Federal Reserve Bulletin, 1974-05

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

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In 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 5 □ VOLUME 60 □ MAY 1974 CONTENTS 325 Financial Developments in the First Quarter of 1974 333 Numerical Specifications of Financial Variables and Their Role in Monetary Policy 338 Open Market Operations in 1973 351 Record of Policy Actions of the Federal Open Market Committee 358 Law Department 404 Announcements 406 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 64 International Statistics A 88 Board of Governors and Staff A 90 Open Market Committee and Staff; Federal Advisory Council A 91 Federal Reserve Banks and Branches A 92 Federal Reserve Board Publications A 95 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL J. Charles Partee Joseph R. Coyne Robert Solomon COMMITTEE Ralph C. Bryant Kenneth B. Williams Lyle E. Gramley Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the First Quarter of 1974 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in finan­ cial markets during the winter and early spring.1 Real gross national product declined during the first quarter of 1974, in large part because of the direct and indirect effects of the fuel shortage. At the same time, rapid inflation raised current-dollar expenditures and sharply increased the book values of inventories to be financed, and it was accompanied by intense business demands for credit. Interest rates, which had declined in January and in early February, began rising around the middle of the quarter as credit demands swelled and the Federal Reserve restricted reserve availability in order to resist excessive growth of the monetary aggregates. On balance, short-term rates were little changed over the 3 months, but long-term rates, with the exception of those on mortgages, rose significantly and exceeded the peaks reached in the summer of 1973. Short- and long-term rates rose considerably further in April, and the Federal Reserve discount rate was raised to 8 per cent on April 24. The narrowly defined money stock, Mlf contracted slightly in January, but expanded rapidly in February and March, recording a 6.7 per cent seasonally adjusted annual rate of growth from the fourth quarter to the first quarter. The broader measures of the money stock, M2 and Af3, grew at more rapid rates, owing to the continued strength of consumer-type time and savings deposits at commercial banks and nonbank thrift institutions. In seeking lendable funds, banks also made increased use of large negotiable certificates of deposit (CD’s) and nondeposit sources. 1The report incorporates revisions in money stock and related measures based on new benchmark data for nonmember banks, as well as benchmark adjustments and seasonal factor revisions for deposits at nonbank thrift institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN □ MAY 1974 MONETARY Between December and March, nonborrowed and total reserves AGGREGATES rose at annual rates of less than 2 per cent, the slowest quarterly growth in more than a year. Although reserves available to support private nonbank deposits (RPD’s) expanded faster than in the final quarter of 1973, most of the RPD increase went to support growth of large CD’s and nondeposit liabilities. As the quarter progressed, banks reduced their holdings of excess reserves and sought additional reserves through borrowings from Federal Reserve Banks and from other commercial banks. The Federal funds rate—the cost of reserves lent by one bank to another—began to rise in mid-February, after having declined moderately since the preceding October. By the end of March the rate reached almost 10 per cent, and it continued upward in April. Measured on a quarterly average basis, Mx (currency plus private demand deposits) expanded at a 6.7 per cent annual rate in the first 3 months of 1974, slightly above the 6.3 per cent rate for TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES In per cent, quarterly figures are seasonally adjusted annual rates 1973 1974 Item 1972 1973 Q2 Q3 Q4 | Ql Member bank reserves— Total ............................................................ 10.6 7.8 6.9 10.6 6.1 1 1.7 Nonborrowed ............................................... 7.7 7.2 7.0 11.3 13.4 1.5 Available to support private nonbank deposits1 ............................. 10.1 9.3 12.5 14.2 1.4 6.2 Concepts of money2 calculated from— End-month of quarter: M, ............................................................ .8.7 6.1 11.5 8.9 7.1 m2 ............................................................ 11.1 8.9 11.1 5.3 11.0 9.9 M, ............................................................ 13.0 8.8 10.6 5.1 9.8 9.4 Quarterly average: M, ............................................................ 7.7 6.3 7.5 5.6 4.5 6.7 m2 ............................................................ 10.9 8.9 8.8 7.9 8.9 9.9 M3 ............................................................ 12.9 8.9 9.0 7.5 7.9 9.4 Time and savings deposits at— Commercial banks (other than large CD’s) ........................................... 13.5 11.4 10.6 10.6 12.6 12.5 Nonbank thrift institutions ................. 16.6 8.6 9.7 4.6 7.6 I 8.6 Bank credit proxy, adjusted3 ................. 11.6 10.6 12.6 10.5 3.3 8.5 MEMO (Change in billions of dollars, seasonally adjusted)— Large CD’s ............................................... 10.4 19.4 7.4 4.7 -3.9 4.9 U.S. Government demand deposits at member banks .............. ... -1.2 -2.3 - .3 - .1 | -1.2 1 Total reserves less required reserves for U.S. Government and interbank deposits. 2M, is currency plus private demand deposits adjusted. M2 is Mi plus bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 3 Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter, except the quarterly average calculation of concepts of money, which are based on changes in the average amounts outstanding for a quarter. Annual rates of growth of reserves have been adjusted for changes in reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1974 327 CHART 1 CONCEPTS OF MONEY Seasonally adjusted monthly averages. Mi is currency plus private demand deposits adjusted. M2 is Mi plus commercial bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. all of 1973. On an end-month-of-quarter basis, the December to March expansion of Mx was at a 7.1 per cent annual rate. Although the end-month-of-quarter measure frequently is a more sensitive indicator of short-run movements of the money stock, the quarterly average rate is comparable, analytically, with the measurement of other economic aggregates such as GNP. The month-to-month behavior of Mx during the first quarter of 1974 was quite erratic, owing in part to special factors. For example, a holiday-related build-up of deposits of foreign banks that had raised Mx in late December reversed itself in January. In February and in March, sizable income tax refunds and a net redemption of maturing Treasury debt resulted in an abrupt shift of demand deposit ownership from the Government to the private sector. Bank time and savings deposits other than large CD’s grew rapidly, particularly in January and February, boosting M2 growth for the quarter to a 9.9 per cent annual rate. Inflows to 4-year certificates accounted for a substantial proportion of consumer-type deposit growth at commercial banks. The same was true at nonbank thrift institutions, where deposits rose moderately and contributed to M3 growth at a 9.4 per cent annual rate in the first quarter. *. In the latter part of the quarter, when business loan demands surged, commercial banks greatly increased their reliance on sales of large CD’s in order to obtain lendable funds. In addition, banks borrowed more heavily from their foreign branches, taking advan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN □ MAY 1974 tage of relatively low Euro-dollar rates. They also sold assets to bank holding company affiliates, which had acquired funds in the commercial paper market. BANK USES OF FUNDS Total loans and investments of commercial banks expanded rapidly between December and March, but the composition of bank credit growth shifted as the quarter progressed. Prior to the sharp jump in business loans during March, bank credit growth was buoyed by substantial increases, on a seasonally adjusted basis, in bank holdings of U.S. Treasury and other securities. Growth of real estate loans slackened further in the first quarter, but less so than BANK CREDIT did consumer loan growth. The relative weakness of these two COMPONENTS loan categories reflects the fact that residential construction and U.S. GOVT. SECURITIES _IZZL u consumer durables (especially autos) accounted for much of the first-quarter decline in real GNP. Total short-term business borrowings, as measured by the sum OTHER SECURITIES of bank commercial and industrial loans and dealer-placed com­ mercial paper, grew at an average annual rate of 25 per cent between December and March. The causes of the exceptional TOTAL LOANS strength of over-all business credit demands throughout the quarter are not as yet completely clear, but it appears that requirements for the financing of inventories and accounts receivable played a major role. To a degree, the large increase in book values of inventories simply reflected the process of replacing depleted stocks with higher-priced goods. In many instances, however, the physical volume of inventories expanded as well. In industries most ad­ versely affected by the energy shortage this accumulation was involuntary, but firms in other industries added voluntarily to stocks of raw materials and supplies in anticipation of further price rises Seasonally adjusted. Loans adjusted for transfers between banks and their and shortages. Another factor boosting short-term credit demands holding companies, affiliates, sub­ sidiaries, or foreign branches. in the latter part of the quarter was postponements and cancellations TABLE 2 RATE SPREADS AND CHANGES IN BUSINESS LOANS AND COMMERCIAL PAPER Amounts1 Prime rate Annual less 30-59 percentage Month day commercial Business rate of paper rate loans Dealer- change in (per cent) at all placed Total total3 commercial commercial banks2 paper 1974—Jan............. .42 2.2 1.6 3.8 26.7 Feb. .85 1.3 1.7 3.0 20.6 Mar............ -.07 5.7 -2.1 3.6 24.3 ’Seasonally adjusted changes, in billions of dollars, based on last-Wednesday-of-month data. 2 Adjusted for outstanding amounts of loans sold to affiliates. 3Measured from end-of-month t6 end-of-month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1974 329 of planned bond issues, because of the rise in long-term rates. Finally, there is some evidence that the uneven performance of earnings among industry groups resulted in cash-flow problems for individual firms that necessitated additional external financing. The fact that business credit demands were so heavily directed toward commercial banks in March seems to have been caused by the lag in increases in the bank prime rate as compared with commercial paper rates. As commercial paper became the more expensive source of funds, corporations paid down outstanding paper and drew upon bank lines of credit. NONBANK Deposits at savings and loan associations and mutual savings banks INTERMEDIARIES AND grew at a seasonally adjusted annual rate of 8.7 per cent between MORTGAGE MARKETS December and March, maintaining essentially the same rate of gain as over the preceding 3-month period. Higher-yielding certificate deposits continued to account for all of the growth in total deposits; passbook savings remained well below the peak recorded last spring, prior to the increase in deposit rate ceilings in July. The inflows of new money were strongest early in the quarter, and during January and February the thrift institutions were able to NONBANK SAVINGS ACCOUNTS reduce their indebtedness, to increase their holdings of liquid assets, and to halt the year-long downtrend in mortgage loan commitments outstanding. With the rise in interest rates on market instruments in the latter part of the quarter, net inflows of new money slackened, and borrowing from the Federal home loan banks picked up. In early April, mutual savings banks in New York City experienced signifi- Seasonaiiy adjusted. cant deposit losses as market rates moved higher. Sample data TABLE 3 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted annual rates 1973 1974 Change— Ql Q2 Q3 Q4 Ql* By type of debt: Total .................................................... 79 76 70 57 58 Residential ..................................... 59 55 49 37 39 Other1 .............................................. 20 21 22 20 19 At selected institutions: Commercial banks ......................... 17 20 19 16 12 Savings and loans ........................... 34 35 25 12 22 Mutual savings banks ................... 6 7 5 4 4 Insurance companies ..................... 2 2 5 7 4 FNMA-GNMA ............................... 2 2 6 3 | 2 includes commercial and other nonresidential as well as farm properties. cPartially estimated. Note.—Details may not sum to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN □ MAY 1974 suggest that savings and loans suffered small deposit outflows, net of interest credited, in the same period. Net mortgage debt formation remained near the reduced rate of the fourth quarter of last year on a seasonally adjusted basis. Savings and loan associations increased their rate of mortgage acquisition, apparently in part through expanded purchases in the secondary market. Direct and indirect financing by the Federally sponsored credit agencies declined further in the first quarter be­ cause private lenders were able to meet the limited demand for mortgage loans in a housing market that continued to suffer from economic and energy-related uncertainties. FUNDS RAISED IN Corporations seeking long-term funds to finance capital outlays and SECURITIES MARKETS to improve liquidity ratios placed heavy demands on the capital markets in the first quarter. Bond offerings were the highest in nearly 3 years and might have been even greater had not several large scheduled offerings been canceled after interest rates began to rise in late February and in March. Bond financings by banks and other financial firms, which had increased sharply in the final quarter of 1973, rose further; manufacturers’ bond offerings re­ mained close to their elevated fourth-quarter rate. Stock issuance declined from the fourth-quarter rate, reflecting in part the relatively high cost of equity funds in the still depressed stock markets. TABLE 4 OFFERINGS OF NEW SECURITY ISSUES In billions of dollars, seasonally adjusted annual rates 1973 1974 Type of issue Ql Q2 Q3 Q4 Ql* Corporate securities—Total ............ 34 32 30 38 39 Bonds ................................................... 17 23 23 26 31 Stocks .................................................. 16 9 8 12 8 State and local government bonds ............................................... 23 24 23 26 23 e Estimated. Note.—Details may not sum to totals because of rounding. State and local governmental units were also substantial bor­ rowers in the bond markets. Total offerings fell moderately from the fourth-quarter rate and were about the same as in the first quarter of 1973. Credit demands of the Federal sector eased substantially in the first quarter. The Treasury financed a significant part of its deficit by reducing its cash balances, which were large at the end of December. The Federally sponsored credit agencies had a reduced Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1974 331 TABLE 5 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals, in billions of dollars, not seasonally adjusted 1973 1974 Item Ql Q2 Q3 Q4 Ql Budget surplus, or deficit ................ -9.5 7.7 -1.1 -5.0 -7.1 Net cash borrowings, or repayments ( —) ........................... 8.4 -6.5 - .7 6.7 3.4 Other means of financing1 ................ 2.9 -1.5 -2.5 .4 1.7 Change in cash balance ................... 1.8 - .3 -4.3 2.1 1 -2.0 MEMO: Net borrowings by Feder­ ally sponsored credit agencies" 2.0 5.0 6.1 3.2 0° 'Checks issued less checks paid and other accrued items. 2Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and securities guaranteed by the Government National Mortgage Association). ° Estimated. need for funds primarily because of their sharply limited partici­ pation in the mortgage markets. The Federal Home Loan Bank System paid down nearly $ 1 billion of maturing debt. INTEREST RATES Most private short-term interest rates traced a U-shaped pattern over the first 3 months of the year, declining 1 to 1 Vi percentage points between early January and mid-February, and then rising again to finish the quarter roughly unchanged on balance. The initial decline was fostered by an easing of bank reserve positions— reflected in a decline in the Federal funds rate—and by market expectations that the Federal Reserve would be encouraging further rate declines in light of the slowdown in economic activity. This expectation was largely reversed in late February when reserve positions tightened again and the Federal funds rate began to rise. A surge in short-term credit demands by businesses toward the end of March and in April pushed interest rates toward the peak levels reached in the summer of 1973. Interest rate movements in the long-term debt markets to a considerable degree mirrored those in short-term markets. How­ ever, the large calendars of new corporate and State and local government security issues and the persistence of strong inflationary expectations limited the decline in long-term rates in the first part of the quarter. Rates on new high-grade utility issues declined only lA of a percentage point before rising by more than 1 point between mid-February and early April. Simultaneously, the Bond Buyer municipal bond yield average dipped only slightly before rising l/i of a percentage point by early April. Corporate and Treasury bond yields in April reached their highest levels since 1970. The continued strength of deposit flows at thrift institutions delayed and limited the impact of changes in market interest rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN □ MAY 1974 CHART 2 INTEREST RATES SHORT-TERM LONG-TERM FEDERAL FUNDS CONVENTIONAL MORTGAGES HUD Aaa UTILITY NEW ISSUE U.S. GOVT COMMERCIAL PAPER 4-6 MONTH J STATE AND LOCAL GOVT F.R. DISCOUNT RATE TREASURY BILLS 3-MONTH * Level of series was affected by issue of new 20-year U.S. Government bond in January. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commer­ cial paper, dealer offering rates; Conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept, of Housing and Urban Development; Corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. on mortgage rates during the first quarter. The average offering rate on conventional mortgage commitments for new homes de­ clined from 8.75 per cent in late December to 8.55 per cent in late February, and rebounded to only 8.60 per cent by the end of March. The average auction yield on Federal National Mortgage Association forward commitments to purchase Government-insured home mortgages—a more sensitive indicator of mortgage market conditions—declined from 8.71 per cent in mid-January to 8.43 per cent in late February. It remained at 8.44 per cent in early March, and then rose to 8.62 per cent later in the month. In recognition of the rise in mortgage rates, the ceiling rates on mortgages underwritten by the Federal Housing and Veterans Administrations were raised by V4 of a percentage point in April to 8V2 per cent. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Numerical Specifications of Financial Variables and Their Role in Monetary Policy The policy record of the Federal Open Market February meeting; in February the range Committee (FOMC) for the meeting held Jan­ adopted was from 8XA to 9V2 per cent. These uary 21-22, 1974—published in the B ulletin ranges were considered to be consistent with for April, pages 275-83—differs from earlier guidelines for the monetary aggregates. policy records in that it contains the numerical While these short-run specifications guide the specifications that guide open market operations System Account Manager in the conduct of open in the period between Committee meetings for market operations between Committee meet­ the money stock as narrowly defined (Mx), the ings, they are determined in the context of the money stock more broadly defined (M2), re­ Committee’s longer-run objectives for monetary serves against private nonbank deposits aggregates and credit conditions generally. The (RPD’s), and the Federal funds rate. Specifi­ longer-run financial objectives, in turn, reflect cations adopted at the meeting held on February the basic posture of monetary policy as it con­ 20 are contained in the policy record published tributes to achievement of national goals for in this B ulletin. economic activity, the general price level, and Earlier policy records had contained numeri­ the balance of payments. cal specifications only for RPD’s. Following extensive discussion, and in light of the further LONGER-RUN GOALS development of the operating procedures fol­ The Committee discusses, and if necessary lowed by the FOMC, the Committee concluded resets, its longer-run financial objectives at each that it would be appropriate also to publish meeting. In developing these objectives, the specifications for other financial variables, be­ Committee is aided by staff presentations of the ginning with the policy record for the first current economic outlook and, as conditions meeting of 1974. change, of the differential impacts of alternative Specifications for Mu M2, and RPD’s are monetary policies on economic activity, the expressed as ranges of tolerance covering rates general level of prices, unemployment, and the of growth for a 2-month period, including the balance of payments. Analysis of the economic month of the meeting and the subsequent month. outlook and of the implication of alternative For the January meeting, these specifications policy assumptions makes use of econometric cover the January-February period; for the techniques as well as judgmental evaluation of February meeting, they cover the Febru- current economic relationships. The analysis ary-March period. The 2-month ranges of tol­ takes into account the latest economic evidence erance for aggregates adopted at these two on prices, production, employment, and spend­ meetings are tabulated on page 335. ing; evaluates the impact of fiscal and other For the Federal funds rate (the day-to-day governmental policies (such as wage-price con­ interest cost of reserves borrowed by banks from trols or housing-support programs); and assesses each other) the specifications are expressed as the relation of economic activity abroad, the a range for weekly average levels during the balance of payments, and exchange market de­ period until the next meeting. In January it was velopments to domestic economic activity and decided that the weekly average Federal funds prices. rate would be permitted to vary in an orderly After a full Committee discussion—in which fashion between 8% and 10 per cent until the individual members present their own assess­ Digitized for FRASER 333 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN □ MAY 1974 ment of the economic outlook and how financial MONETARY AGGREGATES IN THE objectives might be adapted to achieve national SHORT RUN goals—a set of longer-run financial objectives is adopted. These objectives are usually ex­ While basic monetary objectives are established pressed as growth rates for money and credit for longer-run periods, open market operations aggregates over a period of 6 months or so. require shorter-run guides for purposes of car­ They also involve expectations as to associated rying out day-to-day open market operations in developments in over-all credit market con­ the interval between Committee meetings. ditions. Monetary aggregates are included among these Over the years the monetary aggregates, guides, but their operating role is complicated especially the money stock, have been given by the fact that their growth rates tend to be increased weight in the formulation of financial highly variable in the short run, often in unex­ objectives. This has the advantage of providing pected ways. This is because the public’s cash a measure of protection against unexpected, and inflows and need for credit are quite volatile. undesired, shifts in the demand for goods and In part this is the natural outgrowth of huge services. If demands for goods and services, and flows of funds—some of which may be delayed, the accompanying transaction demands for and others accelerated, relative to normal—in money, turn out to be stronger than desired, the a large, complex economy such as ours. Thus, rise in interest rates that would result from the basic thrust of monetary policy is not indi­ efforts to restrain growth in the aggregates cated by monthly, or even bimonthly, changes would work toward moderating the unexpected in monetary aggregates. Rather, these must be strength in spending. On the other hand if de­ averaged out over a longer period of 6 months mands are weaker than desired, the drop in or so in evaluating the course of monetary interest rates that would result from efforts to policy. The accompanying chart shows how maintain monetary growth would work to volatile monthly changes in money compare strengthen spending. with 6-month average rates of change. The Committee has recognized, however, The inherent short-run volatility of the mone­ that the rates of growth in the monetary aggre­ tary aggregates is one reason why the Commit­ gates that will contribute to attainment of the tee expresses its short-run guides in terms of Nation’s economic objectives will vary with ranges of tolerance. In practice, these ranges economic and financial conditions. The rela­ may vary considerably from month to month. tionship between growth in the monetary aggre­ In any particular month, they may be higher gates—and especially any particular aggregate or lower than longer-run objectives for the ag­ such as the narrowly defined money stock—and gregates. This may reflect transitory factors that ultimate economic objectives is itself complex are influencing money but that are expected to and uncertain. The public’s demands for cash be self-correcting, as for instance, when a sharp or liquidity at any given level of income may drop in U.S. Government deposits results in shift—as a result, for example, of financial temporary bulges in private demand balances innovations (such as the development of large before the funds are invested in other assets by certificates of deposits (CD’s)) or of a changed the holders. attitude toward inflation. Or, the volume of Another reason why short-run guides may spending by business, consumers, or home differ from longer-run objectives is that there buyers in response to emerging credit conditions are lags between open market operations and may be unexpectedly strong or weak. Under money growth. When current rates of growth such circumstances, a modification of policy in money are relatively high or low, a few toward monetary aggregates would be needed months may be required to bring the rates of to avert the undesirable effects on economic growth back to levels more consonant with activity that would be associated with excessive longer-run objectives if associated changes in tightness or ease in credit markets. money market conditions and interest rates gen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL VARIABLES: NUMERICAL SPECIFICATIONS & MONETARY POLICY ROLE 335 MONEY STOCK MEASURES 6-MONTH AVERAGE MONTHLY CHANGE RATE Seasonally adjusted annual rates. erally are to be effected in an orderly fashion. example, may be temporarily affected by unex­ This results from the fact that changes in the pectedly large changes in U.S. Government public’s demand for money tend to lag behind deposits or sizable international flows of funds. the changes in interest rates that make it more The relationship between RPD’s and money or less desirable to hold cash. stock aggregates can also diverge from expecta­ The Committee’s ranges of tolerance can be tions because banks issue more or fewer large made wider or narrower, shaded on the high negotiable CD’s than anticipated (which, as or low sides, depending on economic and fi­ money market instruments, are not included in nancial circumstances. For example, the 2- the definition of either Mx or M2 but are required month operating ranges might be widened by to be supported by reserves) or hold more or reducing the low side if a rapid growth in the less excess reserves than expected (which are aggregates had been experienced over the past part of RPD’s). Or the relationship between M1 several months. Thus, the System Account and M2 can diverge from expectations because Manager under the circumstances would in ef­ of shifts in the public’s preferences for cash— fect be instructed to permit a sizable drop in currency and demand deposits—as compared rates of growth in the aggregates over the short with time and savings deposits (other than large term without setting in motion offsetting proce­ CD’s). dures. A comparison of the ranges of tolerance Despite the use of ranges in specifications, adopted for the aggregates at the January and experience has shown that large, short-run, and February meetings of the FOMC with actual often transitory changes in the monetary and results, shown in the tabulation below, illusreserve aggregates will frequently result in 2month rates of growth that are outside the January-February February-March Committee’s ranges of tolerance for at least Range of Range of tolerance Actual tolerance Actual some of the aggregates. There may be unfore­ seen special factors that are influencing short­ Mx 3-6 4.7 6V2-9V2 11.8 m2 6-9 9.9 9^-12^ 10.9 term rates of growth. The money stock, for RPD’s 43A-VA 3.3 3V2-6Vi 5.