 102 (82.3) Single-family mortgage loans.............. 122 (100.0) 25 (20.5) 39 (32.0) 54 (44.2) Multifamily mortgage loans................ 121 (100.0) 36 (29.8) 43 (35.5) 4? (34.7) All other mortgage loans.................... 121 (100.0) 33 (27.3) 52 (43.0) 36 (29.7) Participation loans with correspondent banks........................................ 125 (100.0) 10 (8.0) 46 (36.8) 68 (54.4) Loans to brokers............................. 124 (100.0) 33 (26.6) 36 (29.0) 55 (44.4) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1973 267 QUARTERLY SURVEY— NOVEMBER 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier........... 125 (100.0) 22 (17.6) 53 (42.4) 50 (40.0) Anticipated in next 3 months............... 124 (100.0) 1 (.8) 16 (12.9) 69 (55.7) 37 (29.8) 1 (-8) Much firmer Moderately Essentially Moderately Much Total policy firmer unchanged easier easier Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... 125 (100.0) 9 (7.2) 27 (21.6) 60 (48.0) 29 (23.2) Compensating or supporting balances. 124 (100.0) 4 (3.2) 18 (14.5) 98 (79.1) 4 (3.2) Standards of creditworthiness.......... 124 (100.0) 4 (3.2) 20 (16.1) 98 (79.1) 2 (1.6) Maturity of term loans................... 124 (100.0) 1 (.8) 16 (12.9) 99 (79.8) 8 (6.5) Practice concerning review of credit lines or loan applications: Established customers.................... 125 (100.0) 1 (.8) 15 (12.0) 96 (76.8) 13 (10.4) New customers............................. 125 (100.0) 9 (7.2) 30 (24.0) 65 (52.0) 21 (16.8) Local service area customers........... 125 (100.0) 1 (.8) 16 (12.8) 94 (75.2) 14 (11.2) Nonlocal service area customers....... 125 (100.0) 10 (8.0) 25 (20.0) 78 (62.4) 12 (9.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business............................. 125 (100.0) 10 (8.0) 22 (17.6) 90 (72.0) 3 (2.4) Intended use of the loan................. 125 (100.0) 4 (3.2) 17 (13.6) 96 (76.8) 8 (6.4) Loans to independent finance companies:3 Terms and conditions: Interest rates charged.................... 125 (100.0) 4 (3.2) 17 (13.6) 88 (70.4) 16 (12.8) Compensating or supporting balances. 125 (100.0) 2 (1.6) 8 (6.4) 113 (90.4) 2 (1.6) Enforcement of balance requirements. 125 (100.0) 5 (4.0) 17 (13.6) 101 (80.8) 2 (1.6) Establishing new or larger credit lines. 125 (100.0) 10 (8.0) 15 (12.0) 88 (70.4) 12 (9.6) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses................... 125 (100.0) 2 (1.6) 12 (9.6) 92 (73.6) 19 (15.2) Consumer instalment loans................ 124 (100.0) 2 (1.6) 105 (84.7) 16 (12.9) 1 (.8) Single-family mortgage loans.............. 122 (100.0) 9 (7.4) 16 (13.1) 83 (68.0) 14 (11.5) Multifamily mortgage loans................ 121 (100.0) 14 (11.6) 16 (13.2) 84 (69.4) 7 (5.8) All other mortgage loans................... 123 (100.0) 7 (5.7) 17 (13.8) 91 (74.0) 8 (6.5) Participation loans with correspondent banks........................................ 125 (100.0) 1 (.8) 11 (8.8) 99 (79.2) 14 (11.2) Loans to brokers............................. 125 (100.0) 5 (4.0) 13 (10.4) 102 (81.6) 5 (4.0) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement by Arthur F. Burns, Chairman, in periods of rising unemployment. The long­ Board of Governors of the Federal Reserve term course of prices, therefore, has been inex­ System, before the Subcommittee on Interna­ orably upward. tional Finance of the Commitee on Banking If my reading of history is correct, the ability and Currency, U.S. House of Representatives, to control inflation has gradually deteriorated April 4, 1974. since World War II. During the past 10 years, moreover, the pace of inflation appears to have I am pleased to meet with this committee once accelerated more in the United States than it again to discuss with you recent developments has in other major countries. in the international economy and in foreign Since 1970 prices have skyrocketed almost exchange markets. My testimony today will everywhere. For a time—between mid-1971 and focus on the grave problem of inflation and its the end of 1972—the rate of inflation in our implications for the role of the United States country moderated substantially. Indeed, some in the international economic and financial 9 or 12 months ago, the average level of con­ community. sumer prices was rising less rapidly in the Inflation is now the dominant economic force United States than in any other industrial in every major nation around the world. country in the world. Of late, however, our Wholesale prices in the principal industrial Nation has been experiencing a rate of inflation countries at present are 10 to 35 per cent above that matches or even exceeds the inflation rate their levels of a year ago, while consumer prices of many other countries. have risen from 8 to 25 per cent in the past The implications of these facts have not been 12 months. Inflation is raging also in the less lost on the American people. Labor leaders and developed countries, and apparently also in so­ workers now tend to reason that in order to cialist countries as well as in those practicing achieve a gain in real income, they must bargain free enterprise. for wage increases that provide full protection In February wholesale prices in the United against advances in the price level. Businessmen States averaged 20 per cent higher, and con­ have come to believe that the trend of produc­ sumer prices 10 per cent higher, than their level tion costs will be steadily upward, and their a year earlier. Thus, along with most other resistance to higher wages or to higher prices nations, we are now either experiencing or are for what they buy from others has therefore close to the threshold of a two-digit inflation. diminished. Lenders in their turn, expecting to The current worldwide inflation has no close be paid back in cheaper dollars, tend to hold parallel in the economic history of the indus­ out for higher interest rates. And when individ­ trialized world. In earlier times inflation in the uals and families set aside funds for the future, United States and in other industrial countries they realize that some part of their accumulated was usually associated with wars or, less fre­ savings will be eroded by rising prices. A recent quently, with peacetime investment booms. survey indicates that three-fourths of the con­ Once those episodes passed the price level typi­ suming public doubt that the rate of inflation cally declined, and many years often elapsed will be reduced at any time in the near future. before prices returned to their previous peaks. These new patterns of thought are an ominous Over the past quarter century, a rather dif­ development. When the thinking of a nation— ferent pattern of price behavior has emerged. its consumers, its workers, and its business­ Prices of some individual commodities still de­ men—comes to be dominated by inflationary cline when demand weakens. The average level expectations, productive efficiency is apt to of prices, however, hardly ever declines, even falter, while interest rates rise and social and Digitized for FRASER 268 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