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN □ MAY 1974 trates the inherent variability of these relation­ Committee to consider modifying its instruc­ ships. All figures represent annual percentage tions. The Committee’s instructions were modi­ rates of change. fied twice following the February 1974 meeting, Ranges of tolerance for Mx and M2 for Feb­ as explained in the policy record for that meet­ ruary-March were higher than for January- ing published in this B ulletin. These modifi­ February. The higher range of tolerance for M1 cations affected the extent to which the System for the February-March period was believed to Account Manager adjusted reserve-supplying be consistent with longer-range objectives. It operations, with implications for the degree of was set in light of the decline that had occurred tightness in money market conditions, in light in Mi in January. Thus, a relatively high growth of the tendency for the aggregates, particularly rate was required in February-March to com­ Mu to strengthen relative to the ranges of toler­ pensate for the shortfall. Moreover, it was an­ ance and in light of the sensitive state of finan­ ticipated that the high growth rate would be cial markets in the aftermath of a large Treasury temporary, because a decline in U.S. Govern­ refunding. ment deposits was expected to have a transitory upward impact on M1 growth in February and ROLE OF MONEY MARKET CONDITIONS thereby on the February-March average. As it happened, growth in Mx for the Febru­ Operating procedures of the Federal Open Mar­ ary-March period turned out to be well above ket Committee have evolved over time. For a the upper limits of its range of tolerance, as number of years money market conditions— February growth was influenced by a much defined to include the Federal funds rate and sharper-than-anticipated drop in U.S. Govern­ member bank borrowing from Federal Reserve ment deposits and as growth remained strong Banks, among other indicators—were taken as in March. At the same time the growth in RPD’s the primary guide for day-to-day open market was in the upper half of its range of tolerance operations. In the 1970’s, increased emphasis and growth in M2 was at the midpoint. In has been given to monetary aggregates, January-February, by contrast, had been principally measures of the money stock. In around the midpoint, while M2 had been above 1972 the FOMC introduced, on an experimental the upper limit and RPD’s below the lower limit basis, reserves against private nonbank deposits of their tolerance ranges. as a guide to reserve provision in the interim The Committee has recognized the great dif­ between Committee meetings. ficulty in achieving very short-term control over With the increased emphasis on reserves and the monetary aggregates. A memorandum sub­ other aggregates, it was expected that money mitted by Chairman Burns in connection with market conditions might fluctuate more widely hearings held by the Joint Economic Committee from day to day than they had in the past, since of the U.S. Congress on June 27, 1973, dis­ open market operations would be somewhat cussed the problems encountered in controlling more responsive to current changes in the ag­ the money stock, particularly in the short run. gregates in order to guard against the develop­ This memorandum also noted that “. . . precise ment of cumulative overshoots or shortfalls in control of very short-term fluctuations in money monetary growth. On the other hand, because is comparatively unimportant, since only the of the demonstrated volatility in the aggregates, longer-lasting changes in money supply appear it was recognized that changes in reserve avail­ to have much economic significance.” ability and in money market conditions would The short-run ranges of tolerance are general need to be effected gradually—avoiding large guides for the conduct of open market policy and abrupt responses to unexpected changes in in inter-meeting periods. If significant inconsis­ the aggregates, since these might in any event tencies develop among the various short-run prove to be self-correcting. operating variables, the Chairman of the FOMC There is little reason to permit sharp short-run is promptly notified and he may call on the swings in interest rates (for example, 4 or 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL VARIABLES: NUMERICAL SPECIFICATIONS & MONETARY POLICY ROLE 337 percentage points over a month or so) in an A narrow range for that rate limits the ability effort to smooth out temporary variations in of open market operations to work against an money and credit demand. Such extreme unduly large or small growth in the aggregates. swings, and the associated uncertainties as to On the other hand, the range for the funds rate credit conditions generally, could reduce the may be narrowed at times when there is reason efficiency with which financial markets function to believe that a greater degree of stability in and tend to increase financing costs to ultimate credit markets needs to be assured—for ex­ borrowers. ample, when financial markets are being buf­ The range for the Federal funds rate indicates, feted by extreme pressures reflecting sudden in terms of the money market, the extent to shifts in flows of funds or in expectations. which conditions of reserve availability may be The extent to which money market conditions adjusted in the period between FOMC meetings, are permitted to fluctuate in the short run is also although the Committee may, of course, agree affected by the unique role of the Federal Re­ to change the instructions during the inter­ serve System as the Nation’s lender of last meeting period. When the Federal Reserve resort. Liquidity pressures ultimately devolve on Trading Desk increases the volume of bank the money market, and the Federal Reserve has reserves by buying securities, the initial effect a responsibility for maintaining orderly condi­ is to exert downward pressure on the Federal tions in that market. funds rate and on short-term interest rates more The numerical specifications for the various generally. On the other hand, when the Trading short-run operating guides now published reflect Desk holds back on reserve provision, the the evolution of the System’s operating proce­ money market tightens. dures. They indicate that weight is given to The range of the Federal funds rate may be monetary aggregates, bank reserves, and money narrower or wider, depending on circumstances. market conditions in operations. The relative If the FOMC is most concerned with moving importance of each of these variables, however, monetary aggregates back fairly promptly may vary considerably, depending on the particu­ toward longer-run goals, it may specify a wider lar economic and financial circumstances that range for the funds rate than it would otherwise. monetary policy appears to be confronting. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Open Market Operations in 1973 This article is adapted from a report submitted and reserve aggregates to generate modifications to the Federal Open Market Committee by Alan in the Manager’s weekly nonborrowed reserve R. Holmes, Manager of the System Open Mar­ targets. The tolerance range for growth in re­ ket Account and Senior Vice President of the serves to support private deposits (RPD’s) was Federal Reserve Bank of New York. designed to foster the desired growth of Mx and M2—Mx plus time and savings deposits other The Federal Reserve implemented an active than large negotiable certificates of deposit policy of restraint during 1973 to counter the (CD’s). In practice, the relation between RPD’s powerful resurgence of inflationary pressures in and these two aggregates often proved hard to the economy. The System moved forcefully to predict, leading to somewhat more emphasis on limit monetary growth through the conduct of the underlying behavior of the aggregates them­ open market operations and through several selves. regulatory changes, bringing short-term rates of The Committee’s instructions to the Manager interest to unprecedented levels by the summer. involved (1) specifying his response to incoming The Federal Open Market Committee (FOMC) information on the aggregates and (2) specifying continued to express its policy intent in terms a range within which the Federal funds rate was of quantitative objectives for the deposit and allowed to move in the period between meet­ reserve aggregates, although these targets were ings. When the aggregates were strong relative frequently qualified by concern for domestic to their prescribed ranges, the Manager was to financial markets and the international financial restrain nonborrowed reserves so that the Fed­ situation. The M1 definition of the money eral funds rate would rise, and conversely when stock—demand deposits and currency in the the aggregates were weak. Unduly sharp fluctu­ hands of the public—remained the central focus ations in money market conditions were to be of policy formulation and implementation. The avoided. Committee lowered its longer-run objective for The Committee’s operational strategy, as im­ Mx a number of times during the year in plemented by the Manager, initiates a series of response to the acceleration of demands on the reactions in the banking system and in the limited capacity of the economy. financial markets. Market participants’ assess­ The Committee’s quantitative objectives for ments of the economic outlook interact with the aggregates continue to be framed with a anticipations of monetary policy’s likely view to the long-range economic outlook. They response to these prospects. Participants have are changed relatively infrequently, and reflect developed a heightened awareness of the Sys­ the leverage the Committee seeks to exert on tem’s use of quantitative targets in recent years. underlying economic forces. The FOMC’s op­ They seek to anticipate System-engineered erational instructions to the Manager convey the changes in reserve availability and in the Federal thrust of its policy intent and specify a response funds rate in making trading decisions and port­ to emerging patterns of monetary growth. In folio adjustments. These expectations and reac­ 1973, the Committee continued its practice of tions, together with the institutional setting and using 2-month tolerance ranges1 for the deposit underlying economic forces, act as major deter­ minants of monetary and credit flows. The interplay between the various factors in *Alan R. Holmes, “Open Market Operations in the monetary process rarely results in smooth 1972,” Federal Reserve Bulletin, June 1973, pp. 405-16. growth of the aggregates. In 1973, the narrow Digitized for FRASE3R3 8 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

money stock, M1? increased by 5.7 per cent.2 The Committee’s reaction to deviations in While this reflects a moderation from growth money stock growth from the long-run path was in 1972, the quarterly changes were remarkably influenced by its consideration of shifts in the diverse and often not indicative of underlying underlying economic situation. Given continu­ economic trends. M2 expanded at an 8.6 per ing indications of a booming economy and the cent rate. The slower growth compared with the strength shown by the broad measures of the previous year was mainly related to the deceler­ aggregates, it avoided a significant easing of ation in Mx; an upward revision of Regulation money market conditions after Mx decelerated Q ceilings in early summer and a temporary in the first quarter. In the spring, the FOMC suspension of the interest rate constraint on moved promptly to resist the renewal of rapid 4-year or longer time deposits in denominations monetary growth, which brought expansion in of more than $1,000 sustained the inflow of such Mx to an unexpectedly strong 11.9 per cent deposits at commercial banks. growth rate in the second quarter from 3.8 per Of far greater import for both the pattern of cent in the first. The Committee resisted ac­ interest rates and credit flows was the absence commodating the cumulation of bank demands of interest rate ceilings on large CD’s during for reserves in the spring and summer by per­ a period of monetary stringency. Demands on mitting the Federal funds rate to rise more the banking system were bolstered during part rapidly and even further than originally con­ of the year by the feverish speculative activity templated at its meetings. It maintained this in the foreign exchange markets and shifts of posture and accepted an emerging shortfall of borrowers out of the commercial paper market. growth toward the end of the summer as The adjusted credit proxy, a more inclusive inflationary pressures persisted. measure of member bank deposit liabilities, The Committee began to temper its approach registered a 10.6 per cent gain as banks accom­ as the cumulative impact of increasing restraint, modated enormous loan demands over the first including sharply higher interest rates, was ex­ two-thirds of the year. Partly for this reason, pected to keep monetary growth weak. It ap­ RPD’s increased by 9.2 per cent over the year, peared toward the end of the third quarter that well above the growth in Mx. Total loans and the “no growth” quarter just ended would be investments at all commercial banks rose by followed by further sluggishness in the final 12.6 per cent, just a bit below the 14.6 per cent quarter. The staff suggested that delays in expansion in 1972. responding to this weakness could require in­ creasingly sharp short-run adjustments to return 1973— AN OVERVIEW Mx to a longer-run path of moderate expansion. The Committee’s desire to get back on this The FOMC’s policy over the year. In set­ moderate growth path was also a response to ting its long-run goals for the aggregates, the signs that expansion in real output would slow Committee initially sought to offset the overly slightly in the fourth quarter and slacken further rapid monetary expansion of 1972. The surge in the first half of 1974. Concern that the Mid­ in spending and the bleak outlook for prices east oil embargo would significantly worsen encouraged it to emphasize monetary restraint. these prospects mounted as the year drew to a At its March meeting, the FOMC lowered its close. At the same time, growth in the money longer-run objective for growth in M1? and it stock rebounded to a 7.5 per cent rate in the retained an objective of moderate growth over final quarter of the year and the Committee the remainder of the year. moved cautiously in light of these contrary forces. The FOMC’s operational instructions to 2 The data on the aggregates in this introductory the manager over the year. The FOMC section reflect the annual revision of the series published stipulated explicit responses to the behavior of in early 1974. The data used subsequently in describing the aggregates during the year, underscoring its operations during the year are those available at the time. basic policy intent by adjusting its tolerance 339 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN □ MAY 1974 ranges for RPD’s and the aggregates. At its first that typically arose from shifts in the distribution three meetings of the year and again in June, of deposits among the different categories of the Committee reduced the lower ends of the member banks and changes in bank holdings ranges suggested by the staff as consistent with of excess reserves. In view of the FOMC’s longer-run objectives. In this way, the FOMC concern with attaining its objectives for the indicated its tolerance of relatively slow growth deposit measures, the Manager found RPD’s of in the near term and forestalled the possibility lesser importance in the determination of his of a reduction in the prevailing restraint on bank response to the emerging patterns of monetary reserve growth. In August, the Committee re­ growth. duced the entire suggested range for RPD’s to The Manager’s implementation of the indicate its concern with the rapid pace at which FOMC’s instructions. Open market operations this measure had expanded in previous months. in the first 3 months of the year increased the Thereafter, given indications of rather weak pressure on bank reserves and money market money stock growth in the months ahead, the conditions in a continuation of the response to FOMC generally raised the upper ends of the overly rapid money stock growth in late 1972. tolerance ranges by modest amounts. This in­ In establishing weekly targets for nonborrowed creased the potential for some easing of reserve reserves, the Manager was mindful of the Com­ pressures, an intention that the Committee made mittee’s desire to see an orderly movement in explicit at its final meeting of the year. the Federal funds rate. The Federal funds rate In its instructions to the Manager, the Com­ rose to 7 per cent by mid-March, an increase mittee usually indicated that potential diver­ of about 150 basis points from the start of the gence between growth in RPD’s and the deposit year. The Trading Desk acted to reduce non­ measures be resolved to reflect the higher prior­ borrowed reserve targets in relation to reserve ity given to the latter, particularly Mx. In any requirements during this period. Member bank event, a number of factors weakened the corre­ use of the discount window climbed by $800 lation between these measures during the year. million to $1.9 billion, on average, from De­ Since RPD’s incorporate a weighting of the cember to March. For a time, in March and different types of private deposits by their re­ early April, the aggregates, and Mx in particu­ spective percentage reserve requirements, it is lar, began to weaken relative to their tolerance particularly sensitive to changes in the compo­ range, leading to a pause in the move toward sition of deposits and to bank liability manage­ restraint. ment. RPD growth was stimulated relative to Shortly after the April FOMC meeting, Mx over the first two-thirds of the year by the growth in the deposit measures appeared to be rapid rise in CD’s, which, in turn, reflected the accelerating and open market operations brought sharp rise in bank loans and the suspension of additional pressure on bank reserve positions. Regulation Q ceilings in mid-May. The System Member bank borrowings changed relatively acted to curtail bank credit and monetary ex­ little, on average, but the Federal funds rate pansion by raising reserve requirements on most responded sharply.3 The funds rate had reached demand deposits in early July. It imposed mar­ SV2 per cent by the end of June, when another ginal reserve requirements on large CD’s to take wave of excessive monetary growth emerged effect in June and increased them in September, and the Manager moved more aggressively to before reducing them to their initial level in curtail the expansion of nonborrowed reserves. early December. However, the momentum of Enlarged bank demands for reserves, combined bank credit expansion was strong and this in­ crease in reserve ratios bolstered RPD growth 3In April, the Federal Reserve began to permit mem­ ber banks with particularly heavy seasonal reserve out­ in the summer. When monetary expansion sub­ flows to borrow a portion of their reserve needs at the sequently decelerated, RPD growth slowed. The discount window. Since this borrowing privilege is regulatory amendments were thus a further prearranged, it is not included with regular borrowing in this report. Seasonal use of the discount window rose source of variation in the reserve-deposit multi­ from $5 million to $163 million in August and then plier over the year, adcjing to the fluctuations declined steadily to $41 million in December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1973 341 with some reluctance to increase use of the The rise in CD rates often outdistanced the discount window, caused the Federal funds rate Federal funds rate, and many banks were re­ to rise abruptly to over 10 per cent at the portedly paying 11 per cent for 60- to 89-day beginning of July, a larger increase than had prime CD’s over most of August and Sep­ been anticipated at the time. Actions to restrain tember, more than double the rates offered at the availability of nonborrowed reserves contin­ the start of the year. Rates on longer CD’s ued with little interruption over the summer, adjusted upward after the remaining applicable although the increase in the average Federal Regulation Q ceilings were suspended in May, funds rate slowed somewhat, bringing it to 10^ although banks rarely showed an inclination to per cent during most of August and 10% per commit themselves to pay high rates for long cent near the end of that month. The aggregates periods of time. The introduction of a dual moved down within their tolerance ranges by prime rate structure in late April prompted a early September, and the Manager held his steady rise in the prime loan rate charged large reserve objectives steady until after the Sep­ businesses in the months that followed, bringing tember FOMC meeting. While average member it to a record 10 per cent by September. Com­ bank borrowings rose by an additional $300 mercial paper rates were also pushed higher, but million between June and August, it dropped activity in this market receded sharply over the back shortly after the beginning of September, first 8 months of the year. Treasury bill rate leading to fairly persistent upward pressure on increases were damped until June by demand the Federal funds rate. from foreign central banks, which periodically In response to the FOMC’s instructions and depleted dealer inventories. Thereafter, bill weakness in the aggregates, the Manager rates rose sharply in response to the accelerated adopted a more generous approach to the provi­ rise in the Federal funds rate. The rate on the sion of nonborrowed reserves toward the end 3-month issue stood at 9.05 per cent in midof September. The Desk provided reserves at September, an increase of almost 4 percentage a growing pace, and the Federal funds rate, after points from the beginning of the year. A series showing little tendency to decline, moved down of increases in the Federal Reserve discount to 10 per cent in mid-October. The funds rate rate, which brought this rate to an unprece­ rose a bit above 10 per cent in November as dented IVi per cent by mid-August, confirmed Mx strengthened. But in December the FOMC the shift to a higher rate structure. again voted for a more generous reserve provi­ Near the end of September, the Committee’s sion, and the rate was just over 9Vi per cent adoption of a less reluctant approach to the at the year-end. While the decline in the Federal reserve provision was followed by a precipitous funds rate after September was rather modest, drop in short-term interest rates. Thereafter, the Desk’s increased provision of nonborrowed rates fluctuated dramatically in response to con­ reserves enabled banks to reduce their borrow­ flicting economic developments and changing ing to an average of $1.3 billion in the last market assessments of the outlook for System month of the year from the peak level of $2.1 policy. The initial declines were partly eroded billion in August. by the year-end as the System’s moves toward The securities markets over the year. The a less restrictive policy stance proved more intensification of pressures on bank reserve po­ measured than participants anticipated. Bank sitions in the early part of the year quickly offering rates on large CD’s fell to as low as spilled over into the short-term credit markets. 8V2 per cent for 3-month maturities by the end Borrowers had strong inducement to switch of October, but they subsequently moved back from open market paper to taking down bank to close the year at 9lh per cent. Bank will­ loan commitments as the rise in the bank prime ingness to permit CD’s to run off toward the rate was slowed by the activities of the Com­ end of the year, in anticipation of further interest mittee on Interest and Dividends (CID). To help rate declines, was facilitated by a shift of bor­ finance loan demand, banks aggressively issued rowers back to the use of commercial paper. a large volume of CD’s. Banks reduced the prime rate only marginally, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN □ MAY 1974 and it thus remained above commercial paper sales of Federally sponsored agencies rose by rates in the last 4 months of 1973. Treasury over $10 billion to $14.4 billion. The housingbill rates became particularly volatile, reflecting related agencies became particularly heavy bor­ sensitivity to developments in the foreign ex­ rowers as the climb in short-term rates eroded change markets as well as to domestic monetary deposit flows at the thrift institutions. The steep influences. The bid rate on the 3-month issue rise in mortgage commitments from 1970 to dropped by nearly 200 basis points between early 1973 led to a continued expansion in early September and early October. Thereafter mortgage lending over the first half of the year. it rose as high as 8.62 per cent but closed the Mortgage rates rose steadily during most of year at 7.45 per cent. 1973, and rate limitations in a number of States, The long-term debt markets were partly insu­ as well as a drop in thrift institution commit­ lated from money market pressures, and yields ments, limited the growth in mortgage credit never reached the levels observed in late 1969 toward the end of the year. and 1970. The funneling of business credit demands into the banks and sizable internal cash JANUARY-MID-APRIL flows, aided by dividend restrictions, kept pub­ lic offerings of corporate bonds at a modest The Committee’s instructions. At its first $13.6 billion in 1973, down $5 billion from the three meetings of the year, the Committee voted previous year. Bond yields rose moderately for slower growth in the aggregates over the through June and then climbed sharply, paral­ months ahead than had occurred in the previous leling the escalation in short-term rates. Yields 6 months. When the Committee met on January peaked for the year in early August and then 16, the staff’s analysis indicated that it would fell sharply, as the view that monetary restraint take time for additional pressure on bank reserve had reached a plateau set off an anticipatory positions to reduce money stock growth from buying spree. The impact of the Mideast oil the excessive pace of late 1972. While it was embargo on fuel costs and inflation worries expected that intensified reserve pressures would generally had a stronger impact on long-term achieve the moderate expansion in Mx desired bonds as the year drew to a close and yields over the months ahead, growth in the near term rose again. The yield on recent Aaa-utility was expected to remain rapid in view of the issues was at 8.10 per cent near the end of accelerated pace of economic activity. The December, around 7s of a percentage point Committee chose tolerance ranges for Mu M2, higher than a year earlier. Trends in the and RPD’s that were at least as restrictive as municipal bond market were similar, but yields the alternatives presented by the staff and re­ rose somewhat less toward the year-end as bank duced the lower ends of these ranges to indicate interest in tax-exempt securities re-emerged. its willingness to accept substantially slower The Bond Buyer’s municipal index rose only growth in the near term. The Committee agreed 5 basis points over 1973 to 5.16 per cent. that open market operations should be directed Government coupon yields generally moved in at restraining reserve growth and anticipated that concert with corporate issues although some the Manager would achieve the attendant firm­ additional upward adjustments were related to ing in the money market in advance of the the Treasury’s refinancing of a relatively larger Treasury’s February refunding operation. share of 1973 maturities in the long-term bond Money stock growth decelerated sharply in market. The Treasury’s expanded use of long­ January, but the outlook presented at the Febru­ term borrowing was part of an over-all plan to ary 13 meeting continued to indicate consid­ increase the viability of the long-term Govern­ erable growth in the aggregates over the months ment market by increasing supplies. Over the ahead. The FOMC again chose more restrictive year, an improvement in the tradability of such 2-month tolerance ranges for the aggregates than issues was apparent. presented by the staff and anticipated that some Treasury cash borrowing fell sharply from additional firming of money market conditions $15.3 billion to $7.7 billion during 1973, but would ensue. Estimates made soon after the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1973 343 meeting indicated that Mx growth would remain around 7 per cent in the weeks leading up to strong while RPD’s were beginning to acceler­ the Committee’s meeting in March. ate and were moving above their specified The Manager initially continued with the range. In view of this, the Committee agreed same reserve strategy after the March meeting, on March 1 that the Federal funds rate should expecting the Federal funds rate to remain be permitted to rise somewhat further than had around 7 per cent. While record expansion in been contemplated earlier. large CD’s boosted credit proxy growth above By the time of the March 19-20 FOMC earlier expectations, a weakness in demand de­ meeting, growth in Mx and M2 had moderated, posits began to moderate growth in the money although RPD’s and credit proxy growth were stock measures and in RPD’s. As a result, these well above levels previously indicated. In view two measures began to move below their toler­ of recent sharp price increases and evidence ance ranges toward the end of March. In suggesting a continuation of overly rapid eco­ response, Desk operations were directed at en­ nomic growth, the Committee reduced its couraging less money market tautness. While longer-run objective for Mx. While RPD growth the Manager would have ordinarily continued was expected to remain rapid, the FOMC chose with this shading of reserve objectives, the the lowest 2-month ranges suggested for the Committee decided on April 11 to avoid further money stock measures and reduced the bottom modifications until the next meeting. ends of the tolerance ranges for all measures. The Account Management encountered diffi­ When M1 and RPD growth decelerated even culty over much of this period in avoiding more because of weaker-than-expected expan­ unduly sharp fluctuations in money market con­ sion in private demand deposits, a majority of ditions. While member bank borrowings rose the Committee agreed, on April 11, to avoid considerably, on average, they sometimes an easing of money market conditions in the varied by as much as $700 million from week days before its April meeting. to week. Bank response to anticipations of fur­ The Manager’s response. The Manager ther increases in the Federal funds rate caused moved promptly after the January FOMC meet­ them to build up excess reserves early in a ing to limit nonborrowed reserve availability. statement week, bidding aggressively for Fed­ By the end of January, the Federal funds rate eral funds and using the discount window heav­ had risen to 6% per cent from 5% per cent 2 ily over the weekend. Substantially easier weeks earlier. Estimates of Mx growth steadily money market conditions would then emerge moved lower, while RPD’s were within the range when the hoarded reserves were pressed on the specified for the 2 months ending in February, market. The Desk often adapted its operations and the Desk acted to stabilize conditions in the to this pattern, supplying some reserves early money market during the refunding operation. in the week and, on occasion, withdrawing them The Desk adopted a more reluctant approach at the end of the statement period. to the reserve provision soon after the Commit­ The securities markets. Developments