political frictions multiply. That is the clear facilities and other assistance to small busi­ lesson of history both here and abroad. No nesses and homebuilders, and so on. We and nation that I know of has been able to maintain other nations have moved a considerable dis­ prosperous economic conditions for very long tance toward these objectives. In the process, once inflationary forces got out of hand. however, governmental budgets have often got­ Last year’s experience in the United States ten out of control, business and consumer credit provides ample evidence of the troubles wrought has frequently expanded too rapidly, wages by inflation. During 1973, weekly earnings of have become less responsive to market forces, the average worker rose about 7 per cent, but and in not a few of our businesses, price com­ consumer prices rose even faster. With social petition has atrophied as a mode of economic security and other taxes also increasing, the real behavior. weekly take-home pay of the average worker In view of these institutional changes, general was about 3 per cent lower at the end of 1973 price stability would be difficult to achieve in than a year earlier. Inflation reduced also the the contemporary world under the best of cir­ real value of savings. Even if we take no ac­ cumstances. Of late, however, several factors count of the decline in the prices of common of an unusual character have imparted a new stocks, the dollar value of the other financial dimension to the course of inflation in indus­ assets held by individuals rose less than con­ trialized nations. sumer prices during 1973; in other words, the A major cause of the stepped-up pace of real value of these accumulated savings actually inflation during 1973 was the coincidence of declined. booming economic activity in the United States Many consumers have responded to the re­ and in other countries. Production rose rapidly duction in their real income and savings by throughout the industrial world; prices of labor, postponing or cancelling plans for buying big- materials, and end-products were bid up; and ticket items. Sales of new autos began to slip inflation accelerated everywhere. in the spring of 1973, and so too did sales of Demand pressures became particularly in­ furniture and appliances, mobile homes, and tense for major industrial materials—that is, for new conventional houses. Inflation cut a wide aluminum, steel, cement, synthetic fibers, swath through consumer markets last year and paper, paperboard, and the like. In some of thereby checked economic progress. The recent these industries, productive capacity in the rise of unemployment reflects the weakness en­ United States had grown little in recent years—a gendered by inflation in some consumer markets result of the low rates of profitability from 1966 as well as the obstacles to production originating to 1971 and, to some degree also, of the re­ in shortages of petroleum products. strictions imposed by environmental controls. Thoughtful citizens throughout the country, Since our industrial plant and that of other as the members of this committee well know, nations was incapable of accommodating the are deeply concerned about the erosion of the upsurge in demand, shortages developed for a real value of their earnings and savings. Ironi­ wide range of materials and component parts. cally, the roots of our persisting inflationary To make matters worse, disappointing har­ problem lie in the rising aspirations of people vests in 1972—both here and abroad—forced everywhere for lasting prosperity, job security, a sharp run-up in food prices during 1973. And and a fair distribution of the fruits of modern the manipulation of petroleum shipments and science and technology. prices by major oil-exporting countries caused Public policies nowadays are expected to a spectacular advance in the prices of gasoline maintain production at a high and rising level, and heating oil. Rapidly rising prices of food to limit such declines in employment as may and fuel, in fact, have accounted for much of occasionally occur, to ease the burden of job the recent worldwide inflationary problem. loss or illness or retirement, to protect business In the United States, an additional complicat­ firms from the hardships of economic dis­ ing factor during 1973 was the net decline in placement, to sustain the incomes of farmers the value of our currency in foreign exchange and wage earners, to provide special credit markets. This depreciation of the dollar magni­ Digitized for FRASER 269 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN □ APRIL 1974 fied the impact of worldwide inflation on our By the end of January the average dollar price price level. Higher prices of foreign currencies of the same ten major currencies was only 11 raised the dollar prices of imported goods, and per cent above its spring 1970 level—a drop these price increases were transmitted to do­ of 22 percentage points from July 1973. mestic substitutes as well as to finished products The decisive factor in the appreciation of the that were based on imported materials. More­ dollar from late October through January was over, as the dollar became cheaper for foreign the remarkable turnaround in the foreign trade buyers, our export trade increased rapidly. and over-all balance of payments of the United While this helped our balance of payments, it States. Our merchandise exports expanded at reinforced the pressures of demand on domestic extraordinarily high rates during 1973; in the resources. fourth quarter, measured in current dollars, they Before commenting further on the relation­ were 53 per cent above their level in the fourth ship between inflation and the international quarter of 1972. The value of imports also value of the dollar, let me turn to a brief review increased substantially, but not nearly so fast of recent developments in foreign exchange as exports. As a result, the trade balance—ex­ markets. pressed in annual rates—swung from a deficit As you may recall, those markets were char­ of $7 billion in the fourth quarter of 1972 to acterized by alternating periods of turbulence a surplus of $5.5 billion in the fourth quarter and stability during 1973. In mid-February the of 1973. dollar was devalued for a second time, and the An impressive shift occurred also in the bal­ dollar depreciated further in early March as ance of payments as a whole. After registering floating became more widespread among major deficits for 14 consecutive quarters, the basic currencies. Then, over a period of 2 months, balance—that is, the aggregate of all current the dollar stabilized. During that time the international transactions and long-term capital average dollar price of ten major currencies flows—moved into substantial surplus in the (those of Japan, Canada, and eight European third and fourth quarters of 1973. nations) was some 20 per cent above the ex­ Although the improvement in our trade and change parities that had prevailed in the spring payments position was the fundamental factor of 1970. But after mid-May the dollar again strengthening the foreign exchange value of the declined sharply; moreover, fluctuations of ex­ dollar during the October-January period, the change rates from day to day became more dollar’s appreciation was also propelled by pronounced. By early July market conditions market expectations that the energy crisis would had become so disorderly that the Federal Re­ have a more severe effect on the balance of serve decided to intervene by selling European payments of European countries and Japan than currencies, mainly German marks. on our balance of payments. These expectations The dollar reached its weakest point on July seem to have weakened during February and 6, when the average dollar price of the ten March, and the exchange value of the dollar currencies mentioned earlier was 33 per cent has declined appreciably since the end of Jan­ higher than in the spring of 1970. In our judg­ uary. Last week the average dollar price of the ment, as well as that of other students of the ten major foreign currencies mentioned earlier exchange market, this depreciation of the dollar was about 20 per cent higher than in the spring was substantially larger than prevailing interna­ of 1970—or close to the level at which it tem­ tional price levels or long-term prospects for our porarily stabilized one year ago. balance of payments justified. The most important factor in the recent After our intervention in July and the release weakening of the dollar appears to have been of new and favorable trade and payments figures the reassessment by market participants of the for the United States, the dollar strengthened probable effects of the world energy crisis on by about 3 per cent during the first weeks of the balance of payments of individual countries. August. There was little further net change in Foreign exchange traders have been impressed the dollar’s value until late October, when the by the remarkable ability of German business dollar began to strengthen in exchange markets. firms to continue augmenting their exports, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 271 while passing on to buyers their sharply higher no practical choice except to put up with floating costs. Traders have also been influenced by the exchange rates. But although exchange-rate large borrowings in the Euro-currency markets flexibility is helpful under present circum­ that have recently been negotiated by the Gov­ stances, it is of course no panacea for the ernments of Italy, France, and the United King­ international problems facing our Nation or any dom for the purpose of financing the trade other nation. Indeed, unless we in the United deficits caused by higher oil prices. These de­ States proceed with stronger determination than velopments in turn have led to some reassess­ we have yet mustered to restrain inflationary ment of the magnitude of the capital flow from forces, the consequences may be worse than the oil-exporting countries that is likely to end they would have been when exchange rates were up in the United States. held within very narrow margins by official Other factors have also played a part in the intervention. recent weakening of the exchange value of the Thus, if prices in the United States were to dollar. The termination in late January of our rise at a more rapid rate than abroad, our exports controls over the outflow of capital contributed would become less competitive and domestic to market pressures on the dollar in February demand would tend to shift away from goods and March, and so too did the relaxation by produced at home to imported products. For­ some foreign governments of their restraints on merly, with fixed exchange rates, this lower capital inflows. There is some evidence, espe­ volume of exports would have eased demand cially in connection with the strengthening of pressures on domestic resources; and the diver­ the Canadian dollar in February, that wider sion of demand toward imports would also have interest-rate differentials in favor of foreign- served to moderate upward pressure on our currency assets contributed to the recent dollar general price level. With floating exchange depreciation. During March rumors of a reval­ rates, however, a more rapid rate of inflation uation of the German mark caused speculative in the United States than abroad would tend to flurries on several occasions. And the sharp rise lead to a depreciation of the dollar in exchange in our price level that occurred in January and markets. Such a depreciation, as noted earlier, February has surely not gone unnoticed, and it results not only in higher dollar prices of im­ may well have reduced, in the eyes of some ported goods, but also in higher prices of do­ investors, the attractiveness of dollar assets rel­ mestic substitutes and of finished products based ative to assets denominated in foreign curren­ on imported materials. Speculative anticipations cies. of further weakness in the exchange value of The large fluctuations in exchange markets the dollar could intensify this vicious circle of since the beginning of 1973 have reflected domestic inflation and exchange depreciation. speculative trading as well as changes in real In short, with exchange rates floating, faster circumstances of individual nations—such as inflation in the United States than abroad would the improvement in our country’s balance of tend to induce a depreciation of the dollar in trade and payments during the past 15 months. exchange markets, which in turn would exacer­ The magnification of exchange fluctuations bate our inflation problem. No such intensifica­ through speculative trading is a troublesome tion can take place under a regime of fixed feature of a floating system. On the other hand, exchange rates; or more precisely, it cannot take had it not been for floating exchange rates, the place so long as international reserves remain financial world would probably have experi­ sufficient to obviate the need for devaluation. enced a major crisis last fall. As things turned There is another difference between the out, exchange markets absorbed remarkably present system of flexible exchange rates and well the shock produced by the abrupt and the former regime of fixed rates that requires massive manipulation of oil shipments and attention. Under either regime, changes in inprices by the major oil-exporting countries. terest-rate differentials between the United With many financial, commercial, and politi­ States and foreign countries will tend to induce cal issues still unresolved among the nations of international capital flows. When exchange rates the world, our own and other governments have were held fixed, such capital outflows from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN □ APRIL 1974 United States produced a decline in our net scrupulously avoid policies that are harmful to reserve position. Now, with exchange rates other countries—especially the imposition of floating, capital outflows will tend to cause some restrictions on trade and payments. depreciation of the dollar in exchange markets, The United States in particular needs to en­ and thus bring into play the unhappy conse­ sure that declarations such as these at interna­ quences for our price level that I have already tional meetings are more than fine rhetoric. recited. Constructive steps can be taken in three areas: An important conclusion follows from this facilitation of adjustment problems caused by analysis of the interdependence between do­ higher oil prices, reduction of trade barriers, and mestic inflation and the exchange value of the international monetary cooperation. dollar, namely, that under the present regime The higher oil prices will generate an enor­ of floating exchange rates, it is more necessary mous flow of additional revenues to the oil-exthan ever to proceed cautiously in executing an porting countries. The capacity of these coun­ expansionary economic policy. tries to expand their imports is very limited, Since the effects of floating exchange rates however, in the short run. Therefore, even when vary with circumstances, being helpful in cer­ oil prices decline this year or next, which I tain respects and injurious in others, no respon­ believe will happen, the oil-exporting countries sible government is prepared to allow the inter­ will probably still experience huge surpluses in national value of its currency to be determined the current account of their balance of pay­ solely by the untrammeled play of market ments. On the other hand, we and other coun­ forces. That is why the Federal Reserve System tries will probably experience sizable deficits. and the Treasury have been cooperating with In principle, the essential means for the financ­ monetary authorities abroad—most recently in ing of these deficits are at hand, since the February and March—to moderate abrupt oil-exporting countries must invest their huge movements in exchange rates and to prevent the surpluses in some form—in the traditional emergence of disorderly conditions in exchange money and capital markets of other countries, markets. We in the United States certainly can­ or the Euro-currency market, or through inter­ not accept with equanimity exchange-rate national institutions. Unfortunately, there is no movements that clearly undervalue the dollar. assurance that the distribution of the investments Nor would our trading partners want us to do of the oil-exporting countries will match the that. Cooperation in managing the present ex- distribution of the current-account deficits that change-rate arrangements is essential if the na­ their manipulation of oil prices has caused. tions of the world are to minimize economic Many of the oil-importing countries that fail and political frictions and to promote orderly to attract these investments will be able to draw expansion of international transactions. down their foreign-exchange reserves or borrow Present uncertainties about the world eco­ in the Euro-currency or traditional money and nomic outlook, in particular the consequences capital markets. But special cooperative meas­ of the current energy problem, have increased ures will be required to assist countries for the need for international cooperation in other which these temporary remedies are not suffi­ areas as well. But effective cooperation requires ciently available. Some countries, particularly effective leadership. The United States, being among the developing nations, face oil-financ­ much the strongest economic and financial ing problems that are literally beyond their ca­ power in the world, is expected by the interna­ pacity to manage. tional community to provide the leadership Oil-exporting countries themselves should without which lasting economic achievement play a major role in ameliorating the impact on may be impossible. Our Government recognizes the rest of the world of their sharply higher oil this responsibility and exercised it effectively prices—first and foremost, by bringing down at the Energy Conference held in Washington these prices to a more reasonable level, and this February. The nations participating in that second, by providing massive assistance to the Conference agreed, as did also the Committee developing countries. Imaginative use can be of Twenty in January, that every country must made of existing financial institutions such as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 273 the World Bank, the International Monetary its Deputies have been laboring under difficult Fund (IMF), the Bank for International Settle­ circumstances. I have never expected interna­ ments, and the Asian Development Bank; some tional monetary reform to be blueprinted in progress along these lines is already visible. The advance so that it could be methodically imple­ Federal Reserve’s own network of reciprocal mented all at once. International monetary re­ currency arrangements can play a modest role form is bound to be an evolutionary process and by temporarily financing short-term move­ to reflect unfolding experience. ments of funds; to this end, the swap lines with I expect the Committee of Twenty to reach the Bank of Italy and the Bank of England agreement this summer on the basic principles have recently been expanded, each by $1 and broad features of a reformed international billion. We should also explore new instru­ monetary system. This agreement should lay the mentalities, such as the multinational joint- basis for considerable strengthening of the IMF. venture arrangement mentioned as a possibility Hopefully, a new high-level Council will be by Secretary Shultz at the Washington Energy created in the IMF; this body will be charged Conference. with the responsibility for continuously review­ These financial measures can be helpful in ing the structure and operation of the interna­ the short run while other measures, which will tional monetary system. I also believe that only become fully effective in the longer run, agreement can be reached this summer on sev­ are being taken. The long-run solution of the eral vital monetary arrangements, such as energy problem is not yet clear beyond the fact guidelines for floating, the valuation of special that it will require massive programs to conserve drawing rights, and guidelines for an adjustment energy use, to develop new energy sources, and process to avoid persistent increases or de­ to accelerate energy research. Project Inde­ creases of the international reserves of individ­ pendence, outlined in the President’s Budget ual countries. Message, is designed to advance these programs I am bound to observe, however, that no set in the United States; and the Washington Energy of international monetary arrangements can Conference has also agreed to seek methods of function successfully in an environment of rapid international cooperation with regard to such inflation such as we and other countries have matters as the conservation of energy, the shar­ recently been experiencing. The paramount task ing of nuclear and other technologies in the to which economic policy in all countries must energy area, and research aimed at developing be devoted at the present time is firm control or hastening the exploitation of new energy over the inflationary forces distorting the world sources. economy. It is particularly important that the Reduction of trade barriers is a second area United States, to which so many countries look in which increased international cooperation can for leadership, bring its own inflation under play a useful role. The Congress can do its part control. By setting an example for other coun­ by speedily enacting the Trade Reform Act. tries, we will aid them as well as ourselves. Other countries must also make an earnest effort Improvement in price performance during to move trade negotiations forward. In the 1974 is essential to our future, and it is also meantime, we should insist that the nations of within our means. The rise in consumer prices the world bind themselves to avoid bilateral should moderate later this year as petroleum agreements that give support to cartel arrange­ prices level off or decline in response to in­ ments. We should also seek agreement—in case creased supplies of gasoline and fuel oil, and of balance of payments difficulties—not to im­ as food supplies expand in response to incen­ pose new restrictions on imports, or artifically tives for farmers to increase production. There stimulate exports, without IMF approval. are other favorable price developments on the International monetary reform is the third area horizon. A temporarily slower pace of economic in which useful cooperative steps can be taken activity, both here and abroad, should cause a in the months ahead. I see no reason for being decline in the prices of industrial raw materials discouraged by the progress made to date by and in internationally traded commodities. Ac­ the Committee of Twenty. The Committee and tually, wholesale prices of farm and food prod­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN □ APRIL 1974 ucts have declined appreciably in recent weeks, policies. For our part, we at the Federal Reserve and prices of cotton and some other industrial are determined to follow a course of monetary materials have also edged down from previous policy that will permit only moderate growth peaks. of money and credit. Such a policy should make Realistically, however, we can hardly expect it possible for the fires of inflation to burn a return to general price stability in the near themselves out, while at the same time it pro­ future. Substantial increases in the prices of vides the financial basis for the resumption of numerous commodities and services are practi­ orderly economic growth. cally unavoidable this year because relative In the present economic environment fiscal prices of many items are now badly out of policy can be used to better advantage than balance. Moreover, despite the restraint shown monetary policy in alleviating unemployment. in most wage settlements during 1973, increases Selective measures such as an expanded public in wage rates are running well ahead of produc­ employment program or increased unemploy­ tivity gains, and unit-labor costs are rising rap­ ment benefits could cushion the economic ad­ idly. If economic activity proceeds rather slug­ justments now under way. Also, a selective tax gishly this year, as seems likely, productivity policy of accelerated amortization could stimu­ gains will probably be even smaller than they late investment in the energy and other basic were last year. A rise in wages that is faster materials industries, thereby relieving the more than we have recently experienced would there­ critical shortages of capacity that have recently fore put great upward pressure on costs of proved so troublesome. I would strongly advise production and on prices. the Congress, however, against adoption, at this Whatever the cause, if rapid inflation con­ time, of broadly stimulative fiscal measures, tinues this year, it may undermine confidence, such as a general tax cut or a new public works cause interest rates to move higher, and program. seriously diminish our chances of regaining a In closing, I cannot let this opportunity pass stable and broadly based prosperity. It may also without expressing great satisfaction that a bill destroy the gains recently made in improving reforming congressional budget procedures is our competitive position in world markets and now in conference and will soon become law. in strengthening our balance of payments. After long and conscientious study, the Public policy at the present time is confronted Congress has developed systematic procedures with an exceptionally difficult economic situa­ for setting an over-all spending limit that will tion. Inflation is proceeding at a dangerous pace, be related rationally to both expected revenues economic activity is high but sluggish, and and to economic conditions, and then establish­ international financial relations are under strain. ing spending priorities within that limit. These Our best chance of surmounting these accumu­ new procedures should end the practice of per­ lated difficulties is to face up squarely to the sistently running budget deficits—deficits which gravity of the inflation problem. The pace of have appeared in good times as well as in bad, inflation needs to be substantially reduced, even and which very frequently were unplanned and if it cannot be halted, this year. unwanted by either the Congress or the admin­ Our chances of bringing inflation under con­ istration. This landmark legislation will enable trol will be enhanced if our Nation’s business us to avoid excessively stimulative fiscal policy, and labor leaders exercise restraint in the wage- which has been a major source of the inflation price area. Governmental programs to improve during the past decade. It will enable us at long productivity and to encourage larger output of last to use fiscal policy effectively—to restrain products in short supply could also be of benefit. demand as well as to stimulate it. Used wisely, But in the end, we will have to rely principally this legislation has enormous potential for re­ on prudent management of monetary and fiscal storing price stability in the future. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal O pen Market C om m ittee M EETING HELD ON JANUARY 21-22, 19741 1. D o m estic policy d irectiv e Preliminary estimates of the Commerce Department indicated that growth in real output of goods and services (real gross national product) had slowed to an annual rate of 1.3 per cent in the fourth quarter of 1973—from 3.5 per cent in the third quarter—and that the rise in the GNP implicit deflator had accelerated to an annual rate of about 8 per cent, in part as a result of the impact of the oil shortage. Staff projections suggested that economic activity would weaken further in the first half of 1974 and that prices would rise somewhat more sharply than had been expected 5 weeks earlier. In December industrial production declined, as output of automobiles fell sharply and residential and commercial use of electricity and gas was substantially reduced; the gain in industrial production from the third to the fourth quarter of 1973 was small. Nonfarm payroll employment—which had grown rapidly in the first 11 months of the year—expanded little in December, when some workers were laid off as a result of the energy situation, and the unemployment rate rose further to 4.9 per cent. Retail sales declined in December and changed little in the fourth quarter as a whole, chiefly because of a drop in demand for the larger automobiles and for some other durable goods. Wholesale prices of industrial commodities rose sharply further in December; as in the preceding 2 months, increases were large for fuels and were substantial and widespread among other indus­ trial commodities. Wholesale prices of farm and food products, which had declined for 3 months, turned up, reflecting sizable increases in prices of grains, animal feeds, oilseeds, fats and oils, lrThis meeting was held over a 2-day period, beginning on the evening of January 21, 1974, in order to enable the Committee to hear reports from members who had attended international gatherings without infringing on the time available for its deliberations on current monetary policy. Digitized for FRASER 275 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN □ APRIL 1974 and raw cotton. In the closing months of 1973 the consumer price index continued upward at a rapid rate as a result of the rise in prices of various types of energy and increases in prices of foods and services. The index of average hourly earnings of production workers on private nonfarm payrolls also continued to move up at a fast pace, but real spendable weekly earnings of production workers declined in the fourth quarter of the year as they had over the first three quarters. Staff projections for the first half of 1974 still suggested that the short-fall in supplies of petroleum products would lead to additional curtailment in expenditures for automobiles and related goods and services. Consequently, real consumption expenditures, which had declined in the fourth quarter of 1973, would remain weak. As before, it was anticipated that the decline in residential construction would be extended but that the expansion in business fixed investment would remain relatively strong and that growth in State and local government purchases of goods and services would continue at a substantial rate. The over-all increase in nominal GNP projected for the first half of the year was now somewhat greater than had been expected 5 weeks earlier, owing to larger increases in prices—mainly in those of petroleum prod­ ucts. In late December the large price increase for crude oil imposed by producing countries generated new uncertainties and fears about foreign trade prospects for oil-importing countries, about the size and direction of international flows of funds, and about the course of economic activity in major industrial countries. Participants in foreign exchange markets apparently believed that the United States would be the principal recipient of the capital flows arising from the investment of oil producers’ receipts; as a result, major foreign currencies depreciated significantly further against the dollar in late December and early January—even while some foreign monetary authorities intervened in the markets, selling large amounts of dollars to limit depreciation of their currencies. U.S. merchandise imports had risen substantially in November, in part because of earlier sharp increases in prices of petroleum products. Exports also had advanced, but U.S. merchandise trade had been in approximate balance, following 2 months of large surpluses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 277 Total loans and investments at U.S. commercial banks increased relatively little in December, and growth in bank credit over the fourth quarter was moderate. Expansion in outstanding business loans—which had picked up in November—slowed again in De­ cember as some borrowers apparently used proceeds of new bond issues to pay down bank loans. Real estate and consumer loans grew at about the same rates as in November, remaining well below rates earlier in the year. And while banks added to their holdings of State and local government securities, they further reduced their holdings of Treasury issues. The narrowly defined money stock (Mj)2 continued to grow at a rapid pace in December, but growth was somewhat faster over the November-December period than it otherwise would have been because of temporary increases in deposits held by foreign com­ mercial banks; weekly data suggested that on balance Mx changed little between mid-December and mid-January. In December in­ flows of time and savings deposits other than large-denomination certificates of deposit (CD’s) were still sizable, although somewhat less than in November, and growth in the more broadly defined money stock (M2)3 remained substantial. The outstanding volume of large-denomination CD’s expanded, contributing to a moderate pick-up in growth in the bank credit proxy4 from very slow rates in October and November. In late December and early January the outstanding volume of such CD’s expanded further, and the credit proxy grew at a faster rate. Net deposit inflows at nonbank thrift institutions—which had improved significantly in October and November—expanded slightly further in December, reflecting primarily a larger-than-seasonal amount of interest credited to accounts at the month’s end; growth in the measure of the money stock that includes such deposits (M3)5—like growth in M2—remained substantial. Contract interest rates on conventional mortgages were unchanged in De­ 2Private demand deposits plus currency in circulation. 3Mx plus commercial bank time and savings deposits other than large-denomi­ nation CD’s. 4Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 5M2 plus time and savings deposits at mutual savings banks and at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN □ APRIL 1974 cember, after having declined over the two preceding months, but yields in the secondary market for Federally insured mortgages declined for the third consecutive month. Following the Committee meeting in mid-December, System open market operations had been directed initially toward achieving some easing in bank reserve and money market conditions—in accordance with the Committee’s decision to seek such easing, provided that the monetary aggregates did not appear to be growing excessively. As a result the Federal funds rate declined to a level of around 93A per cent in the early days of January—from around lOVs per cent in the two statement weeks before the December meeting—and member bank borrowings declined to an average of about $1,010 million in the 3 weeks ending January 9 from an average of about $1,390 million in the preceding 4 weeks. On January 11, after incoming data had suggested that in the December-January period the annual rate of growth in reserves available to support private nonbank deposits (RPD’s) might be close to the upper limit of the specified range and that rates of growth in Mx and M2 might exceed acceptable ranges, a majority of the available members 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. The funds rate remained around 93A per cent until the last few days before this meeting, when it averaged about 95/s per cent; in the statement week ending January 16 member bank borrowings were about $990 million. Changes in market interest rates since mid-December had been mixed. Long-term rates in general had risen in response to a relatively heavy volume of capital market financing. The over-all volume of new public offerings of corporate and State and local government bonds—which had expanded in the October-November period—declined less than seasonally in December, and a substan­ tial increase was in prospect for January. In short-term markets some private rates had declined since mid-December, reflecting the slackening in business demands for short-term credit and the inflow of funds from abroad. However, Treasury bill rates had risen, apparently because money market conditions had eased less than market participants had expected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 279 and because foreign monetary authorities had sold a substantial volume of bills in association with their intervention in foreign exchange markets. The Treasury was expected to announce on January 30 the terms of its mid-February refunding. Of the maturing issues, $4.5 billion were held by the public. A staff analysis suggested that, because of the larger rise in prices and higher projected rate of expansion in nominal GNP, growth in the demand for money over the first half of 1974 was likely to be somewhat greater than had been expected earlier. It appeared likely that if Mx were to grow at a rate consistent with the Committee’s earlier longer-run objectives for the monetary aggre­ gates, money market conditions would tighten somewhat in the period immediately ahead and market interest rates in general would rise. As a result, net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions might decline appreciably, reducing the rates of growth in both M% and Af3. This analysis implied that a moderately higher rate of growth in Mx would be associated with little change or possibly some easing in money market conditions; under these conditions net inflows of consumer-type time and savings deposits likely would be main­ tained or would expand somewhat from recent rates. According to the staff analysis, expansion in M1 was likely to be relatively slpw on the average in the January-February period— following the rapjd pace over the preceding 2 months that was attributable in part to the transitory increases in deposits held by foreign commercial banks. However, growth was expected to be faster in the second quarter, reflecting the temporary effects of large refunds of Federal income taxes and initial payments of increased social security benefits. It was also anticipated that growth in bank credit would pick up this winter from the low rate of the fourth quarter of 1973 and that the outstanding volume of large-denomi­ nation CD’s, which had turned up in mid-December, would expand at a moderate pace. The Committee agreed that the economic situation and outlook called for moderate growth in monetary aggregates over the longer run, including a slightly higher rate of growth in Mx than contem­ plated earlier. Taking account of the staff analysis, the Committee concluded that growth in Mx and M2 over the January-February Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN □ APRIL 1974 period at annual rates within ranges of tolerance of 3 to 6 per cent and 6 to 9 per cent, respectively, would be consistent with its longer-run objectives for the monetary aggregates. The members agreed that such growth rates would be likely to involve RPD growth during the January-February period at an annual rate within a 4% to 7% per cent range of tolerance, and they decided that in the period until the next meeting the weekly average Federal funds rate might be permitted to vary in an orderly fashion from as low as 8% per cent to as high as 10 per cent, if necessary, in the course of operations. It was understood that a slight easing in reserve and money market conditions would be sought promptly, provided that the data becoming available later in the week of the meeting did not suggest that the monetary aggregates were growing rapidly. The members also agreed that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of international and domestic financial market developments. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objectives and con­ straints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that growth in real output of goods and services was slow in the fourth quarter of 1973, in part because of the fuel situation. Prices continued to rise sharply in December, reflecting additional increases for petro­ leum products and widespread advances among other goods and services. A further weakening in activity and sharp rise in prices appear to be in prospect for early 1974. In December nonfarm payroll employment changed little, and the unemployment rate increased further. Wage rates have continued to rise substantially in recent months, although not so sharply as prices. Major foreign currencies have depreciated further against the dollar since mid-December, and some foreign monetary authorities have continued to sell dollars in exchange markets. Steep price increases imposed by oil-producing countries have heightened fears of economic disruption in many countries and of large and erratic international flows of funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 281 The narrowly defined money stock increased substantially in the last 2 months of 1973, partly reflecting increased foreign deposits, but it has changed little on balance over recent weeks. Net inflows of consumer-type time deposits remained sizable at both banks and nonbank thrift institutions. Bank credit expansion, which was mod­ erate over the closing months of 1973, has accelerated in recent weeks as banks have stepped up issuance of large-denomination CD’s. Since mid-December, interest rate movements have been mixed; yields on most long-term securities and on Treasury bills have risen on balance, while some private short-term rates have declined. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ ducive 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 the forthcoming Treasury financing and of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in mone­ tary aggregates over the months ahead. Votes for this action: Messrs. Burns, Balles, Brimmer, Bucher, Daane, Holland, Mayo, Mit­ chell, Morris, and Sheehan. Votes against this ac­ tion: Messrs. Hayes and Francis. In dissenting, both Mr. Hayes and Mr. Francis indicated that they favored no change in the Committee’s longer-run objectives for growth in the monetary aggregates, and Mr. Hayes also was opposed to a range of tolerance for the Federal funds rate that was skewed to the low side of the range that had prevailed in recent days. In Mr. Hayes’ view, the probabilities favored a relatively mild business slowdown in 1974 as a whole, and in light of the rapid monetary growth in recent months, the Committee should lean against the strong inflationary pressures that remained the major economic problem. Mr. Francis believed that the actual and prospective slowdown in economic activity resulted wholly from capacity, supply, and price-distorting constraints, rather than from a weakening in demand, and that any easing in monetary policy would increase inflationary pressures without expanding real output or reducing unemployment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDERAL RESERVE BULLETIN □ APRIL 1974 2. R atification of earlier action By unanimous vote, the Cortimittee ratified the action for which a majority of the members had voted on January 4, 1974, increasing from $2 billion to $3 billion the limit on changes between Com­ mittee 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 for the period from January 4 through the close of business on January 22, 1974. The action in question had been 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 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. 3. A uthorization for foreign currency operations The Committee approved an increase from $2 billion to $3 billion in the System’s swap arrangement with the Bank of Italy, and the corresponding amendment to paragraph 2 of the authorization for foreign currency operations, subject to the understanding that the action would become effective upon approval by the Subcom­ mittee (consisting of the Chairman and Vice Chairman of the Committee and the Vice Chairman of the Board of Governors) designated in the Committee’s rules of procedure, after consultation with the U.S. Treasury. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Holland, Mayo, Mitchell, Morris, and Sheehan. Votes against this action: None. On January 29, 1974, the Subcommittee approved the indicated increase, effective February 1, 1974. Accordingly, as of the latter date, paragraph 2 of the authorization read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 283 The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements (“swap” arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of arrangement (millions of Foreign bank dollars equivalent) Austrian National Bank .................................................. 250 National Bank of Belgium ............................................. 1,000 Bank of Canada ................................................................. 2,000 National Bank of Denmark .......................................... 250 Bank of England ............................................................... 2,000 Bank of France .................................................................... 2,000 German Federal Bank ...................................................... 2,000 Bank of Italy ........................................................................ 3,000 Bank of Japan........................................................................ 2,000 Bank of Mexico .................................................................. 180 Netherlands Bank ................................................................ 500 Bank of Norway .................................................................. 250 Bank of Sweden .................................................................. 300 Swiss National Bank ........................................................ 1,400 Bank for International Settlements: Dollars against Swiss francs ..................................... 600 Dollars against other European currencies ........ 1,250 This action was taken on the grounds that it would prove helpful in coping with possible exchange market pressures on the lira arising from the oil crisis, and thus would contribute to international monetary stability. 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 OPEN MARKET PURCHASES OF the present requirement that banks have in their BILLS OF EXCHANGE, possession shipping documents conveying or se­ TRADE ACCEPTANCES, BANKERS ACCEPTANCES curing title at the time they accept drafts covering The Board of Governors has revoked, effective the shipment of goods within the United States. April 1, 1974, its Regulation B relating to open market purchases of bills of exchange and bankers’ REGULATION RELATING TO OPEN MARKET acceptances. After April 1, all provisions relating OPERATIONS to such purchases will be included in the Regula­ 1. Effective April 1, 1974, section 270.4(c)(2) tion Relating to Open Market Operations of Fed­ is amended to read as follows: eral Reserve Banks of the Federal Open Market Committee, and in authorizations and directives SECTION 270.4—TRANSACTIONS IN issued by the Committee. OBLIGATIONS ACCEPTANCE BY MEMBER BANKS OF (c) In accordance with such limitations, terms, DRAFTS OR BILLS OF EXCHANGE and conditions as are prescribed by law and in The Board of Governors has revoked, effective authorizations and directives issued by the Com­ April 1, 1974, its Regulation C dealing with ac­ mittee, the Reserve Bank selected by the Commit­ ceptance by member banks of drafts or bills of tee is authorized and directed— exchange. Interpretations of the statutory provisions that have been issued by the Board from time to time (2) To buy and sell bankers’ acceptances in the remain, for the present, in full force and effect. open market for its own account; The Board intends to undertake a general review of its outstanding statutory interpretations with a view to determining whether any modifications should be made in light of current business and BANK HOLDING COMPANIES banking practices. The Board of Governors has amended its Regu­ lation Y to permit the leasing of both real and OPEN MARKET OPERATIONS OF personal property. The Board has determined that FEDERAL RESERVE BANKS separate regulations for real and personal property leasing would allow greater flexibility for innova­ PURCHASE OF BANKERS’ tion and the evolution of bank holding company ACCEPTANCES leasing transactions. Accordingly, the Board is adopting separate regulations with substantially the Beginning April 1, 1974, purchase and sale of same provisions. bankers’ acceptances by Federal Reserve Banks will be conducted pursuant to provisions of para­ AMENDMENT TO REGULATION Y graphs 1(b) and 1(c) of the Committee’s Authori­ zation for Domestic Open Market Operations, as 1. Effective April 17, 1974, section 225.4(a)(6) amended effective on that date. The new rules, is amended to read as follows: as set forth in the Authorization, eliminate out­ SECTION 225.4—NONBANKING ACTIVITIES dated provisions in the present rules specified in Regulation B and broaden somewhat the scope of (a) Activities closely related to banking or bankers’ acceptances eligible for purchase by managing or controlling banks. *** The follow­ Federal Reserve Banks. The new rules eliminate ing activities have been determined by the Board Digitized for FRASER 284 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 285 to be so closely related to banking or managing (v) the maximum lease term during which the or controlling banks as to be a proper incident lessor must recover the lessor’s full investment in thereto: the property plus the estimated total cost of fin­ ancing the property shall be 40 years; and (vi) at the expiration of the lease (including any (6)(a) Leasing personal property or acting as renewals or extensions with the same lessee), all agent, broker or adviser in leasing such property interest in the property shall be either liquidated provided: or re-leased on a nonoperating basis as soon as (i) the lease is to serve as the functional equiv­ practicable but in no event later than two years alent of an extension of credit to the lessee of the from the expiration of the lease,6 however, in no property; case shall the lessor retain any interest in the (ii) the property to be leased is acquired specif­ property beyond 50 years after its acquisition of ically for the leasing transaction under consid­ the property. eration or was acquired specifically for an earlier (6)(b) Leasing real property or acting as agent, leasing transaction; broker or adviser in leasing such property pro­ (iii) the lease is on a nonoperating basis; vided: (iv) at the inception of the initial lease the effect (i) the lease is to serve as the functional equiv­ of the transaction (and, with respect to govern­ alent of an extension of credit to the lessee of the mental entities only, reasonably anticipated future property; transactions4) will yield a return that will compen­ (ii) the property to be leased is acquired speci­ sate the lessor for not less than the lessor’s full fically for the leasing transaction under consid­ investment in the property plus the estimated total eration or was acquired specifically for an earlier cost of financing the property over the term of the leasing transaction; lease,5 from: (1) rentals; (2) estimated tax benefits (iii) the lease is on a nonoperating basis; (investment tax credit, net economic gain from tax (iv) at the inception of the initial lease the effect deferral from accelerated depreciation, and other of the transaction (and, with respect to govern­ tax benefits with a substantially similar effect); (3) mental entities only, reasonably anticipated future the estimated residual value of the property at the transactions4) will yield a return that will compen­ expiration of the initial term of the lease, which sate the lessor for not less than the lessor’s full in no case shall exceed 20 per cent of the acquisi­ investment in the property plus the estimated total tion cost of the property to the lessor; and (4) in cost of financing the property over the term of the the case of a lease of not more than 7 years in lease,5 from: (1) rentals; (2) estimated tax benefits duration, such additional amount, which shall not (investment tax credit, net economic gain from tax, exceed 60 per cent of the acquisition cost of the deferral from accelerated depreciation, and other property, as may be provided by an unconditional tax benefits with a substantially similar effect); and guarantee by a lessee, independent third party or (3) the estimated residual value of the property manufacturer, which has been determined by the at the expiration of the initial term of the lease, lessor to have the financial resources to meet such which in no case shall exceed 20 per cent of the obligation, that will assure the lessor of recovery acquisition cost of the property to the lessor. of its investment and cost of financing; (v) the maximum lease term during which the lessor must recover the lessor’s full investment in 4The Board understands that some Federal, State and local governmental entities may not enter into a lease for a period the property plus the estimated total cost of fin­ in excess of one year. Such an impediment does not prohibit ancing the property shall be 40 years; and a company authorized under § 225.4(a) from entering into a lease with such governmental entities if the company reason­ (vi) at the expiration of the lease (including any ably anticipates that such governmental entities will renew the renewals or extension s with the same lessee), all lease annually until such time as the company is fully compen­ interest in the property shall be eithfcr liquidated sated for its investment in the leased property plus its costs of financing the property. Further a company authorized under or re-leased on a nonoperating basis as soon as § 225.4(a)(6) may also engage in so-called “bridge” lease practicable but in no event later than two years financing of personal property, but not real property, where from the expiration of the lease,6 however, in no the lease is short term pending completion of long term financing, by the same or another lender. 5The estimate by the lessor of the total cost of financing 6In the event of a default on a lease agreement prior to the property over the term of the lease should reflect, among the expiration of the lease term, the lessor shall either re-lease other factors, the term of the lease, the modes of financing such property, subject to all the conditions of this subsection available to the lessor, the credit rating of the lessor and/or 6(a), or liquidate such property as soon as practicable but in the lessee, if a factor in the financing, and prevailing rates no event later than two years from the date of default on a in the money and capital markets. lease agreement. 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286 FEDERAL RESERVE BULLETIN □ APRIL 1974 case shall the lessor retain any interest in the property beyond 50 years after its acquisition of (29) Under the provisions of Section 3(a) of the the property. Bank Holding Company Act (12 U.S.C. 1842), ^ 5fC ^ ^ ^ to approve by a letter of notification without com­ As an incident to this amendment the footnotes pliance with section 262.3(h) of the Board’s Rules in § 225.4(a) which are denoted by asterisks and of Procedures, the retention of shares of bank stock numbers are hereby redesignated as follows for acquired in a fiduciary capacity (with sole voting clarity and ease of reference: the footnote in § rights) for a two-year period from the date of such 225.4(a)(1) designated as * to footnote 1; foot­ acquisition, provided that the Applicant undertakes notes 1 and 2 in § 225.4(a)(5) to footnotes 2 and unconditionally to dispose of such shares or its 3; footnote 3 in § 225.4(a)(10) to footnote 7; sole discretionary voting rights with respect to footnote 3a in § 225.4(a)(ll) to footnote 8; the such shares within two years from the date of such footnotes in § 225.4(a)(12) designated as * and acquisition. ** to footnotes 9 and 10; footnote 1 in § 225.4(b)(1) to footnote 11; and footnote 2 in § 2. Effective March 19, 1974, section 225.3 of 225.4(d) to footnote 12. Regulation Y is amended by adding § 225.3(c) to read as follows: RULES REGARDING DELEGATION OF AUTHORITY AND BANK HOLDING COMPANIES SECTION 225.3—ACQUISITION OR RETEN­ The Board of Governors has amended its Rules TION OF BANK SHARES OR ASSETS Regarding Delegation of Authority and its Regu­ lation Y to grant the Federal Reserve Banks au­ thority to approve under delegated authority the (c) Applications to retain shares acquired in retention of bank stock acquired in a fiduciary a fiduciary capacity. Applications under this sub­ capacity if a bank holding company undertakes section are processed on the basis of a letter of unconditionally to dispose of such shares or the notification without compliance with section sole discretionary authority to vote such shares 262.3(h) of the Board’s Rules of Procedure. Any within a two year period. application for the Board’s approval to retain shares of bank stock acquired in a fiduciary capac­ 1. Effective March 19, 1974, section 265.2 ity (with sole voting rights), which is accompanied (f)(29) is added to read as follows: by an unconditional undertaking by the Applicant SECTION 265.2—SPECIFIC FUNCTIONS to dispose of such shares or its sole discretionary DELEGATED TO BOARD EMPLOYEES voting rights with respect to such shares within AND FEDERAL RESERVE BANKS two years from the date of such acquisition, shall be deemed to be approved 45 days after the Ap­ plicant has been informed by the Reserve Bank that said application has been accepted, unless the (f) Each Federal Reserve Bank is authorized, Applicant is notified to the contrary within that as to member banks or other indicated organi­ time or is granted approval at an earlier date. zations headquartered in its district, or under subparagraph (25) of this paragraph as to its officers: BANK HOLDING COMPANY AND BANK M ERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF company through acquisition of 81 per cent or BANK HOLDING COMPANY ACT more of the voting shares of Peoples State Bank, Rossville, Kansas (“Bank”). PEOPLES STATE BANKSHARES, INC., Notice of the application, affording opportunity ROSSVILLE, KANSAS for interested persons to submit comments and Order Approving Formation of Bank views, has been given in accordance with § 3(b) Holding Company of the Act. The time for filing comments and views Peoples State Bankshares, Inc., Rossville, has expired, and the Board has considered the Kansas, has applied for the Board’s approval under application and all comments received in light of § 3(a) (1) of the Bank Holding Company Act (12 the factors set forth in § 3(c) of the Act (12 U.S.C. U.S.C. 1842(a)(1)) of formation of a bank holding 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 287 Applicant, a recently formed corporation, was Governor Brimmer. Absent and not voting: Governors Sheehan and Wallich. organized for the purpose of owning and operating Bank. Bank, with deposits of $5.7 million,1 is the (Signed) C hester B. Feldberg, only banking institution in the rural town of Ross- [seal] Secretary of the Board. ville (population of 1,000), located 15 miles from Topeka, Kansas. Since Applicant has no present operations or subsidiaries, it appears that consum­ Dissenting Statement of mation of the proposal would not affect existing Governor Brimmer or potential competition, nor have an adverse I would deny the application by Peoples State effect on other area banks. Competitive consid­ Bankshares, Inc. to acquire Peoples State Bank erations are consistent with approval ofthe appli­ and thereby become a bank holding company. My cation. decision is based on an examination of a covenant The financial and managerial resources and fu­ not to compete contained in an employment ture prospects of Applicant depend upon those of agreement that is incident to this proposal. The Bank. In view of Bank’s past record of earnings, former president and majority shareholder of Bank it appears that Applicant would be able to finance has entered into a one-year employment contract the debt incurred in acquiring Bank without plac­ with Bank. Subsequent to termination of his em­ ing an undue strain on Bank’s resources. The ployment, he is prohibited by the covenant from financial condition of Bank is considered satis­ engaging in the business of banking for five years factory and its management has been strengthened within a fifteen mile radius of Rossville. In my as a result of Bank’s new ownership. Prospects view, covenants of this type necessarily inhibit for Applicant and Bank are favorable, and it ap­ competition and should not be sanctioned by the pears that the strengthening of Bank’s management Board. would enhance its ability to provide for the com­ The purpose of such a covenant is to preclude munity’s banking needs. Accordingly, consid­ the restricted individual from offering his support erations relating to this aspect of the proposal are and expertise to a convenient alternative source consistent with approval. of commercial banking services in the Rossville In its consideration of this application, the area in the near future. For reasons stated more Board has examined a covenant not to compete fully in my dissent to the application of First contained in an employment agreement which was Alabama Bancshares, Inc., to acquire Citizens executed in connection with the proposal. The Bank of Guntersville (59 Federal Reserve B u lle­ Board finds that the provisions of this covenant tin 757), such a result is inherently anticompeti­ are reasonable in duration, scope, and geographic tive. area and are consistent with the public interest. In order for this application to be approved, It is the Board’s judgment that the proposed trans­ Applicant would have to establish that the anti­ action would be in the public interest and that the competitive effects of such a covenant “are clearly application should be approved. outweighed in the public interest by the probable On the basis of the record, the application is effect of the transaction in meeting the conven­ approved for the reasons summarized above. The ience and needs of the community to be served.” transaction shall not be made (a) before the thir­ In my view, this has not been established, and tieth calendar day following the effective date of the Board’s approval of this application cannot be this Order or (b) later than three months after the supported. effective date of this Order, unless such period is extended for good cause by the Board, or by ATLANTIC BANCORPORATION, the Federal Reserve Bank of Kansas City pursuant JACKSONVILLE, FLORIDA to delegated authority. By order of the Board of Governors, effective Order Denying Acquisition of Bank March 29, 1974. Atlantic Bancorporation, Jacksonville, Florida, a bank holding company within the meaning of Voting for this action: Chairman Burns and Governors Mitchell, Bucher, and Holland. Voting against this action: the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire not less than 80 per cent of the voting shares of Bank of New Smyrna, New Smyrna Beach, Florida (“Bank”). 1 All banking data are as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN □ APRIL 1974 By Order of November 22, 1972, the Board of 70 per cent of market deposits. The other com­ Governors denied the application of Atlantic Ban­ mercial bank in New Smyrna Beach, First National corporation to acquire Bank (37 Federal Register Bank, is less than half the size of Bank. 25571).1 On May 24, 1973, the Board granted Bank and Applicant’s Daytona Beach banking Applicant’s Request for Reconsideration. The Re­ subsidiaries are in separate banking markets; quest for Reconsideration, filed pursuant to section however, there is some slight competitive overlap 262.3(g)(5) of the Board’s Rules of Procedure (12 between these banks with respect to certain bank­ CFR 262.3(g)(5)), was granted because the request ing services. Nonetheless, in viewing the total presented relevant facts (concerning the market in product market of commercial banking, the which Bank operates) that, for good cause shown, amount of competition eliminated is not signifi­ were not previously presented to the Board, and cant. reconsideration otherwise appeared appropriate. In the Board’s view, Applicant is one of the Notice of the Board’s Order granting Appli­ most likely entrants into the New Smyrna Beach cant’s Request for Reconsideration of its applica­ banking market in light of the facts of record; tion to acquire Bank has been given (38 Federal namely, its capabilities for entry, the proximity Register 14727) and the time for filing comments of New Smyrna Beach to an area where Applicant and views has expired and none has been timely has a significant presence (Daytona Beach), its received. The Board has reconsidered this appli­ expansion policy, and its expressed interest in the cation and supplemental material received in con­ New Smyrna Beach market. Moreover, the New nection therewith in light of the factors set forth Smyrna Beach market appears to be capable of in § 3(c) of the Act. supporting new entry. If Applicant entered the Atlantic, the sixth largest banking organization New Smyrna Beach banking market de novo, or and bank holding company in Florida, controls 30 through the acquisition of a smaller bank, the banks with aggregate deposits of approximately effect would likely be procompetitive and in the $1.2 billion, representing about 5.1 per cent of public interest. Given the present concentration of deposits in commercial banks in the State.2 Ac­ the New Smyrna Beach banking market, the ad­ quisition of Bank ($29.7 million in deposits) verse effect consummation of this proposal would would not represent a significant increase in Ap­ have upon the prospects for increased competition plicant’s share of total deposits in the State. and deconcentration in the relevant market, the At the request of the Board, the Federal Reserve probability of Applicant as a future entrant into Bank of Atlanta conducted a survey in the New that market, and the opportunity for an alternative Smyrna area and the results of this survey indicate means of entry into New Smyrna Beach, the Board that the two New Smyrna Beach banks, Bank and concludes that consummation of the transaction First National Bank ($12.7 million in deposits), would have a substantially adverse effect on po­ operate in a local banking market3 which adjoins, tential competition. but is separate from the Daytona Beach banking The financial condition and managerial re­ market. sources and future prospects of Applicant, its Applicant presently operates two banking sub­ subsidiary banks and Bank are regarded as satis­ sidiaries in the Daytona Beach banking market and factory. Thus, banking factors are consistent with is the second largest banking organization in that approval but provide no significant support for market with nearly 20 per cent of market deposits. such action. There is no evidence in the record Bank, located in the adjacent New Smyrna Beach that the banking needs of the residents of the New market, is the dominant commercial banking in­ Smyrna Beach area are not being adequately met stitution in New Smyrna Beach, controlling over at the present time. Moreover, consummation of the proposed transaction would have little impact on the convenience and needs of banking custom­ 1 Board denial was in part premised on the fact that acquisi­ ers in the area since Applicant proposes no mean­ tion of Bank would further increase the concentration of ingful new service not already being offered. Ac­ banking resources in the Daytona Beach banking market since the New Smyrna Beach area was considered a part of that cordingly, the Board finds that the anticompetitive market. effects inherent in Applicant’s proposal are not 2 All banking data are as of June 30, 1973, and reflect bank holding company acquisitions and formations approved by the outweighed by considerations relating to the con­ Board through December 31, 1973. venience and needs of the community to be served. *The New Smyrna Beach banking market is defined as that On the basis of the record in this case and for portion of Volusia County including New Smyrna Beach south to the county line. the reasons set forth in this Order, the Board’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 289 Order of November 22, 1972, is hereby affirmed in the same banking market and, together, control and the subject application is denied. approximately 39 per cent of the deposits in com­ By order of the Board of Governors, effective mercial banks in the market.2 The market is neither March 18, 1974. classified as an SMSA nor viewed as a significant market in terms of either population or deposits. Voting for this action: Chairman Burns and Governors No competition exists between Naples Bank and Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Governor Daane. Board action was taken while Collier Bank as both banks are closely affiliated Governor Daane was a Board member. with the leading directors of Naples Bank also (Signed) Theodore E. A llison, being directors of Collier Bank. In addition, three [seal] Assistant Secretary of the Board. families who control a majority of the shares of Naples Bank have a significantly influential own­ ership position in the Collier Bank. Moreover, the BARNETT BANKS OF FLORIDA, INC., two banks share many common operating facili­ JACKSONVILLE, FLORIDA ties, such as data processing and bookkeeping functions. Based on this and other facts of record, Order Approving Acquisition of Banks the Board concludes that the probability of disaf­ Barnett Banks of Florida, Inc., Jacksonville, filiation occurring between Naples Bank and Col­ Florida, a bank holding company within the lier Bank within the reasonably foreseeable future meaning of the Bank Holding Company Act, has is slight. applied for the Board’s approval under § 3(a)(3) There is little existing competition between any of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 of Applicant’s banking subsidiaries and either per cent or more of the voting shares of (1) The Naples Bank or Collier Bank. Moreover, it does Bank of Naples, Naples, Florida (“Naples Bank”) not appear that future competition between any of and (2) The Collier County Bank, Naples, Florida Applicant’s banking subsidiaries and either Collier (“Collier Bank”). Bank or Naples Bank is reasonably probable due Notice of the applications, affording opportunity to the distances between the banks and Florida’s for interested persons to submit comments and restrictive branching law. Applicant is not a likely views, has been given in accordance with § 3(b) de novo entrant into the Collier County banking of the Act. The time for filing comments and views market since the market is relatively unattractive has expired, and the Board has considered the as measured by its deposits and population per applications and all comments received in light of banking office ratios compared to Statewide ratios. the factors set forth in § 3(c) of the Act (12 U.S.C. Moreover, there are no other significantly smaller 1842(c)). banks in Naples, the commercial center of Collier Applicant controls 49 banks with aggregate de­ County, which Applicant could acquire as an al­ posits of $1.6 billion, representing about 8 per cent ternative means of entry to that of Naples Bank. of deposits in commercial banks in Florida.1 Ac­ Based on these facts and others of record, the quisition of Naples Bank (deposits of $73.6 mil­ Board concludes that competitive considerations lion) and of the Collier Bank (deposits of $9.6 are consistent with approval of the applications. million) would not significantly increase the con­ The financial and managerial resources and fu­ centration of banking resources in the State. ture prospects of Applicant, its subsidiary banks, Moreover, there is no evidence of record to indi­ and Naples Bank and Collier Bank are regarded cate the development of a significant trend toward as generally satisfactory particularly in light of increased concentration of banking resources in Applicant’s commitment to retire certain capital Florida. Nor does Applicant’s recent growth notes of Naples Bank. Retirement of the notes through acquisitions present a pattern of acquiring would improve Naples Bank’s capital position and major banks in the primary or secondary SMSA’s lend support for approval of the 'application to in the State. acquire Naples Bank. Considerations relating to Naples Bank and Collier Bank are both located the convenience and needs of the community to *A11 banking data are as of June 30, 1973 and represent bank holding company acquisitions approved by the Board 2The relevant banking market is approximated by Collier through December 31, 1973. County minus the town of Immokalee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN □ APRIL 1974 be served provide some support for approval of In my judgment, this case does not have the the applications since affiliation with Applicant anticompetitive aspects noted above. Though Bar­ should enable Naples Bank and Collier Bank to nett is one of Florida’s largest and most aggressive increase their services particularly in the fields of holding companies, it has in many instances ex­ consumer lending and provision of trust services. panded de novo or through the acquisition of The Board concludes that the proposed transac­ relatively small banks. In Barnett’s case, there has tions are in the public interest and should be certainly been no pattern of entering markets by approved. acquiring the largest banks. Another distinguishing On the basis of the record, the applications are factor in this case is the market itself. The Naples approved for the reasons summarized above. The market cannot be regarded as being a major Florida transactions shall not be made (a) before the thir­ market. The population of the town of Naples is tieth calendar day following the effective date of only 12,000, and the entire market (Collier this Order or (b) later than three months after the County) has only 43,000 people. Acquisitions in effective date of this Order unless such period is these markets do not have the important implica­ extended for good cause by the Board or by the tions for competition throughout the State that Federal Reserve Bank of Atlanta purpsuant to similar acquisitions in the State’s major markets delegated authority. have. By order of the Board of Governors, effective I would concur in the conclusion that the Naples March 4, 1974. market is not attractive for de novo entry. More­ over, the Naples market has no small banks that Voting for this action: Vice Chairman Mitchell and Gover­ could be regarded as attractive foothold acquisi­ nors Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns and Governor Daane. tions. Therefore, I believe that the elimination of (Signed) C hester B. Feldberg, potential competition as it relates to the Naples [seal] Secretary of the Board. market itself is not a significant issue in this case. FIRST INTERNATIONAL BANCSHARES, Concurring Statement of INC., DALLAS, TEXAS Governor Brimmer I agree that this application should be approved. Order Denying Acquisition of Bank Although the Naples Bank must be considered a relatively large bank in Florida and is the largest First International Bancshares, Inc., Dallas, bank in the Naples banking market, the factors Texas, a bank holding company within the mean­ that have led me to vote to deny several recent ing of the Bank Holding Company Act, has ap­ applications are not present in this case. In the plied for the Board’s approval under § 3(a)(3) of other applications, the holding companies had es­ the Act (12 U.S.C. 1842(a)(3)) to acquire all of tablished a consistent pattern of acquiring the the voting shares (less directors’ qualifying shares) largest banks in important banking markets of the successor by merger to The First National throughout a State1 Such acquisitions by the largest Bank of Waco, Waco, Texas (“Bank”). The bank holding companies, if unchecked, would increase into which Bank is to be merged has no signifi­ the already substantial disparity in size between cance except as a means to facilitate the acquisition a State’s largest organizations and the smaller of the voting shares of Bank. Accordingly, the holding companies. This is especially true in a proposed acquisition of shares of the successor State whose holding company movement is in its organization is treated herein as the proposed ac­ early stages. The outcome would be a situation quisition of the shares of Bank. in which a few large organizations would control Notice of the application, affording opportunity the largest banks in almost every important city for interested persons to submit comments and in the State. This type of banking structure would views, has been given in accordance with § 3(b) foster a high degree of interdependence among the of the Act. The time for filing comments and views leading firms, thereby stifling competition in has expired, and none has been timely received. banking markets throughout the State. 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)). Applicant is the largest banking organization and bank holding company in Texas and controls 'See, for example, Board order at 1974 Federal Reserve Bulletin 43. 15 banks with aggregate deposits of $2.8 billion, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 291 representing approximately 8 per cent of the total The Waco SMSA banking market is highly deposits in commercial banks in Texas.1 The ac­ concentrated with the two largest of 15 banking quisition of Bank (deposits of $142.3 million) organizations controlling 65 per cent of the mar­ would increase Applicant’s control of commercial ket’s total commercial bank deposits, and about bank deposits in Texas from 7.98 per cent to 8.39 56 per cent of the market’s total IPC deposits in per cent. accounts of $100,000 or less. Bank, the largest Bank is the largest bank located in the Waco of the 15 banks in the market, controls 34.6 per SMSA banking market. Applicant’s banking sub­ cent of the total commercial bank deposits in the sidiary closest to Bank is located 35 miles away market. The second largest bank controls 30.4 per in Temple. The Board concludes that no existing cent of market deposits, while the third largest competition would be eliminated between Bank controls only 7.3 per cent of such deposits. and any of Applicant’s subsidiary banks upon It is clear that Applicant possesses the resources consummation of this proposal. The respective for de novo entry into the Waco SMSA banking service areas of Bank’s data processing subsidiary market. There is evidence that suggests that suc­ and Applicant’s data processing subsidiary located cessful de novo entry could occur; both deposits in Dallas overlap. However, Applicant’s data pro­ per banking office and population per banking cessing subsidiary derives an insignificant amount office ratios are slightly above comparable State of its business from the service area of Bank’s averages. In addition, there appear to be smaller subsidiary, and Bank’s data processing subsidiary banks in the market available for acquisition. The derives no business from the service area of Ap­ Board concludes that acquisition of one of the plicant’s data processing subsidiary. The Board smaller banks in the area or de novo entry would concludes that no significant existing competition be clearly preferable from a competitive standpoint would be eliminated between the two data pro­ to the proposal herein. As the Board has previously cessing subsidiaries upon consummation of the noted, these secondary SMSA banking markets proposed acquisition. will become less concentrated only if the major The Board is concerned, however, about the holding companies enter de novo or via foothold effect this proposed acquisition would have on acquisitions, thereby creating additional competi­ potential competition with respect to the Waco tion in the markets. SMSA banking market and throughout the State. On the basis of the foregoing and all other facts In a recent Order denying Applicant’s application in the record, the Board concludes that this pro­ to acquire the largest bank in the Tyler SMSA posal, in light of Applicant’s previous acquisition banking market,2 the Board noted an increase in policy, would have significantly adverse effects on the concentration of the State’s commercial bank potential competition with respect to the Waco deposits held by the five largest banking organi­ SMSA banking market and throughout Texas. zations in Texas. The Board expressed concern Unless such anticompetitive effects are clearly over the present size disparity among the State’s outweighed in the public interest by the probable bank holding companies and the likelihood that effect of the transaction in meeting the conven­ this disparity may become greater in the future ience and needs of the communities to be served, by virtue of Applicant’s present acquisition policy, the application must be denied. which involves entry into a number of the secon­ The financial and managerial resources and fu­ dary SMSA banking markets3 in Texas through ture prospects of Applicant and its subsidiaries are acquisition of a leading bank in each market it satisfactory and consistent with approval. The fi­ enters. The Board stated that it would guard nancial resources of Bank are regarded as gener­ against the tendency toward undue concentration ally satisfactory in view of recent increases in not only in a local banking market but at the Bank’s deposits and capital and the improvement Statewide level as well when viewing the probable in Bank’s earnings since the discontinuation of a effect of an acquisition upon potential competition. large monthly management fee which Bank was paying to an affiliate. Applicant has stated its willingness to strengthen Bank’s capital by an ’All banking data are as of December 31, 1972, and reflect bank holding company formations and acquisitions approved by the Board through November 15, 1973. 2See Board’s Order dated December 28, 1973, denying the :lA secondary SMSA market in Texas is defined as an SMSA application of First International Bancshares, Inc., Dallas, market other than Texas’ four largest SMSA markets, i.e., Texas, to acquire Citizens First National Bank of Tyler, Tyler, other than the Dallas, Fort Worth, Houston, and San Antonio Texas. SMSA markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN □ APRIL 1974 injection of equity capital. The Board believes that the application of First International to enter the affiliation with Applicant is not the only means Tyler SMSA banking market through acquisition by which Bank’s financial resources could be fur­ of the Citizens First National Bank of Tyler on ther strengthened. The acquisition of Bank by a the basis that the acquisition would have adverse smaller bank holding company would not result effects upon potential competition in the Tyler in the same anticompetitive effects as the acquisi­ SMSA banking market and throughout Texas. I tion by Applicant and could effectuate similar agree with the majority that the present proposal assistance. Affiliation with Applicant would pro­ by First International would produce similar ad­ vide Bank with access to Applicant’s managerial verse effects upon potential competition. How­ resources and expertise, thereby lending weight ever, in my opinion, there are other public interest toward approval of the application. However, the considerations present in this proposal which were Board concludes that banking factors do not out­ lacking in the Tyler situation and which outweigh weigh the substantially anticompetitive effects the the anticompetitive effects of the instant proposal. proposal would have upon potential competition. Bank has experienced financial problems in the Although there is no evidence in the record that areas of earnings, assets and capital. Until re­ banking needs of the residents of the Waco area cently, Bank’s earnings have been hampered by are not presently being met, affiliation with Appli­ a large monthly management fee which was paid cant would enable Bank to expand its services to to an affiliate. While the majority notes that Bank’s include factoring, economic forecasts, petroleum earnings have improved since the discontinuation engineering consultation and industrial develop­ of the management fee, and that Bank’s capital ment advice. In addition, by providing Bank with and deposits have increased, I am of the opinion access to its financial and managerial resources and that affiliation with Applicant is desirable to further expertise, Applicant would strengthen Bank’s strengthen Bank’s financial condition and policies. ability to provide banking services to the Waco Applicant has stated its willingness to inject equity area. However, although considerations relating to capital into Bank; such an injection would the convenience and needs of the communities to strengthen the capital of Bank and increase its be served lend weight toward approval of the lending capacity. In addition, affiliation with Ap­ application, they do not clearly outweigh the sub­ plicant would guarantee a termination of the rela­ stantially adverse effects this proposed acquisition tionship between Bank and its holding company would have upon competition in the Waco SMSA parent, thereby insuring that the managment fees banking market and throughout Texas. It is the and earlier policies will not be reinstated. The Board’s judgment that consummation of the majority has suggested that the acquisition of Bank proposed acquisition would not be in the public by a smaller bank holding company could remedy interest and that the application should be denied. Bank’s financial problems without having the same On the basis of the record, the application is anticompetitive effect as the instant proposal. In denied for the reasons summarized above. my judgment, affiliation with a significantly By order of the Board of Governors, effective smaller holding company would not be effective. March 1, 1974. Thus, consummation of the proposed acquisi­ tion is needed for the strengthening effect upon Voting for this action: Chairman Burns and Governors the financial and managerial resources of Bank Brimmer, Bucher, and Holland. Voting against this action: Governors Mitchell, Daane, and Sheehan. which in turn will enable Bank to best serve the banking public of the Waco area. (Signed) C hester B. Feldberg, [seal] Secretary of the Board. Dissenting Statement of Governors Daane and Sheehan Dissenting Statement of We dissent from the majority’s action denying Governor Mitchell the application of First International Bancshares, I would approve this application of First Inter­ Inc., to acquire The First National Bank of Waco. national Bancshares, Inc., to enter the Waco The majority has emphasized the similarity of this SMSA banking market through acquisition of The application with the recent application by Interna­ First National Bank of Waco. In my view, such tional Bancshares to acquire the largest bank in anticompetitive effects as would result from the Tyler. We would have approved that application proposed acquisition are outweighed by the public and, for similar reasons, would approve the subject interest considerations involving banking factors. application. In our opinion, the present proposal I joined in the majority’s recent action denying would have no adverse effects upon competition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 293 in Waco or in Texas, and, in fact, would produce FROSTBANK CORPORATION, significant benefits to the banking public in Waco, SAN ANTONIO, TEXAS as well as in Texas and the Southwest. While the proposed acquisition would give Ap­ Order Approving Acquisition of Bank plicant control of the largest bank in the Waco FrostBank Corporation, San Antonio, Texas, a SMSA banking market, the second largest bank bank holding company within the meaning of the in this market is not significantly smaller. Thus, Bank Holding Company Act, has applied for the approval would not give Applicant a dominant Board’s approval under § 3(a)(3) of the Act (12 position in the market nor raise the barriers to entry U.S.C. 1842(a)(3)) to acquire 100 per cent of the for bank holding companies now outside this mar­ voting shares (less directors’ qualifying shares) of ket. Moreover, significant benefits would accrue Peoples National Bank, San Antonio, Texas to the banking public through approval of the (“Bank”), a proposed new bank. application. Bank’s lending capacity would be Notice of the application, affording opportunity increased by Applicant’s proposed injection of for interested persons to submit comments and equity capital into Bank. In addition, Bank would views, has been given in accordance with § 3(b) be able to draw upon Applicant’s managerial re­ of the Act. The time for filing comments and views sources and expertise in dealing with commercial has expired, and none has been timely received. problems peculiar to the area. We conclude that The Board has considered the application in light the improvement in Bank’s financial and manage­ of the factors set forth in § 3(c) of the Act (12 rial resources resulting from Bank’s affiliation with U.S.C. 1842(c)). Applicant would strengthen Bank’s ability to pro­ Applicant, the tenth largest banking organi­ vide banking services to the community; conven­ zation in Texas, presently controls four banks with ience and needs considerations therefore lend aggregate deposits of approximately $542 million, weight toward approval. representing 1.6 per cent of the total deposits in The majority has expressed concern that ap­ commercial banks in Texas.1 Since Bank is a proval of the application would have substantially proposed new bank, consummation of the adverse effects on competition in Texas. As we proposed acquisition would not immediately in­ indicated in our dissent from the majority’s action crease Applicant’s share of commercial bank de­ denying the Tyler application, we are not con­ posits in the State. vinced that the acquisition of banks in secondary Bank is to be located in northern San Antonio, SMSA’s by Applicant and its competitors will which is part of the San Antonio SMSA banking adversely affect competition in the State. None of market. Applicant presently has three subsidiary the five largest bank holding companies in Texas banks (one of which is a recently acquired de novo has acquired a dominant position in a secondary bank) in the relevant market and controls 24.6 per SMSA, nor have their acquisitions to date fore­ cent of the total commercial bank deposits in the closed the opportunity for other Statewide or re­ market. Since Bank is a proposed new bank, gional bank holding companies to develop in Applicant’s acquisition of Bank would not have Texas. Furthermore, we believe approval would any immediate effect on Applicant’s share of tend to foster the economic development of Texas, commercial bank deposits in the San Antonio as well as the Southwest region of the United SMSA banking market; nor would it have any States, by encouraging the development of local significant adverse effects on existing or potential institutions which are capable of serving the competition with respect to the San Antonio growing domestic and international interests of SMSA banking market. In reaching this conclu­ Texas corporations now being served by out-of- sion, the Board recognizes that continual de novo State banks. We believe that the continued growth expansion by the market’s largest banking organi­ of Texas banking organizations is necessary if they zation within a particular area of the market could are to effectively compete in Texas, the Southwest reduce the prospects for market deconcentration and the nation’s major money markets. by pre-empting viable sites for de novo entry by Finally, we concur as well with the portion of other banking organizations not already repre- The Dissenting Statement of Governor Mitchell which relates to banking factors. *A11 banking data are as of June 30, 1973, and reflect bank holding company acquisitions, approvals, and divestitures through January 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN □ APRIL 1974 sented in the market. However, with regard to this MERCANTILE BANCORPORATION, INC., case, the evidence indicates that the northern San ST. LOUIS, MISSOURI Antonio area is experiencing rapid and substantial growth and can support additional entries by other Order Approving Acquisition of Bank banking organizations. Accordingly, competitive Mercantile Bancorporation, Inc., St. Louis, considerations are consistent with approval of the Missouri, a bank holding company within the application. meaning of the Bank Holding Company Act, has The financial and managerial resources and fu­ applied for the Board’s approval under § 3(a)(3) ture prospects of Applicant and its subsidiary of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 banks are regarded as satisfactory. Bank, as a per cent of the voting shares (less directors’ quali­ proposed new bank, has no financial or operating fying shares) of Mercantile National Bank of Clay history; however, its prospects as a subsidiary of County (“Bank”), Kansas City, Missouri, a Applicant appear favorable. Considerations relat­ proposed new bank. ing to the banking factors are consistent with Notice of the application, affording opportunity approval of the application. The addition of a new for interested persons to submit comments and banking alternative in the rapidly growing San views, has been given in accordance with § 3(b) Antonio market will provide greater convenience of the Act. The time for filing comments and views to a segment of the population in this market. In has expired, and the Board has considered the addition, Bank’s affiliation with Applicant will application and all comments received, including enable it to provide its customers with access to those on behalf of North Hills Bank, First National Applicant’s specialized services, expertise, and Bank of Gladstone, North Kansas City State Bank, financial resources. Accordingly, considerations Bank of Riverside, and Metro North State Bank relating to convenience and needs of the commu­ (hereinafter collectively referred to as “Protes­ nity to be served lend some weight toward ap­ tants”) in light of the factors set forth in § 3(c) proval of the application. It is the Board’s judg­ of the Act (12 U.S.C. 1842(c)). ment that the proposed acquisition is in the public Applicant, the largest banking organization and interest and that the application should be ap­ bank holding company in Missouri, controls 15 proved . banks with aggregate deposits of approximately On the basis of the record, the application is $1.2 billion, which represent 9.2 per cent of total approved for the reasons summarized above. The commercial bank deposits in the State.1 Since transaction shall not be made (a) before the thir­ Bank is a proposed new bank, its acquisition tieth calendar day following the effective date of would neither eliminate any existing competition this Order or (b) later than three months after that nor immediately increase Applicant’s share of date, and (c) Peoples National Bank, San Antonio, commercial bank deposits. Texas, shall be opened for business not later than Bank will be located in a rapidly growing resi­ six months after the effective date of this Order. dential area in the northern part of the Kansas City Each of the periods described in (b) and (c) may banking market.2 It is anticipated that Bank will be extended for good cause by the Board, or by serve primarily southeast Platte County and south­ the Federal Reserve Bank of Dallas pursuant to west Clay County. Due in part to the proximity delegated authority. of the new Kansas City International Airport, it By order of the Board of Governors, effective is expected that Bank’s proposed service area will March 18, 1974. continue to experience a steady growth in popula­ tion with an attendant need for additional sources Voting for this action: Chairman Burns and Governors for banking services.3 While Applicant has three Mitchell, Brimmer, Sheehan, Bucher, Holland, and Wallich. (Signed) T heodore E. A llison , [seal] Assistant Secretary of the Board. ’All banking data are as of June 30, 1973, and reflect bank holding company formations and acquisitions approved through February 28, 1974. 2The Kansas City banking market is approximated by the Kansas City SMSA, excluding the southern half of Cass County. 3 Between 1960 and 1970 the population in Clay and Platte Counties increased at annual rates of 3.5 and 3.2 per cent, respectively, as compared with a Statewide annual growth rate of 0.8 per cent. The Kansas City SMSA, for the same period, grew at an annual rate of 1.4 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 295 banking subsidiaries in the market and is the fifth Missouri law. Furthermore, the facts of record largest banking organization therein, Applicant indicate that Bank will be a separate corporation, controls only 3.3 per cent of market deposits. with its own capital stock and a loan limit based Under such circumstances, the formation of a new on such capital stock; Bank will be managed by bank is viewed as an attempt to provide additional its own officers; Bank’s board of directors will be banking services to a growing area and, from the generally separate and independent from the facts of record, is not regarded as an attempt to boards of Applicant and of Applicant’s subsidi­ preempt a market. aries; and Bank will maintain its own separate Protestants contend generally that approval of books of account, issue its own distinctive checks, this application would have such adverse competi­ and use its own stationery. Applicant states that tive consequences as to merit denial of the appli­ no officers or employees of its other banking cation. In support of their contention, Protestants subsidiaries will perform services directly for cus­ claim the relevant market for determining the tomers of Bank, nor exercise any managerial competitive effects of the proposal is a funnel- supervision over the business of Bank. Applicant shaped area, described as an area with the central represents further that it will purchase Bank’s business district of Kansas City, Missouri, at the shares through use of its own capital resources. neck of the funnel and then widening to include Finally, Applicant states that money deposited at the southern parts of Platte and Clay Counties. Bank will not be credited to the account of a Even assuming Protestants’ determination of the depositor at any other banking subsidiary of Ap­ relevant market were appropriate, the Board’s plicant and, conversely, any money deposited at competitive analysis would not be altered, since any other banking subsidiary of Applicant will not Applicant is only the fourth largest banking orga­ be credited to the account of a depositor at Bank. nization in the described area with only 5.5 per The Board concludes, on the basis of the above cent of the area’s deposits. In a related matter, and other facts of record, that Applicant is a Protestants contend that an investigation is war­ “traditionally recognized bank holding company ranted into whether the larger bank holding com­ which, with its own capital, invests in or buys panies in Missouri have conspired to divide terri­ the stock of banks,” Whitney National Bank v. tories and markets and monopolize banking in Bank of New Orleans, 323 F.2d 290 (D.C. Cir. Missouri. However, in the Board’s view, Protes­ 1963), rev’d on other grounds, 379 U.S. 411 tants offer no substantial evidence to support such (1965) and that, upon consummation of the contentions, nor do the facts of record indicate proposed acquisition, a unitary operation will not that Applicant is acting in consort with any other exist between Bank and any of Applicant’s other bank holding company in Missouri. On the other banking subsidiaries in contravention of Mis­ hand, it appears that each of the State’s five largest souri’s branching law. bank holding companies is in active competition The financial condition, management, and pros­ with one another in the Kansas City banking pects of Applicant and its subsidiary banks are market and, even in the market delineated by regarded as satisfactory. As a new bank, Bank has Protestants, three of the State’s largest bank hold­ no operating financial history; however, its ing companies (including Applicant) either have proposed capitalization, management, and pros­ or propose to have subsidiary banks in competition pects appear satisfactory. The Board concludes with one another. On this basis, the Board is that the banking factors are consistent with ap­ unable to conclude that such banking organizations proval. Considerations relating to the convenience have conspired to lessen competition or to and needs of the community to be served lend monopolize banking in the relevant area. some weight toward approval since Bank will In the course of its review of this application provide an additional source of full banking ser­ the Board has also considered the comments from vices in a rapidly growing area. It is the Board’s Protestants to the effect that affiliation of Applicant judgment that consummation of the proposed ac­ with Bank would be in violation of the Missouri quisition would be in the public interest and that statute prohibiting branch banking. The Board the application should be approved. notes that the Comptroller of the Currency has On the basis of the record, the application is recommended approval of the pending application approved for the reasons summarized above. The and that his office has granted preliminary approval transaction shall not be made (a) before the thir­ for the charter of Bank, apparently concluding that tieth calendar day following the effective date of it would not be an illegal branch under applicable this Order or (b) later than three months after that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN □ APRIL 1974 date, and (c) Mercantile National Bank of Clay commercial bank deposits in that market. In that County, Kansas City, Missouri, shall be opened market Applicant is already by far the largest for business not later than six months after the banking organization with seven subsidiary banks effective date of this Order. Each of the periods controlling 22.87 per cent of the total market described in (b) and (c) may be extended for good deposits. Acquisition of Bank would increase the cause by the Board, or by the Federal Reserve concentration of banking resources in the relevant Bank of St. Louis pursuant to delegated authority. market since Applicant’s share of market depostis By order of the Board of Governors, effective would rise to 23.49 per cent, thereby increasing March 15, 1974. the size disparity between Applicant and the sec­ ond largest banking organization within the market Voting for this action: Chairman Burns and Governors which controls less than 9 per cent of total market Brimmer, Sheehan, and Holland. Absent and not voting: Governors Mitchell, Bucher, and Wallich. deposits. In addition to effects of the proposal on banking (Signed) Theodore E. A llison, [seal] Assistant Secretary of the Board. concentration in the Miami market, the Acquisi­ tion of Bank by Applicant would also eliminate existing competition and foreclose the develop­ SOUTHEAST BANKING CORPORATION, ment of significant potential competition in the MIAMI, FLORIDA relevant market. Bank is located in the southern extremity of Dade County, Florida, in the town Order Denying Acquisition of Bank of Homestead, approximately 30 miles from Southeast Banking Corporation, Miami, Flor­ downtown Miami. Of its seven subsidiaries in the ida, a bank holding company within the meaning market, Applicant’s closest subsidiary (Southeast of the Bank Holding Company Act, has applied Bank of Dadeland) is nineteen miles from Bank, for the Board’s approval under § 3(a)(3) of the and Bank competes directly in an area served by Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent Applicant’s lead bank.2 Applicant’s banking sub­ or more of the voting shares of The First National sidiaries derive approximately $1.0 million in de­ Bank of Homestead, Homestead, Florida posits and $3.5 million in loans from the Home­ (“Bank”). stead area; furthermore, Applicant’s mortgage Notice of the application, affording opportunity subsidiary (Southeast Mortgage Company) has for interested persons to submit comments and outstanding loans of approximately $0.8 million views, has been given in accordance with § 3(b) in Homestead. Thus, consummation of this trans­ of the Act. The time for filing comments and views action would adversely affect existing competition has expired, and none has been timely received. within the market, especially within the Home­ The Board has considered the application in light stead area, and, as noted above, would solidify of the factors set forth in § 3(c) of the Act (12 Applicant’s substantial position within the market. U.S.C. 1842(c)). With respect to potential competition, approval Applicant, the largest bank holding company in of the proposal would remove Bank as a possible Florida, controls 29 banks with aggregate deposits entry vehicle for a bank holding company not of approximately $1.8 billion, representing 8.6 per already represented in the area. Moreover, it ap­ cent of total deposits in commercial banks in pears that Applicant possesses adequate resources Florida.1 Acquisition of Bank would increase Ap­ for de novo expansion in the Greater Miami plicant’s share of State deposits by 0.16 percentage Banking Market. Per capita deposits, population point and enable Applicant to strengthen its posi­ per banking office and income per banking office tion as the State’s largest banking organization. are higher than the respective State averages, Bank ($32.0 million in deposits) ranks 47th out making the market most attractive for de novo of the 99 commercial banks located in the Greater entry. Taken as a separate entity, the Homestead Miami Banking Market (approximated by Dade area enjoys a rapid growth rate which would make County and the southern third of Broward County) it suitable for such entry. Instead of removing a and holds approximately 0.62 per cent of the banking competitor and eliminating direct compe­ 2First National Bank of Miami (the largest single bank within 'All banking data are as of June 30, 1973, and reflect bank the market) alone has aggregate deposits of approximately $1 holding company formations and acquisitions approved through billion, representing 19.27 per cent of the total deposits in January 31, 1974. commercial banks within the Greater Miami Banking Market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 297 tition, the alternative of de novo entry would have the meaning of the Bank Holding Company Act, the beneficial effect of increasing banking compe­ has applied for the Board’s approval under § tition in the Homestead area through the introduc­ 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ tion of a new banking alternative. quire all of the voting shares of the successor by On the basis of the foregoing and the facts of merger to Western Frederick Bank, Gore, Virginia record, the Board concludes that consummation (“Bank”). The bank into which Bank is to be of the proposal would have significant adverse merged has no significance except as a means to effects on competition in the relevant market. facilitate the acquisition of the voting shares of Accordingly, competitive considerations require Bank. Accordingly, the proposed acquisition of denial of this application unless the anticompeti­ shares of the successor organization is treated tive effects are clearly outweighed by benefits to herein as the proposed acquisition of the shares the public in meeting the convenience and needs of Bank. of the communities to be served. Notice of the application, affording opportunity The financial and managerial resources and fu­ for interested persons to submit comments and ture prospects of Applicant and its present subsid­ views, has been given in accordance with § 3(b) iary banks are regarded as satisfactory, particularly of the Act. The time for filing comments and views in view of Applicant’s commitments to inject has expired, and the Board has considered the equity capital into certain of its subsidiary banks. application and all comments received in light of The financial and managerial condition and future the factors set forth in § 3(c) of the Act (12 U.S.C. prospects of Bank are satisfactory. Therefore, the 1842(c)). financial and managerial resources and future Applicant controls two banks with aggregate prospects of Applicant and Bank are regarded as deposits of $108.7 million, representing approxi­ being consistent with approval of the application, mately 1 per cent of the total commercial bank but do not lend significant weight for approval. deposits in Virginia, and is the thirteenth largest Although there is no evidence in the record that banking organization in the State. (All banking the major banking needs of the community are not data are as of June 30, 1973, and reflect holding adequately being served, Applicant proposes to company formations and acquisitions approved expand the range of services presently offered by through February 28, 1974.) The acquisition of Bank. While such increased services might inure Bank (deposits of $3.8 million) would not signifi­ to the benefit of the public, such benefits are not cantly increase the concentration of banking re­ exclusive to Applicant’s proposal. The Board is sources in Virginia. thus unable to conclude that considerations relating Bank, which maintains its only office in the to convenience and needs clearly outweigh the town of Gore (population of 200), is the smallest adverse competitive considerations inherent in the of five banking organizations in the Winchester proposal. banking market1 and holds about 2 per cent of On the basis of all relevant facts in the record, the commercial bank deposits in that market. Bank the Board concludes that approval of the proposed is located on the extreme western edge of the acquisition is not in the public interest, and the market and, as a result, a major portion of its application is denied for the reasons summarized service area lies outside the market.2 Applicant’s above. smaller subsidiary bank (deposits of $37 million) By order of the Board of Governors, effective is located in the city of Winchester, 14 miles March 22, 1974. southeast of Gore, and is the third largest banking organization in the Winchester banking market Voting for this action: Chairman Burns and Governors with about 22 per cent of the total market deposits. Brimmer, Sheehan, Bucher, Holland, and Wallich. Absent and not voting: Governor Mitchell. Upon consummation of the proposal, Applicant’s (Signed) C hester B. Feldberg, rank in the market would remain unchanged, but [seal] Secretary of the Board. its market share would increase to 24 per cent, VALLEY OF VIRGINIA BANKSHARES, INC., HARRISONBURG, VIRGINIA ’The Winchester banking market is in the northwestern part of Virginia and consists of the city of Winchester, Frederick Order Approving Acquisition of Bank County, and Clarke County. Valley of Virginia Bankshares, Inc., Harrison­ 2Applicant estimates that approximately 45 per cent of Bank’s total deposits is derived from residents of West Vir­ burg, Virginia, a bank holding company within ginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN □ APRIL 1974 the largest banking organization in the market interest and that the application should be ap­ holds about 42 per cent of the deposits in the proved. market. While it appears that there is some slight On the basis of the record, the application is overlap in the service areas of Bank and Appli­ approved for the reasons summarized above. The cant’s subsidiary bank in Winchester, the rela­ transaction shall not be made (a) before the thir­ tively smaller dollar volume of deposits which tieth calendar day following the effective date of each obtains from the service area of the other this Order or (b) later than three months after the indicates that there is no significant existing com­ effective date of this Order, unless such period petition between them. Furthermore, on the basis is extended for good cause by the Board, or by of its geographic location in the market as well the Federal Reserve Bank of Richmond pursuant as its conservative 55-year financial history, it to delegated authority. appears that Bank has not been and is not now By order of the Board of Governors, effective an aggressive competitor to the other banking March 25, 1974. organizations in the market. Approval herein will immediately reduce the number of banking alter­ Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Sheehan, Bucher, Holland, and Wallich. natives from five to four, but it will not raise significant barriers to entry by other organizations (Signed) Chester B. Feldberg, not now in the market, and it appears likely that [seal] Secretary of the Board. additional competitors can be expected to enter the market in the near future. Accordingly, from the above facts and others of record, the Board con­ D. H. BALDWIN COMPANY, cludes that consummation of the proposed acqui­ CINCINNATI, OHIO sition would not eliminate significant existing Order Approving Acquisition of One Bank competition nor foreclose the development of sig­ and Denying Acquisition of Another Bank nificant potential competition in any relevant area. The financial condition and managerial re­ D. H. Baldwin Company, Cincinnati, Ohio, a sources of Applicant and its banking subsidiaries bank holding company within the meaning of the are regarded as satisfactory, particularly in view Bank Holding Company Act, has applied, in sep­ of Applicant’s commitment to inject additional arate applications, for the Board’s approval under equity capital into its two banking subsidiaries. § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to Bank’s financial condition is satisfactory. As noted acquire directly a majority of the voting shares above, Bank has not been an active competitor of Peoples Bank of Arapahoe County, Aurora, in the relevant market—for example, its current Colorado (“Peoples-Arapahoe”), and to acquire loan-to-deposit ratio is 32 per cent and 60 per cent indirectly a majority of the voting shares of of its total assets are comprised of U.S. Treasury Peoples Bank & Trust Company, Aurora, Colo­ securities. Affiliation with Applicant should rado (“Peoples-Aurora”), through the direct ac­ strengthen Bank’s management and should result quisition under § 3(a)(5) of the Act of all the voting in Bank becoming a more viable competitor in the shares in Midway Investment Corporation, market through the introduction of an expanded Aurora, Colorado (“Midway”). Midway is a one lending program, thereby benefiting the local resi­ bank holding company owning approximately 83 dents. Moreover, Applicant will be in a position per cent of the voting shares of Peoples-Aurora to assist Bank in establishing and expanding trust, and also operates a general insurance agency; auditing, and computer services. Also, Applicant Midway has agreed to dispose of all its assets intends to have Bank establish branches in areas except for shares of Peoples-Aurora prior to its of Frederick County not now served by its Win­ acquisition by Applicant. chester subsidiary and this should be of benefit Notice of the applications, affording opportunity to the residents of those areas of the County where for interested perosns to submit comments and there are presently no banking offices. Accord­ views, has been given in accordance with § 3(b) ingly, considerations relating to the banking fac­ of the Act. The time for filing comments and views tors and the convenience and needs of the com- has expired, and the Board has considered the munites to be served lend weight for approval of applications and all comments received in light of the application. It is the Board’s judgment that the factors set forth in § 3(c) of the Act (12 U.S.C. the proposed acquisition would be in the public 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 299 Applicant controls 10 banks with combined de­ of Peoples-Arapahoe and 100 per cent of a oneposits of approximately $530 million, representing bank holding company (Midway) which owns ap­ 8.7 per cent of the total commercial bank deposits proximately 83 per cent of the voting shares of in Colorado, and ranks as the fourth largest bank­ Peoples-Aurora; also, both banks have three ing organization in the State. (Except as otherwise directors in common. Because of this affiliate indicated, all banking data are as of June 30, 1973 relationship, subject banks do not presently com­ and reflect formations and acquisitions approved pete with each other. by the Board through December 31, 1973.) The Central Bank’s primary service area overlaps to acquisition of Peoples-Arapahoe (deposits of $7.6 a significant degree with that of subject banks and million) and Peoples-Aurora (deposits of $34.3 it appears that significant competition exists be­ million) (“Subject Banks”) would increase Ap­ tween them for area deposits and loans. Applicant plicant’s total deposits to approximately $572 mil­ estimates that $31.2 million of total IPC deposits lion, or 9.4 per cent of the total commercial bank and $26.3 million in IPC deposits of less than deposits in the State, and would not significantly $100,000 were derived by Central Bank from the increase the concentration of banking resources in primary service area of subject banks. This repre­ Colorado. sents 15.9 per cent and 13.3 per cent, respectively, Applicant, through its two subsidiary banks in of all IPC deposits ($196 million) held by com­ the Denver banking market,1 Central Bank and mercial banks located in subject banks’ service Trust Company, Denver (“Central Bank”) (de­ area. By comparison, Central Bank’s total IPC posits of $344.1 million), and North Denver Bank, deposits ($31.2 million) are almost equal to the Denver (deposits of $27 million), is the fourth combined IPC deposits held by subject banks ($32 largest banking organization in the market with million). In addition, Applicant estimates that aggregate deposits of $371.1 million, representing $35.3 million of Central Bank’s total loans are 10.2 per cent of the total market deposits. Central derived from the service area of subject banks, Bank and North Denver Bank, combined, control representing 30 per cent of the total loans held 10.3 per cent of IPC deposits of $100,000 or less by all commercial banks in this service area. As as of December 1972. Applicant’s acquisition of the banks proposed to be acquired hold nearly 60 subject banks would serve to further concentrate per cent of their loans in commercial and non-resthe Denver market by increasing Applicant’s share idential real estate, it appears that significant direct of total market deposits from 10.2 per cent to 11.3 competition exists between Applicant and subject per cent and increase its share of IPC deposits of banks in acquiring such loans in this service area. less than $100,000 from 10.3 per cent to 11.6 per The elimination of this existing competition con­ cent of area deposits. stitutes an adverse factor weighing against ap­ Subject banks are both located in Aurora, ap­ proval of subject applications. proximately six miles from the central business Furthermore, the Aurora service area appears district of Denver wherein Central .Bank is situ­ to be one of the most economically dynamic areas ated. Peoples-Aurora is the second largest of fif­ in Denver. The physical development and eco­ teen banks in its primary service area,2 controlling nomic conditions in the area imply strong overall approximately 15 per cent of area deposits; growth. For example, the 1970 population of Peoples-Arapahoe is the twelfth largest with 3.3 Aurora was 75,000, an increase of 54 per cent per cent of those deposits. Together, they represent over the 1960 figure. Moreover, present population the largest independent group in the local area. of the area is estimated at 107,000, representing Subject banks have an affiliate relationship in that an additional increase of 43 per cent. It appears both are commonly owned by an individual who likely that Applicant could expand into this area controls more than 75 per cent of the voting shares in the reasonably near future absent the subject acquisitions. Given these factors and others of record, the Board concludes that consummation 'The Denver banking market is approximated by Denver, Adams, Arapahoe and Jefferson Counties and a portion of of the proposed acquisitions would eliminate the Boulder County including the city of Broomfield. likelihood of Applicant’s de novo expansion into 2The primary service area for Peoples-Aurora includes the area and constitute an adverse effect on in­ Aurora and a certain portion westerly into Denver County. The primary service area of Peoples-Arapahoe lies entirely creased future competition. within the service area of Peoples-Aurora except it does not Applicant’s nonbank financial subsidiary, Em­ include the area northwest of Peoples-Aurora. However, for pire Savings Building and Loan Association all practical purposes, the primary service areas of subject banks are considered identical. (“Empire”), Denver, Colorado (assets of $305.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN □ APRIL 1974 million as of December 31, 1972), has nine branch Peoples-Arapahoe would become an effective offices in Denver, two of which are located on competitor in its service area by utilizing the the boundary of subject bank service area. The resources of Applicant. Also, affiliation with Ap­ record indicates that no significant degree of com­ plicant will enable Peoples-Arapahoe to draw upon petition exists between Empire and subject banks Applicant’s managerial talent and thus strengthen in the origination of mortgage loans, and similarly, its own management which appears at this time little significant competition presently exists for to lack sufficient depth. In addition, Applicant will time and savings deposits. Applicant must divest assist Peoples-Arapahoe in its internal operations its interest in Empire by December 31, 1980 unless and in meeting both its present and future building the Board approves retention of such interest prior needs. Accordingly, it is the Board’s judgment that to that date. Thus, it appears unlikely that any with respect to the application to acquire Peoplessignificant future competition between them will Arapahoe, considerations relating to the conven­ be eliminated through consummation herein. ience and needs of the community to be served As enumerated above, it is the Board’s judg­ outweigh any anticompetitive effects of this ac­ ment that Applicant’s acquisition of subject banks quisition and that this proposed transaction would would have an adverse effect on competition and be in the public interest and should be approved. that these competitive considerations require de­ On the basis of the record, the application to nial of the applications unless the anticompetitive acquire Peoples-Aurora is denied for the reasons effects of the proposals are clearly outweighed in summarized above. the public interest by the probable effect of the On the basis of the record, the application to transactions in meeting the convenience and needs acquire Peoples-Arapahoe is approved for the rea­ of the community to be served. sons summarized above. The transaction shall not The financial condition of Applicant, its subsid­ be made (a) before the thirtieth calendar day fol­ iaries and subject banks is satisfactory in view of lowing the effective date of this Order or (b) later Applicant’s commitment to inject additional equity than three months after the effective date of this capital into certain of its banks including Peoples- Order, unless such period is extended for good Arapahoe. Managerial considerations relating to cause by the Board, or by the Federal Reserve Applicant and its subsidiaries are satisfactory and Bank of Kansas City pursuant to delegated au­ future prospects for all are favorable. There is no thority. evidence indicating that the major needs of the By order of the Board of Governors, effective Aurora service area are not being adequately March 29, 1974. served by existing organizations. However, al­ though financial and managerial considerations and Denial of acquisition of Peoples Bank & Trust Company, Aurora, Colorado. Voting for this action: Chairman Burns and those considerations relating to the convenience Governors Mitchell, Brimmer, Sheehan, Bucher, and Holland. and needs of the community to be served are Absent and not voting: Governor Wallich. Approval of acquisition of Peoples Bank of Arapahoe consistent with approval, they do not outweigh the County, Aurora, Colorado. Voting for this action: Chairman adverse competitive effects of the proposal as it Burns and Governors Mitchell, Sheehan, Bucher, and Holland. relates to the acquisition of both subject banks. Voting against this action: Governor Brimmer. Absent and not voting: Governor Wallich. It is the Board’s judgment, therefore, that con­ summation of the acquisition of both banks would (Signed) Chester B. Feldberg, not be in the public interest. [seal] Secretary of the Board. On the other hand, the Board does not regard Applicant’s application to acquire Peoples-Arapa­ hoe in a similar light. Based on data heretofore Dissenting Statement of furnished and other facts of record, approval of Governor Brimmer Applicant’s application to acquire Peoples-Arapa­ hoe and denial of Applicant’s application to ac­ I would deny the application by D. H. Baldwin quire Peoples-Aurora would have a pro-competi­ Company to acquire Peoples Bank of Arapahoe tive effect in the service area. The existing affilia­ County, Aurora, Colorado (“Peoples-Arapation between subject banks (the largest inde­ hoe”). My views with respect to the expansion pendent group in the area) would be terminated; of D. H. Baldwin Company as a multibank holding Peoples-Aurora would remain as a strong compet­ company while it remains a manufacturing con­ itor; and it appears reasonable to anticipate that glomerate has been set forth in my dissenting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 301 statements to two recent Board Orders1 and a the State.1 Century Financial is the sixteenth larg­ Board Determination.2 I have held consistently, est banking organization in the State and controls and it bears repeating, that the opportunities for one bank with deposits of about $240 million, holding companies to engage in nonbanking ac­ representing 0.9 per cent of deposits in commercial tivities authorized by Congress through the 1970 banks in the State. Upon consummation of the Amendments to the Bank Holding Company Act proposed merger, Old Kent would control 3.9 per do not give Applicant the privilege to expand as cent of total commercial bank deposits in the State a multibank holding company while retaining siz­ and would rank as the fifth largest banking organi­ able nonbanking interests. I continue to believe zation in Michigan. that the history of the Act reflects the intention Old Kent’s lead bank, Old Kent Bank and Trust of Congress to keep the business of banking sepa­ Company (deposits of $647.3 million) is the larg­ rate from other commercial endeavors and, ac­ est banking organization in the Grand Rapids cordingly, Applicant should be required to make banking market, with 49.3 per cent of total market a decision whether it wants to be a bank holding deposits, and is more than twice the size of the company or whether it would prefer to be in the second largest banking organization which con­ manufacturing business. Inasmuch as approval of trols 22.6 per cent of deposits in that market.2 In the Peoples-Arapahoe application permits the fur­ the past year Old Kent has shown an interest in ther expansion of Applicant as a multibank holding expanding into other banking markets in the State. company contrary to Congressional intent, I would In August, Old Kent consummated a proposed deny this application. acquisition of a bank in Cadillac, Michigan,3 and has recently consummated significant acquisitions OLD KENT FINANCIAL CORPORATION, in the Holland and Fremont banking markets as GRAND RAPIDS, MICHIGAN well.4 It seems likely that this organization, one of the major bank holding companies in Michigan, Order Denying Merger of Bank Holding will continue an aggressive policy of expansion Companies by reason of its capability and incentive to enter Old Kent Financial Corporation, Grand Rapids, those banking markets in Michigan which appear Michigan (“Old Kent”), a bank holding company most attractive. within the meaning of the Bank Holding Company Century Financial’s sole subsidiary bank, the Act, has applied for the Board’s approval under Second National Bank of Saginaw (“Bank”),5 is § 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to the largest of six banking organizations in the merge with Century Financial Corporation of Saginaw banking market, with 49.9 per cent of Michigan, Saginaw, Michigan (“Century Finan­ total market deposits. Bank is nearly twice as large cial”), under the charter and title of Old Kent. as the next largest bank in its market. In terms Notice of the application, affording opportunity of IPC demand deposits in accounts under $20,000 for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views ’State banking data are as of June 30, 1973, and reflect has expired, and none has been timely received. holding company formations and acquisitions approved through The Board has considered the application in light December 31, 1973. 2 Banking data for the Grand Rapids and Saginaw banking of the factors set forth in § 3(c) of the Act (12 markets are as of June 30, 1972. U.S.C. 1842(c)). ;,See Board’s Order dated June 27, 1973, approving the Old Kent controls four banks with aggregate application of Old Kent Financial Corporation, Grand Rapids, Michigan, to acquire the First National Bank of Cadillac, deposits of $774.7 million, representing 3 per cent Cadillac, Michigan. of deposits held by commercial banks in Michigan, 4See Board’s Order dated October 12, 1973, approving the application of Old Kent Financial Corporation, Grand Rapids, and is the sixth largest banking organization in Michigan, to acquire the successor by merger to The Peoples State Bank of Holland, Holland, Michigan. An application by Old Kent Financial Corporation, Grand Rapids, Michigan, to 'Board Order of December 5, 1973 wherein Applicant was acquire Fremont Bank and Trust, Fremont, Michigan, was permitted to acquire four banks in Colorado (1974 Federal approved by the Reserve Bank of Chicago on September 12, Reserve B ulletin 40); and Board Order of September 28, 1973, acting under delegated authority. 1973 wherein Applicant was permitted to acquire five banks 5Century Financial became a bank holding company on in Colorado (1973 Federal Reserve Bulletin 752). January 22, 1973, through the acquisition of Bank. Century 2 Board Determination of June 14, 1973 wherein all of Financial has not engaged in any activities other than the Applicant’s activities relating to the musical instrument busi­ operation and control of Bank; therefore, the significance of ness were accorded indefinite grandfather privileges (1973 this proposed merger is the acquisition of all the voting shares Federal Reserve B ulletin 536). (less directors’ qualifying shares) of Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 FEDERAL RESERVE BULLETIN □ APRIL 1974 Bank controls 54.1 per cent of market deposits; have a substantially adverse effect on potential and in terms of IPC deposits in accounts over competition in the Saginaw banking market. $100,000 Bank controls 61.4 per cent of the mar­ The Board is also concerned with the effect that ket total (see Table following). The market is consummation of this proposed merger would have highly concentrated, with the two largest banking in eliminating Century Financial as a large inde­ organizations controlling 78.4 per cent of market pendent which, whenever its management be­ deposits. The second largest banking organization comes so inclined, would seem capable of an­ in the market is currently limited to one office choring a regional holding company system. As and is prohibited from further branching,6 and the previously discussed, Old Kent is presently the remaining four banking organizations control de­ largest banking organization in the Grand Rapids posits ranging from 2.8 to 8.7 per cent of total banking market and has control of a significant market deposits. Acquisition of Bank by Old Kent share of deposits in two other banking markets through the proposed merger would tend to solid­ also located in western Michigan. Thus, in addi­ ify Bank’s leading position in the Saginaw banking tion to eliminating Old Kent as a potential entrant market. On the other hand, there is a probability into the Saginaw banking market, consummation that a trend towards deconcentration would result of the proposed merger would present the addi­ should Old Kent enter the Saginaw area either de tional adverse factor of eliminating Century Fi­ novo or through the acquisition of a foothold bank. nancial as a possible entrant into those areas in In the Board’s judgment, a trend towards decon­ which Old Kent presently competes, or into those centration would be in the public interest by offer­ areas in which Old Kent is likely to expand in ing the promise of more vigorous competition the future. Finally, such a market extension within the Saginaw market. merger, as proposed here, will knit together bank­ Applicant’s recent record of expansion indicates ing organizations that are each dominant in their that it may be viewed as one of the most likely own local markets and further solidify each firm’s entrants into the Saginaw banking market, one of position in a major market in Michigan. the six major banking markets in Michigan.7 This On the basis of the foregoing and all other facts market is considered attractive for new entry rela­ in the record, the Board concludes that consum­ tive to the other major markets. While the popula­ mation of Applicant’s proposal would have sub­ tion of the City of Saginaw has decreased, the stantially adverse effects on competition, and population of the market area increased approxi­ unless such anticompetitive effects are clearly out­ mately 14 per cent for the period 1960-70, relative weighed in the public interest by the probable to a State increase of 13 per cent. The deposits effect of the transaction in meeting the conven­ per banking office ratio is $17.5 million relative ience and needs of the communities to be served, to $15.3 million for the State; and the population the application should be denied. per banking office ratio is 7,480 relative to the The financial condition and managerial re­ ratio of 5,340 for the State. Furthermore, there sources and future prospects of Old Kent and its would appear to be a number of smaller banks subsidiary banks appear satisfactory. The financial in the market that may be available for acquisition. condition and managerial resources and future On the basis of the facts of record, including the prospects of Century Financial and Bank are also facts that the Saginaw banking market is concen­ considered satisfactory. Thus, banking factors are trated, that Applicant is a likely potential entrant consistent with approval but provide no significant into the market, and that opportunities exist for support for such action. de novo or foothold entry, the Board concludes Old Kent proposes to assist Bank in agricultural that consummation of the proposed merger would lending, minority lending, mortgage lending, in­ ternational services, computer services and trust services. While these improved services lend some weight toward approval, most of these innovations <5The Board approved the acquisition of Valley National may be expected to be made by Bank in any event, Bank, Saginaw, Michigan, by Michigan National Corporation, Bloomfield Hills, Michigan, on October 18, 1973. This acqui­ and the Board does not consider these convenience sition would permit Michigan National to expand through de and needs considerations sufficient to outweigh the novo branching. However, consummation of the acquisition is enjoined pending the outcome of a suit filed by the Depart­ anticompetitive effects of the proposed merger. It ment of Justice. is the Board’s judgment that consummation of the 7The six major banking markets in Michigan include the proposed acquisition would not be in the public Grand Rapids, Saginaw, Detroit, Flint, Kalamazoo, and the Lansing banking markets. interest and that the application should be denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 303 On the basis of the record, the application is Voting for this action: Chairman Burns and Governors denied for the reasons summarized above. Brimmer, Bucher, and Holland. Voting against this action: Governors Mitchell and Sheehan. Absent and not voting: By order of the Board of Governors, effective Governor Daane. March 5, 1974. (Signed) C hester B. Feldberg, [seal] Secretary of the Board. SAGINAW BANKING MARKET1 k in IPC Demand Deposits Total IPC Deposits arket Banking Organization Total Deposits $20,000 or less $100,000 or over Amount Per cent Amount Per cent Amount Per cern ($millions) ($ millions) ($ millions) 1 Century Financial Corporation, Sag­ inaw 218.5 49.9 28.1 54.1 30.4 61.4 2 Michigan National Corp.,2 Lansing 124.5 28.5 10.4 20.0 16.4 33.1 3 Frankenmuth State Bank, Frankenmuth 37.9 8.7 4.5 8.7 2.2 4.4 4 Valley National Bank, Saginaw 30.4 6.9 4.2 8.1 0.2 0.4 5 First State Bank, Saginaw 14.2 3.2 2.9 5.6 0.3 0.6 6 Community State Bank, St. Charles 12.1 2.8 1.8 3.5 0.0 0.0 TOTAL 437.6 100.0 51.9 100.0 49.5 100.0 'Summary of Deposits June 30, 1972. 2Totai organization deposits $2.2 billion. Dissenting Statement of ness to community needs, it calls for a more Governor Mitchell positive solution than continuation of the status This case should have been, in my opinion, quo. The decision is important not only for cus­ another occasion for an expression of Board judg­ tomers of Saginaw banks but also for the implica­ ment regarding Michigan banking structure com­ tion it has involving customers in other similarly parable with the pro-competitive posture taken in situated Michigan SMSA’s. two earlier cases. The first defined the status of Neither approval nor denial is an optimal solu­ the Michigan National Corporation in several tion to the problem—that solution would involve, Michigan markets (See the Board’s Order approv­ in my opinion, approval conditioned on a spin-off ing the application of Michigan National Corpora­ of some of Second National’s facilities. Absent tion, Lansing, Michigan, to become a bank hold­ that choice, I believe community needs and bank­ ing company through acquisition of the following ing structure developments would be better served five Michigan banks: Michigan National Bank, by approval than denial. My reasons have to do Lansing; Michigan Bank, N.A., Detroit; Livonia with the characteristics of Michigan’s banking National Bank, Livonia; Troy National Bank, structure as well as those of the Applicant and Troy; and Oakland National Bank, Southfield. 58 Bank. Federal Reserve B ulletin 804), and the second Michigan is one of our major industrial States, released restraints against its competitive effec­ ranking fifth in terms of value added by manufac­ tiveness in certain of those markets. (See the ture. As a banking State it ranks seventh with 4.4 Board’s Order approving the application of Mich­ per cent of total U.S. deposits—almost exactly its igan National Corporation, Bloomfield Hills, share of U.S. population. There are 317 (as of Michigan, to acquire First National Bank of East September 1973) banking organizations serving Lansing, East Lansing; Central Bank, National the State of Michigan. About half of them are Association, Grand Rapids; Valley National Bank located in 11 SMSA’s. Many of those outside of of Saginaw, Saginaw; and First National Bank of these areas are community banks in towns where Wyoming, Wyoming; all located in Michigan. 59 the deposit potential will not support more than Federal Reserve B ulletin 819.) one bank. Thus, the problem of banking structure While the instant case is an outstanding example in Michigan is that of balancing considerations of of the judgmental difficulties involved in weighing competition, concentration and operating compe­ the influences of undue concentration against in­ tence in these 11 SMSA’s. creased competitive effectiveness and responsive­ Michigan has been a limited branching State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN □ APRIL 1974 since 1945; the present law permits offices to be There is, of course, always the danger that such opened within 25 miles of the home office. Just an expansion can reduce competition because it within the past three years following the clarifi­ may increase concentration. The weighing of the cation of the legal status of holding companies pros and cons in specific cases is therefore a under Michigan statutes, several newly formed difficult judgment. bank holding companies have acquired or are in The portion of Michigan primarily affected by the process of acquiring other banks or organizing the bank holding company movement is that con­ de novo banks in promising markets (see Attach­ tained in 11 abutting metropolitan areas stretching ment A). Thus, Michigan several years after the out from Detroit west to Muskegon and north to enactment of the bank holding company legislation Bay City. It is significant from the standpoint of is now following the line of development in bank­ undue concentration and competitiveness that ing structure which has already taken place or is these SMSA’s abut and are closely linked by in process in States like New York, New Jersey, convenient transport and media, particularly tele­ Virginia, Alabama, Florida, Missouri, Texas, vision coverage. In seven instances the distances Tennessee, Colorado, and several other States in from central cities in one SMSA to the central the East, South, and Midwest. city in another is 36 miles or less, in five cases The veto power given by Congress to the Board between 36 and 50, and in three cases between over the use of the holding company device to 50 and 67 miles.1 Thus, these markets are further corporate interests by merger or expansion closely-linked—not isolated. As a result, the identifies the considerations the Board should take availability of non-local alternatives has greater into account in its approval or disapproval of a practicality, and competition in pricing and service particular application. These considerations are standards can spread with minimal friction. public interest goals which are presumed to be The structure in the Detroit SMSA is a special attained through the promotion of a competitive case and would not likely be affected by any structure and the avoidance of undue concentra­ resolution of the instant case. But the other 10 tion. But the public interest also requires a judg­ SMSA’s are sufficiently similar in banking struc­ ment of the quality of bank managements and ture to be influenced by policy implications of this ownerships and their capacity and will to compete decision. by enriching services to the public and reducing By the standards of practice prevailing in the the cost of such services. Since considerations of nation several Michigan banking markets are too scale affect efficiency of banking operations, and heavily concentrated. The accompanying table letting bank failures weed out incompetents is a (Attachment B) shows market shares as conven­ whimsical alternative, it follows that every pro­ tionally calculated for the five largest banks in each posal for acquisition must entail a judgment, im­ Michigan SMSA. It needs to be recognized that plied or expressed, as to the ability of specific these shares are based on the assumption that all competitors in a given market to respond to com­ deposits are indigenous to the SMSA, an assump­ munity needs as well as to considerations of safety tion that does not apply to the greater part of and soundness. interbank deposits nor to many large-denomination I believe the evaluation of these considerations CD’s nor to some part of time deposits of State in the instant case is far more urgent than my and local governments. However, the smaller the colleagues appear to believe. And this judgment SMSA and the smaller the bank, the less important is reinforced by the obvious fact that banking these qualifications become. organizations in Michigan have just recently em­ Bearing in mind these limitations, the concen­ barked upon a program of expansion via acquisi­ tration ratios for Michigan banks are relatively tion and de novo entry that will significantly mod­ high. For the lead bank the modal value is about ify the banking structure in the industrial portion 40 per cent; for two banks about 70; and for three of the State. This movement holds the promise about 85 per cent. As a crude comparative stand­ of providing stronger banks, and banks more ard, the modal value for lead banks in one-hundred responsive to community needs, both because of SMSA’s in other industrial States in the Midwest, the efficiencies that can arise out of holding com­ East and South is about 30 per cent. pany operations, due to larger scale, and the ability On the basis of such evidence, I do not take of effective competitors, such as Old Kent, to issue with the view of the majority that there is absorb and infuse a more competitive spirit in less undue concentration in Saginaw—in fact, I would effective institutions. extend that judgment to certain other Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 305 SMSA’s. Nonetheless I am concerned with the forces in both areas as well as to Midland. These fragility and subjective character of many judg­ locational considerations dilute the validity of any ments on undue concentration. conclusions drawn on the assumption that the Economic analysis, so far as I am aware, has banking market is completely confined to the Sa­ yet to demonstrate what level of concentration in ginaw SMSA. a given banking market indicates optimum, maxi­ Secondly, I believe there is a difference in the mum or minimum levels so far as the public quality of banking services that Old Kent would interest is concerned. Commonly, judgment-con­ offer and those that would be available from Sec­ ditioning adjectives based on intuitive judgments ond National. I base that judgment on the recent are used to excite various degrees of public interest operating records of the two banks and the fact approval or disapproval. More objective ap­ that the record shows that the Second National proaches are possible. For example, I believe it owners sought the sale of their property to Old could be readily demonstrated that splintering a Kent. Moreover, the premium involved in this case market of $200-300 million of deposits into a is modest, reflecting, among other factors, possi­ dozen equal shares would deprive the community bly the owners’ appraisal of growth prospects in concerned of certain types of banking services that Saginaw, the problems involved in extending would be available if the largest bank had $50-100 operations into Midland and Bay City and the real million of deposits simply because of the dif­ possibility of more effective competition from ference in service and operating capability between Michigan National. small and medium size banks. The record before the Board does not, of course, Concentration ratios may also be analyzed in disclose the views of sellers or buyers except as terms of comparative practice, by State and size it can be inferred from the facts of the transaction. of SMSA; this approach is hopeful, but clearly To me, these inferences all lead to the conclusion affected by historical attitudes toward branching that the competitor who is a buyer is ordinarily constraints. Where banks have enjoyed home of­ better prepared to innovate and extend services fice protection and State laws with respect to than the competitor who is a seller. The users of expanding outside a given area (city or county), banking services in Saginaw would gain by ap­ certain banks have tended to become overly domi­ proval of the proposal. nant at some point in their history simply because The majority asserts that other possibilities entrepreneurs were working off their corporate exist. There are other possible buyers for Second drive. This seems to have been the case in Michi­ National but I see no advantage to substituting any gan where branching limitations have, in fact, of the four multi-billion dollar banks in Detroit fostered the growth of dominant institutions. nor bank holding companies in near-by Flint which I differ with the majority’s choice of alternatives are about the same size as Old Kent. In fact, given for two reasons. As earlier stated, Saginaw is now the standards the majority has applied to Old Kent, an isolated area. It is close to Flint and very close the realistic alternatives for a take-over of Second to Bay City and thus is exposed to competitive National probably do not exist. 'Distances between central cities of abutting SMSA’s in Michigan: Detroit................... ..........to Flint 67 miles to Ann Arbor 36 Flint..................................to “ 47 to Saginaw 32 to Bay City 14 miles to Lansing 45 “ Lansing................. ..........to Ann Arbor 60 “ to Jackson 39 to Jackson 34 to Battle Cr. 30 to Battle Cr. 43 to Kalamazoo 30 Gr. Rapids....................to Kalamazoo 50 to Lansing 65 to Muskegon 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN □ APRIL 1974 The following table indicates that of the nine multi-bank holding companies operating in the State’s 11 SMSA’s all except two have confined their operations to the areas in which their lead banks are located. Only one of the remaining seven (the Applicant) has an application or has announced plans to expand into another SMSA. Thus, Michigan National, following a long-standing tradition, and Northern States Bancorporation are the only holding companies to establish beachheads or substantial market positions in more than one SMSA. HOLDING COMPANIES IN MICHIGAN THAT ARE OR HAVE PROPOSED TO BECOME MULTI-BANK HOLDING COMPANIES December 73 June 73 Number of Banking Organization Location Total Deposits Offices ($ millions) National Detroit Corporation Detroit 4,569 107 Banking Subsidiaries National Bank of Detroit Detroit 4,569 107 Applications Filed National Bank of Dearborn (de novo) Dearborn 0 0 Announced National Bank of Troy (de novo) Troy 0 1 National Bank of Port Huron (de novo) Port Huron 0 1 First National Bank of Howell Howell 22 4 Grand Valley National Bank Grandville 17 1 Michigan National Corporation Bloomfield Hills 2,528 113 Banking Subsidiaries Michigan National Bank Lansing 1,294 31 Michigan National of Detroit Detroit 823 33 Michigan National-Oakland Southfield 104 8 Michigan National Bank-West Metro Lironia 97 8 Michigan National-North Metro Troy 87 9 Valley National Bank1 Saginaw 46 6 Central Bank NA1 Grand Rapids 42 9 First National Bank of Wyoming’ Wyoming 19 4 First National Bank of East Lansing1 East Lansing 16 3 Greenfield National Bank (de novo) Dearborn 0 1 Michigan National Bank-Mid-Michigan (de novo) Flint 0 1 Western Michigan National Bank (de novo) Kalamazoo 0 0 Applications Filed None Announced National Bank of Traverse City (de novo) Traverse City 0 0 Detroit Bank Corporation Detroit 2,221 84 Banking Subsidiaries Detroit Bank & Trust Company Detroit 2,221 84 Application Filed None Announced Detroit Bank—Livonia (de novo) Livonia 0 0 Detroit Bank—Troy (de novo) Troy 0 0 Manufacturer’s National Corporation Detroit 2,194 73 Banking Subsidiaries Manufacturer’s National Bank Detroit 2,194 72 Manufacturer’s Bank of Livonia (de novo) Livonia 0 1 Applications Filed Saline Savings Bank Saline 13 2 Announced None Northern States Bancorporation Detroit 839 50 Banking Subsidiaries City National Bank Detroit 607 31 Bank of Lansing Lansing 151 7 Union National Bank & Trust Marquette 35 4 First National Bank of Lake City Lake City 20 4 National Bank of Rochester Rochester 15 2 First Citizens Bank Troy 11 2 Grand Rapids Bank, NA (de novo) Grand Rapids 0 0 Applications Filed First National Bank of Plymouth (de novo) Plymouth ‘Approved by the Board, but challenged by Department of Justice. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 307 HOLDING COMPANIES IN MICHIGAN THAT ARE OR HAVE PROPOSED TO BECOME MULTI-BANK HOLDING COMPANIES—CONT'D December 73 June 73 Number of Banking Organization Location Total Deposits Offices ($ millions) Announced None Old Kent Financial Corporation Grand Rapids 775 55 Banking Subsidiaries Old Kent Bank & Trust Company Grand Rapids 688 46 Peoples State Bank Holland 55 7 First Bank of Cadillac Cadillac 17 1 Fremont Bank & Trust Company Fremont 15 1 Applications Filed Second National Bank of Saginaw Saginaw 240 16 Announced Old Kent Bank of S. Joseph (de novo) St. Joseph 0 0 Old Kent Bank of Kentwood (de novo) Kentwood 0 0 Old Kent Bank of Grandville (de novo) Grandville 0 0 Old Kent Bank of Wyoming (de novo) Wyoming 0 0 First National Financial Corporation Kalamazoo 424 43 Banking Subsidiaries First National Bank & Trust of Michigan Kalamazoo 315 29 First National Bank of Holland Holland 39 2 Merchants & Miners Bank Calumet 20 3 Cheybogan Bank Cheybogan 19 3 Commercial Bank of Menominee Menominee 13 2 Deerfield State Bank Deerfield 8 1 Commercial Bank of Stambaugh Stambaugh 6 2 Moline State Bank Moline 4 1 Application Filed First National Bank of Sault Ste. Marie Sault Ste. Marie 21 ^ Announced None American National Holding Company Banking Subsidiaries American National Bank & Trust Company of Michigan Kalamazoo 17 American National Bank in Portage Portage 3 American Bank of Three Rivers, NA Three Rivers 2 Niles National Bank & Trust Company Niles 1 American National Bank (de novo) Battle Creek 1 American National Bank (de novo) South Haven 1 American National Bank of Western Michigan (de novo) Allegan Applications Filed None Announced American National Bank of Norton Shores (de novo) Muskegon 0 0 American Bankcorporation Lansing 211 16 Banking Subsidiaries American Bank & Trust Company Lansing 211 15 American Bank of Charlotte (de novo) Charlotte 0 0 American Bank of Grand Ledge (de novo) Grand Ledge 0 1 Application Filed None Announced State Bank of Perry Perry 1 Pacesetter Financial Corporation Grand Haven 16 Banking Subsidiaries Traverse City State Bank Traverse City 86 Security First Bank & Trust Company Grand Haven 61 Applications Filed None Announced Owosso Savings Bank Owosso 85 West Michigan Financial Corporation Cadillac 80 10 Banking Subsidiaries Cadillac State Bank Cadillac 80 10 Applications Filed First National Bank of Evart Evart 6 Announced None Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL RESERVE BULLETIN □ APRIL 1974 CONCENTRATION RATIOS IN MICHIGAN SMSA’s. JUNE 30. 1973' Market Shares Number Total de- Total Demand State & SMSA Population banks posits (mill.) Bk. Org. deposits IPC Savings local Bay City 117 5 256 1st 70 71 74 55 2 91 94 95 73 3 96 97 98 88 5 100 100 100 100 Battle Creek 179 11 401 1st 51 47 49 57 2 73 71 68 73 3 80 79 78 77 5 90 89 89 90 Saginaw 220 8 527 1st 46 48 47 45 2 70 74 68 74 3 83 85 83 86 5 92 90 94 95 Jackson 143 8 333 1st 43 47 40 46 2 86 89 82 87 3 92 95 92 94 5 99 98 97 97 Flint 536 11 1319 1st 41 40 40 48 2 74 74 76 76 3 86 85 85 94 5 94 94 94 98 Kalamazoo-Portage 258 10 612 1st 40 36 43 44 2 67 71 69 67 3 84 85 84 87 5 92 92 95 93 Grand Rapids 539 19 1720 1st 40 39 43 36 2 60 58 61 54 3 74 75 70 78 5 82 83 80 85 Muskegon 175 7 381 1st 38 37 40 31 2 65 64 64 72 3 86 85 88 87 5 96 94 97 98 Lansing 424 19 1095 1st 36 33 32 52 2 55 66 55 61 3 69 72 66 74 5 79 82 77 83 Detroit 4431 63 14947 1st 31 34 22 29 2 46 49 38 35 3 60 66 51 45 5 71 76 64 59 Ann Arbor 234 11 553 1st 30 33 26 34 2 56 62 54 45 3 69 75 64 66 5 87 90 84 95 ‘Adapted from Summary of Deposits in All Commercial and Mutual Savings Banks, June 30, 1973, Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 309 Dissenting Statement of would remain much smaller. The proposed acqui­ Governor Sheehan sition would allow Old Kent to enter another major market and would enable it to compete more In my opinion, consummation of the proposal effectively against those much larger leading would have no adverse effects on potential com­ banking organizations in Michigan through the petition either in the Saginaw banking market or expansion of its base of operations. Therefore, the in any other area of the State. Furthermore, sig­ proposed acquisition would have procompetitive nificant public benefits would result from the ex­ effects on a Statewide basis. In addition, affiliation pertise that Applicant would make available to with Old Kent would allow Second National Bank Bank. to offer improved services, particularly trust ser­ While the acquisition might eliminate the possi­ vices, minority lending, mortgage lending and bility of competition developing in the future be­ commercial credit services. tween Old Kent’s subsidiaries and Bank, I do not For the foregoing reasons, I conclude that there believe the development of such competition in are significant benefits to the public to be derived the absence of the acquisition to be at all probable. from the proposal and no adverse competitive In my opinion, the problems involved in de novo effects. Accordingly, I would approve this appli­ entry are sufficiently difficult so as to make it rather cation. unlikely that Old Kent would enter this market in such a manner. This conclusion is bolstered by ORDER UNDER SECTIONS 3 AND 4 OF the fact that Saginaw does not appear to be a BANK HOLDING COMPANY ACT particularly attractive market for de novo entry due primarily to the declining population of the City THE ADAIR CORPORATION, of Saginaw over the past decade. The majority, ADAIR, IOWA in addition to finding de novo entry likely, also finds that there are a number of smaller banks in Order Denying Formation of Bank Holding the market which would be available for acquisi­ Company tion. However, it is apparent that Old Kent would The Adair Corporation, Adair, Iowa, has ap­ need to enter the market through the City of plied for the Board’s approval under § 3(a)(1) of Saginaw in order to have an effective entry. Of the Bank Holding Company Act (12 U.S.C. the smaller banks in the market, only one has its 1842(a)(1)) of formation of a bank holding com­ offices concentrated in the city. There is no evi­ pany through the acquisition of 97 per cent of the dence in the record concerning the availability of voting shares of Exchange State Bank (“Bank”), this bank for acquisition and, inasmuch as the Adair, Iowa. possibilities for an effective entry into Saginaw are At the same time, Applicant has applied for the limited, I cannot view Old Kent as a likely entrant Board’s approval under § 4(c)(8) of the Act (12 absent the present proposal. U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the The majority further concludes that the proposed Board’s Regulation Y to continue to engage in acquisition would eliminate Century Financial as insurance agency activities in a community with a large independent which appears capable of a population of less than 5,000 persons. anchoring a regional holding company system. Notice of the applications, affording opportunity However, on the basis of Bank’s history, as well for interested persons to submit comments and as the fact that Century Financial has not used views, was published on December 17, 1973 (38 its holding company status to expand either in Federal Register, 35352, 35353) and the time for banking or nonbanking activities, it appears that filing comments and views has expired. The Board Century Financial lacks the desire to lead a multi­ has considered the applications and all comments bank holding company, whether regional or State­ received in light of the factors set forth in § 3(c) wide. On the basis of the above, I conclude that of the Act, and the considerations specified in § consummation of the proposal would not eliminate 4(c)(8) of the Act. potential competition between Century Financial Applicant presently conducts general insurance and Old Kent. agency activities in Adair, Iowa, a town of ap­ While finding no significant anticompetitive ef­ proximately 750 people. Bank has deposits of $6.6 fects to the proposal, I believe it would result in million,1 and is the smallest of 7 banks in the significant public benefits. Old Kent is only onethird the size of the State’s fourth largest banking organization and if the proposal were approved ’Banking data are as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN □ APRIL 1974 relevant banking market,2 controlling 7.4 per cent communities which it serves. Such considerations of the total deposits in commercial banks in the lend weight toward denial of the application. market. The purpose of the proposed transaction The Board notes that principals of Applicant is to effect a transfer of the ownership of Bank already control or have significant interests in from individuals to a corporation owned by the several other banks. The principals have received same individuals with no change in Bank’s man­ large management and directors’ fees and liberal agement or operations. The principals of Applicant dividends from some of these other banks, result­ also own shares in several other bank holding ing in the declining capital condition of such companies and banks, including the Anita State banks. These precedents lend support to the view Bank, Anita, Iowa (“Anita Bank”), which is that the capital position of Bank could be adversely located 7 miles from Bank and is Bank’s nearest affected upon approval of this proposal. competitor. Anita Bank is the third largest bank Under the above circumstances and on the basis in the market controlling about 10 per cent of of other facts of record, considerations relating to deposits therein. Consummation of the proposal the financial condition, managerial policies and would have adverse effects on existing and poten­ future prospects of Applicant and Bank lend tial competition, to the extent that it would facili­ weight for denial of the application. The Board tate maintenance of the existing ties between these does not sanction the use of a holding company two banks. structure to perpetuate management practices that As it has indicated on previous occasions, the will in due course impair the financial condition Board believes that a holding company should be of the bank to be acquired. Such action would a source of financial strength for its subsidiary not be consistent with the standards of § 3(c) of bank(s) and every proposed acquisition or forma­ the Act nor would it serve the public interest. tion is closely examined with this consideration On the basis of all the facts in the record, it in mind. The future prospects of Applicant are is the Board’s judgment that the financial condition primarily dependent upon the financial resources of Bank and management practices of principals of Bank. Bank’s capital to total assets ratio has of Applicant would be inconsistent with the stand­ declined significantly under current management ards set forth in § 3(c) of the Act. Accordingly, of Bank. Despite Bank’s need for additional capi­ the Board concludes that consummation of the tal, principals of Bank, who are also the owners proposal would not be in the public interest, and of Applicant, have derived large management fees that the application should be denied.3 and cash dividends from Bank. The Iowa State By order of the Board of Governors, effective Banking Department, in order to safeguard Bank’s March 20, 1974. resources, has required that any future dividends Voting for this action: Chairman Burns and Governors must first be authorized by it. Obviously, any such Mitchell, Sheehan, Bucher, and Holland. Absent and not limitation on Bank’s dividends could impair Ap­ voting: Governors Brimmer and Wallich. plicant’s ability to service the debt it would assume incident to the proposed transaction. (Signed) Theodore E. A llison, The Board has considered Bank’s present con­ [seal] Assistant Secretary of the Board. dition and declining capital position under current ownership. The past policies of principals of Ap­ plicant regarding the withdrawal from Bank of ORDERS UNDER SECTION 4 OF large management fees, makes it likely that Ap­ BANK HOLDING COMPANY ACT plicant would not have the necessary financial flexibility to meet its annual debt servicing re­ COLONIAL BANCORP, INC., quirements without adversely affecting the capital WATERBURY, CONNECTICUT position of Bank. The above factors strongly sug­ Order Approving Acquisition of gest that the future financial requirements of Ap­ Policy Advancing Corp. plicant could place an undue strain on Bank and thus impair Bank’s ability to be a viable banking Colonial Bancorp, Inc., Waterbury, Connecti­ organization in meeting the banking needs of the cut, a bank holding company within the meaning of the Bank Holding Company Act, has applied 2The market area is approximated by the upper half of Cass Denial of Applicant’s § 3(a)(1) application renders moot County and portions of Audubon, Adair and Guthrie counties. Board action on the accompanying § 4(c)(8) application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 311 for the Board’s approval, under section 4(c)(8) of quisition would result in undue concentration of the Act and § 225.4(b)(2) of the Board’s Regula­ resources, unfair competition, conflicts of interest, tion Y, to acquire all of the voting shares of Policy unsound banking practices, or other adverse ef­ Advancing Corp., Watertown, New York (“Pol­ fects on the public interest. In its consideration icy”), a company that engages in the activity of of this application, the Board has examined the making extensions of credit to individuals and covenant not to compete which was executed in corporations to finance the payment of casualty, connection with the proposal. The Board finds that liability, and other insurance premiums. Such ac­ the provisions of this covenant are reasonable in tivity has been determined by the Board to be duration, scope, and geographic area and are con­ closely related to banking (12 CFR 225.4(a)(1)). sistent with the public interest. Notice of the application, affording opportunity Based upon the foregoing and other consid­ for interested persons to submit comments and erations reflected in the record, the Board has views on the public interest factors, has been duly determined that the balance of the public interest published (38 Federal Register 35353). The time factors the Board is required to consider under for filing comments and views has expired, and section 4(c)(8) is favorable. Accordingly, the ap­ none has been timely received. plication is hereby approved. This determination Applicant is the seventh largest banking organi­ is subject to the conditions set forth in section zation in Connecticut and controls one subsidiary 225.4(c) of Regulation Y and to the Board’s au­ bank with deposits of approximately $278.6 mil­ thority to require such modification or termination lion,1 representing approximately 4.4 per cent of of the activities of a holding company or any of total commercial bank deposits in the State. Policy its subsidiaries as the Board finds necessary to (assets of $5.9 million, as of June 30, 1973) assure compliance with the provisions and pur­ presently operates in 10 cities2 and engages in the poses of the Act and the Board’s regulations and financing of casualty, liability, and other insurance orders issued thereunder, or to prevent evasion premiums for individuals and corporations. Appli­ thereof. cant’s subsidiary bank is engaged to a very limited The transaction shall be made not later than extent in insurance premium financing through its three months after the effective date of this Order, Waterbury offices. Policy does not presently derive unless such period is extended for good cause by any business from the Waterbury area. Accord­ the Board or by the Federal Reserve Bank of ingly, it appears that consummation of the pro­ Boston. posal would not eliminate any significant existing By order of the Board of Governors, effective competition between Applicant and Policy. Fur­ March 1, 1974. thermore, it does not appear likely that a signifi­ Voting for this action: Chairman Burns and Governors cant amount of competition would develop in the Mitchell, Daane, Sheehan, Bucher, and Holland. Voting future, since Policy’s present owners have indi­ against this action: Governor Brimmer. cated their intention to discontinue insurance pre­ (Signed) C hester B. Feldberg, mium financing as engaged in by Policy, and since [seal] Secretary of the Board. Applicant’s subsidiary bank is only nominally en­ gaged in this activity and is not likely to signifi­ cantly increase its present volume of business. The Dissenting Statement of Board concludes, therefore, that competitive con­ Governor Brimmer siderations are consistent with approval of the I would deny the application by Colonial Ban­ application. corp to acquire Policy Advancing Corp. My deci­ Applicant has stated its intention to expand the sion is based upon the existence of a covenant operations of Policy into other geographic areas not to compete which was executed between Ap­ and thereby provide an additional competitor in plicant and the corporation which presently owns these new areas. In addition, Applicant will pro­ Policy. The effect of this covenant is to preclude vide more efficient service to Policy’s customers the possibility of the selling corporation undertak­ through the introduction of an electronic data pro­ ing to provide an alternative source of insurance cessing system. There is no evidence in the record premium financing in any geographic area in which indicating that consummation of the proposed ac­ Policy is presently doing business for a period of three years from the date of consummation of the 'AJJ banking data are as of June 30, 1973. acquisition. The majority has presented no evi­ 2The 10 cities are located in four States—New York, Penn­ sylvania, Ohio, and Connecticut. dence to show that such covenants are in the public Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN □ APRIL 1974 interest. For reasons stated more fully in my dis­ it competes with a number of large national com­ sents to the application of Orbanco, Inc., to ac­ mercial finance firms. Neither Applicant nor any quire Far West Security Company (59 Federal of its subsidiaries is engaged in commercial lend­ Reserve B ulletin 368-369 (1973)), and the ap­ ing in Firestone’s market area other than to a very plication of CBT Corporation to acquire General limited degree. Applicant and its subsidiaries do Discount Corporation (59 Federal Reserve B ul­ not engage in making second mortgage loans. letin 471 (1973)), I am convinced that such Accordingly, no significant existing competition covenants do not serve to promote competition and would be eliminated in either commercial financ­ should not receive the sanction of the Board. I ing or the origination of second mortgage loans would deny this application. upon consummation of the subject proposal. There are sufficient potential entrants into these product DEPOSITORS CORPORATION, markets so that the elimination of Applicant would AUGUSTA, MAINE not have any adverse effects on future competition upon approval of this application. Order Approving Acquisition of In its consideration of this application, the Firestone Financial Corporation Board has considered a post-employment covenant Depositors Corporation, Augusta, Maine, a contained in the employment agreement entered bank holding company within the meaning of the into between Firestone and the two principals and Bank Holding Company Act, has applied for the sole stockholders of Firestone. The covenant pro­ Board’s approval, under section 4(c)(8) of the Act vides that the principals will not engage or partici­ and § 225.4(b)(2) of the Board’s Regulation Y, pate in any manner in the financing business of to acquire all of the voting shares of Firestone the type engaged in by Firestone for a period of Financial Corporation (“Firestone”), Chestnut five years after termination of employment. The Hill, Massachusetts, a company that engages in record indicates that the principals (who are also the activities of commercial financing and financ­ the founders of Firestone) during their employment ing second mortgages. Such activities have been term will have complete managerial control and determined by the Board to be closely related to decision-making authority with respect to Fire­ banking (12 CFR 225.4(a)(1)). stone’s business, and, by the very nature of the Notice of the application, affording opportunity business, these principals will have substantial for interested persons to submit comments and contact with Firestone’s customers. Accordingly, views on the public interest factors, has been duly the Board finds that the covenant’s provisions are published (38 Federal Register 29638). The time reasonable in duration, scope, and geographic area for filing comments and views has expired, and and are consistent with the public interest. none has been timely received. There is no evidence in the record indicating Applicant, the largest banking organization in that consummation of the proposed transaction Maine, controls six banks with deposits of ap­ would result in any undue concentration of re­ proximately $266 million representing 16.2 per sources, unfair competition, conflicts of interest, cent of the total deposits in commercial banks in unsound banking practices or other adverse effects that State.1 on the public interest. Applicant’s greater access Firestone, a Massachusetts corporation with to financial resources may assure Firestone of more total assets of $3.5 million as of May 31, 1973, ready access to funds and enable it to become a is principally engaged in the financing of restau­ more effective competitor; thus, competition with rant, bakery, laundry, vending, and industrial affiliates of larger regional and national commer­ equipment. As of May 31, 1973, Firestone had cial finance firms is likely to be stimulated. outstanding loans of around $3 million; of that Based upon the. foregoing and other consid­ amount, approximately 75 per cent represents erations reflected in the record, the Board has commercial loans, with the remainder being sec­ determined that the balance of the public interest ond mortgages. Firestone engages in commercial factors the Board is required to consider under lending primarily in eastern Massachusetts, which section 4(c)(8) is favorable. Firestone is presently encompasses the Boston area, and in which market holding some realty for sale which the Board regards as an impermissible activity for bank holding companies. Thus, Board approval of the ’All banking data are as of June 30, 1973, and reflect bank proposal is granted subject to the condition that holding company formations and acquisitions approved by the Applicant divest itself of the tract of land at the Board through December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 313 earliest practicable time, but in no event later than Applicant directly acquired Company in 1968 two years from the date of this Order. Accord­ under authority of § 4(c)(5) of the Act.1 Applicant ingly, Applicant’s proposal to acquire Firestone seeks permission through this application to is hereby approved subject to the above condition. operate Company under the broader authority The order herein is also subject to the conditions contained in § 4(c)(8) of the Act. In considering set forth in section 225.4(c) of Regulation Y and a proposal for the retention of shares in a non­ to the Board’s authority to require such modifi­ banking company under § 4(c)(8) of the Act, the cation or termination of the activities of a holding Board must find that the proposed retention of the company or any of its subsidiaries as the Board nonbanking company could reasonably be ex­ finds necessary to assure compliance with the pected to produce benefits to the public, such as provisions and purposes of the Act and the Board’s greater convenience, increased competition, or regulations and orders issued thereunder, or to gains in efficiency, that outweigh possible adverse prevent evasion thereof. effects such as an undue concentration of re­ The transaction shall be made not later than sources, decreased or unfair competition, conflicts three months after the effective date of this Order, of interests, or unsound banking practices. unless such period is extended for good cause by Applicant, the sixth largest banking organi­ the Board or by the Federal Reserve Bank of zation in Virginia, controls 23 banks with aggre­ Boston. gate deposits of $761 million, representing 6.7 per By order of the Board of Governors, effective cent of total deposits in commercial banks in March 11, 1974. Virginia.2 Applicant’s nonbanking subsidiaries engage in activities including mortgage lending, Voting for this action: Chairman Burns and Governors consumer finance, leasing, advisor to real estate Mitchell, Sheehan, Bucher, and Holland. Absent and not voting: Governors Brimmer and Wallich. investment trust, the sale of insurance, and holding title to bank premises. (Signed) Theodore E. A llison, [seal] Assistant Secretary of the Board. Company (assets of $16 million as of December 31, 1972) is headquartered in Falls Church, Vir­ ginia, a suburb of Washington, D.C., and ranked as the 135th largest mortgage company in the FIRST VIRGINIA BANKSHARES CORPORA­ United States based on a mortgage servicing vol­ TION, FALLS CHURCH, VIRGINIA ume of $212 million as of June 30, 1973.The principal competitive effects of Applicant’s pro­ Order Approving Retention of Arlington posal are limited to the Washington, D.C., SMSA. M ortgage Company In 1968, Applicant’s lead bank, First Virginia First Virginia Bankshares Corporation, Falls Bank, Falls Church, Virginia (“Bank”), origi­ Church, Virginia, a bank holding company within nated a total of approximately $4.6 million of 1-4 the meaning of the Bank Holding Company Act, family residential mortgage loans and $4.7 million has applied for the Board’s approval, under section 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to retain all of the voting shares of Arlington Mortgage Company, Falls Church, Virginia (“Company”), a company that engages in the following activities: origination and acqui­ 1 Section 4(c)(5) of the Act generally permits a bank holding sition of both FHA and VA-insured and conven­ company to acquire, without Board approval, “shares which tional real estate loans (including construction are of the kinds and amounts eligible for investment by national banking associations under the provisions of section 5136 of loans), and servicing of all types of real estate the Revised Statutes.” loans. Such activities have been determined by the 2 All banking data are as of June 30, 1973, adjusted to reflect Board to be closely related to banking (12 CFR holding company acquisitions and formations approved through February 28, 1974. 225.4(a)(1) and (3)). ;5Since its acquisition by Applicant, Company has estab­ Notice of the application, affording opportunity lished additional offices de novo in each of the following: for interested persons to submit comments and Virginia Beach, Virginia; Orlando, Florida; and Birmingham, Alabama. However, these offices serve only as loan production views on the public interest factors, has been duly offices, soliciting loans and preparing credit, appraisal, and published (39 Federal Register 1487). The time feasibility information for the originations at the Company’s for filing comments and views has expired, and principal office in Falls Church. The application herein con­ templates converting these three offices to full service mortgage none has been timely received. lending offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN □ APRIL 1974 of mortgage loans on multi-family and non-resi- resources, unfair competition, conflicts of inter­ dential property in the Washington, D.C., SMSA; ests, unsound banking practices, or other adverse during the same period and within the same area, effects. On the contrary, the affiliation of Company Company originated about $11 million of 1-4 with Applicant has resulted in benefits to the public family residential mortgage loans and $15 million in the form of expanded services and increased of mortgage loans on multi-family and non-resi- lending capabilities since Applicant has provided dential property. Comparable figures for 1972 in­ Company with substantial capital thereby increas­ dicate that Bank and Company originated approx­ ing the volume of Company’s loan originations. imately $18 million and $13 million of 1-4 family Moreover, approval herein will enable Company residential mortgage loans, and approximately $2 to convert its Virginia Beach, Orlando, and Bir­ million and $71 million of mortgage loans on mingham loan production offices to full service multi-family and non-residential property, respec­ status, thus resulting in greater convenience to the tively.4 In view of the large number of mortgage public and more efficient processing of loan appli­ lenders in the relevant market (over 100), the cations. These public benefits lend weight for relatively small share of the residential mortgage approval herein. market that Applicant and Company hold com­ Based on the foregoing and other considerations bined (under 2 per cent), and the fact that the reflected in the record, the Board has determined mortgage loan market for multi-family and non­ that the balance of the public interest factors the residential property is national in scope, it appears Board is required to consider under section 4(c)(8) that no meaningful existing competition was elim­ is favorable. Accordingly, the application is inated, nor was substantial competition foreclosed, hereby approved. This determination is subject to in the Washington, D.C. area through Applicant’s the conditions set forth in section 225.4(c) of acquisition of Company. Regulation Y and to the Board’s authority to First Virginia Mortgage Company (“Mort­ require such modification or termination of the gage”), a subsidiary of Bank, offers FHA and activities of a holding company or any of its VA-insured mortgage loans and 90-95 per cent subsidiaries as the Board finds necessary to assure residential financing to customers of Applicant’s compliance with the provisions and purposes of subsidiary banks operating outside the Washing­ the Act and the Board’s regulations and orders ton, D.C., SMSA. However, the amount of such issued thereunder, or to prevent evasion thereof. loans originated by Mortgage during 1972 By order of the Board of Governors, effective amounted to only about $900,000. First Advisors, March 13, 1974. Inc. (“First Advisors”), a direct subsidiary of Voting for this action: Chairman Burns and Governors Applicant, acts as advisor to Mortgage and a Mitchell, Brimmer, Sheehan, Bucher, Holland, and Wallich. publicly-owned real estate investment trust. First (Signed) Theodore E. A llison, Advisors also originates, as exclusive agent for [seal] Assistant Secretary of the Board. the trust, commercial real estate and construction loans and, as a result, there is a slight overlap in this type of loan activity between First Advisors and Company; but the amount of direct competi­ tion appears to be insignificant, particularly in INDUSTRIAL NATIONAL CORPORATION, view of the fact that the market for such loans PROVIDENCE, RHODE ISLAND is national in scope. On the basis of the foregoing and other facts of record, the Board concludes that Order Approving Acquisition of Mortgage the proposal would have no significant adverse Associates, Inc. effects on existing or potential competition in any Industrial National Corporation, Providence, relevant area. Rhode Island, a bank holding company within the There is no evidence in the record to indicate meaning of the Bank Holding Company Act, has that the proposed retention of Company by Appli­ applied for the Board’s approval, under § 4(c)(8) cant would lead to an undue concentration of of the Act and § 225.4(b)(2) of the Board’s Regu­ lation Y, to acquire the assets of Mortgage Asso­ ciates, Inc., Milwaukee, Wisconsin (“MAI”), a 4 Applicant has two other subsidiary banks in the Washing­ company that engages in the following activities: ton, D.C., SMSA (combined deposits of $46 million), and (1) origination and sale of residential and com­ in 1972 they had in the aggregate about $6 million of residential mortgage loans in the market area. mercial mortgages; (2) origination and sale of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 315 loans for the purchase of mobile homes; (3) con­ both residential and commercial mortgages. MAI’s sumer finance; (4) servicing of mortgage loans and residential mortgages are derived from 12 States,5 mobile home loans; and (5) operation of an insur­ while its commercial mortgages are derived from ance agency with respect to certain types of insur­ three States.6 Of more than $219 million in mort­ ance. Such activities have been determined by the gages originated by MAI in fiscal 1973, approxi­ Board to be closely related to banking (12 CFR mately 71 per cent were residential mortgages, 225.4(a) (1), (3), and (9)). MAI is also engaged while the remaining 29 per cent were commercial in real estate development and property manage­ mortgages. Based on a mortgage servicing portfo­ ment activities. The Board has previously deter­ lio of about $957 million, MAI ranks as the mined that such activities are not closely related sixteenth largest mortgage banking firm in the to banking;1 and Applicant has committed itself United States. MAI is also engaged in consumer to phasing out these activities, if the proposed finance activities in the States of Wisconsin and acquisition is approved. Illinois, where it has approximately $12 million Notice of the application, affording opportunity in consumer loans outstanding. In addition, MAI for interested persons to submit comments and engages in the origination and servicing of loans views on the public interest factors, has been duly on mobile homes; and insurance agency activities published (38 Federal Register 28115). The time with regard to certain types of insurance. for filing comments and views has expired, and As a threshold matter, the Board believes that the Board has considered all comments received the acquisition of the 16th largest mortgage bank­ in the light of the public interest factors set forth ing firm in the United States and the 6th largest in section 4(c)(8) of the Act (12 U.S.C. 1843(c)).2 independent mortgage banking company, deserves Applicant, a one bank holding company, con­ special scrutiny to insure that the proposal does trols Industrial National Bank of Rhode Island, not raise concern with respect to the question of Providence, Rhode Island (“Bank”), the largest undue concentration of resources. The Board has commercial bank in Rhode Island, with deposits in the past closely examined acquisitions of such of approximately $1.3 billion, representing about size. In the case at hand Applicant’s primary 56 per cent of total deposits in commercial banks subsidiary, Industrial National Bank of Rhode in the State.3 Bank engages in both consumer Island, while having resources of approximately finance and mortgage banking operations. Bank’s $1.5 billion, ranked only 63rd among commercial portfolio of $288 million in residential mortgages banking organizations in the country (as of June (as of June 30, 1973) is confined to loans on 30, 1973). While Applicant is engaged in a property in Rhode Island, Connecticut, and Mas­ number of nonbanking activities such as leasing, sachusetts. Applicant also controls several non­ factoring, and consumer finance, Applicant is not banking subsidiaries which engage in the follow­ a substantial factor nationwide in any of these ing activities: real estate investment and develop­ activities. The Board therefore believes that the ment4 mortgage banking, data processing, invest­ question of undue concentration of resources need ment advisor, personal property leasing, factoring, not be accorded significant weight in the case at and consumer finance. Applicant’s consumer fi­ hand. nance subsidiary operates in Georgia, Florida, Although MAI and some of Applicant’s subsid­ North Carolina, South Carolina, and Tennessee; iaries engage in the same activities, all operate and Applicant’s mortgage banking subsidiary in separate geographic markets and there does not makes only interim and short-term real estate loans appear to be any significant existing competition for its own account. between them in either their mortgage banking, The primary business activity of MAI is mort­ consumer finance, or mobile home financing gage banking. It originates, sells, and services activities. Furthermore, it does not appear likely that any significant competition would develop between these institutions in the future due to the 'See: 1972 Bui.i.hiin 429; and 12 CFR 225.126(d) and distances which separate their respective markets. (e). Accordingly, it is the Board’s judgment that con­ - The National Association of Insurance Agents, Inc., and related parties tiled a petition on July 31, 1973, objecting to siderations relating to the competitive aspects of approval of the application and requesting a hearing be held on this application. Subsequently, the objections and related request for a hearing were withdrawn. ;iAll banking data are as of June 30, 1973. 5Arizona, Florida, Illinois, Indiana, Michigan, Minnesota, ‘Applicant relies upon section 4(c)( 12) of the Act to continue Missouri, Nevada, Oklahoma, Ohio, Texas, and Wisconsin. to engage in this activity. (iIllinois, Minnesota, and Wisconsin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN □ APRIL 1974 the proposed acquisition are consistent with ap­ By order of the Board of Governors, effective proval of the application. March 15, 1974. Approval of the proposed acquisition would Voting for this action: Chairman Burns and Governors give MAI access to the financial resources of Brimmer, Sheehan, and Holland. Absent and not voting: Applicant, and it is anticipated that such increase Governors Mitchell, Bucher, and Wallich. in the availability of funds will enable MAI to (Signed) Theodore E. A llison, expand the volume of its mortgage banking activi­ [seal] Assistant Secretary of the Board. ties as well as broaden the geographic markets it serves. For example, the volume of MAI’s home improvement loans has declined over the past three years from about $25 million to $11 million, as SOUTHERN BANCORPORATION, INC., the company was unable to obtain funds. Appli­ GREENVILLE, SOUTH CAROLINA cant proposes to increase this pool of lendable Order Approving Acquisition of funds by $10 million and, in addition, assist MAI F&I Finance Company in the origination of over $100 million in loans on mobile homes in the next 15 months. Applicant Southern Bancorporation, Inc., Greenville, also proposes to finance MAI’s expansion within South Carolina, a bank holding company within the next three years into five geographical markets the meaning of the Bank Holding Company Act, in which it is not presently represented, including has applied for the Board’s approval, under § parts of the Southeastern section of the country. 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s It is the Board’s judgment that consummation of Regulation Y, to acquire through its wholly-owned the proposed transaction would bring positive subsidiary, World Acceptance Corporation benefits to the public and that such benefits out­ (“World”), all of the voting shares of F&I Fi­ weigh any possible adverse effects. nance Company, Inc., Sherman, Texas (“F&I”),1 There is no evidence in the record indicating a company that engages in the activity of making that consummation of the proposed transaction extensions of credit of $100 or less to individuals would result in undue concentration of resources, as a licensed consumer finance lender under the unfair competition, conflicts of interest, unsound Texas Consumer Credit Code. Such activity has banking practices, or other adverse effects. Based been determined by the Board to be closely related upon the foregoing and other considerations re­ to banking (12 CFR 225.4(a)(1)). flected in the record, the Board has determined Notice of the application, affording opportunity that the balance of the public interest factors the for interested persons to submit comments and Board is required to consider under § 4(c)(8) is views on the public interest factors, has been duly favorable. Accordingly, the application is hereby published (38 Federal Register 34836). The time approved subject to the condition that Applicant for filing comments and views has expired, and terminate MAI’s real estate development and none has been timely received. property management activities at the earliest pos­ Applicant controls one bank located in Green­ sible date, but in no event later than one year from ville, South Carolina, which holds total deposits the date of consummation of the proposed acqui­ of $118 million. F&I is a consumer finance com­ sition. This determination is additionally subject pany operating out of an office in Sherman, Texas, to the conditions set forth in section 225.4(c) of and has total assets of $44,000 (as of September Regulation Y and to the Board’s authority to 30, 1973). F&I’s operations are limited to Grayson require such modification or termination of the County, Texas, with 85 per cent of the active activities of a holding company or any of its accounts of F&I originating within a 10-mile ra­ subsidiaries as the Board finds necessary to assure dius of Sherman. World operates consumer fi­ compliance with the provisions and purposes of nance offices in the States of South Carolina, the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. 1 On December 1, 1973, World acquired all of the assets The transaction shall be made not later than of F&I relying upon the Federal Reserve Bank of Richmond’s authorization, pursuant to § 265.2(f)(20)(i) of the Board’s three months after the effective date of this Order, Rules Regarding Delegation of Authority, of the establishment unless such period is extended for good cause by by Applicant of a de novo finance company office in Sherman, Texas. When informed that authorization for the acquisition the Board or by the Federal Reserve Bank of of F&I was not granted, Applicant took immediate steps to Boston. divest itself of F&I. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 317 Georgia, and Texas, but does not presently operate determined that the balance of the public interest in Sherman, Texas. Accordingly, it does not ap­ factors the Board is required to consider under pear that consummation of the proposal would section 4(c)(8) is favorable. Accordingly, the ap­ eliminate any significant existing competition be­ plication is hereby approved. This determination tween Applicant and F&I. Nor would consumma­ is subject to the conditions set forth in section tion of the proposal result in the foreclosure of 225.4(c) of Regulation Y and to the Board’s au­ significant potential competition. Further, no sig­ thority to require such modification or termination nificant adverse competitive effects would appear of the activities of a holding company or any of to result from the proposed acquisition in view its subsidiaries as the Board finds necessary to of the size of F&I. The Board concludes, there­ assure compliance with the provisions and pur­ fore, that competitive considerations are consistent poses of the Act and the Board’s regulations and with approval of the application. orders issued thereunder, or to prevent evasion Applicant’s greater financial resources and spe­ thereof. cialized services should enable it to better service The transaction shall be made not later than the existing customers of F&I and provide them three months after the effective date of this Order, with continued local servicing on their loans. Fur­ unless such period is extended for good cause by thermore, F&I’s competitive strength should be the Board or by the Federal Reserve Bank of increased so that it may be a more viable competi­ Richmond. tor. There is no evidence in the record indicating By order of the Board of Governors, effective that consummation of the proposed acquisition March 25, 1974. would result in undue concentration of resources, unfair competition, conflicts of interest, unsound Voting for this action: Chairman Burns and Governors Brimmer, Sheehan, Bucher, Holland, and Wallich. Absent and banking practices or other adverse effects on the not voting: Governor Mitchell. public interest. (Signed) C hester B. Feldberg, Based upon the foregoing and other consid­ [seal] Secretary of the Board. erations reflected in the record, the Board has O RDERS NOT PRINTED IN THIS ISSUE During March 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— APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Federal Effective Register Applicant Bank date citation Byers State Bankshares, Inc., Byers State Bank, 3/20/74 39 F.R. 71347 Byers, Colorado Byers, Colorado 3/27/74 Community Bancorporation, Community National Bank, 3/6/74 39 F.R. 9865 Columbus, Ohio Mount Gilead, Ohio 3/14/74 Curry Ban Corporation, Farmers Savings Bank, 3/15/74 39 F.R. 11224 Massena, Iowa Massena, Iowa 3/26/74 S&S Investment Company, State Bank of Odell, 3/1/74 39 F.R. 9503 Odell, Nebraska Odell, Nebraska 3/11/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN □ APRIL 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Alabama Bancorporation, The City National Bank of Selma, 3/22/74 39 F.R. 12174 Birmingham, Alabama Selma, Alabama 4/3/74 American Bancorporation, Inc., First Burnsville State Bank, 3/15/74 39 F.R. 10941 and Jacob Schmidt Company, Burnsville, Minnesota 3/22/74 both of St. Paul, Minnesota Barnett Banks of Florida, Barnett Bank of Lake Placid, 3/1 1/74 39 F.R. 10187 Jacksonville, Florida Lake Placid, Florida 3/18/74 Barnett Banks of Florida, Inc., Barnett Bank of South Orlando, 3/13/74 39 F.R. 10493 Jacksonville, Florida Orlando, Florida 3/20/74 Baystate Corporation, The First National Bank of East- 3/6/74 39 F.R. 9710 Boston, Massachusetts hampton, Easthampton, Massa­ 3/13/74 chusetts Colorado National Bankshares, Golden State Bank, Golden, 3/25/74 39 F.R. 12175 Inc., Denver, Colorado Colorado, and First National 4/3/74 Bank of Evergreen, Evergreen, Colorado Hawkeye Bancorporation, American State Bank, 3/22/74 39 F.R. 12176 Des Moines, Iowa Mason City, Iowa 4/3/74 First Abilene Bankshares, Inc., Bank of Commerce, 3/22/74 39 F.R. 12176 Abilene, Texas Abilene, Texas 4/3/74 First National Charter Corporation, Blue Springs Bank, 3/29/74 39 F.R. 12386 Kansas City, Missouri Blue Springs, Missouri 4/5/74 First Tennessee National Corpora­ Bank of Mt. Juliet, 3/25/74 39 F.R. 11950 tion, Memphis, Tennessee Mount Juliet, Tennessee 4/1/74 First United Bancorporation, Inc., Great Southwest National Bank of 3/27/74 39 F.R. 12286 Fort Worth, Texas Arlington, Arlington, Texas 4/4/74 Manufacturers National Corpora­ Saline Savings Bank, 3/20/74 39 F.R. 11634 tion, Detroit, Michigan Saline, Michigan 3/29/74 Southeast Banking Corporation, City National Bank of Cocoa, 3/5/74 39 F.R. 9712 Miami, Florida Cocoa, Florida 3/13/74 The Fort Worth National Cor­ Southern National Corporation, 3/6/74 39 F.R. 9866 poration, Fort Worth, Texas Houston, Texas 3/14/74 Third National Corporation, The Bank of Sevierville, 3/15/74 39 F.R. 10943 Nashville, Tennessee Sevierville, Tennessee 3/22/74 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking Company (effective Register Applicant (or activity) date) citation Bank of Virginia Company, Cavanagh Leasing Corporation, 3/29/74 39 F.R. 12933 Richmond, Virginia Richmond, Virginia 4/9/74 Byers State Bankshares, Inc., Byers State Bank, 3/20/74 39 F.R. 11347 Byers, Colorado Byers, Colorado 3/27/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 319 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES—Cont. Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Landmark Banking Corporation Willoughby Holin, Inc., 3/27/74 39 F.R. 12178 of Florida, Fort Lauderdale, Fort Lauderdale, Florida 4/3/74 Florida Prairie Home, Inc., L. A. Westland Agency, 3/8/74 39 F.R. 10190 Lincoln, Nebraska Prairie Home, Nebraska 3/18/74 Southern National Corporation, Marvin Greene Mortgage Cor­ 3/1/74 39 F.R. 9503 Lumberton, North Carolina poration, Charlotte, 3/11/74 North Carolina ORDERS UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation Bank of Utah, Bank of Ben Lomond, 3/15/74 39 F.R. 1 1222 Ogden, Utah Ogden, Utah 3/26/74 Chemung Canal Trust Company, Montour National Bank in 3/20/74 39 F.R. 11632 Elmira, New York Montour Falls, Montour Falls, 3/29/74 New York ORDERS ISSUED BY FEDERAL RESERVE BANKS During February or March 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. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Reserve Effective Register Applicant Bank Bank date citation Alabama Financial Group, Coosa Valley Bank, Atlanta 3/1/74 39 F.R. 9581 Inc., Birmingham, Rainbow City, Alabama 3/12/74 Alabama Alabama Financial Group, The Sand Mountain Bank, Atlanta 3/12/74 39 F.R. 10493 Inc, Birmingham, Boaz, Alabama 3/20/74 Alabama Atlanta Bancorporation, Mid-County Commercial Bank, Atlanta 2/27/74 39 F.R. 9501 Jacksonville, Florida Largo, Florida 3/1 1/74 Dominion Bankshares Cor- Merchants and Farmers Bank, Richmond 3/19/74 39 F.R. 11533 poration, Roanoke, Virginia Portsmouth, Virginia 3/29/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN □ APRIL 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—Cont. Federal Reserve Effective Register Applicant Bank Bank date citation First National Corporation, The Community Bank, Chicago 3/26/74 39 F.R. 12930 Appleton, Wisconsin De Pere, Wisconsin 4/9/74 First National Financial Cor­ The First National Bank of Chicago 3/4/74 39 F.R. 10189 poration, Kalamazoo, Sault Ste. Marie, Sault 3/18/74 Michigan Ste. Marie, Michigan First at Orlando Corporation, Citizens National Bank of Atlanta 3/8/74 39 F.R. 10494 Orlando, Florida Naples, Naples, Florida 3/20/74 First at Orlando Corporation, The First American Bank of Atlanta 3/12/74 39 F.R. 10494 Orlando, Florida Pensacola, Pensacola, Florida 3/20/74 Hamilton Bancshares, Inc., Citizens State Bank, Atlanta 31 \174 39 F.R. 9583 Chattanooga, Tennessee McMinnville, Tennessee 3/12/74 Valley of Virginia The Farmers Bank of Edinburg, Richmond 3/1/74 39 F.R. 9584 Bankshares, Inc., Incorporated, Edinburg, 3/12/74 Harrisonburg, Virginia Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF 2. The storage within the United States of goods under contract of sale or expected to move into The Board of Governors of the Federal Reserve the channel of trade within a reasonable time and System has announced the promotion of John S. that are secured throughout their life by a ware­ Rippey to Assistant to the Board to work on house receipt or similar document conveying title congressional matters, effective April 29, 1974. to the underlying goods. He succeeds Robert L. Cardon, who has retired The new rules eliminate the present requirement from the Board’s staff. that banks have in their possession shipping docu­ The Board has also appointed Donald J. Winn, ments conveying or securing title at the time they legislative and administrative aide to Repre­ accept drafts covering the shipment of goods sentative Fernand J. St Germain of Rhode Island, within the United States. The removal of this to succeed Mr. Rippey as Special Assistant to the requirement would eliminate a presently existing Board. difference between the documentation required for Mr. Winn holds bachelor’s and master’s degrees international and domestic shipment of goods. from Boston College and a bachelor of divinity The amendments also remove dollar exchange degree from Weston College, Weston, Massachu­ bills from the list of acceptances authorized for setts, and he has studied law at Georgetown Uni­ System purchase, since these instruments are sel­ versity. dom used; increase from 6 to 9 months the matu­ rity of acceptances eligible for purchase by the RULES RELATING TO BANKERS’ ACCEPTANCES Federal Reserve; and broaden the definition of The Federal Reserve announced a realignment and such acceptances to include those that finance the a modernization of its rules relating to open market storage of any goods rather than “readily market­ operations in bankers’ acceptances, effective April able staples.” 1, 1974. In taking this action, the FOMC also instructed No major change in System operations in bank­ the System’s staff to continue its studies to deter­ ers’ acceptances is expected to result from this mine whether Federal Reserve open market opera­ action, which eliminates outdated provisions in the tions in bankers’ acceptances should be expanded rules and broadens somewhat the scope of bankers’ to encompass all types of “prime” acceptances, acceptances eligible for purchase by the Federal including finance bills. The Board last year applied Reserve. Bankers’ acceptances are primarily ne­ a reserve requirement to finance bills. gotiable time drafts drawn to finance the interna­ In another action, the Board of Governors an­ tional or domestic shipment or storage of goods nounced the revocation of its Regulation C entitled and are termed “accepted” when a bank assumes “Acceptances by Member Banks of Drafts or Bills the obligation to make payment at maturity. of Exchange.” This regulation was outdated and In companion actions, the Board of Governors primarily repeated the provisions of the Federal rescinded its Regulation B—relating to open mar­ Reserve Act relating to this area. ket purchases of bills of exchange and accept­ ances—while the Federal Open Market Commit­ RULES RELATING TO BANK HOLDING COMPANIES tee (FOMC) incorporated the major elements of that regulation, with some technical changes, into The Board of Governors has revised its rules under its rules on the conduct of open market operations. which Federal Reserve Banks can approve, on The new rules authorize the Federal Reserve behalf of the Board, certain bank holding company Bank of New York to buy (outright or under formations, bank acquisitions, and bank mergers. repurchase agreement) and sell “prime” bankers’ The revised rules also give the Reserve Banks acceptances, with maturities of up to 9 months authority to approve the merger or consolidation at the time of acceptance, that arise out of: of bank holding companies, on the basis of criteria 1. The current shipment of goods between similar to those for bank acquisitions by holding countries or within the United States, or companies. Digitized for FRASER 321 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN □ APRIL 1974 The Board’s rules regarding delegation of au­ Reserve System under the direction of the Federal thority previously had authorized Reserve Banks Open Market Committee. to approve—on the basis of criteria set forth by The Federal Reserve’s reciprocal currency ar­ the Board—the formation of one-bank holding rangements are shown in the table below: companies, bank acquisitions by existing bank Millions holding companies, and bank mergers. Reserve Institution of dollars Banks may now approve bank acquisitions by bank Austrian National Bank ................................................ 250 holding companies where revenues of the applicant National Bank of Belgium ........................................... 1,000 Bank of Canada.................................................................. 2,000 from nonbank activities are as much as 20 per cent National Bank of Denmark.......................................... 250 of its total operating income, instead of 10 per Bank of England .............................................................. 3,000 cent as previously. Second, Reserve Banks may Bank of France ................................................................ 2,000 approve the financing of bank holding company German Federal Bank .................................................. 2,000 Bank of Italy ...................................................................... 3,000 formations and mergers and of bank acquisitions Bank of Japan .................................................................. 2,000 by bank holding companies involving debt, with Bank of Mexico .............................................................. 180 respect to all the holding company’s acquisitions, Netherlands Bank ............................................................ 500 amounting to as much as 20 per cent of the equity Bank of Norway .............................................................. 250 capital accounts of the holding company, instead Bank of Sweden .............................................................. 300 of 10 per cent as previously. Swiss National Bank......................................................... 1,400 A new criterion regarding bank holding com­ Bank for International Settlements: Swiss francs/dollars .................................................. 600 pany formations and mergers, bank acquisitions, Other European currencies/dollars ..................... 1,250 and mergers of banks prohibits action under dele­ Total .................................................... 19,980 gated authority on applications involving a cove­ nant not to compete. ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE INCREASE IN SWAP ARRANGEMENTS FEDERAL RESERVE SYSTEM The Federal Reserve announced on March 26, The following banks were admitted to membership 1974, that its reciprocal currency “swap” ar­ in the Federal Reserve System during the period rangement with the Bank of England has been March 16, 1974, through April 15, 1974: increased by $1 billion, bringing the total of that arrangement to $3 billion. Minnesota The increase enlarges the System’s swap net­ Apple Valley ............................ First State Bank work with 14 central banks and the Bank for of Apple Valley International Settlements to $19.98 billion. Montana A swap arrangement is a renewable, short-term Poison ............. First Citizens Bank of Poison facility under which a central bank agrees to ex­ Tennessee change on request its own currency for the cur­ Chattanooga ............... Commerce Union Bank rency of the other party up to a specified amount Chattanooga over a limited period of time. The Federal Reserve Virginia swap network was initiated in 1962. In all recip­ Brookneal ...................... First Virginia Bank— rocal currency arrangements the Federal Reserve South Central Bank of New York acts on behalf of the Federal Vienna ....................................... Bank of Vienna Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication April 15 Industrial production declined an estimated 0.5 per parts, and other durable goods materials. Produc­ cent in March, following declines of 0.9 and 0.7 tion of nondurable goods materials rose following per cent in January and February, respectively. a decline in February. The total index at 123.9 per cent of the 1967 average was 0.2 per cent above a year earlier. The INDUSTRIAL PRODUCTION SEASONALLY ADJUSTED, RATIO SCALE, 1967=100 decline in March output was centered in nondura­ ble consumer goods, durable goods materials, and construction products. The January and February data were revised downward by 0.2 and 0.3 per­ centage point, respectively, because of larger de­ clines than previously reported in production of construction products and in the automotive sup­ plying industries. In March, auto assemblies were at an annual rate of 6.6 million units, the same as in February but over one-third below a year earlier. Output of household appliances declined in March, but this was offset by increased production of some other durable consumer goods. Output of non­ durable consumer goods declined further. Production of business equipment was un­ changed following a small rise in the revised data for February. March changes in output in the equipment industries were small and offsetting. Production of defense and space equipment con­ tinued to show little change. Output of durable goods materials declined with 1968 1970 1972 1974 1968 1970 1972 1! cutbacks in production of steel, consumer durable F.R. indexes, seasonally adjusted. Latest figures: March. Seasonally adjusted Per cent I 967 = 100 changes from— Per cent changes, annual rate Industrial production 1974 1973 1974 Month Year Jan.' Feb." Mar.' ago ago Q3 Q4 Ql Total ........................................................ 125.4 124.5 123.9 - .5 .2 6.1 .9 - 7.6 Products, total ................................................ 122.6 122.1 121.8 - .2 .1 3.9 1.3 - 7.2 Final products ............................................ 120.9 120.5 120.1 - .3 .4 4.3 3.3 - 8.0 Consumer goods ................................... 129.2 128.0 127.3 - .5 -2.7 1.8 1.2 - 13.2 Durable goods ................................. 128.4 126.7 126.6 - .1 -9.8 - 8.8 -4.0 -28.0 Nondurable goods ......................... 129.4 128.6 127.5 - .9 .3 6.6 3.1 - 7.2 Business equipment ........................... 126. 1 127.2 127.3 .1 7.3 1 1.2 8.0 - .4 Intermediate products ............................. 129.3 128.3 127.8 - .4 -1.2 4.0 -4.8 - 6.0 Construction products ....................... 133.1 130.4 128.8 -1.2 -1.5 6.9 -5.6 - 6.8 Materials ............................................................ 129.5 128.2 127.2 - .8 2 8.4 .3 - 8.4 'Revised. "Preliminary. 'Estimated. Digitized for FRASER 323 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 M em ber bank reserves, Federal R eserve Bank credit, and related item s A 7 Federal funds— M ajor reserve city banks A 8 R eserve Bank interest rates A 9 R eserve requirem ents A 10 M aximum interest rates; margin requirem ents A 11 O pen m arket account A 12 Federal R eserve Banks A 13 Bank debits A 14 M oney stock A 15 Bank reserves; bank credit A 16 Com m ercial banks, by classes A 20 W eekly reporting banks A 25 B usiness loans of banks A 26 D em and deposit ow nership A 27 Loan sales by banks A 27 O pen m arket paper A 28 Interest rates A 31 Security m arkets A 32 Stock m arket credit A 33 Savings institutions A 35 Federally sponsored credit agencies A 36 Federal finance A 38 U.S. G overnm ent securities A 41 Security issues A 44 B usiness finance A 45 Real estate credit A 50 C onsum er credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ APRIL 1974 U.S. STATISTICS— Continued A 54 Industrial production A 56 B usiness activity A 56 Construction A 58 Labor force, em ploym ent, and unem ploym ent A 59 C onsum er prices A 59 W holesale prices A 60 National product and incom e A 62 Flow of funds INTERNATIONAL STATISTICS: A 64 U.S. balance of paym ents A 65 Foreign trade A 66 U.S. gold transactions A 67 U.S. reserve assets; position in the IMF A 68 International capital transactions of the United States A 83 Foreign exchange rates A 84 Central bank rates A 85 O pen m arket rates; arbitrage on Treasury bills A 86 Gold reserves of central banks and governm ents A 87 Gold production TABLES PUBLISHED PERIODICALLY: A 88 Num ber of banks and branches in operation on D ecem ber 31, 1973 A 90 Sales, revenue, profits, and dividends of large m anufacturing corporations A 99 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 G uide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par­ 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 variatio (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as a negative figure, or (3) an outflow. direct obligations of the Treasury. “State and local A heavy vertical rule is used in the following in­ govt.” also includes municipalities, special districts, stances: (1) to the right (to the left) of a total when and other political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals be­ that total (totals separated by ordinary rules include cause of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Sales, revenue, profits and divi­ Banks and branches, number, dends of large manufacturing by class and State ............. Apr. 1974 A-88—A-89 corporations ................................ Apr. 1974 A-90 Flow of funds: Semiannually Assets and liabilities: 1961-72 ............... Sept. 1973 A-71.14—A-71.28 Banking offices: 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: Federal Reserve Banks .................Feb. 1974 A-96—A-97 Bank holding companies: Insured commercial banks ............May 1973 A-96—A-97 List, Dec. 31, 1971 ................. June 1972 A-98 Member banks: Banking offices and deposits of Calendar year ..............................May 1973 A-96—A-105 group banks, Dec. 31, 1972 June 1973 A-102—A-104 Income ratios ..............................May 1973 A-106—A-l 11 Operating ratios .........................June 1973 A-96—A-101 Banking and monetary statistics: 1973............................................... Mar. 1974 A-96—A-109 Stock market credit Jan. 1974 A-96—A-97 Statistical R eleases 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 □ APRIL 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 Gold Drawing cur­ u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ assets 3 account stand­ 1 otal out­ chase ing right agree­ ment Averages of daily figures 1939—Dec................................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec................................. 2,219 2,219 5 170 2,404 22’759 3 ’239 1945—Dec................................. 23,708 23,708 381 652 24,744 20,047 4*322 1950—Dec................................. 20,345 20,336 9 142 1,117 21,606 22,879 4 ’ 629 I960—Dec.................................. 27,248 27,170 78 94 1,665 29,060 17*954 5*396 1968—Dec.................................. 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—Dcc.................................. 57,500 57,295 205 1,086 3.235 2,204 64,100 1 o’367 6 841 1970—Dec.................................. 61,688 61,310 378 321 3,570 1,032 66,708 11’105 400 7,145 1971—Dec.................................. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.................................. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—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 1,044 3,385 1,258 86,568 11,567 400 8,705 Feb.................................. 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar.p.............................. 80,686 80,184 502 1,352 1,872 960 84,999 11,567 400 8,767 Week ending— 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 72 988 3,639 1,211 86,670 11,567 400 8,691 23......................... 80,309 80,202 107 1,182 3,208 1,271 86,036 11,567 400 8,723 30......................... 81,088 80,713 375 1,220 2,149 1,329 85,876 11,567 400 8,726 Feb. 6......................... 80,407 80,213 194 998 2,185 1,362 85,037 11,567 400 8,731 13......................... 80,678 80,451 227 1,153 2,268 1,462 85,645 11,567 400 8,747 20......................... 81,535 80,953 582 1,376 2,314 869 86,207 11,567 400 8,750 27......................... 80,577 80,577 1,251 2,409 828 85,136 11,567 400 8,756 Mar. 6......................... 80,203 80,203 912 2,010 878 84,072 11,567 400 8,758 13......................... 80,167 79,767 400 983 2,074 938 84,246 11,567 400 8,762 20p....................... 80,813 80,303 510 1,484 1,872 961 85,245 11,567 400 8,768 27p....................... 80,920 80,302 618 1,713 1,722 1,003 85,502 11,567 400 8,772 End of month 1974—Jan................................... 80,167 8 80,167 961 2,226 1,329 84,751 11,567 400 8,740 Feb.................................. 80,238 9 80,238 720 2,412 958 84,397 11,567 400 8,775 Mar.*>.............................. 81,791 8 80,483 1,308 1,821 1,583 1,078 86,569 11,567 400 8,775 Wednesday 1974—Jan. 2......................... 82,641 8 80,667 1,974 990 5,871 1,202 90,974 11,567 400 8,677 9......................... 79,232 9 77,312 1,920 2,104 4,788 1,444 87,633 11,567 400 8,685 16......................... 81,175 8 80,671 504 1,234 4,402 1,310 88,229 11,567 400 8,720 23......................... 81,251 8 80,501 750 2,666 3,133 1,294 88,419 11,567 400 8,723 30......................... 81,922 8 80,742 1,180 1,600 2,380 1,373 87,425 11,567 400 8,729 Feb. 6......................... 79,719 9 77,830 1,889 856 2,980 1,469 85,093 11,567 400 8,733 13......................... 82,300 8 80,712 1,588 2,500 2,016 1,543 88,530 11,567 400 8,749 20......................... 83,595 8 81,047 2,548 1,061 2,576 790 88,281 11,567 400 8,753 27......................... 80,548 9 80,548 1,189 2,126 847 84,779 11,567 400 8 ,756 Mar. 6 ....................... 80,156 8 80,156 846 3,673 917 85,657 11,567 400 8,760 13......................... 81,726 8 79,696 2,030 1,627 2,509 1,023 87,038 11,567 400 8,764 20p....................... 81,461 8 80.331 1,130 2,162 2,263 998 87,050 11,567 400 8,769 27*....................... 80,176 9 79,781 395 2,034 2,123 1,029 85,492 11,567 400 8,773 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 participa­ liabilities and capital” are shown separately; formerly, they were tion by nonmember institutions in the Federal Reserve System’s program netted together and reported as “Other F.R. accounts.” of credit restraint. 4 Includes industrial loans and acceptances until Aug. 21, 1959, when Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 r C en u c r y ­ T u re r a y s­ with r e F s . e R rv . e B s, a nks Other O F t . h R e . r reserves Period or date in cash F.R. lia­ c t c u io i l r a n ­ ­ h in o g ld s ­ T u re r a y s­ F ei o g r n ­ Other 2,5 co a u c n ­ ts3 c b a i a p l n i i t t d i a e l s 3 W F.R ith . r C e a n n u c d r y ­ Total7 Banks coin6 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 . 1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 . 1941—Dec. 28,452 2,269 625 1,247 493 16,027 16.027 . 1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 . 1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 . 1960—Dec. 50.609 756 360 225 458 -1,105 22,484 4,737 27,221 .1968—Dec. 53.591 656 1,194 146 458 2,192 23,071 4,960 28.031 .1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 .1970—Dec. 61,060 453 1.926 290 728 2,287 25,653 5,676 31,329 .1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 .1972—Dec. 65,072 384 3,598 338 666 2,530 25,848 5,856 31,973 .1973—Mar. 66,068 414 3,471 275 666 2,622 26,281 5,824 32,277 .............Apr. 66,726 413 4,121 330 652 2,721 26,214 6,007 32,393 .............May 67.609 386 2,408 266 698 2,732 25,776 6,086 32.028 .............June 68,382 346 3,375 341 782 2,846 27.156 6,274 33,542 .............July 68,394 344 1,674 300 838 2,877 27,377 6,296 33,785 .............Aug. 68.592 349 792 332 781 2,848 27,509 6,402 34,019 .............Sept. 68,909 622 1,718 266 5 752 2,866 28,457 6,371 34,912 .............Oct. 69,927 340 1,772 522 5 689 2,854 28,260 6,383 34,727 .............Nov. 71,646 323 1,892 406 5 717 2,942 28,352 6,635 35,068 .............Dec. 70,962 349 2,488 427 5 713 2,904 29,396 7,192 36,655 . 1974—Jan. 70,411 342 2,972 293 5 682 2,932 28,574 6,601 35,242 ............Feb. 71,081 334 1,803 311 5 699 2,998 28,506 6,460 35.032 .............Mar.p Week ending- 72,470 331 2,254 331 5 978 2,977 28,808 6,781 35,656 . 1974—Jan. 2 71,855 329 2,344 544 5 699 2,776 29,499 6,730 36,296 ..9 71,214 350 2,170 318 5 706 2,850 29,719 7,916 37,702 .16 70,581 363 2,351 398 5 709 2,959 29,364 7,179 36,610 .23 69,931 359 3,099 494 5 646 3,059 28,981 7,091 36,139 .30 69,935 349 3,084 306 5 689 2,947 28,424 6,984 35,475 .Feb. 6 70,500 343 3,431 256 5 664 2,806 28,360 6,921 35,348 ............13 70,686 334 2,844 327 5 682 2,950 29,102 6,219 35,388 ............20 70,438 344 2,651 260 5 690 3,031 28,445 6,339 34,851 ...........27 70,577 334 1,927 328 5 694 2,942 27,994 6,572 34,633 . Mar. 6 71,193 330 1,794 277 5 714 2,842 27,826 6,855 34,748 ...........13 71,286 337 1,324 300 5 731 2,994 29,009 6,118 35,194 ...........20 p 71,117 335 2,317 307 s 669 3,093 28,404 6,276 34,747 ...........27 p End of month 69,880 344 2,844 392 5 657 3,101 28,241 6,984 35,292 . 1974—Jan. 70,493 332 2,016 542 5 679 3,091 27,989 6,572 34,628 .............Feb. 71,160 342 1,373 366 5 673 3,262 30,135 6,525 36,718 .............Mar.» Wednesday 72,457 330 1,985 309 5 713 2,758 33,067 6,781 39,915 .1974—Jan. 2 71,679 356 2,880 543 5 705 2,777 29,344 6,730 36,141 ........................ 9 71,086 370 1,851 239 5 650 2,948 31,772 7,916 39,755 .......................16 70,380 368 2,898 713 5 693 3,001 31,056 7,179 38,302 .......................23 69,977 370 3,013 485 5 668 3,103 30,505 7,091 37,663 .......................30 70,393 342 3,119 232 5 740 2,750 28,218 6,984 35,269 .Feb. 6 70,810 343 2,987 258 5 700 2,912 31,236 6,921 38,224 ...........13 70,836 335 2,863 342 5 655 3,014 30,955 6,219 37.241 ..........20 70,572 352 2,337 273 5 767 3,057 28,144 6,339 34,550 ...........27 71,060 341 1,528 282 5 687 2,783 29,703 6,572 36,342 . Mar. 6 71,482 336 1,944 274 5 737 2,945 30,051 6,855 36,973 ..........13 71,343 347 2,079 261 5 675 3,022 30,059 6,118 36,244 ..........20* 71,378 338 2,094 355 5 683 3,073 28,312 6,276 34,655 ...........27 p 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning thereafter. Beginning with Jan. 1963, figures are estimated except for 1974 Ql, $67 million Q2, $58 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 included are (beginning with first statement week of quarter): Ql, $279 For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS □ APRIL 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) member banks Large banks2 Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ rowquired sonal ings ings ings ngs 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 1 4 14,536 1,491 334 48 192 14 418 96 46 16,364 1,027 142 125 58 8 5 232 50 29 18,527 756 87 29 19 4 8 100 20 40 22,267 452 454 41 111 15 23 67 228 92 24,915 345 238 18 40 8 13 50 105 80 26,766 455 765 100 230 15 85 90 270 180 27.774 257 1,086 56 259 18 27 6 479 321 28,993 272 321 34 25 7 4 42 264 28 31,164 165 107 25 35 1 8 -35 22 42 31,134 219 1,049 -20 301 13 55 -42 429 264 31,682 287 1,858 72 176 — 6 102 4 857 723 32,126 149 1,721 5 38 146 8 9 -112 828 738 32,277 59 1,786 30 -35 110 6 12 -115 881 783 31,970 59 1,788 77 -61 145 -5 28 -79 904 711 33,199 391 2,050 124 156 135 30 67 -2 855 993 33,540 243 2,144 163 34 109 -8 53 8 755 ,227 33.775 245 1,861 147 -6 115 24 62 40 712 972 34,690 223 1,465 126 11 74 1 54 17 589 748 34,543 182 1.399 84 27 180 -24 28 -20 593 598 34,806 262 1,298 41 -23 74 43 28 28 761 435 36,419 236 1,044 18 65 135 -44 17 -8 549 343 35,053 189 1,186 17 51 87 -19 18 -51 635 446 34,789 243 1,352 33 113 11 64 34 689 486 ^31,723 '336 '1,685 92 242 43 99 '-50 '693 r651 '31,533 '25 1,491 -48 178 -25 113 -112 '622 '578 '31,724 '248 '2,139 56 225 3 104 '-5 '1,076 r734 '31,576 '88 '2,011 -46 28 1 130 '-65 951 r902 34,216 457 1,520 144 89 43 7 41 138 463 973 34.374 420 1,353 131 129 43 1 9 34 536 765 35,099 -80 1,162 120 -157 26 -9 58 -59 520 558 34,711 407 1,915 125 129 185 7 66 61 902 762 34,777 174 1,455 119 -69 72 29 81 55 472 830 34,369 257 1,171 93 101 192 -53 12 -7 384 583 34.725 146 1,521 80 -92 262 61 29 716 482 34.726 369 1,568 85 110 224 2 15 66 623 706 34,372 66 1,287 84 -56 94 -14 28 -31 541 624 34,468 438 1,478 57 167 15 11 29 889 578 34,472 -28 1,303 45 -139 102 -23 11 -37 769 421 34,892 311 1,488 40 137 163 29 + 34 837 488 34,958 472 1,039 35 106 30 81 676 363 35,268 388 1,210 31 80 140 -6 141 24 599 330 36,210 86 776 19 2 271 -47 44 -96 174 287 37.374 328 988 20 59 45 16 27 681 262 36,693 -83 1,182 13 -114 183 -12 -110 655 344 35,880 259 1,220 17 104 20 -57 15 733 467 35,351 124 998 18 -123 14 34 494 504 35,054 294 1,153 15 144 92 -23 56 -34 585 420 35,274 114 1,376 20 -37 257 -63 -42 711 408 34,645 206 1,251 16 70 -17 13 -24 780 458 34,515 118 912 19 -81 123 13 11 1 364 414 34,632 116 983 19 41 11 -8 66 -82 507 399 35,126 68 1,484 34 -86 333 1 15 -29 680 456 34,600 147 1,713 44 -8 32 17 21 -17 1,060 600 Sfov. 15, 1972, includes $450 million of parallel the previous “Reserve city” and “Country” cate tively . Banks are allowed to waive penalties (hence the series are continuous over time). )n with bank adaptation to Regulation J . Beginning 1973, allowable deficiencies Note.—Monthly and weekly data are averages of c /ithin statement week of quarter): Ql, $279 the month or week, respectively. Beginning with Jan. s are 12 million; Q4 million. Beginning 1974 estimated except for weekly averages. Borrowings at F.R. Banks: Based on closing figures. ;nation of banks as reserve city banks Effective Apr. 19, 1963, the Board’s Regulation A, u lendhas been based on size of bank (net ing by Federal Reserve Banks, was revised to assist sma 00 million), as described in the Bulletin to meet the seasonal borrowing needs of their commur hown here as “Large” and “All other” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 a MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less- Net- Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e e ­ s ss 1 r a o B t B w a F o n in . r k R - g s . s F f i b e n u N d a n t n e e e d r t r k s a ­ l S d u e r o f p i r c lu it s r P r e e e q a s r e u o v c r g i f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w n a s l s a ­ y 2 b c o b u P h a f y a u n n s i r k n e e ­ s s g t s o b S e a f a l n l l n i e k n e s g s t d L ea o t l o a e n r s s3 de f r B i a r o n o l o w g e m r s r ­ ­ s4 lo N a e n t s trans. Total—46 banks Feb. 6........... -57 281 14,210 -14,484 93.4 20,196 5,986 5,141 15,055 794 2,293 036 1,657 13........... 58 497 15,936 -16,375 105.3 22,068 6,132 4,745 17,323 1,387 2.513 593 1,921 20........... 39 583 16.046 -16,589 105.2 22,199 6,153 5,145 17,054 1,009 2,260 583 1,678 27........... 96 487 15,858 -16,249 107.1 21,748 5,890 5,332 16,415 558 15,858 2,557 499 Mar. 6........... 25 292 16,140 -16,408 108.5 22,757 6,617 5,863 16,895 754 2.514 589 1,925 13........... 18 344 16,912 -17,239 112.9 22,605 5,693 5,211 17,394 482 2,186 667 1,519 20........... -13 603 15,129 -15,745 100.8 20,675 5,546 5,123 15,552 423 1,811 643 1,168 27........... 31 684 15.047 -15,699 104.1 21,321 6,274 5,371 15,951 904 1,575 682 893 8 in New York City Feb. 6........... -85 3,982 -4,067 65.5 5,099 1,117 1,117 3,982 1,512 327 1,185 13........... 59 92 5,624 -5,656 90.6 6,456 832 832 5,624 1,672 342 1,330 20........... 31 257 5,500 -5,726 88.5 6,729 1,229 1,229 5,500 1,376 332 1,043 27........... 104 5,446 -5,341 87.9 6,352 906 906 5,446 1,504 317 1,187 Mar. 6........... -18 123 5,771 -5,911 97.3 6,850 1,080 1,080 5,771 1,710 304 1,406 13........... 46 11 5,885 -5,850 94.6 6,739 854 854 5,885 1,400 289 1,111 20........... -7 330 3,967 -4,304 67.7 5,166 1,198 1,136 4,030 1,102 321 781 27........... 15 32 4,385 -4,402 73.2 5,725 1,339 1,245 4,480 828 368 460 38 outside New York City Feb. 6........... 29 218 10,228 -10,417 112.2 15,097 4,869 4,075 11,022 794 781 309 472 13........... -1 405 10,313 -10,719 115.2 15,612 5,300 3,913 11,700 1,387 841 250 591 20........... 325 10,546 -10,863 116.9 15,470 4,925 3,916 11,555 1,009 885 250 634 27........... 487 10,412 -10,907 119.9 15,396 4,984 4,426 10,970 558 1,053 182 871 Mar. 6........... 42 170 10,370 -10,497 116.1 15,907 5,537 4,783 11,124 754 804 286 518 13........... -28 333 11,027 -11,388 125.2 15,866 4,839 4,357 11,509 482 786 378 408 20........... -6 274 11,162 -11,441 123.5 15,510 4,348 3,987 11,523 361 709 321 388 27........... 16 652 10,662 -11,298 124.5 15,597 4,935 4,126 11,471 809 747 314 433 5 in City of Chicago Feb. 6........... 4,190 -4,189 268.6 4,981 790 790 4,190 374 374 13........... 56 4,486 -4,524 281.9 5,118 631 631 4,486 376 376 20........... 4,289 -4,284 270.5 4,946 657 657 4,289 358 358 27........... 4,489 -4,485 286.2 5,282 792 792 4,489 438 438 Mar. 6........... 4,410 -4,404 289.7 5,330 920 919 4,411 441 441 13........... 52 4,205 -4,264 273.7 5,061 856 857 4,205 423 423 20........... 4,009 -4,020 250.3 4,846 837 837 4,009 414 414 27........... 3,877 -3,867 247.4 4,691 814 814 3,877 457 457 33 others Feb. 6........... 27 218 6,038 -6,229 80.7 10,116 4,078 3,284 6,832 794 407 309 97 13........... -19 350 5,826 -6,195 80.4 10,495 4,668 3,281 7,213 1,387 465 250 215 20........... 3 325 6,257 -6,579 85.3 10,524 4,268 3,259 7,266 1,009 527 250 276 27........... -13 487 5,923 -6,422 85.3 10,114 4,191 3,634 6,480 558 615 182 434 Mar. 6........... 36 170 5,959 -6,093 81.0 10,577 4,618 3,864 6,713 754 363 286 77 13............ -21 280 6,822 -7,124 94.5 10,805 3,983 3,501 7,304 482 362 378 -16 20............ 6 274 7,153 -7,421 96.9 10,664 3,510 3,150 7,514 361 295 321 -26 27............ 7 652 6,785 7,430 98.9 10,906 4,121 3,312 7,594 809 289 314 -25 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 a APRIL 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b) 2 last par. Sec. 13 3 Federal Reserve Bank R M a 1 a t 9 r e 7 . 4 o 3 n 1, Ef d fe a c t t e ive Pre ra v t i e ous M Ra 1 a t 9 r e . 7 4 o 31 n , Ef d fe a c t t e ive Pre r v at i e ous M Ra 1 a t 9 r e . 7 4 3 o 1 n , Eff d e a c t t e ive Pre r v at io e us Boston............ m Aug. 23, 1973 Aug. 23, 1973 71/2 4 91/2 Aug. 23, 1973 New York.... m Aug. 14, 1973 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 Philadelphia. . m Aug. 14, 1973 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 Cleveland.... m Aug. 14, 1973 Aug. 14, 1973 7*4 91/2 Aug. 14, 1973 Richmond.... m Aug. 14, 1973 Aug. 14, 1973 71/2 4 91/2 Aug. 14, 1973 Atlanta........... m Aug. 16, 1973 Aug. 16, 1973 71/2 4 91/2 Aug. 16, 1973 Chicago.......... m Aug. 14, 1973 Aug. 14, 1973 m 4 9i/2 Aug. 14, 1973 St. Louis........ m Aug. 14, 1973 Aug. 14, 1973 71/2 4 91/2 Aug. 14, 1973 Minneapolis.. m Aug. 14, 1973 Aug. 14, 1973 71/2 4 91/2 Aug. 14, 1973 Kansas City.. 71/2 Aug. 14, 1973 Aug. 14, 1973 m 4 91/2 Aug. 14 1973 Dallas............. 71/2 Aug. 14, 1973 Aug. 14, 1973 71/2 4 91/2 Aug. 14, 1973 San Francisco 71/2 Aug. 14, 1973 Aug. 14, 1973 71/2 91/2 Aug. 14, 1973 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers’ acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 7 Vi percent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 Wi I1/2 1959—Mar. 1 6 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 V 3 i-3 3 3 1970—Nov. 1 1 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 3 3 4 4 - - 6 6 5 6 34 1955—Apr. 1 1 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 V /2 i - -1 I 3 3 / /4 4 I 1 V *4 i J M un ay e 2 1 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 - V 3 i 1/2 3 31 V /2 i Dec. 1 I 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 5 2 3 -5 4 3/4 5 5 3 3/ 4 4 May 2............. l3/4 iy4 Sept. 11..................... 3 Vi-4 4 51/2-53/4 5Vi Aug. 4............. 134-214 134 18..................... 4 4 11..................... 5Vi 51/2 1956— S A A N e u o p p g v r t . . . . 2 2 2 3 1 1 1 1 9 5 3 0 4 1 2 3 8 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 2 2 1 1 1 3 3 34 / / / 2 4 4 2 3 2 4 - 1 - - - - V - - 2 / 3 3 3 4 2 2 2 i 1 1 1 1 / / / 4 4 4 2 2 2 2 2 2 2 2 2 3 3 3 1 1 3 1 1 / / / 4 4 4 2 2 4 1 1 1 9 9 9 6 6 6 4 3 0 — — — J S J N A u u e o u l n p y g v e t . . . 2 2 3 1 1 1 1 9 4 0 4 6 3 0 7 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 ! 1 3 / / 1 4 2 3 3 3 2 - - / - V V - 2 3 3 4 4 i i - V i 4 /2 i 4 4 4 3 3 3 3 3 3 1 1 1 V / / / 2 2 2 i 1971— J N J F u a e o n l b y v . . . 2 2 2 1 1 1 1 1 1 8 2 9 5 9 3 6 9 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 5 5 1 3 / 4 4 4 5 5 5 4 4 3 V 3 - - 3 - - / 5 5 5 4 5 4 4 4 1 1 1 - - / 5 5 4 4 2 5 5 5 4 5 5 5 5 5 5 1 1 3 1 / / 4 4 4 4 1957—Aug. 2 9 . 3 .. .......... 3 31 - / 3 2 i /2 3 31/2 1965—Dec. 1 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4V -4 i 1/2 4 4 1 1 / /2 2 Dec. 1 1 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 1 3 V / 4 2 i- - 4 43 3 4 4 4 4 4 1 3 3 / 4 4 2 Nov. 15............. 3 -31/2 3 1967—Apr. 7..................... 4 -4i/2 4Vi 41/2 1958—J D a e n c . . 2 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 23/ 3 4-3 3 3 Nov. 2 2 1 0 4 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4V -4 i 1/2 4 41 1 / / 2 2 1973—J M F a e n a b . r . . 2 1 2 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 - V 5 i 1/2 5 5 5 1 1 / / 2 2 Mar. 2 7 4 ... .......... 2 2 3 1 / 4 4 - - 3 3 2 21 3 / 4 4 1968—Mar. 2 1 2 5. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 4V 5 i-5 4 5 1/2 A M p a r y . 2 4 3. . . .. .. . . . . .. .. .. .. . . .. . . .. .. .. . . . . .. .. .. . 51/ 5 2 3 - 4 534 5 5 3 V 4 i Apr. 2 1 1 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 l 1 % /4 2 - 1 -2 2 4 3 % 4 2 2 1 1 1 % / / 4 4 A Au pr z . . 2 1 1 6 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 i/ 5 4 1 - - 5 / 5 2 1 V /2 i 5 5 5 1 1 1 / / / 2 2 2 June 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 3/ 6 4 - -6 61/2 6 6 61/2 May 9........... 1V4 1% 30..................... 51/4 51/4 6Vi 6Vi Aug. 15........... 13/4-2 l3/4 Dec. 18..................... 5i/4-5i/2 51/2 July 2..................... 7 7 Sept. 2 1 3 2. . . . . . . . . . . . . . . . . . . . . . 13 2 4-2 2 2 20..................... 51/2 51/2 Aug. 2 1 3 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 71 -7 /2 1/2 7 71 V /2 i Oct. 24........... 2 -21/2 2 1969—Apr. 4..................... 51/2-6 6 Nov. 7........... 21/2 21/2 8..................... 6 6 In effect Mar. 31, 1974. . .. 7Vi 71/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 24 Time 3 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav­ 0-2 2-10 10-100100-400 Over Sav­ Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 0-5 5 0-5 5 6 In effect 1972—Nov. 9.. 10 12 7 161/2 17% Jan. 1, 1963. 161/z Nov. 16. 13 1966—July 14, 21 . 1973—July 19.. IOI/2 121/2 131/2 18 Sept. 8, 15. 1967—Mar. 2.... 31/2 31/2 In effect Mar. 16.... 3 3 Mar. 31, 1974 10% 121/2 13% 18 1968—Jan. 11, 18. 161/z 17 12 121/2 1969—Apr. 17.... 17 171/2 121/2 13 1970—Oct. 1......... Present legal requirement: Minimum Maximum Net demand deposits, reserve city banks 10 22 Net demand deposits, other banks 7 14 Time deposits............................................. 3 10 1 When two dates are shown, the first applies to the change at reserve city. Cities in which there are F.R. Banks or branches are also city banks and the second to the change at country banks. For changes reserve cities. Any banks having net demand deposits of $400 million or prior to 1963 see Board’s Annual Reports. less are considered to have the character of business of banks outside of 2 (a) Demand deposits subject to reserve requirements are gross de­ reserve cities and are permitted to maintain reserves at ratios set for banks mand deposits minus cash items in process of collection and demand not in reserve cities. For details, see Regulation D and appropriate sup­ balances due from domestic banks. plements and amendments. (b) Requirement schedules are graduated, and each deposit interval 5 Reserve city banks. applies to that part of the deposits of each bank. 6 Except as noted below, effective Dec. 27, 1973, member banks are (c) Since Oct. 16, 1969, member banks have been required under subject to an 8 per cent marginal reserve requirement against increases Regulation M to maintain reserves against foreign branch deposits in the aggregate of (a) outstanding time deposits of $100,000 or more, computed on the basis of net balances due from domestic offices to their (b) outstanding funds obtained by the bank through issuance by a bank’s foreign branches and against foreign branch loans to U.S. residents. affiliate of obligations subject to the existing reserve requirements on time Regulation D imposes a similar reserve requirement on borrowings from deposits, and (c) funds from sales of finance bills. The 8 per cent require­ foreign banks by domestic offices of a member bank. The reserve per­ ment applies to balances above a specified base, but is not applicable to centage applicable to each of these classifications is 8 per cent. The require­ banks that have obligations of these types aggregating less than $10 million. ment was 10 per cent originally, was increased to 20 per cent on Jan. For the period June 21 to Aug. 30, 1973, (a) included only single-maturity 7, 1971, and was reduced to the current 8 per cent effective June 21, 1973. time deposits. Previous requirements have been: 8 per cent for (a) and (b) Initially certain base amounts were exempted in the computation of the from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973; requirements, but effective Mar. 14, 1974, the last of these reserve-free and 11 per cent from Sept. 20 to Dec. 26, 1973. For details, see Regulation bases were eliminated. For details, see Regulations D and M. D and appropriate supplements and amendments. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation 7 The 16% per cent requirement applied for one week, only to former club accounts became subject to same requirements as savings deposits. reserve city banks. For other banks, the 13 per cent requirement was For other notes see 2(b) and 2(c) above. continued in this deposit interval. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ 8 See preceding columns for earliest effective date of this rate. serve cities, and on the same date requirements for reserves against net demand deposits of member banks were restructured to provide that each member bank will maintain reserves related to the size of its net demand Note.—All required reserves were held on deposit with F.R. Banks deposits. The new reserve city designations are as follows: A bank having June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member net demand deposits of more than $400 million is considered to have the banks were allowed to count part of their currency and coin as reserves; character of business of a reserve city bank, and the presence of the head effective Nov. 24, 1960, they were allowed to count all as reserves. For office of such a bank constitutes designation of that place as a reserve 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 □ APRIL 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 4 4 4% Savings deposits....................................................... 5 5 Other time deposits:1 Other time deposits (multiple- and single­ Multiple maturity:2 maturity): 30—89 days........................ 4 4 4 4% Less than $100,000: 90 days to 1 year............. I f 5 30—89 days................................................... 5 5 1 year to 2 years............. ^ 5 5 5 51/2 90 days to 1 year........................................ 5% 2 years or more............... J I 534 1 year to 2% years..................................... 6 r/z Single-maturity: 2 Yi years or more....................................... 6Vi 6% Less than $100,000: 4 years or more in minimum denom­ 30 days to 1 year............. ) ( 5 ination of $1,000................................ (4) 71/4 1 year to 2 years............. | 51/2 5 5 51/2 $100,000 or more................................................ (3) (3) 2 years and over............... I 534 $100,000 or more: 30—59 days........................ ) ( 51/2 (3) 60-89 days........................ 1 53/4 (3) 9 1 1 0 8 y — 0 e 1 a d 7 r a 9 y o s d r a t m o y s o 1 . . r . e y .. . . e . . . . a . . . . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | y 51/2 5% i I } 6 61/4 / ( ( (3 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 61/2 per cent ceiling that applies to time deposits maturing in 2% years that are payable after written notice of withdrawal. or more. 3 Maximum rates on all single-maturity time deposits in denominations Effective Nov. 1, 1973, a ceiling rate of ll/x 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 V V4 2 p pe e r r c c e e n n t t l j 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 71/2 per cent] rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Rates on multiple-maturity time deposits in demonination of $100,000 Feb. 1, 1936, maximum rates that may be paid by nonmember insured or more were suspended July 16, 1973, when the distinction between commercial banks, as established by the FDIC, have been the same as single- and multiple-maturity deposits was eliminated. those in effect for member banks. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) T U G T U G 1937--Nov. 1 1945—Feb. 4................... 40 50 1945--Feb. 5 July 4................... 50 50 July 5 1946—Jan. 20................... 75 75 1946--Jan. 21 I947—Jan. 31................... 100 100 1947- -Feb. 1 I949—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 I960—July 27................... 90 90 1960--July 28 1962—July 9................... 70 70 1962--July 10 1963—Nov. 5................... 50 50 1963--Nov. 6 1968—Mar. 10................... 70 j 70 > 1968—Mar. 11 June 7................... 70 50 70 June 8 1970—May 5................... 80 60 80 1970—May 6 1971—Dec. 3................... 65 50 65 1971—Dec. 6 1972—Nov. 22.................. 55 50 55 1972—Nov. 24 1974—Jan. 2..................... 65 50 65 1. 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

APRIL 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 Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or 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 chases tions 1970. 11,074 5,214 2,160 99 -3,483 5,430 249 -1,845 93 -102 1971. 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 1972. 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,£ 3,405 '1,396 '—140 579 -2,028 500 895 129 87 1973—Feb... 1,558 695 200 25 -1,408 61 3,476 79 -2,068 32 Mar.. 1,569 260 200 Apr.., 1,377 51 * i 27 'l9 ”ii May., 717 623 600 -3,829 -1,316 '5,105 '40 June.. 1,047 218 163 123 78 -78 July.. 1,640 495 60 27 Aug.. 655 945 456 351 '4,361 -4,812 100 Sept.. 480 401 564 836 -813 -23 Oct... 2,117 153 Nov.. 583 489 1,101 1,515 125 680 331 -2,220 35 ‘ ‘25 Dec.. 1.919 70 10 34 116 -34 35 1974—Jan... 1,340 335 1,402 77 Feb.. 768 391 410 687 -922 200 35 Matched Repurchase Federal agency obligations Bankers’ Total outright 1 sale-purchase agreements Net acceptances, transactions (U.S. Govt, change net (Treasury bills) securities) in U.S. Outright Repur­ Period Govt, chase Net securi­ agree­ change ; Gross Gross Gross ties Gross Sales or ments, Repur­ pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ chase chases sales tions sales chases chases sales chases tions right agree­ ments 1970............... 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 1971............... 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 1972............... 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 1973............... '18,121 4,880 '4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1973—Feb.. . 1,754 695 200 4,521 4,521 2,774 3,034 599 18 -28 -3 95 644 Mar... 1,569 260 200 1,941 1,941 6,024 5,478 1,656 14 61 -1 -66 1,636 Apr... 1,584 51 2,101 2,101 5,664 5,978 1,218 19 -65 7 -36 1,106 May.. 717 623 600 1,105 1,105 7,379 8,240 -1,367 21 -29 -1 -52 -1,470 June.. 1,274 218 163 4,630 4,630 5,621 5,621 893 229 19 -17 1,085 July... 1,666 495 60 3,405 3,405 7,651 6,686 2,076 174 6 106 -12 78 2,416 Aug... 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 20 157 -7 -41 -915 Sept... 1,316 401 1,400 6,981 6,981 3,309 2,752 72 30 -95 -9 69 7 Oct.. . 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 -46 2,440 Nov... 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 -1,307 Dec... 2,145 70 10 3,435 3,435 9,523 10,202 1,387 212 84 -126 23 -26 1,386 1974—Jan.. . 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 -328 Feb... 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 1 72 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 hold­ directly 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 hi s l 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 an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1969—Dec.............. 1,967 1,575 1 * 199 60 125 1 3 4 1970—Dec.............. 257 154 * * 98 1 * 4 1971—Dec............... 18 3 3 * 2 1 8 1972—Dec.............. 192 * * * 164 1 20 6 1973—jan................ 92 * * * 67 1 20 3 Feb............... 4 * * * * 1 3 Mar.............. 4 * * * * 1 3 Apr............... 4 * * * * 1 3 M ay............. 4 * * * * 1 3 June............. 4 * * * * 1 3 July.............. 4 * * * * 1 3 Aug.............. 5 * * * 1 1 3 Sept.............. 4 * * * * 1 3 Oct............... 4 * * * 1 3 Nov.............. 4 * * * 1 3 Dec.............. 4 * * * 1 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ APRIL 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 Mar. 27 Mar. 20 Mar. 13 Mar. 6 Feb. 27 Mar. 31 Feb. 28 Mar. 31 Assets Gold certificate account.................................... 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 Cash............................................................. 272 282 290 298 301 280 307 358 Loans: Member bank borrowings............... 2,034 2,162 1,627 846 1,189 1,821 720 2,048 Other..................................................... Acceptances: Bought outright.................................. 74 67 67 69 73 Held under repurchase agreements. 92 86 223 Federal agency obligations: Bought outright................................... 2,123 1,953 1,953 1,997 2,001 2,123 2,001 1,280 Held under repurchase agreements. 24 36 128 185 94 U.S. Govt, securities: Bought outright: Bills.................................... 35,698 36,418 35,973 36,389 36,777 36,400 36,467 32,761 Certificates—Special. Other.. Notes................................. 38,956 38,956 38,796 38,796 38,796 38,956 38,796 36,839 Bonds......................... 3,004 3,004 2,974 2,974 2,974 3,004 2,974 3,501 Total bought outright....................... 1,2 77,658 78,378 i 77,743 i 78,159 1,2 78,547 i 78,360 i 78,237 i 73,101 Held under repurchase agreements. 371 1,094 1,902 1,123 1,175 Total U.S. Govt, securities. 78,029 79,472 79,645 78,159 78,547 79,483 78,237 74,276 Total loans and securities..................... 82,340 83,789 83,506 81,069 81,806 83,908 81,027 77,863 Cash items in process of collection. . . *7,342 *8,000 8,260 9,611 7,451 6,074 7,333 6,637 Bank premises......................................... 228 228 227 227 225 227 226 197 Other assets: Denominated in foreign currencies. 6 15 15 15 22 6 32 4 All other............................................... 795 755 781 673 600 845 700 714 Total assets. *102,843 *104,929 104,939 103,753 102,265 103,200 101,485 96,476 Liabilities F.R. notes............................................... 63,107 63,096 63,237 62,832 62,362 62,900 62,247 57,419 Deposits: Member bank reserves.................... *28,312 *30,059 30,051 29,703 28,144 30,135 27,989 27,713 U.S. Treasury—General account. 2,094 2,079 1,944 1,528 2,337 1,373 2,016 2,881 Foreign............................................... 355 261 274 282 273 366 542 327 Other: All other3...................................... 683 675 687 673 679 696 Total deposits. *31,444 *33,074 33,006 32,200 31,521 32,547 31,226 31,617 Deferred availability cash items............ 5,219 5,737 5,751 5,938 5,325 4,491 4,921 4,792 Other liabilities and accrued dividends. 987 1,001 1,029 972 966 1,118 988 709 Total liabilities. *100,757 *102,908 103,023 101,942 100,174 101,056 99,382 94,537 Capital accounts Capital paid in................................................................... 872 870 871 864 862 872 862 807 Surplus................................................................................. 844 844 844 844 844 844 844 793 Other capital accounts..................................................... 370 307 201 103 385 428 397 339 Total liabilities and capital accounts............................ *102,843 *104,929 104,939 103,753 102,265 103,200 101,485 96,476 Contingent liability on acceptances purchased for foreign correspondents................................................. 682 673 657 596 595 684 592 282 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 26,117 26,270 25,825 25,520 25,000 26,635 25,233 31,529 Federal Reserve Notes—Federal Reserve Agents’ Accounts 67,062 67,130 67,067 66,884 66,933 67,218 66,921 61,615 Collateral held against notes outstanding: Gold certificate account................................................. 2,305 2,305 2,305 2,255 2,255 2,305 2,255 2,291 U.S. Govt, securities....................................................... 66,820 66,800 66,800 66,600 66,600 66,840 66,600 61,331 69,125 69,105 69,105 68,855 68,855 69,145 68,855 63,622 1 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