in tee’s February meeting, when estimates of Mx the credit markets in the opening months of the over February and March indicated that growth year reflected awareness that the System would would remain strong while larger-than-antici- respond to the persistence of inflation and the pated time deposit expansion was adding to M2. strong pace of money stock growth, leading to At the same time, extraordinarily large gains higher interest rates. Market participants were in negotiable CD’s brought credit proxy growth quick to note the Desk’s reluctance to supply well above earlier expectations and pushed reserves as the Federal funds rate rose above RPD’s up to a 5 per cent rate, well above the previous levels. Two increases of Vi percentage 2.5 per cent top of the range specified for point each in the Federal Reserve discount rate, February and March combined. Accordingly, bringing it to 5Vi per cent by the beginning of the Manager continued to hold back on the March, underscored the System’s intent. provision of nonborrowed reserves, anticipating The emergence of strong loan demand at that trading in Federal funds would average banks—bolstered by the low level of the prime Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN □ MAY 1974 rate in relation to rising market rates—and the cover short positions. Expectations of continued resulting pressures in the CD market also had modest calendars of bond offerings also helped an impact on the structure of rates. By mid- yields retrace earlier increases. The yield on March rates paid by major banks on CD’s ma­ recently offered Aaa-utility issues was 7.47 per turing in up to 89 days had risen by around cent in mid-April, around 20 basis points above 150 basis points to 7Vs per cent, and Regulation its level at the start of the year. The Bond Q ceilings constrained the availability of funds Buyer’s index, at 5.07 per cent, was around its with a longer maturity. Treasury bill rate in­ early-January average and down 27 basis points creases were tempered by the strength of foreign from the level of 1 month earlier. At the same central bank demand, but rates on most issues time, the confluence of business demands for still rose by well over 100 basis points. The short-term credit kept money market rates under rate on the 3-month issue reached 6.55 per cent some pressure. Rates on large CD’s and com­ in early April but then moved back down to mercial paper thus increased by another 25 to 6.19 per cent when an easier climate emerged 35 basis points between the March and April in the money market. meetings. The 3-month Treasury bill rate rose In the long-term debt markets, the pull of but then fell back to 6.20 per cent, while rates short-term interest rates and concern over infla­ on longer issues began to experience modest tion generated an upward adjustment in yields. declines. But expectations of light corporate and Govern­ ment borrowing demands kept the rise in yields MID-APRIL TO JUNE to modest proportions in the first few months of the year. In its February refunding, the The Committee’s instructions. At the Treasury sold a 3^2-year, 6V2 per cent note Committee’s April 17 meeting, demands for priced to yield 6.60 per cent and auctioned $1 money were expected to strengthen in the near billion of a 6%-year, 6% per cent note that was term, given the transactions needs of a booming awarded at an average yield of 6.74 per cent. economy. At the same time, the staff thought Interest in the new issues was initially restrained that the previous rise in interest rates would as dealers were anxious about burdensome fi­ continue to limit money stock growth so that nancing costs. However, demand from foreign the reserve conditions consistent in the near term central banks soon spilled over into the Treasury with the FOMC’s longer-run objective for Mx coupon sector, and the market improved in the could be achieved without further money market weeks that followed. pressure. The broad money supply, M2, and Published data showing a deceleration in RPD’s were anticipated to slow, and the ex­ money stock growth over the first quarter began traordinarily rapid bank credit expansion of to outweigh evidence of continued rapid eco­ previous months also seemed likely to taper off. nomic expansion in the formulation of interest Against this background, the Committee voted rate expectations. The less-than-2 per cent to seek moderate growth in the aggregates over growth first reported in over the 3 months the months ahead, anticipating that the 2-month ending in March, generated the view that the expansion rates indicated for the reserve and System could soon move to stimulate more rapid deposit measures would be associated with little expansion. The stability of the funds rate around change in the Federal funds rate. the 7 per cent level was interpreted as an en­ In the months that followed, most aggregates couraging sign and when the Desk entered the measures exhibited excessive strength. The market to make outright purchases of Treasury Committee voted in May to seek slower growth bills on April 6 with Federal funds trading at in the aggregates over the months ahead than 7 Vs per cent—a rate previously thought to be had occurred in the previous half-year. It acceptable—a major rally ensued in the securi­ responded to signs of further acceleration by ties markets. raising the upper limit of its constraint on the The change in attitudes had the most impact Federal funds rate at its May meeting and twice on longer-term securities amid dealer efforts to in the weeks that followed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1973 345 The Manager’s response. The Manager quickly generated bond market expectations of moved almost immediately after the April increased monetary restraint. These were con­ FOMC meeting to adopt a more reluctant ap­ firmed by the rise in the Federal funds rate and proach to the reserve provision when it was three rounds of increases in the Federal Reserve projected that Mx and M2 growth over April and discount rate, which brought the rate to 6V2 per May would move above acceptable ranges. RPD cent at all Reserve Banks by June 15. Rates growth, however, fell below its tolerance range, in the CD market, spurred by bank demands, given a shift in the multiplier. The Desk was led rate increases on other instruments, even soon anticipating that the Federal funds rate though the cost of increasing such liabilities had would rise to around IV2 per cent, compared been stepped up by the Board’s action on May with about 7 per cent prevailing just prior to 16 to subject them to marginal reserve require­ the meeting. The success of the Treasury re­ ments, a move taken to brake the rapid expan­ funding in early May gave no cause for modi­ sion in bank loans. Although the outlook in the fying this approach, although the Committee bill market had been improved by substantial had provided for this possibility in its directive. Treasury redemptions of maturing issues, it was At its May 15 meeting, the Committee re­ outweighed by the spreading impact of mone­ tained close to the same 2-month acceptable tary restraint, and the rate on the 3-month issue range for Mx but the range for RPD’s was rose another 100 basis points to 7.20 per cent lowered somewhat from the interval specified by mid-June. the month before, given recent experience and Interest rate expectations began to be affected the expectation that higher interest rates would in June by the belief that the pace of economic soon curb deposit growth. The upper limit activity would soon begin to moderate. In fact, placed on the Federal funds rate was raised. many observers began to suggest that a reces­ The Account Manager soon found himself sion would emerge by the year-end and that the pressing against the Federal funds rate constraint System would move to counter such a develop­ as projected growth accelerated to a 10 per ment. The response to the growing monetary cent rate over May and June. The expansion stringency was thus tempered by some feeling in M2 was well above acceptable growth, al­ that it could well turn out to be of fairly short though shifts in the distribution of deposits duration. For a while, anticipations of stronger worked to keep RPD’s just a bit above the 11 administration wage-price control measures per cent upper end of the range established for also convinced many that the need for prolonged this measure. In view of these developments, monetary restraint would be reduced. Although the Committee decided on May 24 and again the System had suspended the remaining Regu­ on June 8 to raise the upper limitation on the lation Q ceilings on large CD’s, as part of the Federal funds rate. By the June 18 Committee broad regulatory package adopted on May 16, meeting, the Manager was anticipating reserve banks showed little interest in extending the conditions consistent with a funds rate of around maturity of these liabilities. Rates on longer- 8V2 per cent. term Treasury bills were still below 7 per cent The Manager’s growing reluctance to supply by mid-June and price declines in the long-term nonborrowed reserves over the period starting bond markets were moderate despite the further with the April meeting became readily apparent tightening of money market conditions. in the money market. Member banks became Yields on intermediate-term Treasury issues less willing to increase borrowing much above rose prior to the May refunding operation but the $1,850 million level reached in March. In declined afterward as dealers made good this situation, and with deposit levels rising progress in distributing the new issues. The steadily, enlarged demands for reserves pushed Treasury redeemed $1.65 billion of maturing the Federal funds rate progressively higher over issues for cash, auctioned $2 billion of 7-year, the 2 months with little interruption. 6% per cent notes at 7.01 per cent, and $650 The securities markets. The emergence of million of 25-year, 7 per cent bonds at 7.11 more rapid money stock growth during April per cent. The bonds were sold at the lowest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN □ MAY 1974 accepted bid price, the second time that the 21 meeting it was expected that the prior rise Treasury had utilized this technique. (In early in short-term rates would continue to limit January, $625 million of a 20-year bond had money demand in the months ahead following been sold at a price to yield 6.79 per cent.) a marked deceleration in July. The Committee Subsequent yield increases were modest, as became willing to accept slow growth for a banks remained generally unwilling to reduce while, especially because RPD’s showed no holdings of coupon issues. Over the 2-month such tendency and even strengthened. At its period ending in mid-June, the yield on U.S. August meeting, the Committee placed empha­ Government securities maturing in 10 years rose sis on bringing expansion in this measure below from around 6.70 per cent to 6.90 per cent. The the range thought consistent with its near-term returns on recently offered Aaa-rated corporate objectives for the money stock measures. utility issues increased by a similar amount to The Manager’s response. The System around the 7.60 per cent level reached in mid- moved to adopt a substantially more restrictive March. Reflecting hopes that banks might again posture at the end of June when incoming data become more active participants in the tax-ex­ showed more rapid growth in the aggregates empt market, the Bond Buyer's index, at 5.13 than was acceptable. It was expected that this per cent over the first 2 weeks of June, was shift in reserve strategy would raise the Federal essentially unchanged from its average in the funds rate to 9lA per cent from the 8V2 per cent first half of April. Mortgage yields continued average then prevailing, although a much larger to creep up, and the rates established in the increase developed. After the July 17 meeting, bi-weekly Federal National Mortgage Associa­ Mx moved within an acceptable range, but M2 tion auction rose 15 basis points to 8.04 per and RPD’s continued to increase at overly rapid cent. rates following enlarged inflows of time deposits to commercial banks. Actions to restrain the availability of nonborrowed reserves thus con­ JULY-MID-SEPTEMBER tinued without interruption until early August, The Committee’s instructions. When the although the anticipated weekly rise in the Fed­ Committee met on June 18-19, money stock eral funds rate became more gradual. The growth estimated for the second quarter was weekly average Federal funds rate had risen to rapid. The Committee voted to seek somewhat about IOV2 per cent by late July. Subsequently, slower growth in the aggregates over the months data indicated a further slowing in monetary ahead and underscored the need for monetary growth and RPD’s moved within their specified restraint by adopting a range for Mx growth in range. June and July with a midpoint that was below The Desk sought no further intensification of the expansion then projected. The ranges pressures in the weeks leading up to the August adopted for M2 and RPD’s implied similar re­ 21 meeting. Shortly after this meeting, the straint. New estimates soon indicated another Manager raised his sights for the Federal funds wave of excessive Mx growth. On July 6, the rate a shade in view of the emphasis placed by Committee agreed to raise the upper constraint the Committee on limiting the rapid growth in on the Federal funds rate from the limit adopted RPD’s. A further deceleration of demand de­ at the June meeting. posit growth helped bring RPD’s within their The FOMC was willing to see a further in­ 11 to 13 per cent range for August and Sep­ tensification of reserve pressures as the summer tember combined, and the Desk sought no ad­ progressed. At its July 17 meeting, the Com­ ditional pressure on bank reserve positions. The mittee again voted for slower growth in the Federal funds rate stabilized at around 10% per aggregates and raised the upper constraint on cent in the weeks leading up to the September the Federal funds rate from the limit agreed 18 meeting. upon earlier that month. The members agreed The move toward further restraint initiated at on August 3 that the funds rate could rise even the end of June attracted widespread attention. further if necessary. By the time of the August Bank avoidance of both Federal funds and dis­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1973 347 count window borrowings over the quarterly given expectations that banks would abstain statement publishing date led to a sharp conver­ from buying new issues and/or liquidate hold­ gence of reserve demands in the 2 days before ings as monetary restraint persisted. The climb the July 4 holiday on Wednesday. The Desk in long-term rates intensified with the approach pumped in $3,314 million of reserves in the 2 of the August refunding. The Treasury an­ days, but the cumulative deficiencies of the nounced on July 25 that it would auction $2 banks proved too large to head off the extraor­ billion of additional 4-year, 7% per cent notes dinary strain. The average Federal funds rate and $500 million of 20-year, IVi per cent bonds, climbed sharply to 10.21 per cent from 8.59 the latter using the uniform-price technique per cent the week before, and trading took place adopted at the start of the year. The remaining at rates as high as 15 per cent for the first time. $2 billion financing need would be met through This episode complicated operations for a an auction of 35-day tax-anticipation bills. number of weeks. Expectations that the System Dealers soon became concerned that investor would continue and possibly intensify restraint demand would be insufficient to permit them to led to a concentration of demands for funds at distribute issues before they had to be financed the start of a statement week. This reflected a at burdensome costs. Enlarged demands by continuation of the pattern that had emerged Federal agencies, as they moved to preserve with the onset of restraint; only the pressures mortgage flows, added to the gloomy outlook. in the money market were often more difficult A precipitous drop in note and bond prices to temper given the enlarged demands for non­ emerged prior to the auctions, which were borrowed reserves. scheduled for July 31 and August 1, amid The securities markets. There was a sharp large-scale short selling. Desk purchases of in­ and dramatic response in the securities markets termediate-term coupon issues on behalf of to the implementation of a clearly more restric­ Government investment accounts helped impart tive monetary policy. The Board reaffirmed the some stability to the market. Even so, only $2.1 System’s intent on July 2 by approving requests billion of acceptable bids were received for the by all Federal Reserve Banks to raise their $2 billion of 7% per cent notes, and these came discount rates to 7 per cent and by announcing under heavy selling pressure shortly thereafter. the adoption of a Vi per cent increase in reserve Public bids for the 20-year bonds at the lowest requirements on the bulk of demand deposits acceptable price amounted to only $260 million. at member banks. Market participants soon The tax-anticipation bills sold on August 8 were began to project that tightening would continue issued at a substantial average rate of 10.03 per indefinitely. The upward pressure spread cent—on a bond equivalent basis—even though quickly from the Federal funds rate to dealer banks were permitted to pay for 50 per cent financing costs and Treasury bill rates. The rate of subscription by crediting Treasury tax and on the 3-month issue rose from about IVx per loan accounts. cent to a high of 9.05 per cent on August 14, The decline in bond prices ended quite sud­ the day that another Vi point increase in the denly. Evidence of a deceleration in money discount rate, to a record IVi per cent, was stock growth during July and August convinced announced. The bill rate subsequently fell by many participants that the next move in System 60 basis points but rose again to around the same policy would be in the direction of less restraint. peak after the Board’s announcement in early Thus, despite the slight edging up of the daily September of an increase in the marginal reserve level of Federal funds trading after the August requirement on large CD’s to 11 per cent. Ag­ FOMC meeting, securities dealers began to gressive competition continued in the CD mar­ cover some short positions in notes and bonds. ket, raising yields on 90-day CD’s by 63 basis An explosive rally emerged in the debt markets points to around 11 per cent over the same as it became apparent how short aggregate trad­ interval. ing positions had become and as investors The influence of higher short-term rates sought to capture the prevailing yields on se­ spilled over to the markets for long-term debt, curities rather than risk missing a turn in rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN □ MAY 1974 Prices rose sharply over the rest of August and tee agreed to forestall a tightening of money in September so that, by the time of the Sep­ market conditions because of current uncertain­ tember FOMC meeting, the increase in yields ties with respect to the economic outlook and on notes and bonds that had occurred over the the sensitive state of market psychology. At its summer had been largely eradicated. The index final meeting of the year, on December 17-18, of Government securities maturing in 10 years the FOMC moved further in the direction of less averaged 7.09 per cent, close to its level of restraint and decided to seek some easing of mid-July and well below its August 8 peak of bank reserve and money market conditions, 7.54 per cent. Recently offered Aaa-rated utility provided that the aggregates did not appear to issues were yielding 8.03 per cent, reflecting be growing excessively. a decline of around 27 basis points in 6 weeks. The Manager’s response. After the Sep­ The Bond Buyer’s index of yields on 20-year tember meeting, estimated money stock growth municipal bonds had fallen over 50 basis points over the 2 months ending in October fell below to 5.05 per cent, merely 5 basis points above an acceptable range and the Manager moved to its lowest level of the year. provide reserves more readily. While the Man­ ager was careful in light of the FOMC’s desire to avoid generating market impressions that MID-SEPTEMBER-DECEMBER monetary restraint was being relaxed signifi­ The Committee’s instructions. Starting cantly, the securities markets responded dra­ with its September 18 meeting, the FOMC voted matically to the first sign that the System was to seek moderate growth in the aggregates over changing its reserve and money market objec­ the months ahead. The cumulative increases in tives. interest rates over the year and the sharp decel­ Three-month bill rates plummeted from 8.68 eration of money stock growth in the late sum­ per cent on the day of the meeting to 6.96 per mer led the staff to reduce its estimates of the cent by September 27. At the same time, a demands for money that were likely to emerge downward shift in member bank borrowings and in the months ahead. It appeared that a delay enlarged demands for Federal funds by major in a move toward easing could require a much banks seeking to avoid issuing CD’s until rates more substantial move at a later time to achieve fell further kept the money market under con­ moderate Mx growth. At its September 18 and stant pressure. The Manager asked for guidance October 16 meetings, the FOMC raised the in resolving the inconsistency between the indi­ upper ends of the 2-month tolerance ranges for cated response to the aggregates, which were the aggregates a bit above those suggested by expected to fall below the FOMC’s objectives the staff, expecting that reserves would be pro­ for the September and October period, and the vided more readily as the period unfolded and state of the credit markets. The Committee that the Federal funds rate could decline. agreed at a telephone meeting on October 2 that In fact, Mx became considerably stronger in money market conditions should be allowed to the closing months of the year, and it appeared ease somewhat if this easing did not threaten that growth in previous months would be revised to reinvigorate the sharp rally in the markets upward. While inflation remained a disturbing for short-term securities. While the Manager problem, the pace of real economic activity became more aggressive in his efforts to supply decelerated and it appeared that the curtailment nonborrowed reserves, the money market re­ of oil supplies from abroad could have signifi­ mained under pressure and the Federal funds cantly adverse effects. The Committee at its rate showed no tendency to move below 10% November 20 meeting retained the objective of per cent. At the same time, Mx growth weak­ moderate growth in the long run. growth ened further and the other measures moved well continued to strengthen, and by the end of below their specified ranges. On October 10, November appeared to be moving above an the Committee held a second telephone meeting acceptable range for the last 2 months of the and directed the Manager to supply reserves year. On November 30, however, the Commit­ consistent with some easing of money market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1973 349 conditions beyond that indicated 8 days earlier. somewhat more emphasis on money market The Desk redoubled its efforts to achieve this conditions until its next meeting and directed and, following substantial additions to nonbor­ the Manager to seek some easing of these con­ rowed reserves, the funds rate had declined to ditions provided that the aggregates did not 10 per cent by the October FOMC meeting. appear to be growing excessively. Accordingly, In the weeks after the October 16 meeting, the Desk moved promptly after the meeting to estimates of money stock growth initially re­ provide nonborrowed reserves at a more gener­ mained within the range indicated as acceptable ous pace. But the process was delayed again for the 2 months ending in November while just before the year-end when estimates of the bank willingness to permit CD’s to run down aggregates turned out stronger than anticipated pulled RPD’s below their range. The Account and it appeared that Mx was moving above an Manager retained a somewhat more generous acceptable range for December and January approach to the provision of nonborrowed re­ combined. The Manager was providing reserves serves and began permitting doubts about re­ consistent with Federal funds trading in a 93A serve availability to be resolved on the side of to 10 per cent range as the year drew to a close. a bit less tautness, with the Federal funds rate While this was below the level in November, settling a shade under 10 per cent. This process the faster growth in the aggregates, with Mx was halted shortly thereafter when estimates of increasing at a IV2 per cent rate over the fourth growth strengthened, reaching 8 per cent quarter, had forestalled the emergence of a more over the 2 months. While the Desk adopted a significant easing in conditions of reserve avail­ more grudging approach and the Federal funds ability. rate rose to around 103A per cent, efforts to The securities markets. There was an restrict reserve supplies more noticeably were ebullient reaction in the securities markets in tempered by the Treasury refunding that was late September when participants sensed the in process and by the unsettled conditions that System’s response to the deceleration of money developed in the securities markets. stock growth to a 0.3 per cent rate over the The surge in Mx growth during November and third quarter. A spectacular decline in short­ the uncertainties attributable to the oil shortage term rates occurred shortly after the September led the staff to conclude that demands for Mx meeting when the Desk purchased a small vol­ in the near term could increase, while the eco­ ume of Treasury bills at a time when the money nomic outlook became more uncertain. The market was not particularly firm in comparison Committee established tolerance ranges for the with previous weeks. Banks reduced offering aggregates over the 2 months ending in De­ rates on CD’s by over 2 percentage points to cember that were likely to be consistent with around 8V2 per cent between September and the little change in money market conditions. Soon end of October. Dealers in prime commercial after the meeting, however, incoming data sug­ paper reacted similarly, with rates on 90- to gested that growth in Mx and also M2 might 119-day paper falling to 8% per cent from close be stronger than acceptable over the 2 months. to 11 per cent. Treasury bill rates plummeted, While these conditions ordinarily would have with the 3-month issue dropping by about 2 per­ called for limiting reserve availability, thus centage points to around 7 per cent. Later, generating a rise in the Federal funds rate, the when Mi growth accelerated and the funds Manager sought to maintain prevailing money rate failed to decline significantly, the reaction market conditions until the December meeting was almost as sharp. following the Committee’s concurrence on No­ The Treasury bill market was especially vol­ vember 30 with the Chairman’s recom­ atile toward the end of the year. Expectations mendation of this course of action. that the System would ease to ward off an At its December 17-18 meeting, the Com­ economic slowdown generated by fuel scarcities mittee concluded that the economic situation were dampened by signs of accelerated Mx and outlook called for a modest easing of mon­ growth. Increased bill sales by foreign central etary policy. The FOMC also decided to place banks, owing to the improved international po­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN □ MAY 1974 sition of the dollar, added to market caution. ury auctioned $3.8 billion of issues to replace A significant increase in rates occurred after the maturing securities, and the package included Treasury announced, in early November, the $1.5 billion of 25%-month notes, $2 billion of sale of bills to raise new cash. In all, the 6-year notes, and $300 million of additional IV2 Treasury raised an additional $8 billion of cash per cent bonds due in 1993. Coupon rates of in the bill market in the last 3 months of the 7 per cent were established for both notes. The year, as its needs were enlarged by redemptions October 30 auction of the 6-year notes at an of nonmarketable issues held by foreign central average yield of 6.82 per cent was disappoint­ banks. The central banks also liquidated a sub­ ing, and yields adjusted higher before the two stantial volume of marketable coupon issues auctions held on the next day. The 25%-month toward the end of the year as the dollar im­ notes were sold at 6.91 per cent, and the long­ proved against other currencies. By the year- term bonds were awarded at 7.35 per cent with end, bill rates were still 40 to 50 basis points all bonds awarded at the price of the lowest above the low points reached in late September accepted tenders. and early October. Short-term bill rates re­ Dealers were unable to reduce inventories mained above rates on longer maturities, with significantly in the weeks that followed, and the 3-month issue bid at 7.45 per cent and the coupon prices declined quite steadily. The 1-year issue at 6.86 per cent. The continued rounds of price increases expected to result from moderation of business credit demands at banks, potential fuel scarcities deepened concern over reflecting in part a shift of borrowers to the inflation and had particular impact in the long­ commercial paper market, led to modest CD term markets. By the last week in December, growth late in the year. Offering rates retraced the yield on 10-year Government securities part of the earlier declines with the 90-day reached 6.87 per cent, little changed from its maturity closing the year at 9Vi per cent. early-October level. Corporate bond yields ex­ The long-term debt markets were also highly perienced more pronounced increases, reflecting responsive to expectations of a change in Sys­ expectations of enlarged financing demands in tem policy and to changing assessments about 1974. The yield on recently offered Aaa-rated prospects for the economy. Yields declined in utility issues rose to 8.10 per cent, 20 basis late September and early October. The terms points below its August high. Stronger bank of the Treasury’s refunding, announced on Oc­ interest in municipal issues benefited the taxtober 24, were greeted favorably, but the exempt market, and the Bond Buyer’s index emerging pressures on short-term rates soon stood at 5.16 per cent, 43 basis points below began to dampen market sentiment. The Treas­ its August high. □ 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 MEETING HELD ON FEBRUARY 20, 1974 Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services— which had grown at an annual rate of about 1.5 per cent in the fourth quarter of 1973— was declining in the first quarter of this year, mainly because of the oil situation, and that the GNP implicit deflator was continuing to rise rapidly. Staff projections suggested that weakness in economic activity would continue in the second quarter and that the rise in prices would remain rapid. In January industrial production declined appreciably further, as output of automobiles and residential and commercial use of elec­ tricity and gas continued to decline while output of business equipment and other major categories of goods changed little; the January level was below the average in the fourth quarter of 1973. Nonfarm payroll employment fell sharply— reflecting sizable re­ ductions in durable goods manufacturing and in contract con­ struction— and the average workweek in manufacturing also de­ clined considerably. The unemployment rate rose from 4.8 to 5.2 per cent. The dollar volume of retail sales recovered, following a sizable decline in December; although the January level was somewhat above the fourth-quarter average, the gain appeared to be less than the rise in prices of consumer goods. Wholesale prices of industrial commodities continued to rise at a rapid pace in January; increases again were large for fuels and were substantial and widespread among other commodity groups. Wholesale prices of farm and food products also rose sharply, with increases especially large for prices of livestock, meats, and grains. In December the consumer price index had risen appreciably further, although the increase was tempered by declines in retail prices of meats and used cars. The index of average hourly earnings of production workers on nonfarm payrolls also had continued to advance in recent months, but at a less rapid pace than prices. The latest staff projections for the first half of 1974 suggested 351 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN □ MAY 1974 that nominal GNP would expand somewhat less, and that real GNP would decline somewhat more, than had been anticipated at the time of the Committee’s meeting in mid-January. Declines were concentrated in real consumption expenditures and residential con­ struction activity, both of which were now projected to be weaker than had been expected 4 weeks earlier. As before, it was antici­ pated 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. Business inventory investment was projected to be moderately below the high rate experienced in the fourth quarter of 1973, when stocks of large automobiles accumulated as sales fell off. In foreign exchange markets the strong appreciation of the dollar that had begun in October gave way to depreciation near the end of January, reflecting in part the removal of U.S. controls on outflows of capital, relaxation of some foreign restraints on inflows of capital, and declines in U.S. interest rates relative to those abroad. In December U.S. merchandise exports had remained strong while imports had dropped from the very high level in November; the trade surplus had increased sharply both in De­ cember and in the fourth quarter as a whole. Growth in total loans and investments at U.S. commercial banks accelerated in January, reflecting increases in most categories of loans and in banks’ holdings of both Treasury and other securities. Expansion in business loans, which had been moderate in the fourth quarter of 1973, was especially strong in January, and business borrowing in the commercial paper market also was heavy. Be­ tween late January and mid-February, most banks lowered the prime rate applicable to large corporations from 9% to 9 per cent. The narrowly defined money stock (Mi)1— which had grown at a rapid pace in the last 2 months of 1973— declined in January; weekly data suggested that Mx was expanding in early February. Inflows of consumer-type time and savings deposits increased substantially; as a result, growth in the more broadly defined money stock (M2)2 remained near the moderate rate in December. The outstanding volume of large-denomination CD’s rose appreciably 1 Private demand deposits plus currency in circulation. 