APRIL 1974 □ FEDERAL RESERVE BANKS; BANK DEBITS A 13 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 Mar. 27 Mar. 20 Mar. 13 Mar. 6 Feb. 27 Mar. 31 Feb. 28 Mar. 31 2,034 2,162 1,628 844 1,195 1,821 721 2,049 Within 15 days................................................................. 2,012 2,140 1,613 832 1,185 1,799 712 2,018 16 days to 90 days........................................................... 22 22 15 12 10 22 9 31 130 166 153 67 69 296 69 165 83 106 96 21 29 253 29 102 47 60 57 46 40 43 40 63 91 days to 1 year............................................................. U.S. Government securities—Total................................. 78,029 79,472 79,645 78,159 78,547 79,483 78,237 74,276 5,465 6,194 6,976 5,911 5,730 5,298 4,166 5,013 16 days to 90 days........................................................... 18,951 19,555 19,425 19,406 19,026 18,951 18,958 22,524 91 days to 1 year............................................................. 21,611 21,721 21,432 2i;030 21,979 23,232 23,301 13,021 Over 1 year to 5 years.................................................... 22,344 22,344 22,235 22:235 22,235 22,344 22,235 28,021 Over 5 years to 10 years................................................. 7,836 7,836 7,780 7,780 7,780 7,836 7,780 4,119 Over 10 years.................................................................... 1,822 1,822 1,797 1,797 1,797 1,822 1,797 1,578 2,147 1,989 2,081 1.997 2,001 2,308 2,001 1,374 Within 15 days1............................................................... 24 36 128 44 48 185 48 102 16 days to 90 days........................................................... 135 135 135 63 63 135 63 52 91 days to 1 year............................................................. 275 274 274 248 248 275 248 214 Over 1 year to 5 years.................................................... 821 768 768 846 846 821 846 568 Over 5 years to 10 years................................................ 608 537 537 557 557 608 557 247 Over 10 years.................................................................... 284 239 239 239 239 284 239 191 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 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1973—Feb.................................. 16,074.6 7,227.0 3,809.9 8,847.5 5,037.6 97.9 238.0 103.3 66.1 52.0 Mar................................. 15,959.2 6,844.8 3,873.4 9,114.4 5,241.0 97.1 228.3 104.5 67.8 53.9 Apr.................................. 15,971.2 6,927.5 3,857.5 9,043.8 5,186.2 95.7 228.9 101.9 66.2 52.5 May................................ 16,452.0 7,177.0 3,918.3 9,275.1 5,356.7 97.8 235.1 103.7 67.4 53.6 June................................ 16,638.8 7,224.6 4,050.2 9,414.3 5,364.1 99.9 245.0 107.6 68.7 54.0 July................................. 17,224.5 7,381.4 4,282.4 9,843.1 5,560.8 102.6 247.5 111.7 71.3 55.8 Aug................................. 17,888.9 7,744.6 4,318.2 10,144.3 5,826.0 106.2 252.5 113.6 73.6 58.4 Sept................................. 17,918.7 8,025.3 4,195.7 9,893.3 5,697.6 107.4 266.4 111.6 72.4 57.5 Oct................................... 18,394.4 8,137.2 4,418.0 10,257.2 5,839.1 109.5 265.3 116.4 74.7 58.8 Nov................................. 19,049.5 8,437.9 4,519.8 10,611.6 6,091.7 113.2 274.9 118.6 77.1 61.2 Dec.................................. 18,641.3 8,097.7 4,462.8 10,543.6 6,080.8 110.2 269.8 115.0 75.8 60.6 1974—Jan.'............................... 18,816.9 8,081.0 4,517.1 10,736.0 6,218.8 111.5 270.3 116.5 77.3 62.2 Feb.................................. 19,812.5 8,896.2 4,585.0 10,916.3 6,331.3 118.0 294.2 120.2 79.3 63.6 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

A 14 MONEY STOCK □ APRIL 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 Mi Mi M2 Mz Composition of measures is described in the Note below. 1970—De c 221.2 425.2 641.2 227.6 429.9 645.5 1971—De c 235.2 473.0 726.9 241.9 477.9 731.2 1972—De c 255.7 525.5 822.4 263.0 530.6 826.6 1973—Ap r 259.4 538.3 847.7 260.9 542.3 852.6 May........ 262.4 543.6 855.0 257.9 541.7 853.6 June.......... 265.5 549.4 863.5 263.6 548.8 864.0 July......... 266.4 552.0 867.9 265.7 551.0 868.0 Aug......... 266.2 554.9 870.9 262.9 551.1 867.0 Sept........ 265.4 556.6 873.2 263.9 554.2 870.4 Oct.......... 266.5 561.6 879.8 266.0 559.9 877.5 Nov........ 268.8 566.7 886.9 270.5 565.1 884.0 Dec.......... 270.4 570.7 893.2 278.1 575.8 897.5 1974_ jan.......... 269.6 573.7 898.4 276.8 579.7 904.6 Feb.......... 272.5 580.1 906.8 269.7 577.6 904.8 Mar.*. .. 274.9 584.3 913.4 272.2 583.8 914.3 Week ending— 1974—Mar. 6. 275.7 584.7 272.8 583.0 13. 274.8 583.9 272.4 583.6 20* 274.4 583.9 272.0 583.7 27* 274.3 583.9 270.0 582.3 Apr. 3* 276.0 586.1 275.5 588.7 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 Mi: M2 plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see “Revision of the Money Stock Meas­ commercial banks. ures and Member Bank Deposits” on pp. 81-95 of the Feb. 1974 Bulletin. M2: 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 Commercial banks Commercial banks U.S. Month Time and savings Non­ Time and savings Non­ Govt. or deposits bank Demand deposits deposits bank de­ week Cur­ De­ thrift Cur­ thrift pos­ ren­ mand insti­ ren­ insti­ its3 cy de­ tu­ cy Do- tu­ pos­ tions2 mes- tions2 its CD’s1 Total Mem­ tic- Other Total ber nonmember 1970—De c 49.1 172.2 25.3 203.9 229.2 21b. 1 50.0 177.7 136.9 39.2 25.8 202.3 228.1 215.6 7.3 1971—De c 52.6 182.6 33.0 237.9 270.9 253.9 53.5 188.4 142.6 44.1 33.8 236.0 269.8 253.3 6.9 1972—De c 56.9 198.7 43.4 269.9 313.3 296.9 57.9 205.1 152.4 51.4 44.3 267.6 311.8 296.0 7.4 1973—Ap r 58.6 200.8 58.4 278.9 337.3 309.4 58.3 202.6 148.9 51.6 56. 1 281.4 337.6 310.3 8.3 May......... 58.9 203.4 61.3 281.3 342.6 311.4 58.7 199.2 145.8 51.1 58.8 283.8 342.6 312.0 8.7 June......... 59.4 206.2 62.0 283.8 345.8 314.2 59.4 204.1 149.1 52.4 59.3 285.2 344.5 315.3 7.1 July........... 59.5 207.0 63.9 285.6 349.4 315.9 59.9 205.7 149.7 53.3 62.3 285.3 347.6 317.0 6.5 Aug........... 59.8 206.4 66.3 288.7 355.0 315.9 60.0 202.9 147.8 52.7 68.4 288.2 356.6 315.9 4.1 Sept........... 60.2 205.2 66.7 291.2 357.9 316.6 60.1 203.8 148.2 53.3 68.8 290.3 359.2 316.1 5.3 Oct............ 60.4 206.1 63.8 295. 1 358.9 318.3 60.4 205.6 149.7 53.7 66.3 293.9 360.2 317.6 6.0 Nov.......... 60.9 207.9 62.0 297.8 359.9 320.2 61.4 209.1 151.8 54.9 64.1 294.6 358.7 318.9 4.3 Dec........... 61.6 208.8 62.8 300.3 363. 1 322.5 62.6 215.5 156.9 56.2 64. 1 297.7 361.8 321.7 6.3 1974—Ja...............n 61.8 207.8 65.5 304.1 369.6 324.7 61.5 215.3 156.3 56.6 66.1 302.9 368.9 325.0 8.0 Feb........... 62.6 210.0 66.6 307.6 374.2 326.7 61.8 207.9 151.1 54.5 65.9 307.9 373.8 327.2 6.5 Mar.*.... 63.2 211.7 67.7 309.4 377.1 329.1 62.6 209.5 152.4 54.8 67.0 311.6 378.6 330.6 6.3 Week ending— 1974—Mar. 6.. 63.0 212.7 65.9 308.9 374.9 62.4 210.3 153.1 54.8 65.9 310.3 376.1 6.6 13.. 63.2 211.6 66.8 309. 1 375.9 62.9 209.5 152. 1 55.2 66.5 311.2 377.7 4.2 20*. 63.2 211.3 67.1 309.5 376.6 62.6 209.4 152.2 54.8 66.3 311.7 378.0 7.1 27 *. 63.3 211.0 68.8 309.6 378.4 62.3 207.7 151.2 54.2 67.8 312.2 380.0 6.8 Apr. 3*. 63.4 212.6 71.2 310.1 381.3 62.8 212.7 155.0 55.3 69.3 313.3 382.5 7.1 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

APRIL 1974 □ BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period N on- Total bor­ Re­ Avail­ Demand Demand rowed quired able2 Time Time Total and U.S. Total and U.S. S.A. N.S.A. savings Private Govt. savings Private Govt. 1970—Dec.. .. 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___ 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___ 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 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 32.80 446.8 283.2 157.4 6.2 453.0 283.1 r163.4 6.5 454.3 460.5 Feb r35.11 33.92 34.92 r32.79 r447.1 286.1 r157.9 3.0 r447.1 285.7 '•156.3 5.1 r454.8 r454.8 Mar.*.. 34.95 33.64 33.64 33.12 450.7 287.9 159.0 3.7 450.7 288.7 157.1 4.9 459.3 459.3 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in­ 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as “the ad­ Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy.” Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. Note.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of the Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments1 Total1 loans Plus Treas­ Other4 ments1 Total1 loans Plus Treas­ Other4 sold2 Total loans ury sold2 Total loans ury sold2 sold2 1968—Dec. 31___ 390.2 258.2 95.9 60.7 71.3 400.4 264.4 98.4 64.5 71.5 1969—Dec. 315.... 401.7 279.1 283.0 105.7 108.3 51.5 71.1 412.1 286.1 290.0 108.4 111.0 54.7 71.3 1970—Dec. 31___ 435.5 291.7 294.7 110.0 112.1 57.9 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31___ 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—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—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 Feb. 27*.... 641.0 454.7 459.7 159.7 162.4 55.7 130.6 635.8 449.1 454.1 158.1 160.8 56.9 129.7 Mar. 27*___ 650.3 464.0 468.9 165.3 168.1 55.7 130.6 646.8 458.9 463.8 165.1 167.9 56.7 131.2 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. 1959— duced 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 16 COMMERCIAL BANKS □ APRIL 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets 3 bilities row­ of insurance and Total3 Demand ings banks U.S. capital De­ Treas­ Other ac­ mand Time Times ury counts4 U.S. Govt. Other AH commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26.551 79,104 71,283 10.^82 44,349 15,952 23 7,173 14,278 1947—Dec. 31 6. 116,2°.4 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,3431 94,367 35,360 65 10,059 14,181 1960—Dec. 31.. 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,986 1970—Dec. 31... 461,194 313,334 61,742 86,118 93,643 576,242 480.940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31... 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211! 13,783 1972—Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Mar. 28.. . 608,320 429,400 61,180 740 90,980 729,250 596.690 25,960 4,530 11,390 220,290 334,520 45.420 53,330 13,974 Apr. 25.. . 616,480 437,520 60,400 560 91,580 738,740 604,570 26.220 4 10,910 225,170 337,390 45,830 53,750 13,998 May 30.. 622,340 444,120 58,330 890 95,410 749.470 611.920 27;770 5,250 5,810 229,050 344,040 47,360 54.240 14,018 June 30.. 635,756 456.780 57,877 ,099103,608 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 55,740 14,046 July 25*.. 634,220 456,480 56,360 ,380 95,880 761,870 618.670 28,710 5,830 6,750 228,310 349.070 52,580 54,900 14,067 Aup. 29*.. 640,100 462,630 54,720 750 92,010 765,200 618,440 26,500 6,620 3,460 224,450 357,410 53,150 55,310 14,081 Sept. 26*., 645,150 466.420 54,800 930100,030 778,070 628,700 27.720 7,190 8,210 227,880 357,700 56,180 55,570 14,100 Oct. 31*.. 652,330 470.780 55,640125 910,111,720 798,550 643,790 32,830 6,820 5,680 240,390 358.070 60,220 56,440 14,132 Nov. 28*., 656,700 474,300 57,300125 100104,140 794.420 635.940 30,130 7,010 4,350 237,650 356,800 62,400 56,640 14,161 Dec. 26*. 675,820 490,680 58,180.126 960 95,650 806.420 650,290 25.720 6,850 7,950 249,520 360,250 60,290 56,920^ 14,169 1974—Jan. 30*.. 670,410 483.420 58,160128,830103,410 807.470 648,500 31,630 6,400 9,430 232,540 368,500 65,210 58.240 14.178 Feb. 27*.. 675,950 489,290 56,950129,710102,560 813,130 647.920 31,450 5,990 6,570 232,040 371,870 67.420 58,540' 14.178 Mar. 27*. . Members of F.R. System: 1941—Dec. 31 . 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31. 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1 ,176 80,609 28,340 54 8,464 6,923 I960—Dec. 31. 165,916 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 31. 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29.142 1,733 6,460 168,032 179,229 18,578 34,100 5,766 1971—Dec. 31. 405,087 277,717 47,633 79,738 86,189 511 ,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31. 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5.704 1973—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 41,533 5,683 Apr. 25. 476,739 346.865 42,517 87,357 78,219 580,412 468,385 24,744 4,242 9.167 173,671 256,561 43,076 41.806 5,695 May 30. 480,394 351,223 41,030 88,141 81,169 587,722 473,623 26,139 4,621 4,511 176,766 261,586 44,214 42,096 5,703 June 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 43,098 5.705 July 25. 489,240 360,813 39,331 89.096 82,091 597,607 478,417 27,121 5,121 5,423 175,351 265,401 48,761 42,539 5.706 Aug. 29. 494,200 365,951 38,233 90,016 78,475 600,202 478,273 24,972 5,911 2,701 172,082 272,607 49,283 42.807 5,712 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 42,972 5,717 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 43,618 5,722 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 43,759 5,735 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 43,983 5,734 1974—Jan. 30. 518,575 381,379 41,700 95,496 88,962 635,223 501,269 30,003 5,690 7,621 178,457 279,498 61,586 44,874 5.743 Feb. 27. 522,817 385,880 40,922 96,015 87,758 639,173 500,113 29,753 5,273 5,084 178,732 281,271 63,862 45,108 5.743 Mar. 27. 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 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 1960—Dec. 31. 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970-Dec. 317 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,r~ 208,037 231,132 19,149 42,427 13,502 1971-Dec. 31. 514,097 345,386 64,691 104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—Dec. 31. 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Mar. 28. 606,852 428,235 178,617 89,402 724,105 594,805 25,721 4,339 11,322 219,601 333,821 43,921 53,529 13,766 June 30. 630,379 452,587 57,532120,261 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 Oct. 17r 647,971 468,000 52,497 127,473101,205 780,190 633,180 28,443 6,571 5,821 234,549 257.798 55,906 56,727 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 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 1960—Dec. 31. 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 317 271,760 187,554 34,203 50,004 56,028 230,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,r'~ 4,620 1971—Dec. 31. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—Mar. 28. 354,999 254,447 100,552 53,789 426,035 345,341 14,134 2,285 6,866 127,001 195,056 30,336 30,924 4,607 June 30. 369,856 270,188 31,6511 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. 17' 377,246 277,015 27,641 72,590 63,573 460,164 268,351 15,797 3,404 3,369 136,163 209,619 38,819 32,516 4,642 For notes see p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 o COMMERCIAL BANKS A 17 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a i s n n si d s f u ic r F a a D t n i I c o C e n by Total Loa l ns T U re . S S a e s . c ­ urit O ie t s h 2 er a C ss a e s t h s3 c b T a i a l a l p o i i n a c t t i d i t ­ a ­ e a l s l Total3 m D I a n e n t ­ d erba T n i k m 3 e Dema O nd ther Tim 5 e r B i o n o w g r s ­ ­ c c T a o a p o u c t i n t a ­ a t l s l N ba b u o n e m f r ks ­ ury counts 4 U.S. Other Govt. Insured banks (cont.): 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 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 1960—Dec. 31.... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 317... 94,760 66,963 11,196 16,600 25,472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1971—Dec. 31.... 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—Dec. 31.... 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Mar. 28... . 117,745 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 30,<559 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 1947—Dec. 31.... 16,444 4,958 10.039 1,448 4,083 20,691 19,342 262 4 149 12,366 6,558 7 1,271 6,478 1960—Dec. 31... . 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 317... 92,399 57,489 16.039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1971—Dec. 31... . 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—Dec. 31... . 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Mar. 28.... 134,306 86,368 47,! ?39 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 1 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 49,<381 12,141 161,783 141,706 1,141 563 1,305 53,650 85,047 1,735 12,778 8,203 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 329 1,2'.91 253 13 329 852 1947—Dec. 316... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 317... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 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 4-57 5,5(34 3,613 18 1,288 7,662 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 1960—Dec. 31... . 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 317... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 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 Loans to farmers directly guaranteed by CCC were reclassified as and for individual categories of securities on a gross basis—that is, before, securities and Export-Import Bank portfolio fund participations were deduction of valuation reserves—rather than net as previously reported. reclassified from loans to securities effective June 30, 1966. This reduced “Total loans” and increased “Other securities” by about $1 billion. Note.—Data are for all commercial banks in the United States (includ­ “Total loans” include Federal funds sold, and beginning with June 1967 ing Alaska and Hawaii, beginning with 1959). Commercial banks represent securities purchased under resale agreements, figures for which are in­ all commercial banks, both member and nonmember; stock savings cluded in “Federal funds sold, etc.,” on p. A-18. banks; and nondeposit trust companies. Effective June 30, 1971, Farmers Home Administration notes were Figures for member banks before 1970 include mutual savings banks classified as “Other securities” rather than “Loans.” As a result of this as follows: three before Jan. 1960 and two through Dec. 1960. Those change, approximately $300 million was transferred to “Other securities” banks are not included in insured commercial banks. for the period ending June 30, 1971, for all commercial banks. Effective June 30, 1969, commercial banks and member banks exclude See also table (and notes) at the bottom of p. A-26. a small national bank in the Virgin Islands; also, member banks exclude, 2 See first two paragraphs of note 1. and noninsured commercial banks include, through June 30, 1970, a small 3 Reciprocal balances excluded beginning with 1942. member bank engaged exclusively in trust business; beginning 1973, 4 Includes items not shown separately. See also note 1. excludes one national bank in Puerto Rico. 5 See third paragraph of note 1 above. Comparability of figures for classes of banks is affected somewhat by 6 Beginning with Dec. 31, 1947, the series was revised; for description, changes in F.R. membership, deposit insurance status, and by mergers see note 4, p. 587, May 1964 Bulletin. etc. 1 Figure takes into account the following changes, which became Figures are partly estimated except on call dates. effective June 30, 1969: (1) inclusion of consolidated reports (including For revisions in series before June 30, 1947, see July 1947 Bulletin, figures for all bank-premises subsidiaries and other significant majority- pp. 870-71. owned domestic subsidiaries) and (2) reporting of figures for total loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS a APRIL 1974 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans * Investments b c C a a l n l a l k s d s a a o n te d f l i m o n T a a v e o n n e n t d s a s t t s l i ­ f s e F u e o t r n e c l a d d d . l 2 , ­ s Total C m a c i o i n n e a m d r ­ l ­ ­ A c t a u u g l r r l 5 ­ i ­ - o p b T s r u r e o o r c c ­ c u F a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s R t e a e s t a ­ e l O v t i d t h i n o d i e - - - r, Other U B s .S e il c . l u s T r r it e i a e s s u 6 ry S g s l a o e o t n c c a v a u d t t e l . ­ O r s it e t i h c e u e s r 5 ­ d tr u ia s l ­ a k n er d s ot T he o rs Banks Others uals3 Total ce a r n t d ifi­ rities deal­ cates ers Total: 2 1947—Dec. 31. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 69,221 9,982 6,034 53,205 3,729 1972—Dec. 31 io599,36726,662388,593 132,701 14,314 11,3164,491 6,585 23,40298,38287,232 10,171 67,028 89,50427,579 1973—June 30.. 636,29427,652429,667 150,39015,985 7,3664,752 9,853 27,685 108,199 94,416 11,02057,877 91,312 29,787 AH insured: 1941—Dec. 31. . 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 3,159 16,899 3,651 3,333 1945—Dec. 31. . 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,132 ''“,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1972—Dec. 31 io594,50225,584385,941 131,422 14,287 11,1654,460 6,115 23,27798,204 86,912 10,09966,679 89,173 27,125 1973—June 30.. 630,379 26,162426,425 148,825 15,9677,295 4,727 9,06027,574 108,008 94,060 10,909 57,532 90,967 29,293 Oct. 17. .647,971 28,566439,435 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 3,0902,871 1945—Dec. 31. 107,183 22,775 8,949 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31. . 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1972—Dec. 31 io466,169 19,961309,969 112,1108,495 10,863 3,870 5,783 22,02673,131 64,4909,201 48,715 69,640 17,884 1973—June 30.. 490,908 19,705341,577 127,194 9,467 7,1034,122 8,63426,25879,84069,0069,953 41,080 69,374 19,172 Oct. 17. .502,961 20,823351,248 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 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31. . 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 1972—Dec. 31 io 75,034 812 57,901 27,864 7,057 841 2,271 6,413 5,789 5,2252,390 5,696 9,107 1,518 1973—June 30, 79,212 1,394 64,033 31,1 4,563 772 3,776 8,776 6,352 5,158 2,676 4,661 7,224 1 ,900 Oct. 17. . 81,550 1,578 65,392 Citv of Chicago:11 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31 .. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31. . 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1972—Dec. 31 io 21,362 718 15,576 7,851 1401,330 282 341 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:n 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 io171,618 9,927116,80244,483 1,9772,024 1,707 2,716 10,268 27,01422,669 3,943 16,316 24,0494,523 1973—June 30.. 180,726 9,333 129,18250,457 2,241 1 ,415 1 ,784 3,603 11,44029,705 24,357 4,181 13,066 24,435 4,710 Oct. 17.. 184,252 9,210132,627 All other member :n 1941—Dec. 31 .. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,544 16,722 1,342 I,067 1947—Dec. 31 .. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1972—Dec. 31 io198,156 8,504119,69031,911 6,327 452 1,040 455 2,565 39,262 35,458 2,22024,830 33,664 II,468 1973—June 30.. 206,404 7,882129,813 34,8247,015 282 1,253 657 2,48442,638 38,2842,37621,638 34,919 12,153 Oct. 17.. 211,357 8,806134,007 Nonmcmber: 1947—Dec. 31 .. 18,454 5,432 1,205 614 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,078 1972—Dec. 31 io133,198 6,701 78,62420,591 5,819 453 622 803 1.377 25,25022,741 969 18,313 19,864 9,695 1973—June 30 145,386 7,947 88,089 23,196 6,518 263 630 1,219 I ,427 28,359 25,410 I ,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 appear in the table on add to the total and are not entirely comparable with prior figures. Total pp. A-16—A-17. loans continue to be shown net. See also note 10. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed 2 Includes securities purchased under resale agreements. Prior to June 30, by CCC were reclassified as “Other securities,” and Export-Import Bank 1967, such securities were included in loans—for the most part in loans to portfolio fund participations were reclassified from loans to “Other “Banks.” Prior to Dec. 1965, Federal funds sold were included with securities.” This increased “Other securities” by about $1 billion. “Total” loans and loans to “Banks.” 6 Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes), Deposits Accumulated for Payment of Personal at book value; they do not add to the total (shown at book value) and are Loans, p. A-26. 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

APRIL 1974 □ COMMERCIAL BANKS A 19 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d s B w F e R a r . i n v R t e h k e ­ . s s r C c a e o n n u i d c r n y ­ b m a a w B d n e n i a o c s t k e t l h ­ ­ i s s c 7 ju p m D s a o d a t d s e e e n i ­ ­ d t ­ d s 8 m D e I s n o t t ­ i e c r 7 b e a F i n g o k n r ­ 9 G U o .S vt . . S g l a o o t n c a v d a t t e l . c C c h o a f e e i e f n e r r f c d d i t s k ­ i ’ ­ s, IPC I b n a t n er k ­ G P U S a o o a n . s v S v d t t . ­ a . l S g l a o o t n c a v a d t t e l . IPC3 r B in o o w g r s ­ ­ c C o a t a u a c p n l ­ i t ­ s ings etc. 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 10. 26,070 8,666 32,185 212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 60637,161 277,683 38,08352,658 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 73040,734 304,265 49,29955,740 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.. .. 15,810 1,829 11,075 74,722 12,566 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1972—Dec. 3110. 26,070 8,637 30,734 210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 60637,086 276,138 37,55652,166 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 73040,655 302,34448,41355,240 Oct. 17... 30,998 9,231 23,960 203,931 24,626 3,817 5,821 15,620 9,905 209,023 6,571 58042,914 314,30455,90656,726 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 I945—Dec. 31.. .. 15,811 1,438 7,117 64,184 12,333 1,243 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1972—Dec. 31 10. 26,070 6,582 19,396 158,464 28,521 3,437 9,024 13,544 9,503 174,770 3,562 46828,553 211,124 36,35741,228 1973—June 30... 25,143 5,754 18,004 148,306 25,684 3,627 8,167 13,251 8,781 160,407 4,879 569 30,812 230,969 46,52943,098 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 54,17143,948 New York City:11 1941—Dec. 31___ 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1 648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1972—Dec. 31 10. 5,695 508 4,854 23,271 12,532 2,562 1,418 741 3,592 31,040 1,833 10 2,522 26,1969,502 8,042 1973—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 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 2,152 476 288 1945—Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1972—Dec. 31 10. 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 10. 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 10. 8,794 3,807 9,681 76,597 4,047 70 3,238 8,726 2,571 72,384 395 181 13,373 101,243 4,455 16,608 1973—June 30. . . 9,305 3,373 8,211 72,658 3,353 118 3,766 8,426 2,421 68,737 342 167 14,661 107,293 6,753 17,604 Oct. 17... 10,083 4,079 7,211 74,378 3,340 99 1,963 7,295 2,231 70,542 352 161 15,500 110,5347,254 18,103 Nonmember:3 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1972—Dec. 31 10. 2,084 12,789 53,658 1,449 446 1,851 5,044 2,182 47,180 633 138 8,608 66,559 1,726 11,429 1973—June 30 1,915 11,838 53,803 1,294 442 2,267 4,915 2,381 47,219 712 162 9,922 73,295 2,770 12,643 7 Beginning with 1942, excludes reciprocal bank balances. parallel the previous “Reserve city” and “Country” categories, respectively 8 Through 1960 demand deposits other than interbank and U.S. (hence the series are continuous over time). Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Note.—Data are for 4II 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 20 WEEKLY REPORTING BANKS □ APRIL 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.i Other To brokers For pui rchasing and dealers or carryinig securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1973 Mar. 7............... 333,027 15,117 13,177 1,180 528 232 237,082 97,499 3,045 1,083 7,221 265 2,935 7,791 13,448 14............... 332,045 12,848 11,495 933 322 98 238,619 98,517 3,056 641 7,254 239 2,937 7,874 13,776 21............... 333,715 12,983 10,681 1,412 796 94 240,045 99,724 3,058 880 6,942 243 2,926 7,714 14,052 28............... 333,667 12,561 11,436 837 171 117 240,533 99,823 3,073 712 6,793 241 2,926 7,926 14,320 1974 Feb. 6............. 371,413 16,030 14,046 1,340 415 229 268,061 110,019 3,747 1,161 5,026 154 2,738 8,103 18,025 1 3 370,368 16,725 15,093 1,035 394 203 267,646 110,179 3,741 734 4,805 150 2,751 7,909 18,137 20............... 371,217 16,639 15,069 984 353 233 267,623 110,179 3,740 589 4,987 147 2,747 7,928 18.221 27............... 372,066 16,394 14,577 1,216 366 235 268,766 110,740 3,752 992 5,272 150 2,750 8,125 18,164 Mar. 6*............. 375,500 16,779 15,067 1,123 342 247 270.387 111,761 3,784 1,061 5,136 147 2,760 8,290 18,137 13*............. 374,820 15,571 13,994 1,050 311 216 270,643 112,740 3,801 595 4,898 144 2,784 8,394 18,363 20*............. 375,547 14,990 13,466 993 303 228 273.387 114,777 3,792 579 4,747 140 2,774 8,452 18,404 27*............. 377,992 15,502 13,668 1,254 294 286 275,500 115,971 3,788 660 4,646 140 2,778 8,668 18,515 New York City 1973 Mar. 7............... 70,302 1,164 1,090 43 31 56,098 28,183 55 950 4,395 43 658 2,359 4,041 1 4 70,230 1,029 905 103 21 56,428 28,556 57 498 4,555 42 658 2,371 4, 196 21............... 71,266 1,535 1,459 50 26 56,508 28,850 56 714 4,235 43 649 2,196 4,236 28.. ......... 70,687 1,509 1,433 60 16 56,378 28,688 56 589 4,124 45 649 2,397 4,363 1974 Feb. 6............... 79,748 1,043 1,012 26 5 63,188 31,558 142 1,047 3,120 47 616 2,637 6,217 1 3 78,743 1,067 1,032 26 9 62,572 31,504 138 614 2,861 42 622 2,532 6,219 20............... 79,370 1,514 1,455 49 10 62,218 31,380 135 489 2,939 41 613 2,552 6,269 2 7 79,661 1,001 999 2 63,137 31,601 136 887 3,240 40 615 2,714 6,146 Mar. 6*............. 81,270 1,076 986 90 64,179 31,982 155 965 3,157 39 611 2,819 6,203 13*............. 80,347 1,053 1,031 14 8 63,720 32,486 153 527 2,911 39 607 2,948 6,229 20*............. 80,859 1,079 1,070 5 4 64,511 33,021 151 472 2,870 38 604 2,889 6,281 27*.............. 81,742 1,424 1,356 10 8 50 65,363 33,564 146 564 2,726 37 606 3,024 6,306 Outside New York City 1973 Mar. 7................ 262,725 13,953 12,087 1,137 528 201 180,984 69,316 2,990 133 2,826 222 2,277 5,432 9,407 1 4 261,815 11,819 10,590 830 322 77 182,191 69,961 2,999 143 2,699 197 2,279 5,503 9,580 21................ 262,449 11,448 9,222 1,362 796 68 183,537 70,874 3,002 166 2,707 200 2,277 5,518 9,816 2 8 262,980 11,052 10,003 777 171 101 184,155 71,135 3,017 123 2,669 196 2,277 5,529 9,957 1974 Feb. 6................ 291,665 14,987 13,034 1,314 415 224 204,873 78,461 3,605 114 1,906 107 2,122 5,466 11,808 13................ 291,625 15,658 14,061 1,009 385 203 205,074 78,675 3,603 120 1,944 108 2,129 5,377 11,918 20................ 291,847 15,125 13,614 935 353 223 205,405 78,799 3,605 100 2,048 106 2,134 5,376 11,952 27................. 292,405 15,393 13,578 1,216 366 233 205,629 79,139 3,616 105 2,032 110 2,135 5,411 12,018 Mar. 6*.............. 294,230 15,703 14,081 1,123 342 157 206,208 79,779 3,629 96 1,979 108 2,149 5,471 11,934 13*.............. 294,473 14,518 12,963 1,050 297 208 206,923 80,254 3,648 68 1,987 105 2,177 5,446 12,134 20*.............. 294,688 13,911 12,396 993 298 224 208,876 81.756 3,641 107 1,877 102 2,170 5,563 12,123 27*.............. 296,250 14,078 12,312 1,244 286 236 210,137 82,407 3,642 96 1,920 103 2,172 5,644 12,209 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ WEEKLY REPORTING BANKS A 21 LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments U.S. Treasury securities Notes and bonds maturing— Wednesday For­ All Certif­ eign other Total Bills icates govts.2 Within 1 to After 1 yr. 5 yrs. 5 yrs. Large banks— Total 1973 1,258 18.819 25,346 4,465 3,615 15,065 2,201 .........................Mar. 7 1,255 18.820 25,178 4,441 3,600 14,963 2,174 ...................................14 1,273 18,594 25,265 4,619 3,771 14,762 2,113 ...................................21 1,283 18,680 25,371 4,911 3, 14,603 2,049 ...................................28 1974 55 1,455 19,880 25,527 5,; 4,679 11,699 3,341 .........................Feb. 6 55 1,490 20,337 25,236 5,635 4,721 11,627 3,253 ...................................13 55 1,380 20,301 25,616 4,936 4,240 12,240 4,200 ...................................20 55 1,438 19,933 25,328 4,836 4,262 12,112 4,118 ...................................27 55 1,468 20,190 25,989 5,440 4,338 11,993 4,218 .........................Mar. 6* 55 1,466 19,782 25,717 5,277 4,346 11,920 4,174 ...................................13* 56 1,578 19,594 24,856 4,601 4,387 11,772 4,096 ...................................20* 56; 1,629 19,554 24,953 4,717 4,287 11,782 4,167 ...................................27* New York City 1973 5. 738 3,899 4,032 959 508 2,280 285 .........................Mar. 7 5. 739 3,853 4,078 1,125 479 2,214 260 ...................................14 5: 739 3,734 4,237 1,275 525 2,242 195 ...................................21 5. 741 3,737 4,204 1,410 560 2,087 147 ...................................28 1974 6, 689 4,430 5,128 1,821 700 1,545 1,062 .........................Feb. 6 6. 717 4,791 5,054 1,702 711 1,549 1,092 ...................................13 6, 641 4,652 5,250 1,310 553 1,912 1,475 ...................................20 6, 714 4,459 5,037 1,271 543 1,851 1,372 ...................................27 6, 740 4,680 5,297 1,641 535 1,819 1,302 .........................Mar. 6* 6, 729 4,307 5,027 1,377 587 1,754 1,309 ...................................13* 6, 788 4,323 4,791 1,239 561 1,701 1,290 ...................................20* 6, 822 4,326 4,819 1,284 539 1,690 1,306 ...................................27* Outside New York City 1973 41, 520 14,920 21,314 3,506 3,107 12,785 1,916 . Mar. 7 42, 516 14,967 21,100 3,316 3,121 12,749 1,914 ...........14 42, 534 14,860 21,028 3,344 3,246 12,520 1,918 ..........21 42, 542 14,943 21,167 3,501 3,248 12,516 1,902 ...........28 1974 49, 766 15,450 20,399 3,987 3,979 10,154 2,279 .Feb. 6 49, 773 15,546 20,182 3,933 4,010 10,078 2,161 ...........13 49, 739 15,649 20,366 3,626 3,687 10,328 2,725 ..........20 49, 724 15.474 20,291 3,565 3,719 10,261 2,746 ...........27 49, 728 15,510 20,692 3,799 3,803 10,174 2,916 .Mar. 6* 49, 737 15.475 20,690 3,900 3,759 10,166 2,865 ...........13* 49, 790 15,271 20,065 3,362 3,826 10,071 2,806 ..........20* 49, 807 15,228 20,134 3,433 3,748 10,092 2,861 ...........27* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ APRIL 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 Mar. 7............. 55,482 8,622 38,193 1,730 6,937 28,430 17,895 3,648 9,287 1,220 18,847 412,354 14........................... 55,400 8,632 38,123 1,765 6,880 29,496 20,192 3,920 9,050 1,232 18,942 414,877 21............. 55,422 8,516 38,292 1,744 6,870 26,896 19,178 3,926 8,571 1,240 18,517 412,043 28............. 55,202 8,349 38,317 1,738 6,798 26,884 20,321 4,037 9,260 1,248 18,889 414,306 1974 Feb. 6.............................. 61,795 7,637 40,520 2,454 11,184 31,677 21,644 4,016 11,891 1.429 21,193 463,263 1 3 60,761 7,192 40,107 2,418 11,044 37,856 24,081 4,366 13,788 1,426 21,359 473,244 20............. 61,339 7,250 40,356 2,434 11.299 38,013 23,935 4,467 12,924 1.429 21,610 473,595 2 7 61,578 7,178 40,684 2,417 11.299 31,481 21,251 4,459 11,621 1.429 21,713 464,020 Mar. 6*........................... 62,345 7,530 41,155 2,433 11,227 33,386 21,939 3,966 11,843 1,446 22,018 470,098 13*............ 62,889 7,823 41,149 2,532 11,385 32,843 23,145 4,341 11,417 1,449 22,275 470,290 20*............ 62,314 7,600 40,927 2,541 11,246 32,900 22,992 4,300 12,389 1,465 22,362 471,955 27*............ 62,037 7,393 40,975 2,486 11,183 32,855 20,769 4,421 12,137 1,464 22,575 472,213 New York City 1973 Mar. 7............. 9,008 2,166 5,331 510 1,001 9,367 4,966 451 3,858 609 6,030 95,583 1 4 8,695 2,052 5,136 525 982 10,341 4,955 483 3,670 611 6,073 96,363 21............. 8,986 2,060 5,446 510 970 8,810 4,334 466 3,213 609 5,972 94,670 2 8 8,596 1,927 5,248 510 911 9,824 4,958 478 3,869 611 6,165 96,592 1974 Feb. 6............................. 10,389 2,230 5,388 590 2,181 11,692 5,815 486 5,792 656 5,941 110,130 1 3 10,050 2,039 5,286 581 2,144 16,318 7,786 529 7,423 656 5,795 117,250 20............. 10,388 2,107 5,455 581 2,245 13,391 7,307 511 6,756 660 6,298 114,293 2 7 10,486 2,130 5,579 572 2,205 11,765 6,021 499 5,512 660 6,224 110,342 Mar. 6*........................... 10,718 2,342 5,740 567 2,069 11,999 6,720 476 5,666 675 6,397 113,203 13*............ 10,547 2,296 5,566 567 2,118 12,289 6,232 499 5,631 678 6,704 112,380 20*............ 10,478 2,254 5,556 576 2,092 12,501 6,306 484 6,394 680 6,922 114,146 27*............ 10,136 2,090 5,423 562 2,061 13,583 4,859 500 6,313 679 6,987 114,663 Outside New York City 1973 Mar. 7............. 46,474 6.456 32,862 1,220 5,936 19,063 12,929 3,197 5,429 611 12,817 316,771 1 4 46,705 6,580 32,987 1,240 5,898 19,155 15,237 3,437 5,380 621 12,869 318,514 21............. 46,436 6.456 32,846 1,234 5,900 18,086 14,844 3,460 5,358 631 12,545 317,373 2 8 46,606 6,422 33,069 1,228 5,887 17,060 15,363 3,559 5,391 637 12,724 317,714 1974 Feb. 6............................. 51,406 5,407 35,132 1,864 9,003 19,985 15,829 3,530 6,099 773 15,252 353,133 13............. 50,711 5,153 34,821 1,837 8,900 21,538 16,295 3,837 6,365 770 15,564 355,994 20............. 50,951 5,143 34,901 1,853 9,054 24,622 16,628 3,956 6,168 769 15,312 359,302 27............. 51,092 5,048 35,105 1,845 9,094 19,716 15,230 3,960 6,109 769 15,489 353,678 Mar. 6*........................... 51,627 5,188 35,415 1,866 9,158 21,387 15,219 3,490 6,177 771 15,621 356,895 13*............ 52,342 5,527 35,583 1.965 9,267 20,554 16,913 3,842 5,786 771 15,571 357,910 20*............ 51,836 5,346 35,371 1.965 9,154 20,399 16,686 3,816 5,995 785 15,440 357,809 27*............ 51,901 5,303 35,552 1,924 9,122 19,272 15,910 3,921 5,824 785 15,588 357,550 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC State-, States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1973 150,263 106,539 6,420 6,286 20,240 698 864 3,084 6,132 170,258 58,078 80,035 21,436 2,990 7,076 ...............Mar. 7 150,969 109,812 5,880 4,991 19,733 674 909 2,711 6,259 172,379 58,174 81,782 21,735 2,954 7,109 ..........................14 147,837 105,660 6,393 6,961 18,777 679 799 3,061 5,507 173,107 58,297 81,860 21,825 3,175 7,338 ..........................21 149,419 105,757 6,582 7,258 19,072 653 857 3,127 6,113 174,299 58,466 82,753 21,789 3,323 7,337 ..........................28 1974 157,344 107,999 6,424 4,704 23,545 769 1,552 4,160 8,191 192,629 56,912 98,499 23,514 5,133 7,988 ...............Feb. 6 163,593 111,106 6,370 3,469 26,603 655 1,139 4,351 9,900 192,604 56,955 98,618 23,356 4,968 8,106 ..........................13 162,933 113,258 6,594 2,613 25,572 685 1,313 4,831 8,067 192.453 57,055 98,458 23,343 4,895 8,073 ..........................20 155,686 109,162 6,011 3,245 22,786 594 1,224 4,481 8,183 192,830 57,145 99,017 23,464 4,650 7,906 ..........................27 157,794 110,728 6,470 2,366 23,742 694 1,102 4.523 8,169 193,068 57,418 98,932 23,509 4,700 7,890 ...............Mar. 6* 156,244 111,911 6,057 1,940 22,313 732 1,059 4,492 7,740 194,081 57,652 99,901 23,528 4,720 7,648 ..........................13* 158,291 110,479 6,095 4,044 23,365 584 1,067 4.523 8,134 194,171 57,904 99,788 23,535 4,767 7,541 ..........................20* 158,601 111,173 6,514 3,437 22,960 610 1,216 4,679 8,012 195,873 58,270 100,964 23,532 4,885 7,554 ..........................27* New York City 1973 39,378 23,000 463 1,203 8,619 360 726 2,139 2,868 30,957 5,497 18,000 2,190 1,622 3,541 ...............Mar. 7 40,104 24,059 338 888 8,814 341 774 1,873 3,017 31,654 5,499 18,637 2,249 1,620 3,543 ..........................14 38,291 22,461 468 1.725 8,143 356 656 2,160 2,322 31,551 5,482 18,344 2,298 1,727 3,609 ..........................21 40,227 22,941 516 1.726 8,849 346 709 2,245 2,895 31,850 5,494 18,581 2,213 1,869 3,597 ..........................28 1974 46,027 23,287 322 962 11,984 432 1,345 3,078 4,617 35,145 5,010 20,932 1,798 3,255 4,067 ...............Feb. 6 50,829 23,975 345 608 14,909 332 924 3,244 6,492 34,851 5,015 20,800 1,680 3,166 4,099 ..........................13 48,138 24,683 386 335 13,047 346 1,079 3,588 4,674 34,561 5,026 20,705 1,590 3,106 4,015 ..........................20 45,718 23,782 319 599 11,600 299 995 3,347 4,777 34,437 5,035 20,792 1,648 2,907 3,938 ..........................27 45,931 23,924 490 429 11,847 299 872 3,370 4,700 34,633 5,037 20,798 1,746 2,946 3,985 ...............Mar. 6* 45,370 23,929 487 385 11,458 297 839 3,334 4,641 35,085 5,062 21,221 1,808 2,964 3,896 ..........................13* 46,713 23,975 440 804 12,239 281 859 3,392 4,723 35,079 5,078 21,155 1,890 3,028 3,786 ..........................20* 48,082 25,132 646 695 12,000 311 1,004 3,496 4,798 35,552 5,126 21,453 1,899 3,110 3,815 ..........................27* Outside New York City 1973 110,885 83,539 5,957 5,083 11,621 338 138 945 3,264 139,301 52,581 62,035 19,246 1,368 3,535 , ...............Mar. 7 110,865 85,753 5,542 4,103 10,919 333 135 838 3,242 140,725 52,675 63,145 19,486 1,334 3,566 . ..........................14 109,546 83,199 5,925 5,236 10,634 323 143 901 3,185 141,556 52,815 63,516 19,527 1,448 3,729 ..........................21 109,192 82,816 6,066 5,532 10,223 307 148 882 3,218 142,449 52,972 64,172 19,576 1,454 3,740 ...........................28 1974 111 ,317 84,712 6,102 3,742 11,561 337 207 1,082 3,574 157,484 51,902 77,567 21,716 1,878 3,921 .Feb. 6 112,764 87,131 6,025 2,861 11,694 323 215 1,107 3,408 157,753 51,940 77,818 21,676 1,802 4,007 ...........13 114,795 88,575 6,208 2,278 12,525 339 234 1,243 3,393 157,892 52,029 77,753 21,753 1,789 4,058 . ..........20 109,968 85,380 5,692 2,646 11,186 295 229 1,134 3,406 158,393 52,110 78,225 21,816 1,743 3,968 . ...........27 111,863 86,804 5,980 1,937 11,895 395 230 1,153 3,469 158,435 52,381 78,134 21,763 1,754 3,905 . . Mar. 6* 110,874 87,982 5,570 1,555 10,855 435 220 1,158 3,099 158,995 52,590 78,680 21,720 1,756 3,752 . ...........13* 111,578 86,504 5,655 3,240 11,126 303 208 1,131 3,411 159,092 52,826 78,633 21,645 1,739 3,755 . ..........20* 110,519 86,041 5,868 2,742 10,960 299 212 1,183 3,214 160,321 53,144 79,511 21,633 1,775 3,739 . ...........27* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ APRIL 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 justed IPC’s others bran­ ches Large banks— Total 1973 Mar. 7........................ 37,772 884 2,217 16,495 4,397 30,005 235,800 316,628 95,307 51,804 33,756 18,048 1,465 14........................ 36,816 1,588 2,383 16,335 4,400 29,944 236,608 317,186 96,749 53,615 35,396 18,219 1,419 21........................ 34,674 2,639 2,418 17,006 4,409 29,890 238,968 319,655 95,203 53,996 35,394 18,602 1,290 28........................ 35,693 1,598 2,334 16,594 4,391 29,915 238,300 318,873 96,205 54,932 36,205 18,727 1,127 1974 Feb. 6........................ 52,448 592 5,519 17,562 4,968 78 32,123 266,145 353,467 97,418 66,202 45,063 21,139 1,659 1 3 54,016 2,268 5,360 18,209 4,966 73 32,155 265,681 351,678 95,665 66,157 45,089 21,068 2,218 20........................ 56,826 840 5,110 18,299 4,964 73 32,097 265,546 352,501 96,735 65,680 44,765 20,915 1,735 2 7 53,885 947 5,358 18,211 4,976 78 32,049 266,870 353,776 98,174 65,756 45,069 20,687 1,689 Mar. 6*...................... 57,583 671 5,403 18,090 5,008 79 32,402 268,403 356,737 98,300 65,877 45,031 20,846 1,610 13*...................... 56,802 1,362 5,922 18,342 4,982 105 32,450 268,602 357,208 99,148 66,523 45,805 20,718 2,274 20*...................... 55,240 1,910 6,16? 18,708 4,974 99 32,399 271,127 358,297 97,982 66,261 45,469 20,792 2,459 27*...................... 53,595 1,748 6,301 18,609 4,970 99 32,417 273,393 360,383 99,349 67,785 46,829 20,956 2,947 New York City 1973 Mar. 7........................ 9,002 148 845 6,372 1.264 7,617 54,977 68,017 20,189 18,195 12.663 5,532 915 1 4 7,820 490 1,003 6,429 1.264 7,599 55,241 68,014 20,061 18,880 13,301 5,579 828 21........................ 7,271 1,080 976 6,651 1,272 7,578 55,302 68,525 19,613 18,716 12,997 5,719 996 2 8 8,359 906 6,433 1,251 7,566 55,155 67,955 19,828 19,045 13,210 5,835 728 1974 Feb. 6........................ 11,436 2,427 5,488 1.360 8,247 61,705 77,222 21,389 21,016 14,034 6,982 1,220 1 3 12,859 642 2,398 6,055 1.361 8,255 61,297 76,401 18,994 20,853 13,985 6,868 1,817 20........................ 13,957 2,172 5,865 1,357 8,243 60,988 76,626 21,365 20,541 13,867 6,674 1,419 2 7 12,535 2,287 5,759 1,370 8,236 61,782 77,305 21,754 20,362 13,866 6,496 1,240 Mar. 6*...................... 14,309 230 2,490 5,819 1.382 8,409 62,920 78,935 21,656 20,545 13,942 6,603 1,185 13*...................... 13,058 80 2,839 6,146 1.386 8,415 62,398 77,972 21,238 20,921 14,310 6,611 1,601 20*...................... 12,297 898 2,837 6,491 1.382 8,449 63,250 78,519 21,169 20,829 14,182 6,647 1,750 27*...................... 11,340 220 2,896 6,746 1.386 8,441 64,061 79,016 21,804 21,287 14,539 6,748 1,779 Outside New York City 1973 Mar. 7........................ 28,770 736 1,372 10,123 3,133 22,388 180,823 248,611 75,118 33,609 21,093 12,516 550 1 4 28,996 1,098 1,380 9,906 3.136 22,345 181,367 249,172 76,( 34,735 22,095 12,640 591 21........................ 27,403 1,559 1,442 10,355 3.137 22,312 183,666 251,130 75,590 35,280 22,397 12,883 294 2 8 27,334 1,598 1,428 10,161 3,140 22,349 183,145 250,918 76,377 35,887 22,995 12,892 399 1974 Feb. 6........................ 41,012 592 3,092 12,074 3,608 78 23,876 204,440 2.76,245 76,029 45,186 31,029 14,157 439 13........................ 41,157 1,626 2,962 12,154 3.605 73 23,900 204,384 275,277 76,671 45,304 31,104 14,200 401 20........................ 42,869 840 2,938 12,434 3,607 73 23,854 204,558 275,875 75,370 45,139 30,898 14,241 316 27........................ 41,350 947 3,071 12,452 3.606 78 23,813 205,C ~ ~ 276,471 76,420 45,394 31,203 14,191 449 Mar. 6*...................... 43,274 441 2,913 12,271 3,626 79 23,993 205,483 277,802 76,644 45,332 31,089 14,243 425 13*...................... 43,744 1,282 3,083 12,196 3,596 105 24,035 206,204 279,236 77,910 45,602 31,495 14,107 673 20*...................... 42,943 1,012 3,326 12,217 3,592 99 23,950 207,877 279,778 76,813 45,432 31,287 14,145 709 27*...................... 42,255 1,528 3,405 11,863 3,584 99 23,976 209,332 281,367 77,545 46,498 32,290 14,208 1,168 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

APRIL 1974 □ BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1974 1974 1974 1973 1973 Mar. Mar. Mar. Mar. Feb. 2nd 1st 27 20 13 6 27 Mar. Feb. Jan. I IV III half half Durable goods manufacturing: Primary metals................................. 1,886 1,884 1,832 1,813 1,798 95 -69 58 84 -247 18 -229 20 Machinery......................................... 7,665 7,460 7,186 7,046 6,852 888 128 53 1,069 136 479 615 1,453 Transportation equipment.............. 2,846 2,793 2,735 2,688 2,661 217 171 -30 358 90 272 362 64 Other fabricated metal products... 2,589 2,565 2.448 2,381 2,356 244 12 11 267 15 56 71 503 Other durable goods........................ 4,039 3,947 3,887 3,793 3,736 316 115 -82 349 -363 290 -73 872 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 4,285 4,258 4,095 4,059 3,982 299 28 -203 124 340 393 733 -23 Textiles, apparel, and leather.......... 3,776 3,750 3,638 3,538 3,444 345 234 -9 570 -440 235 -205 730 Petroleum refining........................... 1,214 1,215 1,229 1,200 1,203 12 -74 -114 -176 184 19 203 211 Chemicals and rubber..................... 2,756 2,705 2,632 2,568 2,499 272 54 -71 255 -198 48 -150 809 Other nondurable goods................. 2,263 2,230 2,163 2,133 2,133 128 27 -39 116 -65 156 91 360 Mining, including crude petroleum and natural gas........................... 4,121 4,117 4,080 4,094 4,066 50 39 223 312 -233 77 -156 331 Trade: Commodity dealers................. 2,200 2,244 2,230 2,206 2,307 -108 49 416 357 630 -42 588 -540 Other wholesale....................... 5,882 5,846 5,656 5,605 5,628 258 178 35 471 151 43 194 567 Retail........................................ 6,626 6,524 6,337 6,391 6,183 430 375 -265 540 -184 165 - 19 1,092 Transportation..................................... 6,063 6,045 5,969 5,986 5,905 164 -61 2 105 14 66 80 294 Communication................................... 2,175 2,184 2,103 2,099 2,102 73 -40 116 149 -78 -13 -91 258 Other public utilities............................ 5,542 5,412 5,360 5,378 5,440 146 -271 -166 -291 596 734 1,330 961 Construction......................................... 5,563 5,569 5,491 5,453 5,488 94 -8 -57 29 -200 211 11 878 Services................................................. 11,254 11,233 11,056 11,016 10,934 310 129 -251 188 565 362 927 997 All other domestic loans..................... 8,732 8,662 8,578 8,577 8,277 535 -95 101 541 302 380 682 1,754 Bankers’ acceptances........................... 1,316 1,287 1,348 1,244 1,250 86 1 -25 62 199 -322 -123 -154 Foreign commercial and industrial loans.............................................. 4,188 4,089 4,070 3,986 4,017 181 -142 86 125 23 -384 -361 554 Total classified loans........................... 96,981 96,019 94,123 93,254 92,261 5,035 780 -211 5,604 1,237 3,243 4,480 11,991 Total commercial and industrial loans of large commercial banks.......... 115,971 114,777 112,740111,761 110,740 5,231 982 -363 5,850 1,938 3,371 5,309 13,709 See Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1974 1973 1974 1973 1973 Industry Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July 2nd 27 27 30 26 28 31 26 29 25 I IV III II half Durable goods manufactur­ ing: Primary metals................. 1,064 1,046 1,092 1,104 1,240 1,259 1,307 1,290 1,292 -40 -203 -21 -7 -224 Machinery.......................... 3,114 3,037 2,950 2,866 2,726 2,731 2,680 2,642 2,664 248 186 39 328 225 Transportation equipment. 1,365 1,367 1,324 1,284 1,257 1,239 1,266 1,231 1,197 81 18 77 15 95 Other fabricated metal products........................ 911 911 938 894 912 901 871 853 867 17 23 2 84 25 Other durable goods.......... 1,915 1,837 1,737 1,772 1,754 1,795 1,788 1,738 1,728 143 -16 98 170 82 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,529 1,527 1,514 1,491 1,469 1,470 1,477 1,410 1,415 38 14 84 43 98 Textiles, apparel, and leather........................... 1,089 1,043 1,032 1,003 1,036 1,033 1,028 1,023 1,002 86 -25 59 77 34 Petroleum refining........... 945 897 920 933 839 883 920 925 947 12 13 44 34 57 Chemicals and rubber.... 1,603 1,569 1,570 1,561 1,509 1,534 1,552 1,493 1,485 42 9 71 2 80 Other nondurable goods.. 1,139 1,080 1,069 1,082 1,077 1,090 1,100 1,080 1,066 57 -18 37 -37 19 Mining, including crude pe­ troleum and natural gas. 3,245 3,206 3,153 2,958 2,950 2,958 2,990 2,921 3,022 287 -32 144 -26 112 Trade: Commodity dealers.. 140 129 137 127 135 120 116 115 175 13 11 -7 -27 4 Other wholesale 1,323 1,315 1,265 1,190 1,172 1,223 1,178 1,151 1,118 133 12 112 11 124 Retail................ 2,480 2,376 2,249 2,206 2,227 2,175 2,147 2,135 2,063 274 59 141 183 200 Transportation............. 4,417 4,311 4,327 4,320 4,208 4,220 4,279 4,292 4,263 97 41 -26 71 15 Communication............ 966 940 947 860 828 819 858 835 814 106 2 73 39 75 Other public utilities... 3,154 3,245 3,298 3,252 3,121 2,857 2,836 2,678 2,548 -98 416 427 175 843 Construction................ 1,898 1,940 1,943 1,905 1,936 1,954 1,992 2,000 2,010 -7 -87 96 187 9 Services......................... 5,076 5,004 4,937 5,049 4,916 4,777 4,719 4,666 4,578 27 330 157 223 487 2,808 2,385 2,692 2,602 2,617 2,552 2,585 2,460 2,390 206 17 384 330 401 Foreign commercial and in­ dustrial loans___ 2,370 2,321 2,469 2,334 2,306 2,308 2,186 2,292 2,497 36 148 -399 18 -251 Total loans.............................,* 4*24,25,55151 41,486 41,563 40,793 40,235 39,898 39,875 39,230 39,141 1,758 918 1,592 1,893 2,510 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 26 DEMAND DEPOSIT OWNERSHIP □ APRIL 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u fi s n in a e n s c s ial 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 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 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 Dec......................................................................................... 14.7 64.4 27.1 1.4 6.6 114.3 1973—Feb.......................................................................................... 14.3 60.3 26.3 1.6 6.5 109.0 Mar......................................................................................... 14.4 59.0 26.5 1.6 6.4 107.9 Apr......................................................................................... 14.3 59.4 28.6 1.8 6.4 110.4 13.8 59.1 26.9 1.9 6.4 108.0 14.2 60.8 27.1 1.9 6.3 110.2 July......................................................................................... 14.8 61.1 27.3 1.9 6.6 111.7 Aug........................................................................................ 14.3 59.5 27.3 1.9 6.1 109.1 Sept........................................................................................ 14.5 60.6 27.2 1.9 6.5 110.8 Oct......................................................................................... 15.0 61.7 27.3 2.0 6.6 112.5 Nov........................................................................................ 14.8 62.9 27.5 2.1 6.7 113.9 Dec......................................................................................... 14.9 66.2 28.0 2.2 6.8 118.1 1974—Jan.......................................................................................... 15.2 63.8 28.4 2.3 6.7 116.5 Feb.*...................................................................................... 14.1 62.1 26.9 2.3 6.2 111.6 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Oct. 17, Class of Dec. 31, Dec. 31, June 30, Oct. 17, bank 1971 1972 1973 1973 bank 1971 1972 1973 1973 All commercial.... 680 559 538 All member—Cont. Insured................. 677 554 533 505 Other large banks 1 112 69 63 59 National member 387 311 304 281 All other member 1 371 313 312 291 State member___ 95 71 71 70 All nonmember......... 197 177 163 All member............. 482 381 375 350 Insured .................... 195 172 158 155 Noninsured............ 2 5 5 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on pp. A-16 member” parallel the previous “Reserve City” (other than in New York and A-17; from the figures for weekly reporting banks as shown on pp. City and the City of Chicago) and “Country” categories, respectively A-20-A-24 (consumer instalment loans); and from the figures in the (hence the series are continuous over time). table at the bottom of p. A-15. But they are included in the figures for “Time deposits” and “Loans” for call dates as shown on pp. A-16-A-19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 27 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—Dec. 5. 4,407 2,669 1,738 1,821 346 1,475 12. 4,393 2,620 1,773 1,802 337 1.465 19. 4,297 2,580 1,717 1,792 332 1,460 26. 4.300 2,603 1,697 1,798 331 1.467 1974—Jan. 2. 4,460 2,675 1,785 1,794 327 1.467 9. 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 1,810 343 1.467 Feb. 6. 4,605 2,638 1,967 1,780 341 1,439 13. 4,729 2,687 2,042 1,389 333 1,056 20. 4,933 2,673 2,260 1,342 336 1,006 27 r 4,992 2,748 2,244 1 ,414 337 1 ,077 Mar. 6. 4,939 2,754 2,185 1 ,414 339 1 ,075 13. 4,935 2,768 2,167 1 ,420 339 1,081 20. 4,840 2,787 2,053 1 ,419 340 1 ,079 27. 4,904 2,834 2,070 1,441 375 1 ,066 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 comoanv Daoer Held by— Based on- Placed through Placed End of period dealers dir€ictly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other 1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 1965............................ 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966..................... 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 1967............................ 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968............................ 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969............................ 32,600 * * 1* *2i6 10,601 * *3*078 17,705 5,451 1,567 1,318 249 64 146 3,674 1 ,889 1 ,153 2,408 1970............................ 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 1971............................ 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............................ 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—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 1974—Jan.................. 45,491 1,429 13,990 4,072 26,000 9,101 2,706 2,251 454 68 589 5,738 2,334 3,492 3,275 Feb................. 47,164 1,449 15,897 4,080 25,738 9,364 2,854 2,328 525 69 592 5,850 2,434 3,182 3,748 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 28 INTEREST RATES □ APRIL 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1972—Jan. 3. 5-5%-5%- 1972—Sept. 4 51/4-5%. 1973—June 8 71/2. 1974—Feb. 11 9-9i4-93/io 2 1 4 7 . . 4 4 5 3 / 4 8_ - 4 5 3 - 4 51 _ / 5 4 b - 11 5 5 5 % %- --5% 2 1 5 9 . 7 7* % 4 -- - 734 2 1 5 9 9 8 V -- 10 9 - 1 8 4 3 4 .-9 31. 4*A-4%m-5 25, 5%.-5%- 26 8Vio-834. 5% July 2. 734 .-8 Feb. 28. 43/8-4%- 3. 734-8. Mar. 4, 8%-87/10- 43/4- Oct. 2. 5%--534 9. 8-814 ■ 834- Mar. 2 1 3 3 . . 44%34- . 43/*« 1 4 1 . . 5 5 * % /4 - - 534- 1 1 7 8 , . 8 81 1 4 4 - - 8 - % 8% . 5, 8 % 8 — % 8 - 6/ io— 27. 434.-47/8-5 16. 5*4--57/8 23, 8%- 19, 8^4.-88/io 30, 8%-834. 21, 834.-88/10_.9 Apr. 3. 434.-5 Nov. 6. 5*4- 22, 88/10-9. 5. 5. 20. 5%--57/8 Aug. 6. 834-9. 26, 9. 17. 5--5% 7. 9. 28, 9.-91/4 Dec. 26. 534--6 13 9-914- 29 9-914 .-9% May 1. 5.-51/8-514 27. 534-6. 21 914--9% 30. 5b 22 9%- 1973—Jan. 4. 6. 28, 9%-934. June 12. 5«-5i/8 29 . 934. 26. 5-514- Feb. 2. 6.-614 14. 6. Sept. 14. 934.-10 July 3. 5%--5% 26. 6.-6V4 18 10. 10. 514--53/8- 27. 6J4- 27 934-10. 5% 17. 51/4--51/2 Mar. 19. 614--634 Oct. 22. 91/2-934-10. 31. 5V4m-5y8- 26. 6 %■ 24 9%-934.-10 5% Aug. 11. 5%--5% Apr. 18 6%-634. 1974—Jan. 7 9%-93/4.. 2 1 1 4 . . 5 51 % / 4 - - -53 /8 19. 634- 14. 9% 9 - 9 9 /i 3 o /4.- 25. 5%--5%- May 4, 634.-7 98/io 5% 7, 7. 91/4-9%.- 29. 51,4-53/8- 24, 7 .-714 9Vio 5%- 25, 7-714- Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime rate keyed to money market variables. . denotes the predominate prime rate,” this table shows only the “large-business prime rate.” which is the rate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing; RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1974 1973 1974 1973 1974 1973 1974 1973 1974 1973 1974 1973 Short-term 35 centers..................................... 9.91 10.08 9.86 9.80 10.09 10.14 10.28 10.43 10.06 10.18 9.75 9.95 New York City........................ 9.68 9.90 9.93 10.04 10.12 10.28 9.95 10.31 9.78 10.01 9.62 9.83 7 Other Northeast................... 10.28 10.51 10.42 10.34 10.46 10.57 10.71 10.86 10.48 10.58 9.99 10.32 8 North Central....................... 9.98 10.02 9.18 9.02 9.98 9.81 10.42 10.38 10.14 10.19 9.82 9.91 7 Southeast............................... 9.80 9.96 9.69 9.58 9.81 9.82 10.02 10.16 9.90 9.97 9.60 9.89 8 Southwest.............................. 9.93 10.08 9.90 9.91 9.98 10.09 10.04 10.28 9.99 10.04 9.82 9.97 4 West Coast............................ 9.78 10.04 10.16 10.23 10.08 10.26 10.05 10.28 9.83 10.13 9.68 9.95 Revolving credit 35 centers..................................... 9.82 10.13 10.22 10.09 10.09 10.18 10.10 10.20 9.78 10.23 9.79 10.11 New York City........................ 9.91 10.30 9.32 9.84 9.60 10.09 9.99 10.33 9.72 10.21 9.92 10.31 7 Other Northeast................... 10.20 10.09 9.82 10.36 10.27 10.69 10.32 10.55 9.65 10.32 10.25 10.00 8 North Central....................... 10.00 10.22 11.14 9.96 10.27 10.17 10.17 9.70 10.03 10.55 9.97 10.24 7 Southeast............................... 9.96 9.22 9.75 9.11 9.88 9.54 10.09 9.83 9.35 9.75 10.14 10.05 8 Southwest.............................. 10.34 10.74 10.58 10.46 9.97 10.19 10.32 11.22 10.43 10.72 10.35 10.64 4 West Coast........................... 9.58 9.92 10.24 10.09 10.11 10.21 10.04 10.16 9.65 10.04 9.51 9.88 Long-term 35 centers..................................... 10.16 10.68 10.74 10.36 10.42 10.45 10.47 10.23 10.24 10.54 10.09 10.78 New York City........................ 10.03 11.05 9.69 10.93 10.92 10.06 10.45 9.95 10.60 10.02 11.12 7 Other Northeast................... 10.48 10.17 10.93 10.80 10.07 10.32 10.19 9.83 10.58 9.94 10.58 10.29 8 North Central....................... 10.48 10.92 10.51 10.08 9.69 10.40 10.45 10.12 10.10 10.25 10.57 11.16 7 Southeast............................... 10.93 12.33 10.49 9.10 13.59 10.98 12.48 13 07 14.20 15.73 8.90 10.96 8 Southwest.............................. 9.90 10.28 10.88 10.95 10.23 10.22 10.56 10.15 9.63 10.59 9.79 10.21 4 West Coast............................ 9.75 10.18 10.75 9.92 10.21 10.29 10.64 9.80 10.22 10.73 9.55 10.15 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

APRIL 1974 a INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers’ eral 3-month bills5 6-month bills5 9- to 12-month issues Period placed accept­ funds 3- to 5directly, ances, rate3 year 90-119 4- to 6- 3- to 6- 90 days 1 Rate Market Rate Market 1 -year issues6 days months months2 on new yield on new yield bill (mar­ Other 6 issue issue ket yield)5 1967......................... 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968......................... 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969......................... 7.83 7.16 7.61 8.22 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970......................... 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971......................... 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972......................... 4.66 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—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 Feb................ 8.00 7.82 7.40 7.83 8.97 7.060 7.12 6.874 6.96 6.51 6.93 6.77 Mar............... 8.64 8.42 7.76 8.43 9.35 7.986 7.96 7.829 7.83 7.34 7.86 7.33 Week ending— 1973—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 9 , 8.15 7.93 7.53 7.85 9.13 6.951 7.03 6.747 6.91 6.52 6.87 6.74 16....... 7.94 7.75 7.38 7.75 8.93 7.081 7.06 6.882 6.86 6.41 6.83 6.70 23 7.84 7.69 7.31 7.75 9.07 7.018 7.07 6.787 6.87 6.42 6.87 6.76 Mar. 2....... 8.00 7.88 7.30 7.85 8.81 7.188 7.36 7.081 7.27 6.71 7.15 6.93 9 8.20 8.00 7.50 8.00 8.98 7.675 7.71 7.566 7.53 6.96 7.34 7.06 16 8.43 8.18 7.75 8.08 9.03 7.920 7.82 7.637 7.59 7.06 7.59 7.16 23 8.73 8.50 7.85 8.60 9.33 8.047 8.06 7.882 8.02 7.56 8.15 7.48 30 9.30 9.10 8.00 9.10 9.61 8.300 8.35 8.231 8.24 7.84 8.49 7.69 1 Averages of the most representative daily offering rate quoted by sentative of the day’s transactions, usually the one at which most trans­ dealers. actions occurred. 2 Averages of the most representative daily offering rate published by 4 Except for new bill issues, yields are averages computed from daily finance companies, for varying maturities in the 90-179 day range. closing bid prices. 3 Seven-day averages for week ending Wednesday. Beginning with 5 Bills quoted on bank-discount-rate basis. statement week ending July 25, 1973, weekly averages are based on the 6 Selected note and bond issues. daily average of the range of rates on a given day weighted by the volume of transactions at these rates. For earlier statement weeks, the averages Note.—Figures for Treasury bills are the revised series described on p. were based on the daily effective rate—the rate considered most repre­ A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 INTEREST RATES □ APRIL 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i ( S t l e t o r a n m te g ) s ­ Total i Aaa Baa New ce R n e t ­ ly Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1963..................... 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964..................... 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965..................... 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966..................... 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967..................... 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968..................... 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 6.10 5.73 5.45 6.07 7.71 7.64 7.139669.....7....0..3..........7..81 7.22 7.46 7.49 6.41 3.24 6.08 1970..................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.U 8.26 8.77 8.68 7.22 3.83 6.46 1971..................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972..................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 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—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—Jan........... 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 Feb.......... 6.54 5.25 5.05 5.49 8.12 8.23 8.17 7.85 8.59 8.01 8.27 8.33 7.47 3.81 Mar......... 6.81 5.44 5.20 5.71 8.46 8.42 8.27 8.01 8.65 8.12 8.35 8.44 7.56 3.65 Week ending— 1974—Feb. 2.. 6.55 5.24 5.05 5.50 8.11 8.20 8.18 7.87 8.58 8.01 8.29 8.33 7.62 3.65 9. . 6.50 5.18 4.95 5.45 8.13 8.19 8.16 7.82 8.57 7.99 8.28 8.31 7.54 3.81 16. 6.50 5.24 5.05 5.45 8.05 8.25 8.17 7.85 8.59 8.00 8.28 8.33 7.49 3.92 23 . 6.56 5.28 5.10 5.50 8.10 8.24 8.18 7.87 8.61 8.03 8.26 8.34 7.47 3.92 Mar. 2. 6.62 5.29 5.10 5.55 8.30 8.29 8.18 7.87 8.59 8.03 8.25 8.35 7.39 3.70 9 . 6.71 5.31 5.10 5.55 8.37 8.27 8.21 7.92 8.60 8.05 8.28 8.38 7.39 3.64 16 . 6.75 5.38 5.15 5.65 8.33 8.37 8.25 7.99 8.63 8.08 8.33 8.41 7. 50 3.58 23 . 6.88 5.46 5.20 5.75 8.59 8.52 8.30 8.05 8.67 8.14 8.37 8.46 7.63 3.67 30 . 6.93 5.61 5.35 5.90 8.64 8.67 8.36 8.11 8.72 8.22 8.39 8.53 7.72 3.71 Number of issues2 ........... 12 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ only, based on Thurs. figures; from Moody’s Investor Service. (3) Cor­ arately. Because of a limited number of suitable issues, the number porate: Rates for “New issue” and “Recently offered” Aaa utility bonds of corporate bonds in some groups has varied somewhat. As of Dec. are weekly averages compiled by the Board of Governors of the Federal 23, 1967, there is no longer an Aaa-rated railroad bond series. Reserve System. Rates for seasoned issues are averages of daily figures 2 Number of issues varies over time; figures shown reflect most recent from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. Note.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on eight median yields for a sample of non- Bonds: Monthly and weekly yields are computed as follows: (1) U.S. callable issues—12 industrial and 2 public utility; common stock ratios Govt.: Averages of daily figures for bonds maturing or callable in 10 years on the 500 stocks in the price index. Quarterly earnings are seasonally or more; from Treasury Dept. (2) State and local govt.: General obligations adjusted at annual rates. NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Terms on Mortgages: 1 Through Aug. 1973 the index is based upon an initial value of 10.90— i Fees and charges—related to principal mortgage amount—include the average price of a share of stock listed on the American Stock Exchange loan commissions, fees, discounts, and other charges, which provide was $10.90 on June 30, 1965. As of Sept. 1973, a new market-value index added income to the lender and are paid by the borrower or home-seller. with a starting value of 100.00 replaced the previous series. An index for They exclude any closing costs related soleiy to transfer of property past periods is being calculated on the new market-value basis and will be ownership. published as it becomes available. Note.—Compiled by Federal Home Loan Bank Board in cooperation Note.—Annual data are averages of monthly figures. Monthly and with Federal Deposit Insurance Corporation. Data are weighted averages weekly data are averages of daily figures unless otherwise noted and are based on probability sample survey of characteristics of mortgages computed as follows: U.S. Govt, bonds, derived from average market originated by major institutional lender groups (including mortgage yields in table on p. A-30 on basis of an assumed 3 per cent, 20-year companies) for purchase of single-family homes. Data exclude loans for bond. Municipal and corporate bonds, derived from average yields as refinancing, reconditioning, or modernization; construction loans to computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- homebuilders; and permanent loans that are coupled with construction year bond; Wed. closing prices. Common stocks, derived from com­ loans to owner-builders. Series revised beginning Jan. 1973; hence data are ponent common stock prices. Average daily volume of trading, normally not strictly comparable with earlier figures. See also the table on Homeconducted 5 days per week for 5 Vi hours per day, or 21l/i hours per week. Mortgage Yields, p. A-49. 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- 221/z; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ SECURITY MARKETS A 31 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 Ex­ change ( G t l U e o r o . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d i u al s­ T p t o r i a r o n t n a s ­ ­ Utility na F n i­ ce in to d t e a x l l NYSE AMEX 1963.............. 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 . 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 138.96 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 197 1 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 17,429 4,234 197 2 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 197 3 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1973—Mar... 63.59 84.1 65.2 112.42 126.05 39.29 55.94 60.15 66.20 40.92 39.13 72.32 110.24 15,564 2,966 Apr. 64.39 85.7 64.9 110.27 123.56 35.88 55.34 58.67 64.41 40.57 38.97 69.42 105.32 13,900 2,981 May. ... 63.43 86.1 64.7 107.22 119.95 36.14 55.43 56.74 62.22 36.66 39.01 65.33 97.11 15,329 3,043 June.... 62.61 85.8 64.4 104.75 117.20 34.35 54.37 55.14 60.52 33.72 37.95 63.52 92.60 12,796 2,316 July........ 60.87 83.2 63.8 105.83 118.65 35.22 53.31 56.12 61.53 34.22 37.68 68.95 97.67 14,655 2,522 Aug... .. 58.71 82.2 61.0 103.80 116.75 33.76 50.14 55.33 61.09 33.48 35.40 68.26 99.23 14,761 1,796 Sept 61.81 86.2 61.3 105.61 118.52 35.49 52.31 56.71 62.25 35.82 36.79 72.23 101.88 17,320 2,055 Oct......... 63.13 86.9 62.1 109.84 123.42 38.24 53.22 59.26 65.29 39.03 37.47 74.98 107.97 18,387 3,388 Nov........ 62.71 85.6 62.1 102.03 114.64 39.74 48.30 54.59 60.15 36.31 34.73 67.85 99.91 19,044 3,693 Dec........ 62.37 86.1 62.9 94.78 106.16 41.48 45.73 50.39 55.12 34.69 33.47 62.49 88.39 19,227 3,553 1974—Ja............n 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 2,757 Feb........ 60.83 85.3 62.0 93.45 104.13 41.85 48.13 50.01 54.02 36.26 35.27 62.81 95.11 13,517 2,079 Mar....... 58.70 83.5 61.3 97.44 108.98 42.57 47.90 52.15 56.80 38.39 35.22 64.47 99.10 14,745 2,123 Week ending— 1974—Mar. 2. 60.19 84.8 61.8 95.84 106.89 43.38 48.56 51.34 55.57 38.25 35.70 63.41 96.89 14,808 2,215 9. 59.47 84.8 61.7 97. 11 108.48 43. 19 48.39 52.05 56.47 38.73 35.67 65.11 98.44 16,824 2,517 16. 59.17 84.3 61.4 99.34 111. 18 43.25 48.49 53.18 57.98 39.14 35.68 65.81 100.96 17,362 2,424 23. 58.18 83.0 61.1 97.49 109.09 42.67 47.65 52.18 56.89 38.35 35.07 64.37 99.90 12,933 1,815 30. 57.79 81.8 61.1 96.20 107.66 41.99 46.94 51.38 56.13 37.39 34.38 62.62 97.49 12,232 1,757 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 t e r 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 ) ty L c r p ( e a o p r n t a i e i c t r n o e ) / (t d h c o p o P h l r u l u a i a s c r s r . e ­ e s o ) f (t a d h m L o o l u o l o a 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 t e r ) 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 ) ty L c r p ( e a p o r n t a e i i c t r n o e ) / (t d h c o p o P h l u r u l a i a s r c s r . ­ e e s o ) f (t d a h L m o o l u o l o a a s u . r n n s o ) t f 1965.......................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966.......................... 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967.......................... 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968.......................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969.......................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970.......................... 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971.......................... 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1972......................... 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1973......................... 7.78 1.11 26.3 77.3 37.1 28.1 7.86 .94 23.2 75.2 31.2 22.8 1973—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.............. 8.31 1.12 25.6 75.5 37.7 28.0 8.46 .94 22.1 72.8 30.8 22.0 1974—Jan.'............ 8.33 1.16 26.4 76.3 38.8 28.9 8.47 1.02 22.8 72.4 33.4 23.5 Feb............... 8.40 1.33 25.9 76.5 37.8 28.5 8.53 1.02 22.9 73.9 33.7 24.6 Mar*........... 8.42 1.36 26.5 77.3 39.2 29.6 8.46 1.00 23.5 74.3 32.6 23.9 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 STOCK MARKET CREDIT □ APRIL 1974 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 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 Cash accts. accts. 1973—Feb..................................... 8,640 7,773 867 7,500 800 248 50 25 17 1,951 431 1,770 Mar.................................... 8,347 7,468 879 7,200 813 244 48 24 18 1,862 442 1,719 Apr..................................... 8,165 7,293 872 7,040 804 232 49 21 19 1,952 389 1,536 May................................... 7,650 6,784 866 6,540 802 224 47 20 18 1,992 413 1,564 June................................... 7,369 6,416 953 6,180 885 215 53 21 15 1,973 396 1,472 July.................................... 7,299 6,243 1,056 6,010 976 216 64 17 16 1,957 379 1,542 Aug.................................... 7,081 6,056 1,025 5,830 949 210 61 16 15 1,952 348 1,462 Sept.................................... 6,954 5,949 1,005 5,730 929 204 60 15 16 1,909 379 1,632 Oct..................................... 7,093 5,912 1,181 5,690 rl,105 203 59 19 17 1,878 419 1,713 Nov.................................... r6,774 5,671 r1,003 5,460 1,027 197 60 14 r16 *•1,917 464 1,685 Dec..................................... 6,382 5,251 1,131 5,050 1,070 189 46 12 15 1,866 454 1,700 1974—Jan...................................... 6,343 5,323 1,020 5,130 961 182 45 11 14 1,799 442 1,666 Feb..................................... 5,423 5,230 183 10 420 1,604 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) Total Equity class (per cent) Equity class of accounts End of l ( d i m o e n b il s t ­ End of period c N re e d t it in debit status b T al o a t n a c l e period d o o f l­ 8 m 0 o o re 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 nt 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n rs s ) lars)! 1973—Feb....................... 35.8 49.8 14.4 5,770 1973—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 1974—Jan....................... 38.3 42.7 18.0 6,596 1974—Jan... 5,130 5.5 8.0 14.2 22.6 25.8 24.0 Feb....................... 39.4 43.3 24.9 6,740 Feb... 5,230 5.4 7.4 13.3 22.6 28.0 23.3 Note.—Special miscellaneous accounts contain credit balances that 1 See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ SAVINGS INSTITUTIONS A 33 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a a d te l C r a o a n r t d p e o­ Cash O as t s h e e t r s li T a a t o b i n e t i d s a li l ­ D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ G r c e o e a s u n 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) turity govt. other1 general reserve accts. 3 or 3-6 6-9 Over Total less 9 i i 1965................. 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966................. 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967................. 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968................. 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969................. 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970................. 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 1971................. 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19724............... 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973—Jan.... 68,021 3,624 3,489 935 22,190 1,319 2,055 101,632 92,398 2,221 7,014 1,569 915 688 1,541 4,712 Feb.... 68,352 4,030 3,419 986 22,389 1,331 2,070 102,577 92,949 2,540 7,088 1,729 862 732 1,480 4,803 Mar.. . 68,920 3,970 3,458 1,028 22,509 1,576 2,058 103,518 94,095 2,285 7,139 1,816 886 826 1,355 4,882 Apr__ 69,426 3,831 3,388 1,080 22,598 1,582 2,089 103,994 94,217 2,589 7,189 1,904 888 725 1,395 4,912 May... 69,988 4,099 3,376 1,076 22,615 1,629 2,116 104,899 94,744 2,904 7,251 1,792 913 712 1,406 4,824 June... 70,637 3,959 3,346 1,125 22,562 1,775 2,273 105,677 95,706 2,650 7,321 1,711 1,020 573 1,378 4,683 July... 71,219 3,819 3,190 1,093 22,683 1,555 2,202 105,761 95.355 3,044 7,362 1,626 906 636 1,367 4,535 Aug---- 71,713 3,986 3,037 999 22,277 1,551 2,227 105,789 94,882 3,496 7,411 1,302 840 718 1,315 4,174 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 1,197 3,959 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 1,096 3,695 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 1,079 3,515 Dec__ 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 1974—Jan... . 73,440 4,161 2,925 936 21,623 1,686 2,312 107,083 96,792 2,665 7,626 1,171 587 439 998 3,196 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross-oforganizations and nonguaranteed issues of U.S. Govt, agencies. valuation-reserves basis. The data differ somewhat from balance sheet 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits data previously reported by National Assn. of Mutual Savings Banks accumulated for payment of personal loans” were excluded from “Time which were net of valuation reserves. For most items, however, the dif­ deposits” and deducted from “Loans” at all commercial banks. These ferences are relatively small. changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-26. 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 Other assets Total United State and Foreign 1 Total Bonds Stocks gages estate loans assets States local Statement value: 1965. 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966. 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 1967. 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 1968. 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 1966. 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967, 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968, 188,636 10,760 4,456 3,206 3,098 79,653 68,731 10,922 70,044 5,575 11,305 11,299 1969. 197,208 10,914 4,514 3,221 3,179 84,566 70,859 13,707 72,027 5,912 13,825 9,964 1970. 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16,064 10,909 1971. 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972, 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973- 241,022 11,191 4,389 3,358 3,444 114,526 88,371 26,155 77,481 7,366 18,080 12,378 Feb.................................. 242,069 11,138 4,371 3,319 3,448 115,386 89,247 26,139 77,510 7,434 18,166 12,435 Mar................................. 243,078 11,154 4,417 3,300 3,437 115,972 89,881 26,091 77,587 7,449 18,288 12,628 Apr................................. 242,562 11,455 4,566 3,388 3,501 115,181 89,710 25,471 77,258 7,522 18,420 12,726 May................................ 243,589 11,434 4,538 3,384 3,512 115,897 90,314 25,583 77,400 7,545 18,533 12,780 June...................'........... 244,531 11,359 4,468 3,373 3,518 116,153 90,484 25,669 77,914 7,548 18,673 12,884 July................................. 247,082 11,427 4,480 3,427 3,520 118,061 91,144 26,917 78,243 7,577 18,841 12,933 Aug................................. 247,655 11,416 4,462 3,433 3,521 117,842 91,342 26,500 78,657 7,632 19,181 12,927 Sept................................. 250,203 11,404 4,424 3,439 3,541 119,200 91,480 27,720 79,040 7,677 19,511 13,371 Oct.................................. 251,590 11,402 4,423 3,438 3,541 119,714 91,707 28,007 79,516 7,765 19,768 13,425 Nov................................. 251,055 11,462 4,471 3,444 3,547 118,016 91,847 26,169 80,191 7,838 19,926 13,622 Dec................................. 252,071 11,376 4,586 3,449 3,545 117,733 91,452 26,281 81,180 7,769 20,076 13,937 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 34 SAVINGS INSTITUTIONS □ APRIL 1974 SAVINGS AND LOAN ASSOCIATIONS fin millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o g r e t s ­ I s n m e v c e u e n s r t t ­ ­ Cash Other2 lia T b o il t i a ti l e s S c a a v p i i n ta g l s wo N r e th t 3 m r B o o w o n r e e ­ d y4 p L r o o i a n c n es s s Other ou a p t t s e e t r a n i n d o d d o i 5 n f g ities 1 1967..................................... 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 3,042 1968..................................... 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 1969..................................... 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 1970..................................... 150,331 13,020 3,506 9,326 176,183 146.404 12,401 10,911 3,078 3,389 4,452 1971..................................... 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972..................................... 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 1973...................................... 232,104 21,027 19,227 272,358 227,254 17,108 17,100 4,676 6,220 9,532 1973—Feb........................... 210,054 24,082 16,101 250,237 211,945 15,837 9,351 6,079 7,025 13,471 Mar......................... 213,050 23,880 16,989 253,919 215,643 15.737 9,892 6,310 6,337 14,439 Apr.......................... 216,037 23,803 17,489 257,329 216,474 16,044 11,269 6,532 7,010 14,939 May......................... 219,283 23,930 17,873 261,086 218,351 16,415 11,689 6,711 7,920 15,068 June......................... 222,580 23,220 17,920 263,720 221,624 16,225 12,698 6,754 6,419 14,705 July.......................... 225,265 22,628 18,296 266,189 221,399 16,550 14,226 6,686 7,328 13,710 Aug.......................... 227,778 21,001 18,704 267,483 220,243 16,896 15,634 6,449 8,261 12,249 Sept.......................... 229,182 20,025 19,008 268,215 222,086 16,782 16,255 6,064 7,028 10,799 Oct........................... 230,195 20,618 19,295 270,108 223,033 17,041 16,435 5,535 8,064 9,909 Nov.. ...................... 231,089 21,220 19,449 271,758 224,304 17,330 16,312 5,011 8,801 9,717 Dec.......................... 232,104 21,027 19,227 272,358 227,254 17,108 17,100 4,676 6,220 9,532 1974—Jan........................... 232,980 22,378 19,502 274,860 229.435 17.333 16,663 4,380 7,049 9,788 Feb.*....................... 234,433 23,322 19,899 277,654 231,247 17,650 16,425 4,308 8,024 10,676 1 Investment securities included U.S. Govt, securities only through 1967. 6 Beginning Jan. 1973, participation certificates guaranteed by the Beginning 1968 the total reflects liquid assets and other investment se­ Federal Home Loan Mortgage Corporation, loans and notes insured by curities. Included are U.S. Govt, obligations, Federal agency securities, the Farmers Home Administration and certain other Government- State and local govt, securities, time deposits at banks, and miscellaneous insured mortgage-type investments, previously included in mortgage securities, except stock of the Federal Home Loan Bank Board. Com­ loans, are included in other assets. The effect of this change was to reduce pensating changes have been made in “Other assets.” the mortgage total by about $0.6 billion. 2 Includes other loans, stock in the Federal home loan banks, other Also, GNMA-guaranteed, mortgage-backed securities of the pass­ investments, real estate owned and sold on contract, and office buildings through type, previously included in cash and investment securities are and fixtures. See also notes 1, 5, and 6. included in other assets. These amounted to about $2.4 billion at the end 3 Includes net undistributed income, which is accrued by most, but not of 1972. all, associations. 4 Consists of advances from FHLBB and other borrowing. Note.—FHLBB data; figures are estimates for all savings and loan 5 Data comparable with those shown for mutual savings banks (on assns. in the United States. Data are based on monthly reports of insured preceding page) except that figures for loans in process are not included assns. and annual reports of noninsured assns. Data for current and above but are included in the figures for mutual savings banks. preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a b A n t e e o d r m c s ­ e ­ s I m nv en es ts t­ p C a o d a n s e s i d ­ t h s B n a o o n n t d e d s s p M o b d e s e e m i r ­ ts ­ C s a to p c it k al M l g o ( a A a o g n r ) e t s ­ D n t e a u ( o L b n r t d e e e ) s s n­ c L a o ( t o o t A i p v a o ) n e e s r s ­ D t e u (L b re e ) s n­ c L o a d ( o u A n i a s n d n ) ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1967............... 4,386 2,598 127 4,060 1,432 1 ,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968............... 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969............... 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970............... 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971............... 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972.............. 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—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 2,738 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. . 14,866 3,649 77 15,362 1,545 2,112 23,912 22,404 2,662 2,704 7,029 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 1974—Jan.. . 15,188 2,843 121 14,556 1,692 2,246 24,424 23,131 3,123 2,741 7,163 6,956 11,245 10,048 Feb... 14,904 2,680 116 13,906 1,936 2,294 24,541 23,092 3,211 2,828 7,277 7,029 11,402 10,282 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

APRIL 1974 □ FEDERALLY SPONSORED CREDIT AGEI A ISSUES OF FEDERALLY SPONSORED AGENCIES, FEBRUARY 28, Amount Cou­ Amount moui (millions Agency, and date of issue pon (millions Agency, and date of issue lillioi of dollars) and maturity rate of dollars) and maturity jolla Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 300 Debentures: 10/1/73 - 3/4/74.............. 316 700 12/10/71 - 3/11/74___ 5.45 400 10/1/73 - 4/1/74.............. 332 173 4/10/70 - 3/11/74......... 7.75 350 11/1/73 - 5/1/74............. 354 400 8/5/70 - 6/10/74.......... 7.90 400 12/3/73 - 6/3/74.............. 607 800 11/10/71 - 6/10/74........ 5.70 350 1/2/74 - 7/1/74................ 462 218 9/10/69 - 9/10/74......... 7.85 250 2/4/74 - 8/1/74................ 556 1,000 2/10/71 -9/10/74........... 5.65 300 10/1/73 -4/4/77............. 200 250 5/10/71 - 12/10/74......... 6.10 250 400 9/10/71 - 12/10/74........ 6.45 450 500 11/10/70 - 3/10/75___ 7.55 300 Federal intermediate 700 10/12/71 - 3/10/75___ 6.35 600 credit banks 265 4/12/71 - 6/10/75........... 5.25 500 Debentures: 300 10/13/70 - 9/10/75. . .. 7.50 350 6/4/73 - 3/4/74............... 664 300 3/12/73 - 9/10/75........... 6.80 650 7/2/73 -4/1/74............... 421 500 3/10/72 - 12/10/75___ 5.70 500 8/1/73 - 5/1/74................ 538 400 9/10/73 - 12/10/75........ 8.25 300 9/4/73 - 6/3/74............... 626 350 3/11/71 - 3/10/76........... 5.65 500 10/1/73 - 7/1/74............. 699 600 6/12/73 - 3/10/76........... 7.13 400 1/4/71 - 7/1/74.............. 224 300 6/10/71 - 6/10/76........... 6.70 250 11/1/73 - 8/1/74............. 583 300 2/10/72 - 6/10/76........... 5.85 450 12/3/73 -9/3/74............. 516 600 11/10/71 - 9/10/76........ 6.13 300 1/2/74 - 10/1/74............. 561 300 6/12/72-9/10/76........... 5.85 500 2/4/74 - 11/4/74............. 754 500 7/12/71 - 12/10/76......... 7.45 300 5/1/72 - 1/2/75............... 240 500 12/11/72- 12/10/76.... 6.25 500 1/3/72 - 7/1/75............... 302 200 2/13/62 - 2/10/77......... 41/2 198 3/1/73 - 1/5/76............... 261 300 9/11/72 - 3/10/77.......... 6.30 500 7/2/73 - 1/3/77............... 236 300 12/10/70 - 6/10/77___ 6.38 250 1/2/74 - 1/3/78............... 406 300 5/10/71 - 6/10/77........... 6.50 150 500 12/10/73 - 6/10/77........ 7.20 500 Federal land banks 350 9/10/71 -9/12/77........... 6.88 300 Bonds: 300 9/10/73 - 9/12/77.......... 7.85 400 10/20/70 - 4/22/74 7.30 354 200 7/10/73 - 12/12/77........ 7.25 500 9/15/72 -4/22/74............ 5.85 350 200 10/1/73 - 12/12/77........ 7.55 500 10/20/71 - 7/22/74 5.85 326 200 6/12/73 - 6/12/78.......... 7.15 600 4/20/71 - 10/21/74 5.30 300 400 10/12/71 - 12/11/78. . . 6.75 300 2/20/70 - 1/20/75.......... m 220 12/10/73 - 3/12/79........ 7.25 500 4/23/73 - 1/20/75............ 7.15 300 9/10/73 - 6/11/79.......... 7.85 300 4/20/65 - 4/21/75 4% 200 6/12/72- 9/10/79........... 6.40 300 7/20/73 -4/21/75........... 7.65 300 12/10/71 - 12/10/79. . . 6.55 350 2/15/72 - 7/21/75........... 5.70 425 200 2/10/72 - 3/10/80........... 6.88 250 7/20/71 - 10/20/75 7.20 300 400 2/16/73 - 7/31/80.......... 5.19 1 10/23/73 - 10/20/75, . 7.40 362 3 1 5 4 0 0 2 1 / 0 1 / 6 1 / / 7 7 3 3 - - 9 7 /1 /3 0 1 / / 8 8 0 0 . . . . . . . . . . . . . . . . . . . . . 7 3. . 1 5 8 0 400 9 4 2 / /2 2 1 0 / / 6 7 6 2 - - 1 2 / / 2 2 0 4 / / 7 7 6 6 ............ 5 6V .0 a 0 3 1 0 23 0 150 1/16/73 - 10/30/80........ 4.46 5 1/22/73 - 4/20/76............ 61/4 373 150 12/11/72 - 12/10/80.... 6.60 300 7/20/66 - 7/20/76.......... 5% 150 6/29/72 - 1/29/81........... 6.15 156 1/21/74 - 7/20/76........... 7.05 360 3/12/73 - 3/10/81........... 7.05 350 4/23/73 - 10/20/76 . . . 7. 15 450 4/18/73 - 4/10/81........... 6.59 26 7/20/73 - 7/20/77............ 71/2 550 3/21/73 - 5/1/81............. 4.50 18 10/20/71 - 10/20/77 6.35 300 2,244 3/12/73 - 5/1/81............. 5.77 2 2/20/63 - 2/20/73-78___ 41/s 148 1/21/71 - 6/10/81 ......... 7.25 250 5/2/66 - 4/20/78............ sy* 150 200 9/10/71 -9/10/81.......... 7.25 250 7/20/72 - 7/20/78.......... 6.40 269 248 6/28/72- 5/1/82............. 5.84 58 10/23/73 - 10/19/78 . . 7.35 550 250 2/10/71 - 6/10/82........... 6.65 250 2/20/67 - 1/22/79............ 5.00 285 9/11/72 - 9/10/82.......... 6.80 200 1/21/74 - 1/22/79............ 7. 10 300 12/10/73 - 12/10/82. . . . 7.35 300 9/15/72 - 4/23/79............ 6.85 235 250 3/11/71 - 6/10/83........... 6.75 200 2/20/74 - 7/23/79............ 7.15 389 53 6/12/73 - 6/10/83........... 7.30 300 10/23/72 - 10/23/79 6.80 400 6 11/10/71 - 9/12/83........ 6.75 250 1/22/73 - 1/21/80............ 6.70 300 71 4/12/71 - 6/11/84........... 6.25 200 7/20/73 - 7/21/80............ 71/2 250 35 12/10/71 - 12/10/84. . . 6.90 250 2/23/71 -4/20/81............ 6.70 224 10 3/10/72 - 3/10/92......... 7.00 200 4/20/72 - 4/20/82............ 6.90 200 21 6/12/72 - 6/10/92.......... 7.05 200 4/23/73 - 10/20/82 ....... 7.30 239 81 12/11/72 - 12/10/97___ 7.10 200 10/23/73 - 10/20/83........ 7.30 300 200 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 36 FEDERAL FINANCE o APRIL 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public : Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes3 ing ing Special Other balance issues Fiscal year: 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 197 3 232,225 246,526 -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 -1,189 2,497 8,377 July-Dee.. .. 106,062 118,579 -12,517 22,038 876 6,351 -823 17,386 956 -1,520 -5,434 1973—Jan.-June. .. 126,164 127,940 -1,776 8,844 -660 5,790 654 1,889 1,503 -88 1,302 July-Dee.. .. 124,253 130,360 -6,107 11,756 477 5,396 824 6,013 -2,202 -191 -2,299 Month: 1973—Feb. r 18,172 20,202 -2,031 4,771 -9 780 119 3,863 408 -134 -1,558 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 1974—Ja...................n 23,476 23,671 -195 -1,714 12 -984 55 -773 168 554 1,681 Feb................ 20,226 21,030 -804 2,503 -17 2,478 169 -162 -2,877 -84 -1,995 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s l T a o n a a d x n d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c i y es G In o v v e t s , t m ac e c n o t u s n o ts f S n L p o e e t c s e s i s a : 3 l E T h q b o e u y l t a d a l l s: s c p o G o N r n o p o s v s w o t .— . r - e d accounts Special Other public private6 issues Fiscal year: 1970........................ 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 1971........................ 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 1972........................ 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41,044 1973........................ 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 51,325 Calendar year: 1972......................... 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 43,459 1973........................ 2,543 7,760 70 10,374 469,898 11,586 107,135 24,467 825 349,058 59,857 Month: 1973—Feb.............. 2,073 9,401 310 11,784 454,838 11,779 95,826 23,430 825 346,537 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 59,857 1974—Jan............... 2,844 7,628 69 10,542 468,184 11,598 106,151 24,521 825 348,285 59,566 Feb.............. 2,017 5,579 69 7,665 470,687 11,581 108,629 24,691 825 348,123 n.a. 1 Equals net expenditures plus net lending. 4 Includes accrued interest payable on public debt securities, deposit 2 The decrease in Federal securities resulting from conversion to private funds, miscellaneous liability and asset accounts, and seigniorage. ownership of Govt.-sponsored corporations (totaling $9,853 million) is 5 As of Jan. 3, 1972, the Treasury operating balance was redefined to not included here. In the bottom panel, however, these conversions de­ exclude the gold balance and to include previously excluded “Other deposi­ crease the outstanding amounts of Federal securities held by the public taries” (deposits in certain commercial depositaries that have been con­ mainly by reductions in agency securities. The Federal National Mortgage verted from a time to a demand basis to permit greater flexibility in Association (FNMA) was converted to private owership in Sept. 1968 and Treasury cash management). the Federal intermediate credit banks (FICB) and banks for coopera­ 6 Includes debt of Federal home loan banks, Federal land banks, R.F.K. tives in Dec. 1968. Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks 3 Represents non-interest-bearing public debt securities issued to the for cooperatives (both beginning Dec. 1968). International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. Note.—Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ FEDERAL FINANCE A 37 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a t t a i x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Total W he i l t d h­ F C p P E t a u i r a l o i e e n m g n c s d n . ­ ­ 1 N w he i o t l h n d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c E t o P a r m n t o a x a t y l e x p r l ­ s i e l b o s u y e a t m S i m n o e e d l p n n f l - s t . 2 i e n U m s n u p - r l . . c O e n i r t p e h e ­ t t e s r 3 t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i e p s ­ t c s . 4 Fiscal year: 197 0 193,74377,416 26,236 13,24090,41235,037 2,20837,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 197 1 188,39276,490 24,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,64983,200 25,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,91415,477 3,287 5,436 3,633 197 3 232,22598,093 27,01921,866 103,24639,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 Half year: 1972—Jan.-June. .. 115,46944,751 20,090 13,56951,27221,664 1,31224,445 1,877 4,736 1,76430,925 6,516 1,449 3,041 1,915 July-Dee.. .. 106,06246,056 5.784 68851,152 15,315 1,45922,493 165 2,437 1,77326,867 8,244 1,551 2,333 2,059 1973—Jan.-June. .. 126,16552,034 21,23521,179 52,091 23,730 1,43430,013 2,206 3,616 1,841 37,675 8,016 1,637 2,584 1,865 July-Dee.. .. 124,25352,961 6,207 999 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 Month: 1973—Feb.. '18,172 ,506 768 1,104 865 193 5,900 167 684 279 '7,030 1,186 255 568 '291 Mar.. 15.987 ,748 1,494 6,833 3,409 5,208 342 4,771 186 63 320 5,340 1,244 278 489 360 Apr.. 25,860 ,648 9,124 6,185 11,587 5,915 258 4,297 1,316 444 302 6,359 1,318 262 330 348 May. 16,584 ,813 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June. 28,537 ,168 3,735 59712,306 8,983 188 4,548 145 95 293 5,081 1,386 273 335 360 July. . 18,121 ,487 681 354 8,814 1,552 202 4,608 382 346 5,336 1,538 276 398 409 Aug., 21,291 ,085 451 257 9,279 904 209 7,087 1,357 333 8,778 1,434 303 494 308 Sept.. 25,007 940 3,903 13511,707 5,477 230 4,812 177 103 317 5,409 1,436 238 373 597 Oct.., 17,637 752 550 71 9,230 1,515 462 4,119 24 217 351 4,712 1,459 291 454 437 Nov.. 20,209 ,811 261 6610,006 939 287 5,578 825 321 6,724 1,563 301 462 501 Dec.. 21.987 887 362 115 9,134 6,201 105 3,760 89 299 4,149 1,536 224 333 515 1974—Jan................... 23,476 9,296 5,076 45 14,327 1,722 160 4,439 170 244 378 5,232 1,263 304 455 334 Feb................... 20,226 9,505 945 1,851 8,601 1,066 248 7,080 214 761 346 8,400 1,315 239 423 429 Budget outlays Com. Gen­ Na­ Nat­ Com­ mun. Educa­ eral Intra- Period tional Intl. Space Agri­ ural merce deve­ tion Health Vet­ Inter­ Gen­ reve­ govt, Total de­ affairs re­ cul­ re­ and lop. and and erans est eral nue trans­ fense search ture sources transp. and man­ wel­ govt. shar­ ac­ hous­ power fare ing tions 5 ing Fiscal year: 197 2 231 876 78 336 3 786 3 422 7 061 3,759 11 197 4 216 10,198 81,536 10,747 20,584 4,889 —7,858 197 3 246,526 76 * 027 3* 182 3*311 6*051 ’556 12,520 4,162 10,821 91,230 12,004 22,785 5,619 76,636 -8,378 19746....................... 274,660 80,573 3,886 3,177 4,039 609 13,521 5,450 10,819 108,263 13,285 27,754 6,800 6,147 -9,963 19756................... 304,445 87,729 4,103 3,272 2,729 3,128 13,400 5,667 11,537 126,353 13,612 29,122 6,774 6,174 -10,717 Half year: 1972—Jan.-June. 120,319 42,583 2,034 1,645 1,062 1,807 5,167 2,035 5,843 43,405 5,744 10,534 2,497 -4,036 July-Dee.. 118,578 35,229 1,639 1,676 4,616 330 6,199 2,637 5,133 43,212 5.740 10,619 2,869 2,617 -4,039 1973—Jan.-June. 127,940 40,677 1,542 1,635 1,435 227 6,320 1,525 5,688 48,018 6,264 12,181 2,749 4,019 -4,339 July-Dee.. 130,360 37,331 1,617 1,501 3,472 763 7,387 3,215 4,772 48,978 6,518 13,440 3,088 3,032 -4,753 Month: 1973—Feb. r 20,202 6,238 230 241 431 230 557 368 906 7,941 1,046 2,052 350 9 -397 Mar.......... 20,806 6,963 323 301 -77 310 1,072 270 786 7,565 1,064 2,097 462 -329 Apr........... 22,306 6,417 237 265 368 324 793 243 788 8,058 1,114 2,120 409 1,493 -324 May......... 20,157 6,401 136 255 -155 298 907 -148 1,066 8,124 1,017 2,165 466 3 -377 June......... 20,814 8,015 486 301 -126 118 1,434 309 1,336 8,234 866 2,004 452 -2,616 July.......... 22,607 4,878 308 278 2,011 942 2,104 911 111 7,792 1,099 2,184 563 i ,495 -850 Aug.......... 22,139 6,772 327 262 440 573 1,090 779 954 7,935 1,054 2,159 466 -3 -670 Sept.......... 20,736 6,095 205 246 -35 422 957 712 661 8,302 970 2,392 643 16 -849 Oct............ 23,092 6,607 282 248 503 416 1,260 561 955 8,040 1,058 2,135 479 1,494 -850 Nov.......... 22,099 6,900 276 246 782 424 912 36 805 8,373 1,194 2,401 438 29 -717 Dec........... 19,686 6,079 219 221 -228 -130 1,064 316 619 8,534 1,143 2,169 498 -816 1974—Ja..............n 23,671 6,793 351 251 756 -544 886 331 983 9,067 1,204 2,353 636 1,532 -929 Feb........... 21,030 6,509 224 231 138 581 363 198 932 8,979 1,088 2,466 520 778 -677 1 Collections of these receipts, totaling $2,427 million for fiscal year 6 Estimates presented in the Jan. 1975 Budget Document. Breakdowns do 1973, were included as part of non withheld income taxes prior to Feb. not add to totals because special allowances for contingencies, Federal 1914. pay increase (excluding Department of Defense), and acceleration of energy 2 Old-age, disability, and hospital insurance, and Railroad Retirement research and development, totaling $300 million for fiscal 1974, and $1,561 accounts. million for fiscal 1975, are not included. 3 Supplementary medical insurance premiums and Federal employee 7 Contains retroactive payments of $2,617 million for fiscal 1972. retirement contributions. 4 Deposits of earnings by Federal Reserve Banks and other miscellane­ Note.—Half years may not add to fiscal year totals due to revisions in ous receipts. series that are not yet available on a monthly basis. 5 Consists of Government contributions for employee retirement and of interest received by trust funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES □ APRIL 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l t s a i s l c 1 Total Total Bills M C a c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n l r n e d t­ ­ s Total N 3 on F i m s o s a u r r e e k i s g e t n 4 a ble b S o in a n g v d s ­ s i S ss p u e e c s i a 5 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24! 6 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—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 Feb. 470.7 360.0 269.7 107.9 126. 1 35.7 2.3 88.1 25.4 61.3 108.6 Mar. 474.5 364.2 273.6 111.9 126. 1 35.6 2.3 88.3 25.2 61.6 108.5 1 Includes non-interest-bearing debt (of which $618 million on Mar. 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 i t s l c ag G t U a e r o n n u . v S c d s t i . t . es B F a . n R k . s Total m C b e a o r n c m 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 c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t i s h s e c e s . 2 r ­ funds bonds securities 1939—Dec................ 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259. 1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2. 1 9.3 1967—Dec................ 344.7 73.1 49.1 222.4 63.8 '4.2 r9.0 12.2 24. 1 51.2 '22.3 15.8 19.9 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 '3.8 '•8.4 14.2 24.9 51.9 '23.3 14.3 21.9 1969—Dec................ 368.2 89.0 57.2 222.0 56.8 '3. 1 '7.6 10.4 27.2 51.8 '29.0 11.2 25.0 1970—Dec................ 389.2 97.1 62. 1 229.9 62.7 r3.1 '7.4 7.3 27.8 52. 1 '29. 1 20.6 19.9 1971-Dec................ 424. 1 106.0 70.2 247.9 65.3 r3. 1 n. 0 11.4 25.4 54.4 '18.8 46.9 15.6 1972—Dec................ 449.3 116.9 69.9 262.5 67.7 r3.4 '6.6 9.8 28.9 57.7 '16.2 55.3 '17.0 1973—Mar............... 458.6 117.9 74.3 266.4 62.0 '3.4 >-6.5 11.2 29.4 58.6 16.8 63. 1 '15.5 Apr................ 457.1 117.9 75.5 263.7 60.5 r3.4 r6. 3 10.0 29.2 58.9 16.6 61.7 '17.2 May............... 457.3 120.1 74.1 263.1 58.9 '3. 3 '6.3 10.8 28.6 59.2 16.5 61. 1 '18.4 June.............. 458.1 123.4 75.0 259.7 58.8 '3. 3 r6. 3 9.8 28.8 59.5 16.4 60.2 '16.6 July............... 459.0 125.0 77.1 256.9 56.5 r3.1 '6.4 10.3 28.4 59.7 17.0 59.7 '15.8 Aug............... 461.8 128.7 76. 1 257.1 55.1 r2.9 '6.3 11.5 27.7 59.8 17.2 59.2 '17.3 Sept............... 461.4 127.8 76.2 257.4 55.4 '2.9 '6.3 9.2 29.0 59.8 17.3 58.5 '18.9 Oct................. 462.5 127.4 78.5 256.5 56.3 r2.9 '6.3 10.2 28.5 60.0 17.0 57.5 '17.9 Nov............... 464.0 127. 1 77.1 259.8 58.5 r2.9 '6.2 11.1 28.9 60.3 16.9 56.2 '18.9 Dec................ 469.9 129.6 78.5 261.7 60.3 r2.9 '6.4 10.9 29.2 60.3 16.9 55.6 '19.3 1974—Jan................. 468.2 128.7 78.2 261.2 60.2 2.8 6.3 10.7 29.9 60.5 16.9 52.8 21.1 Feb................ 470.7 131.3 78.2 261.1 58.2 2.8 6.0 10.9 30.7 60.8 17.0 53.6 21.2 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 o U.S. GOVERNMENT SECURITIES A 39 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 1971—Dec. 31........................................................ 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Dec. 31........................................................ 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31........................................................ 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Jan. 31........................................................ 270,131 141,590 107,805 33,785 81,715 25,131 15,596 6,098 Feb. 28........................................................ 269,650 141,444 107,850 33,594 79,045 26,968 16,128 6,063 U.S. Govt, agencies and trust funds: 1971—Dec. 31................................................ 18,444 1,380 605 775 7,614 4,676 2,319 2,456 1972—Dec. 31................................................ 19,360 1,609 674 935 6,418 5,487 4,317 1,530 1973—Dec. 31................................................ 20,962 2,220 631 1,589 7,714 4-, 389 5,019 1,620 1974—Jan. 31................................................ 21,095 2,334 763 1,571 7,715 4,387 5,039 1,620 Feb. 28................................................ 21,234 2,391 694 1,697 7,355 4,603 5,264 1,620 Federal Reserve Banks: 1971—Dec. 31................................................ 70,218 36,032 31,033 4,^99 25,299 7,702 584 601 1972—Dec. 31........................................ 69,906 37,750 29,745 8,005 24,497 6,109 1,414 136 1973—Dec. 31................................................ 78,516 46,189 36.928 9,261 23,062 7,504 1,577 184 1974—Jan. 31................................................ 78,240 45,770 36,500 9,270 23,128 7,580 1,577 184 Feb. 28................................................ 78,237 46,425 36,467 9,958 22,236 7,780 1,612 184 Held by private investors: 1971—Dec. 31................................................ 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 1972—Dec. 31................................................ 180,243 91,063 73,451 17,612 57,649 17,547 9,570 4,413 1973—Dec. 31................................................ 170,746 93,162 70,227 22,935 50,939 13,241 9,063 4,341 1974—Jan. 31................................................ 170,796 93,486 70,542 22,944 50,872 13,164 8,980 4,294 Feb. 28................................................ 170,179 92,628 70,689 21,939 49,454 14,585 9,252 4,259 Commercial banks: 1971—Dec. 31......................................... 51,363 14,920 8,287 6,633 28,823 6,847 555 217 1972—Dec. 31......................................... 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Dec. 31........................................ 45,737 17,499 7,901 9,598 22,878 4,022 1,065 272 1974—Jan. 31......................................... 45,848 17,657 8,260 9,397 22,960 4,036 921 274 Feb. 28......................................... 45,369 16,441 7,336 9,105 22,450 5,142 1,070 265 Mutual savings banks: 1971—Dec. 31........................................ 2,742 416 235 181 1,221 499 281 326 1972—Dec. 31........................................ 2,609 590 309 281 1,152 469 274 124 1973—Dec. 31........................................ 1,955 562 222 340 750 211 300 131 1974—Jan. 31......................................... 1,911 535 229 306 754 212 292 118 Feb. 28........................................ 1,834 493 221 272 704 228 291 117 Insurance companies: 1971—Dec. 31......................................... 5,679 720 325 395 1,499 993 1,366 1,102 1972—Dec. 31........................................ 5,220 799 448 351 1,190 976 1,593 661 1973—Dec. 31........................................ 4,956 779 312 467 1,073 1,278 1,301 523 1974—Jan. 31......................................... 4,931 762 314 448 1,085 1,282 1,297 504 Feb. 28......................................... 4,858 710 298 412 1,068 1,269 1,276 510 Nonfinancial corporations: 1971—Dec. 31......................................... 6,021 4,191 3,280 911 1,492 301 16 20 1972—Dec. 31........................................ 4,948 3,604 1,198 2,406 1,198 121 25 1 1973—Dec 31........................................ 4,905 3,295 1,695 1,600 1,281 260 54 15 1974—Jan. 31......................................... 4,600 2,958 1,461 1,497 1,326 253 47 16 Feb. 28........................................ 4,765 2,877 1,632 1,245 1,386 351 136 15 Savings and loan associations: 1971—Dec. 31........................................ 3,002 629 343 286 1,449 587 162 175 1972—Dec. 31......................................... 2,873 820 498 322 1,140 605 226 81 1973—Dec. 31........................................ 2,103 576 121 455 1,011 320 151 45 1974—Jan. 31......................................... 2,179 600 141 459 1,035 324 170 50 Feb. 28........................................ 2,116 580 159 421 978 338 169 50 State and local governments: 1971—Dec. 31........................................ 9,823 4,592 3,832 760 2,268 783 918 1,263 1972—Dec. 31......................................... 10,904 6,159 5,203 956 2,033 816 1,298 598 1973—Dec. 31........................................ 9,829 5,845 4,483 1,362 1,870 778 1,003 332 1974—Jan. 31......................................... 10,322 6,096 4,685 1,411 2.036 850 1,002 337 Feb. 28........................................ 10,834 7,035 5,604 1,431 1,834 805 836 325 All others: 1971—Dec. 31........................................ 94,746 56,261 49,565 6,696 23,983 6,933 3,329 4,237 1972—Dec. 31........................................ 101,249 61,014 55,506 5,508 23.171 8,906 5,290. 2,868 1973—Dec. 31........................................ 101,261 64,606 55,493 9,113 22;076 6,372 5,189 3,023 1974—Jan. 31......................................... 101,005 64,878 55,452 9,426 21,676 6,207 5,251 2,995 Feb. 28........................................ 100,403 64.492 55,439 9,053 21,034 6,425 5,474 2,977 Note.—Direct public issues only. Based on Treasury Survey of banks, and 737 insurance companies combined, each about 90 per cent; Ownership. (2) 463 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) 5,601 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 U.S. GOVERNMENT SECURITIES □ APRIL 1974 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1973—Feb............................... 4,155 2,975 721 370 89 888 808 1,360 1,099 645 Mar.............................. 3,077 2,311 508 201 57 713 585 987 792 664 Apr............................... 3,185 2,535 440 165 46 709 636 1,075 766 714 May............................. 3,187 2,390 322 323 153 661 543 1,057 927 687 June............................. 2,969 2,335 289 228 118 593 622 975 778 732 July............................... 2,993 2,330 367 226 72 581 632 982 798 700 Aug.............................. 3,366 2,403 706 172 85 566 874 1,044 881 771 Sept.............................. 3,884 3,021 644 158 61 583 1,182 1,142 977 1,048 Oct................................ 3,384 2,798 374 163 48 568 954 1,073 789 810 Nov.............................. 4,022 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 1974—Jan................................ 3,659 3,074 325 215 45 706 889 1,103 962 695 Feb............................... 4,229 3,192 402 561 74 795 1,058 1,299 1,077 1,019 Week ending— 1974—Feb. 6....................... 6,411 5,030 479 849 53 1,142 1,812 1,910 1,546 1,297 13....................... 4,095 2,874 558 574 90 811 1,072 1,241 971 847 20....................... 3,741 2,923 339 390 90 745 833 1,138 1,026 923 27....................... 3,344 2,522 321 426 74 642 753 1,047 902 981 Mar. 6....................... 3,125 2,339 358 354 74 667 755 894 810 811 13....................... 3,673 2,813 437 349 73 713 1,004 1,080 876 671 20....................... 3,520 2,741 363 367 49 735 822 969 995 542 27....................... 3,908 2,978 444 426 60 748 884 1,238 1,038 1,011 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U„S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 rs 0 y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period sou A r l c l es Y N C o i e t r w y k w E h ls e e r ­ e C t o io rp ns o r 1 a­ ot A h l e l r: 1973—Feb................. 3,394 3,365 -9 -1 39 202 1973--Feb............. 3,415 1,063 455 490 1,408 Mar................ 2,702 3,130 -274 -143 -11 180 2,799 903 292 281 1,323 Apr................ 2,795 3,105 -159 -143 -9 274 3,032 935 513 311 1,273 May............... 2,626 2,596 -324 179 175 356 2,667 674 452 252 1,291 June............... 2,976 2,818 -165 91 232 744 3,769 1,242 690 431 1,406 July............... 1,901 2,062 -250 -43 131 511 July........... 2,826 725 544 510 1,047 Aug................ 1,788 1,977 -94 -107 12 273 2,318 829 327 386 111 Sept................ 3,201 2,958 316 -111 38 799 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 4,469 1,809 900 570 1,190 Dec................ 4,441 3,697 223 396 124 1,400 5,468 2,322 1,147 671 1,329 1974—Jan................. 3,653 3,210 51 262 130 1,324 1974- 4,948 1,894 1,253 658 1,143 Feb................. 4,081 2,707 537 647 190 1,434 4,996 1,704 1,503 533 1,257 Week ending— Weekending— 1974—Jan. 2........ 3,778 3,080 220 331 147 1,535 1974—Jan. 2... 5,214 2,035 1,168 606 1,404 9 , , 3,702 3,214 61 283 144 1,372 9... 4,940 1,999 1,160 625 1,155 16........ 3,659 3,259 47 225 128 1,316 16. .. 5,063 2,092 1,285 624 1,062 23 , 3,801 3,323 80 264 134 1,293 23... 5,072 1,903 1,311 768 1,090 30........ 3,519 3,147 -7 268 112 1,279 30... 4,778 1,616 1,309 666 1,187 Feb. 6. , . 3,667 3,024 126 414 102 1,359 Feb. 6... 4,577 1 ,698 1,482 413 985 13. . , . 5,005 3,179 818 797 212 1,462 13. .. 5,121 1 ,839 1,567 422 1,293 20 4,055 2,388 672 779 216 1,523 20. .. 5,301 1,627 1,499 635 1,541 27. . . 3,631 2,271 530 612 217 1,416 21... 4,922 1,674 1,496 635 1,117 Note.—The figures include all securities sold by dealers under repur­ i All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 o U.S. GOVERNMENT SECURITIES A 41 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 1974 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds Apr. 4, 1974. 4.302 Aug. 27, 1974... 1,805 Aug. 15, 1975.....57/8 7,679 May 15, .414 2,847 Apr. 9, 1974. 1,802 Aug. 29, 1974... 1,801 Sept. 30, 1975.....83/g 2,042 Nov. 15, 1974....•37/g 1,213 Apr. 11, 1974. 4,308 Sept. 5,1974... 1,805 Oct. 1, 1975....•1% 30 May 15, 1975-85..414 1,201 Apr. 18, 1974. 4,304 Sept. 12, 1974. . . 1,802 Nov. 15, 1975.....7 3,115 June 15, 1978-83..314 1,477 Apr. 19, 1974f 4,525 Sept. 19, 1974. . . 1,801 Dec. 31, 1975 . , ..7 1,731 Feb. 15, 2,573 Apr. 25, 1974. 4.307 Sept. 24, 1974... 1,802 Feb. 15, 1976.....6V4 3,739 Nov. 15, 1980....• 3% 1,896 May 2, 1974. 4.308 Sept. 26, 1974. . . 1,801 Feb. 15, 1976 ... .57/8 4,945 Aug. 15, 807 May 7, 1974. 1,800 Oct. 22, 1974... 1,802 Apr. 1, •1 % 27 Feb. 15, 1982.....63/8 2,702 May 9, 1974. 4,306 Nov. 19, 1974... 1,801 May 15, 1976.....5*4 2,802 Aug. 15, .63/g 2,353 May 16, 1974. 4.303 Dec- 17, 1974... 1,803 May 15, 1976.....6% 2,697 May 15, 1985.....3% 943 May 23, 1974. 4.303 Jan. 14, 1975... 1,802 Aug. 15, 1976.....7 % 4,194 Nov. 15, 1986.....61/8 1,216 May 30, 1974. 4.301 Feb. 11, 1975... 1,802 Aug. 15, 1976.....6 % 3,883 Aug. 15, 1987-92..41/4 3,678 June 4,1974.. 1,801 Oct. 1, 1976.....1% 11 Feb. 15, 1988-93..4 227 June 6, 1974. 4.301 Nov. 15, 1976 ... .6 y4 4,325 May 15, 1989-94..41/8 1,456 June 13, 1974. 4.303 Feb. 15, 1977.....8 5,163 Feb. 15, 1990....• 3% 3,932 June 20, 1974. 4,300 Treasury notes Apr. 1,1977___ .1% 5 Feb. 15, 1993___ .634 627 June 21, 1974f 4,522 Apr. 1, 1974........1% 34 May 15, 1977.....67/8 2,565 Aug. 15, 1993 •7% 1,914 June 27, 1974. 4.303 May 15, 1974........iy4 4,334 Aug. 15, 1977.....73/4 4,918 Feb. 15, 827 July 2, 1974. 1,802 Aug. 15, 1974........55/s 10,284 Oct. 1, 1977,....1 % 17 May 15, 1993-98..7 692 July 5, 1974. 1.803 Sept. 30, 1974........6 2,060 Feb. 15, 1978.....61/i 8,389 Nov. 15, 1998.....3% 3,066 July 11, 1974. 1,810 Oct. 1, 1974........1% 42 Apr. 1, 1978, ,..1% 15 July 18, 1974. 1,811 Nov. 15, 1974........Sy4 5,442 Oct. 1, 1978,,,.AYi 3 July 25, 1974. 1,798 Dec. 31, 1974........5% 2,102 Nov. 15, 1978...,.6 8,207 July 30, 1974. 1.804 Feb. 15, 1975........5 y4 4,015 Aug. 15, 1979.....614 4,559 Convertiblebonds Aug. 1, 1974. 1,803 Feb. 15, 1975........5% 1,222 Nov. 15, 1979.....65/8 1,604 Investment Series B Aug. 8, 1974. 1,802 Apr. 1, 1975........U/i 8 Nov. 15, 1979 ,,.7 2,241 Apr. 1, 1975-80..234 2,272 Aug. 15, 1974. 1,800 May 15, 1975........5% 1,776 May 15, 1980... ..67/8 7,265 Aug. 22, 1974. 1,797 May 15, 1975........6 6,760 Feb. 15, 1981 .7 1,842 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U. S Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ D K f . l 0 u V e C- HAAl G l U o o a . v S n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u 5 s­ V a a e n i t s d e * r­ O p p o t u h s r e e ­ s r gations auth. 1964............... 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965............... 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3 311 1966............... 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967............... 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968............... 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969............... 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 1970............... 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971............... 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972............... 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 1973............... 23,970 12,257 10,632 1,022 58 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 I973 r—Jan... 1,977 1,152 822 3 602 454 921 1,809 369 215 420 117 688 Feb... 1,515 782 731 1 47 565 903 1,411 365 67 416 10 551 Mar. . 2,467 1,228 930 303 6 613 918 936 2,210 374 153 501 347 833 Apr... 1,826 870 947 9 159 731 934 1,757 306 12 452 88 898 May.. 1,939 825 1,106 8 291 945 703 1,775 299 233 430 224 588 June.. 2,152 1,025 861 261 5 189 1,082 881 2,144 542 102 643 334 523 July.. 2,028 1,458 564 6 516 363 1,149 2,001 391 231 366 3 1,009 Aug... 1,657 1,067 588 2 529 498 630 1,602 311 30 352 290 618 Sept.. 1,750 721 741 285 2 236 828 675 1,653 327 66 579 384 298 Oct... 2,313 1,344 964 6 337 842 1,135 2,163 299 142 412 251 1,060 Nov.. 2,257 866 1,383 9 243 1,247 766 1,929 356 42 596 247 687 Dec... 2,089 919 919 173 1 450 1,022 616 1,954 372 165 487 344 582 1974—Jan... . 2,183 1,391 790 2 208 823 1,152 2,117 594 35 374 56 1,059 Feb.... 1,862 1,135 727 1 472 508 883 1,812 438 53 580 34 707 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. and 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 42 SECURITY ISSUES □ APRIL 1974 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o . v S t . . an S d t a lo te c al Other5 Total Govt.2 agency3 (U.S.)4 Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1964.................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965.................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966.................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967.................... 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968.................... 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969.................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1970..................... 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 1971..................... 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972..................... 96,522 17,080 12,825 23,070 1,589 41,957 28,896 19,434 9,462 3,367 9,694 1972—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 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 558 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........... 8,924 485 2,612 2,232 196 3,398 2,358 1,805 553 355 685 Nov.......... 12,553 4,521 2,200 2,224 45 3,563 2,257 1,669 589 637 668 Dec........... 6,635 148 1,032 1,966 251 3,238 2,469 1,552 917 196 573 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 196 4 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 196 5 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 196 6 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 196 7 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 196 8 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 196 9 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 197 0 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 197 1 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 197 2 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 2,095 1972—Dec. 486 103 343 149 214 25 491 370 34 17 1,057 107 1973—Jan.. 113 63 89 105 120 1 529 371 30 3 395 509 Feb.. 178 35 118 111 96 4 319 277 58 117 290 461 Mar. 772 125 177 327 317 6 1,076 1,351 548 668 1,462 1,397 Apr. 772 22 237 139 91 1 150 369 258 743 228 May 387 12 30 143 236 8 361 410 355 19 351 231 June 703 25 133 89 183 1,099 497 303 29 337 181 July. 364 169 139 112 250 i 651 269 244 60 223 151 Aug. 230 49 149 129 83 15 419 90 320 5 182 136 Sept. 270 78 149 96 140 2 334 252 228 16 244 106 Oct.. 472 52 63 147 114 342 608 633 46 734 193 Nov. 383 93 61 92 241 4 584 496 296 499 692 122 Dec. 485 18 145 285 226 6 569 319 350 27 693 115 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

APRIL 1974 □ SECURITY ISSUES A 43 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 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 1973*..................... 35,058 11,804 23,252 21,501 8,810 12,691 13,554 2,993 10,561 1972—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 IV............... 10,783 4,378 6,405 7,013 3,786 3,227 3,768 591 3,177 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1970....................... 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1971....................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972....................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973....................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,389 3,522 3,141 1972—IV............... 116 290 575 479 179 47 1,056 1,735 944 89 1,920 580 1973—1.................. 135 63 -174 377 127 -43 844 1,170 520 185 965 1,244 II................ 632 -2 119 327 327 7 1,136 1,276 842 562 1,049 673 Ill.............. 165 450 108 247 414 -44 1,217 557 752 77 284 260 IV............... -131 147 -162 460 176 -13 1,068 1,506 1,051 575 1,224 964 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 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 1973—Feb... 327 530 -203 54,083 3,375 50,708 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Mar... 519 531 -12 53,377 3,774 49,603 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Apr... 300 452 -120 50,837 3,837 46,464 May.. 285 446 -161 48,588 4,154 44,434 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 June.. 303 349 -46 48,127 4,164 43,963 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 July. . 364 357 -7 50,933 4,594 46,339 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Aug. . 239 432 -193 49,553 4,567 44,986 Sept... 330 395 -65 52,322 4,641 47,681 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Oct.. . 305 559 -254 51,952 4,168 47,784 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Nov... 502 542 -40 45,814 4,126 41,688 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 Dec... 349 392 -43 46,518 4,002 42,516 1971.............. 5,145 4,751 774 56,694 3,163 53,531 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 Feb... 215 303 -88 45,958 4,447 41,511 1973.............. 4,358 5,651 1,261 46,518 4,002 42,516 1 Includes contractual and regular single-purchase sales, voluntary and 3 Cash and deposits, receivables, all U.S. Govt, securities, and other contractual accumulation plan sales, and reinvestment of investment in- short-term debt securities, less current liabilities. come dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Note.—Investment Company Institute data based on reports of mem­ bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 BUSINESS FINANCE □ APRIL 1974 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e a ro f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i e t s s d ­ co c a n a t l s i l p o o u i n w t m a ­ l p ­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a t n a l i s l o p o u n i w t m a ­ l p ­ ances 1 ances 1 1966. 84.2 34.3 49.9 20.8 29.1 39.5 1972—1........ 92.8 40.6 52.2 25.7 26.5 63.4 1967. 79.8 33.2 46.6 21.4 25.3 43.0 II....... 94.8 41.4 53.4 25.9 27.5 66.2 III.... 98.4 42.9 55.6 26.2 29.4 66.0 1968. 87.6 39.9 47.8 23.6 24.2 46.8 IV.... 106.1 45.9 60.3 26.4 33.9 68.0 1969. 84.9 40.1 44.8 24.3 20.5 51.9 1970. 74.0 34.8 39.3 24.7 14.6 56.0 1973—1........ 119.6 52.7 66.9 26.9 40.0 69.3 1971. 85.1 37.4 47.6 25.1 22.5 60.4 II....... 128.9 57.4 71.6 27.3 44.2 70.5 1972. 98.0 42.7 55.4 26.0 29.3 65.9 III.... 129.0 57.6 71.5 28.1 43.4 71.7 1973* 126.4 55.9 70.5 27.8 42.7 71.3 IV*... 128.1 56.0 72.0 29.0 43.0 73.7 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 ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1968.............................. 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 1969.............................. 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—IV...................... 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971—1......................... 192.0 494.1 48.5 7.8 4.2 201.3 198.5 33.8 302.1 6.1 195.7 13.7 86.6 II....................... 196.5 498.2 51.1 7.7 3.9 203.3 199.2 33.1 301.7 5.3 195.8 12.4 88.3 Ill..................... 200.9 507.2 52.4 7.8 3.9 206.5 201.6 34.9 306.3 5.0 197.4 13.8 90.1 IV..................... 204.9 516.7 55.3 10.4 3.5 207.5 203.1 36.8 311.8 4.9 202.8 14.5 89.7 1972—1......................... 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 202.5 15.7 93.3 II....................... 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 204.0 13.4 96.8 Ill..................... 219.3 545.5 57.3 7.6 2.9 222.5 215.2 39.8 326.2 4.7 207.6 15.0 98.9 IV..................... 224.3 561.1 60.3 9.7 3.4 228.9 218.2 40.7 336.8 4.0 216.9 16.7 99.2 1973—1......................... 231.4 577.1 61.0 10.4 3.2 234.0 225.9 42.5 345.7 4.1 218.1 18.6 104.9 II....................... 237.8 594.7 62.2 9.4 2.9 243.7 233.5 43.0 356.9 4.5 227.6 16.5 108.3 Ill..................... 241.8 611.4 62.0 9.2 3.0 252.2 241.5 43.5 369.6 4.4 235.7 18.1 111.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note : Based on Securities and Exchange Commission estimates. offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Mining n C i o c m ati m on u s ­ Other1 T (S o .A ta . l Durable d N ur o a n b ­ le R ro a a i d l­ Air Other Electric and G a o s th er A.R.) 1969....................... 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970....................... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972....................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973....................... 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.91 2.76 12.85 21.40 1971—IV................ 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—1.................. 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II............... 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 Ill............... 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV............... 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—1.................. 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II................. 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill............... 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV............... 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 103.74 1974—12................ 23.92 4.85 4.54 .75 .50 .48 .39 3.99 .53 7.!?0 107.18 112............... 27.83 5.54 5.60 .80 .60 .65 .41 4.48 .91 8.83 109.96 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

APRIL 1974 □ REAL ESTATE CREDIT A 45 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti es5 Mo ty rt p g e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n c i i n i s o a a t n l i n ­ s ­ 1 a U c g i e . e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t i n i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ w u F V n r H i d A t A e te - r n - - t C i v o e o n n n a ­ ­ l 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 11.2 204.0 196 5 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 196 6 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 196 7 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 196 8 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 196............9 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 197 0 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109.2 311.3 197 1 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 197 2 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 131.1 398.9 1971—III. 485.6 383.5 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.7 153.5 125.8 27.7 117.5 335.7 IV. . 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 1972—1..., 511.7 404.2 41.2 66.4 33.5 9.9 23.6 478.2 314.1 259.6 54.5 164.1 134.6 29.4 123.7 354.5 II. . 529.1 418.9 42.7 67.5 34.4 10.2 24.2 494.8 324.6 268.8 55.8 170.2 140.0 30.3 126.6 368.2 III. 547.3 434.6 44.3 68.3 35.0 10.3 24.7 512.3 335.8 279.2 56.6 176.5 145.1 31.3 129.0 383.3 IV. . 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 131.1 398.9 1973—1... 580.1 463.3 47.3 69.5 36.5 10.7 25.8 543.6 353.9 296.3 57.6 189.7 156.4 33.4 132.5 411.1 II. . 600.4 480.5 49.0 71.0 37.7 11.0 26.7 562.7 365.7 306.9 58.8 197.0 162.5 34.5 133.6 429.1 619.9 494.9 53.0 71.9 38.7 11.4 27.3 581.2 376.6 315.0 61.6 204.5 168.5 36.0 1 Commercial banks (including nondeposit trust companies but not 4 For multifamily and total residential properties, see tables below. trust depts.), mutual savings banks, life insurance companies, and savings 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. and loan assns. 2 U.S. agencies include former Federal National Mortgage Assoc, and, 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone beginning fourth quarter 1968, new Government National Mortgage are shown in table below. Assoc, as well as Federal Housing Admin., Veterans Admin., Public Hous­ ing Admin., Farmers Home Admin. They also include U.S. sponsored Note.—Based on data from Federal Deposit Insurance Corp., Federal agencies—new FNMA, Federal land banks, GNMA (Pools), and the Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul­ Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts ture and Commerce, FNMA, FHA, 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 Multifamily1 underwritten Con­ E pe n r d io o d f Total Fi c n ia a l n­ Other Total Fi c n ia a l n­ Other End of period Total Total FH in A ­ - g V u A ar - - ti v o e n n a ­ l insti­ holders insti­ holders sured anteed1 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 8.5 196 5 212.9 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 1 1 1 9 9 9 6 6 6 8 7 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 6 9 8 4 8 0. . . 0 0 6 2 2 2 2 5 3 3 0 6 . . . 7 8 6 4 4 4 0 7 3 . . . 3 8 4 4 4 4 0 7 3 . . . 3 3 9 3 3 31 4 7 . . . 5 7 7 9 9 8 . . . 2 8 7 1 1 1 9 9 9 6 6 6 9 7 8 2 2 2 3 6 5 6 6 1 . . . 1 8 2 9 7 8 0 9 4 . . . 2 9 4 5 5 4 4 0 7 . . . 5 6 4 3 3 32 5 3. . . 5 8 7 1 1 1 7 5 6 6 6 6 . . . 1 8 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 1 1 9 97 72 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 2 7 2 4 . . 5 7 3 3 4 06 7 . . 1 9 6 7 8 4 . . 5 6 7 66 6 . . 8 4 5 59 2 . . 1 0 1 1 7 4 . . 3 9 197 2 346.1 113.0 68.2 44.7 233.1 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 Il I l . ... . . . .. . . . . 4 3 0 9 9 5 . . 3 8 3 3 3 2 6 4 . . 1 1 7 7 3 1 . . 2 7 7 7 3 1 . . 5 3 5 5 6 5 . . 9 3 1 1 6 6 . . 6 0 I IV II. . 3 3 3 46 5 . . 1 8 1 1 1 1 1 3 . . 5 0 6 6 8 8 . . 2 4 4 4 4 3. . 1 7 2 2 3 2 3 4 . . 1 3 IV....... 422.5 347.9 74.6 76.4 59.1 17.3 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 Ill* 376.6 IIIp. . . 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. sta N nd o i t n e g .— ” t B a a b s le e d a b o o n v e d . ata from same source as for “Mortgage Debt Out­ est N im o a t t e e . s — . F F o o r r c t o o n ta v l e n d ti e o b n t a l, o u fi t g s u ta r n es d i a n r g e , de fi r g iv u e re d s . are FHLBB and F.R. 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 46 REAL ESTATE CREDIT □ APRIL 1974 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings i Mutual savings bank holdings Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in­ guar­ ven­ Total in­ guar- ven­ sured anteed tional sured anteed tional 196 5 49,675 32,387 7,702 2,( 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 196 9 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 197 0 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 197 1 82,515 52,004 8,310 3,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 8,901 50 197 2 99.314 62.782 8.495 3.203 51.084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 10,354 62 1972—1.. 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 9,195 50 II. 90,114 56.782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 9,586 60 Ill 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV. 99.314 62.782 8.495 3.203 51.084 31,751 4,781 67,556 57,140 16,013 12,622 28,505 10,354 62 1973—1.. 103,548 65,236 33,342 4,970 68,920 58,169 10,683 68 II. 109,114 68,650 8,482 3,211 56/957 35,224 5,240 70,634 59,397 11,178 59 Ill 114,414 71,852 37,070 5,492 72,034 60,305 11,670 59 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) Non farm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - - d Other i Farm Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other Farm 1945.............................................. 976 6,637 5,860 1,394 4,466 766 1964.............................................. 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965.............................................. 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966.............................................. 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 1967.............................................. 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968.............................................. 7,925 7,153 733 346 6,074 772 69,973 64,172 11,961 5,954 46,257 5,801 1969.............................................. 7,531 6,991 594 220 6,177 540 72,027 66,254 11,715 5,701 48,838 5,773 1970.............................................. 7,181 6,867 386 88 6,393 314 74,375 68,726 11,419 5,394 51,913 5,649 1971.............................................. 7,573 7,070 322 101 6,647 503 75,496 69,895 10,767 5,004 54,124 5,601 1972.............................................. 8,696 7,996 331 182 7,483 700 76,948 71,270 9,962 4,660 56,648 5,678 1973...........•................................. 11,122 10,109 280 240 9,589 1,013 81,180 75,193 9,212 4,396 61,585 5,987 1973—Jan.r.................................. 725 662 17 21 624 63 77,105 71,473 9,930 4,641 56,902 5,632 Feb.................................... 603 542 27 24 491 61 77,510 71,892 9,806 4,613 57,473 5,618 Mar.................................... 670 573 37 24 512 97 77,587 71,953 9,735 4,594 57,624 5,634 Apr.................................... 702 624 20 22 582 78 77,258 71,611 9,708 4,572 57,331 5,647 May................................... 774 694 22 21 651 80 77,400 71,721 9,627 4,549 57,545 5,679 June................................... 1,101 1,009 24 27 958 92 77,914 72,187 9,544 4,524 58,119 5,727 July.................................... 933 849 26 19 804 84 78,243 72,474 9,464 4,496 58,514 5,769 Aug.................................... 1,034 947 11 20 916 87 78,657 72,839 9,388 4,471 58,980 5,818 Sept.................................... 944 862 23 17 822 82 79,040 73,182 9,330 4,447 59,405 5,858 Oct..................................... 972 899 13 18 868 73 79,516 73,619 9,270 4,428 59,921 5,897 Nov.................................... 1,146 1,051 25 15 1,011 95 80,191 74,261 9,233 4,414 60,614 5,930 Dec.................................... 1,532 1,410 36 13 1,361 122 81,180 75,193 9,212 4,396 61,585 5,987 1974—Jan..................................... 932 845 8 14 823 87 81,490 75,534 9,150 4,380 62,004 5,956 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