2 Mi plus commercial bank time and savings deposits other than large-denomi­ nation CD’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 353 in January and, along with a large increase in U.S. Government deposits, contributed to an acceleration of growth in the bank credit proxy.3 Net deposit inflows at savings and loan associations in January remained near the improved rate in the final months of 1973, but inflows to mutual savings banks fell off again. Growth in the measure of the money stock that includes such deposits (M3)4— like growth in M2— continued near the moderate rate in December. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages declined between early January and early February. On January 30 the Treasury announced that in early February it would auction up to $4.05 billion of notes and bonds to refund the bulk of $4.5 billion of publicly held notes and bonds maturing on February 15; the remainder would be retired by drawing down cash balances. In auctions on February 5,6, and 7, respectively, the Treasury sold $1.50 billion of 7-year, 7 per cent notes at an average price to yield 6.95 per cent; $2.25 billion of 3lA-year, 6% per cent notes at an average price to yield 6.70 per cent; and $300 million of 19%-year, 7% per cent bonds at a price to yield 7.46 per cent to maturity. System open market operations since the January 21-22 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead, while taking account of the Treasury’s mid-February refunding and of international and domestic financial market developments. Soon after the meeting, incoming data suggested that in the January-February period the monetary aggregates would grow at rates well within the ranges of tolerance specified by the Committee; therefore, operations were directed toward a slight easing in bank reserve and money market conditions, in accordance with the Committee’s instructions that such easing would be sought promptly if the data then available did not suggest that the aggregates were growing rapidly. Around the beginning of February available data suggested that 3Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 4M2 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

354 FEDERAL RESERVE BULLETIN □ MAY 1974 growth both in reserves available to support private nonbank deposits (RPD’s) and in M1 might fall below the specified ranges of tolerance. Therefore, the System sought some further easing in bank reserve and money market conditions. In the 2 weeks preceding this meeting the Federal funds rate was close to 9 per cent, compared with around 9% per cent in the days before the January meeting; member bank borrowings averaged around $1,140 million in the 4 weeks ending February 13, little changed from the average in the preceding 5 weeks. Data that became available a few days before this meeting indicated that Mx was expanding rapidly in early February and that it was likely to grow in the January-February period at a rate within the specified range; however, growth in RPD’s still appeared likely to fall short of the specified range. Short-term market interest rates had fallen appreciably since the Committee’s meeting on January 21-22, in large part because money market conditions had eased, but also, apparently, because market participants expected them to ease further. On the day before this meeting the market rate on 3-month Treasury bills was 7.03 per cent, down from 7.97 per cent on the day before the January meeting. Yields on longer-term securities also had declined somewhat, despite a large volume of financing in the capital markets and the sizable Treasury refunding. The over-all volume of new public offerings of corporate and State and local government bonds rose substantially in January, and an equally large volume was in prospect for February. The Committee agreed that the economic situation and outlook continued to call for moderate growth in monetary aggregates over the longer run. Staff analysis suggested that, because of the lower projected rate of expansion in nominal GNP, the demand for money was likely to expand less over the first half of 1974 than had been expected earlier. In the February-March period, however, M± was expected to grow relatively rapidly, assuming little or no change in money market conditions; in February in particular, monetary expansion was expected to be spurred temporarily by an extremely sharp reduction in Treasury deposits. Relatively rapid Mx growth over the February-March period appeared consistent with the Committee’s longer-run objectives for the monetary aggregates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 355 because it would follow the sizable decrease of January and because it seemed likely to be temporary. In the event that money market conditions did remain about unchanged in the period immediately ahead, little or no further decline appeared likely in short-term market interest rates in general, and— to the extent that recent declines had been based on expectations of prompt further easing in money market conditions— rates could move up again. Over the February-March period, according to the staff analysis, net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions were expected to remain sizable— with the effects of the recent declines in short-term market interest rates bolstered, perhaps, by increases in precautionary balances. Reflecting the availability of such funds, banks were not likely to issue substantial amounts of large-denomination CD’s, even though business loan expansion might not moderate very much from the fast pace of January. Taking account of the staff analysis, the Committee concluded that progress toward its longer-run objective of moderate monetary growth could be achieved with rates of expansion in the aggregates over the February-March period that were temporarily above those desired for the longer term. For the February-March period it adopted ranges of tolerance of 6V2 to 9V2 per cent and 9xh to 12^ per cent for the annual rates of growth in Mx and M2, respectively. The members agreed that rates of growth within those ranges would be likely to involve RPD growth during the February-March period at an annual rate within a 3V2 to 6V2 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 8V4 per cent to as high as 9V2 per cent, if necessary, in the course of operations. The members also agreed that, in the conduct of operations, account should be taken 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 incon­ sistencies appeared to be developing among the Committee’s various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN □ MAY 1974 The information reviewed at this meeting suggests that real output of goods and services is declining in the current quarter, mainly because of the oil situation, and that prices are continuing to rise rapidly. In January industrial production declined again, nonfarm payroll employment dropped, and the unemployment rate rose above 5 per cent. Prices of both farm products and industrial commodities increased very sharply. Wage rates have continued to rise substan­ tially in recent months, although not so sharply as prices. After having appreciated for several months, the dollar has declined somewhat on the average against foreign currencies in recent weeks. U.S. controls on capital outflows were removed at the end of January, and several foreign countries have relaxed controls on capital inflows. The U.S. trade surplus rose sharply in December and in the fourth quarter as a whole. The narrowly defined money stock, after increasing substantially in the last 2 months of 1973, declined in January; most recently, however, it has appeared to strengthen. Broader measures of the money stock continued to rise in January, as net inflows of consumer-type time deposits remained relatively strong. Expansion in business loans and in total bank credit accelerated, and banks stepped up issuance of large-denomination CD’s. Since mid-Jan­ uary, short-term market interest rates have fallen appreciably, and long-term rates have declined somewhat. 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 declines in production and employment that are being induced in large part by the oil situation, and maintaining equilibrium in the country’s balance of payments. To implement this policy, while taking account of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Daane, Holland, Mayo, and Mitchell. Votes against this action: Messrs. Bucher, Francis, Morris, and Sheehan. The members dissenting from this action did so for different reasons. Messrs. Bucher, Morris, and Sheehan expressed concern about current and prospective weakness in aggregate economic demands. In order to encourage further declines in short- and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 357 long-term interest rates, including mortgage rates, they favored somewhat higher ranges of tolerance for the monetary aggregates and a lower range for the Federal funds rate than the Committee had agreed would be consistent with the directive. Mr. Francis expressed the view that the over-all economic situation was stronger than suggested by the staff projections and that inflation remained the major long-term economic problem. He dissented because he thought the policy adopted by the Committee would permit the money stock to grow at a faster rate than was consistent with progress in dealing with inflation. Subsequent to the meeting it appeared that in the February-March period growth in the monetary aggregates would equal or exceed the upper limits of the short-run ranges of tolerance specified by the Committee. In view of that behavior, the System ordinarily would have become more restrictive in its reserve-supplying opera­ tions, expecting that the weekly average Federal funds rate would rise toward the upper limit of its range of tolerance— namely, 9Vi per cent. On March 1, however, a majority of the available members5 concurred in a recommendation by the Chairman that in light of the recent marked rise in market interest rates and the highly sensitive state of financial markets, the System conduct reserve operations in a manner expected to be consistent with maintenance of the funds rate at the prevailing level of about 9 per cent, for the time being. One week later, it appeared that strong growth in the monetary aggregates was persisting. On March 11, in view of that behavior, the available members— with the exceptions of Messrs. Bucher and Sheehan— concurred in a recommendation by the Chairman that the System return to conducting reserve operations in a manner consistent with the full range of tolerance for the Federal funds rate agreed upon at the February meeting. However, in light of recent increases in market interest rates and the sensitive state of financial markets, the Account Manager would be expected to proceed very cautiously in operations thought likely to be consistent with a rise in the weekly average funds rate above 9 per cent. 5 The members and alternate members of the Committee newly elected by the Federal Reserve Banks took office on March 1 for the term of 1 year commencing on that date. Mr. Coldwell, responding as alternate for Mr. Kimbrel, did not concur in the Chairman’s recommendation. * * * * * 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 RULES REGARDING DELEGATION OF AUTHORITY proposal as to which the Board has not expressed its view. The Board of Governors has amended its Rules (v) considerations relating to the convenience Regarding Delegation of Authority to expand the and needs of the communities to be served are Reserve Banks’ delegated authority to approve consistent with or lend weight toward approval of one-bank holding company formations, bank the application. holding company formations involving more than (vi) in the event any debt is incurred by the one bank, bank acquisitions by existing bank holding company to purchase shares of any bank holding companies, and bank mergers. involved in the proposal: (a) an agreed plan for amortization of the debt AMENDMENT within a reasonable time exists, such period nor­ mally not exceeding 12 years. Effective with respect to applications received (b) the interest rate on any loan to purchase the by the Reserve Banks after April 4, 1974 sections bank shares will be comparable with other stock 265.2(f)(22), (24) and (28) are amended and sec­ collateral loans by the lender to persons of com­ tion 265.2(f)(30) is added to read as follows: parable credit standing. (c) no compensating balances, specifically at­ SECTION 265.2—SPECIFIC FUNCTIONS tributable to the loan, will be deposited in the DELEGATED TO BOARD EMPLOYEES AND lending institution and the amount of any corre­ FEDERAL RESERVE BANKS spondent account which the proposed subsidiary * * * * * bank will maintain with the lending institution should not exceed the amount necessary to com­ (f) Each Federal Reserve Bank is authorized, pensate the lending bank for correspondent ser­ as to member banks or other indicated organi­ vices rendered by it to the proposed subsidiary zations headquartered in its district, or under sub- bank(s). paragraph (25) of this paragraph as to its officers: (vii) the Reserve Bank determines that the man­ agerial and financial resources, including the eq­ * * * * * uity to debt relationships, of Applicant, its existing subsidiaries, and any proposed subsidiary bank, (22) Under the provisions of section 3(a)(1) of are adequate, or will be adequate within a reas­ the Bank Holding Company Act (12 U.S.C. onable period of time after consummation of the 1842), to approve the formation of a bank holding proposal, and any debt service requirements to company through the acquisition by a company which the holding company may be subject are of a controlling interest in the voting shares of such as to enable it to maintain the capital ade­ one or more banks, if all of the following condi­ quacy of any proposed subsidiary bank in the tions are met: foreseeable future. (i) no member of the Board has indicated an (viii) if Applicant or any of Applicant’s existing objection prior to the Reserve Bank’s action. or proposed nonbanking subsidiaries compete in (ii) all relevant departments of the Reserve Bank the same geographic and product market as any recommended approval. proposed subsidiary bank, the resulting organi­ (iii) no substantive objection to the proposal has zation will control no more than 10 per cent of been made by a bank supervisory authority, the that product or service line after consummation United States Department of Justice, or a member of the proposal. of the public. (ix) total nonbank gross revenues of Applicant (iv) no significant policy issue is raised by the and its subsidiaries do not exceed 20 per cent of Digitized for FRASER3 58 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 359 total operating income of the proposed banking consistent with or lend weight toward approval of subsidiaries. the application. (x) if Applicant engages, or is to engage, in (vi) in the event any debt is incurred by the nonbanking activities requiring the Board’s ap­ holding company to purchase shares of any bank proval under section 4(c)(8) of the Act, the Re­ involved in the proposal: serve Bank must also have delegated authority to (a) an agreed plan for amortization of the debt approve the section 4(c)(8) activities. within a reasonable time exists, such period nor­ (xi) if the proposal involves the acquisition of mally not exceeding 12 years. the controlling stock of only one bank, and any (b) the interest rate on any loan to purchase the debt is incurred by the holding company to pur­ bank shares will be comparable with other stock chase shares of the bank, the amount of the loan collateral loans by the lender to persons of com­ does not exceed 75 per cent of the purchase price parable credit standing. of the shares of the proposed subsidiary bank. (c) no compensating balances, specifically at­ (xii) if the proposal involves the acquisition of tributable to the loan, will be deposited in the the controlling stock of more than one bank, the lending institution and the amount of any corre­ following additional conditions must be met: spondent account which the proposed subsidiary (a) in the event any debt is incurred by the bank will maintain with the lending institution holding company to purchase shares of any should not exceed the amount necessary to com­ proposed subsidiary bank(s), the total amount of pensate the lending bank for correspondent ser­ the debt does not exceed 20 per cent of the equity vices rendered by it to the proposed subsidiary capital accounts of the holding company. bank. (b) the Applicant will control no more than 15 (vii) the Reserve Bank determines that the man­ per cent of total deposits in commercial banks in agerial and financial resources, including the eq­ the State. uity to debt relationships, of Applicant, its existing (xiii) neither Applicant nor the bank(s) to be subsidiaries, and any proposed subsidiary bank, acquired has entered into or proposes to enter into are adequate, or will be adequate within a reas­ any agreement with any director, officer, employee onable period of time after consummation of the or shareholder of the bank(s) that contains any proposal, and any debt service requirements to condition that limits or restricts in any manner the which the holding company may be subject are right of such persons to compete with Applicant such as to enable it to maintain the capital ade­ or any of Applicant’s existing or proposed subsid­ quacy of any existing or proposed subsidiary bank iaries. in the foreseeable future. (viii) if Applicant or any of Applicant’s existing ^ ^ or proposed nonbanking subsidiaries compete in the same geographic and product market as any (24) Under the provisions of section 3(a)(3) of proposed subsidiary, the resulting organization the Bank Holding Company Act (12 U.S.C. will not control more than 10 per cent of that 1842), to approve the acquisition by a bank hold­ product or service line after consummation of the ing company of a controlling interest in the voting proposal. shares of an additional bank, if all of the following (ix) total nonbank gross revenues of Applicant conditions are met: and its subsidiaries do not exceed 20 per cent of (i) no member of the Board has indicated an total operating income of the company’s existing objection prior to the Reserve Bank’s action. or proposed bank subsidiaries. (ii) all relevant departments of the Reserve Bank (x) if Applicant engages, or is to engage, in recommend approval. nonbanking activities requiring the Board’s ap­ (iii) no substantive objection to the proposal has proval under section 4(c)(8) of the Act, the Re­ been made by a bank supervisory authority, the serve Bank must also have delegated authority to United States Department of Justice, or a member approve the section 4(c)(8) activities. of the public. (xi) in the event any debt is incurred by Appli­ (iv) no significant policy issue is raised by the cant to purchase shares of the bank, the resulting proposal as to which the Board has not expressed total acquisition debt of the holding company will its view. not exceed 20 per cent of the company’s equity (v) considerations relating to the convenience capital accounts after consummation of the pro­ and needs of the communities to be served are posal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN □ MAY 1974 (xii) Applicant is not one of the dominant bank­ (iv) no significant policy issue is raised by the ing organizations in the State, and, unless the proposal as to which the Board has not expressed proposed subsidiary is a proposed new bank, Ap­ its view. plicant will control no more than 15 per cent of (v) if the banks do not have offices in the same the total deposi s in commercial banks in the State market, the bank to be acquired has no more than after consummation of the proposal. $25 million in total deposits or controls no more (xiii) if the bank to be acquired is an existing than 15 per cent of the total deposits2 in commer­ bank and if no banking offices of Applicant’s cial banks in the market. existing subsidiary bank are located in the same (vi) if the banks compete in the same banking market as the proposed subsidiary, the proposed market, the resulting bank will control no more subsidiary has no more than $25 million in total than 10 per cent of total deposits3 in commercial deposits or controls no more than 15 per cent of banks in the market. deposits in commercial banks in the market. (vii) neither of the merging or consolidating (xiv) if the bank to be acquired is an existing banks is a dominant banking organization in the bank and if any of Applicant’s existing subsidiary State and the resulting institution will control no banks compete in the same market as the proposed more than 15 per cent of the total deposits in subsidiary, Applicant will control no more than commercial banks in the State after consummation 10 per cent of total deposits in commercial banks of the proposal.4 in the market after consummation. (viii) the Reserve Bank determines that the (xv) if the bank to be acquired is a proposed managerial and financial resources, including the new bank, bank subsidiaries of Applicant will not equity capital accounts of the resulting bank, are hold in the aggregate more than 20 per cent of adequate, or will be adequate within a reasonable the total deposits in commercial banks in the period of time after the proposal is consummated. relevant market area and Applicant will not be one (ix) considerations relating to the convenience of the dominant banking organizations in the State. and needs of the community to be served are (xvi) Applicant has a proven record of furnish­ consistent with, or lend weight toward, approval ing to its subsidiaries, when needed, special ser­ of the application. vices, management, capital funds and general (x) no bank involved in this proposal has entered guidance. into or proposes to enter into any agreement with (xvii) neither Applicant nor the bank to be any director, officer, employee or shareholder of acquired has entered into or proposes to enter into either bank that contains any condition that limits any agreement with any director, officer, employee or restricts in any manner the right of such persons or shareholder of the bank that contains any con­ to compete with the resulting institution. dition that limits or restricts in any manner the right of such persons to compete with Applicant * * * * * or any of Applicant’s existing or proposed subsid­ iaries. (30) Under the provisions of section 3(a)(5) of the Bank Holding Company Act (12 U.S.C. * * * * * 1842), to approve the merger or consolidation of a bank holding company with any other bank (28) Under the provisions of section 18(c) of holding company, if all of the following conditions the Federal Deposit Insurance Act (12 U.S.C. are met: 1828(c)), to approve a merger, consolidation, ac­ (i) no member of the Board has indicated an quisition of assets or assumption of liabilities, objection prior to the Reserve Bank’s action. where the resulting bank is a State member bank, (ii) all relevant departments of the Reserve Bank if all of the following conditions are met: (i) no member of the Board has indicated an 2 If either of the proponent banks is a subsidiary of a holding company and the parent company has another bank subsidiary objection prior to the Reserve Bank’s action. operating in the market of the bank to be acquired, deposits (ii) all relevant departments of the Reserve Bank of such offices should be included in the computation of market recommended approval. shares. 3See footnote 2, above. (iii) no substantive objection to the proposal has 4 If either of the proponent banks is a subsidiary of a holding been made by a bank supervisory authority, the company, the deposits of the other subsidiary banks of the holding company should be included in determining whether United States Department of Justice, or a member the resulting institution will control more than 15 per cent of of the public. the total deposits in commercial banks in the State. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 361 recommended approval. (ix) if the merging or consolidating bank holding (iii) no substantive objection to the proposal has companies do not have subsidiary banking offices been made by a bank supervisory authority, the in the same market, the resulting or surviving bank United States Department of Justice, or a member holding company will not acquire a subsidiary of the public. bank with more than $25 million in deposits or (iv) no significant policy issue is raised by the with more than 15 per cent of the total deposits proposal as to which the Board has not expressed in commercial banks in the market. its view. (x) if any subsidiary bank(s) of either of the (v) considerations relating to the convenience merging or consolidating companies competes in and needs of the communities to be served are the same market as any subsidiary bank(s) of the consistent with or lend weight toward approval of other merging or consolidating company, the re­ the application. sulting or surviving company will control no more (vi) in the event any debt is incurred by the than 10 per cent of total deposits in commercial resulting or surviving holding company to effect banks in the market after consummation of the the merger or consolidation: proposal. (a) an agreed plan for amortization of the debt (xi) neither merging or consolidating company within a reasonable time exists, such period nor­ is one of the dominant banking organizations in mally not exceeding 12 years. the State, and the resulting or surviving company (b) the interest rate on any loan involved will will control no more than 15 per cent of total be comparable with other stock collateral loans by deposits in commercial banks in the State after the lender to borrowers of comparable credit consummation of the proposal. standing. (xii) total nonbank gross revenues of the merg­ (c) no compensating balances, specifically at­ ing or consolidating companies and their subsidi­ tributable to the loan, will be deposited in the aries do not exceed 20 per cent of the total operat­ lending institution and the amount of any corre­ ing income of the merging or consolidating com­ spondent account which the subsidiary banks of panies’ bank subsidiaries. the resulting or surviving company will maintain (xiii) if either of the merging or consolidating with the lending institution should not exceed the companies engages, or is to engage, in nonbanking amount necessary to compensate the lending bank activities requiring the Board’s approval under for correspondent services rendered by it to the section 4(c)(8) of the Act, the Reserve Bank must depositing bank(s). also have delegated authority to approve the sec­ (d) the total acquisition debt of the resulting or tion 4(c)(8) activities. surviving company will not exceed 20 per cent (xiv) Applicant has a proven record of furnish­ of such company’s equity capital accounts after ing to its subsidiaries, when needed, special ser­ consummation of the proposal. vices, management, capital funds and general (vii) the Reserve Bank determines that the man­ guidance. agerial and financial resources, including the eq­ (xv) neither bank holding company involved in uity to debt relationships, of the merging or con­ this proposal nor any of the subsidiary banks of solidating companies, and their existing subsidi­ either bank holding company involved in this aries, are adequate, or will be adequate within a proposal has entered into or proposes to enter into reasonable period of time after consummation of any agreement with any officer, director, employee the proposal, and any debt service requirements or shareholder of the bank(s) involved in this to which the resulting or surviving company may proposal that contains any condition that limits or be subject are such as to enable it to maintain the restricts in any manner the right of such person capital adequacy of any existing or proposed sub­ to compete with the resulting or surviving com­ sidiary bank in the foreseeable future. pany or any of its existing or porposed subsidi­ (viii) if either of the merging or consolidating aries. companies or any of their subsidiaries compete in the same geographic and product market as the RULES OF ORGANIZATION other merging or consolidating company or any of its subsidiaries, the resulting or surviving orga­ The Board of Governors has reorganized its staff nization will not control more than 10 per cent management functions by establishing two posi­ of that product or service line after consummation tions of Managing Director, one having respon­ of the proposal. sibilities in the areas of research and economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN □ MAY 1974 policy and the other having responsibilities in the Director for Research and Economic Policy, is areas of operations and supervision. These Offices responsible for the planning and coordination of replace the Office of Executive Director. programs in the following general areas: Monetary policy planning and formation, domestic research AMENDMENT TO RULES OF activities, research in international finance, securi­ ties credit regulation, Federal Open Market Com­ ORGANIZATION mittee staff activities, regulatory philosophy re­ Effective November 7, 1973, Section 3 of the garding banking (including domestic and interna­ Rules of Organization of the Board of Governors tional banking structure), and inter-agency activi­ of the Federal Reserve System was amended by ties involving the analysis, planning and coordin­ redesignating paragraphs (b) through (1) as para­ ation of economic policies. graphs (c) through (m) and by changing the intro­ (b) Office of Managing Director for Opera­ ductory language and paragraph (a) to read as tions and Supervision, headed by the Managing follows: Director for Operations and Supervision, is responsible for the planning and coordination of SECTION 3— CENTRAL ORGANIZATION programs in the following general areas: Supervi­ sion and regulation of banks and affiliated organi­ The Board’s central organization consists of the zations, Federal Reserve Bank operations and liai­ members of the Board and the following Offices, son and coordination of Reserve Bank functions Divisions, and officials: and activities, data processing, contingent opera­ (a) Office of Managing Director for Research tions and equal employment opportunity, and per­ and Economic Policy, headed by the Managing sonnel-related activites. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF deposits of $12.5 million,1 is the second largest BANK HOLDING COMPANY ACT of four banks in the Aurora banking market (ap­ proximated by Hamilton County), the relevant AURORA FIRST NATIONAL COMPANY market, controlling approximately 42.5 per cent AURORA, NEBRASKA of the total commercial bank deposits therein. The transaction is merely a reorganization whereby the Order Denying Formation of Bank Holding shareholders who control Bank at the present time Company will control Bank through Applicant. Accordingly, Aurora First National Company, Aurora, Ne­ the Board concludes that consummation of the braska, has applied for the Board’s approval under proposal will not eliminate any existing or poten­ § 3(a)(1) of the Bank Holding Company Act (12 tial competition, increase concentration of banking U.S.C. 1842(a)(1)) of formation of a bank holding resources, or have an adverse effect on other banks company through acquisition of 100 per cent of in the relevant area. the voting shares (less directors’ qualifying shares) In applications to form one-bank holding com­ of The First National Bank in Aurora, Aurora, panies, the Board has considered significant debt Nebraska (“Bank”). in acquiring a bank as an adverse circumstance. Notice of the application, affording opportunity Significant acquisition debt may adversely affect for interested persons to submit comments and the ability of a holding company to meet the views, has been given in accordance with § 3(b) financial needs of its subsidiary bank. The amount of the Act. The time for filing comments and views and maturity of the debt, therefore, must be con­ has expired, and none has been timely received. sidered in relation to the ability of the holding The Board has considered the application in light company to service the debt, and the likelihood of the factors set forth in § 3(c) of the Act (12 that Bank will need capital. The debt factor is then U.S.C. 1842(c)). balanced with other considerations in determining Applicant was recently organized for the pur­ pose of becoming a bank holding company and has engaged in no business activities. Bank, with *A11 banking data are as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 363 whether the acquisition would be in the public (Signed) Chester B. Feldberg, interest. [seal] Secretary of the Board. Upon consummation of this proposal, Applicant would incur acquisition debt in the amount of CONCORDIA BANC-MANAGEMENT, INC., $1,270,000 which is to be repaid with interest over KANSAS CITY, MISSOURI an 11 year period. Applicant proposes to service Order Approving Formation of Bank this debt from dividends amounting to 60 per cent Holding Company of Bank’s projected net income and through a projected cash flow representing a tax benefit. Concordia Banc-Management, Inc., Kansas Although Bank has grown more rapidly than any City, Missouri, has applied for the Board’s ap­ other bank in the market over the last five years, proval under § 3(a)(1) of the Bank Holding Com­ during this period of growth, Bank’s total equity pany Act (12 U.S.C. 1842(a)(1)) of formation of capital as a percentage of its total assets and its a bank holding company through the acquisition total deposits has declined significantly. It is noted of 82.9 per cent of the voting shares of Concordia that this decline in capital occurred when less than Bank, Concordia, Missouri (“Bank”). 20 per cent of Bank’s net income was paid out Notice of the application, affording an opportu­ in dividends. The projected dividends necessary nity for interested persons to submit comments and to retire Applicant’s substantial acquisition debt, views, has been given in accordance with § 3(b) even if accurate, could inhibit growth in Bank’s of the Act. The time for filing comments has capital at a rate compatible with its projected asset expired, and the Board has considered the appli­ growth and thus impair Bank’s financial condition. cation and all comments received in light of the These considerations relating to the financial and factors set forth in § 3(c) of the Act (12 U.S.C. managerial resources of Applicant therefore weigh 1842(c)). heavily against approval of this application. How­ Applicant, a nonoperating corporation with no ever, it should be noted that these factors in no subsidiaries, was organized for the purpose of way reflect adversely upon the present soundness becoming a bank holding company through the of Bank nor upon its future financial condition acquisition of Bank. Bank (deposits of $8.9 mil­ absent consummation of the instant proposal. lion)1 is the fourth largest of 10 banks in the There is no evidence in the record that the relevant market2 and controls approximately 11 banking needs of the community to be served are per cent of the total deposits in commercial banks not presently and adequately being met, nor that in the market. Upon acquisition of Bank, Appli­ approval of this application would result in any cant would control less than 0.1 per cent of total significant public benefits. Considerations relating commercial bank deposits in Missouri. to the convenience and needs of the communities The purpose of the transaction is to effect a to be served thus lend no weight for approval of transfer of the ownership of Bank from individuals the application. to a corporation owned by the same individuals On the basis of all of the circumstances of this with no change in Bank’s management or opera­ case and the facts of record, the Board concludes tions. The principals of Applicant also own 98 per that the acquisition debt involved in this proposal cent of Missouri Banc-Management, Inc., Kansas presents adverse circumstances bearing on the fi­ City, Missouri, a one-bank holding company nancial condition and prospects of Applicant and which owns 89 per cent of Stadium Bank, Kansas Bank. Such circumstances are not outweighed by City, Missouri. Stadium Bank (deposits of $16.6 any procompetitive factors or by circumstances million) is located in the Kansas City SMSA relating to the convenience and needs of the com­ banking market and no meaningful competition munities to be served. Accordingly, approval of exists between the two institutions. Since the the application is not in the public interest and transaction is essentially a reorganization of the the application is denied for the reasons sum­ ownership of Bank, the Board concludes that con­ marized above. summation of the proposal would not have any By order of the Board of Governors, effective adverse effect on existing or potential competition, April 19, 1974. nor would it increase the concentration of banking Voting for this action: Chairman Burns and Governors Brimmer, Bucher, and Holland. Absent and not voting: Gov­ ‘All banking data are as of June 30, 1973. ernors Mitchell, Sheehan, and Wallich. 2The relevant market is approximated by Lafayette County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN □ MAY 1974 resources or have an adverse effect on other banks fits are not directly observable. in the relevant market. Thus, competitive consid­ In our opinion, the leveraging involved in the erations are consistent with approval of the appli­ proposal, one of a number of ventures in which cation. these ownership interests are involved, lessens the The future prospects of Applicant are entirely viability of Bank and thus makes it more vulnera­ dependent upon the financial resources of Bank. ble to local vicissitudes. Should such an eventu­ Applicant proposes to service the debt it assumes ality occur, the quality of local banking resources, incident to this proposal over a 12-year period at some point in the future, might well be ad­ through dividends from Bank, averaging 50 per versely affected. Approval of such a proposal cent of Bank’s projected net income. In light of cannot, therefore, be regarded as being in the the past earnings of Bank and its anticipated public interest. growth, the projected earnings of Bank appear to For these reasons, we would deny the applica­ provide Applicant with the necessary financial tion. flexibility to meet its annual debt servicing re­ quirements and to maintain an adequate capital HASTINGS CITY NATIONAL CO., position for Bank. Therefore, considerations relat­ LINCOLN, NEBRASKA ing to banking factors are consistent with approval Order Approving Formation of Bank of the application. Although consummation of the proposal would Holding Company effect no changes in the banking services offered Hastings City National Co., Lincoln, Nebraska, by Bank, the considerations relating to the con­ has applied for the Board’s approval under section venience and needs of the community to be served 3(a)(1) of the Bank Holding Company Act (12 are consistent with approval. It is the Board’s U.S.C. 1842(a)(1)) of formation of a bank holding judgment that the proposed transaction would be company through the acquisition of 80 per cent in the public interest and that the application or more of the voting shares of City National Bank should be approved. of Hastings, Hastings, Nebraska (“Bank”). The application is hereby approved on this date, Notice of the application, affording opportunity provided that the action so approved shall not be for interested persons to submit comments and made (a) before the thirtieth calendar day follow­ views, has been given in accordance with § 3(b) ing this date or (b) later than three months after of the Act. The time for filing comments and views this date, unless such period is extended for good has expired, and the Board has considered the cause by the Board of Governors or by the Federal application and all comments received in light of Reserve Bank of Kansas City, pursuant to dele­ the factors set forth in § 3(c) of the Act (12 U.S.C. gated authority. 1842(c)). By order of the Board of Governors, effective Applicant, a nonoperating company with no April 5, 1974. subsidiaries, was organized for the purpose of becoming a bank holding company through the Voting for this action: Chairman Burns and Governors acquisition of Bank ($42.5 million in deposits). Brimmer, Bucher, and Holland. Voting against this action: Governors Mitchell and Sheehan. Absent and not voting: Bank is the second largest of eleven banks in the Governor Wallich. relevant banking market, controlling approxi­ (Signed) C hester B. Feldberg, mately 31 per cent of the total commercial bank [seal] Secretary of the Board. deposits therein.1 Upon acquisition of Bank, Ap­ plicant would become the twelfth largest banking organization in Nebraska and hold 0.9 per cent of total commercial bank deposits in the State.2 Dissenting Statement of Since the purpose of the proposed transaction is Governors Mitchell and Sheehan to effect a transfer of the ownership of Bank from The majority observes that this proposal would not affect competitive conditions in the area served by the Bank and that neither the quality nor the character of banking services offered would JThe relevant banking market is approximated by Adams change. In fact, the only apparent purpose of the and Clay Counties. 2 All banking data are as of June 30, 1973, and reflect bank transaction is to further the ownership interests of holding company formations and acquisitions approved through the individuals controlling Bank; its public bene­ February 28, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 365 individuals to a corporation owned by the same COMMERCE BANCSHARES, INC., individuals with no change in Bank’s management KANSAS CITY, MISSOURI or operation, consummation of the proposal herein would eliminate neither existing nor potential Order Approving Acquisition of Bank competition. Commerce Bancshares, Inc., Kansas City, The principals of Applicant are also share­ Missouri, a bank holding company within the holders, officers and/or directors of six other affil­ meaning of the Bank Holding Company Act, has iated bank holding companies and banks in Ne­ applied for the Board’s approval under § 3(a)(3) braska, the closest of which is located in Grand of the Act (12 U.S.C. 1842(a)(3)) to acquire more Island, approximately 28 miles from Bank, and than 80 per cent of the voting shares of Farmers in a separate banking market. The Board is con­ and Merchants Bank, Bolivar, Missouri cerned with common ownership of multiple one- (“Bank”). bank holding companies because of the possi­ Notice of the application, affording opportunity bilities for evasion of the purposes of the Act for interested persons to submit comments and created by such ownership. However, these rela­ views, has been given in accordance with § 3(b) tionships are not prohibited by the Act and, in of the Act. The time for filing comments and views the absence of evidence of evasion or abuse, the has expired, and the Board has considered the Board will act favorably on such applications. In application and the views of Grandview Bank & the instant case, it is the Board’s judgment that Trust Company, Grandview, Missouri, in light of competitive considerations are consistent with ap­ the factors set forth in § 3(c) of the Act (12 U.S.C. proval of this application. 1842(c)). The financial and managerial resources and fu­ Applicant, the third largest bank holding com­ ture prospects of Applicant, dependent upon those pany and banking organization in Missouri, con­ of Bank, are regarded as generally satisfactory. trols 26 subsidiary banks with aggregate deposits As indicated above, the proposed acquisition rep­ of approximately $1 billion, representing 7.7 per resents a change in form of ownership of Bank, cent of the total commercial bank deposits in and there are no significant proposed changes in Missouri.1 Acquisition of Bank would increase the operations or services of Bank. Therefore, Applicant’s share of State deposits by the addition considerations relating to the convenience and of . 10 per cent and would not result in a significant needs of the community to be served are consistent increase in the concentration of banking resources with approval. It is the Board’s judgment that the in the State. acquisition would be in the public interest and that Bank (deposits of $14.0 million) is the second the application should be approved. largest of five banks in Polk County (which ap­ On the basis of the record, the application is proximates the relevant banking market), and approved for the reasons summarized above, pro­ controls almost 29 per cent of the total deposits vided that the transaction shall not be made (a) in commercial banks in the market. The largest before the thirtieth calendar day following the bank in the market controls almost 40 per cent effective date of this Order or (b) later than three of the market deposits, and Applicant’s acquisition months after the effective date of this Order, unless of Bank would not result in Applicant’s gaining such period is extended for good cause by the a dominant share of the market’s banking re­ Board or by the Federal Reserve Bank of Kansas sources . City pursuant to delegated authority. Applicant’s subsidiary bank closest to Bank is By order of the Board of Governors, effective located in Willard, Missouri, approximately 24 April 4, 1974. miles south of Bolivar, and there is no meaningful present competition between any of Applicant’s Voting for this action: Chairman Burns and Governors Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and subsidiary banks and Bank. The town of Bolivar not voting: Governor Wallich. is the only town in Polk County that has experi­ (Signed) Chester B. Feldberg, enced rapid growth in the past decade. This growth [seal] Secretary of the Board. 1 All banking data are as of June 30, 1973, and reflect holding company formations and acquisitions approved through Jan­ uary 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN □ MAY 1974 is expected to continue, and may increase compe­ By order of the Board of Governors, effective tition between Bank and Applicant’s subsidiary April 24, 1974. banks located in the Springfield-Willard area. This Voting for this action: Governors Sheehan, Bucher, Holland, possible future competition is not regarded as and Wallich. Voting against this action: Vice Chairman Mit­ significant. De novo entry into the Polk County chell and Governor Brimmer. Absent and not voting: Chairman market is regarded as relatively unlikely due to Burns. the low population and rural orientation of Polk (Signed) C hester B. Feldberg, County. Nor does it appear that “foothold” entry [seal] Secretary of the Board. into the market is an attractive alternative. The Board concludes that competitive considerations Dissenting Statement of are consistent with approval of the application. Governors Mitchell and Brimmer In its consideration of this application, the Board has examined the covenant not to compete We would deny the application by Commerce which was executed in connection with the pro­ Bancshares, Inc., to acquire Farmers and Mer­ posal, and considered the question of whether such chants Bank. Our decision is based upon the a covenant is contrary to the standards respecting existence in the purchase agreement which was competition and the public interest which the executed between Applicant and Bank’s principal Board is required to consider under the Bank shareholders, of a covenant not to compete which, Holding Company Act. The Board finds that the by its terms, prohibits Bank’s principal share­ provisions of this covenant are consistent with holders from engaging in the banking business such standards, and that its presence in the record within a 25 mile radius of Bank for a period of does not require denial of the application. five years from the date of the proposed acquisi­ The financial and managerial resources and fu­ tion. In our view, this covenant will necessarily ture prospects of Applicant are regarded as satis­ inhibit competition and should not be sanctioned factory; those of Bank are also regarded as satis­ by the Board. factory, particularly in view of Applicant’s com­ The purpose and effect of the covenant in this mitment to increase Bank’s capital account, which case is to preclude the possibility that the restricted has not kept pace with Bank’s deposit growth, individuals would provide support for an alterna­ upon consummation of the acquisition. Accord­ tive source of commercial banking services in the ingly, considerations relating to the banking fac­ Bolivar area in the near future. For reasons stated tors lend some weight toward approval of the more fully in our dissent to the Board’s Order of application. Although the major banking needs of September 21, 1973, approving the acquisition by the residents in the area are being adquately served First Alabama Bancshares, Inc., of Citizens Bank at the present time, the proposed affiliation is likely of Guntersville (1973 Federal Reserve B u lletin to result in the provision of some services which 757), such a consequence is inherently anticom­ cannot presently be profitably provided by banks petitive. of the size prevailing in the area, such as trust services. Considerations relating to the conven­ FIRST AT ORLANDO CORPORATION, ience and needs of the community to be served ORLANDO, FLORIDA lend some weight toward approval of the applica­ tion. It is the Board’s judgment that the proposed Order Approving Acquisition of One Bank acquisition would be in the public interest and that and the application should be approved. Denying Acquisition of Another Bank On the basis of the record, the application is First at Orlando Corporation, Orlando, Florida, approved for the reasons summarized above. The a bank holding company within the meaning of transaction shall not be made (a) before the thir­ the Bank Holding Company Act, has applied for tieth calendar day following the effective date of the Board’s approval under § 3(a)(3) of the Act this Order or (b) later than three months after the (12 U.S.C. 1842 (a)(3)) to acquire 90 per cent effective date of this Order, unless such period or more of the voting shares of (1) The Beach is extended for good cause by the Board, or by Bank of Vero Beach, Vero Beach (“Vero Beach the Federal Reserve Bank of Kansas City pursuant Bank”); and (2) The Sebastian River Bank, Se­ to delegated authority. bastian (“Sebastian Bank”), both located in Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 367 Notice of the applications, affording opportunity bility of future deconcentration. The two largest for interested persons to submit comments and organizations in the market presently control over views, has been given in accordance with § 3(b) 75 per cent of the total commercial bank deposits of the Act. The time for filing comments and views therein. Vero Beach Bank and Sebastian Bank has expired, and the Board has considered the rank as the market’s third and fourth largest banks, applications and all comments received in light of respectively. Acquisition of both banks by Appli­ the factors set forth in § 3(c) of the Act (12 U.S.C. cant would eliminate the remaining independent 1842(c)). banks in the market that are not subsidiaries of Applicant controls 42 banks with aggregate de­ bank holding companies. However, approval of posits of $1.5 billion representing about 7.5 per the application to acquire Vero Beach Bank and cent of deposits in commercial banks in Florida.1 denial of the application to acquire Sebastian Bank Applicant’s acquisition of both Vero Beach Bank would not only permit Applicant to enter the (deposits of $15.7 million) and of Sebastian Bank market and provide increased competition for the (deposits of $6.8 million) would not significantly market’s two largest organizations but would pre­ increase the concentration of banking resources in serve an entry vehicle for another holding com­ Florida. It follows that the acquisition of either pany. An interest in such entry is apparent from bank by itself would not increase the concentration the applications filed by two holding companies of banking resources in the State. for national bank charters in this market.3 More­ Both Vero Beach Bank and Sebastian Bank are over, denial of the application to acquire Sebastian located in the same banking market and control Bank would enhance competition in the market about 13 and 6 per cent, respectively, of the total by eliminating an existing affiliation between the deposits in commercial banks in this market.2 two banks. Accordingly, the Board concludes that Applicant’s closest banking subsidiaries to the competitive considerations are consistent with ap­ relevant market are almost twenty miles distant proval of the acquisition of Vero Beach Bank and there is little existing competition between while consummation of the acquisition of Sebas­ these, or any other of Applicant’s banking subsid­ tian Bank, by the same bank holding company, iaries, and either Vero Beach Bank or Sebastian would have substantially adverse effects on com­ Bank. Moreover, there does not appear to be a petition. reasonable likelihood of substantial future compe­ The financial and managerial resources and fu­ tition developing between Applicant’s banking ture prospects of Applicant, its subsidiary banks, subsidiaries and Vero Beach Bank or Sebastian and Vero Beach Bank and Sebastian Bank are Bank due to the distances involved and Florida’s considered to be generally satisfactory, particu­ branching laws, among other factors. Nor can larly in view of a commitment by Applicant to Applicant be considered a likely de novo entrant add capital to certain of its existing subsidiary in the market. In a previous matter involving the banks and to Vero Beach Bank. This factor lends application of First National Bankshares of support for approval of the application to acquire Florida, Inc., the Board found the Indian River Vero Beach Bank. On the other hand, though banking market to be unattractive for de novo entry Applicant has agreed to provide capital to Sebas­ (see 1973 Federal Reserve B u lletin 362). There tian Bank, the Board concludes that this factor have been no significant changes in the market does not outweigh the substantially adverse com­ since that decision which would lead to a different petitive effects associated with the application. judgment. Considerations relating to the convenience and There are, on the other hand, other competitive needs of the community to be served lend some considerations involved in the instant proposal. It weight for support of approval of the application appears that consummation of the acquisition of to acquire Vero Beach Bank since Applicant both banks would tend to solidify the existing proposes to offer expanded mortgage, trust, and concentration in the market and inhibit the proba­ investment advisory services through Vero Beach Bank. Applicant also proposes to offer similar expanded services through Sebastian Bank. Again, 1 All banking data are as of June 30, 1973, and represent bank holding company acquisitions approved by the Board through March 31, 1974. 2The relevant banking market is approximated by Indian 3 Both holding company applications were denied by the River County. Comptroller of the Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN □ MAY 1974 however, these considerations, though lending of the factors set forth in section 3(c) of the Act some support for approval of the acquisition of (12 U.S.C. 1842(c)). Sebastian Bank, do not outweigh the substantial Applicant, the twelfth largest banking organi­ adverse competitive effects associated with the zation in Michigan, was organized as a bank application. It is the Board’s judgment that con­ holding company during 1973 and controls one summation of the transaction to acquire Vero bank with deposits of $336 million, representing Beach Bank is in the public interest and should 1.3 per cent of the total deposts in the State.1 be approved while consummation of the transac­ Acquisition of Bank would increase Applicant’s tion to acquire Sebastian Bank is not in the public share of State deposits by two-tenths of a percent­ interest and should be denied. age point, and would not significantly increase the On the basis of the record, the application to concentration of banking resources in the State. acquire Vero Beach Bank is approved for the Upon consummation of the proposed acquisition, reasons summarized above while the application Applicant would become the eleventh largest to acquire Sebastian Bank is denied for the reasons banking organization in Michigan. summarized above. The transaction to acquire Bank (deposits of $52 million) is the smallest Vero Beach Bank shall not be executed (a) before of the five banking organizations in the relevant the thirtieth calendar day following the effective banking market, approximated by the Muskegondate of this Order or (b) later than three months Grand Haven banking market.2 Bank controls ap­ after the effective date of this Order unless such proximately 12 per cent of the total deposits in period is extended for good cause by the Board that market, and competes with four larger banks or by the Federal Reserve Bank of Atlanta pursuant (two of which are subsidiaries of multi-bank hold­ to delegated authority. ing companies) holding deposits within the market By order of the Board of Governors, effective of $143 million, $105 million, $81 million, and April 16, 1974. $53 million, respectively. Applicant’s sole sub­ sidiary, Union Bank and Trust Company (National Approval of acquisition of The Beach Bank of Vero Beach, Vero Beach, Florida. Voting for this action: Chairman Burns Association), Grand Rapids, Michigan, is located and Governors Mitchell, Brimmer, Sheehan, Bucher, Holland, in an adjacent but separate banking market, in and Wallich. which it is the second largest banking organization Denial of acquisition of The Sebastian River Bank, Sebas­ tian, Florida. Voting for this action: Chairman Burns and with less than half the deposits of the largest Governors Mitchell, Brimmer, Sheehan, Bucher, Holland, and banking organization in the market, and its closest Wallich. office to Bank is located 27 miles to the east. Each (Signed) Chester B. Feldberg, of the two banks obtains an insignificant amount [seal] Secretary of the Board. of deposits from the other’s service area. Conse­ quently, no significant amount of existing compe­ tition between Applicant and Bank would be eliminated by the proposed acquisition. Furthermore, it appears that the effect upon GREAT LAKES FINANCIAL CORPORATION, potential competition would also be insignificant GRAND RAPIDS, MICHIGAN in the relevant market. Although an interstate Order Approving Acquisition of Bank highway connects the two communities in which Great Lakes Financial Corporation, Grand Bank and Applicant’s subsidiary bank are located, Rapids, Michigan, a bank holding company within the banking markets in which each bank competes the meaning of the Bank Holding Company Act, appear to be separate and distinct and, due to the has applied for the Board’s approval under section relative sizes of the institutions involved, the 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ prospect of either bank becoming a meaningful quire 80 per cent or more of the voting shares competitor in the market served by the other is of The Peoples Bank and Trust Company, Grand Haven, Michigan (“Bank”). Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with section 1 Banking data are as of June 30, 1973. 3(b) of the Act. The time for filing comments and 2The Muskegon-Grand Haven banking market is approxi­ views has expired, and the application and all mated by the Muskegon-Grand Haven Ranally Metro Area which consists of most of Muskegon County and the northwest comments received have been considered in light corner of Ottawa County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 369 unlikely. With respect to the prospect of Appli­ resources and thereby enable Bank to strengthen, cant’s de novo entry into the market, the Board modernize, and expand the fiancial services that noted in a recent Order that at least one section Bank offers the public. Applicant proposes to of the Muskegon-Grand Haven banking market, integrate its professional computer skills with the city of Norton Shores, could support new Bank’s internal accounting procedures and exter­ entry.3 However, subsequent to the date of the nal customer service functions. The benefits re­ Board’s Order, the Comptroller of the Currency sulting from the proposed affiliation should enable formally accepted an application for a charter for Bank to compete more effectively with the four a new national bank in Norton Shores, which larger banking organizations in the market. Con­ application is presently pending before that siderations relating to the convenience and needs agency. This factor would reduce the possibility of the community, therefore, are consistent with, of Applicant’s entry into the area by a de novo and lend weight toward approval of the applica­ charter. In addition, the city of Grand Haven, tion. It is the Board’s judgment that consummation located about 10 miles south of Muskegon, and of the proposal would be in the public interest, the immediate area surrounding Grand Haven, do and that the application should be approved. not appear attractive for de novo entry. This area On the basis of the record, the application is has a low population per banking office ratio as approved for the reasons summarized above. The compared with the State average. It is also noted transaction shall not be made (a) before the thir­ that two applications for the establishment of ad­ tieth calendar day following the effective date of ditional branch offices, one of which has been this Order, nor (b) later than three months after approved and the other is pending, would decrease the effective date of this Order, unless such period further the population per banking office ratio in is extended for good cause by the Board, or by the Grand Haven area. Futhermore, although Ap­ the Federal Reserve Bank of Chicago pursuant to plicant may possess the resources to enter the delegated authority. Grand Haven area de novo, in light of Applicant’s By order of the Board of Governors, effective short operating history and its relative size, de April 16, 1974. novo entry appears unlikely. Moreover, in view Voting for this action: Vice Chairman Mitchell and Gover­ of the market conditions described above and the nors Brimmer, Sheehan, Bucher, Holland, and Wallich. Ab­ presence of banking organizations in the relevant sent and not voting: Chairman Burns. market which control substantially larger deposits (Signed) C hester B. Feldberg, than Bank, the Board does not regard the alterna­ [seal] Secretary of the Board. tive of de novo entry as clearly preferable from a competitive posture to the proposal herein by MANCHESTER FINANCIAL CORPORATION, Applicant to acquire the smallest bank in the ST. LOUIS, MISSOURI market in terms of deposits. Accordingly, on the basis of the record, the Board finds that this Order Approving Acquisition of Bank proposal would have no significantly adverse effect Manchester Financial Corporation, St. Louis, on exisitng and potential competition. Missouri, a bank holding company within the The financial and managerial resources of Ap­ meaning of the Bank Holding Company Act, has plicant, its subsidiary bank, and Bank are satis­ applied for the Board’s approval under § 3(a)(3) factory and lend some support toward approval of of the Act (12 U.S.C. 1842(a)(3)) to acquire all the application, especially in view of Applicant’s of the voting shares (less directors’ qualifying commitment to inject equity capital into its present shares) of The National Bank of Affton, Affton, subsidiary and Bank. Although there is no evi­ Missouri (“Bank”), a proposed new bank. dence that the banking needs of the Grand Haven Subject application was filed with the Federal area are not currently being met, holding company Reserve Bank of St. Louis; and notice of the affiliation would afford Bank access to Applicant’s application, affording opportunity for interested persons to submit comments and views was duly given in accordance with § 3(b) of the Act (37 Federal Register 9510). The Reserve Bank, acting 3Order of the Board of Governors denying the application in accordance with the Board’s Rules Regarding of Old Kent Financial Corporation, Grand Rapids, Michigan, Delegation of Authority (12 CFR § 265.2 (f)(24)), to acquire National Lumberman’s Bank and Trust Company, considered the application and all comments re­ Muskegon, Michigan, dated January 25, 1974. (1974 Federal Reserve Bulletin 133.) ceived in light of the factors set forth in § 3(c) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN □ MAY 1974 of the Act (12 U.S.C. 1842(c)). Based on the corporation with its own capital stock; that Bank record before it, the Reserve Bank approved sub­ is a national bank, whereas Manchester Bank is ject application. Thereafter, three banks located a State-chartered bank; that Bank and Manchester in Bank’s proposed service area jointly filed a Bank must observe the separate borrowing and Petition for Review of the Reserve Bank’s Order lending limits prescribed by State and Federal law in the U.S. Court of Appeals for the Eighth Circuit (Rev. Stat. Mo § 362.170; 12 U.S.C. §§ 82, 84); (Gravois Bank, et al. v. Federal Reserve Bank that Bank is capitalized with funds raised by Ap­ of St. Louis—Board of Governors, No. 72-1423, plicant through a loan obtained from an unaffi- 8th Cir.)1 Petitioners did not request a stay of the liated bank, not with profits or other funds of Reserve Bank’s Order; and Applicant accordingly Manchester Bank; that although Bank and Man­ consummated the approved transaction.2 chester Bank advertise together, they bear sub­ The Court has remanded the case to the Board stantially different names, and persons in Bank’s “for further review consistent with the opinion of service area consider that the two banks operate this Court this day filed herein.” In its opinion, separately; that no loan payments or deposits of 478 F. 2d 546 (8th Cir. 1973), the Court declares Bank are accepted by Manchester Bank and no that the Reserve Bank failed to “examine the facts loan payments or deposits of Manchester Bank are to determine whether or not the Affton Bank would accepted by Bank; that no officer of Bank is an be operated as a de facto branch of the Manchester officer of Manchester Bank, and no officer of Bank”3 and directs the Board to follow, on re­ Manchester Bank is an officer of Bank; that Man­ mand, the guidelines laid down by the Court in chester Bank is one of Bank’s four correspondent Commercial National Bank of Little Rock v. banks; and that four of Bank’s directors are also Board of Governors, 451 F. 2d 86, 89-90 (8th directors of Manchester Bank. In addition, it ap­ Cir. 1971). pears that Applicant was incorporated in 1968, In light of the Court’s action, the Board directed acquired Manchester Bank in 1969, and submitted that the record be supplemented with additional its application for prior approval to acquire Bank evidence on the branch banking question in order in 1972. The record supports the conclusion that that further consideration might be given to the Applicant is a “traditionally recognized bank issue raised by petitioners. An examiner was holding company which, with its own capital, dispatched to determine the mode of operation of invests in or buys the stock of banks,” Whitney Bank and to gather data relevant to the branching National Bank v. Bank of New Orleans, 323 F. issue. In addition, Applicant and Petitioners were 2d 290 (D.C. Cir. 1963), rev’d on other grounds, invited to submit views and factual materials on 379 U.S. 411 (1965), and that a unitary operation this question. The Board has considered the appli­ does not exist between Bank and Manchester cation and the facts of record, including all mate­ Bank. First National Bank in Billings v. First rials submitted by the parties to the Court of Bank Stock Corp., 306 F. 2d 937 (9th Cir. 1962). Appeals, to the Reserve Bank, and to the Board. Applicant, the sixteenth largest banking organi­ The facts of record reflect that Bank is a separate zation in Missouri, controls two banks, with ag­ gregate deposits of $98.8 million,4 representing .7 per cent of total deposits in commercial banks in the State and 1.6 per cent of all such deposits in 1 Petitioners had opposed the application by protest to the Board and to the Reserve Bank within the time provided for the St. Louis banking market.5 Bank (deposits of public comment. Petitioners contended before the Reserve $2.54 million) is the smaller of Applicant’s banks Bank that the proposed acquisition would offend Missouri’s and controls only about. 1 per cent of total deposits statutory prohibition of branch banking. In the Court of Ap­ peals, Petitioners repeated this contention and urged, in addi­ in commercial banks in the St. Louis market. tion, that the Reserve Bank had unlawfully failed to consider When the Reserve Bank issued its Order in this the branch banking issue. case, Bank was a proposed new bank; and the 2The Reserve Bank’s Order directed that the acquisition of Reserve Bank correctly found that subject acquisi­ Bank be accomplished no sooner than thirty days and no later than three months following the date of said Order. tion would neither eliminate competition nor in- 3The Manchester Bank of St. Louis (Manchester Bank) was, prior to subject acquisition, Applicant’s only banking subsidi­ ary. Missouri Law forbids branch banking, Rev. Stat Mo. § 362.105(1); and the Board must disapprove any proposed 4Data as of June 30, 1973. transaction consummation of which would violate State branch banking law. Whitney National Bank v. Bank of New Orleans, 5Approximated by the City of St. Louis, St. Louis County, 323 F. 2d 290 (D.C. Cir. 1953), rev’d on other grounds. 379 portions of St. Charles and Jefferson Counties in Missouri, U.S. 41 1 (1965). and portions of Madison and St. Clair Counties in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 371 crease concentration in any relevant area.6 Indeed, Applicant controls one bank with total deposits the record indicates that subject acquisition en­ of $216.6 million, representing 4.2 per cent of hances competition by creating an additional the total deposits in commercial banks in Oregon source of commercial banking services in South and is the third largest banking organization head­ St. Louis County. Accordingly, the Board con­ quartered in the State.1 The direct acquisition of cludes that the acquisition of Bank by Applicant Bank (deposits of $51.5 million) would increase does not adversely affect existing or potential Applicant’s share of State deposits by 1 percentage competition in any relevant area. point and its rank would remain unchanged. The financial and managerial resources and fu­ Bank is the sixth largest of 16 banks operating ture prospects of Applicant and Bank are generally in the Portland metropolitan area,2 the relevant satisfactory and consistent with approval of the banking market,3 holding 2 per cent of total de­ application. Considerations relating to the con­ posits therein. The largest bank in the market, First venience and needs of the community are likewise National Bank of Oregon, holds 39.8 per cent of consistent with approval. It is the Board’s judg­ total deposits in the market. The second largest, ment that subject acquisition is in the public inter­ United States National Bank of Oregon, holds 36.3 est and the application should be approved. per cent of such deposits. It appears that the two On the basis of the record, the application is largest banks in Portland are dominant in this approved for the reasons summarized above, The market. transaction having been consummated, today’s Applicant’s subsidiary bank, The Oregon Bank, action empowers Applicant to retain its ownership is the fourth largest bank4 in the Portland banking and control of voting shares of Bank. market and controls 4.7 per cent of the total By Order of the Board of Governors, effective deposits in commercial banks therein. Although April 4, 1974. some of the branch offices of Bank and The Oregon Bank have overlapping service areas,5 the pros­ Voting for this action: Vice Chairman Mitchell and Gover­ pects of vigorous competition developing between nors Brimmer, Sheehan, Bucher, Holland, and Wallich. Ab­ sent and not voting: Chairman Burns. the two banks appears remote in view of Bank’s weak competitive position. Acquisition of Bank (Signed) C hester B. Feldberg, by Applicant, which itself is not dominant in the [seal] Secretary of the Board. market, would permit an infusion of additional capital and new management into Bank and restore ORBANCO, INC., its competitive vigor. The Board concludes that PORTLAND,OREGON consummation of the proposed transaction is not Order Approving Acquisition of Bank likely to lessen competition in the Portland market as, in the absence of such consummation, Bank Orbanco, Inc., Portland, Oregon, a bank hold­ does not appear able to remain a viable competitive ing company within the meaning of the Bank alternative to the area’s other banks. Although a Holding Company Act, has applied for the Board’s slight increase in concentration among the four approval under § 3(a)(3) of the Act (12 U.S.C. largest firms in the market would result from 1842(a)(3)) to acquire 51 per cent or more of the consummation of the proposed transaction, con­ voting shares of Security Bank of Oregon, Port­ land, Oregon (“Bank”). Notice of the application, affording opportunity for interested persons to submit comments and 1 Banking data pertaining to Applicant are as of June 30, views, has been given in accordance with § 3(b) 1973. of the Act. The time for filing comments and views 2Market share data are as of December 31, 1972. •‘The Portland banking market is approximated by Clack­ has expired, and the Board has considered the amas, Multnomah, and Washington Counties. application and all comments received in light of 4The Oregon Bank, though the fourth largest bank operating the factors set forth in § 3(c) of the Act (12 U.S.C. in the relevant market, is the third largest bank headquartered in the State. The third largest bank operating in the market 1842(c)). is Bank of California, N.A., and is not headquartered in the State. 5Three of Bank’s offices face no direct competition from The Oregon Bank’s branches. The three offices of Bank located in Portland’s central business area, where direct competition 6The record before the Reserve Bank indicated that Appli­ does exist, are in an area with the highest number of offices cant was the fourteenth largest banking organization in Mis­ of other banks. Accordingly, the importance of any direct souri, controlling .85 per cent of total deposits in commercial competition between Bank and The Oregon Bank is reduced banks in the State, as of June 30, 1971. by the presence of these other competitors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BULLETIN □ MAY 1974 summation would not, in the Board’s view, cause of the shares of Bank in the event the instant a substantial lessening of competition in that mar­ application were denied. The individual has un­ ket, but would, to the contrary, offer the prospect dertaken significant management changes in Bank of more vigorous competition among area banks. including the employment of a new chief execu­ The financial condition of Applicant and The tive, unassociated with Applicant. There is no Oregon Bank are generally satisfactory; future substantial evidence in the record suggesting that prospects for both are favorable. The financial Applicant is participating in or influencing the condition, managerial resources, and future pros­ management or policies of Bank. It therefore does pects of Bank are less than satisfactory. Applicant not appear that the purposes of section 3 have been proposes to assist Bank by providing substantial frustrated. Based on these facts, it does not appear equity capital and managerial assistance, as well that Applicant has acquired indirect ownership or as to assist Bank in the provision of consumer control of the shares held by this individual or lending, commercial lending, trust services, and has exercised controlling influence over the man­ credit card services. While there is no evidence agement or policies of Bank. Nonetheless, the in the record that the banking needs of the area Board remains “seriously concerned with propos­ are not being adequately served, the improved or als that indicate a holding company, acting through expanded services proposed by Applicant would its officers and directors, may have gained control provide customers with an alternative source of of the shares of a bank (or nonbank concern) such services and, further, would enable Bank to without specific Board approval, as required by compete more effectively with the two dominant the Act.” banks in the market. The financial and managerial On the basis of the record, the application is assistance that Applicant proposes for Bank would approved for the reasons summarized above. The also enhance Bank’s competitive ability and ensure transaction shall not be made (a) before the thir­ Bank’s continued service to its customers. Ac­ tieth calendar day following the effective date of cordingly, considerations relating to the conven­ this Order or (b) later than three months after the ience and needs of the communities to be served effective date of this Order, unless such period weigh strongly in favor of approval and clearly is extended for good cause by the Board or by outweigh any anticompetitive effects of the the Federal Reserve Bank of San Francisco pursu­ proposed transaction. It is the Board’s judgment ant to delegated authority. that consummation of the proposed acquisition is By order of the Board of Governors, effective in the public interest and that the application April 1, 1974. should be approved. Board Order of January 31, 1974, denying the application The record in this case indicates that most of of Mid America Bancorporation, Inc., Mendota Heights, Min­ the shares which Applicant seeks to acquire were, nesota, to acquire shares of The First National Bank of Lake­ ville, Lakeville, Minnesota. in fact, acquired by an individual who is a director Voting for this action: Chairman Burns and Governors of one of Applicant’s nonbanking subsidiaries and Mitchell, Sheehan, Bucher, and Holland. Absent and not the son of the Chairman of the Board of Applicant. voting: Governors Brimmer and Wallich. Former management of Bank has objected to this (Signed) C hester B. Feldberg, application on grounds, among others, that Appli­ [seal] Secretary of the Board. cant, acting through this individual has already indirectly acquired control of the shares for the SECURITY NEW YORK STATE acquisition of which the Board’s prior approval CORPORATION, is now sought. The Board has considered argu­ ROCHESTER, NEW YORK ments, depositions, and exhibits filed by all parties Order Approving Acquisition of Bank and has concluded that Applicant has not indirectly acquired shares of Bank through this individual. Security New York State Corporation, Roches­ Under an agreement between this individual and ter, New York, a bank holding company within Applicant, the individual bears the entire market the meaning of the Bank Holding Company Act, risk associated with ownership of the shares. The has applied for the Board’s approval under § only limitation on his rights of ownership is that 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ he not pledge or otherwise encumber or hypothe­ quire 100 per cent of the voting shares (less cate the shares for a period of one year from the directors’ qualifying shares) of the successor by date the agreement became operative. Applicant merger to Glen National Bank and Trust Com­ has no ability to direct or influence his disposition pany, Watkins Glen, New York (“Bank”). The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 373 bank into which Bank is to be merged has no ing in the near future between First Corning and significance except as a means to facilitate the Bank appears remote. First Corning operates in acquisition of all of the voting shares of Bank. the State’s Eighth Banking District while Bank is Accordingly, the proposed acquisition of shares located in the Seventh District. State law prohibits of the successor organization is treated herein as each bank from branching outside its respective the proposed acquisition of shares of Bank. District until 1976. Further, it appears unlikely that Notice of the application, affording opportunity Applicant’s banking subsidiary in Ithaca would for interested persons to submit comments and branch into Bank’s service area, considering the views, has been given in accordance with § 3(b) fact that the market’s population increased only of the Act. The time for filing comments and views 1 per cent during the decade ending in 1970 and has expired, and the Board has considered the that its per capita personal income is considerably application and all comments received in light of below the State average. On the basis of the facts the factors set forth in § 3(c) of the Act (12 U.S.C. of record, the Board concludes that consummation 1842(c)). of the proposed acquisition would have no signifi­ Applicant controls eight banks with aggregate cant adverse effects on existing competition, nor deposits of $721 million, representing 0.7 per cent would it foreclose the development of future com­ of total deposits in commercial banks in New York petition. State and ranks sixteenth among the State’s 35 The financial and managerial resources of Ap­ bank holding companies. (All banking deposit data plicant, its subsidiary banks, and Bank are gener­ are as of June 30, 1973, all market deposit data ally satisfactory, and their prospects appear favor­ are as of June 30, 1972; and reflect holding com­ able. Banking factors are consistent with approval pany formations and acquisitions approved of the application. Applicant proposes to enable through January 31, 1974.) The acquisition of Bank to improve and expand the present range of Bank would increase Applicant’s share of State services it offers; to make available to Bank’s deposits by less than one-half of one percentage customers credit card services, larger loans, cashpoint. reserves checking, automated accounting services, Bank (deposits of $15 million) is the sixth payroll service plans, salary deposit plans, inter­ largest of nine banks competing in the Elmira- national financing, equipment leasing, and nu­ Corning banking market1 and controls 4.6 per cent merous trust services. Considerations relating to of the total commercial bank deposits in that the convenience and needs of the communities to market. Applicant controls a subsidiary bank, First be served lend weight toward approval of the Bank and Trust Company of Corning (“First application and outweigh any anticompetitive ef­ Corning”), also located in the Elmira-Corning fects of the proposal. It is the Board’s judgment market, where it holds 11.1 per cent of the area’s that consummation of the proposed acquisition commercial bank deposits. Consummation of the would be in the public interest and that the appli­ proposed transaction would give Applicant control cation should be approved. of 15.7 per cent of deposits in the market, and On the basis of the record, the application is it would remain the third largest banking organi­ approved for the reasons summarized above. The zation in a market in which approximately 60 per transaction shall not be made (a) before the thir­ cent of the total deposits are held by the two largest tieth calendar day following the effective date of banking organizations. this Order or (b) later than three months after the Bank derives less than 0.2 per cent of its de­ effective date of this Order, unless such period posits and loans from the service area of First is extended for good cause by the Board, or by Corning. Similarly, First Corning derives only an the Federal Reserve Bank of New York pursuant insignificant portion of its deposits and loans from to delegated authority. the service area of Bank, which is 23 miles distant. By order of the Board of Governors, effective It appears, therefore, that the two banks are serv­ April 1, 1974. ing primarily different segments of the Elmira- Voting for this action: Vice Chairman Mitchell, and Gover­ Corning banking market. nors Sheehan, Bucher, and Holland. Voting against this action: The possibility of greater competition develop­ Governor Brimmer. Absent and not voting: Chairman Burns and Governor Daane. Board action was taken while Governor Daane was a Board Member. (Signed) Chester B. Feldberg, ’The relevant market is comprised of Schuyler and Chemung Counties and the southern quarter of Steuben County. [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 FEDERAL RESERVE BULLETIN □ MAY 1974 Dissenting Statement of UNITED FIRST FLORIDA BANKS, INC. and Governor Brimmer DELAND DEVELOPMENT CORPORATION, I would deny the application on the grounds that TAMPA, FLORIDA consummation of the proposed acquisition would result in adverse effects on competition which Order Approving Acquisition of Bank would not be offset by any special benefits to the United First Florida Banks, Inc. (“Applicant”), public. I am also troubled by the significant in­ Tampa, Florida, a bank holding company within crease in the concentration of banking resources the meaning of the Bank Holding Company Act, within the Elmira-Corning banking market which has applied for the Board’s approval under § vould result from the proposal. 