APRIL 1974 □ REAL ESTATE CREDIT A 47 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period N of u l m oa b n e s r ( c m o ( a i d m m l o l m i l o o l u a i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t r n a e t c t r r e e e a s n c t t t ) (y M rs a . t /m ur o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C ( a p t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 1968........................... 2,569 3,244.3 1,263 7.66 22/11 73.6 9.0 1.30 9.5 1969........................... 1,788 2,920.7 1,633 8.69 21/8 73.3 9.6 1.29 10.2 1970........................... 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 1971........................... 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1972........................... 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1971—Nov................ 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 10.2 Dec................. 133 290.0 2,181 8.96 23 74.4 9.9 1.30 10.2 1972—Jan................. 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 10.2 Feb................. 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 10.0 Mar................ 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 9.7 Apr................. 200 381.1 1,906 8.44 24/6 76.3 9.5 1.29 9.6 May............... 246 399.6 1,624 8.48 23/4 76.0 9.5 1.26 9.8 June............... 268 683.2 2,549 8.55 23/0 75.4 9.5 1.29 9.8 July................ 170 421.2 2,478 8.56 23/0 74.5 9.5 1.31 9.8 Aug................ 178 515.7 2,897 8.54 23/0 74.9 9.5 1.27 9.9 Sept................ 152 354.1 2,329 8.58 23/4 75.7 9.5 1.28 9.8 Oct................. 159 343.5 2,161 8.65 23/0 75.8 9.6 1.29 9.9 Nov................ 180 371.7 2,065 8.63 23/2 74.7 9.6 1.28 9.9 Dec................. 130 363.9 2,799 8.64 22/8 74.4 9.8 1.37 9.9 Note.—American Life Insurance Association data for new commit­ limited to cases where information was available or estimates could be ments of $100,000 and over each on mortgages for multifamily and non­ made: capitalization rate (net stabilized property earnings divided by residential nonfarm properties located largely in the United States. The 15 property value); debt coverage ratio (net stabilized earnings divided by companies account for a little more than one-half of both the total assets debt service); and per cent constant (annual level payment, including and the nonfarm mortgages held by all U.S. life insurance companies. principal and interest, per $100 of debt). All statistics exclude construction Averages, which are based on number of loans, vary in part with loan loans, increases in existing loans in a company’s portfolio, reapprovals, composition by type and location of property, type and purpose of loan, and loans secured by land only. and loan amortization and prepayment terms. Data for the following are MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Members1 Period va A n d c ­ es R m e e p n a ts y­ d ( e e p n o d si o ts f Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t­ 1 t L e o rm ng ­ 2 period) Total i con­ pur­ Total 2 in­ guar­ ven­ struc­ chase sured 3anteed 3 tional tion 1965....................... 5,007 4,335 5,997 3,074 2,923 1,043 1966....................... 3,804 2,866 6,935 5,006 1,929 1,036 1967....................... 1,527 4,076 4,386 3,985 401 1,432 1965.............. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968....................... 2,734 1,861 5,259 4,867 392 1,382 1966.............. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969....................... 5,531 1,500 9,289 8,434 855 1,041 1967.............. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1968.............. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1970....................... 3,256 1,929 10,615 3,081 7,534 2,331 1969.............. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1971....................... 2,714 5,392 7,936 3,002 4,934 1,789 1972....................... 4,790 4,749 7,979 2,961 5,018 2,104 1970.............. 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1973....................... 10,013 2,845 15,147 4,583 10,564 1,744 1971'............ 39,419 6,824 18,779 174,250 13,675 10,623 149,952 1972'............ 51,369 8,548 26,594 206,182 15,400 13,474 177,308 1973—Feb............. 415 302 7,944 2,774 5,170 1,321 1973. . . . 49,464 8,423 28,248 232,104 29,713 202,391 Mar............ 764 288 8,421 2,975 5,446 1,290 1,187 178 9,429 3,450 5,979 1,142 1973—Jan.r.. 3,698 589 1,968 207,926 29,056 178,870 May........... 916 189 10,156 3,428 6,728 1,261 Feb. . 3,706 614 2,017 210,054 29,219 180,835 June........... 1,093 104 11,145 4,016 7,129 1,453 Mar.r. 4,985 886 2,683 213,050 29,505 183,545 July............ 1,373 153 12,365 4,583 7,782 1,183 Apr.r.. 4,984 885 2,760 216,037 29,636 186,401 Aug............ 1,380 235 13,510 4,737 8,773 1,091 May r.. 5,471 930 3,137 219,283 29,742 189,541 Sept............ 999 212 14,298 4,834 9,464 1,178 Juner. 5,732 902 3,465 222,580 29,823 192,757 728 226 14,799 4,805 9,994 1,264 July r.. 5,054 850 3,076 225,265 29,707 195,558 Nov............ 295 228 14,866 4,669 10,197 1,538 Aug.r. 4,966 800 3,056 227,778 29,704 198,074 529 248 15,147 4,583 10,564 1,744 Sept.r. 3,174 571 1,836 229,182 30,066 199,116 Oct.r.. 2,786 532 1,547 230,195 29,759 200,436 1974—Jan............. 426 385 15,188 4,486 10,702 1,602 Nov.r. 2,379 448 1,365 231,089 29,724 201,365 Feb............. 322 607 14,904 4,304 10,600 1,935 Dec.r. 2,529 425 1,338 232,104 29,713 202,391 1974—Jan.p. . 2,353 387 1,306 233,027 29,713 203,314 2 1 S S e e c c u u r re e d d o lo r a u n n s, s e a c m ur o e r d ti z lo e a d n s q u m ar a t t e u r r l i y n , g h i a n v i 1 n g y e m ar 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 48 REAL ESTATE CREDIT □ APRIL 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 (durine Date of auction Mortgage Average Mortgage Average End of period) amounts yield amounts yield period (short­ (short­ Total F su H in re A ­ d - a g n V u t A e a e r - ­ d c P ha u s r e ­ s Sales d p M u e r r a i i d n o e d g st O i a n n u g d t ­ Offered ce A p c te ­ d c m o te e m r n m m ts i ) t­ Offered ce A p c te ­ d c m o te m e r n m m ts i ) t­ 196 8 7,167 5,122 2,046 1,944 2,696 1,287 In millions of In In millions of In 196 9 10,945 7,676 3,269 4,120 6,630 3,539 dollars per cent dollars per cent 197 0 15,492 11,063 4,429 5,079 20 8,047 5,203 1971............ 17,791 12,681 5,110 3,574 336 9,828 6,497 1972............ 19,791 14,624 5,112 3,699 211 8,797 8,124 1973—June 11. . . 184.5 142.2 8.04 110.1 74.1 8.44 1973............ 24,175 16,852 6,352 6,127 71 8,914 7,889 25. . . 199.3 118.7 8.09 95.0 69.4 8.51 1973-Feb.. . 20,181 14,872 5,222 334 478 7,972 July 9.... 539.3 244.8 8.38 108.4 72.5 8.67 Mar... 20,571 15,201 5,259 522 933 8,139 23.... 351.4 181.4 8.54 119.0 61.7 8.79 Apr.. . 20,791 15,390 5,269 355 1,211 8,742 May. . 21,087 15,581 5,335 472 1,180 9,312 Aug. 6.... 458.5 201.9 8.71 154.3 77.4 8.98 June.. 21,413 15,768 5,411 516 1 1,191 9,778 20. . . 525.0 223.8 8.95 171.3 77.2 9.27 July... 21,772 15,877 5,574 516 1,102 9,859 Aug... 22,319 16,085 5,761 699 1,019 9,809 Sept. 4. . . 551.0 288.9 9.27 118.6 61.5 9.53 Sept... 22,831 16,293 5,937 633 724 9,602 17. . . 138.1 107.9 9.37 48.6 46.8 9.68 Oct.. . 23,348 16,510 6,101 659 264 8,918 Nov... 23,912 16,734 6,294 656 200 8,690 Oct. 1. . . 32.5 24.1 9.11 9.1 7.1 9.43 Dec... 24,175 16,852 6,352 410 40 158 7,889 15. . . 24.8 16.6 8.97 18.6 16.2 9.10 29. . . 28.2 21.6 8.94 17.4 9.4 9.01 1974-Jan.... 24,424 17,008 6,348 350 110 6,715 Feb.. . 24,529 17,050 6,336 242 489 6,768 Nov. 12. . . 29.3 23.1 8.87 24.1 16.7 8.94 26. . . 24.9 20.9 8.81 31.0 22.1 8.90 Note.—FNMA data. Total holdings include conventional loans. Data Dec. 17.... 38.6 36.2 8.78 51.4 32.2 8.82 prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Mortgage holdings include loans used to back bond issues guaranteed by 1974—Jan. 14. . . 40.2 35.6 8.71 48.9 34.5 8.77 GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to Feb. 11.... 50.4 49.5 8.53 48.4 48.1 8.69 4-family loan commitments accepted in FNMA’s free market auction Feb. 25. . . 58.0 42.3 8.43 48.6 39.4 8.50 system, and through the FNMA-GNMA Tandem Plan (Program 18). Mar. 11 . . . 351.1 285.3■ 8.44 74.2 50.1 8.47 25. . . 1,154.7 332.5 8.62 126.3 34.2 8.64 Note.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average GOVERNMENT NATIONAL MORTGAGE accepted bid yield for home mortgages assuming a prepayment period of ASSOCIATION ACTIVITY 12 years for 30-year loans, without special adjustment for FNMA commit­ ment fees and FNMA stock purchase and holding requirements. Since (In millions of dollars) Oct. 18, 1971, the maturity on new short-term commitments has been 4 months. Mortgage amounts offered by bidders are total bids re­ ceived. Mortgage Mortgage Mortgage holdings transactions commitments (during GNMA MORTGAGE-BACKED SECURITY PROGRAM End of period) period (In millions of dollars) Total g V u A ar - ­ Pur­ Sales d M ur a i d n e g st O an u d t ­ anteed chases period ing Pass-through securities Bonds Period sold 196 7 3,348 2,756 592 860 1,045 1,171 Applications Securities 196 8 4,220 3,569 651 1,089 867 1,266 received issued 196 9 4,820 4.220 600 827 615 1 ,131 197 0 5,184 4,634 550 621 897 738 197 1 5,294 4,777 517 393 1,494 197 0 1,126.2 452.4 1,315.0 197 2 5,113 4,664 436 197 1 4,373.6 2,701.9 300.0 197 3 4.029 3.642 376 197 2 3,854.5 2,661.7 197 3 5,588.0 3,294.4 1973-Feb.. 4,984 4,552 420 Mar.. 4,663 4,233 418 1973—Feb., 167.2 216.8 Apr.. 4,439 4,010 417 Mar. 339.4 139.9 May. 3,980 3,687 281 Apr. 467.8 182.1 June. 3,908 3,604 292 May 563.3 338.8 July.. 4,156 3,753 391 June 243.1 315.3 Aug.. 4,455 3,949 495 July. 215.7 384.7 Sept.. 4,429 3,878 540 Aug. 174.0 191.3 Oct... 4,338 3,843 484 Sept. 533.8 380.0 Nov.. 4,172 3,779 382 Oct.. 825.7 240.8 Dec.. 4.029 3.642 376 Nov. 923.3 210.4 Dec. 515.2 370.9 1974-Jan... 3,767 3,505 251 Feb.. 3,798 3,539 249 1974—Jan.. 816.2 665.5 Feb., 748.8 463.1 Note.—GNMA data. Total holdings include a small amount of con­ ventional loans. Data prior to Sept. 1968 relate to Special Assistance and Note.—GNMA data. Under the Mortgage-Backed Security Program, Management and Liquidating portfolios of former FNMA and include GNMA guarantees the timely payment of principal and interest on both mortgages subject to participation pool of Government Mortgage Liquida­ pass-through and bond-type securities, which are backed by a pool of tion Trust, but exclude conventional mortgage loans acquired by former mortgages insured by FHA or Farmers Home Admin, or guaranteed by FNMA. VA and issued by an approved mortgagee. To date, bond-type securities have been issued only by FNMA and FHLMC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ REAL ESTATE CREDIT A 49 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- Period Prop­ insured Pro­ erty New Existing New l h n o o e a m w ns e - Total h N om ew es h is o E t m i x n ­ e g s jects 1 m pr i e m o n v ­ t e s ­ 2 Total 3 h N om ew es h is o E t m i x n ­ e g s homes homes homes 1965............ 8,689 1,705 5,760 591 634 2,652 876 1,776 196 8 6.97 7.03 7.12 7.21 1966............ 7,320 1,729 4,366 583 641 2,600 980 1,618 196 9 7.81 7.82 7.99 8.29 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 197 0 8.44 8.35 8.52 9.03 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 19 71.............. 7.74 7.67 7.75 7.70 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 197 2 7.60 7.52 7.64 7.52 197 3 7.95 8.01 1970............ 11,982 2,667 5,447 3,251 617 3,440 1,311 2,129 1971............ 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 1973—Mar.. 7.68 7.69 7.80 7.63 1972............ 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 Apr... 7.71 7.70 7.90 7.73 1973............ 7,591 1,675 2,798 2,286 832 7,416 2,313 5,103 May.. 7.71 7.77 7.95 7.79 June.. 7.79 7.79 8.05 7.89 1973—Feb.. 710 162 235 262 52 592 187 405 July. . 7.87 7.84 8.40 8.19 Mar.. 969 195 268 440 65 596 185 411 Aug... 7.94 8.01 8.85 Apr.. 620 151 223 172 74 621 187 434 Sept.. 8.17 8.26 8.95 9.18 May. 589 158 228 122 81 634 198 436 Oct... 8.31 8.50 8.80 8.97 June. 650 153 229 207 61 646 182 464 Nov.. 8.39 8.58 8.75 8.86 July.. 559 143 250 100 66 666 204 462 Dec... 8.49 8.61 8.75 8,78 Aug.. 537 100 195 167 75 565 193 372 Sept.. 485 90 177 134 84 565 184 381 1974—Jan.'. 8.52 8.64 8.65 8.54 Oct... 556 113 246 126 72 652 221 431 Feb... 8.62 8.70 8.55 Nov.. 623 100 257 190 76 725 216 509 Mar.p 8.64 8.62 Dec.. 459 56 168 168 66 473 138 335 1974—Jan... 482 73 243 115 52 652 175 477 Note.—Annual data are averages of monthly figures. The Feb.. 399 54 206 92 46 520 133 387 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-31) 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— Loans in Mortgage Mortgage Mortgage fore­ holdings transactions commitments End of period closure (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 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 .33 197 3 2.604 1,743 861 1,334 409 1,629 186 1971................ 3.93 2.82 .65 .46 .46 1972................ 4.65 3.42 .78 .45 .48 1973—Jan.. 1.761 1.517 244 76 99 142 226 Feb., 1,677 1,535 142 76 150 166 300 1971—11......... 3.27 2.36 .53 .38 .38 Mar. 1,718 1,589 128 119 68 141 295 Ill....... 3.59 2.54 .62 .43 .41 Apr., 1,784 1,646 138 126 51 193 343 IV........ 3.93 2.82 .65 .46 .46 May, 1,906 1,695 211 147 17 187 344 June 2,029 1,716 313 154 21 159 316 1972—1.......... 3.16 2.21 .58 .37 .50 July. 2,158 1,714 444 140 139 278 II........ 3.27 2.38 .53 .36 .48 Aug. 2,307 1.728 579 161 208 291 Ill....... 3.82 2.74 .65 .43 .52 Sept. 2,423 1.729 694 126 143 288 IV i... J4.66 3.41 .79 .46 .50 Oct.. 2,527 1.742 785 113 63 218 \4.65 3.42 .78 .45 .48 Nov. 2,565 1,746 819 46 45 207 Dec. 2.604 1.743 861 50 43 186 1973—I.......... 3.63 2.52 .68 .43 II 3.84 2.81 .64 .39 1974—Jan.. 2,621 1,736 885 34 26 161 III 4.36 3.10 .78 .48 IV....... 4.70 3.42 .79 .49 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 in­ clude loans used to back bond issues guaranteed by GNMA. Commitment data Note.—Mortgage Bankers Association of America data from cover the conventional and Govt.-underwritten loan programs. reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 CONSUMER CREDIT □ APRIL 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 1965 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 1966 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 1967 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 7,070 5,727 1968. 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 1969, 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 1970 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 1971 , 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 1972. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 9,829 9,979 1973--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 9,519 174,840 143,610 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 1974- 178,686 146,575 50,617 47,303 7,303 41,352 32.111 13,117 8,875 10,119 Feb............................... 177,522 145,927 50,386 46,781 7,343 41,417 31;595 13,159 8,018 10,418 ' 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 1 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 1965 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 1966, 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 1967 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 1968, 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 1969. 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 1970 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 1971, 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 1972. 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1973 147,437 129,305 69,495 37,243 19,609 2,958 18,132 299 17,833 1973- 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 15,063 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 15,017 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 15,440 140,810 124,823 67,381 35,634 18,961 2,847 15,987 296 15,691 142,093 126,040 67,918 35,993 19,207 2,922 16,053 297 15,756 143,610 127,307 68,627 36,365 19,339 2,976 16,303 300 16,003 145,400 128,553 69,161 36,887 19,517 2,988 16,847 302 16,545 147,437 129,305 69,495 37,243 19,609 2,958 18,132 299 17,833 1974—Jan.................................................... 146,575 128,870 69,429 37,140 19,429 2,872 17,705 296 17,409 145,927 128,807 69,246 37,148 19,430 2,983 17,120 293, 16,827 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

APRIL 1974 o CONSUMER CREDIT A 51 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 V 1940............. 1,452 339 276 232 165 440 2,278 1,253 159 193 673 1950............. 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 80 1,386 1955.............. 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 42 3,240 1960............. 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 173 5,006 1965.............. 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 1966............. 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 1967.............. 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 1968.............. 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 1969.............. 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5 _ 775 174 12,485 1970.............. 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 1971.............. 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 1972............. 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 497 14,912 1973............. 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 1973—Feb... 60,582 16,680 10,977 5,932 5,283 5,158 3,515 13,037 32,431 10,267 2,909 3,752 562 14,941 Mar... 61,388 16,951 11,216 6,035 5,243 5,289 3,538 13,116 32,750 10,419 2,943 3,796 581 15,011 Apr... 62,459 17,327 11,436 6,163 5,290 5,401 3,581 13,261 33,078 10,617 2,991 3,831 611 15,028 May.. 63,707 17,716 11,680 6,321 5,360 5,538 3,635 13,457 33,859 10,872 3,025 3,985 656 15,321 June.. 64,999 18,138 11,866 6,473 5,502 5,688 3,700 13,632 34,367 11,121 3,081 4,002 694 15,469 July.. 66,065 18,439 12,023 6,629 5,603 5,815 3,774 13,782 35,020 11,365 3,132 4,103 733 15,687 Aug... 67,381 18,771 12,190 6,825 5,792 5,923 3,863 14,017 35,634 11,583 3,187 4,194 771 15,899 Sept.. 67,918 18,886 12,160 6,956 5,909 5,978 3,903 14,126 35,993 11,721 3,235 4,265 809 15,963 Oct... 68,627 19,123 12,262 7,106 5,991 6,012 3,950 14,183 36,365 il,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 14,331 37,243 11,927 3,378 4,434 917 16,587 1974—Jan... 69,429 18,885 12,113 7,237 6,826 6,041 3,944 14,383 37,140 11,754 3,392 4,460 940 16,594 Feb... 69,246 18,770 12,028 7,285 6,770 6,063 3,937 14,393 37,148 11,710 3,406 4,486 968 16,578 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 HlELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other payment Charge accounts Auto­ con­ Home Per­ loans End of period Total mobile sumer improve­ sonal paper goods ment loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards 1 1940................................ 188 36 7 13 132 banks insti­ 1950................................ 692 159 40 102 391 tutions 1955................................ 1,959 560 130 313 956 1960................................ 4,566 1,460 297 775 2,034 1940............... 2,824 636 164 1,471 553 1965................................ 8,289 3,036 498 933 3,822 1950............... 6,768 1,576 245 3,291 76 1,580 1966................................ 9,315 3,411 588 980 4,336 1955............... 9,924 2,635 367 4,579 216 2,127 1967................................ 10,216 3,678 654 1,085 4,799 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 1965............... 18,990 6,690 981 5,724 706 4,889 1966............... 19,994 6,946 1,026 5,812 874 5,336 1970................................ 15,088 5,116 1,177 1,800 6,995 1967............... 21,355 7,478 1,080 6,041 1,029 5,727 1971................................ 17,021 5,747 1,472 1,930 7,872 1968............... 23,025 8,374 1,158 5,966 1,227 6,300 1972................................ 19,511 6,598 1,690 2,160 9,063 1969............... 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 1973—Feb...................... 19,617 6,627 1,698 2,162 9,130 1971............... 27,099 9,316 1,269 6,397 1,953 8,164 Mar..................... 20,052 6,752 1,732 2,209 9,359 30,232 10,857 1,399 7,055 1,947 8,974 Apr...................... 20,190 6,820 1,748 2,216 9,406 1973............... 33,049 11,753 1,488 7,783 2,046 9,979 May..................... 20,599 6,966 1,785 2,250 9,598 June..................... 21,084 7,135 1,828 2,294 9,827 1973—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 1974—Jan....................... 22,301 7,569 1,938 2,419 10,375 Oct.... 31,230 11,654 1,491 6,554 2,036 9,495 Feb...................... 22,413 7,585 1,944 2,438 10,446 Nov.... 31,569 11,669 1,492 6,761 2,024 9,623 Dec.... 33,049 11,753 1,488 7,783 2,046 9,979 lan N eo o u te s .— len O d t e h rs e . r M fin is a c n e c ll i a a n l e l o e u n s d e le rs n d c e o rs n s i i n s c t lu o d f e c s r a e v d i i n t g u s n a i n o d n s lo a a n n d a m ss i o s c c i e a l ­ ­ 1974—J F a e n b .. . . .. . . 3 3 2 1 , , 1 5 1 9 1 5 1 1 1 1 , , 6 6 6 5 3 2 1 1, , 4 4 6 9 5 6 6 6 , , 1 8 3 9 6 4 1 1, , 9 8 8 8 1 2 1 10 0 , , 4 1 1 1 8 9 tions and mutual savings banks. 1 Service station and miscellaneous credit-card accounts and home* heating-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 52 CONSUMER CREDIT □ APRIL 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 Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1966. 82,832 27,192 26,329 2,223 27,088 1967. 87,171 26,320 29,504 2,369 28,978 1968. 99,984 31,083 33,507 2,534 32,860 1969. 109,146 32,553 38,332 2,831 35,430 1970. 112,158 29,794 43,873 2,963 35,528 1971. 124,281 34,873 47,821 3,244 38,343 1972. 142,951 40,194 55,599 4,006 43,152 1973. 165,083 46,453 66,859 4,728 47,043 1973—Feb.. 13,434 11,214 3,972 3,407 5,245 4,252 364 300 3,853 3,255 Mar.. 13,852 13,681 4,001 4,164 5,349 5,169 406 377 4.096 3,971 Apr.. 13,465 13,661 3,822 4,101 5,563 5,378 365 372 3,715 3,810 May. 13,932 14,792 3,989 4,409 504 5,698 374 431 4,065 4,254 June. 13,646 14,608 3,762 4,313 505 5,678 400 450 3,979 4,167 July.. 14,542 14,812 3,930 4,177 943 5,753 433 472 4,236 4,410 Aug.. 14,294 15,099 3,968 4,252 961 6,065 408 471 3,957 4,311 Sept.. 13,691 12,624 3,939 3,476 537 5,217 410 420 3,805 3,511 Oct... 14,149 14,454 3,912 4,196 911 5,894 415 439 3,911 3,925 Nov.. 14,275 14,098 3,819 3,693 5,978 5,980 402 389 4,076 4,036 Dec.. 12,677 14,117 3,315 2,872 5,254 6,826 429 348 3,679 4,071 1974—Jan... 13,714 12,375 3,492 2,934 5,662 5,471 373 298 4,187 3,672 Feb.. 13,541 11,227 3,389 2,945 5,647 4,525 409 341 4.096 3,416 Repayments 1966. 77,480 25,619 24,080 2,118 25,663 1967. 83,988 26,534 27,847 2,202 27,405 1968. 91,667 27,931 31,270 2,303 30,163 1969. 99,786 29,974 34,645 2,457 32,710 1970. 107,199 30,137 40,721 2,506 33,835 1971. 115,050 31,393 44,933 2,901 35,823 1972. 126.914 34,729 49,872 3,218 39,095 1973. 144,978 39,452 59,409 3,577 42,540 1973—Feb.. 11,437 10,623 3,145 2,943 4,627 4,409 275 254 3,390 3,017 Mar.. 11,808 12,265 3,225 3,371 4,755 5,013 286 288 3,542 3,593 Apr.. 12,061 12,014 3,218 3,233 4,963 4,888 294 292 3,586 3,601 May. 11,941 12,283 3,261 3,369 4,917 5,043 290 298 3,473 3,573 June. 12,034 12,121 3,253 3,282 4,955 4,921 300 303 3,526 3,615 July.. 12,544 12,618 3,334 3,374 5,141 5,031 308 315 3,761 3,898 Aug.. 12,399 12,501 3,293 3,372 5,168 5,135 298 307 3,640 3,687 Sept.. 12,332 11,341 3,406 3,151 5,072 4,703 322 309 3,532 3,178 Oct... 12,449 12,937 3,427 3,661 5,149 5,281 308 324 3,565 3,671 Nov.. 12,549 12,308 3,471 3,414 5,154 5,020 301 303 3,623 3,571 Dec.. 12,267 12,080 3,338 3,113 5,001 4,888 332 317 3,596 3,762 1974--Jan.. 12,797 13,237 3,433 3,447 5,193 5,698 356 347 3,815 3,745 Feb., 12,870 11,875 3,394 3,176 5,340 5,047 323 301 3,813 3,351 Net change in credit outstanding 2 1966. 5,352 1,573 2,249 105 1,425 1967. 3,183 -214 1,657 167 1,573 1968. 8,317 3,152 2,237 231 2,697 1969. 9,360 2,579 3,687 374 2,720 1970. 4,959 -343 3,152 457 1,693 1971. 9,231 3,480 2,888 343 2,520 1972. 16,037 5,465 5,727 788 4,057 1973. 20,105 7,001 7,450 1,151 4,503 1973—Feb.. 997 591 827 464 618 -157 89 46 463 238 Mar.. 044 1,416 776 793 594 156 120 89 554 378 Apr.. 404 1,647 604 868 600 490 71 80 129 209 May. 991 2,509 728 1,040 587 655 84 133 592 681 June. 612 2,487 509 1,031 550 757 100 147 453 552 July.. 998 2,194 596 803 802 722 125 157 475 512 Aug.. 895 2,598 675 880 793 930 110 164 317 624 Sept.. 359 1,283 533 325 465 514 88 111 273 333 Oct... 700 1,517 485 535 762 613 107 115 346 254 Nov.. 726 1,790 348 279 824 960 101 86 453 465 Dec.. 410 2,037 -23 -241 253 1,938 97 31 83 309 1974—Jan... 917 -862 59 -513 469 -227 17 -49 372 -73 Feb.. 671 -648 -5 -231 307 -522 86 40 283 65 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

APRIL 1974 □ CONSUMER CREDIT A 53 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A.i S.A.i N.S.A. S.A.i N.S.A. Extensions 1966. 82,832 30,073 25,897 10,368 16,494 1967. 87,171 31,382 26,461 11,238 18,090 1968. 99,984 37,395 30,261 13,206 19,122 1969. 109,146 40,955 32,753 15,198 20,240 1970. 112,158 42,960 31,952 15,720 21,526 1971 . 124,281 51 ,237 32,935 17,966 22,143 1972. 142,951 59,339 38,464 20,607 24,541 1973. 165,083 69,726 43,221 23,414 28,722 1973—Feb.. 13,434 11,214 5,664 4,826 3,557 2,972 1,964 1,711 2,249 1,705 Mar.. 13,852 13,681 5,853 5,890 3,654 3,598 2,131 2,083 2,214 2,110 Apr.. 13,465 13,661 5,644 5,973 3,555 3,576 1,792 1,832 2,474 2,280 May. 13,932 14,792 5,859 6.356 3,820 4,027 1,868 2,060 2,385 2,349 June. 13,646 14,608 5,684 6,219 3,584 3,817 1,978 2,211 2,400 2,361 July.. 14,542 14,812 5,976 6,232 3,824 3,931 2,110 2,233 2,632 2,416 Aug.. 14,294 15,099 6,195 6,518 3,685 3,877 1,943 2,194 2,471 2,510 Sept.. 13,691 12,624 5,809 5,376 3,602 3,189 2,019 1,912 2,261 2,147 Oct... 14,149 14,454 6,060 6,169 3,623 3,765 1,951 1,968 2,515 2,552 Nov.. 14,275 14,098 6,222 5,697 3,564 3,722 2,029 1,929 2,460 2,750 Dec.. 12,677 14,117 5,124 5,224 3,279 3,714 1,897 1,772 2,377 3,407 1974—Jan.. 13,714 12,375 5,715 5,345 3,693 3,127 1,911 1,639 2,395 2,264 Feb., 13,541 11,227 5,794 4,837 3,656 3,056 1,861 1,644 2,230 1,690 Repayments 1966. 77,480 27,716 24,952 9,342 15,470 1967. 83,988 29,549 26,681 10,337 17,421 1968. 91,667 32,611 28,763 11,705 18,588 1969. 99,786 36,470 30,981 13,193 19,142 1970. 107,199 40,398 31,705 14,354 20.742 1971. 115,050 45,395 31,730 16,033 21,892 1972. 126,914 50,796 35,259 18,117 22.742 1973. 144,978 60,014 38,066 20,358 26,540 1973—Feb.. 11,437 10,623 4,684 4,392 3,030 2,718 1,625 1,459 2,098 2,054 Mar.. 11,808 12,265 4,870 5,084 3,141 3,279 1 ,665 1,648 2,132 2,254 Apr.. 12,061 12,014 4,919 4,902 3,251 3,248 1.693 1,694 2,198 2,170 May. 11,941 12,283 4,976 5,108 3,100 3,246 1,612 1,651 2,253 2,278 June. 12,034 12,121 4,890 4,927 3.241 3,309 1.694 1,726 2,209 2,159 July.. 12,544 12,618 5,112 5,166 3,312 3,278 1,771 1,923 2,349 2,251 Aug.. 12,399 12,501 5,146 5,202 3.241 3,263 1,738 1,780 2,274 2,256 Sept.. 12,332 11,341 5,167 4,839 3,144 2,830 1,757 1,591 2,264 2,081 Oct... 12,449 12,937 5,212 5,460 3,287 3,393 1,703 1,782 2.247 2,302 Nov.. 12,549 12,308 5,345 5,163 3,143 3,200 1,814 1,739 2.247 2,206 Dec.. 12,267 12,080 5,088 4,890 3,151 3,358 1,766 1,710 2,262 2,122 1974—Jan.. 12,797 13,237 5,254 5,411 3,418 3,230 1,823 1,905 2,302 2,691 Feb.. 12,870 11,875 5,430 5,020 3,423 3,048 1,692 1,532 2,325 2,275 Net change in credit outstanding 2 1966......................................... 5,352 2,357 945 1,026 1,024 1967......................................... 3’,183 1 *833 — 220 901 669 1968......................................... 8,317 4*784 1,498 1,501 534 1969......................................... 9,360 4*485 1 *772 2,005 1,098 1970......................................... 4,959 2,977 — 168 1,366 784 1971......................................... 9,231 5*842 1,205 1,933 251 1972......................................... 16,037 8,543 3,205 2,490 1,799 1973......................................... 20,105 9,712 5,155 3,056 2,182 1973—Feb............................... 1,997 591 980 434 527 254 339 252 151 -349 Mar.............................. 2,044 1 ,416 983 806 513 319 466 435 82 -144 Apr............................... 1,404 1,647 725 1,071 304 328 99 138 276 110 May............................. 1,991 2,509 883 1,248 720 781 256 409 132 71 June............................. 1,612 2,487 794 1,292 343 508 284 485- 191 202 July............................... 1,998 2,194 864 1,066 512 653 339 310 283 165 Aug.............................. 1,895 2,598 1,049 1,316 444 614 205 414 197 254 Sept.............................. 1,359 1,283 642 537 458 359 262 321 -3 66 Oct................................ 1,700 1,517 848 709 336 372 248 186 268 250 Nov.............................. 1,726 1,790 877 534 421 522 215 190 213 544 Dec............................... 410 2,037 36 334 128 356 131 62 115 1,285 1974—Jan................................ 917 -862 461 -66 275 -103 88 -266 93 -427 Feb............................... 671 -648 364 -183 233 8 169 112 -95 -585 1 Includes adjustments for differences in trading days. their outstanding credit. Such transfers do not affect total instalment 2 Net changes in credit outstanding are equal to extensions less re­ credit extended, repaid, or outstanding. payments, except in certain months when data for extensions and repay­ ments have been adjusted to eliminate duplication resulting from large Note.—Other financial lenders include credit unions and miscellane­ transfers of paper. In those months the differences between extensions ous lenders. See also Note to preceding table and footnote 1 at bottom of p. and repayments for some particular holders do not equal the changes in A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 INDUSTRIAL PRODUCTION: S.A. □ APRIL 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 pro­ aver­ Grouping p ti o o r n ­ age v Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec Jan.r Feb.p Mar. Total index................................... 100.0 125.6 123.7 124.1 124.8 125.6 126.7 126.5 126. I 127.0 127.5 126.5 125.4 124.5 123.9 Products, total.................................. 62.21 123.4 121.7 122.0 122.9 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.6 122.1 121.8 Final products............................... 48.95 121.3 119.6 120.0 120.8 121.3 122.1 121.4 122.4 122.7 123.7 122.6 120.9 120.5 120.1 Consumer goods....................... 28.53 131.7 130.8 130.9 131.8 131.9 132.8 131.2 132.3 132.6 133.5 131.3 129.2 128.0 127.3 Equipment................................ 20.42 106.7 104.1 104.7 105.7 106.6 107.3 107.6 108.5 108.9 110.1 110.1 109.1 110.0 110.0 Intermediate products................. 13.26 131.1 129.4 129.3 130.5 132.0 132.5 132.1 131.0 130.6 131.1 129.1 129.3 128.3 127.8 Materials........................................... 37.79 129.3 127.0 127.7 128.3 129.0 130.9 130.9 131.3 131.1 131.5 130.7 129.5 128.2 127.2 Consumer goods Durable consumer goods.................. 7.86 139.0 140.4 140.5 141.5 141. 142.4 134.0 138.2 137.3 138.5 134.6 128.4 126.7 126.6 Automotive products................... 2.84 136.8 144.1 141.7 142.6 142.6 141.7 121.1 129. 131.4 133.7 120.6 108.1 103.9 103.0 Autos......................................... 1.87 125.4 130.8 128.1 129.8 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 Auto parts and allied goods... .97 158.9 169.9 167.5 167.0 161.9 156.7 154.2 151.8 148.4 150.9 147. 142.8 137. 135.0 Home goods.................................... 5.02 140.3 138.3 139.8 140.9 141.31 142.9 141.1 142.9 140.9 141.2 142.5 139.8 139.6 140.0 Appliances, TV, and radios........ 1.41 144.8 143.0 149.7 148.0 147.2 147.8 146.3 149.4 143.4 140.4 147.9 139.1 134. Appliances and A/C............ .92 156.9 156.9 157.6 157.8 154.1 156.0 153.3 159.8 159.3 154.7 172.2 155.0 152.5 TV and home audio............. .49 Carpeting and furniture.............. 1.08 150.0 145.7 146.7 147.8 148.9 155.4 154.2 153.3 153.9 152.7 150.1 153.5 152.6 Misc. home goods........................ 2.53 133.6 132.7 131.4 134.0 134.7 134.7 132.9 134.8 134.1 136. 136.3 134.4 136.9 137.9 Nondurable consumer goods............ 20.67 129.0 127.1 127.2 128.0 128.1 129.1 130.2 130.1 130.8 131.5 130.2 129.4 128.6 127.5 Clothing........................................ 4.32 116.0 115.4 114.5 114.2 116.0 116.5 117.0 118.0 116.8 117.3 120.3 116.3 Consumer staples......................... 16.34 132.4 130.3 130.6 131.7 131.4: 132.5 133.6 133.2 134.5 135.2 132.8 132.7 133.0 131.9 Consumer foods and tobacco.. 8.37 122.2 120.9 121.0 120.9 119.6 121.3 121.9 122.2 123.3 126.5 125.0 126.1 125.3 123.5 Nonfood staples....................... 7.98 143.1 140.1 140.7 143.1 143.7 144.1 145.8 144.8 146.2 144.3 141.1 139.6 141.1 140.6 Consumer chemical products 2.64 153.3 151.1 151.5 154.9 153.5 153.0 155.6 153.4 156.2 154.9 156.7 157.8 162.7 Consumer paper products... 1.91 121.3 118.7 119.0 121.7 121.7 122.5 124.1 124.4 122.5 123.6 120.5 119.4 117.2 Consumer fuel and lighting., 3.43 147.5 143.8 144.4 145.6 148.2 149.2 150.4 149.7 151.9 147. 140.7 137.0 138.0 Residential utilities........... 2.25 156.8 153.5 152.3 152.1 155.4 157. 160.0 160.9 161.9 158.0 149.8 145.6 149.6 Equipment Business equipment........................... 12.74 122.6 118.6 119.6 121.3 122.5 123.0 124.6 125.8 126.2 127. 126.9 126.1 127.2 127.3 Industrial equipment.................... 6.77 120.1 115.6 117.4 119.1 119.8 120.5 122.5 124.1 124.5 125.6 124.9 124.3 125.8 125.5 Building and mining equip. 1.45 120.4 116.0 118.1 118.8 119.1 119.6 123.0 123.7 124.7 126.0 126.0 127.8 130.5 130.5 Manufacturing equipment. 3.85 113.0 107.5 109.4 112.0 113.1 113.9 115.1 117.3 117.3 118.2 118.5 118.5 119.5 118.5 Power equipment..................... 1.47 138.5 137.1 137.6 138.2 138.3 138.5 141.0 142.3 143.0 144.6 140.3 136.0 138.0 138.9 Commercial, transit, farm eq.. .., 5.97 125.5 121.9 122.2 123.7 125.4 125.8 127.0 127.7 128.1 130.3 129.2 128.1 128.7 129.1 Commercial equipment............. 3.30 135.0 130.6 131.3 131.6 134.1 135.9 137.0 138.2 140.1 141.3 139.3 139.1 140.0 140.8 Transit equipment.................... 2.00 109.8 110.2 107.5 109.8 109.7 109.0 108.4 109.6 109.8 111.4 111.1 109.5 109.4 109.4 Farm equipment....................... .67 125.1 114.6 120.9 126.5 129.3 126.4 132. 129.4 123.5 132.4 133.4 130.0 130.0 Defense and space equipment........... 7.68 80.2 80.1 80.0 79.7 80.1 81.1 79.7 79.8 80.0 80.9 81.9 81.2 81.3 81.2 Military products......................... 5.15 80.3 81.5 81.0 80.1 80.0 81.1 79.0 79.1 79.3 80.0 81.3 80.4 80.7 80.8 Intermediate products Construction products..................... 5.93 134.2 130.7 132.2 132.2 135.9 134.5 135.3 134.9 134.3 133.7 131.1 133.1 130.4 128. Misc. intermediate products............ 7.34 128.6 128.3 127.0 129.2 128.9 132.7 129.6 128.1 127.5 129.0 127.4 126.1 126.5 Materials Durable goods materials.................... 20.91 130.1 127.6 127.9 128.6 129.2 131.7 131. 132.3 132.2 133.0 132.7 129.5 127.2 124.5 Consumer durable parts............... 4.75 127.8 125.9 129.0 125.7 128.8 126.9 128.6 129.9 128.2 128.4 121.0 111.9 106.9 103.0 Equipment parts............................ 5.41 119.3 114.6 113. 118.0 118.2 124.5 122.3 122.1 122.7 125.8 125.3 125.0 125.3 121.9 Durable materials nec................... 10.75 136.5 134.9 134.7 135.3 134.9 137.6 138.0 138.7 139.0 138.7 141.6 139.7 137.0 135.4 Nondurable goods materials............... 13.99 129.1 127.1 128.5 128.9 129.4 130.4 130.6 130.3 130.1 130.7 129.2 131.2 130.3 131.8 Textile, paper, and chem. mat.... 8.58 139.8 136.3 138.8 139.4 140.2 142.2 142.4 141.9 141.4 142.4 140.1 142.4 140.6 143.2 Nondurable materials n.e.c.......... 5.41 112.2 112.7 112.2 112.3 112.3 112.1 111.7 112.0 112.3 112.1 111.9 113.6 114.1 113.6 Fuel and power, industrial............... 2.89 123.9 122.6 122.1 122.9 125.3 126.9 126.3 128.3 126.9 124.9 123.1 121.1 123.8 123.6 Supplementary groups Home goods and clothing................ 9.34 129.0 127.6 128.1 128.6 129.7 130.7 130.0 131.3 129.8 130.2 132.4 128.9 126.9 126.2 Containers......................................... 1.82 139.9 145.2 139.1 138.0 141.4 135.1 140.5 139.8 141.2 142.3 141.0 148.4 141.5 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. 446.9 446.2 449.7 451.8 452.9 446.2 449.8 452.6 456.9 449.1 444.8 441.4 439.4 Final products............ 343.9 343.7 346.6 347.8 347.7 341.9 346.3 349.7 353.3 346.9 341.5 339.4 338.2 Consumer goods... 239.5 238.9 241.1 241.3 241.0 235.4 239.0 241.7 243.6 237.8 233.2 230.0 229.1 Equipment............... 104.5 104. 105.6 106.6 106.6 106.6 107.3 108.0 109.5 109.0 108.5 109.1 109.1 Intermediate products. 102.7 102.3 103.1 104.3 104.8 104.6 103.5 103.1 103.6 102.5 103.2 102.2 101.4 For Note see p. A-55. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ INDUSTRIAL PRODUCTION: S.A. A 55 INDUSTRY GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro­ aver­ Grouping p ti o o r n ­ age p Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb.* Mar.e Manufacturing...................................... 88.55 125.2 123.4 123.8 124.9 125.6 126.5 126.1 126.3 126.4 127.4 126.4 125.0 123.9 123.4 Durable............................................ 52.33 122.1 119.9 120.6 121.8 123.0 123.8 122.6 123.3 123.5 124.3 123.1 120.7 119.4 118.6 Nondurable...................................... 36.22 129.6 128.6 128.4 129.3 129.3 130.5 130.9 130.7 130.4 131.3 131.2 131.0 130.3 130.4 Mining and utilities............................. 11.45 128.9 127.3 126.6 127.0 128.2 130.4 130.7 131.3 131.5 130.6 126.9 125.9 128.0 128.3 Mining.............................................. 6.37 110.2 109.5 109.0 109.1 109.5 111.0 111.5 111.8 111.9 111.3 110.4 110.8 111.6 112.8 Utilities............................................. 5.08 152.3 149.6 148.7 149.5 151.5 154.8 154.8 155.8 156.2 154.6 147.6 144.9 148.5 147.8 Durable manufactures Primary and fabricated metals............ 12.55 128.8 125.8 127.3 128.1 128.7 130.6 129.5 129.5 130.6 131.0 130.5 130.2 128.6 126.5 Primary metals................................. 6.61 127.1 123.5 125.8 126.1 124.5 128.1 125.6 127.8 128.7 128.9 130.7 129.4 127.0 124.0 Iron and steel, subtotal............... 4.23 121.6 117.5 119.7 119.8 119.9 120.9 118.5 122.7 123.6 124.2 127.7 125.4 121.8 116.9 Fabricated metal products.............. 5.94 130.7 128.4 128.9 130.3 133.4 133.5 133.8 131.5 132.4 133.1 130.0 131.4 130.5 129.3 Machinery and allied goods................. 32.44 117.3 115.1 115.7 117.3 118.8 119.3 117.7 118.9 118.9 119.9 118.6 114.7 113.4 112.9 Machinery........................................ 17.39 125.9 121.4 122.6 124.7 126.9 127.6 128.5 130.0 129.2 130.4 130.9 127.9 126.8 125.3 Nonelectrical machinery.............. 9.17 125.1 119.0 121.5 124.0 126.1 127.1 128.9 130.0 130.0 130.3 130.2 128.3 127.8 i26.8 Electrical machinery.................... 8.22 126.8 123.9 123.8 125.4 127.8 128.0 128.2 129.8 128.5 130.5 131.6 127.5 125.6 123.9 Transportation equipment.............. 9.29 109.2 110.3 110.0 111.0 112.2 112.1 105.7 107.3 108.8 109.8 103.0 95.7 93.4 93.4 Motor vehicles and parts............ 4.56 138.1 141.0 140.1 140.9 143.3 144.1 131.0 133.9 136.4 137.8 124.6 112.7 109.3 110.0 Aerospace and misc. trans. eq... 4.73 80.8 81.1 82.2 82.2 81.3 81.3 81.7 82.3 82.9 82.2 79.3 78.2 11A Instruments....................................... 2.07 133.8 134.7 138.9 140.2 140.8 140.9 141.5 141.0 142.6 142.7 143.0 143.2 143.8 Ordnance, private and Govt........... 3.69 87.1 86.4 85.4 86.7 86.7 83.8 83.7 83.8 84.3 86.1 85.0 85.0 85.2 Lumber, clay, and glass....................... 4.44 129.5 129.1 129.9 130.3 129.2 129.8 129.2 128.8 129.7 129.3 127.8 129.1 126.2 126.1 Lumber and products..................... 1.65 128.9 129.5 129.1 127.5 126.6 125.4 128.4 128.9 127.4 127.3 126.3 124.2 124.4 Clay, glass, and stone products___ 2.79 129.9 128.9 130.4 132.0 130.5 132.3 129.6 128.8 131.2 130.4 128.7 131.9 127.4 Furniture and miscellaneous................. 2.90 133.4 133.1 136.0 135.4 135.9 137.5 138.2 136.1 136.4 135.3 133.4 135.8 137.3 Furniture and fixtures..................... 1.38 126.3 122.8 123.8 126.5 126.5 127.5 129.5 130.4 128.8 127.9 124.9 124.2 125.3 Miscellaneous manufactures........... 1.52 143.3 143.0 141.6 144.5 143.6 143.5 144.9 145.3 142.9 144.3 144.5 141.8 145.5 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 114.6 114.0 113.3 115.0 114.5 115.4 117.5 116.8 116.7 118.8 116.0 114.2 112.6 Textile mill products....................... 2.69 127.1 127.1 126.1 127.2 129.2 128.9 129.0 130.2 130.2 129.4 130.9 128.1 125.7 Apparel products............................. 3.33 112.9 112.4 111.7 110.0 111.0 112.1 113.6 115.4 114.9 115.3 118.5 116.4 Leather and products. ................. .88 83.6 85.0 86.8 83.0 86.6 79.2 81.0 86.4 83.1 82.9 82.9 78.3 80.3 Paper and printing.............................. 7.92 122.1 122.4 120.8 122.0 122.8 123.8 124.5 122.1 121.3 121.9 121.2 121.7 120.5 121.7 Paper and products......................... 3.1 135.4 137.1 133.6 135.1 134.6 135.3 137.0 134.8 135.3 136.2 136.7 138.7 137.2 Printing and publishing................... 4.74 113.2 112.4 112.2 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 110.4 109.3 '109.6 Chemicals, petroleum, and rubber.... 11.92 149.3 146.3 147.9 150.2 149.8 151.8 151.0 150.9 151.1 151.6 151.6 150.9 149.7 151.3 Chemicals and products.................. 7.86 150.1 146.8 147.8 150.2 150.4 152.0 151.4 153.0 152.7 153.0 154.5 154.8 154.4 155.3 Petroleum products......................... 1.80 127.4 123.5 126.9 128.5 129.7 129.3 128.2 126.0 130.4 129.5 125.5 122.6 119.2 119.4 Rubber and plastics products......... 2.26 164.0 163.4 165.1 166.8 163.9 168.8 167.9 163.6 161.9 164.5 162.3 159.8 158.0 Foods and tobacco................................ 9.48 121.9 121.5 120.7 121.5 119.5 121.3 122.0 122.2 121.7 124.7 123.0 124.7 125.5 124.6 Foods................................................ 8.81 122.7 121.8 121.3 122.4 120.3 122.4 122.9 123.2 122.4 125.4 124.5 125.6 126.5 125.4 Tobacco products............................ .67 111.6 118.1 112.9 111.2 108.1 105.3 110.1 109.1 113.7 115.8 104.2 113.3 Mining Metal, stone, and earth minerals......... 1.26 118.1 117.0 116.8 116.2 111.8 116.9 120.6 120.4 120.9 121.3; 122.0 119.5 119.5 119.0, Metal mining................................... .51 130.8 127.8 128.5 127.0 121.6 128.4 131.4 136.6 138.3 135.2 135.2 130.7 131.1 Stone and earth minerals................ .75 109.5 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2 111.7 113.1 111.9 111.6 Coal, oil, and gas................................. 5.11 108.3 107.6 107.1 107.3 108.9 109.5 109.2 109.5 109.7 108.8 107.5 108.7 109.7 111.3 Coal.................................................. .69 103.6 105.7 99.9 100.9 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.9 114.4 Oil and gas extraction..................... 4.42 109.0 107.9 108.3 108.4 109.1 109.5 110.0 109.7 110.8 109.6 107.0 108.7 109.3 110.8 Utilities Electric.................................................. 3.91 160.7 157.4 156.2 156.8 159.7 164.0 163.8 165.1 165.3 163.4 155.6 153.0 Gas........................................................ 1.17 124.2 Note.—Data for the complete year of 1972 are available in a pamphlet Published groupings include series and subtotals not shown sepa­ Industrial Production Indexes 1972 from Publications Services, Division rately. Figures for individual series and subtotals are published in the of Administrative Services, Board of Governors of the Federal Reserve monthly Business Indexes release. System, Washington, D.C. 20551. Indexes without seasonal adjustment are no longer being published in the Bulletin, but they are available in the Board‘s monthly release ’’Industrial Production (the G.12.3), which is available upon request to Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 BUSINESS ACTIVITY; CONSTRUCTION □ APRIL 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices * facturing 2 In­ Ca­ Market dustry u p t a il c iz it a y ­ Con­ N ri o c n u a l- g - Period Total Total C Fi o n P n a r ­ l oducts m I e n d te ia r­ te M ri a a t ls e­ f M a i c a n t n g u u r­ ­ o i = t n ( i u 1 o 1 m t 9 n p 0 6 f u 0 g 7 ) t . t s r t c t a r i o o u c n n t c s ­ ­ T m p t e o u e l m o t r n a a y t ­ l l — ­ 1 p m E lo e m n y ­ t ­ P ro a l y ls ­ T s r a e o l t t e a a i s l l 3 s C um on e ­ r m W c s o o a h d m l o e i l t ­ e y ­ Total sumer Equip­ goods 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 I960..................... 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..................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 1972..................... 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1973^................... 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 183.3 114.8 101.9 146.9 133.1 135.5 1973—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 I 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr........... 124.1 122.0 120.0 130.9 104.7 129.3 127.7 123.8 j 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 J 183.0 114.7 102.1 145.3 157 132.4 136.7 July.......... 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 1 175.0 114.6 101.8 146.3 163 132.7 134.7 Aug.......... 126.5 123.7 121.4 131.2 107.6 132.1 130.9 126.1 \ 83.3 199.0 115.0 102.1 146.7 162 135.1 142.9 Sept.......... 126.8 124.3 122.4 132.3 108.5 131.0 131.3 126.3 J 182.0 115.3 102.1 149.8 163 135.5 140.2 Oct........... 127.0 124.3 122.7 132.6 108.9 130.6 131.1 126.4 i 191.0 116.0 102.9 151.7 164 136.6 139.5 Nov.......... 127.5 125.3 123.7 133.5 110.1 131.1 131.5 127.4 \ 82.6 194.0 116.4 103.3 155.8 164 137.6 141.8 Dec........... 126,5 '124.0 '122.6 '131.3 '110.1 '129.1 '130.7 '126.4 J 161.0 116.4 103.2 153.7 161 138.5 145.3 1974—Jan........... '125.4 '122.6 '120.9 '129.2 '109.1 '129.3 '129.5 '125.0 I 155.0 116.2 '102.6 151.6 164 139.7 150.4 Feb........... r124.5'122.1 '120.5 '128.0 '110.0 '128.3 '128.2 '123.9 80.1 187.0 '116.6 101.7 '151.0 164 141.5 152.7 Mar.......... 123.9 121.8 120.1 127.3 110.0 127.8 127.2 123.4 J 116.4 101.1 149.8 168 154.5 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 first quarter 1973. 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 1974 Type of ownership and 1972 1973 type of construction Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total construction 1......................... 90,979101,071 6,423 6,839 8,644 8,814 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 By type of ownership: Public........................................ 24,043 26,686 1,629 1,717 2,046 2,071 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 Private 1.................................... 66,936 73,385 4,793 5,122 6,599 6,743 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 By type of construction: Residential building 1.............. 44,975 46,246 3,115 3,277 4,643 4,512 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 Nonresidential building........... 27,021 31,761 2,189 2,229 2,707 2,634 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 Nonbuilding............................. 18,983 22,064 1,119 1,333 1,294 1,668 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 Private housing units authorized... 2,219 1,796 2,399 2,209 2,129 1,939 1,838 2,030 1,780 1,750 1,596 1,316 1,314 1,237 1,301 (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 NorE.—Dollar value of construction contracts as reported by the 13,000 reporting areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ CONSTRUCTION A 57 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a ­ l Total Indus­ Bu C il o d m in ­ gs Other Other Total M ta i r l y i­ H w ig ay h­ d C v e m o a v a n t n e e i s n d o l e o t n r p ­ ­ Other 2 trial mercial build­ ings 1 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 16,052 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 15,489 197 1 109,238 79,367 43,268 36,099 5,423 11,619 5,437 13,620 29,871 901 10,658 2,095 16,217 197 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 16,496 197 3 135,079 102,568 57,720 44,848 6,058 15,569 6,131 17,090 32,511 1,162 1,924 1973—Feb... 136,416 104,128 61,487 42,641 5,180 14,873 6,145 16,443 32,288 1,422 11,019 1,989 17.858 Mar.. 137,467 103,838 60,747 43,091 5,479 15,071 6,179 16,362 33,629 1,303 10,454 2,825 19,047 Apr.r 133,858 101,298 58,111 43,187 5,287 15,473 6,282 16,145 32,560 1,158 9,901 2,062 19,439 May r 134,177 101,878 57,490 44,338 5,338 16,118 6,251 16,631 32,349 1,277 9,645 2,569 18.858 Juner 133.680 102,708 58,083 44,625 5,928 15,704 6.383 16,610 30,972 1,162 10,094 2,235 17,481 July'. 136,524 105,029 59,007 46,022 6,340 16,110 6,492 17,080 31,495 1,341 10,762 1,977 17,415 Aug.r 136.370 105,318 59,233 46,085 6,687 15,800 6,122 17,476 31,052 1,048 10,391 2,196 17,417 Sept.T 136,208 103,034 58.505 44,529 6,324 15,111 5,742 17,352 33,174 962 11,210 2,296 18,706 Oct.r. 135,871 102,388 56,458 45,930 6,573 15,561 5,883 17,913 33,483 1,032 2,330 Nov.r 134,831 101,922 54,667 47,255 6,742 16,139 6,035 18,339 32,909 1,040 Dec.r 133.370 99,611 52,728 46,883 7,057 15,685 6,089 18,052 33,759 1,128 1974—Jan.r. 132,762 98,391 50,439 47,952 6,899 16,323 6,199 18,531 34,371 1,282 Feb.p. 133,181 99,227 49,880 49,347 7,938 16,530 6,230 18,649 33,954 1,386 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.F Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 1963.......................... 1,603 261 328 591 430 1,012 589 1,635 1,603 32 292 221 71 151 1964.......................... 1,529 254 340 578 357 970 108 450 1,561 1,529 32 264 205 59 191 1965.......................... 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966.......................... 1,165 206 288 472 198 778 61 325 1,196 1,165 31 195 158 37 217 1967.......................... 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968.......................... 1,508 227 369 618 294 900 81 527 1,546 1,508 38 283 227 56 318 1969......................... 1,467 206 349 588 324 814 85 571 1,500 1,467 33 284 233 51 413 1970.......................... 1,434 218 294 612 310 813 85 536 1,469 1,434 35 482 421 61 401 1971......................... 2,052 264 434 869 486 1,151 120 781 2,084 2,052 32 621 528 93 497 1972......................... 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 22 475 371 104 576 1973......................... 2,045 277 440 897 428 1,132 118 795 2,057 2,045 12 247 161 86 580 1973—Feb................ 2,423 373 548 1,070 432 1,363 127 933 140 138 2 21 14 7 43 Mar............... 2,283 321 433 1,115 414 1,244 128 912 201 200 1 27 19 8 57 Apr................ 2,153 293 397 908 555 1,231 127 795 205 205 27 18 9 62 May.............. 2,330 294 531 983 522 1,243 159 929 234 234 29 18 11 57 June.............. 2,152 345 485 873 449 1,140 127 886 203 203 1 27 17 8 57 July............... 2,152 245 475 1,020 412 1,232 144 776 203 203 1 20 12 8 50 Aug............... 2,030 255 466 844 465 1,108 107 814 200 197 3 23 14 9 54 Sept............... 1,844 281 431 748 384 990 97 757 149 148 1 15 10 6 45 Oct................ 1,674 242 383 715 334 957 81 637 149 147 2 15 10 6 46 Nov............... 1,675 241 322 750 362 938 84 653 135 133 1 16 11 5 40 Dec.r............ 1,403 192 278 654 279 767 73 563 91 90 11 7 4 29 1974—Jan.r............. 1,470 254 331 656 229 794 89 587 88 86 2 19 13 7 29 Feb.*............ 1,800 257 371 841 331 1,041 82 677 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ lor Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Digitized for VFeRteAraSnsE ARd min, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ http://fraser.stlouisfed.org/ turers Assn. Federal Reserve Bank of St. Louis

A 58 EMPLOYMENT □ APRIL 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total non- Total Unemploy­ Period i p n o ( s N t p it u . u S l t a . i A t o i . n o ) a n l la ( b N N o . o r S t . f A i o n . r ) ce ( l f S a o b . r A c o e r .) Total Total E In m c n u p o l l t n o u a y ra g e l r d i 1 ­ In U pl n o e y m ed ­ (pe m r S r a . e A t c e n e . 2 t ) n t; agriculture industries 1968........................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969........................... 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973........................... 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1973—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 Feb................. 149,857 58,165 92,814 90,556 85,803 81,951 3,852 4,753 5.2 Mar................ 150,066 58,183 92,747 90,496 85,863 82,164 3,699 4,633 5. 1 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ T ti l o i r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1967......................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 1970.......................................................... 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971.......................................................... 70,645 18,529 602 3,411 4,442 15,142 3,796 11,869 12,856 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 1973*........................................................ 75,569 19,820 625 3,647 4,611 16,289 4,053 12,865 13,659 SEASONALLY ADJUSTED 1973—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............................................... 76,626 20,090 646 3,732 4,644 16,398 4,101 13,128 13,887 1974—Jan................................................ 76,533 20,006 654 3,636 4,684 16,417 4,109 13,136 13,891 Feb.*............................................ 76,773 19,892 658 3,744 4,688 15,456 4,126 13,219 13,990 Mar.*.......................................... 76,648 19,780 653 3,710 4,670 16,467 4,123 13,229 14,016 NOT SEASONALLY ADJUSTED 1973—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 75,384 19,729 J6u4l4y..........3...,.9..3..4................4..,.6..5..3..... 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............................................... 77,391 20,110 642 3,639 4,644 17,113 4,080 13,062 14,101 1974—Jan................................................ 75,620 19,818 642 3,280 4,618 16,290 4,072 12,913 13,987 Feb.*............................................ 75,754 19,726 643 3.317 4,613 16,112 4,089 13,060 14,194 Mar.*........................................... 75,963 19,657 640 3,391 4,628 16,167 4,098 13,136 14,246 Note.—Bureau of Labor Statistics; data include all full- and part- persons, domestic servants, unpaid family workers, and members of time employees who worked during, or received pay for, the pay pe- Armed Forces are excluded. riod that includes the 12th of the month. Proprietors, self-employed Beginning with 1970, series has been adjusted to Mar. 1971 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ PRICES A 59 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow s o h n m ip e e r - - F a o u n i e d l l e G a l n e a d c s ­ n i a n i n s g d h s ­ up a k n e d ep p t o io rt n a­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ s r coal tricity opera­ tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945.......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960.......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965.......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 K71......................... 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 1973—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............... 138.5 151.3 M40.6 126.9 153.6 172.8 131.0 128.0 130.5 126.7 133.0 141.4 129.2 127.6 131.3 1974—Jan................. 139.7 153.7 142.2 127.3 154.8 194.6 134.3 129.0 128.8 128.1 133.7 142.2 129.8 128.3 131.8 Feb................ 141.5 157.6 143.4 128.0 155.8 202.0 137.3 130.1 130.4 129.3 134.5. 143.4 130.8 128.9 132.3 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ c f f e P a o e s n e o r s o d d d e s ­ d s 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 i e c 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 M a q e h n e u r i a y d n n i ­ p t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i a o e u r n n n i t p a s t ­ ­ 1 ­ n c M e e o l i l u s a ­ s ­ 1960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961.............................. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962............................. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963............................. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964............................. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 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 1973—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 1974—Jan.................... 150.4 202.6 162.1 140.5 133.8 142.6 214.6 118.2 117.7 183.7 131.8 145.0 126.0 119.0 138.7 118.6 123.5 Feb................... 152.7 205.6 164.7 142.5 135.2 143.4 221.7 120.2 119.8 184.1 132.9 148.0 127.0 120.2 142.1 118.9 124.6 Mar.................. 154.5 197.0 163.0 146.6 136.1 143.4 232.2 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 1 Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 NATIONAL PRODUCT AND INCOME □ APRIL 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 IV I II III IV 1 1 Gross national product..................................... 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.21,289.11,199.21,242.51,272.01,304.51337.5 Final purchases.................................................. 101.4 57.2 120.1 278.0 922.5 972.61,049.41,149.11,281.11,191.01,237.81,267.51,299.81,319.4 1 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 579.5 617.6 667.2 726.5 804.0 752.6 779.4 795.6 816.0 825.2 Durable goods.............................................. 9.2 3.5 9.6 30.5 90.8 91.3 103.6 117.4 130.8 122.9 132.2' 132.8 132.8 125.6 Nondurable goods........................................ 37.7 22.3 42.9 98.1 245.9 263.8 278.7 299.9 335.9 310.7 322.2 330.3 341.6 349.6 30.3 20.1 28.1 62.4 242.7 262.6 284.9 309.2 337.3 319.0 325.0 332.6 341.6 350.0 | Gross private domestic investment................... 16.2 1.4 17.9 54.1 139.0 136.3 153.2 178.3 202.1 189.4 194.5I 198.2 202.0 213.9 14.5 3.0 13.4 47.3 131.1 131.7 147.1 172.3 194.2 181.2 189.9 193.7 197.3 195.9 10.6 2.4 9.5 27.9 98.5 100.6 104.4 118.2 136.2 124.3 130.9 134.1 138.0 141.8 Structures.............................................. 5.0 .9 2.9 9.2 34.2 36.1 37.9 41.7 48.4 43.0 45.3 47.2 49.5 51.7 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 64.3 64.4 66.5 76.5 87.8 81.2 85.5 86.9 88.6 90.1 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. 54.0 Nonfarm................................................ 3.8 .5 3.7 18.6 32.0 30.7 42.2 53.5, 57.4 56.4 58.4 59.1 58.61 53.4 Change in business inventories................... 1.7 -1.6 4.5 6.8 7.8 4.5 6.1 6.0 8.0 8.2 4.6; 4.5 4.71 18.0 1.8 -1.4 4.0 6.0 7.7 4.3 4.5 5.6| 7.3 7.9 4.4; 4.4 3.2 17.3 1 Net exports of goods and services................... 1.1 .4 1.3 1.8 1.9 3.6 .8 —4-6| 5.8 -3.5 .0 2.8 7.6 12.8 Exports.......................................................... 7.0 2.4 5.9 13.8 55.51 62.9 66.3 73.5 102.0 79.7 89.7i 97.2 104.5 116.4 Imports.......................................................... 5.9 2.0 4.6 12.0 53.6 59.3 65.5 78.1 96.2 83.2 89.7 94.4 97.0 103.6 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 210.0' 219.5 234.3 255.0 277.1 260.7 268.6 275.3 219.0 285.6 Federal........................................................... 1.3 2.0 16.9 18.4 98.8\ 96.2 98.1 104.4\106.6 102.7 705.5 107.3 106.8 106.8 National defense....................................... 13.8 14*. 1 78.4 74.6 71.6 74.4 13.9 12 A 74.3, 74.2 74.2 73.0 Other.......................................................... 3.1 4.3 20.4| 21.6 26.5 30.1 32.1 30.3 31.2 33.1 32.7 33.8 State and local.............................................. 7.2 6.0 7.9 19.5 111.2 123.3 136.2 150.5 170.5 158.0 163.0, 168.0 172.2 178.8 1 Gross national product in constant (1958) 203.6 141.5 263.7 355.3 725.6| 722.5 745.4 790.7 837.4 812.3 829.3 834.3 841.3 844.6 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, (generally the July issue) and the Aug. adjusted totals at annual rates. For back data and explanation of series, 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1972 1973 1929 1933 1941 1950 1969 1970 1971 1972 1973* Item IV I II III IV* National income................................................ 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,054.1 978.61,015.01,038.2 1,067.41,095.8 Compensation of employees............................. 51.1 29.5 64.8 154.6 566.0 603.9 644.1 707.1 785.2 731.2 757.4 774.9 794.0 814.7 50.4 29.0 62.1 146.8 509.7 542.0 573.8 627.3 691.4 648.7 666.7 682.3 699.3 717.2 Private....................................................... 45.5 23.9 51.9 124.4 405.6 426.9 449.7 493.3 546.0 510.9 525.1 538.7 553.2 566.9 .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 .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 Employer contributions for social in­ surance .................................................. .1 .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 84.2 77.1 80.6 81.5 85.0 89.8 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 58.5 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 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 98.8 104.3 107.9 112.0 112.6 Profits before tax......................................... 10.0 1.0 17.7 42.6 84.9 74.0 85.1 98.0 126.4 106.1 119.6 128.9 129.0 128.1 Profits tax liability.................................... 1.4 .5 7.6 17.8 40.1 34.8 37.4 42.7 55.9 45.9 52.1 51.4 51.6 56.0 8.6 .4 10.1 24.9 44.8 39.3 47.6 55.4 70.5 60.3 66.9 71.6 71.5 72.0 Dividends.............................................. 5.8 2.0 4.4 8.8 24.3 24.7 25.1 26.0 27.8 26.4 26.9 21.3 28.1 29.0 2.8 -1.6 5.7 16.0 20.5 14.6 22.5 29.3 42.7 33.9 40.0 44.2 43.4 43.0 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 -15.5 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

APRIL 1974 □ NATIONAL PRODUCT AND INCOME A 61 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973* IV I II III IV* Gross national product..................................... 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.31,289.11,199.21,242.51,373.01,304.51,337.5 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 81.6 87.3 93.8 102.4 109.9 105.1 106.9 109.0 110.5 113.1 Indirect business tax and nontax lia­ bility................................................... 7.0 7.1 11.3 23.3 85.9 93.5 102.4 109.5 117.8 112.8 115.6 117.2 118.5 119.9 Business transfer payments.................. .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.7 4.8 4.9 5.0 5.1 Statistical discrepancy.......................... .7 .6 .4 1.5 -6.1 -6.4 -3.4 -1.5 2.8 .2 1.1 3.2 3.7 3.4 Plus: Subsidies less current surplus of gov- -. 1 . 1 .2 1.0 1.7 1.2 1.7 .4 2.2 .9 .4 .6 — .2 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,054.1 978.61,015.01,038.31,067.41,095.8 Less: Corporate profits and inventory valu­ ation adjustment............................... 10.5 -1.2 15.2 37.7 79.8 69.2 80.1 91.1 109.2 98.8 104.3 107.9 112.0 112.6 Contributions for social insurance.... .2 .3 2.8 6.9 54.2 57.7 64.6 73.7 92.1 75.8 89.3 90.9 93.0 95.0 Excess of wage accruals over disburse­ ments.................................................. .0 .6 — .5 1 .0 .0 -.3 .0 .0 Plus: Government transfer payments........... .9 1.5 2.6 14.3 61.9 75.1 88.9 98.3 112.6 107.3 108.8 110.8 113.7 116.9 Net interest paid by government and consumers.......................................... 2.5 1.6 2.2 7.2 28.7 31.0 31.0 32.7 37.1 33.7 34.7 36.1 38.0 39.7 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 Business transfer payments................. .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.7 4.8 4.9 5.0 5.1 Equals: Personal income................................. 85.9 47.0 96.0 227.6 750.9 808.3 863.5 939.21,035.4 976.1 996.61,019.01,047.11,078.9 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.5 116.6 117.5 142.2 152.9 147.4 145.1 149.3 156.0 161.1 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 634.4 691.7 746.0 797.0 882.5. 828.7 851.5 869.7 891.1 917.8 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 596.2 635.5 685.8 747.2 827.8 774.3 801.5 818.7 840.1 850.8 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.2 726.5 804. o; 752.6 779.4 795.6 816.0 825.2 Consumer interest payments............ 1.5 .5 .9 2.4 15.8 16.8 17.7 19.7 22.5 20.7 21.2 22.0 23.0 23.8 Personal transfer payments to for- .3 .2 .2 .5 .9 1.0 1.0 1.0 1.2 1.1 .9 1.0 1.1 1.8 Equals: Personal saving................................... 4.2 -.9 11.0 13.1! 38.2 56.2 60.2 49.7 54.8 54.4 50.0 51.0 51.1 67.1 i Disposable personal income in constant (1958) ! dollars............................................................ 150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.0 595.1 603.9 604.8 609.5 613.2 S 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) 1973 1974 1973 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov Dec. Jan. Feb.* Total personal income. 939.21,035.4 997.41,003.31,011.61,018.71,036.61,035.6 1,047.31,058.51,068.51,079.41.089.01,087.01,093.6 Wage and salary disbursements. .. 627.8 691.5 667.2 671.1 677.6 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 725.8 Commodity-producing industries. . 226.0 251.9 242.2 243.5 245.9 248.3 251.7 253.4 254.8 257. 259.5 262.5 264.1 261.0 262.2 Manufacturing only.................. 175.9 196.8 189.6 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.1 203.0 203.0 Distributive industries................ 151.5 165.1 159.3 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171 111. 172.5 Service industries....................... 116.1 129.0 124.1 124.9 126.4 126. 127.7 129.4 130.8 132.5 132.9 134.1 135.9 136.8 138.1 Government................................ 134.2 145.4 141.6 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 152.2 153.0 Other labor income. 40.7 44.9 43.3 43.6 43.9 44.2 44.5 44.8 45.3 45 J 46.2 46.7 47.1 47.5 47.9 Proprietors’ income.............. 74.2 84.2 80.6 81.0 81.0 81.5 81.9 83.7 85.1 86.4 88.4 90.3 91.0 88.2 51.7 Business and professional. 54.0 57.5 56.3 56.4 56. 57.1 57.3 57, 58.0 58.1 58.5 58.7 58.6 58.6 58.8 Farm.................................. 20.2 26. 24.3 24.6 24.2 24.4 24.6 25.9 27.1 28.3 29.9 31.6 32.4 29.6 28.9 Rental income................. 24.1 25.1 24. 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 25.7 25.7 25, 25.8 Dividends........................ 26.0 27.8 26.9 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 28.7 29. 29.5 29.4 Personal interest income. 78.0 87.5 82.6 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.5 92.6 94.0 95.3 96.4 Transfer payments.......... 103.0 117.5 113.8 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.1 121.9 123.0 125.9 127.6 Less: Personal contributions for social insurance....................................... 34.7 43.1 41.9 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 44.3 44.3 47.0 47.1 Nonagricultural income. 911.5 1,000.5 965.3 970.9 979.5 986.4 994.21,001.81,013.11,031.8 1,030.0 1,039.0 1,047.51,048.11,055.4 Agricultural income 27.7 34.9 32.1 32.4 32.0 32.2 32.4 33.8 35.2 36.7 38.6 40.4 41.5 38.9 38.2 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 62 FLOW OF FUNDS □ APRIL 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973 Transaction category, or sector 1968 1969 1970 1971 1972 1973 HI H2 HI H2 HI H2 Funds raised, by type and sector 1 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 -.1 -.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 Debt capital instruments....................................... 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 Commercial...................................................... 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 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 Farm................................................................ 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 Nonfarm noncorporate.................................... 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 Corporate......................................................... 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 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 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 Foreign................................................................ 3.1 3.3 3.0 5.7 3.4 6.7 5.7 5.8 3.2 3.7 10.7 2.7 34 35 Nonfinancial business........................................ 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 Corporate........................................................ 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 94.7 143.5 165.6 184.8 134.9 152.1 148.1 183.3 193.8 175.9 38 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 outlay ...................................... 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.......................................... -1.1 -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 security issues by FHA, Export-Import Bank, and TVA. Issues by Federally 3 Excess of net investment over net funds raised. sponsored credit agencies are excluded as borrowing by financial institu­ Note.—Full statements for sectors and transaction types are available tions. Such issues are on p. A-63, 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 Digitized for FRASSeEctRio n, Division of Research and Statistics, Board of Governors of the nonfinancial corporations plus bankers’ acceptances. Federal Reserve System, Washington, D.C., 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ FLOW OF FUNDS A 63 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 1969 1970 1971 1972 1973 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors............................................. 95.9 88.0 92.6 135.0 156.1 177.7 123.8 146.1 134.7 177.8 192.4 163.1 1 By public agencies and foreign 2 Total net advances...................................................... 12.2 15.8 28.0 41.3 16.9 32.7 38.6 44.0 19.7 14.1 42.5 22.9 2 3 U.S. Government securities................................... 3.4 .9 15.7 33.4 7.3 10.4 32.9 34.0 12.7 2.0 21.4 -.6 3 4 Residential mortgages............................................ 2.8 4.6 5.7 5.7 5.2 7.5 4.2 7.1 6.2 4.3 4.9 10.2 4 5 FHLB advances to S&L’s..................................... .9 4.0 1.3 -2.7 * 7.2 -5.5 .2 -2.4 2.5 7.8 6.6 5 6 Other loans and securities..................................... 5.1 6.3 5.2 4.9 4.3 7.6 7.1 2.7 3.2 5.4 8.4 6.7 6 By agency— 7 U.S. Government................................................... 4.9 2.9 2.8 3.2 2.3 1.7 4.3 2.2 1.5 3.1 .3 3.1 7 8 Sponsored credit agencies..................................... 3.2 9.0 9.9 2.8 6.0 20.0 -1.4 7.0 7.5 4.5 18.7 21.4 8 9 Monetary authorities.............................................. 3.7 4.2 5.0 8.8 .2 9.3 8.4 9.3 4.5 -4.1 12.0 6.7 9 10 Foreign.................................................................... .3 -.3 10.3 26.4 8.4 1.6 27.3 25.5 6.2 10.6 11.5 -8.3 10 11 Agency borrowing not included in line 1................. 3.5 8.8 8.2 4.3 6.2 19.1 .9 7.7 7.4 5.0 17.6 20.7 11 Private domestic funds advanced 12 Total net advances...................................................... 87.2 80.9 72.8 98.0 145.4 164.2 86.1 109.9 122.4 168.6 167.5 160.8 12 13 U.S. Government securities................................... 13.3 4.6 5.4 -3.5 16.3 18.5 -9.2 2.1 7.1 25.3 13.3 23.8 13 14 State and local obligations..................................... 9.5 9.9 11.3 16.6 11.9 8.9 17.9 15.4 12.0 11.9 6.3 11.5 14 15 Corporate and foreign bonds................................ 13.8 12.5 20.0 19.5 13.2 11.8 22.1 16.8 14.2 12.1 10.3 13.3 15 16 Residential mortgages............................................ 15.5 15.7 12.8 29.1 44.6 44.4 24.8 33.4 38.4 50.8 50.5 38.3 16 17 Other mortgages and loans................................... 35.9 42.2 24.6 33.7 59.5 87.7 25.0 42.3 48.3 71.0 95.0 80.4 17 18 Less: FHLB advances............................................ .9 4.0 1.3 -2.7 * 7.2 -5.5 .2 -2.4 2.5 7.8 6.6 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions............................................................ 75.3 54.9 74.9 111.4 150.2 159.1 112.2 110.6 130.5 170.1 186.2 132.1 19 20 Commercial banking.............................................. 38.7 18.2 35.1 50.6 69.7 85.2 53.2 48.0 57.2 82.4 101.3 69.2 20 21 Savings institutions................................................ 15.6 14.5 16.9 41.5 48.7 35.2 45.4 37.5 48.4 48.9 49.1 21.4 21 22 Insurance and pension funds................................. 14.0 12.3 17.3 14.1 16.0 24.3 12.5 15.7 14.1 17.8 21.7 26.9 22 23 Other finance.......................................................... 7.0 9.9 5.7 5.3 15.8 14.3 1.2 9.4 10.6 21.0 14.2 14.5 23 24 Sources of funds.......................................................... 75.3 54.9 74.9 111.4 150.2 159.1 112.2 110.6 130.5 170.1 186.2 132.1 24 25 Private domestic deposits...................................... 45.9 2.6 63.2 90.8 97.8 86.8 107.7 73.9 97.9 97.9 104.8 68.9 25 26 Credit market borrowing....................................... 8.5 19.1 -.4 9.2 20.2 28.8 2.6 15.9 16.4 24.0 34.4 23.2 26 27 Other sources.......................................................... 21.0 33.3 12.1 11.3 32.2 43.5 1.9 20.8 16.2 48.2 47.1 40.0 27 28 Foreign funds...................................................... 2.6 9.3 -8.5 -3.2 5.1 5.7 -7.2 .8 5.5 4.7 5.2 6.1 28 29 Treasury balances............................................... -.2 * 2.9 2.2 .7 -1.0 -.8 5.3 -3.6 5.1 -1.4 -.6 29 30 Insurance and pension reserves......................... 11.4 10.4 13.1 9.6 11.3 19.0 7.7 11.5 8.4 14.1 16.7 21.3 30 31 Other, net............................................................ 7.2 13.5 4.5 2.7 15.1 19.8 2.2 3.2 5.9 24.3 26.5 13.2 31 Private domestic nonfinancial investors 32 Direct lending in credit markets............................... 20.3 45.0 -2.4 -4.2 15.4 33.8 -23.5 15.2 8.3 22.5 15.7 52.0 32 33 U.S. Government securities................................... 8.0 16.8 -8.3 -13.0 4.1 19.6 -22.4 -3.5 -3.3 11.5 13.0 26.3 33 34 State and local obligations..................................... -.2 8.7 -1.1 -. 1 2.1 1.2 -2.7 2.6 .9 3.4 .3 2.1 34 35 Corporate and foreign bonds................................ 4.7 7.4 10.1 8.2 4.9 -.2 8.6 7.7 4.5 5.2 —. 6 .4 35 36 Commercial paper.................................................. 5.8 10.2 -4.4 -.6 3.7 8.7 -7.3 6.0 6.7 .8 .4 17.1 36 37 Other....................................................................... 2.1 2.0 1.4 1.3 •6 4.4 .3 2.3 -.4 1.7 2.7 6.1 37 38 Deposits and currency................................................ 48.3 5.4 66.6 94.2 102.2 90.6 110.6 77.9 103.3 101.3 110.8 70.4 38 39 Time and savings accounts.................................... 33.9 -2.3 56.1 81.2 85.7 76.9 92.6 69.8 88.8 82.6 99.1 54.7 39 40 Large negotiable CD’S....................................... 3.5 -13.7 15.0 7.7 8.7 18.9 3.4 12.0 2.1 15.3 27.2 10.5 40 41 Other at commercial banks............................... 17.5 3.4 24.2 32.9 31.0 29.6 44.0 21.9 38.9 23.2 34.0 25.2 41 42 At savings institutions........................................ 12.9 8.0 16.9 40.6 46.0 28.4 45.3 35.9 47.8 44.1 37.9 19.0 42 43 Money..................................................................... 14.5 7.7 10.5 13.0 16.5 13.7 17.9 8.1 14.5 18.7 11.8 15.7 43 44 Demand deposits................................................ 12.1 4.8 7.1 9.6 12.1 9.9 15.1 4.1 9.1 15.3 5.7 14.2 44 45 Currency.............................................................. 2.4 2.8 3.5 3.4 4.4 3.8 2.8 3.9 5.5 3.4 6.0 1.5 45 46 Total of credit market instr., deposits, and currency. 68.7 50.5 64.2 90.0 117.7 124.4 87.1 93.0 111.7 123.8 126.5 122.4 46 47 Public support rate (in per cent)........................... 12.7 18.0 30.2 30.6 10.8 18.4 31.2 30.1 14.6 7.9 22. 1 14.0 47 48 Private financial intermediation (in per cent)........ 86.4 67.9 102.8 113.7 103.3 96.9 130.3 100.7 106.6 100.9 111.2 82.1 48 49 Total foreign funds................................................ 2.9 9.1 1.8 23.2 13.5 7.3 20.1 26.3 11.6 15.3 16.7 -2.2 49 Corporate equities not included above 1 Total net issues........................................................... 5.1 9.5 9.5 14.7 12.0 6.3 13.0 16.3 12.4 11.5 5.8 6.8 1 2 Mutual fund shares................................................ 5.8 4.8 2.6 1.2 -.6 -1.0 .3 2.1 -.8 -.4 -1.7 -.3 2 3 Other equities......................................................... -.7 4.7 6.9 13.5 12.6 7.3 12.7 14.2 13.3 12.0 7.4 7.1 3 4 Acquisitions by financial institutions....................... 10.8 12.2 11.4 19.2 15.6 9.7 23.4 15.0 17.6 13.6 12.3 7.1 4 5 Other net purchases................................................... -5.8 -2.7 -1.9 -4.6 -3.6 -3.4 -10.4 1.3 -5.1 -2.1 -6.6 -.3 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-62. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 U.S. BALANCE OF PAYMENTS □ APRIL 1974 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 Line Credits+, debits — 1971 1972 1973* IV lr II' III IV* Summary—Seasonally adjusted 1 Merchandise trade balance 1.................................................... -2,698 -6,912 688 -1,745 -945 -337 612 1,358 2 Exports............................................................................... 42,768 48,769 70,255 13,213 15,229 16,672 18,143 20.211 3 -45,466 -55,681 -69,567 -14,958 -16,174 -17,009 -17,531 -18,853 4 -2,918 -3,558 -2,171 -864 -825 -730 -541 -75 5 Travel and transportation, net................................................. -2,288 -2,853 -2,312 -730 -608 -703 -476 -525 6 7,972 7,863 9,723 2,232 2,330 2,133 2,333 2,927 7 9,456 10.433 13,974 2,991 3,177 3,248 3,479 4,070 8 Other U.S. investments abroad........................................ 3,443 3,492 4,576 875 1,006 1,088 1,182 1,300 9 -4,927 -6,062 -8,827 -1,634 -1,853 -2,203 -2,328 -2,443 10 739 851 972 237 232 238 221 280 11 807 -4,610 6,900 -870 184 601 2,149 3,965 12 -1,553 -1,570 -1,913 -429 -397 -389 -404 -724 13 Balance on goods, services, and remittances................................... -745 -6,180 4,987 -1,299 -213 212 1,745 3,241 14 U.S. Government grants (excluding military)......................... -2,045 -2,174 -1,947 -452 -345 -652 -499 -450 15 -2,790 -8,353 -3,041 -1,751 -558 -440 1,246 2,791 16 U.S. Government capital flows excluding nonscheduled -2,117 -1,714 -2,894 -627 -671 -583 -572 -1,069 17 Nonscheduled repayments of U.S. Government assets.......... 225 137 289 26 111 174 4 * 18 U.S. Government nonliquid liabilities to other than foreign -467 238 1,136 15 224 484 205 223 19 Long-term private capital flows, net....................................... -4,401 -152 -357 781 8 -303 1,666 -1,731 20 U.S. direct investments abroad........................................ -4,943 -3,404 -4,855 -771 -2,025 -946 -478 -1,407 21 Foreign direct investments in the United States............. -115 160 2,068 160 273 534 753 507 22 Foreign securities.............................................................. -966 -614 -791 -40 51 -126 -204 -512 23 U.S. securities other than Treasury issues....................... 2,269 4,335 4,093 1,768 1,745 496 1,187 664 24 Other, reported by U.S. banks........................................ -862 -1,120 -596 -442 -110 -238 247 -495 25 Other, reported by U.S. nonbanking concerns............... 216 492 -276 106 74 -23 161 -488 26 Balance on current account and long-term capital 4........................ -9,550 -9,843 1,214 -1,556 -886 -668 2,549 214 27 Nonliquid short-term private capital flows, net..................... -2,347 -1,637 -4,210 -982 -1,765 -1,426 46 -1,065 28 Claims reported by U.S. banks........................................ -1,802 -1,495 -3,953 -859 -1,804 -1,413 217 -953 29 Claims reported by U.S. nonbanking concerns.............. -530 -315 -735 -250 -11 -12 -470 -242 30 Liabilities reported by U.S. nonbanking concerns......... -15 173 478 127 50 -1 299 130 31 Allocations of Special Drawing Rights (SDR’s).................. 717 710 177 32 Errors and omissions, net........................................................ -10,784 -3,112 -4,793 -1,490 -3,898 477 -1,097 -275 33 Net liquidity balance......................................................................... -21,965 -13,882 -7,789 -3,851 -6,549 -1,617 1,498 -1,126 34 Liquid private capital flows, net.............................................. -7,788 3,542 2,503 2,367 -3,927 1,972 632 3,826 35 Liquid claims..................................................................... -1,097 -1,234 -1,933 -131 -2,050 869 -323 -429 36 Reported by U.S. banks........................................... -566 -742 -1,100 -77 -1,357 939 -303 -379 37 Reported by U.S. nonbanking concerns................. -531 -492 -833 -54 -693 -70 -20 -50 38 Liquid liabilities............................................................... -6,691 4,776 4,436 2,498 -1,877 1,103 955 4,255 39 To foreign commercial banks................................... -6,908 3,862 2,863 1,995 -1,897 709 851 3,200 40 To international and regional organizations........... 682 104 373 181 11 31 -50 381 41 Toother foreigners.................................................... -465 810 1,200 322 9 363 154 674 42 Official reserve transactions balance................................................ -29,753 -10,340 -5,286 -1,484 -10,476 355 2,130 2,700 Financed by changes in: 43 Liquid liabilities to foreign official agencies........................... 27,615 9,720 4,434 1,645 9,097 -798 -1,676 -2,184 44 Other readily marketable liabilities to foreign official agen­ cies 5........................................................................................ -551 399 1,118 117 1,202 259 11 -354 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt.............................................................. 341 189 -475 -167 -43 167 -452 -147 46 U.S. official reserve assets, net................................................. 2,348 32 209 -111 220 17 -13 -15 47 Gold................................................................................... 866 547 48 SDR’s................................................................................ -249 -703 9 -177 9 49 Convertible currencies...................................................... 381 35 233 82 233 50 Gold tranche position in IMF......................................... 1,350 153 -33 -16 -13 8 -13 -15 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................. 3,153 4,200 2,558 949 716 833 521 487 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)........................... 3,192 4,521 (6) (6) (6) (6) (6) (6) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)...................... 498 548 (6) (6) (6) (6) (6) (6) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 65 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1972 1973 Credits -f, debits 1971 1972 1973* IV Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance......................... -22,682 -14,592 -7,789 -4,028 -6,549 -1,617 1,498 -1, 126 Official reserve transactions balance. -30,470 -11,050 -5,286 -1,661 -10,476 355 2,130 2,700 Balances not seasonally adjusted Balance on goods and services................................... 807 -4,610 6,900 168 807 781 356 4,957 Balance on goods, services, and remittances............ -745 -6,180 4,987 -263 436 384 -62 4,230 Balance on current account....................................... -2,790 -8,353 3,041 -698 62 -301 -516 3,795 Balance on current account and long-term capital 4 -9,550 -9,843 1,214 343 -850 -776 825 2,015 Balances including allocations of SDR’s: Net liquidity........................................................ -21,965 -13,882 -7,789 -3,197 -6,197 -2,033 602 -161 Official reserve transactions»............................. -29,753 -10,340 -5,286 -1,503 -9,995 769 940 3,000 Balances excluding allocations of SDR’s: Net liquidity........................................................ -22,682 -14,592 -7,789 -3,197 -6,197 -2,033 602 - 161 Official reserve transactions............................... -30,470 -11,050 -5,286 -1,503 -9,995 769 940 3,000 1 Adjusted to balance of payments basis; excludes transfers under 4 Includes some short-term U.S. Govt, assets. military grants, exports under U.S. military agency sales contracts and 5 Includes changes in long-term liabilities reported by banks in the imports of U.S. military agencies. United States and in investments by foreign official agencies in debt 2 Includes fees and royalties from U.S. direct investments abroad or securities of U.S. Federally-sponsored agencies and U.S. corporations. from foreign direct investments in the United States. 6 Not available. 3 Equal to net exports of goods and services in national income and Note.—Data are from U.S. Department of Commerce, Bureau of Eco­ product accounts of the United States. nomic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1972 1973 1971 1972 1973 r 1974 Month: Jan... 3,601 4.074 4,955 7,111 3,599 r4,436 5,244 6,467 2 r — 361 —289 644 Feb.. 3,695 3,824 5,071 7,606 3,564 4,473 5,482 7,392 130 — 649 -412 213 Mar.. 3,790 3,869 5,309 3,628 4,515 5,411 160 — 647 -102 Apr.. 3,631 3,820 5,492 3,774 4,417 5,356 -143 -596 136 May. 3,746 3,882 5,557 3,908 4,486 5,700 -161 -604 -143 June. 3,672 3,971 5,726 4,037 4,468 5,765 -365 -497 -40 July.. 3,573 4.074 5,860 3,832 4,565 5,821 -259 -491 39 Aug.. 3,667 4,197 6,044 3,913 4,726 5,991 -247 -530 54 Sept.. 4,487 4,176 6,414 4,179 4,612 5,621 308 -436 792 Oct.. 2,669 4,316 6,584 3,469 4,738 5,969 -800 -421 615 Nov.. 3,196 4,473 6,871 3,456 5,148 6,628 -260 -675 243 Dec.. 3,881 4,558 6,954 4,169 5,002 6,084 -288 -444 870 Quarter I. 11,086 11,767 15,334 10,792 13,403 16,137 294 -1,657 -803 II.... 11,049 11,673 16,775 11,719 13,370 16,821 -670 -1,697 -46 III... 11,727 12,447 18,318 11,924 13,903 17,434 -197 -1,456 884 IV... 9,746 13,347 20,408 11,094 14,888 18,680 -1,348 -1,540 1,728 Year3.. 43,549 49,208 70,799 45,563 55,555 69,121 -2,014 -6,347 1,678 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 66 U.S. GOLD TRANSACTIONS □ APRIL 1974 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; 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) 1973 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 I II III IV Western Europe: -82 -55 -100 -25 4 -40 -83 -58 -110 -518 -405 -884 -601 600 325 -129 -473 -225 500 -1 -2 -2 -2 -52 41 2 200 -80 -60 -85 -209 -76 -60 -35 -19 -50 -25 -130 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 329 618 150 80 -879 -835 200 1 -6 -35 -49 16 -47 11 -29 -13 Total........................... -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada ............................... 200 150 50 Latin American republics: Argentina ......................... -30 -39 -1 -25 -25 -28 Brazil ........................... 72 54 25 -3 -1 * -23 Colombia ... 10 29 7 * -1 Venezuela. . • -25 Other............................... -11 -9 -13 -6 11 -40 -29 -80 -5 Total......................... 32 56 17 -41 9 -65 -54 -131 -5 Asia: -10 -4 -21 -42 japan -56 -119 Lebanon . -11 -11 -1 -95 -35 M alaysia........................... -34 -10 Philippines ..................... 25 20 * -1 9 40 -4 -2 Saudi Arabia -50 Singapore......................... -81 11 -30 Other ............................... -13 -6 -14 -14 -22 -75 -9 2-91 39 -3 Total . . . 12 3 -24 -86 -44 -366 42 -213 -38 -3 All other ... .............. -36 -7 -16 -22 3 — 166 3-68 -1 -81 -6 Total foreien countries -392 -36 -1,322 -608 -1,031 -1,118 957 -631 -845 -3 Inti Monetary Fund4........... 5-225 177 22 -3 10 -156 -22 -544 Grand total . -392 -36 -1,547 -431 -1,009 -1,121 967 6-787 -867 -547 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. 5 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 sub­ by 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 pur­ deposit 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 6 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

APRIL 1974 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 67 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r oi Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e C u c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l l 2 d st T o r c e k a 1 sury v c fo u C e c r r i r o e t e r i i e n s b g 5 n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 1960... 19,359 17,804 17,767 1,555 1973 1961. .. 18,753 16,947 16,889 116 1 ,690 Mar. .. 12,931 10,487 10,410 8 478 1,958 1962... 17,220 16,057 15,978 99 1,064 Apr__ 12,904 10,487 10,410 8 460 1,949 1963. .. 16,843 15,596 15,513 212 1,035 May... 12,916 10,487 10,410 16 464 1,949 1964. . . 16,672 15,471 15,388 432 769 June. .. 12,914 10,487 10,410 8 470 1,949 July. . . 12,918 10,487 10,410 8 474 1,949 1965. . . 15,450 6 13,806 613,733 781 6 863 Aug---- 12,923 10,487 10,410 8 479 1,949 1966. .. 14,882 13,235 13,159 1,321 3?6 Sept---- 12,927 10,487 10,410 8 483 1,949 1967. . . 14,830 12,065 11 ,982 2,345 420 Oct.. . . 1014,367 1011,652 1011,567 8 10541 102,166 1968... 15,710 10,892 10,367 3,528 1,290 Nov.... 14,373 11,652 11,567 8 547 2,166 1969. . . 716,964 11,859 10,367 72,781 2,324 Dec.. . 14,378 11,652 11,567 8 552 2,166 1970... 14,487 11,072 10,732 629 1,935 851 1974 1971 . . . 812,167 10,206 10,132 8 276 585 1,100 Jan.. . . 14,565 11,652 11,567 59 688 2,166 19729. . 13,151 10,487 10,410 241 465 1,958 Feb.... 14,643 11,652 11,567 68 757 2,166 1973.... 14,378 11,652 11,567 8 552 2,166 Mar__ 14,588 11,652 11,567 9 761 2,166 1 Includes (a) gold sold to the United States by the IMF with the right 7 Includes gain of $67 million resulting from revaluation of the German of repurchase, and (b) gold deposited by the IMF to mitigate the impact mark in Oct. 1969, of which $13 million represents gain on mark holdings on the U.S. gold stock of foreign purchases for the purpose of making at time of revaluation. gold subscriptions to the IMF under quota increases. For corresponding 8 Includes $28 million increase in dollar value of foreign currencies liabilities, see Table 6. revalued to reflect market exchange rates as of Dec. 31, 1971. 2 Includes gold in Exchange Stabilization Fund. 9 Total reserve assets include an increase of $1,016 million resulting 3 The United States has the right to purchase foreign currencies equiva­ from change in par value of the U.S. dollar on May 8, 1972; of which, lent to its reserve position in the IMF automatically if needed. Under ap­ total gold stock is $828 million (Treasury gold stock $822 million), reserve propriate conditions the United States could purchase additional amounts position in IMF $33 million, and SDR’s $155 million. equal to the U.S. quota. See Table 5. 10 Total reserve assets include an increase of $1,436 million resulting 4 Includes allocations by the IMF of Special Drawing Rights as follows: from change in par value of the U.S. dollar on Oct. 18, 1973; 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. 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 IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by reserve Period oth w e i r t h c o I u M nt F ries p in o s I it M io F n Per cent P s t u d a io b y o n s m o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F 1 T t c f i r c o u o a i r r n e n e r s s i s e g a n 2 i n c n ­ ­ I i d M n o c F l i o n la m n rs e e t P d u o rc l o l h a f a r s s e 3 s pu d r o R c l h l e a a ­ r s s es c T ha o n ta g l e Amount q U u o . o S f t . a p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1 ,744 4,834 94 326 1967—1969. 22 -84 59 -2,263 268 -1,998 2,836 55 2,324 1970. 1,155 5712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6,115 91 585 1972. 6 541 200 -47 694 6,810 94 465 1973. 6 754 -33 721 7,531 93 552 1973—Mar.. -5 -5 6,796 93 478 Apr.. 18 18 6,814 94 460 May. -4 -4 6,810 94 464 June. -6 -6 6,804 94 470 July . -4 -4 6,800 93 474 Aug.. -5 -5 6,795 93 479 Sept.. -4 -4 6,791 93 483 Oct... 6 754 -4 750 7,541 93 541 Nov.. -5 -5 7,536 93 547 Dec.. -5 -5 7,531 93 552 1974—Jan... -133 -4 -137 7,394 91 688 Feb.. -4 -65 -69 7,325 91 757 Mar.. -4 -4 7,321 91 761 For notes see opposite page. 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A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid ties to End IMF Nonmar­ Liquid non­ pe o ri f od Total a a c t f r r g t r i a i o s o o n i l m n n d s g s ­ i Total t p l S b i i t o e a h a e b s i r b n r o n t y m i k e r r l e t d i s ­ ­ ­ M n T b U o a o a a r b e t n n r . e S a k l d d e s s . e s 3 . t ­ N v k T b o e e c U o a r r n t o e n n t a . m i S n a b d d b s . ­ l a s l . e e r­ n v k T b o n e e U o a r n r o t e n t n a . c t i S a b d d e b o s . l s s l n . e e 4 ­ m r l O e i t a a a i a t b r b e d h k l i s i e e l e l 5 i r y ­ t­ a t m o l b b i e a a r t c i o r b n e o c i a k s i l m d a i s ­ l ­ 6 Total t p l S b i i t o e a h a e b i s r b n r o n t y m i k e r r l e t i d s ­ ­ ­ n M T b o U a o t a a r e b e n n r . s S l a k d d e s . 3 e s . > t 7 ­ o z a m g a n r t i g i t o a d o n i a r n o n t y n r i e n a , e i ­ l s ­ ­ 8 U.S. notes U.S. 1962 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9, J \2 26 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 5 2 9 5 1 1 2 2 . . 4 4 6 6 7 7 1 1 , ,1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3 . . 0 0 4 4 6 6 3 3 5 4 1 1 1 1 , , 9 96 6 5 0 1964 9, / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , . 7 7 9 8 0 6 1 1 3 3 , , 2 2 2 2 4 0 1 1 . . 1 1 2 2 5 5 1 1 . . 0 0 7 7 9 9 2 2 0 0 4 4 1 1 5 5 8 8 7 7 , , 2 3 7 0 1 3 3 3, , 7 7 5 3 3 0 3 3 , , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 . . 7 7 2 2 2 2 1965. 29,569 834 15,826 13,066 1,105 1,201 334 7,419 4,059 3,587 472 1,431 J31,145 1,011 14,841 12,484 860 256 328 913 10,116 4.271 3.743 528 906 1966 9 \31,020 1,011 14,896 12,539 860 256 328 913 9,936 4.272 3.744 528 905 1967 9, \ (3 3 5 5 , , 8 6 1 6 9 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 3 2 4 7 908 7 7 1 1 1 1 7 7 4 4 1 1 1 1 . .8 8 0 0 7 7 1 1 1 1 , , 2 0 0 8 9 5 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 69 7 1 7 1968 9, \ ( 3 38 8 , , 6 4 8 7 7 3 1 1 . . 0 0 3 3 0 0 1 1 7 7 , , 4 3 0 4 7 0 1 1 1 1. .3 31 18 8 4 5 6 29 2 7 7 0 01 1 2 2. . 5 5 1 1 8 8 2 2 . .3 3 4 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 . .4 44 44 4 4 6 6 0 5 9 7 7 2 25 2 1969 9, io \ ( 4 4 5 5 , , 9 7 1 5 4 5 1 1 . . 0 0 1 1 9 9 *0 1 1 5 5 , , 9 9 9 7 8 5 1 1 1 1 , , 0 0 5 7 4 7 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 . . 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, ,4 58 6 9 4 4 3 , , 0 93 6 9 4 5 5 2 2 5 5 6 6 5 63 9 1970—Dec. 9, \ ( 4 4 6 7 , , 9 00 6 9 0 5 5 6 6 6 6 2 2 3 3 . . 7 77 8 5 6 1 1 9 9 . . 3 33 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 . . 0 0 2 2 3 3 6 6 9 95 5 1 1 7 7 , ,1 1 6 3 9 7 4 4, , 6 67 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 65 7 8 84 4 6 4 /67,681 544 51,209 39,679 1.955 6,060 3,371 144 10,262 4,138 3,691 447 1,528 1971—Dec. u \67,808 544 50,651 39.018 1.955 6,093 3,441 144 10,949 4,141 3,694 447 1,523 1972—Dec.. , 82,886 61,524 39,998 5,236 12,108 3,639 543 14,665 5,070 4,645 425 1,627 1973—Feb... 87,856 68,475 45,413 6,377 12,110 3.627 948 12,679 5,082 4,710 372 1,620 Mar... 1290,886 1271,335 46,928 6,917 1212,128 3,617 1,745 12,769 5,144 4,768 376 1,638 Apr.. . 1390,582 70,752 45,953 6.934 12.245 3,631 1,989 12,851 5,348 4,949 399 1,631 May. . 92,087 70,919 46,116 6.934 12.245 3.628 1,996 14,058 5,361 4,977 384 1,749 June.. 92,188 70.700 45,712 6.934 12.245 3,805 2,004 14,356 5,463 5,080 383 1,669 July.. 93,217 71,026 46,136 6.934 12.245 3,705 2,006 15,311 5,363 4,989 374 1,517 Aug.. , 92,578 70,520 45,721 6,906 12.319 3,555 2,019 15,076 5,450 5,115 335 1,532 Sept.. 92,072 69.775 45,172 6,914 12.319 3,355 2,015 15,026 5,652 5,305 347 1,619 Oct... 93,173 69.701 45,211 6,929 12.319 3.233 2,009 15,953 5,699 5,325 374 1,820 Nov.r 92,581 67,398 43,789 6,207 12.319 3.234 1,849 17,256 5,917 5,507 410 2,010 Dec.. , 92,572 66.775 43,899 5,686 12.319 3.210 1,661 17,643 6,151 5,721 430 2,003 1974—Jan*., 90,076 63,848 41,547 5,214 12.321 3.210 1,556 18,019 6,284 5,835 449 1,925 Feb.*. 92,005 64,111 42.018 5,177 12.322 3.210 1,384 19,642 6,456 6.046 410 1,796 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 cer­ impact 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. 1 3 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; non­ porations. 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 commer­ cial banks abroad 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 1° 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

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n * Canada A re m L pu a e b t r i i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 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 \4 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 \23,775 13,615 2,951 1,681 4,708 407 413 /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972......................................................................................... 61,524 34,197 4,279 1,731 17,577 777 2,963 1973—Feb............................................................................... 68,475 40,773 4,290 1,895 17,907 809 2,801 Mar.............................................................................. 6 71,335 6 45,229 4,221 1,750 16,568 823 2,744 Apr.............................................................................. 7 70,752 7 45,608 4,157 1,915 15,420 839 2,813 May............................................................................. 70,919 46,646 4,104 1,903 14,429 940 2,897 June............................................................................. 70,700 46,967 4,111 1,998 13,734 992 2,898 July.............................................................................. 71,026 47,140 4,043 2,073 13,692 928 3,150 Aug.............................................................................. 70,520 47,260 3,836 2,014 13,637 738 3,035 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.............................................................................. 67,398 46,002 3,820 2,232 11,474 785 3,085 Dec.............................................................................. 66,775 45,697 3,838 2,544 10,884 788 3,024 1974—Jan.*............................................................................ 63,848 43.262 3,930 2,446 10,479 838 2,893 Feb.*........................................................................... 64,111 42,411 4,254 2,743 10,878 1,000 2,825 1 Includes Bank for International Settlements and European Fund. 6 Includes $15 million increase in dollar value of foreign currency 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ liabilities revalued to reflect market exchange rates. pean dependencies in Latin America. 7 Includes $147 million increase in dollar value of foreign currency 3 See note 9 to Table 6. liabilities revalued to reflect market exchange rates. 4 Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. Note.—Data represent short- and long-term liabilities to the official 5 Data on second line differ from those on the first line because certain institutions of foreign countries, as reported by banks in the United States; accounts previously classified as “Official institutions” are included in foreign official holdings of marketable and nonmarketable U.S. Treasury “Banks”; a number of reporting banks are included in the series for securities with an original maturity of more than 1 year, except for non­ the first time; and U.S. Treasury liabilities payable in foreign currencies marketable notes issued to foreign official nonreserve agencies; and in­ to official institutions of foreign countries have been increased in value by vestments by foreign official reserve agencies in debt securities of U.S. $110 million to reflect market exchange rates as of Dec. 31, 1971. Federally-sponsored agencies and U.S. corporations. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations6 Payable in dollars IMF Deposits End of period Total i Total Deposits b T i r ll U e s a . s S a u . n r d y s O t h e t o r h m r e t r ­ P f r o e a c n y r i u e c n a r i i b g ­ e l n s e in m g v e o e n l s d t t ^ ­ Total Demand Time2 b T i c r l c e U l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t r o b h m r e . t 4 r ­ Demand Time 2 certifi­ liab.4 cates3 1969............ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707........... / 1 4 4 1 1, , 7 7 6 1 1 9 4 41 1 , , 3 3 5 9 1 3 1 1 5 5 , , 7 7 8 9 5 5 5 5, , 9 9 6 2 1 4 1 1 4 4 , , 1 1 2 2 3 3 5 5 , ,5 5 1 1 9 4 3 36 6 8 8 4 4 0 0 0 0 8 82 20 0 6 6 9 9 1 1 5 5 9 9 2 2 1 1 1 1 3 3 8 8 1 1 1971 8.......... / \ 5 5 5 5, , 4 4 2 0 8 4 5 5 5 5, , 0 0 1 3 8 6 1 6 0 , , 4 3 5 9 9 9 4 5 , , 2 2 1 09 7 3 3 3 3 , , 0 0 2 2 5 5 1 6 1 , , 3 3 8 3 5 5 3 3 9 8 2 6 4 4 0 0 0 0 1 1 , , 3 3 6 7 7 2 7 7 3 3 1 1 9 9 2 2 2 2 1 1 0 0 8 8 9 9 2 6 197 2 60,722 60,225 8,288 5,631 31,850 14,456 496 1,413 86 202 326 800 1973—Feb... 64,220 63,707 7,786 5,597 36,522 13,801 513 1,418 133 144 287 854 Mar.. 65,891 65,343 7,607 5,613 37,947 14,175 548 1,426 114 134 260 918 Apr.. 65,182 64,598 8,119 5,655 36,440 14,383 584 1,429 119 112 221 976 May. 66,731 66,159 8,365 5,715 35,965 16,114 572 1,579 141 119 148 1,172 June. 66,717 66,073 9,114 5,830 34,931 16,198 644 1,569 155 134 169 1,110 July.. 67,924 67,317 8,989 5,879 34,556 17,893 607 1,488 206 116 116 1,049 Aug.. 67,398 66,788 8,436 6,137 34,257 17,958 611 1,487 173 118 61 1,129 Sept.. 67,056 66,395 8,754 6,130 33,702 17,809 660 1,552 80 100 62 1,311 Oct... 68,256 67,679 9,108 6,772 32,869 18,930 577 1,767 70 93 173 1,430 Nov.. 68,514 67,891 9,849 6,884 31,977 19,182 622 1,962 73 97 373 1,420 Dec.. 69,218 68,622 11,399 6,995 31,866 18,362 597 1,955 101 86 296 1,471 1974—Jan.*. 67,257 66,649 10,823 7,146 29,543 19,138 607 1,855 95 94 286 1,380 Feb.*, 69,402 68,634 11,478 7,065 30,274 19,817 768 1,696 77 70 232 1,317 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. d APRIL 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 io Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a r s a t . t e s S i a f s u . n i r 3 ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ f r o e c r n i u e n c i r i g ­ e n s Total Dema D n e d posits T bi c c r l U e e l a s a r t . t e S s a i s u f . n i r 3 ­ d y s O t l h i e a t o r h b m r e . t ­ 4 r c P u f r a o r y r e i e a n n i b c g l i n e es 1969............ 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 19707......... J \4 4 0 0 , , 5 4 4 9 1 9 1 1 5 5 , , 7 7 1 2 6 6 5 5 , , 7 8 6 0 5 2 1 1 3 3 . . 5 5 1 1 1 1 5 5, , 1 1 3 3 3 8 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 5 2 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 14 4 8 8 19718.......... J \ 5 5 3 3, , 6 6 6 3 1 2 1 6 0 , , 3 3 8 2 6 6 4 5 , , 0 0 2 1 5 7 3 3 2 2 . . 4 4 1 1 5 5 1 5 0 , , 4 4 8 4 9 3 3 3 9 8 2 6 3 3 9 9, . 6 0 7 1 9 8 1 1 , , 6 32 2 7 0 2 2, , 0 5 3 0 9 4 3 3 2 2. . 3 3 1 1 1 1 3 3. ,0 17 86 7 1 16 5 5 8 1972............ 59,308 8,203 5,429 31,523 13,657 496 39,998 1,589 2,880 31,453 3,905 171 1973—Feb.. 62,802 7,653 5,452 36,235 12,948 513 45,413 1,756 2,841 36,147 4,497 172 Mar.. 64,465 7,493 5,479 37,687 13,257 548 46,928 1,543 2,837 37,620 4,757 172 Apr.. (53,753 8,000 5,543 36,219 13,407 584 45,953 1,714 2,920 36,137 4,996 187 May. 65,151 8,224 5.597 35,817 14,942 572 46,116 1,719 2,949 35,736 5,525 187 June. 65,148 8,959 5,696 34,762 15,088 644 45,712 1,940 3,124 34,684 5,777 187 July.. 66,436 8,782 5,762 34,440 16,844 607 46,136 1,934 3,192 34,360 6,461 189 Aug.. 65,912 8,258 6,019 34,196 16,829 611 45,721 1,575 3,355 34,118 6,545 127 Sept.. 65,503 8,674 6,030 33,640 16,498 660 45,172 1,631 3,226 33,554 6,634 127 Oct.. . 66,489 9,038 6,678 32,696 17.500 577 45,211 1,810 3,846 32,613 6,815 127 Nov.. 66,552 9,776 6,787 31,604 17,762 622 43,789 2,034 3,802 31,529 6,298 127 Dec.. 67,263 11,297 6,909 31,570 16,891 597 43,899 2,125 3,911 31,491 6,245 127 1974—Jan.*. 65,401 10,728 7,052 19,257 17,758 607 41,547 2,378 3,712 29,152 6.177 127 Feb.* 67,706 11,400 6,996 30,042 18.500 768 42.018 2,412 3,700 29,917 5,861 127 To banksii To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Dema D n e d posi T ts ime2 T b c i r c l U e e l a r s a . t t s S i e a u f s . n i r ­ d y s O l t h i e a t o r h b m r e . t 4 r ­ Total Dema D n e d posi T ts ime2 T b c i r l c U e e l a s r a . t t s S e i a u f s . n i r ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ f r o e c r n u e c r i i g ­ e n s 1969....................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 t Q7ft7 (21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 121,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 1071 8 (13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972....................... 19,310 14,340 4,659 405 5 9,270 4,645 1,954 2,145 65 481 325 1973—Feb............. 17,388 12,337 4,084 371 5 7,877 4,710 1,813 2,240 83 573 341 Mar............. 17,537 12,393 4,145 331 5 7,912 4,767 1,805 2,312 63 588 376 Apr............. 17,800 12,453 4,336 312 7 7,799 4,949 1,951 2,312 75 611 398 May........... 19,035 13,673 4,646 319 8 8,701 4,977 1,859 2,329 73 716 385 June........... 19,437 13,899 5,054 258 8 8,578 5,081 1,965 2,314 70 732 457 July............. 20,300 14,893 4,958 321 8 9,606 4,989 1,890 2,250 72 776 418 Aug............. 20,191 14,593 4,807 353 10 9,423 5,115 1,876 2,311 68 861 483 Sept............. 20,331 14,493 5,071 430 8 8,983 5,305 1,972 2,374 77 881 533 Oct............. 21,278 15,503 5,251 473 7 9,772 5,325 1,977 2,359 76 912 449 Nov............. 22,762 16,761 5,735 469 8 10,549 5,506 2,007 2,517 67 915 495 Dec............. 23,364 17,174 6,941 512 11 9,710 5,721 2,232 2,486 68 936 469 1974—Jan.*........... 23,854 17,539 6,330 620 14 10,576 5,835 2,020 2,719 91 1,005 480 Feb.*.......... 25,688 19,001 6,857 521 32 11,592 6,046 2,131 2,775 93 1,047 641 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 nbnmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities 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 lOForeign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac­ ii Excludes central banks, which are included in “Official institutions.” quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop­ Note.—“Short term” refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the “holdings of dollars” IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti­ 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop­ 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S, A 71 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 1974 Area and country Dec. May June July Aug. Sept. Oct. Nov- Dec. Jan.* Feb.* Europe: ...................................................... 272 301 297Austri3a05 302 292 204 166 161 210 279 Belgium-Luxembourg.............................. 1,092 1,373 1,376 1,456 1,378 1,377 1,410 1,462 1,483 1,593 1,660 Denmark................................................. 284 502 489 477 437 409 470 527 659 527 456 Finland...................................................... 163 244 194 165 153 145 135 136 165 178 160 France....................................................... 4,441 5,327 5,406 5,452 5,246 5,296 4,143 3,415 3,483 3,241 2,967 Germany.................................................. 5,346 12,161 12,003 12,837 12,912 13,236 14,180 14,227 13,227 12,307 12,357 Greece....................................................... 238 219 219 240 236 215 280 236 389 262 238 Italy........................................................... 1,338 1,171 1,072 870 1,510 1,140 1,095 1,224 1,384 1,196 1,119 Netherlands.............................................. 1,468 2,427 2,369 2,029 1,945 2,022 2,534 2,866 2,886 2,522 2,502 Norway..................................................... 978 1,046 1,049 1,082 1,055 1,024 999 980 965 961 962 Portugal.................................................... 416 511 500 477 472 459 467 470 534 482 486 Spain......................................................... 256 325 334 282 237 259 284 319 305 264 304 Sweden...................................................... 1,184 1,787 1,905 1,951 1,871 1,835 1,787 1,807 1,885 1,975 1,973 Switzerland............................................... 2,857 3,272 3,268 3,310 3,226 3,309 3,316 3,081 3,374 3,281 3,510 Turkey...................................................... 97 71 75 102 115 72 83 75 102 221 146 United Kingdom.................................... 5,011 5,899 6,317 6,457 5,943 5,593 6,416 6,482 6,148 6,439 6,184 Yugoslavia................................................ 117 73 66 66 57 58 61 76 86 78 94 Other Western Europe i.......................... 1,483 2,164 2,360 2,965 3,015 3,099 3,427 2,926 3,352 3,097 3,009 U.S.S.R.................................................... 11 9 11 18 17 16 40 20 22 26 20 Other Eastern Europe............................. 81 66 74 81 90 114 96 101 110 92 95 Total.................................................. 27,134 38,949 39,383 40,621 40,216 39,970 41,425 40,597 40,722 38,953 38,521 Canada.......................................................... 3,467 3,796 3,328 3,393 3,787 3,721 3,812 3,967 3,862 4,158 4,431 Latin America: Argentina.................................................. 631 730 727 750 800 889 781 766 914 847 895 Bahamas 2................................................ 540 503 452 796 564 592 456 806 824 593 1,011 Brazil........................................................ 605 768 770 920 732 700 745 816 860 819 961 Chile.......................................................... 137 137 140 134 126 127 137 142 157 178 174 Colombia.................... *................... 210 219 200 200 168 167 207 221 247 219 238 Cuba.......................................................... 6 7 10 7 7 7 7 6 7 7 8 Mexico...................................................... 831 843 925 919 975 1,044 1,029 1,132 1,284 1,323 1,343 Panama.................................................... 167 192 186 194 217 204 231 282 279 281 326 225 170 180 190 177 178 152 124 135 144 154 Uruguay.................................................... 140 150 180 128 126 114 115 112 120 120 115 Venezuela.................................................. 1,078 968 1,055 1,067 1,079 941 1,130 1,420 1,468 1,460 1,636 Other Latin American republics............. 860 778 783 744 791 791 742 769 880 947 1,028 Netherlands Antilles and Surinam......... 86 64 68 78 61 65 70 63 71 70 61 Other Latin America.............................. 44 270 649 408 403 463 532 556 361 470 790 Total.................................................. 5,560 5,798 6,325 6,534 6,226 6,283 6,334 7,215 7,608 7,476 8,741 Asia: China, People’s Rep. of (China Mainland 39 44 41 38 43 40 37 40 38 38 39 China, Republic of (Taiwan)................... 675 832 846 790 810 802 779 764 757 735 715 Hong Kong.............................................. 318 368 341 289 356 349 363 383 372 389 416 India.......................................................... 98 145 110 141 103 99 105 71 85 152 183 Indonesia.................................................. 108 117 155 176 140 254 169 160 133 186 175 Israel......................................................... 177 142 161 159 146 173 279 330 327 337 311 Japan........................................................ 15,843 9,056 8,458 8,126 8,003 7,680 7,061 6,726 6,954 6,418 7,440 Korea........................................................ 192 231 226 219 217 213 198 210 195 222 204 Philippines................................................ 438 575 544 545 541 482 479 497 515 570 604 Thailand.................................................... 171 177 175 146 140 143 163 180 247 336 471 Other........................................................ 1,071 873 883 958 1,139 1,165 1,139 1,138 1,202 1,306 1,196 Total.................................................. 19,131 12,560 11,940 11,588 11,640 11,401 10,771 10,500 10,826 10,690 11,752 Africa: Egypt. ....................................................... 24 67 29 29 41 34 34 63 35 72 72 Morocco................................................... 12 8 11 15 10 11 10 14 11 12 12 South Africa............................................. 115 120 155 169 100 132 103 109 114 101 119 Zaire.......................................................... 21 45 17 21 27 19 26 24 87 42 30 Other......................................................... 768 786 904 803 683 765 747 824 808 837 1,044 Total.................................................. 939 1,025 1,118 1,037 862 961 919 1,034 1,056 1,064 1,277 Other countries: Australia................................................... 3,027 2,961 2,985 3,202 3,124 3,106 3,169 3,183 3,131 2,986 2,917 All other.................................................... 51 60 71 61 57 62 59 55 59 74 66 3,077 3,022 3,056 3,263 3,181 3,168 3,228 3,238 3,190 3,059 2,984 Total foreign countries............................... 59,308 65,151 65,148 66,436 65,912 65,503 66,489 66,552 67,263 65,401 67,706 International and regional: International3........................................... 951 1,132 1,149 1,099 1,125 1,183 1,402 1,610 1,628 1,537 1,404 Latin American regional......................... 307 345 329 309 289 298 299 290 271 256 228 Other regional4........................................ 156 102 89 81 72 70 66 62 57 63 63 Total.................................................. 1,413 1,579 1,569 1,488 1,487 1,552 1,767 1,962 1,955 1,855 1,696 Grand total....................................... 60,722 66,731 66,717 67,924 67,398 67,056 68,256 68,514 69,218 67,257 69,402 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1971 1972 1973 1971 1972 1973 Area and country Area and country Dec. Apr. Apr. Dec. Apr. Dec Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus....................... 2 2 3 9 19 Kuwait................................ 20 16 39 36 20 Iceland....................... 11 9 9 12 6 Laos.................................... 3 3 2 3 2 Ireland, Rep. of........ 16 15 17 22 54 Lebanon............................. 46 60 55 55 51 Malaysia............................. 23 25 54 59 42 Other Latin American republics: Pakistan.............................. 33 58 59 93 95 Bolivia....................................... 55 53 87 65 44 Ryukyu Islands (incl. Okinawa)6 29 53 Costa Rica................................. 62 70 92 75 76 Saudi Arabia...................... 79 80 344 236 244 Dominican Republic................ 123 91 114 104 89 Singapore........................... 35 45 77 53 140 Ecuador..................................... 57 62 121 109 51 Sri Lanka (Ceylon)............ 4 6 5 6 13 El Salvador............................... 78 83 76 86 77 Syria.................................... 4 6 4 39 4 Guatemala................................. 117 123 132 127 145 Vietnam.............................. 159 185 135 98 82 Haiti........................................... 18 23 27 25 17 Honduras................................... 42 50 58 64 51 Jamaica..................................... 19 32 41 32 30 Other Africa: Nicaragua.................................. 50 66 61 79 88 Algeria................................ 23 31 32 51 87 Paraguay................................... 17 17 22 26 18 Ethiopia (incl. Eritrea).... 11 29 57 75 62 Trinidad & Tobago.................. 10 15 20 17 14 Ghana................................. 8 11 10 28 18 Kenya................................. 9 14 23 19 21 Other Latin America: Liberia................................. 23 25 30 31 34 Bermuda................... (2) (2) (2) 127 178 Libya................................... 274 296 393 312 (7) British West Indies.. 32 23 36 100 105 Nigeria................................ 46 56 85 140 (7) Southern Rhodesia............ 2 2 2 1 2 Other Asia: Sudan.................................. 1 5 3 3 3 Afghanistan. 19 17 25 19 9 Tanzania............................. 6 6 11 16 12 Bahrain....... 21 18 24 23 (7) Tunisia................................ 9 7 10 11 4 Burma......... 10 5 2 17 (7) Uganda............................... 3 10 7 19 6 Cambodia.., 5 2 3 3 2 Zambia............................... 13 7 28 37 (7) Iran............. 59 88 93 114 103 Iraq............. 10 9 10 26 (7) All other: Jordan.......... 2 2 4 4 5 New Zealand...................... 23 27 30 34 37 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in “Europe.” 3 Data exclude “holdings of dollars” of the International Monetary 5 Represent a partial breakdown of the amounts shown in the “other” Fund but include IMF gold investment until Feb. 1972, when investment categories (except “Other Eastern Europe”). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other Ger­ United Other Total Other All regional Total institu­ Banks1 foreign­ many King­ Europe Latin Japan Asia other tions ers dom America coun­ tries 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 fl,000 562 439 93 259 87 165 63 32 136 1 32 10 \1,018 580 439 93 259 87 165 63 32 136 1 32 10 1973—Feb... 1,276 613 663 304 258 100 164 59 233 118 1 71 16 Mar.. 1,406 697 709 328 269 112 164 66 234 133 1 96 16 Apr.. 1,397 684 713 329 274 111 164 68 239 128 1 98 16 May. 1,379 688 691 313 274 104 164 68 231 115 1 96 16 June. 1,467 769 697 311 274 113 164 68 233 125 2 94 10 July.. 1,525 768 757 311 305 141 164 68 265 145 2 93 19 Aug.. 1,530 775 755 322 305 127 165 68 265 143 2 95 17 Sept.. 1,502 758 744 318 302 123 165 68 263 145 2 84 18 Oct... 1,473 735 738 312 305 122 165 68 265 140 2 81 18 Nov.. 1,469 753 717 313 287 117 165 67 246 138 2 80 19 Dec.. 1,487 761 726 310 296 121 165 66 245 151 5 78 18 1974—Jan.*. 1,498 801 697 311 275 111 165 65 236 140 2 78 11 Feb.*. 1,480 612 259 267 86 165 58 231 109 2 35 13 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

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.* Feb.* Europe: Belgium-Luxembourg..................... 6 6 6 6 6 6 6 7 7 7 7 7 7 Sweden............................................. 135 135 135 135 135 135 135 165 165 165 235 235 260 44 43 44 43 43 42 37 37 37 38 34 33 32 United Kingdom............................. 276 278 300 281 280 275 236 247 290 400 423 437 450 79 79 79 85 85 85 85 85 85 85 86 91 91 Eastern Europe............................... 5 5 5 5 5 5 5 5 5 5 5 5 5 Total......................................... 544 546 569 555 554 547 504 546 588 700 789 808 845 559 561 561 560 560 560 560 560 560 567 567 582 817 Latin America: 1 1 1 1 1 4 8 9 9 11 11 11 11 Other Latin America.................. 6 6 6 6 6 3 3 3 3 3 3 3 3 Total......................................... 7 7 7 7 7 7 11 12 12 14 14 14 14 Asia: Japan................................................ 5,421 5,961 5,978 5,978 5,977 5,977 5,949 5,950 5,950 5,143 4,552 4,066 3,718 Other Asia....................................... 10 10 10 10 10 9 9 11 11 11 11 11 11 Total........................................ 5,431 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 5,154 4,563 4,077 3,729 Africa................................................... 183 183 183 183 183 183 183 158 158 158 158 158 157 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries....................... 6,749 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 6,617 6,116 5,663 5,587 International and regional: International................................... 176 186 176 142 72 1 1 21 6 1 1 20 51 Latin American regional................ 26 26 27 27 27 28 45 45 47 47 48 49 49 Total......................................... 202 212 202 169 100 29 46 66 53 48 49 69 100 Grand total.............................. 6,951 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 6,665 6,164 5,732 5,687 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total China, Total g B iu e m l­ C a a d n a ­ ( R Ta e i p w . a o n f ) m G a e n r y ­ Italy Korea T la h n a d i­ Total m G an e y r­ 2 e S r w la it n z d ­ 197 0 3,563 2,480 32 2,289 20 25 100 1,083 542 541 197 1 3 9,657 7,829 32 2,640 20 5,000 22 100 3 1,827 612 1,215 197 2 15,872 14,333 20 2.840 20 11,315 22 100 1,539 306 1,233 1973—Mar. 415,870 14,464 20 2.840 10 11.471 22 100 41,407 153 1,254 Apr. 416,015 14,459 20 2.840 5 11.471 22 100 41,556 172 1.384 May 16,012 14,456 20 2.840 2 11.471 22 100 1.556 172 1.384 June, 16,189 14,633 2.840 11.670 22 100 1.556 172 1.384 July. 16,089 14,533 2.840 11.670 22 1.556 172 1.384 Aug. 16,015 14,383 2,690 11.670 22 1.631 172 1.458 Sept. 15,813 14,183 2,490 11.670 22 1.631 172 1.458 Oct.. 15.691 14.233 2.540 11.670 22 1.458 1.458 Nov. 15.692 14.233 2.540 11.670 22 1.459 1.459 Dec. 15,669 14.210 2.540 11.670 1.459 1.459 1974—Jan.. 15.671 14.210 2.540 11.670 1,461' 1.461 Feb. 15.672 14.210 2.540 11.670 1,462 1.462 Mar. 15,680 14.210 2.540 11.670 1,470 1,470 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 obliaations 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 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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) 1 1972 1973 1974 Area and country Dec. May June July Aug. Sept. Oct. Nov. Dec. Jan.* Feb.* Europe: Austria........................................................... 8 9 12 10 18 14 15 14 11 14 36 Belgium-Luxembourg................................ 120 73 94 96 107 190 150 145 148 134 143 Denmark....................................................... 59 69 69 56 67 52 50 53 48 50 60 Finland.......................................................... 118 140 141 134 125 114 97 89 108 106 93 France............................................................ 330 447 389 434 368 413 461 525 621 649 682 Germany....................................................... 321 356 399 349 281 313 366 392 311 342 381 Greece............................................................ 29 19 19 28 20 16 26 23 35 41 36 Italy................................................................ 255 327 326 278 278 242 282 363 316 313 330 Netherlands.................................................. 108 115 109 101 155 144 132 172 133 139 146 Norwav.......................................................... 69 67 65 79 70 67 74 82 72 85 91 Portugal......................................................... 19 17 19 18 14 18 23 22 23 25 25 Spain............................................................... 207 360 387 272 251 183 183 189 222 208 180 164 267 234 224 184 166 155 177 153 135 106 Switzerland................................................... 125 190 245 208 206 234 242 203 176 240 338 Turkey............................................................ 6 6 9 7 6 6 8 16 10 16 9 United Kingdom........................................ 997 1,009 1,025 1,077 1,357 1,304 1,236 1,178 1,456 1,490 1,726 Yugoslavia..................................................... 22 13 12 12 10 10 8 19 10 9 15 Other Western Europe............................... 20 21 29 20 21 26 34 26 27 19 20 U.S.S.R........................................................... 41 50 56 56 42 46 49 51 46 29 36 Other Eastern Europe................................ 49 69 73 84 83 97 87 72 59 64 65 Total....................................................... 3,067 3,624 3,710 3,542 3,664 3,654 3,678 3,811 3,985 4,108 4,519 1,914 2,400 2,034 2,168 2,186 1,909 2,210 1,979 1,960 1,880 2,070 Latin America: 379 408 408 431 442 455 469 485 498 520 538 Bahamas 1..................................................... 515 433 448 518 484 619 698 608 873 578 1,040 Brazil.............................................................. 649 851 891 965 915 879 837 826 900 953 958 Chile............................................................... 52 40 43 36 50 40 80 125 151 136 155 Colombia....................................................... 418 398 412 420 422 423 423 413 397 426 428 Cuba............................................................... 13 13 14 13 13 13 15 13 12 11 11 Mexico........................................................... 1,202 1,343 1,406 1,386 1,348 1,329 1,388 1,357 1,370 1,343 1,417 Panama.......................................................... 244 190 218 223 262 252 273 263 266 291 297 Peru................................................................ 145 147 169 180 176 178 208 204 178 186 184 Uruguay......................................................... 40 31 34 34 35 39 45 47 55 57 51 Venezuela...................................................... 383 440 454 454 441 430 436 469 517 483 510 Other Latin American republics.............. 388 383 380 373 394 409 431 465 490 542 545 Netherlands Antilles and Surinam.......... 14 35 38 48 38 31 23 17 13 17 19 Other Latin America.................................. 36 74 66 71 91 91 137 124 140 356 462 Total....................................................... 4,476 4,786 4,981 5,153 5,111 5,187 5,464 5,417 5,861 5,900 6,616 Asia: China, People’s Rep. of (China Mainland) 1 5 3 7 6 7 22 36 31 24 19 China, Republic of (Taiwan).................... 194 216 200 198 183 141 128 117 140 119 147 Hong Kong................................................... 93 132 204 218 116 128 121 124 147 169 189 India............................................................... 14 19 21 18 17 19 14 16 16 16 15 Indonesia....................................................... 87 97 94 91 77 81 89 96 88 105 107 Israel............................................................... 105 116 111 133 133 145 145 155 166 153 140 Japan.............................................................. 4,152 5,530 5,751 5,753 5,791 5,801 5,745 6,033 6,400 6,467 6,958 Korea............................................................. 296 338 347 348 336 348 372 368 401 429 477 Philippines.................................................... 149 139 144 134 129 121 105 118 181 189 182 Thailand........................................................ 191 194 173 188 185 179 206 225 273 323 364 Other.............................................................. 300 324 354 352 350 361 349 377 394 466 560 Total....................................................... 5,584 7,110 7,401 7,441 7,321 7,330 7,295 7,664 8,237 8,461 9,158 Africa: Egypt.............................................................. 21 25 34 44 41 43 38 40 35 42 40 Morocco........................................................ 4 4 4 5 5 11 4 7 5 4 4 South Africa................................................. 143 166 163 150 151 157 150 147 129 133 134 Zaire............................................................... 13 13 42 43 49 48 51 61 60 56 67 Other.............................................................. 118 136 145 149 173 146 163 155 159 178 175 Total...................................................... 299 343 388 391 419 405 406 410 388 413 420 Other countries: Australia....................................................... 291 232 260 271 230 218 223 251 243 279 268 All other........................................................ 40 47 46 40 41 36 36 36 43 37 49 Total...................................................... 330 280 305 310 271 254 259 287 286 316 317 Total foreign countries................................... 15,670 18,544 18,820 19,005 18,973 18,739 19,312 19,569 20,716 21,079 23,100 3 2 1 2 1 1 1 1 1 1 1 Grand total.......................................... 15,672 18,546 18,821 19,007 18,974 18,739 19,313 19,570 20,717 21,080 23,101 1 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

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 75 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c t o i s u a a ­ l ns t B o a - nks1 Others C s t o t o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i c r f g n c a a n f c e d o c e e p e c r r s t s ­ t ­ . Other 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 c o n o v r a r d i n m t e t , i i c e f l g s e i . s e ­ n , ­ Other paper 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2............. [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 19723............. fl5,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 [15,672 14,826 5,671 163 2,970 2,538 3,276 3,226 2,653 846 441 223 182 1973—Feb.. 18,033 16.962 6,449 162 3,669 2,619 3,589 3,302 3,622 1,071 596 313 162 Mar.. . 18,383 17,432 6,517 141 3,677 2,698 3,732 3.482 3,700 951 524 262 165 Apr.. . 18,362 17,544 6,826 146 3,928 2,753 3,815 3.483 3,419 819 460 207 152 May. . 18,546 17,692 6,933 163 3,813 2,956 3,824 3,623 3,313 854 499 237 118 June.. 18,821 17,982 7,318 205 4,070 3,043 3,881 3,984 2,800 839 552 140 147 July... 19,007 18,144 7,024 162 3,926 2,936 3,871 3,922 3,327 863 561 151 151 Aug... 18,974 18,087 6,973 176 4,029 2,768 3,948 3,716 3,450 887 488 151 248 Sept.. . 18,739 17.963 6,829 160 3,917 2.752 4,070 3,718 3,345 777 459 143 175 Oct.. .. 19,313 18,453 7,003 216 3,989 2.798 4,099 3,774 3,577 861 510 187 163 Nov.. . 19,570 18,780 7,090 252 4,084 2.753 4.287 3,788 3,614 790 512 131 148 Dec.. . 20,717 20,055 7,718 271 4,589 2,859 4,306 4,155 3,876 662 428 119 115 1974—Jan.*.. 21,080 20,277 7,415 303 4,419 2,692 4,388 4,107 4,367 804 504 162 137 Feb.*.. 23,101 22,257 8,118 303 5,016 2.799 4.288 4,553 5,298 844 520 122 202 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 cover­ branches, which were previously reported as “Loans”, are included in age with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo u a r y r i e r n a i e b g n l n e ­ U K d n i o i n m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l ri r es Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1970................... 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971................... 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 11 07*/7Z0 *2................. \ f 5 4 , , 0 9 2 5 5 4 4 4 , , 5 5 3 5 9 0 8 83 3 3 6 4 4 3 3 0 0 3 3 , , 2 28 76 5 4 3 3 75 5 4 4 0 0 1 1 4 4 5 5 7 70 0 1 4 4 4 0 06 6 2 1 , , 0 9 1 9 2 6 3 3 1 48 9 9 88 0 1 0 5 5 0 1 3 4 1973—Feb , 5,137 4,636 836 477 3,323 449 52 135 763 434 1,993 342 930 540 Mar.. .. 5,288 4,781 883 496 3,402 460 47 121 854 453 1,985 336 986 552 Apr........ 5,431 4,935 903 544 3,487 447 49 122 907 477 2,007 337 1,030 552 May.... 5,519 5,015 932 545 3,538 455 48 131 923 511 2,006 331 1,058 558 June.... 5,604 5,095 978 550 3,567 464 45 131 980 523 2,002 311 1,096 561 July.... 5,623 5,114 957 554 3,604 455 54 128 1,029 517 1,982 310 1,122 535 Aug........ 5,519 5,007 1,002 514 3,491 466 46 137 1,007 404 1,963 304 1,157 548 Sept.. . . 5,385 4,859 1,010 507 3,342 456 70 131 975 418 1,921 252 1,186 501 Oct........ 5,567 5,011 1,041 537 3,434 476 80 130 1,011 491 1,960 258 1,203 514 Nov.. . . 5,763 5,222 1,127 554 3,541 463 78 138 1,058 484 2,068 251 1,246 516 Dec........ 5,856 5,304 1,129 570 3,605 480 72 140 1,098 489 2,072 243 1,282 533 1974—Jan.*. .. 5,794 5,245 1,115 558 3,572 470 79 135 1,096 484 2,036 249 1,284 509 Feb.*... 5,867 5,264 1,166 580 3,519 524 79 144 1,158 456 2,057 249 1,293 510 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 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. a APRIL 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 * securities 2 Foreign bonds Foreign stocks Net piirchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N ha s e a s t e l e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1971............................... 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 1972............................... 3,316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 409 1973............................... 290 -165 455 450 6 18,569 13,846 4,723 1,471 2,454 -983 1,729 1,554 176 1974—Jan-Feb*......... -477 52 -529 -509 -20 2,920 2,668 252 171 509 -338 396 413 -17 1973—Feb.................... 515 -12 527 579 -52 1,761 1,045 716 145 144 1 194 145 49 Mar................... 554 10 544 540 3 2,220 1,111 1,109 144 125 19 211 114 97 Apr.................... 31 -9 40 16 23 1,566 1,040 525 117 292 -175 121 112 9 May................... -48 -33 -15 * -15 1,142 1,101 41 140 150 -10 137 125 12 June -71 -69 -1 -1 1,087 899 188 125 103 22 123 111 12 July.................... -79 -71 -9 -9 1,320 898 422 101 207 -106 108 107 1 Aug.................... -51 17 -68 -28 -39 1,328 864 464 96 157 -61 117 125 -8 Sept.................... 40 20 20 8 12 1,174 963 212 67 101 -34 115 105 10 Oct..................... 29 -13 42 15 27 1,806 1,736 71 97 336 -238 129 131 -2 Nov................... -691 -5 -686 -722 36 1,947 1,689 258 103 305 -202 156 178 -22 Dec.................... -501 1 -502 -521 19 1,364 1,384 -19 144 209 -65 159 144 15 1974—Jan.*................. -432 20 -452 -472 19 1,697 1,455 242 71 364 -292 209 207 2 Feb.*................. -45 31 -76 -37 -39 1,223 1,213 10 100 145 -45 187 205 -18 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries ; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur­ Net pur­ Ger­ Nether­ Switzer­ United Other Total Latin Period chases Sales chases or France many lands land King­ Europe Europe Canada America Asia Other, sales (—) dom 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....................... 12,760 9,961 2,799 439 2 339 685 366 288 2,119 99 -1 577 5 1974—Jan.-Feb.* 1,714 1,384 330 106 8 89 85 21 55 365 -28 -41 24 9 1973—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............ 868 728 141 21 9 -8 53 -14 46 107 34 -10 5 5 May.......... 778 898 -120 -2 -43 -14 -22 -38 3 -116 -7 -16 11 9 June.......... 766 632 134 2 -23 7 52 15 21 74 8 -2 55 -2 July........... 881 564 316 67 -19 25 80 28 28 210 19 11 71 5 Aug............ 973 631 341 53 1 60 57 40 34 245 10 11 81 -6 Sept........... 948 734 214 63 6 18 54 15 14 169 * 27 21 -3 Oct............ 1,368 1,272 95 6 -7 5 -34 68 24 61 -26 16 41 4 Nov........... 1,481 1,071 409 106 27 54 68 67 21 343 -18 -9 108 -14 Dec............ 873 878 -5 30 9 32 -64 -25 6 -12 -8 -4 34 -16 1974—Jan.*......... 973 799 174 68 4 37 45 27 22 202 -27 -42 33 9 Feb.*........ 741 585 156 39 5 52 40 -5 33 163 * 1 -9 1 i Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Total m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 1 684 15 -1 197 327 39 612 37 19 -2 -21 39 197 2 1,871 336 74 135 357 315 1,293 82 22 323 * 148 197 3 1,924 201 -19 307 275 475 1,206 49 44 588 10 26 1974—Jan.-Feb.* -78 23 162 -23 167 12 -223 -29 1973—Fe b 270 6 4 2 30 46 60 149 36 1 110 -26 Mar.... 759 45 3 -22 -7 -3 158 174 * 4 623 -42 Apr........ 385 33 2 65 -96 94 98 16 4 199 68 May.... 161 1 -4 -1 76 120 22 215 7 1 2 -63 June.... 54 6 -3 -3 -19 -2 -20 7 -1 * 10 59 July. ... 106 * -57 13 -15 7 -52 3 4 1 150 Aug....... 123 31 1 -5 57 10 94 -1 4 2 24 Sept.. .. -2 2 -1 14 12 26 -1 1 11 -39 Oct........ -25 53 46 -14 1 87 4 1 1 -118 Nov.. . . -151 4 28 76 7 124 -21 3 -209 -48 Dec........ -15 9 37 60 32 152 16 -183 1 1974—Jan.*3... 68 3 117 137 1 -104 20 Feb.*... -146 1 44 -15 30 -5 -119 -49 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance di­ of U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF 20. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1971................. -992 -310 -682 31 -275 -46 -366 -57 32 1970—Dec.............................. 349 281 1972.................. -651 -90 -561 492 -651 -69 -296 -66 29 1973................. -807 139 -946 -141 -559 -120 -168 3 37 511 314 419 300 1974-Jan-Feb* -354 2 -356 -156 -215 -11 28 -5 3 333 320 311 314 1973—Feb.. . . 49 -2 51 -3 41 -16 29 * * Mar___ 116 23 93 24 34 8 27 * 1 325 379 Apr.... -166 16 -182 22 -193 -6 -5 * * 312 339 May. .. 2 11 -9 -21 -13 6 6 -1 14 286 336 June... 34 7 27 10 6 13 -13 1 9 372 405 July.... -105 3 -108 -13 -93 -13 9 * 2 Aug.. .. -69 5 -75 -21 -44 -4 -8 * 3 1973—Mar.............................. 310 364 Sept---- -25 4 -28 -28 8 -8 -1 * 2 316 243 Oct........ -240 4 -243 -25 -148 -8 -64 1 1 290 255 Nov... -225 9 -234 -47 -78 -6 -104 * * 333 231 Dec.. .. -50 51 -101 -45 -11 -15 -34 2 3 1974—Jan.p. .. -291 -4 -287 -81 -204 -2 -1 -1 2 Note.—Data represent the money credit balances and Feb.*... -63 6 -69 -76 -11 -9 29 -4 1 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 2IB 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 $22,291 million and $22,609 million, respectively, on Jan. 31, 1974. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange Note.—Components may not add to totals due to rounding. rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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 Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 1970—Dec............ 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1,403 1971—Dec............ 61,334 4,798 2,311 2,486 54,752 11,211 24,550 1,167 17,823 1,785 1972—Dec............ 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 22,910 2,268 1973—Jan............. 81,199 4,926 2,327 2,600 74,006 11,945 36,797 1,621 23,643 2,267 Feb............ 87,901 4,325 1,565 2,760 81,067 12,272 42,203 1,747 24,846 2,509 Mar............ 91,646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 25,679 2,980 Apr............ 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 26,247 2,979 May........... 92,994 4,218 1,926 2,292 85,577 13,490 42,746 2,004 27,337 3,199 Juner........ 98,756 4,955 2,333 2,622 90,207 13,528 46,277 1,900 28,501 3,594 July........... 103,793 5,404 2,505 2,899 94,583 15,316 47,555 2,035 29,678 3,806 Aug............ 105,194 5,158 2,291 2,868 95,997 15,667 47,414 2,108 30,809 4,039 Sept........... 110,673 4,853 1,917 2,936 101,022 17,194 49,312 2,242 32,274 4,797 Oct............. 114,025 4,847 1,832 3,016 104,464 18,118 51,011 2,336 32,999 4,714 Nov.r........ 120,600 5,895 2,915 2,980 109,057 18,866 53,813 2,208 34,170 5,648 Dec............ 122,499 4,883 1,887 2,997 112,855 19,133 56,233 2,502 34,986 4,761 1974—Jan............. 123,791 4,605 1,535 3,070 114,597 19,456 56,977 2,732 35,431 4,589 1970—Dec............ 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Dec............ 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 9,536 577 1972—Dec............ 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 12,651 817 1973—Jan............. 54,196 4,592 2,303 2,289 48,828 8,093 26,764 1,063 12,908 777 Feb............ 57,567 3,985 1,534 2,451 52,692 8,550 29,829 1,097 13,215 891 Mar............ 58,745 3,988 1,957 2,031 53,752 8,438 30,568 1,124 13,622 1,005 Apr............ 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 13,839 1,055 M ay........... 58,019 3,930 1,899 2,031 52,871 8,548 28,677 1,140 14,506 1,218 June r........ 61,843 4,602 2,285 2,317 55,885 8,493 31,261 1,129 15,003 1,356 July r.......... 64,145 4,799 2,469 2,330 57,866 9,229 31,803 1,220 15,615 1,480 Aug............ 65,478 4,522 2,232 2,290 59,491 10,033 31,390 1,281 16,788 1,464 Sept............ 68,114 4,415 1,866 2,549 62,015 10.718 32,458 1,281 17,558 1,685 Oct............. 70,433 4,382 1,789 2,592 64,394 11,613 33,531 1,319 17,931 1,657 Nov.r........ 75,934 5,421 2,855 2,566 68,730 12,277 36,092 1,401 18,959 1,783 Dec............ 79,853 4,429 1,849 2,580 73,657 12,755 39,332 1,586 19,984 1,767 1974—Jan............. 81,838 4,166 1,499 2,667 75,942 13,211 39,977 1,847 20,906 1,730 IN UNITED KINGDOM Total all currencies................................ 1970—Dec............ 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 6,235 601 1971—Dec............ 34,552 2,694 1,230 1,464 30,996 5,690 16,211 476 8,619 862 1972—Dec............ 43,684 2,234 1,138 1,096 40,430 5,659 23,983 609 10,179 1,020 1973—Jan............. 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 10,252 966 Feb............ 48,533 1,945 848 1,097 45,487 5,887 28,473 585 10,542 1,102 Mar............ 49,696 2,052 1,130 922 46,520 5,783 29,148 663 10,926 1,124 Apr............ 49,181 1,662 794 868 46,332 5,437 29,255 651 10,989 1,188 May........... 49,080 1,744 910 834 46,001 5,725 28,394 614 11,268 1,336 June........... 51,415 1,876 1,012 864 48,031 5,279 30,348 607 11,797 1,508 July........... 54,265 2,500 1,492 1,008 50,189 6,274 30,826 649 12,440 1,576 Aug............ 53,153 1,878 937 942 49,692 6,849 29,696 685 12,462 1,583 Sept............ 56,127 1,473 604 870 52,771 8,022 30,967 660 13,123 1,882 Oct............. 57,589 1,853 879 974 53,778 7,970 31,775 695 13,337 1,958 Nov.r........ 62,294 2,285 1,245 1,040 57,146 8.552 34,059 701 13,834 2,863 Dec............ 62,033 1,789 738 1,051 58,075 8,773 34,620i 735 13,946 2,169 1974—Jan............. 63,757 1,484 521 964 60,180 9,123 35,792 907 14,358 2,093 Payable in U.S. dollars.......................... 1970—Dec............ 22,574 6,596 15,655 2,223 9,420 4,012 323 1971—Dec............ 24,428 2,585 21,493 4,135 12,762 4,596 350 1972—Dec............ 30,381 2,146 27,787 4,326 17,976 5,485 447 1973—Jan............. 30,652 2,468 27,778 4,184 18,069 5,526 405 Feb............ 32,746 1,814 30,423 4,568 20,219 5,637 508 Mar............ 32,658 1,953 30,183 4,324 20,033 5,827 522 Apr............ 31,833 1,539 29,778 4,034 20,119 5,625 515 May........... 30,906 1,654 28,666 3,943 18,848 5,874 587 June........... 32,864 1,784 30,386 3,900 20,413 6,073 694 July........... 33,486 2,193 30,569 4,042 20,209 6,319 724 Aug............ 32,935 1,540 30,694 4,887 19,224 6,584 701 Sept............ 34,401 1,348 32,210 5,399 19,873 6,939 842 Oct............. 35,647 1,700 33,176 5,769 20,415 6,993 770 Nov.r........ 39,321 2,098 36,386 6,273 22,786 7,328 838 Dec............ 40,458 1,642 37,967 6,509 24,009 7,449 849 1974—Jan............. 42,131 1,368 39,932 6,825 25,098 8,010 830 IN BAHAMAS AND CAYMANS " Y .... Total, all currencies................................ 1970—Dec............ 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—Dec............ 8,493 1,282 505 778 7,119 3,798 3,320 92 1972—Dec............ 13,091 1,496 225 1,272 11,419 6,965 4,454 175 1973—Jan............. 13,064 1,387 182 1,206 11,495 6,753 4,742 181 Feb............ 13,559 1,461 83 1,378 11,860 7,189 4,671 238 Mar............ 13,764 1,210 89 1,121 12,284 7,519 4,765 271 Apr............ 13,653 1,407 293 1,113 11,988 6,726 5,262 258 May........... 14,730 1,498 272 1,227 12,888 7,242 5,647 343 June........... 16,184 1,917 410 1,507 14,002 8,206 5,796 265 July........... 17,086 1,929 350 1,579 14,862 8,802 6,060 295 Aug............ 19,968 2,262 579 1,684 17,256 10,182 7,073 450 Sept............ 21,072 2,281 490 1,791 18,281 10,772 7,509 511 Oct............. 21,399 1,976 272 1,704 18,889 11,010 7,879 533 Nov............ 22,243 2,526 824 1,702 19,139 10,801 8,338 579 Dec............ 23,971 rl,993 313 1,680 21,511 12,517 8,993 467 Digitized for FRASER 1974—Jan............. 124,047 2,011 228 1,793 21,556 12,210 9,347 479 http://fraser.stlouisfFeodr. onrogte/s see p. A-77. Federal Reserve Bank of St. Louis

APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In nuiuoas oi uonaib; To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 47,354 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 .............1970—Dec. .. .Total, all currencies 61,336 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 .............1971—Dec. 80,035 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 81,199 3,414 836 2,578 75,272 11,746 42,259 9,236 12,032 2,513 ............1973—Jan. 87,901 3,967 1,132 2,835 80,848 11,868 46,370 9,387 13,223 3,086 .........................Feb. 91,646 4,137 1,218 2,919 84,066 12,219 48,520 9,454 13,873 3,443 90,987 4,095 1,044 3,051 83,345 12,638 47,874 9,538 13,294 3,547 92,994 4,548 1,122 3,426 84,655 13,284 48,536 9,331 13,505 3,792 98,756 4,579 1,009 3,569 90,133 13,315 52,388 9,593 13,837 4,044 103,793 4,491 1,213 3,279 94,940 15,040 55,705 9,676 14,519 4,362 .........................July 105,193 4,710 1,085 3,625 95,918 16,031 56,152 8,587 15,148 4,565 110,673 4,815 1,178 3,637 100,742 17,017 58,734 8,769 16,221 5,116 114,026 4,762 1,307 3,455 104,342 17,654 61,095 9,220 16,372 4,922 120,600 4,858 1,088 3,771 109,915 18,109 65,526 9,692 16,589 5.827 122,499 5,234 1,181 4,053 112,133 18,454 66,070 10,031 17,578 5,132 123,791 5,311 1,731 3,581 113,709 18,672 67,805 9,455 17,777 4,771 ............1974—Jan. 36,086 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 ............1970—Dec. .Payable in U.S. dollars 42,033 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 .............1971—Dec. 56,375 3,104 848 2,256 51,811 8,178 30,253 6,913 6,467 1,459 ............1972—Dec. 56,404 2,995 693 2,302 52,113 8,400 29,233 7,680 6,800 1,297 ............1973—Jan. 60,814 3,466 954 2,511 55,780 8,750 32,023 7,808 7,200 1,568 .........................Feb. 62,430 3,613 1,038 2,575 57,127 8,735 33,131 7,771 7,489 1,691 60,915 3,562 886 2,676 55,604 8,657 31,970 7,743 7,234 1,750 61,427 4,005 955 3,050 55,636 8,810 32,275 7,361 7,190 1,786 64,660 4,035 868 3,167 58,781 8,774 35,470 7,354 7,183 1,844 66,335 3,868 1,046 2,823 60,520 9,626 36,285 7,092 7,517 1,947 .........................July r 67,401 4,158 943 3,215 61,075 10,641 36,616 6,242 7,577 2,167 4,233 1,022 3,211 63,756 11,036 38,212 6.366 8,142 2,325 4,213 1,146 3,068 65,537 11,713 38,838 6,475 8,510 2,296 77,951 4,236 897 3,339 70,536 12,261 43,001 6,430 8,844 3,179 4,650 1,014 3,636 73,545 12,808 44,005 7,258 9,473 2,591 82,141 4,813 1,602 3,211 74,841 12,906 44,961 7,080 9,895 2,487 ............1974—Jan. IN UNITED KINGDOM 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 .............1970—Dec. .. .Total, all currencies 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 .............1971—Dec. 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 ............1972—Dec. 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 1,858 235 1,624 46,750 3,164 28,119 7,388 8,078 1,088 49,181 1,970 165 1,805 46,075 3,397 27,796 7,509 7,373 1,136 2,028 170 1,857 45,792 3,614 27,168 7,324 7,685 1,260 1,957 122 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 2,198 143 2,055 57,434 3,886 36,348 7,700 9,500 2,662 l 2,431 136 2,295 57,623 3,994 35,332 8,076 10,272 1,978 63,757' 2,429 346 2,083 59,356 4,350 37,003 7,672 10,332 1,971 ............1974—Jan. : 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. I 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 ............1972—Dec. i 1,335 72 1,264 29,091 2,234 16,205 6,162 4,490 500 ............1973—Jan. > 1,661 226 1,436 31,714 2,188 18,360 6,394 4,771 591 » 1,676 195 1,481 31,655 2,128 18,334 6,251 4,942 598 > 1,735 119 1,616 30,782 2,318 17,672 6,245 4,546 533 : 1,809 138 1,671 29,730 2,225 16,982 5,897 4,626 608 t 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 r 1,866 137 1,729 32,342 2,245 19,949 5,126 5,022 809 > 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 I 2,173 113 2,061 36,816 2,519 22,289 5,852 6,156 824 41,009> 2,200 329 1,871 37,884 2,846 22,978 5,799 6,262 925 ............1974—Jan. IN BAHAMAS AND CAYMANS 542 4,183 488 2,872 823 90 ............1970—Dec. . .Total, all currencies 750 7,557 1,649 4,784 1,124 188.............1971-Dec. 1,220 11,703 1,964 8,395 1,344 168 ............1972—Dec. 1,137 11,760 1,875 8,502 1,383 167 i 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 1,521 18,026 4,227 11,982 1,817 419 \ 1,608 18,856 4,639 12,036 2,181 680 ') 1,667 19,151 4,924 12,249 1,978 581 I 1,559 20,089 5,085 13,239 1,765 596 1 1,504 22,012 5,526 14,679 1,807 455 Digitized for Fi R24A,0S46ER 1,848 21,758 5,293 14,547 1,917 441 http://fraser.stlouisfed.org/ For notes see p. A-77. Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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 * sec.2 1968 1972 1973 1973 Mar. 27......................... 4,920 Jan. 26.. 1,419 July 3.. 1,766 Dec. 5.. 1,911 June 26......................... 6,202 Feb. 23.. 1,068 11.. 1,664 12.. 1,938 Sept. 25......................... 7,104 Mar. 29.. 1,532 18.. 2,146 19.. 2,382 Dec. 31 (1/1/69)........... 6,039 25.. 2,086 26.. 1,703 Apr. 26.. 1,374 1969 May 31.. 1,465 Aug. 1.. 2,226 1974 June 28.. 1,443 8.. 2,276 Mar. 26........................... 9,621 15.. 1,900 Jan. 2.. 1,158 June 25........................... 13,269 July 26.. 1,345 22.. 2,446 9.. 1,322 Sept. 24........................... 14,349 Aug. 30.. 1,270 29.. 2,802 16.. 2,040 Dec. 31........................... 12,805 Sept. 27.. 2,023 23.. 2,004 Sept. 5.. 1,512 30.. 1,686 1970 Oct. 25.. 1,415 12.. 1,942 Nov. 29.. 1,745 19.. 1,801 Feb. 6.. 1,659 Mar. 25........................... 11,885 Dec. 27.. 1,406 26.. 1,731 13.. 2,218 June 24........................... 12,172 20.. 1,741 Sept. 30.......................... 9,663 1973 Oct. 3.. 1,695 27.. 1,689 Dec. 30.......................... 7,676 10.. 1,790 Jan. 31.. 1,413 17.. 1,814 Mar. 6.. 1,610 1971 Feb. 28.. 790 24.. 1,642 13.. 2,274 Mar. 28.. 1,127 31.. 1,768 20.. 2,459 Mar. 31......................... 2,858 4,358 27.. 2,964 June 30......................... 1,492 4,500 Apr. 25.. 1,123 Nov. 7.. 1,754 Sept. 29.......................... 2,475 3,578 May 30.. 1,351 14.. 1,870 Dec. 29........................... 909 June 27.. 1,521 21.. 2,473 28.. 2,458 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 .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom ments 1 ments 1 1971............... 294 43,195 13,815 1972............... 325 50,934 215,530 1969..................... 1,491 1,062 161 183 86 663 534 1,141 697 150 173 121 372 443 1973— A M p a r r . . . . . . 3 3 2 2 8 7 3 3 5 5 8 9 , , 2 3 5 8 5 9 1 1 5 5 , , 5 5 1 1 3 9 1I707/1I —TJ-\/*CnC .x2 • \ (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 May. . 289 58,015 15,511 J J u u l n y e . . .. . 2 3 8 3 0 4 5 5 7 7 , ,5 0 4 5 5 4 1 1 5 5 , , 4 4 8 6 6 4 1iy0/7Z0 —Lr\A/C/»C .1^ rr. . . \ [ 2 1 , , 2 9 5 6 5 5 1 1 , ,7 4 9 4 2 6 16 5 9 5 3 3 0 4 7 0 4 68 2 8 7 7 0 2 2 4 5 8 3 5 5 Aug... 259 55,855 15,455 Sept... 250 55,407 15,437 1973—Feb.r... . 3,002 2,228 170 380 224 1,017 1,093 Oct___ 426 54,766 417,122 Mar.r___ 3,087 2,292 156 414 225 1,105 969 Nov... 420 52,998 17,104 Apr.r.. .. 3,047 2,278 118 416 234 1,044 887 Dec.... 251 52,070 17,068 May r.... 3,194 2,420 130 433 211 1,010 1,011 Juner.... 3,209 2,549 74 453 134 1,064 882 1974—Jan.... 392 49,582 17,044 July r___ 3,272 2,494 136 475 167 1,070 959 Feb.. . 542 50,255 17,039 Aug.r---- 3,361 2,585 82 486 209 1,068 940 Mar... 366 51,342 17,037 Sept.r___ 3,224 2,510 78 476 161 1,088 891 Oct.r. ... 2,907 2,244 66 449 148 992 881 Nov.r.... 3,152 2,517 64 435 136 1,044 922 1 Marketable U.S. Treasury bills, certificates of in­ Dec.r.. .. 3,095 2,520 37 425 113 1,050 775 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign 1974—Jan ' 2,804 2,234 52 363 154 1,047 770 currencies. 2 The value of earmarked gold increased because of the change in par value of the U.S. dollar in May 1972. 1 Negotiable and other readily transferable foreign obligations payable on demand 3 Includes $15 million increase in Mar. and $160 million or having a contractual maturity of not more than 1 year from the date on which the increase in Apr. in dollar value of foreign currency obliga­ obligation was incurred by the foreigner. tions revalued to reflect market exchange rates. 2 Data on the two lines for this date differ because of changes in reporting coverage. 4 The value of earmarked gold increased because of the Figures on the first line are comparable in coverage with those shown for the preceding change in par value of the U.S. dollar in Oct. 1973. date; figures on the second line are comparable with those shown for the following date. hel N d o f t o e r . — in E te x r c n lu a d ti e o s n a d l e p a o n s d i ts r e a g n io d n a U l .S o . r g T an re iz a a s t . io s n e s c . u r E it a ie r s ­ the N o U t n e i . t — ed D S a t t a a t e r s e . p T re h s e e y n t a r t e h e a li p q o u r i t d io n as s o e f t s t h a e b r t o o a ta d l o cl f a i l m ar s g e o n n o f n o b re a i n g k n i e n r g s r c e o p n o c r e t r e n d s b i y n marked gold is gold held for foreign and international nonbanking concerns in the United States and are included in the figures shown in accounts and is not included in the gold stock of the Tables 25 and 26. United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 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. Mar. June Sept.* Dec. Mar. June Sept.* Europe: Austria.............................................. 2 3 2 2 19 14 17 15 Belgium-Luxembourg..................... 83 75 81 129 73 121 109 112 Denmark.......................................... 7 8 19 18 29 26 20 21 Finland.............................................. 4 4 4 7 25 21 21 31 France................................................ 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 Norway............................................. 14 14 13 10 16 18 19 21 Portugal............................................ 4 5 4 12 19 19 25 24 Spain.................................................. 81 82 72 79 157 159 140 169 Sweden.............................................. 13 23 25 32 57 45 49 53 Switzerland...................................... 112 134 90 148 82 87 90 63 Turkey.............................................. 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 1 1 Mexico.............................................. 27 34 37 36 183 195 204 187 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 Indonesia.......................................... 16 16 15 15 34 39 36 41 Israel.................................................. 13 16 9 11 31 34 27 28 Japan................................................. 189 229 275 328 473 518 506 632 Korea................................................ 21 19 18 20 63 47 41 48 Philippines........................................ 16 25 19 16 48 47 47 52 Thailand............................................ 5 5 6 6 23 25 24 27 Other Asia........................................ 152 156 140 179 203 191 203 203 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................................................... 1 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............................. 3,430 3,381 3,361 3,671 6,199 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 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 26. SHORT TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n l a a b r l s e cu P fo r a r r y e i e n a n i b g c l i n e es Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter’s name 1969—Sept........................ 1,797 1,450 346 3,874 3,222 386 267 / 1,786 1,399 387 3,710 3,124 221 365 r\op 1 I 2,124 1,654 471 4,159 3,532 244 383 2,387 1,843 543 4,457 3,868 234 355 Sept........................ 2,512 1,956 557 4,361 3,756 301 305 Dec......................... 2,677 2,281 496 4,160 3,579 234 348 1971 _Mar........................ 2,437 1,975 462 4,515 3,909 232 374 June........................ 2,375 1,937 438 4,708 4,057 303 348 Sept........................ 2,564 2,109 454 4,894 4,186 383 326 / 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,004 4,467 290 247 1972—Mar........................ 2,844 2,407 437 5,177 4,557 318 302 June........................ 2,925 2,452 472 5,331 4,685 376 270 Sept........................ 2,933 2,435 498 5,495 4,833 432 230 Dec.1..................... / 3,119 2,635 484 5,723 5,074 411 238 \ 3,430 2,918 512 6,199 5,523 394 282 1973—Mar........................ 3,381 2,858 523 7,011 6,112 462 437 June....................... 3,361 2,780 581 7,254 6,392 504 358 Sept.*..................... 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 2 7. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th l e l r America 1969—Sept.......................... 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec 1 t / 2 1 , , 3 72 0 5 4 2 2 , , 2 3 1 6 5 3 1 1 5 5 2 2 4 4 3 4 3 2 4 5 9 62 6 1 17 7 7 2 7 7 3 7 3 4 8 2 8 0 1 1 4 4 1 2 2 27 4 1 9 7 6 5 9 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 / 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....................... / 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

APRIL 1974 o EXCHANGE RATES A 83 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 ll t i r n ia g) B (f e r l a g n iu c m ) C (d a o n ll a a d r a ) D ( e k n ro m n a e r ) k ( F m i 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 k a c ) n h y e 111.36 3.8659 2.0139 95.802 13.334 23.742 18.087 27.424 113.61 4.0009 2.0598 99.021 13.508 23.758 18.148 28.768 119.23 4.3228 2.2716 100.937 14.384 24.022 19.825 31.364 141.94 5.1649 2.5761 99.977 16.603 26.165 22.536 37.758 1973—Mar............................................................................ 141.29 4.8795 2.5378 100.333 16.275 25.628 22.146 35.548 Apr............................................................................. 141.50 4.8330 2.4895 99.928 16.099 25.872 21.959 35.252 141.50 4.9082 2.5356 99.916 16.241 25.277 22.341 35.841 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 Sept............................................................................ 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 Dec............................................................................. 148.33 5.1150 2.4726 100.058 16.089 26.104 21.757 37.629 1974—Jan.............................................................................. 148.23 4.8318 2.3329 100.859 14.981 25.138 19.905 35.529 Feb............................................................................. 148.50 5.0022 2.4358 102.398 15.570 25.568 20.187 36.844 Mar............................................................................. 148.55 5.1605 2.5040 102.877 16.031 26.143 20.742 38.211 Period (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p en an ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o e N rla e n th d ­ s Ze N a e l w and (guilder) (dollar) 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 1973........................................................................................ 12.071 245.10 .17192 .36915 40.988 8.0000 35.977 136.04 1973—Mar............................................................................ 13.260 247.24 .17604 .38190 39.922 8.0000 34.834 132.21 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 June..................................................................... 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 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 Feb............................................................................. 12.131 227.49 .15275 .34367 40.489 8.0000 35.349 140.31 Mar............................................................................ 12.415 234.06 .15687 .35454 41.152 8.0000 36.354 143.40 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 a fr u n i t d c h a ) (p S e p s a e i t n a) Sri ( ru L p a e n e k ) a1 S (k w ro ed n e a n ) ( e S f r w r l a a i n n tz c d ­ ) ( U p K d o n i o u n i m t n g e d d ­ ) 1970........................................................................................ 13.992 3.4978 139.24 1.4280 16.774 19.282 23.199 239.59 1971........................................................................................ 14.205 3.5456 140.29 1.4383 16.800 19.592 24.325 244.42 1972........................................................................................ 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—Mar............................................................................ 16.954 4.1005 141.43 1.7183 15.774 22.582 31.088 247.24 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 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 Feb............................................................................. 17.351 3.8567 148.76 1.6933 14.373 21.373 31.494 227.49 Mar............................................................................. 17.734 3.9519 148.88 1.6927 14.636 21.915 32.490 234.06 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 Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 CENTRAL BANK RATES □ APRIL 1974 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Mar. 31, 1973 Rate Country 1973 1974 as of Mar. 31, Per Month 1974 cent effective Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Argentina. 18.0 Feb. 1972 18.0 Austria.... 5.5 Nov. 1972 6.0 6.0 Belgium... 5.0 Dec. 1972 5.50 6.0 6.5 7.0 7.75 8.75 8.75 Brazil........ 18.0 Feb. 1972 18.0 Canada..., 4.75 Oct. 1971 5.25 5.75 6.25 6.75 7.25 7.25 Chile.................................... 20.0 Aug. 1972 50.0 50.00 China, Rep. of (Taiwan). 9.25 May 1971 10.5 10.75 14.0 14.0 Colombia........................... 14.0 May 1970 8.0 Costa Rica......................... 5.0 June 1966 5.0 Denmark............................ 9.0 Jan. 1973 8.0 9.00 10.0 10.0 Ecuador.... 8.0 Jan. 1970 8.0 Egypt........... 5.0 May 1962 5.0 El Salvador. 4.0 Aug. 1964 4.0 Ethiopia.... 6.50 Aug. 1970 6.50 Finland.... 7.75 Jan. 1972 9.25 9.25 France................................ 7.5 Nov. 1972 8.50 9.5 11.0 11.0 Germany, Fed. Rep. of.. 5.0 Jan. 1973 6.0 7.0 7.0 Ghana................................ 8.0 July 1971 8.0 Greece................................ 6.5 Sept. 1969 6.5 Honduras........................... 4.0 Feb. 1966 4.0 Iceland... 5.25 Jan. 1966 5.25 India........ 6.0 Jan. 1971 7.0 7.0 Indonesia. 6.0 May 1969 6.0 Iran.......... 7.5 Dec. 1972 9.0 9.0 Ireland... 8.75 Jan. 1973 10.5 12.75 12.75 Italy. .. . 4.0 Apr. 1972 6.5 9.0 9.0 Jamaica. 7.0 Jan. 1973 9.0 9.0 Japan... 4.25 June 1972 5.0 5.5 6.0 7.0 9.00 9.00 Korea... 11.0 Aug, 1972 11.0 Mexico.. 4.5 June 1942 4.5 Morocco 3.5 Nov. 1951 3.5 Netherlands.. 4.0 Nov. 1972 5.0 6.0 6.5 7.0 8.00 8.00 New Zealand. 6.0 Mar. 1972 6.0 Nigeria............ 4.5 June 1968 4.5 Norway.......... 4.5 Sept. 1969 5.5 5.5 Pakistan..................... 6.0 May 1972 8.0 8.0 Peru............................ 9.5 Nov. 1959 9.5 Philippine Republic. 10.0 June 1969 10.0 Portugal..................... 5.5 Mar. 1973 5.00 5.00 South Africa............. 6.0 Aug. 1972 6.5 6.5 Spain............ 5.0 Oct. 1971 6.0 6.0 Sri Lanka1.. 6.5 Jan. 1970 6.5 Sweden........ 5.0 Nov. 1971 5.0 Switzerland. 4.5 Jan. 1973 5.5 5.5 Thailand. . . 5.0 Oct. 1959 5.0 Tunisia................... 5.0 Sept. 1966 5.0 Turkey................... 8.0 Mar. 1973 8.75 8.75 United Kingdom. 8.5 Mar. 1973 7.75 7.50 11.50 13.0 |13.0 Venezuela............. 5.0 Oct. 1970 5.0 Vietnam................. 18.0 Sept. 1970 18.0 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 produc­ discounts 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 dis­ shown 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 en­ the 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. Ecuador—5 per cent for special advances and for bank acceptances for Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi agricultural purposes, 7 per cent for bank acceptances for industrial per cent for advances against government bonds, and 5 Vi per cent for 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

APRIL 1974 □ OPEN MARKET RATES; ARBITRAGE A 85 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n s ls t u , h r s y i D m a o d y n a - y e t y o- 2 3 m P b b r o i a i l n m n ls k t , e hs3 3 T m r b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - C d b r l e a e a p t a n o e r k s s in s i 4 t ’ g m Da o d y n a - y e t y o- 5 T 6 r d b e 0 a i a y l - s l 9 s s u 0 , 6 r y D m a o d y n a - y e t y o- 7 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - d P is r r i c 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 4.95 3.04 4.30 2.15 1.97 4.81 197 3 5.43 5.27 10.45 9.40 8.27 7.96 8.92 10.18 4.07 4.94 5.09 1973—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 10.96 11.30 5.29 7.88 5.25 Dec. 6.39 6.58 13.74 12.41 9.57 9.46 11.14 11.89 6.41 8.75 5.40 1974—Jan.. 6.31 6.50 13.67 12.09 10.36 9.25 6.50 9.36 6.00 Feb. 6.10 6.49 13.63 11.94 8.96 9.50 6.50 9.73 Mar. 6.24 6.50 14.39 11.95 11.31 9.50 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers* acceptances, 3 7 Monthly averages based on daily quotations. months. 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 Date K U in n g i d te o d m Spread P d ( r i + e sc m ) o i u o u n r m t in ( c f N e a n v e t o t iv r e Canada Spread P d ( ( r i + - s e c m ) ) o i o u o u n n r m t in ( c f N e a n v e t o t iv r e q ( u a b o U d a t s j . a . S i t s . i t ) o o n U S n ta i t t e e s d L ( o f n a o d v f o o r n) f ( p o - o r ) w u n a o r d n d Lon o d f on) qu A o in t s ed qu A o U d t j . a . S ti . t o o n U St n a i t t e e s d C ( a f n a o v a f d or a) C f d o a o n rw l a l d a a r i r a s d n Can o a f da) Canada basis 1973 Oct. 5............... 10.74 7.36 3.38 -3.73 -.35 6.68 6.26 7.36 -1.11 1.41 .30 12............... 10.67 7.08 3.59 -3.56 .03 6.51 6.29 7.08 -.79 .46 -.33 19............... 10.56 6.98 3.58 -3.68 -.10 6.53 6.30 6.98 -.68 .08 -.60 26............... 10.54 6.99 3.55 -4.08 -.53 6.51 6.30 6.99 -.69 -.70 -1.39 Nov. 2. ............. 10.46 7.39 3.07 -3.79 -.72 6.53 6.30 7.39 -1.09 -.28 -1.37 9............... 10.57 8.01 2.56 -3.54 -.98 6.52 6.33 8.01 -1.68 -.06 -1.74 16............... 12.24 7.51 4.73 -5.11 -.38 6.47 6.25 7.51 -1.26 .18 -1.08 23............... 12.31 7.74 4.57 -5.92 -1.35 6.47 6.23 7.74 -1.51 .22 -1.29 30............... 12.28 7.32 4.76 -5.50 -.54 6.43 6.22 7.32 -1.10 .30 -.80 Dec. 7............... 12.32 7.55 4.77 -5.47 -0.70 6.43 6.23 7.55 -1.32 0.48 -0.84 14............... 12.29 7.49 4.80 -7.62 -2.82 6.38 6.17 7.49 -1.32 0.04 -1.28 21............... 12.29 7.21 5.08 -6.76 -1.68 8.38 6.17 7.21 -1.04 -0.10 -1.14 28............... 12.25 7.36 4.89 -6.65 -1.76 6.36 6.15 7.36 -1.21 -0.24 -1.45 1974 Jan. 4............... i2.04 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............... 11.86 7.92 3.94 -8.82 -4.88 6.26 6.08 7.92 — 1.84 -1.84 Feb. X............... 11.82 7.42 4.40 -10.00 -5.60 6.00 6.04 7.42 -1.38 -.04 -1.42 8............... 11.80 6.99 4.81 -10.95 -6.14 6.17 5.99 6.99 -1.00 -.20 -1.02 15............... 11.75 7.00 4.75 -10.09 -5.34 6.12 5.95 7.00 -1.05 -.35 -1.40 22............... 11.66 6.94 4.72 -8.54 -3.82 6.12 5.95 6.94 -0.99 -.33 -1.32 Mar. 1............... 11.77 7.51 4.26 -12.46 -8.20 6.07 5.92 7.51 -1.59 -.20 -1.79 8............... 11.77 7.66 4.11 -9.81 -5.70 6.13 5.97 7.66 -1.69 -.08 -1.77 15............... 11.75 7.74 4.01 -9.64 -5.62 6.19 6.01 7.74 -1.73 .25 -1.48 22............... 11.80 8.02 3.78 -8.32 -4.54 6.29 6.17 8.02 -1.85 .49 -1.36 29............... 11.82 8.34 3.48 -7.24 -3.76 6.51 6.36 8.34 -1.98 .42 -1.56 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 86 GOLD RESERVES □ APRIL 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. Esti­ End of mated Mone­ United mated Argen­ Aus­ Aus­ Bel­ period total tary States rest of Algeria tina tralia tria gium Brazil Burma Canada Chile world1 Fund world 1966. 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969. 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 47 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1 ,470 45 63 791 47 1971. 41,160 4,732 10,206 26,220 192 90 259 729 i ,544 46 22 792 47 1972. 44,890 5.830 10.487 28,575 208 152 281 792 1,638 50 12 834 1973—Feb... 5.830 10.487 208 152 281 793 1,603 50 12 834 Mar.. 44,880 5.830 10.487 28,565 208 152 282 793 1,603 50 12 834 Apr.. 5.830 10.487 208 152 281 793 1,603 50 12 834 May. 5.826 10.487 208 152 281 793 1,603 50 12 834 June. 44,865 5.831 10.487 28,545 208 152 281 793 1,603 50 12 834 July.. 5.826 10.487 208 152 281 793 i ,603 50 12 834 Aug.. 5.826 10.487 208 152 281 793 1,603 50 11 834 Sept.. 44,880 5.826 10.487 28j 565 208 159 282 793 1,603 50 8 834 Oct... 6,474 11.652 231 169 312 881 1,781 56 8 927 Nov.. 6,476 11.652 231 169 312 881 1,781 56 8 927 Dec.. *49,850 6.478 11.652 *31,720 231 169 311 881 1,781 8 927 1974—Jan.... 6.478 11.652 231 312 882 1,781 927 Feb.*. 6.478 11.652 231 312 882 1,781 927 1 Ger­ E pe n r d i o o d f ( R C T e a h p i i w n . a a o , n f ) lo C m o b ­ ia m D a e r n k ­ Egypt l F a i n n d ­ France R m e F a p e n . d y . o , f Greece India Iran Iraq l I a r n e d ­ Israel 1966............................ 62 26 108 93 45 5,238 4,292 120 243 130 106 23 46 1967............................ 81 31 107 93 45 5,234 4,228 130 243 144 115 25 46 1968............................ 81 31 114 93 45 3,877 4,539 140 243 158 193 79 46 1969............................ 82 26 89 93 45 3,547 4,079 130 243 158 193 39 46 1970............................ 82 17 64 85 29 3,532 3,980 117 243 131 144 16 43 1971............................ 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 1972............................ 87 16 69 92 53 3,826 4,459 133 264 142 156 17 43 1973—Feb................. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Mar................. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Apr................. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 May............... 87 16 69 92 53 3,834 4,469 133 264 142 156 17 41 June............... 87 16 69 92 53 3,841 4,462 133 2.64 142 156 17 4 i July................. 87 16 69 92 53 3,835 4,469 133 264 142 156 17 41 Aug................. 87 16 69 92 53 3,835 4,469 133 264 142 156 17 41 Sept................. 87 16 69 92 53 3,835 4,469 133 264 142 156 16 41 Oct.................. 97 18 77 103 59 4,261 4,966 148 293 158 173 19 Nov................. 97 18 77 103 42 4,261 4,966 148 158 173 18 Dec................. 97 18 77 35 4,261 4,966 148 158 173 18 1974—Jan ................. 97 11 77 35 4,262 4 966 148 158 173 17 Feb.*.............. 18 77 35 4,262 4,966 148 158 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 ay­ M c e o xi­ Mo co roc­ N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ 1966............................ 2,414 329 67 193 68 1 109 21 1,730 18 53 65 44 1967............................ 2,400 338 136 193 68 31 166 21 1,711 18 53 20 60 1968............................ 2,923 356 122 288 85 66 165 21 1,697 24 54 20 62 1969............................ 2,956 413 86 288 85 63 169 21 1,720 25 54 25 45 1970............................ 2,887 532 86 288 85 48 176 21 1 ,787 23 54 40 56 IV 71............................ 2,884 679 87 322 85 58 184 21 1,909 33 55 40 67 1972............................ 3,130 801 94 350 93 63 188 23 2,059 37 60 41 71 1973—Feb................. 3,134 801 94 350 93 63 188 23 2,059 37 60 41 71 Mar................. 3,134 801 94 350 93 63 188 23 2,059 37 60 41 71 Apr................. 3,134 801 94 350 93 63 188 23 2,059 37 60 41 50 May................ 3,134 802 350 93 63 188 23 2,059 37 60 41 50 June................ 3,134 802 350 93 63 186 23 2,063 37 60 41 40 July................. 3,134 802 350 93 63 184 23 2,063 37 60 41 40 Aug................. 3,134 802 350 93 63 182 23 2,065 37 60 41 40 Sept................. 3,134 802 350 93 63 179 23 2,065 37 60 41 40 Oct.................. 3,483 891 388 103 70 198 26 2,294 41' 67 46 45 Nov................. 3,483 891 388 103 71 198 26 2,294 41 67 46 45 Dec................. 3,483 891 389 103 71 26 2,294 41 67 45 1974—Jan.................. 3,483 891 389 103 2,294 41 67 45 Feb *.............. 3,483 891 389 103 2,294 41 67 45 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ GOLD RESERVES AND PRODUCTION A 87 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) Bank E pe n r d i o o d f Po g r a t l u­ A S r a a u b d i i a A So fr u i t c h a Spain Sw la i n tz d er­ T la h n a d i­ Turkey U K d n i o n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l le . ­ ments 2 1966. 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 1967. 699 69 583 785 203 3,089 92 97 1,291 140 401 22 -624 1968. 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 1969. 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 1970. 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 1971. 921 108 410 498 200 2.909 82 130 775 148 391 51 310 1972. 1,021 117 681 541 217 3,158 89 136 800 133 425 56 218 1973—Feb.., 1,022 117 711 542 220 3.162 89 136 810 133 425 56 214 Mar.. 1,022 117 714 542 220 3.162 89 136 810 133 425 56 214 Apr.. 1,022 117 720 542 220 3.162 89 136 810 133 425 56 214 May. 1,022 117 721 542 220 3.162 89 136 810 133 425 56 199 June. 1,022 117 724 542 220 3.162 89 136 810 133 425 56 205 July.. 1,022 117 734 542 220 3.162 89 136 810 133 425 56 204 Aug.. 1.035 117 740 542 220 3.162 89 136 797 133 425 56 205 Sept.. 1.036 116 738 542 220 3.162 89 136 797 133 425 56 213 Oct... 1,154 129 820 602 244 3.512 99 151 886 148 472 61 227 Nov.. 1,159 129 809 602 244 3.513 99 151 886 148 472 61 237 Dec.. 1,163 129 802 602 244 3.513 99 151 886 148 472 62 235 1974—Jan... . 129 793 602 244 3.513 99 151 472 62 271 Feb.*. 129 783 244 3.513 99 151 472 62 277 1 Includes reported or estimated gold holdings of international and gold deposited with the BIS is included in the gold reserves of individual regional organizations, central banks and govts, of countries listed in countries. this table, and also of a number not shown separately here, and gold to be 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold distributed by the Tripartite Commission for the Restitution of Monetary assets minus gold deposit liabilities. Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ tries, and China Mainland. Note.—For back figures and description of the data in this and the The figures included for the Bank for International Settlements are following tables on gold (except production), see “Gold,” Section 14 of the Bank’s gold assets net of gold deposit liabilities. This procedure Supplement to Banking and Monetary Statistics, 1962. avoids the overstatement of total world gold reserves since most of the 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 World Period produc­ tion 1 A So fr u ic th a Ghana Zaire U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra i g ca u ­ a Co b l i o a m­ India Japan P p h in il e ip s ­ t A ra u l s ia ­ ot A h l e l r1 1967................................ 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1968................................ 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969................................ 1.420.0 1,09(3.7 24.8 6.0 60.1 $9.1 6.3 3.7 7.7 3.4 23.7 20.0 24.5 60.0 1970................................ 1.450.0 1,128.0 24.6 6.2 63.5 84.3 6.9 4.0 7.1 3.7 24.8 21.1 21.7 54.1 1971*............................. 1.098.7 24.4 6.0 52.3 79.1 5.3 3.7 6.6 4.1 27.0 22.2 23.5 1972*............................. 1.109.8 27.5 5.3 54.3 77.2 5.6 3.0 7.1 4.0 32.2 23.0 28.7 1973*............................. 1,073.6 75.2 1973—Jan..................... 88.2 6.2 .5 .8 .3 2.4 Feb..................... 86.5 6.1 .4 .5 .3 1.8 Malr.................... 88.5 6.3 .5 .5 .4 Apr.................... 86.6 6.2 .6 .2 May.................. 86.0 6.8 .6 .3 June................... 87.6 6.4 .6 July................... 88.3 5.6 .8 Aug.................... 90.2 5.7 .9 Sept.................... 88.2 5.7 .8 Oct..................... 97.5 7.0 .7 Nov................... 97.2 6.3 Dec.................... 88.8 6.7 1974—Jan..................... 6.1 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

BANKS AND BRANCHES □ APRIL 1974 NUMBER IN OPERATION ON DECEMBER 31, 1973 Commercial and mutual savings banks Number maintaining branches or additional offices1 Commercial Commercial Mutual Mutual State savings savings Total Member Nonmember Total Member Nonmember Total Total Non- Non­ Non­ Non­ Na­ State In­ in­ In­ in­ Na­ State In­ in- In­ in­ tional sured sured sured sured tional sured sured sured sured United States2........... 14,653 14,172 4,661 1,076 8,229 206 321 160 5,065 4,724 1,832 480 2,392 20 246 95 A A l l a a s b k a a m .. a ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 1 7 2 28 1 7 0 91 5 176 5 ‘ ‘ '2 109 8 109 8 51 5 53 3 Arizona....................... 22 22 3 11 10 10 2 7 Arkansas..................... 258 258 72 171 109 109 46 55 California................... 185 185 57 109 129 129 48 70 Colorado.................... 302 302 126 112 33 33 15 16 Connecticut............... 136 68 24 41 98 48 18 29 Delaware.................... 21 19 5 13 11 9 2 7 District of Columbia 15 15 12 2 14 14 11 2 Florida........................ 646 646 262 358 46 46 45 Georgia....................... 436 436 61 360 177 177 45 9 123 Hawaii........................ 12 12 2 6 9 9 1 6 Idaho.......................... 24 24 6 4 14 14 14 5 2 7 Illinois......................... 1,172 1,172 417 74 674 168 168 88 10 70 Indiana....................... 414 410 122 56 229 218 217 81 24 112 Iowa............................ 670 670 100 48 513 239 239 44 21 174 Kansas........................ 612 612 170 26 415 79 79 34 6 39 Kentucky................... 342 342 80 11 250 156 156 49 7 100 Louisiana................... 245 245 51 10 183 144 144 39 9 96 Maine......................... 80 48 19 4 21 56 35 16 4 15 21 Maryland................... 116 112 39 7 66 79 75 30 6 39 Massachusetts........... 320 153 79 13 56 159 228 125 65 13 45 Michigan.................... 340 340 111 95 132 229 229 83 67 78 Minnesota.................. 741 740 201 25 511 21 20 7 2 11 Mississippi................. 181 181 41 7 133 128 128 36 6 86 Missouri..................... 687 687 104 67 510 183 183 40 21 122 Montana..................... 151 151 54 44 51 11 11 3 5 3 Nebraska................... 449 449 122 9 313 50 50 28 1 21 Nevada....................... 8 8 4 1 3 7 7 3 1 3 New Hampshire 112 82 49 1 30 51 41 30 1 10 New Jersey................. 242 222 127 27 67 189 174 105 24 45 New Mexico.............. 74 74 34 7 32 59 59 29 5 25 New York.................. 421 303 159 71 46 118 307 199 108 56 29 108 North Carolina........ 90 90 25 3 61 65 65 22 42 North Dakota.......... 170 170 43 4 120 53 53 12 1 39 Ohio............................ 498 498 215 114 167 312 312 160 65 87 Oklahoma.................. 452 452 194 15 238 86 86 50 3 33 Oregon....................... 47 46 8 36 31 30 7 23 Pennsylvania............. 430 422 264 16 135 265 258 157 10 90 Rhode Island............ 23 16 5 9 20 13 5 6 South Carolina......... 91 91 19 5 67 63 63 16 3 44 South Dakota........... 159 159 32 28 99 42 42 10 8 24 Tennessee................... 321 321 72 10 235 184 184 59 6 118 Texas........................... 1,266 1,266 550 40 669 82 82 2 8 72 Utah........................... 54 54 11 5 37 20 20 5 3 12 Vermont..................... 45 39 22 16 29 26 13 13 Virginia....................... 271 271 103 54 114 183 183 85 32 66 Washington............... 96 88 24 5 56 58 50 17 3 30 West Virginia............ 210 210 94 30 86 15 15 3 2 10 Wisconsin................... 624 621 127 34 455 186 186 41 9 136 Wyoming................... 71 71 42 13 16 Puerto Rico............... 1 1 1 Virgin Islands........... 1 1 1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1974 □ BANKS AND BRANCHES A 89 NUMBER IN OPERATION ON DECEMBER 31, 1973—Continued Branches and additional offices 1 Class of bank Location Commercial banks Mutual savings Outside head office city State banks In Bank­ Total Member Nonmember head ing office facili­ Total city In In In non­ ties 2 Non- Non­ head contig­ contig­ Na­ State In­ in­ In­ in­ office uous uous tional sured sured sured sured county counties counties United States3........... 27,738 26,246 14,757 4,039 7,404 46 1,241 251 9,561 8,533 4,999 4,645 202 Alabama..................... 364 364 245 14 105 199 136 14 15 5 Alaska........................ 68 68 60 8 22 5 15 26 5 Arizona...................... 403 403 253 25 125 129 104 52 118 2 Arkansas................... 225 225 116 16 93 136 83 5 1 2 California................... 3,358 3,358 2,601 314 437 460 469 681 1,748 32 Colorado................... 34 34 16 2 16 34 Connecticut............... 717 518 243 73 202 199 166 345 178 Delaware................... 137 118 4 114 19 29 62 38 District of Columbia 116 116 78 29 9 116 1 Florida....................... 49 49 1 48 47 18 Georgia...................... 546 546 283 68 195 280 147 40 79 12 Hawaii........................ 144 144 10 131 52 37 4 51 6 Idaho.......................... 178 178 147 6 25 16 14 32 116 1 Illinois........................ 168 168 88 10 70 168 7 Indiana....................... 777 776 407 62 307 416 360 1 Iowa............................ 369 369 70 39 260 178 139 52 Kansas....................... 88 88 40 8 40 88 Kentucky................... 422 422 176 69 177 253 164 5 Louisiana................... 488 488 215 37 236 286 189 10 Maine......................... 297 259 117 33 109 38 65 128 92 Maryland................... 681 634 302 80 252 47 166 163 217 135 Massachusetts........... 1,144 851 472 159 216 42 251 522 613 8 Michigan................... 1,394 1,394 654 477 261 610 524 249 1 Minnesota................. 25 24 11 2 11 25 Mississippi................. 446 446 181 18 247 187 126 70 Missouri..................... 201 201 45 26 130 168 31 Montana.................... 11 11 3 5 3 10 Nebraska................... 55 55 33 1 21 55 Nevada....................... 96 96 68 15 13 26 19 13 New Hampshire.... 110 90 73 2 15 20 47 51 12 New Jersey................ 1,315 1,244 855 207 182 71 305 684 235 New Mexico............. 177 177 96 13 68 111 56 9 New York................. 3,374 2,872 1,517 1,180 166 502 1,494 882 789 209 North Carolina........ 1,444 1,444 727 708 175 131 283 855 North Dakota........... 72 72 12 2 56 12 37 22 1 Ohio........................... 1,522 1,522 856 418 248 666 820 33 Oklahoma................. 86 86 50 3 33 86 Oregon....................... 405 401 282 119 4 85 58 71 191 Pennsylvania............. 2,180 2,052 1,205 263 582 128 274 825 1,079 2 Rhode Island............ 292 206 113 85 86 68 115 71 38 South Carolina......... 544 544 345 7 192 116 71 74 283 South Dakota........... 108 108 65 11 32 20 30 24 34 Tennessee................... 657 657 330 43 283 399 242 7 9 1 Texas.......................... 91 91 2 9 80 90 1 18 Utah............................ 168 168 89 31 48 31 52 24 61 3 Vermont..................... 114 109 43 66 16 43 35 20 Virginia...................... 1,032 1,032 577 205 250 341 189 298 204 13 Washington............... 714 636 495 34 107 78 241 184 108 181 4 West Virginia........... 15 15 3 2 10 14 1 Wisconsin.................. 308 308 76 20 212 57 201 Wyoming................... 1 1 1 1 Virgin Islands........... 8 3 1 Excludes banks that have banking facilities only; banking facilities Note.—Each branch and additional office is located in the same State are shown separately; see note 3. as its parent bank except that 1 national bank in N.J. has 1 branch 2 Banking facilities (other than branches) that are provided at military in Pa., 1 national bank in Calif, has 2 branches in Wash, and 1 in Ore., and other Govt, establishments through arrangements made by the Treas­ 1 noninsured (unincorporated) bank in N.Y. has 1 branch in Mass. and ury ; they are operated by 135 banks, 46 of which have no other type of 1 in Pa.; 3 insured nonmember banks in Puerto Rico have 18 branches in branch or additional office. N.Y. In the table these branches are shown according to their own lo­ 3 Includes one national bank in Puerto Rico and one in the Virgin cation rather than that of (he parent bank. Islands, with eight branches, that became members of the F.R. System in 1973 and 1957, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 BUSINESS FINANCE □ APRIL 1974 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1971 1972 1973 Industry 1969 1970 1971 1972 IV I II III IV I II r III Total (170 corps.): 299,533 305,370 334,957 3/1,946 87,214 88,349 93,853 89,550 100,194 c102,932 109,967 108,430 Total revenue......................... 303,257 309,532 339,134 376,604 88,317 89,452 95,271 90,803 101,078 c 104,139 111,526 109,967 Profits before taxes............... 34,311 29,266 35,771 41,164 9,709 9,715 10,467 8,978 12,003 12,695 14,009 12,436 Profits after taxes................... 18,830 16,556 19,146 21,753 5,031 5,212 5,674 4,936 5,931 6,801 7,491 6,778 Memo: PAT unadj.1........ 18,335 16,436 18,020 21,233 4,373 5,162 5,687 4,490 5,894 6,754 7,385 6,748 Dividends................................ 9,962 10,024 10,104 10,538 2,581 2,538 2,598 2,525 2,877 2,646 2,715 2,767 Nondurable goods industries (86 corps.):2 Sales.......................................... 138,621 147,808 160,973 176,329 41,887 42,254 43,395 43,865 46,815 c47,519 50,223 53,168 Total revenue......................... 140,837 150,312 163,448 178,915 42,382 42,930 44,273 44,689 47,023 c48,259 51,191 54,081 Profits before taxes............... 17,404 16,935 19,900 21,799 5,438 5,043 4,998 5,278 6,479 6,487 7,129 7,626 Profits after taxes................... 10,223 9,649 10,490 11,154 2,672 2,673 2,682 2,852 2,946 3,411 3.667 4,034 Memo: PAT unadj.1........ 9,529 9,591 10,085 10,859 2,409 2,625 2,625 2,574 3,035 3,348 3,597 3,973 Dividends................................ 5,386 5,560 5,664 5,780 1 ,442 1,447 1 ,430 1 ,427 1 ,476 1,487 1,462 1,527 Durable goods industries (84 corps.):3 160,912 157,562 173,985 195,618 45,327 46,095 50,458 45,685 53,379 55,413 59,744 55,262 Total revenue......................... 162,420 159,220 175,686 197,690 45,935 46,522 50,999 46,115 54,055 55,880 60,335 55,886 Profits before taxes............... 16,907 12,332 15,871 19,365 4,271 4,673 5,469 3,697 5,524 6,208 6,880 4,810 Profits after taxes................... 8,607 6,908 8,656 10,599 2,359 2,539 2,992 2,083 2,984 3,390 3,824 2,744 Memo: PAT unadj.1........ 8,806 6,845 7,935 10,374 1,964 2,537 3,062 1,916 2,859 3,406 3,788 2,775 Dividends................................ 4,577 4,464 4,440 4,758 1,139 1,091 1,168 1 ,097 1,401 1,159 1,253 1,240 Selected industries: Food and kindred prod. (2,8 corps.): 28,962 31,966 34,584 37,624 9,073 8,824 9,229 9,531 10,039 9,561 10,183 11,014 Total revenue......................... 29,341 32,393 35,090 38,091 9,206 8,941 9,371 9,665 10,115 9,711 10,348 11,201 Profits before taxes............... 2,845 3,122 3,372 3,573 863 794 880 940 960 890 962 1,047 Profits after taxes................... 1 ,364 1,571 1,714 1,845 446 414 454 486 490 470 499 562 Memo: PAT unadj.1........ 1,266 1,540 1,644 1,805 386 408 452 492 452 453 501 562 Dividends................................ 764 812 862 893 218 221 222 223 227 237 230 236 Chemical and allied prod. (22 corps.): Sales.......................................... 29,961 31,086 33,005 36,638 8,432 8,779 9,167 9,099 9,593 10,153 10,693 10,828 Total......................................... 30,308 31,490 33,388 37,053 8,574 8,868 9,265 9,196 9,723 10,264 10,849 10,968 Profits before taxes............... 4,123 3,863 4,123 4,853 1,031 1,172 1,184 1 ,216 1,280 1,487 1,606 1,599 Profits after taxes................... 2,180 2,111 2,290 2,672 586 652 667 683 669 838 886 901 Memo: PAT unadj.1........ 2,206 2,137 2,167 2,671 494 649 626 684 712 834 884 871 1,262 1,298 1,332 1,395 342 337 341 340 378 346 359 374 Petroleum refining (15 corps.): Sales.......................................... 56,411 61,360 68,534 74,662 18,007 18,269 18,169 18,298 19,925 c20,477 21,689 23,586 Total revenue......................... 57,770 62,826 69,903 76,133 18,154 18,695 18,756 18,837 19,845 c20,892 22,258 23,988 Profits before taxes............... 8,490 8,509 10,835 11,461 3,138 2,684 2,433 2,628 3,717 3,514 3,884 4,371 Profits after taxes................... 5,630 5,158 5,624 5,562 1 ,418 1 ,384 1,270 1 ,398 1 ,509 1,760 1,899 2,230 Memo: PAT unadj.1........ 4,987 5,131 5,519 5,325 1 ,390 1,356 1,273 1,119 1 ,578 1,737 1,888 2,192 Dividends................................ 2,836 2,917 2,952 2,992 755 763 742 741 746 777 748 789 Primary metals and prod. (23 corps.): Sales.......................................... 30,460 30,769 31,441 34,359 7,335 7,848 8,886 8,525 9,099 9,635 10,784 10,602 Total revenue......................... 30,928 31,288 31,808 34,797 7,445 7,931 8,984 8,629 9,253 9,733 10,891 10,764 Profits before taxes............... 2,721 2,072 1,517 1,969 254 386 581 413 589 618 885 808 Profits after taxes................... 1 ,544 1 ,316 969 1,195 189 247 372 274 302 383 542 480 Memo: PAT unadj.1........ 1,731 1,371 561 1,109 -213 260 465 128 256 397 538 496 Dividends................................ 890 913 739 653 162 162 161 162 168 200 178 184 Machinery (27 corps.): 44,858 46,486 49,206 55,615 13,368 12,939 13,796 13,862 15,018 14,828 16,035 16,306 Total revenue......................... 45,314 47,028 49,846 56,348 13,561 13,102 13,993 14,050 15,203 14,997 16,241 16,519 Profits before taxes............... 5,281 4,885 5,277 6,358 1,453 1,416 1 ,550 1,583 1,810 1,705 1,880 1,936 Profits after taxes................... 2,593 2,566 2,884 3,522 806 781 854 870 1,017 933 1,034 1.069 Memo: PAT unadj.1........ 2,596 2,477 2,560 3,388 786 774 848 865 902 931 1,020 1.070 Dividends................................ 1 ,165 1 ,327 1,450 1,497 366 373 374 375 375 389 401 407 Motor vehicles and equipment (9 corps.): Sales.......................................... 53,996 48,905 61,481 70,653 16,109 17,273 18,953 14,703 19,725 21,616 22,256 18,019 Total revenue......................... 54,248 49,108 61,804 71,139 16,308 17,353 19,105 14,735 19,946 21,710 22,415 18,142 Profits before taxes............... 5,315 2,153 5,648 6,955 1,598 2,017 2,290 628 2,019 2,716 2,704 729 Profits after taxes................... 2,644 1 ,306 2,948 3,626 831 1,037 1,186 343 1,060 1,405 1,446 431 Memo: PAT unadj.1........ 2,638 1 ,301 2,952 3,640 849 1,034 1,178 337 1,091 1,429 1,436 450 Dividends................................ 1,750 1,434 1,433 1,762 359 359 439 365 599 369 473 404 1 Profits after taxes (PAT) as reported by the individual companies. In of returns, allowances, and discounts, and exclude excise taxes paid di­ contrast to other profits data in the series, these figures reflect company rectly by the company. Total revenue data include, in addition to sales, variations in accounting treatment of special charges and credits. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes, (not Note—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 Bulletin, p. A-50. 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B oard of G overnors and Staff show n on follow ing page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNOFiS Arthur F. Burns, Chairman George W. M itchell, Vice Chairman Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher Robert C. Holland H enry C. Wallich OFFICE OF MANAGING DIRECTOR FOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR OPERATIONS AND SUPERVISION RESEARCH AND ECONOMIC POLICY *Robert Solomon, Adviser to the Board David C. M elnicoff, Managing Director Joseph R. Coyne, Assistant to the Board J. Charles Partee, Managing Director Daniel M. Doyle, Deputy Managing John S. Rippey, Assistant to the Board Stephen H. Axilrod, Adviser to the Board Director John J. Hart, Special Assistant to the Board Samuel B. Chase, Jr., Adviser to the Board Gordon B. Grim wood, Assistant Director Frank O’Brien Jr., Special Assistant to the Arthur L. Broida, Assistant to the Board and Program Director for Board Murray Altmann, Special Assistant to the Contingency Planning Donald J. Winn, Special Assistant to the Board William W. Layton, Director of Equal Board DIVISION OF RESEARCH AND STATISTICS Employment J. Charles Partee, Director Brenton C. Leavitt, Program Director Lyle E. Gramley, Deputy Director for Banking Structure James L. Pierce, Associate Director Peter M. Keir, Adviser Stanley J. Sigel, Adviser Murray S. Wernick, Adviser Kenneth B. Williams, Adviser LEGAL DIVISION James B. Eckert, Associate Adviser Edward C. Ettin, Associate Adviser DIVISION OF FEDERAL RESERVE BANK OPERATIONS Thomas J. O’Connell, General Counsel Robert J. Lawrence, Associate Adviser John Nicoll, Deputy General Counsel Eleanor J. Stockwell, Associate Adviser Ronald G. Burke, Director Robert S. Plotkin, Assistant General Joseph S. Zeisel, Associate Adviser E. Maurice McWhirter, Associate Counsel James L. Kichline, Assistant Adviser Director Baldwin B. Tuttle, Assistant General Stephen P. Taylor, Assistant Adviser W alter A. Althausen, Assistant Director Counsel Thomas D. Thomson, Assistant Adviser Harry A. Guinter, Assistant Director Andrew F. Oehmann, Special Assistant Louis Weiner, Assistant Adviser James R. Kudlinski, Assistant Director to the General Counsel Helmut F. Wendel, Assistant Adviser P. D. Ring, Assistant Director Griffith L. Garwood, Adviser1 Levon H. Garabedian, Assistant Director A 92 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, Director Chester B. Feldberg, Secretary Ralph C. Bryant, Director Henry W. M eetze, Associate Director Theodore E. Allison, Assistant Secretary John E. Reynolds, Associate Director Glenn L. Cummins, Assistant Director Normand R. V. Bernard, Assistant Robert F. Gemmill, Adviser Warren N. Min ami, Assistant Director Secretary Reed J. Irvine, Adviser Elizabeth L. Carmichael, Assistant Samuel I. Katz, Adviser DIVISION OF PERSONNEL Secretary Bernard Norwood, Adviser Samuel Pizer, Adviser Keith D. Engstrom, Director George B. Henry, Associate Adviser DIVISION OF SUPERVISION Charles W. Wood, Assistant Director Helen B. Junz, Associate Adviser AND REGULATION tNoRMAN S. Fieleke, Assistant Adviser OFFICE OF THE CONTROLLER Frederic Solomon, Director Brenton C. Leavitt, Deputy Director John Kakalec, Controller tOn loan from the Federal Reserve Bank of Boston. Frederick R. Dahl, Assistant Director John M. Denkler, Assistant Controller Jack M. Egertson, Assistant Director Janet O. Hart, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John N. Lyon, Assistant Director John T. McClintock, Assistant Director W alter W. Kreimann, Director Thomas A. Sidman, Assistant Director Donald E. Anderson, Assistant Director William W. Wiles, Assistant Director John D. Smith, Assistant Director *On leave of absence. A 93 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Robert P. Black George H. Clay John E. Sheehan Andrew F. Brimmer Robert C. Holland Henry C. Wallich Jeffrey M. Bucher Monroe Kimbrel Willis J. Winn George W. Mitchell Arthur L. Broida, Secretary *Robert Solomon, Economist Murray Altmann, Deputy Secretary (International Finance) Normand R. V. Bernard, Assistant Harry Brandt, Associate Economist Secretary Ralph C. Bryant, Associate Economist Thomas J. O’Connell, General Counsel Richard G. Davis, Associate Economist Edward G. Guy, Deputy General Counsel Raymond J. D oll, Associate Economist John Nicoll, Assistant General Counsel Lyle E. Gramley, Associate Economist J. Charles Partee, Senior Economist William J. Hocter, Associate Economist Stephen H. Axilrod, Economist James Parthemos, Associate Economist (Domestic Finance) James L. Pierce, Associate Economist John E. Reynolds, 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 95 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 Robert E. Showalter Pittsburgh ........... 15230 Douglas Grymes Robert D. Duggan Richmond....................23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall Baltimore .................21203 James G. Harlow Gerald L. Wilson 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. Balles Joseph F. Alibrandi JohnB. Williams Los Angeles........ 90051 Joseph R. Vaughan Gerald R. Kelly Portland............... 97208 John R. Howard William M. Brown Salt Lake City..... 84110 Sam H. Bennion A. Grant Holman Seattle................. 98124 C. Henry Bacon, Jr. Paul W. Cavan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 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 hHHtpqq Si 9D FEDERAL RESERVE BULLETIN. Monthly. $6.00 per THE FEDERAL FUNDS MARKET. 1959. 111 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. OPEN MARKET POLICIES AND OPERATING PROCE­ SUPPLEMENT tV 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 97 STAFF ECONOMIC STUDIES INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE Studies and papers on economic and financial subjects BONDS. 8/67. that are of general interest in the field of economic U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN research. 1960-67. 4/68. FEDERAL FISCAL POLICY IN THE 1960’s. 9/68. Summaries only printed in the BULLETIN BUSINESS FINANCING BY BUSINESS FINANCE COM­ PANIES. 10/68. (Limited supply of mimeographed copies of full text available upon request for single copies) HOUSING PRODUCTION AND FINANCE. 3/69. REVISION OF WEEKLY SERIES FOR COMMERCIAL EXAMINATION OF THE MONEY STOCK CONTROL BANKS. 8/69. APPROACH OF BURGER, KALISH, AND BABB, by Fred J. Levin. March 1973. 18 pp. EURO-DOLLARS: A CHANGING MARKET. 10/69. OBTAINING THE YIELD ON A STANDARD BOND FROM RECENT CHANGES IN STRUCTURE OF COMMER­ A SAMPLE OF BONDS WITH HETEROGENEOUS CIAL BANKING. 3/70. CHARACTERISTICS, by James L. Kichline, P. Mi­ SDR’s IN FEDERAL RESERVE OPERATIONS AND chael Laub, and Guy V. G. Stevens. May 1973. STATISTICS. 5/70. 30 pp. MEASURES OF SECURITY CREDIT. 12/70. THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF MONETARY AGGREGATES AND MONEY MARKET FUNDS, by Frederic Brill Ruckdeschel. June 1973. CONDITIONS IN OPEN MARKET POLICY. 2/71. 171 pp. BANK FINANCING OF MOBILE HOMES. 3/71. MORTGAGE COMMITMENTS ON INCOME PROPER­ INTEREST RATES, CREDIT FLOWS, AND MONETARY TIES: A NEW SERIES FOR 15 LIFE INSURANCE AGGREGATES SINCE 1964. 6/71. COMPANIES, 1951-70, by Robert Moore Fisher and Barbara Negri Opper. Aug. 1973. 83 pp. TWO KEY ISSUES OF MONETARY POLICY. 6/71. THE IMPACT OF HOLDING COMPANY ACQUISITIONS SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. ON AGGREGATE CONCENTRATION IN BANKING, BANK RATES ON BUSINESS LOANS—REVISED by Samuel H. Talley. Feb. 1974. 24 pp. SERIES. 6/71. OPERATING POLICIES OF BANK HOLDING COMPA­ INDUSTRIAL PRODUCTION—REVISED AND NEW NIES—PART II: NONBANKING SUBSIDIARIES, by MEASURES. 7/71. Robert J. Lawrence. Mar. 1974. 59 pp. REVISED MEASURES OF MANUFACTURING CAPAC­ ITY UTILIZATION. 10/71. Printed in full in the BULLETIN REVISION OF BANK CREDIT SERIES. 12/71. (Staff Economic Studies shown in list below. PLANNED AND ACTUAL LONG-TERM BORROWING Except for Staff Papers, Staff Economic Studies, and BY STATE & LOCAL GOVERNMENTS. 12/71. some leading articles, most of the articles reprinted do ASSETS AND LIABILITIES OF FOREIGN BRANCHES not exceed 12 pages.) OF U.S. BANKS. 2/72. WAYS TO MODERATE FLUCTUATIONS IN THE CON­ REPRINTS STRUCTION OF HOUSING. 3/72. CONSTRUCTION LOANS AT COMMERCIAL BANKS. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. 6/72. SEASONAL FACTORS AFFECTING BANK RESERVES. SOME ESSENTIALS OF INTERNATIONAL MONETARY 2/58. REFORM. 6/72. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste­ CHARACTERISTICS OF FEDERAL RESERVE BANK phen H. Axilrod. 10/61. DIRECTORS. 6/72. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ 7/62. OVER-REVISED SERIES. 7/72. INTEREST RATES AND MONETARY POLICY, Staff RECENT REGULATORY CHANGES IN RESERVE RE­ Paper by Stephen H. Axilrod. 9/62. QUIREMENTS AND CHECK COLLECTION. 7/72. MEASURES OF MEMBER BANK RESERVES. 7/63. YIELDS ON NEWLY ISSUED CORPORATE BONDS. REVISION OF BANK DEBITS AND DEPOSIT TURN­ 9/72. OVER SERIES. 3/65. RECENT ACTIVITIES OF FOREIGN BRANCHES OF RESEARCH ON BANKING STRUCTURE AND PER­ U.S. BANKS. 10/72. FORMANCE, Staff Economic Study by Tynan REVISION OF CONSUMER CREDIT STATISTICS. Smith. 4/66. 10/72. A REVISED INDEX OF MANUFACTURING CAPACITY, SURVEY OF FINANCE COMPANIES, 1970. 11/72. Staff Economic Study by Frank de Leeuw with ONE-BANK HOLDING COMPANIES BEFORE THE 1970 Frank E. Hopkins and Michael D. Sherman. 11/66. AMENDMENTS. 12/72. REVISED SERIES ON COMMERCIAL AND INDUS­ TRIAL LOANS BY INDUSTRY. 2/67. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. THE PUBLIC INFORMATION ACT—ITS EFFECT ON REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANKS. 7/67. MEMBER BANK RESERVES AND DEPOSITS. 2/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BULLETIN □ APRIL 1974 STATE AND LOCAL BORROWING ANTICIPATIONS FINANCIAL DEVELOPMENTS IN THE THIRD AND REALIZATIONS. 4/73. QUARTER OF 1973. 11/73. YIELDS ON RECENTLY OFFERED CORPORATE MONEY SUPPLY IN THE CONDUCT OF MONETARY BONDS. 5/73. POLICY. 11/73. FEDERAL FISCAL POLICY, 1965-72. 6/73. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. SOME PROBLEMS OF CENTRAL BANKING. 6/73. FINANCIAL DEVELOPMENTS IN THE FOURTH OPEN MARKET OPERATIONS IN 1972. 6/73. QUARTER OF 1973. 2/74. BANKING AND MONETARY STATISTICS, 1972. Se­ REVISION OF THE MONEY STOCK MEASURES AND lected series of banking and monetary statistics for MEMBER BANK DEPOSITS. 2/74. 1972 only. 3/73 and 7/73. TREASURY AND FEDERAL RESERVE FOREIGN EX­ CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ CHANGE OPERATIONS. 3/74. DUSTRIES. 8/73. RECENT DEVELOPMENTS IN THE U.S. BALANCE OF CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­ PAYMENTS. 4/74. MERCIAL BANKS. 9/73. CHANGES IN TIME AND SAVINGS DEPOSITS AT RATES ON CONSUMER INSTALMENT LOANS. 9/73. COMMERCIAL BANKS, JULY-OCTOBER 1973. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. 4/74. 10/73. CHANGES IN BANK LENDING PRACTICES, 1973. 4/74. NEW SERIES FOR LARGE MANUFACTURING COR­ CAPACITY UTILIZATION FOR MAJOR MATERIALS: PORATIONS. 10/73. REVISED MEASURES. 4/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A-99 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 27, 29 Demand deposits: Agricultural loans of commercial banks, 18, 20 Adjusted, commercial banks, 13, 15, 19 Arbitrage, 85 Banks, by classes, 16, 19, 23 Assets and liabilities (See also Foreigners): Ownership by individuals, partnerships, and Banks, by classes, 16, 18, 19, 20, 33 corporations, 26 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 44 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 50, 51, 52 Accumulated at commercial banks for payment of Production index, 54, 55 personal loans, 26 Banks, by classes, 16, 19, 23, 33 Bank credit proxy, 15 Federal Reserve Banks, 12, 80 Bankers’ balances, 19, 22 Postal savings, 19 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 15 Banks and branches, number, Discount rates (See Interest rates) by class and State, 88 Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 34 Dividends, corporate, 44, 90 Bonds (See also U.S. Govt, securities): Dollar assets, foreign, 67, 73 New issues, 41, 42, 43 Yields and prices, 30, 31 Employment, 56, 58 Branch banks: Assets, foreign branches of U.S. banks, 78 Farm mortgage loans, 45, 46 Liabilities, U.S. banks to foreign branches, 24, 79, 80 Federal agency obligations, 11, 12, 13 Number, by class and State, 89 Federal finance: Brokerage balances, 77 Receipts and outlays, 36, 37 Business expenditures on new plant and equipment, 44 Treasury operating balance, 36 Business indexes, 56 Federal funds, 7, 18, 20, 24, 29 Business loans (See Commercial and industrial loans) Federal home loan banks, 34, 35, 47 Federal Home Loan Mortgage Corporation, 49 Capacity utilization, 56 Federal Housing Administration, 45, 46, 47, 48, 49 Capital accounts: Federal intermediate credit banks, 34, 35 Banks, by classes, 16, 19, 24 Federal land banks, 34, 35 Federal Reserve Banks, 12 Federal National Mortgage Assn., 34, 35, 48 Central banks, 84, 86 Federal Reserve Banks: Certificates of deposit, 24 Condition statement, 12 Commercial and industrial loans: U.S. Govt, securities held, 4, 12, 13, 38, 39 Commercial banks, 15, 18, 27 Federal Reserve credit, 4, 6, 12, 13 Weekly reporting banks, 20, 25 Federal Reserve notes, 12 Commercial banks: Federally sponsored credit agencies, 34, 35 Assets and liabilities, 15, 16, 18, 19, 20 Finance companies: Consumer loans held, by type, 51 Loans, 20, 50, 51, 53 Deposits at, for payment of personal loans, 26 Paper, 27, 29 Loans sold outright, 27 Financial institutions, loans to, 18, 20 Number, by classes, 16, 88 Float, 4 Real estate mortgages held, by type, 46 Flow of funds, 62 Commercial paper, 27, 29 Foreign: Condition statements (See Assets and liabilities) Currency operations, 11, 12, 67, 73 Construction, 56, 57 Deposits in U.S. banks, 5, 12, 19, 23, 80 Consumer credit: Exchange rates, 83 Instalment credit, 50, 51, 52, 53 Trade, 65 Noninstalment credit, by holder, 51 Foreigners: Consumer price indexes, 56, 59 Claims on, 74, 75, 80, 81, 82 Consumption expenditures, 60, 61 Liabilities to, 24, 68, 69, 71, 72, 73, 80, 81, 82 Corporations : Profits, taxes, and dividends, 44 Gold: Sales, revenue, profits, and dividends of large Certificates, 12 manufacturing corporations, 90 Earmarked, 80 Security issues, 42, 43 Net purchases by United States, 66 Security yields and prices, 30, 31 Production, 87 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 86 Currency and coin, 5, 9, 19 Stock, 4, 67 Currency in circulation, 5, 14 Government National Mortgage Assn., 48 Customer credit, stock market, 32 Gross national product, 60, 61 Debits to deposit accounts, 13 Housing permits, 56 Debt (See specific types of debt or securities) Housing starts, 57 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 09-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 09-A hguorht 4-A segap o t era secnerefeR( A-100 FEDERAL RESERVE BULLETIN □ APRIL 1974 Income, national and personal, 60, 61 Real estate loans: Industrial production index, 54, 55, 56 Banks, by classes* 18, 21, 33, 46 Instalment loans, 50, 51, 52, 53 Delinquency rates on home mortgages, 49 Insurance companies, 33, 38, 39, 46, 47 Mortgage yields, 31, 47, 48, 49 Insured commercial banks, 16, 18, 26, 88 Type of holder and property mortgaged, 45-49 Interbank deposits, 16, 19 Reserve position, basic, member banks, 7 Interest rates: Reserve requirements, member banks, 9 Business loans by banks, 28 Reserves: Federal Reserve Banks, 8 Central banks and govts., 86 Foreign countries, 84, 85 Commercial banks, 19, 22, 24 Money market rates, 29 Federal Reserve Banks, 12 Mortgage yields, 47, 48, 49 Member banks, 5, 6, 15, 19 Prime rate, commercial banks, 28 U.S. reserve assets, 67 Time and savings deposits, maximum rates, 10 Residential mortgage loans, 31, 45, 46, 47, 48, 49 Yields, bond and stock, 30 Retail credit, 50 International capital transactions of U.S., 68-82 Retail sales, 56 International institutions, 66, 67, 84, 86 Inventories, 60 Sales, revenue, profits, and dividends of large Investment companies, issues and assets, 43 manufacturing corporations, 90 Investments (See also specific types of investments): Saving: Banks, by classes, 16, 18, 21, 22, 33 Flow of funds series, 62 Commercial banks, 15 National income series, 60 Federal Reserve Banks, 12, 13 Savings and loan assns., 34, 39, 47 Life insurance companies, 33 Savings deposits (See Time deposits) Savings and loan assns., 34 Savings institutions, principal assets, 33, 34 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 34, 35 Labor force, 58 International transactions, 76, 77 Life insurance companies (See Insurance companies) New issues, 41, 42, 43 Loans (See also specific types of loans): Yields and prices, 30, 31 Banks, by classes, 16, 18, 20, 33 Silver coin, 15 Commercial banks, 15, 16, 18, 20, 25, 27, 28 Special Drawing Rights, 4, 12, 64, 67 Federal Reserve Banks, 4, 6, 8, 12, 13 State and local govts.: Insurance companies, 33, 46, 47 Deposits, 19, 23 Insured or guaranteed by U.S., 45, 46, 47, 48, 49 Savings and loan assns., 34, 47 Holdings of U.S. Govt, securities, 38, 39 New security issues, 41, 42 Ownership of securities of, 18, 22, 33 Manufacturers: Yields and prices of securities, 30, 31 Capacity utilization, 56 State member banks, 17, 26, 88 Production index, 55, 56 Stock market credit, 32 Margin requirements, 10 Stocks (See also Securities): Member banks: New issues, 42, 43 Assets and liabilities, by classes, 16, 18 Yields and prices, 30, 31 Borrowings at Federal Reserve Banks, 6, 12 Number, by classes, 16, 88 Tax receipts, Federal, 37 Reserve position, basic, 7 Time deposits, 10, 15, 16, 19, 23 Reserve requirements, 9 Treasury cash, Treasury currency, 4, 5 Reserves and related items, 4, 6, 15 Treasury deposits, 5, 12, 36 Mining, production index, 55 Treasury operating balance, 36 Mobile home shipments, 57 Money market rates (See Interest rates) Unemployment, 58 Money stock and related data, 14 U.S. balance of payments, 64 Mortgages (See Real estate loans and Residential mortgage U.S. Govt, balances: loans) Commercial bank holdings, 19, 23 Mutual funds (See Investment companies) Member bank holdings, 15 Mutual savings banks, 23, 33, 38, 39, 46, 88 Treasury deposits at Reserve Banks, 5, 12, 36 U.S. Govt, securities: National banks, 16, 26, 88 Bank holdings, 16, 18, 21, 33, 38, 39 National defense expenditures, 37, 60 Dealer transactions, positions, and financing, 40 National income, 60, 61 Federal Reserve Bank holdings, 4, 12, 13, 38, 39 Nonmember banks, 17, 18, 19, 26, 88 Foreign and international holdings, 12, 73, 76, 80 International transactions, 73, 76 New issues, gross proceeds, 42 Open market transactions, 11 Open market transactions, 11 Outstanding, by type of security, 38, 39, 41 Payrolls, manufacturing index, 56 Ownership, 38, 39 Personal income, 61 Yields and prices, 30, 31 Postal savings, 19 Utilities, production index, 55 Prices: Consumer and wholesale commodity, 56, 59 Veterans Administration, 45, 46, 47, 48, 49 Security, 31 Prime rate, commercial banks, 28 Weekly reporting banks, 20 Production, 54, 55, 56 Profits, corporate, 44, 90 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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