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ I find the competitive aspects of this proposal quire 90 per cent or more of the voting shares significantly adverse. Applicant ranks not only as of Deland State Bank (“Bank”), Deland, Florida. the third largest banking organization in the El- In a related matter, Deland Development Cor­ mira-Corning banking market in terms of deposits poration (“Development”) Maitland, Florida, a but also maintains six other banking offices within bank holding company with respect to Bank, has 26 miles of Bank. Consummation of the proposal applied for the Board’s approval under § 3(a)(3) would decrease the number of competitors in the of the Act to acquire, through a conversion of market from nine to eight; it would increase the $440,000 in subordinated convertible debentures, share of deposits held by the market’s five largest 18,544 voting shares of Bank. Upon its acquisition banking organizations to more than 91 per cent. of such shares, Development proposes to tender The relevant area has experienced a low population its entire interest in Bank to Applicant. Develop­ growth and poor economic development over the ment’s acquisition of shares of Bank has no sig­ last ten years and prospects for this area do not nificance except as a means to facilitate Appli­ appear favorable. In view of the market condi­ cant’s acquisition of 90 per cent or more of the tions, it appears even more important that the voting shares of Bank. Accordingly, the proposals remaining foothold banks be preserved for possible are treated herein as the proposed acquisition of acquisition by banking organizations located out­ voting shares of Bank by Applicant. side the market. The Board’s approval of the Notice of the applications, affording opportunity present proposal, which eliminates one of the for interested persons to submit comments and remaining independent market banks,1 mitigates views, has been given in accordance with § 3(b) the possibility of any future deconcentration of the of the Act. The time for filing comments and views Elmira-Corning area. has expired, and the Board has considered the The majority opinion states that benefits eman­ applications and all comments received in light of ating from this proposal, relating to the conven­ the factors set forth in § 3(c) of the Act (12 U.S.C. ience and needs of the communities to be served, 1842(c)). lend weight toward approval of the application. Applicant, the fourth largest bank holding com­ I find, conversely, that all the services which pany in Florida, controls 35 banks with aggregate Applicant proposes for Bank are presently avail­ deposits of $1.3 billion, representing 6.5 per cent able through Applicant’s subsidiary bank located of total deposits of commercial banks within the in the market and through other large banking State.1 Acquisition of Bank would not significantly organizations competing therein such as Marine increase Applicant’s share of State deposits and Midland Banks, Lincoln First Banks, and Charter would not alter Applicant’s ranking among other New York Corporation. I conclude, therefore, that State banking organizations. the adverse effects of the proposal are not out­ Bank ($28.9 million in deposits) is the second weighed in the public interest by serving any largest of six commercial banks located in the present or future needs or conveniences of the relevant market,2 and holds 21.5 per cent of the relevant areas. Furthermore, it appears imperative deposits in the market. Four of the five remaining that measures should be taken to alleviate the banks in the market are now affiliated with bank significantly high concentration of banking re­ holding companies. Applicant’s banking subsidi­ sources in the Elmira-Corning banking market. For these reasons, I would deny the present applica­ tion. 1 All banking data are as of June 30, 1973, and reflect holding company formations and acquisitions approved through Febru­ ’The Board approved on March 20, 1974, an application ary 28, 1974. to merge the second and eighth largest banks (in terms of 2 The relevant banking market in the western portion of deposits) in the Elmira-Corning banking market. Volusia County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 375 ary closest to Bank is located approximately 20 By order of the Board of Governors, effective miles away in Sanford, which is in a separate April 4, 1974. banking market. It appears that no meaningful Voting for this action: Vice Chairman Mitchell and Gover­ competition exists between Bank and any of Ap­ nors Sheehan, Bucher, Holland, and Wallich. Voting against plicant’s subsidiary banks. Furthermore, due to the this action: Governor Brimmer. Absent and not voting: Chair­ distances and natural barriers between Bank and man Burns. Applicant’s subsidiaries, it is unlikely that poten­ (Signed) C hester B. Feldberg, tial competition would develop between them. On [seal] Secretary of the Board. the basis of the foregoing and the record, the Board concludes that consummation of the proposal Dissenting Statement of would not eliminate any significant existing com­ Governor Brimmer petition nor foreclose the development of signifi­ cant potential competition. I would deny the application by United First Incident to this acquisition agreement, there is Florida Banks, Inc. to acquire Deland State Bank. a covenant by the directors of Bank “not to My decision is based on an examination of a become an officer or director of any bank in the covenant not to compete contained in a letter Greater Deland area” for a two year period. It agreement that is incident to this proposal. Each appears that the provisions of this covenant are director of Bank is prohibited by the covenant from reasonable in duration, scope and geographic area. becoming an officer or director of any bank in the Accordingly, the Board is of the view that the Greater Deland Area for a period of two years existence of such a covenant does not preclude from the effective date of the proposed stock approval of the proposed acquisition. exchange or two years from the date of his resig­ In view of Applicant’s commitments to inject nation as a director of Bank, whichever occurs additional equity capital into certain of its subsidi­ last. In my view, covenants of this type necessarily ary banks, the financial and managerial resources inhibit competition and should not be sanctioned and prospects of Applicant and its subsidiaries are by the Board. regarded as generally satisfactory. Acquisition by The purpose of such a covenant is to preclude Applicant will enhance the financial and manage­ the individuals involved from offering support and rial resources of Bank, especially in light of Ap­ expertise to a convenient alternative source of plicant’s commitment to inject equity capital into commerical banking services in the Deland area Bank and Applicant’s ability to provide Bank with in the near future. For reasons stated more fully management expertise. Considerations related to in my dissent to the application of First Alabama financial condition and managerial resources, Bancshares, Inc., to acquire Citizens Bank of therefore, are consistent with, and lend some Guntersville (59 Federal Reserve B u lletin 757), weight toward, approval of the applications. Al­ such a result is inherently anticompetitive and not though there is no evidence in the record to indi­ in the public interest. cate that the banking needs of the community to Accordingly, I would deny the application. be served are not currently being met, Applicant plans to expand the range of services presently NORTHEAST BANCORP, INC., offered by Bank. Convenience and needs factors NEW HAVEN, CONNECTICUT are consistent with approval of the applications. It is the Board’s judgment that consummation of Order Approving Merger of Bank Holding the proposals would be in the public interest and Companies that the applications should be approved. Northeast Bancorp, Inc., New Haven, Connec­ On the basis of the record, the applications are ticut (“Northeast Bancorp”), a bank holding approved for the reasons summarized above. The company within the meaning of the Bank Holding transactions shall not be made (a) before the thir­ Company Act, has applied for the Board’s ap­ tieth calendar day following the effective date of proval under § 3(a)(5) of the Act (12 U.S.C. this Order or (b) later than three months after the 1842(a)(5) to merge with First Connecticut Ban­ effective date of this Order, unless such period corp, Inc., Hartford, Connecticut (“First Connec­ is extended for good cause by the Board, or by ticut”), under the charter and title of Northeast the Federal Reserve Bank of Atlanta pursuant to Bancorp. delegated authority. Notice of the application, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN □ MAY 1974 for interested persons to submit comments and sonal checking services.2 In this regard it should views, has been given in accordance with § 3(b) be noted that Connecticut’s mutual savings banks of the Act. The time for filing comments and views exceed commercial banks both in number and in has expired, and the Board has considered the total deposits. There are 61 commercial banking application and all comments received in light of organizations in Connecticut with aggregate de­ the factors set forth in § 3(c) of the Act (12 U.S.C. posits of $6.4 billion and 68 mutual savings banks 1842(c)). with aggregate deposits of $7.4 billion. Taking Northeast Bancorp controls one bank with de­ into consideration both commercial banks and posits of $603 million, representing 9.4 per cent mutual savings banks, the proposed merger would of deposits in commercial banks in the State, and combine the fifth and sixteenth largest of such is the third largest commercial banking organi­ organizations and Northeast Bancorp would re­ zation in Connecticut. First Connecticut is the main fifth among all such organizations in the ninth largest commercial banking organization in State. On the basis of the foregoing, the Board the State and controls three banks with aggregate concludes that the proposed merger would not deposits of $222 million, representing 3.5 per cent have significant effects upon the Statewide banking of deposits in commercial banks in the State.1 structure in Connecticut. Upon consummation of the proposed merger, With respect to competition in individual mar­ Northeast Bancorp’s share of total commercial kets, Northeast Bancorp’s sole subsidiary bank, bank deposits would increase to 12.9 per cent, and Union Trust Company (“Union Trust”), is head­ Northeast Bancorp would remain the third largest quartered in New Haven and has 51 banking holding company in Connecticut. offices which are concentrated in the southwestern The Department of Justice has commented on area of Connecticut. First Connecticut’s three this proposed merger and concluded that it should subsidiary banks, headquartered in Hartford, New be denied. The Department indicated that, in its Britain and Simsbury, respectively, operate a total opinion, the proposed merger would not only of 28 offices of which 26 are in the north central eliminate some existing competition, but would portion of the State surrounding Hartford. There­ have an adverse effect upon potential competition fore, Northeast Bancorp and First Connecticut because Northeast Bancorp and First Connecticut operate primarily in separate sections of the State would be eliminated as potential entrants into each and the amount of overlap in most categories of other’s markets. In addition, the Department stated deposits and loans is minimal. There is only one that it believed the merger to be another in a area in the State in which both organizations current trend in Connecticut toward mergers operate; branches of the two banking organizations among the largest banks in the State with a result­ are located in the adjacent towns of Old Saybrook, ing increase in concentration of total State com­ Essex and Old Lyme. The deposits held by these mercial deposits. offices represent a minimal portion of total deposits The Board has concluded that approval of the held by each of the organizations. The board proposed merger would not have significant ad­ concludes that consummation of the proposed verse effects on the concentration of banking re­ merger would not eliminate a significant amount sources in Connecticut. Upon consummation, of existing competition between banking subsidi­ Connecticut would still have 11 commercial bank­ aries of Northwest Bancorp and First Connecticut, ing organizations with deposits over $100 million. nor would it have significant adverse effects on Furthermore, any assessment of concentration in existing competition in any banking market. Connecticut should include some consideration of mutual savings banks. Mutual savings banks and commercial banks already compete in Connecticut for a large number of normal banking services and 2 Recently enacted legislation to give them this power takes as of December 31, 1975, mutuals would be effect December 31, 1975 unless before that date either of the following should occur, in which event the Act becomes enabled to offer limited noninterest-bearing per­ effective immediately: 1. The enactment of Federal legislation that authorizes the chartering of national mutual savings banks having the powers to accept personal checking accounts prior to December 31, 1975 or; 2. The elimination of the differential in interest rates 1 State banking data are as of June 30, 1973, adjusted to which may be paid by savings banks and by State nonmember reflect bank holding company formations and acquisitions commercial banks on savings and time deposits of less than through October 31, 1973. $100,000. 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LAW DEPARTMENT 377 While both Northeast Bancorp and First Con­ since there are a limited number of open towns necticut have nonbank subsidiaries, none of the in the markets where Northeast operates which are subsidiaries engage in the same activity and all attractive for de novo branching and entry into such subsidiaries operate in separate market areas. even those towns would not place First Connecti­ The Board finds no existing competition would be cut into the principal cities in the market. Thus, eliminated between nonbanking subsidiaries of the there is little likelihood that First Connecticut two holding companies. could become an effective competitor by de novo With respect to the effect of the proposal on branching. As stated earlier, the possibility of new potential competition, First Connecticut, with bank formations appears unlikely in view of the about 8 per cent of market deposits, is the third record of Connecticut banking organizations in this largest banking organization in the Hartford-New regard. With respect to any individual market, the Britain banking market (approximated by the Board cannot conclude that entry of First Connec­ combined Hartford-New Britain SMSA’s). The ticut is likely or that if it occurred it would be two largest banking organizations in the market, through an acquisition that would be competitively which are also the largest organizations in the preferable to the present proposal. Furthermore, State, have a combined market share of 77.5 per it appears that in all of the markets in which cent.3 While consummation of the proposed Northeast presently operates there are other poten­ merger would foreclose the possibility of compe­ tial entrants. The Board therefore concludes con­ tition between Northeast Bancorp and First Con­ summation of the proposal would have no signifi­ necticut in that market, the Board believes the cant adverse effects in markets presently served likelihood of future competition developing be­ by Northeast Bancorp. tween the two banking organizations in the ab­ The Board is of the opinion that any adverse sence of the proposal is limited due to significant effects of the proposed merger upon potential barriers to entry confronting Northeast Bancorp. competition would be outweighed by the antici­ Connecticut’s banking law permits Statewide pated procompetitive effects the proposal would branching subject to home office protection, and have in facilitating the deconcentraion of the the open towns which appear to be attractive for highly concentrated Hartford-New Britain banking de novo entry would still not put Northeast Ban­ market. The two largest banking organizations corp into the major cities in this banking market. have a combined market share of 77.5 per cent The acquisition of an existing bank located in the of commerical bank deposits in the market, while market does not appear likely in view of the fact the third largest banking organization in the mar­ that those available either are not attractive be­ ket, First Connecticut, controls only 8.1 per cent cause they would not place Northeast into the of total market deposits. The share of deposits of major cities or because they seem reluctant to the remaining 21 banks operating in the market become affiliated. The establishment of a de novo range downward from 3.5 per cent of total com­ bank in the relevant market by Northeast Bancorp mercial bank deposits. The entry of Northeast is not a likely alternative since it appears that Bancorp into this market by means of the proposed Connecticut holding companies have been unable merger would create a third viable alternative in to commence such entry in the past. The Board this highly concentrated market for those banking concludes that consummation of the proposed services currently being offered almost exclusively merger will not have any significant adverse effects by the two dominant banking organizations. on potential competition in the Hartford-New The financial conditions and managerial re­ Britain SMSA’s. sources of Northeast Bancorp, First Connecticut, The proposed merger might foreclose the possi­ and their respective groups of banks are satis­ bility that First Connecticut would enter the bank­ factory and their prospects appear favorable. Thus, ing markets where Northeast Bancorp operates banking factors are consistent with approval of the since, as the State’s ninth largest banking organi­ application. Affiliation with Northeast Bancorp zation, it would appear to possess the capability will enable First Connecticut’s subsidiary banks of entering some of these markets. Any such entry to provide new and improved retail and wholesale would, however, have to be through acquisition services, involving Master Charge, self-service teller facilities, international services, new lending programs, lock box services, data processing fa­ cilities, municipal financing, and trust and advi­ sory services, and will enable First Connecticut 3Market data are as of June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal reserve bulletin □ may 1974 to become a more effective, competitive alterna­ Hartford National Corporation additionally tive in its markets. These factors lend weight noted that the resulting proposed holding company toward approval. would be comprised of “mostly” nonmember It is the Board’s judgment that the proposed banks which would give Northeast Bancorp an transaction is in the public interest and should be “unfair operating advantage.” The present pro­ approved. posal does not involve the withdrawal of subsidi­ In another aspect of this application, Hartford ary banks from membership by the proposed re­ National Corporation, a bank holding company sulting bank holding company but the proposed controlling the largest bank in the Hartford-New merger of two holding companies which presently Britain banking market, has objected to the form consist of largely nonmember banks. The Board of the instant proposal and has urged the Board believes, therefore, that Hartford National Cor­ to restructure the proposal by requiring a merger poration’s contention has no bearing on the present of certain subsidiary banks of both holding com­ application. panies in order to remove the “home office pro­ On the basis of the record, the application is tection” granted by State law to the cities of New approved for the reasons summarized above. The Britain and Simsbury. The Connecticut Commis­ transaction shall not be made (a) before the thir­ sioner of Banking responded to this qualified ob­ tieth calendar day following the effective date of jection by commenting that the distribution of this Order or (b) later than three months after the banking offices within the State is a matter for the effective date of this Order, unless such period State legislature and not for federal regulatory is extended for good cause by the Board, or by agencies. the Federal Reserve Bank of Boston pursuant to As a matter of policy, the Board has opposed delegated authority. “home office protection” statutes as devices to By order of the Board of Governors, effective protect a favored few from the rigors of fair April 4, 1974. competition.4 Further, where an application has Voting for this action: Chairman Burns and Governors presented significant adverse competitive effects, Daane, Sheehan, and Holland. Voting against this action: or where an Applicant has voluntarily taken steps Governors Mitchell, Brimmer, and Bucher. that would result in removal of “home office Board action was taken while Governor Daane was a Board Member. protection,” that removal has been considered a procompetitive consideration and a public benefit.5 (Signed) Chester B. Feldberg, Howeveri when, as here, the Board has concluded [seAl] Secretary of the Board. that an application presents net procompetitive effects, the Board has not conditioned its approval Dissenting Statement of upon removal of “home office protection,”6 and Governors Mitchell, Brimmer, and Bucher the Board will not do so in this case. We would deny the application as having adverse effects on Statewide structure and potential com­ 4See Order of January 19, 1973 approving acquisition of bank by CBT Corporation, 59 Fed. Res. Bulletin, 111, 112 petition which are not outweighed by any financial (February 1973); see Statement accompanying Order of July and managerial or convenience and needs consid­ 29, 1971 denying acquisition of bank by Midlantic Banks, Inc., erations. 57 Fed. Res. Bulletin, 684, 686 (August 1971); and Order of February 17, 1972 approving acquisition of bank by United We believe concentration of commercial bank­ Jersey Banks, 58 Fed. Res. Bulletin, 290 (March 1972). ing resources in Connecticut is such that the elim­ 5 See Statement accompanying Order of February 7, 1972 approving acquisition of bank by Midlantic Banks, Inc., 58 ination of a significant existing commercial bank­ Fed. Res. Bulletin, 286, 287-288 (March 1972); Statement ing competitor in the State should not be tolerated accompanying Order of April 7, 1972 approving acquisition unless it were necessary to achieve significant of bank by Midlantic Banks, Inc., 58 Fed. Res. Bulletin, 475, 477 (May 1972); Order of February 17, 1972 approving public benefits. The benefits that we perceive in acquisition of bank by United Jersey Banks, 58 Fed. Res. this instance are not significant. Bulletin, 296 (March 1972); and Order of January 19, 1973 The majority has concluded that the proposed approving acquisition of bank by CBT Corporation, 59 Fed. Res. Bulletin, 111, 112 (February 1973). merger would not have significant adverse effects 6 See Statement accompanying Order of April 17, 1970 upon the Statewide banking structure in Connecti­ approving application by First Connecticut Bancorp, Inc., to become a bank holding company, 56 Fed. Res. Bulletin, cut, apparently relying heavily upon the competi­ 452 (May 1970); and Order of November 16, 1973 approving tive role of mutual savings banks. In this regard, the application of The Connecticut BancFederation to become the majority has relied upon State legislation which a bank holding company through the acquisition of banks, 59 Fed. Res. Bulletin, 898 (December 1973). in about two years will broaden the services of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 379 mutual savings banks and thereby lessen the dis­ need to sponsor one banking organization when tinction between commercial banks and mutual two are capable of offering competitive alterna­ savings banks. Commercial banks and mutual tives, nor do we think it necessary to bring all savings banks do compete for certain consumer extant organizations up to the size of the largest. services, including time and savings deposits, Accordingly, we would deny the application. mortgages and consumer credit (and prospectively, money transfer services). However, the historical ORDERS UNDER SECTION 4 OF role of commercial banks in serving the entire BANK HOLDING COMPANY ACT spectrum of business, consumer and government financial needs will continue for some considerable THE CITIZENS AND SOUTHERN NATIONAL period of time to greatly overshadow the role of BANK, CITIZENS AND SOUTHERN mutual savings banks in serving the public. Ac­ HOLDING COMPANY, cordingly, we would regard mutual savings banks ATLANTA, GEORGIA as no more than partial substitutes for commercial Order Approving Acquisition of banks in an assessment of the structure of Con­ Ison Finance Corporation necticut banking resources. We also believe the proposed merger will have The Citizens and Southern National Bank and adverse effects on potential competition in banking Citizens and Southern Holding Company, its sub­ markets where these holding companies operate. sidiary, both of Atlanta, Georgia, and both bank Northeast Bancorp, as the third largest banking holding companies within the meaning of the Bank organization in Connecticut, is certainly capable Holding Company Act, have applied for the of entering the Hartford-New Britain area in an Board’s approval, under § 4(c)(8) of the Act and effective manner by de novo branching or foothold § 225.4(b)(2) of the Board’s Regulation Y, to acquisition. The merger would eliminate the larg­ acquire shares of Ison Finance Corporation est potential entrant out of only a few remaining (“Company”), Atlanta, Georgia. sources of alternative banking services for this Notice of the applications, affording opportunity highly concentrated market. The merger would for interested persons to submit comments and also have the effect of eliminating first Connecticut views on the public interest factors, has been duly as a significant potential entrant into the markets published (39 Federal Register 7996). The time in which Northeast Bancorp now operates, partic­ for filing comments and views has expired, and ularly the Stamford, Danbury and Norwalk SMSA none has been timely received. banking markets. First Connecticut could enter all The Citizens and Southern National Bank of these SMSA’s by foothold acquisition or by (“Bank”) is the largest banking organization in de novo branching into towns not closed by home the State of Georgia and in the Atlanta market office protection. area, with total deposits of $1.8 billion.1 The majority has concluded that benefits would Company is engaged in consumer finance and accrue to the banking public in the combined consumer sales finance activities, operating seven Hartford-New Britain SMSA’s. We disagree. The offices in Florida, seven in Alabama, two in North consumer will not significantly benefit from an Carolina, two in Georgia, one in South Carolina, additional large competitor in the market inasmuch and one in Louisiana. It had outstandings amount­ as First Connecticut has the resources and the ing to $12.6 million as of year-end 1972. Com­ capability to eventually provide the proposed ser­ pany’s activities are of the type determined by the vices to consumers enumerated in the majority’s Board to be closely related to banking (12 CFR statement. Furthermore, the large New York and 225.4(a)(1)). Boston banks will continue to serve as alternatives By order of January 2, 1974, the Board denied for the wholesale banking sector. Therefore, only applications by Applicants to acquire shares of the intermediate business customer might benefit Company. In that Order, the Board expressed from any competitive enhancement of First Con­ concern as to the effect consummation of the necticut. However, we believe First Connecticut proposed transaction would have upon existing and already has capability and interest in these cus­ probable future competition in various consumer tomers and can, in normal course, further develop lending product markets in the Macon, Georgia such capability. And, as we have previously stated, we believe Northeast Bancorp to be a likely potential competitor in this market. We see no 1 Banking data are as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN □ MAY 1974 area. In order to eliminate any possible adverse tations that the management of Company ha s effect upon competition in markets presently imposed upon the amounts that may be loaned to served both by operating offices of Applicants and individual consumers in single transactions and of Company, Applicants have now modified the upon the types of loans made by Company. Ap­ proposal by undertaking to sell Company’s plicants have stated that, as their subsidiary, operating offices located in Atlanta and Macon as Company would make loans to individual credit­ soon as practicable after consummation of the worthy customers up to the legal limits permitted proposed acquisition, but in no event, later than by State law and would provide mobile home, two years after the date of such consummation. small appliance, and second mortgage loans, in In order to ensure both that the offices will be addition to the types of consumer loans presently completely divested and that they will be divested made by Company. These increases in service and as viable going concerns, the Board expects that the indirect increase in competition that would such offices will be sold as going concerns and result therefrom, as well as the increased avail­ holding substantially the same quality and type of ability of financial resources, and thereby lendable assets as those offices held on January 2, 1974 funds, that the proposed affiliation is expected to and in an amount not less than that amount held provide, constitute benefits to the public. by those offices on that date. In view of the above, Based upon the foregoing and other consid­ it appears that consummation of the proposed erations reflected in the record, the Board has transaction would not have a significant adverse determined that the balance of the public interest effect on competition in either the Atlanta or factors the Board is required to consider under Macon markets. section 4(c)(8) is favorable. Accordingly, the ap­ As Applicants presently do not compete in any plications are hereby approved on the condition geographic market in which Company competes that the operating offices of Company that are outside the State of Georgia, consummation of the located in Atlanta and Macon will be sold as going proposed transaction would not adversely affect concerns and holding substantially the same qual­ existing competition in those markets; nor would ity and type of assets as those offices respectively future competition in those markets be adversely held on January 2, 1974 and in an amount not affected as a substantial number of competitors are less than the amount of such assets held by those represented in each of those markets, and the offices respectively on that date. This determi­ proposed transaction may properly be charac­ nation is subject to the conditions set forth in terized as a “foothold entry” into those markets. section 225.4(c) of Regulation Y and to the In its Order of January 2, 1974, the Board Board’s authority to require such modification or concluded that certain post-employment covenants termination of the activities of a holding company contained in employment agreements between or any of its subsidiaries as the Board finds neces­ Applicants and certain shareholders of Company sary to assure compliance with the provisions and were in restraint of trade and therefore constituted purposes of the Act and the Board’s regulations a significant adverse factor in its consideration of and orders issued thereunder, or to prevent evasion the prior applications. The parties have amended thereof. all employment agreements between Applicants The transaction shall be made not later than and shareholders of Company to remove all cove­ three months after the effective date of this Order, nants not to compete. There neither now exists unless such period is extended for good cause by nor will exist any agreement, written or oral, under the Board or by the Federal Reserve Bank of which shareholders of Company are or would be Atlanta. bound to refrain from competition with Applicants By order of the Board of Governors, effective or Company. April 22, 1974. There is no evidence in the record indicating Voting for this action: Vice Chairman Mitchell and Gover­ that consummation of the proposed transaction nors Brimmer, Sheehan, Bucher, Holland, and Wallich. Ab­ would result in any unfair competition, conflicts sent and not voting: Chairman Burns. of interests, or unsound banking practices. It is anticipated that Company’s affiliation with Appli­ (Signed) Chester B. Feldberg, cants would result in the removal of certain limi­ [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 381 FIRST NATIONAL HOLDING CORP., engaged in direct competition for personal install­ ATLANTA, GEORGIA ment loans in six local markets in Georgia. In five of those markets,2 approval of the instant proposal Order Denying Acquisition of would have a slightly adverse effect on existing Merit Finance Corporation competition while in the sixth market, the Wash­ First National Holding Corp., Atlanta, Georgia, ington County market, approval would have a a bank holding company within the meaning of substantially adverse effect. Upon consummation the Bank Holding Company Act, has applied for of the proposed acquisition, the number of com­ the Board’s approval, under § 4(c)(8) of the Act petitors in Washington County would be reduced and § 225.4(b)(2) of the Board’s Regulation Y, from seven to six and Applicant’s market share to acquire, through its wholly-owned subsidiary, of personal installment loans would increase from Dixie Finance Co., Inc., Atlanta, Georgia, all of 12.5 per cent to 31.3 per cent. The Board con­ the voting shares of Merit Finance Corporation, cludes that the elimination of the existing compe­ Mobile, Alabama (“Merit”). Merit engages in the tition in Washington County constitutes an adverse activities of making, acquiring, or servicing loans factor weighing against approval of the proposed or other extensions of credit for personal, family, transaction. With respect to the question whether consum­ or household purposes, and acting as insurance mation of the proposal would eliminate any sig­ agent or broker in selling credit life, credit accident nificant competition in the future, the Board finds and health, and property damage insurance for that Applicant appears to possess both the re­ collateral supporting loans that are made by it. sources and expertise to enter the markets that are Such activities have been determined by the Board presently served by Merit de novo. However, no to be closely related to banking (12 CFR significant market served by Merit appears con­ 225.4(a)(1) and (9)(ii)). centrated and the recent closing of certain of its Notice of the application, affording opportunity offices indicates that it is a weakening competitive for interested persons to submit comments and force. The Board therefore concludes that con­ views on the public interest factors, has been duly summation of the proposal would have at the most published (38 Federal Register 32290). The time only very slight adverse effects with respect to the for filing comments and views has expired, and elimination of probable future competition. none has been timely received. The basic balancing test of section 4(c)(8) re­ Applicant is the one-bank holding company quires a showing of public benefits stemming from parent of The First National Bank of Atlanta, the proposed acquisition that outweigh the adverse Atlanta, Georgia, which holds deposits of $1 bil­ competitive effects described above. Applicant has lion, representing 9.5 per cent of the total deposits sought to meet its burden of demonstrating that in commercial banks in Georgia.1 Applicant also its operation of the proposed nonbanking activity controls nonbanking subsidiaries which engage in will be in the public interest. Applicant proposes consumer financing, mortgage banking, advising to inject equity capital into Merit in order to a real estate investment trust, computer services, strengthen Merit’s capital position and make personal property leasing, and factoring. available greater amounts of loanable funds for Merit, a subsidiary of Walter E. Heller Interna­ lending in the communities served. Applicant fur­ tional, Inc., has total receivables of $23.2 million ther proposes to increase the efficiency of existing (as of June 30, 1973). Headquartered in Mobile, offices of Merit through centralized purchasing, Alabama, Merit has 62 offices located in seven advertising, and recordkeeping. Finally, Applicant States: Alabama, Oklahoma, Georgia, Indiana, proposes to establish de novo offices of Merit in Tennessee, Florida and Louisiana. Indiana, Oklahoma, and Tennessee, in areas where The relevant product market to be considered offices of Merit already exist, in order to maximize in evaluating the competitive effects of this pro­ the benefits of supervision. Each of the claimed posal is the making of personal installment loans. efficiencies appears to be equally achievable Applicant engages in this activity through its through an affiliation less anticompetitive than that banking subsidiary and four finance company sub­ sidiaries which operate 132 offices in six States in the Southeast. Applicant and Merit are presently 2Those markets include Chatham County, the Atlanta SMSA (approximated by Clay, Cobb, DeKalb, Fulton, and Gwinnett banking data are as of June 30, 1973. Counties), Glynn County, Bibb County and Whitfield County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN □ MAY 1974 proposed herein. In any event, the nature of the an additional adverse factor under § 4(c)(8) benefits claimed are such as to fall short of out­ weighing against approval of the application. weighing the adverse competitive effect which Governor Brimmer additionally believes that the would result from approval of the proposed trans­ acquisition of Merit, which is now owned by action. Walter E. Heller International Corp., is an ex­ Based upon the foregoing and other consid­ ample of an increasing tendency by bank holding erations reflected in the record, the Board has companies to trade nonbanking subsidiaries among determined that the public interest factors the themselves. He believed such a trend should be Board is required to consider under section 4(c)(8) discouraged since—once a bank holding company of the Act do not outweigh the possible adverse is serving a community through a nonbanking effects. Accordingly, the application is hereby subsidiary—the acquisition of that subsidiary by denied. another bank holding company would not gener­ By order of the Board of Governors, effective ally result in any net advantage to the community. April 18, 1974. In view of its present parent’s ability to strengthen Merit, Governor Brimmer finds no public benefits Voting for this action: Chairman Burns and Governors to be gained from approval. Brimmer, Sheehan, Holland, and Wallich. Absent and not voting: Governors Mitchell and Bucher. (Signed) Chester B. Feldberg, [seal] Secretary of the Board. THE FORT WORTH NATIONAL CORPORA­ TION, FORT WORTH, TEXAS, AND Concurring Statement of SHAWMUT ASSOCIATION, INC., Governor Brimmer and Governor Holland BOSTON, MASSACHUSETTS Order Approving Acquisition of American We have joined our colleagues in voting to deny Cattle and Crop Services Corp. the application of First National Holding Corp. to acquire Merit Finance Corporation. We agree that The Fort Worth National Corporation, Fort Applicant has not demonstrated public benefits Worth, Texas (“Fort Worth”), and Shawmut As­ which outweigh the substantially adverse effects sociation, Inc., Boston, Massachusetts (“Shaw­ this acquisition would have on existing competi­ mut”), bank holding companies within the mean­ tion in Washington County, Georgia. However, ing of the Bank Holding Company Act, have we place more weight than our colleagues on the applied for the Board’s approval, under section adverse effects the proposed acquisition would 4(c)(8) of the Act and § 225.4(b) of the Board’s have on probable future competition. Regulation Y, to form a joint venture by acquiring We believe Applicant to be one of the most voting shares of American Cattle and Crop Ser­ likely entrants into a number of markets now vices Corp., Guymon, Oklahoma (“American served by Merit. Applicant has been aggressive Cattle”), a de novo corporation. American Cattle in acquiring consumer finance companies—having will engage de novo in the activities of agricultural acquired four such firms in the last two years. commodity financing and servicing or acquiring, Applicant has further demonstrated its willingness for its own account or for the account of others, and ability to enter new markets on a de novo loans and other extensions of credit to agricultural basis. For example, Applicant has established nine enterprises or secured by agricultural commodi­ additional consumer finance offices in Alabama ties. Such activities have been determined by the and four such offices in Mississippi through its Board to be closely related to banking (12 CFR present subsidiaries. Thus, Applicant has demon­ 225.4(a)(1) and (3)). strated that it possesses both the resources and the Notice of the applications, affording opportunity expertise to enter new markets de novo. In the for interested persons to submit comments and absence of the proposed acquisition, Applicant views on the public interest factors, has been duly may be expected to continue such expansion and published (38 Federal Register 32176). The time it seems reasonably possible to us that such ex­ for filing comments and views has expired and the pansion might bring Applicant into competition Board has considered all comments received (in­ with Merit in additional markets where they do cluding those of Amarillo National Bank, not presently compete. Accordingly, the elimina­ Amarillo, Texas, and The First National Bank, tion of this probable future competition constitutes Amarillo, Texas (hereinafter called “Protestants”) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 383 in the light of the public interest factors set forth American Cattle does direct commodity financing in section 4(c)(8) of the Act (12 U.S.C. 1843(c)). for its own account, it will be engaged in an Fort Worth controls 10 banks with aggregate activity also engaged in by certain of the banking deposits of about $1 billion, representing 3.1 per subsidiaries of both Fort Worth and Shawmut. cent of total deposits in commercial banks in However, neither Fort Worth nor Shawmut are Texas, and is the sixth largest multibank holding engaged in the primary function to be performed company in the State of Texas.1 Through its non­ by the joint venture, that is, the originating, plac­ banking subsidiaries, Fort Worth is engaged in ing and servicing of loans to the feedlot and other mortgage banking, land development,2 and acting agricultural industries. Since American Cattle is as agent for the sale of fire and casualty insurance.3 a de novo subsidiary, no existing competition Shawmut, the second largest banking organi­ would be eliminated. zation in the State of Massachusetts, controls 10 The extent to which the proposed joint venture banks with aggregate deposits of $1.6 billion, would eliminate potential competition depends on representing 12.7 per cent of total commercial the likelihood of either Fort Worth or Shawmut bank deposits in Massachusetts. Shawmut is en­ entering the market. This likelihood appears re­ gaged in factoring through a joint venture with mote because the joint venture is based upon the Milberg Factors, Inc., New York, New York, and combining of the mutually exclusive expertise is engaged in commercial financing and securities possessed by each parent bank holding company. clearance through direct subsidiaries. Shawmut has extensive money market expertise, Through American Cattle, Fort Worth and especially in the area of bankers acceptance fin­ Shawmut propose to engage principally in origi­ ancing, and will therefore lend such expertise to nating and servicing agricultural commodity loans, the supervision of the financing portion of the joint including cattle feedlot financing in a six-State venture. In addition, Shawmut is located close to service area including Texas, Oklahoma, Kansas, the financial center of the country, thus enabling Nebraska, Colorado, and New Mexico. The ser­ it to assist in placing loans in the Northeast. Fort vicing of such financing will consist of “packag­ Worth, located near feedlots and agricultural ing” loans to cattle feedlot operations, and more areas, has engaged in cattle financing throughout generally the commodity industry, then placing its existence and will contribute its knowledge of these loans with prearranged banks (including the technical aspects of financing the feedlot in­ subsidiary banks of Fort Worth and Shawmut). dustry. A successful venture in this activity will American Cattle will also provide supervision and require both large amounts of financing and con­ inspection of the collateral for these loans. siderable technical knowledge of the cattle in­ American Cattle will have its main office in dustry. Neither co-venturer has both of these re­ Guymon, Oklahoma, and a loan production office quirements, so the likelihood that either would in Amarillo, Texas. While American Cattle in­ engage in this activity alone appears limited. The tends to operate primarily in a servicing capacity, Board concludes that the proposed joint venture it may occasionally become involved in direct would not adversely affect potential competition. commodity financing for its own account for pur­ Protestants to these applications contend that poses of bridge financing. To the extent that they should be denied because no benefits will result to the public since there can be no demon­ strated need for this de novo corporation. Protes­ tants contend that the agricultural credit needs of ’Banking data are as of June 30, 1973, adjusted to reflect the area involved are now being adequately met bank holding company formations and acquisitions approved by banks and other financial institutions through by the Board through April 1, 1974. normal correspondent banking relationships. 2Fort Worth, in connection with the Board’s approval on March 30, 1973 of the application to acquire Exchange Bank In the circumstances of this proposal, the Board & Trust Company, Dallas, Texas, committed itself to terminate finds that the proposed joint venture would result by March 30, 1975, its land development activities. (See 38 in significant public benefits. The financing needs Federal Register 8694, April 5, 1973.) 3Ownership of shares in the insurance agency corporation of the agricultural commodity business, particu­ falls within ten-year authority of section 4(a)(2) of the Act larly the cattle feedlot business in the Southwestern since Applicant owned such shares when it became a bank holding company by virtue of the 1970 Amendments. Appli­ United States, has created an increased demand cant has until December 31, 1980 either to dispose of these for additional sources of capital. The local financ­ shares or terminate the impermissible part of the insurance ing institutions are apparently having some agency’s operations and file an application under § 4(c)(8) of the Act for permission to retain such shares. difficulty meeting the expanded credit demands Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN □ MAY 1974 and are participating in loans with large corre­ By order of the Board of Governors, effective spondents in other sectors of the country. Ameri­ April 15, 1974. can Cattle would serve as an additional and inno­ Voting for this action: Vice Chairman Mitchell and Gover­ vative competitive source for such agricultural nors Sheehan, Holland, and Wallich. Voting against this ac­ loans in the relevant area. The banks participating tion: Governors Brimmer and Bucher. Absent and not voting: in the loans to feedlots would use bankers accep­ Chairman Burns. tances as their instrument for financing. Thus, the (Signed) Chester B. Feldberg, availability of such agricultural financing may not [seal] Secretary of the Board. be subject to the same degree of cyclical fluctua­ tion that has occurred in the past. Furthermore, Dissenting Statement of the joint venture will serve to funnel credit from Governors Brimmer and Bucher a national market to the six-State service area, thereby increasing the volume of financing avail­ We would deny the applications by Fort Worth able in the relevant area. On this basis, the Board National Corporation and Shawmut Association, concludes that the proposed joint venture is likely Inc. to engage in the proposed activity through to result in greater convenience and efficiency in the formation of a de novo joint venture. The the financing of commodities and feedlots, all of authority granted to the Board by section 4(c)(8) which should inure to the benefit of the public. of the Bank Holding Company Act to supervise There is no evidence in the record indicating the expansion of bank holding companies into that consummation of the present proposal by two nonbanking activities requires careful and detailed primarily regional oriented bank holding compa­ consideration of potential abuses which might arise nies to engage in a joint venture would result in in the conduct of such activities. With regard to undue concentration of resources, unfair competi­ the present proposal, we do not believe the Board tion, conflicts of interests, unsound banking prac­ has given due weight to possible abuses which may tices, or other adverse effects. However, although occur simply because of the enduring and formal not of concern in this case, the Board cautions legal structure which will tie these two holding that it will examine carefully applications involv­ companies together. ing joint ventures between bank holding compa­ The majority concludes that the proposed de nies, particularly those which compete on a na­ novo joint venture may not have a significant tional scale, in order to determine whether there adverse effect on existing or potential competition will result either a lessening of competition in in the relevant product market—which is agricul­ other product markets in which the two compete tural commodity financing. However, in our view, or an undue concentration of resources. such analysis ignores the anti-competitive impli­ Based upon the foregoing and other consid­ cations in markets other than those entered into erations reflected in the record, the Board has by the joint venture. A joint venture by its very determined that the balance of the public interest nature requires a degree of collaboration among factors the Board is required to consider under the parents. This spirit of cooperation and harmony section 4(c)(8) is favorable. Accordingly, the ap­ could encourage the development of adverse com­ plications are hereby approved. This determination petitive effects in the other product and geographic is subject to the conditions set forth in section markets in which the parents already compete. 225.4(c) of Regulation Y and to the Board’s au­ While Fort Worth and Shawmut are not among thority to require such modification or termination the largest bank holding companies in the country, of the activities of a holding company or any of they do, in fact, compete in various national fi­ its subsidiaries as the Board finds necessary to nancial markets, such as the market for large assure compliance with the provisions and pur­ business loans or certificates of deposit. Moreover, poses of the Act and the Board’s regulations and a joint venture relationship could, and probably orders issued thereunder, or to prevent evasion would, dissuade the parent companies from enter­ thereof. ing into other product and geographical markets The transaction shall be made not later than where they might compete in the future. Accord­ three months after the effective date of this Order, ingly, we believe the proposed joint venture would unless such period is extended for good cause by result in decreased competition in the long-run. the Board or by the Federal Reserve Banks of In addition to the potential dangers to competi­ Boston or Dallas. tion, we foresee the possibility of major national Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 385 holding companies forming such combinations CAROLINA BANCORP, INC., which could result in an undue concentration of SANFORD, NORTH CAROLINA resources. The present proposal standing alone Order Approving Acquisition of may not appear particularly harmful. Yet, if ap­ The Friendly Loan Company, Inc. proved, we fear it may lead, in time, to an inand Denying Acquisition of dustry-wide development of a matrix of coopera­ National Finance Company, Inc. tive relationships among bank holding companies. In our view, the Board should not sanction the Carolina BanCorp, Inc., Sanford, North Caro­ present proposal, because this action could serve lina, a bank holding company within the meaning to promote a trend toward collaboration among the of the Bank Holding Company Act, has applied, nation’s largest holding companies through the in separate applications, for the Board’s approval, formation of joint ventures. Such a development under § 4(c)(8) of the Act and § 225.4(b)(2) of would not serve the public interest. the Board’s Regulation Y, to acquire all of the We agree that the proposed joint venture may voting shares of National Finance Company, Inc. produce short-term benefits to the public by facili­ (“National”) and The Friendly Loan Company, tating the transfer of funds from the Northeast to Inc. (“Friendly”), both of Rockingham, North cattle feedlot operations in the Southwest that are Carolina, companies that engage in the activities in need of credit. Even though this is a legitimate of consumer finance, dealer financing and acting objective, we believe that the basic purpose of the as sales agent for credit life, and credit accident proposed joint venture clearly could be achieved and health insurance on loans in connection in ways potentially less dangerous than through therewith. Such activities have been determined a joint venture. For example, Fort Worth could by the Board to be closely related to banking (12 originate and service such loans with Shawmut CFR 225.4(a)(1) and (9)). placing the loans with banks in the Northeast in Notice of the applications, affording opportunity return for a placement fee. A similar arrangement for interested persons to submit comments and or the sale of loan participations could be made views on the public interest factors, have been duly with any correspondent bank. Such arrangements published (38 Federal Register 34834). The time would tend to be less permanant and involve lesser for filing comments and views has expired, and prospects of diminished competition than the none has been timely received. ownership ties of a joint venture. In addition to Applicant is a recently formed bank holding these possibilities, bank holding companies could company and controls one bank, The Carolina enter by establishing subsidiary companies spe­ Bank, Sanford, North Carolina (“Bank”) (depos­ cializing in agricultural commodity financing to its of $71.6 million), representing 0.7 per cent of cattle feeders and other agricultural industries or total commercial bank deposits in the State.1 Bank through other means develop these capabilities to operates 12 branches in five counties (Wake, Har­ service this market. These entries could be nett, Lee, Moore, and Chatam Counties) through­ operated by experienced, locally-hired managers out North Carolina. and financed from the parent’s resources. In fact, National and Friendly (“Companies”) are both this market is sufficiently attractive and the barriers licensed small loan companies regulated by the to entry low enough in agricultural commodity North Carolina Consumer Finance Act2 and had financing that other bank holding companies have combined total assets of $3.4 million at year end shown interest in operations of this type rather than 1972.3 Each company has one subsidiary which through the joint ventures we oppose in principle. holds a small amount of dealer originated paper These alternatives would have beneficial effects but is otherwise not an operating entity. Compa­ similar to the present proposal. nies, which are commonly owned and managed, The majority has not demonstrated to our satis­ faction that the public benefits anticipated from the proposed joint venture outweigh the possible ad­ verse consequences. We are concerned that, in *All banking data are as of June 30, 1973. 2The loan limit for a small loan company is $900; the approving the proposed joint venture, the Board effective maximum interest rates on these loans start at 18 per is setting a precedent which will encourage future cent add-on for a loan less than $300 and gradually decreases proposals involving such relationships. Conse­ to 8 per cent add-on for that portion of a loan in excess of $600. quently, we dissent from the majority’s approval 3Unless otherwise noted, all financial data are as of De­ of the applications. cember 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN □ MAY 1974 also sell credit life and credit accident and health companies with aggregate personal installment insurance to its borrowers. loan outstandings of $5.2 million. Bank has loans Friendly operates its only office in Rockingham, of approximately $1 million, representing 19.4 per North Carolina, and has approximately $600,000 cent, and National has loans of almost $300,000, of total loans outstanding. National, while head­ representing 5.7 per cent, of the total Lee County quartered in Rockingham, does not make any loans personal installment loans outstanding. In Moore in that location; it operates 12 loan offices in 10 County there are six banks and three small loan counties in the central and eastern portion of the companies which together have $3.3 million of State and has total loans outstanding of $2.6 mil­ personal installment loans outstanding. Bank has lion. Companies’ product for considering the loans of approximately $900,000, representing competitive aspects of this proposal is personal 27.4 per cent, and National has loans of approxi­ installment loans; the relevant geographic market mately $500,000, or 14.7 per cent, of all personal for these types of loans is approximated by the installment loans outstanding in this market area. county in which each of Companies’ offices is From the facts of record, it appears that significant located. competition exists between Applicant and National National and Bank make personal installment in making personal installment loans in Lee and loans in four common market areas in the State: Moore Counties. Approval of Applicant’s acquisi­ Wake, Harnett, Lee, and Moore Counties.4 In tion of National would eliminate this existing Wake County, National holds under 2 per cent competition, remove an alternative source of con­ of the total $16.7 million in personal installment sumer credit, and increase Applicant’s share of loan outstandings generated by the 22 small loan personal installment loans made in the Lee County companies operating therein. An analysis of area from approximately 19 to 25 per cent, and Bank’s operations indicates that it is an insig­ in the Moore County area from approximately 27 nificant competitor for such loans in Wake County. to 42 per cent. Accordingly, the Board concludes In Harnett County, the aggregate total outstandings that the proposed acquisition of National would for five small loan companies is $2.3 million; have significant adverse effects on existing com­ National’s two offices have approximately 11 per petition. cent thereof. Bank’s branch in Harnett County was Section 4(c)(8) of the Bank Holding Company recently opened and, as of June 30, 1972, did not Act requires the Board to find that performance have any loans in the area. From the facts of by National as an affiliate of Applicant “can rea­ record, it appears that no significant direct compe­ sonably be expected to produce benefits to the tition exists between National and Bank in the public such as greater convenience, increased personal installment loan market in Wake and competition, or gains in efficiency that outweigh Harnett Counties and that approval herein would possible adverse effects, such as undue concentra­ have no significant adverse effects on competition tion of resources, decreased or unfair competition, in these two areas. conflicts of interests or unsound banking prac­ By comparison, in the Lee County market, there tices.” Applicant has the burden of demonstrating are three commercial banks and five small loan that the proposed acquisition will be in the public interest. In seeking to meet this burden, Applicant indicates that affiliation would give National greater flexibility in acquiring funds to lend to its 4The Board has previously determined that consumer finance customers and would permit National to expand companies generally compete with commercial banks in the its current services. Applicant’s claims of public area of small loans to individuals (see Board Order of August 3, 1973, denying acquisition of Public Loan Company by benefits to be derived from consummation of the Bankers Trust New Yol*k, 59 Federal Reserve Bulletin 694). proposal lacks support either in the form of objec­ Accordingly, in a given situation, the acquisition of a consumer tive evidence or in the form of firm policy com­ finance company by a commercial banking organization may result in the elimination of existing competition in those geo­ mitments. Accordingly, upon consideration of the graphic markets in which both compete. In its analysis of this aforementioned anticompetitive factors in connec­ application, the Board has considered Applicant’s contention tion with the National acquisition, the Board finds that inasmuch as Companies primarily make small loans at high interest rates to high-risk customers, they should not be that the public benefits to be derived from this regarded as competing with Bank. However, after evaluating affiliation do not outweigh the adverse competitive such factors as the average rates charged on loans, the loan loss experiences, and the average loan sizes of Applicant and effects of the proposal. Companies, the Board has determined that each represents a On the other hand, the Board does not regard competitive alternative for persons seeking a personal install­ ment loan in those geographic markets in which they compete. Applicant’s application to acquire Friendly in a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 387 similar light. Bank and Friendly do not make for good cause by the Board or by the Federal personal installment loans in the same geographic Reserve Bank of Richmond. market5 and it appears therefore that approval By order of the Board of Governors, effective would not eliminate any significant existing com­ April 11, 1974. petition between them. In addition, Friendly acts Denial of acquisition of National Finance Company, Inc., as agent for the sale of credit life and credit Rockingham, North Carolina. Voting for this action: Vice accident and health insurance in connection with Chairman Mitchell and Governors Brimmer, Bucher, Holland, personal installment loans made by it. Considering and Wallich. Voting against this action: Governor Sheehan. Absent and not voting: Chairman Burns. the size and scope of Friendly’s business, it does Approval of acquisition of The Friendly Loan Company, not appear that Applicant’s acquisition of Friendly Inc., Rockingham, North Carolina. Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, would have a significantly adverse effect on com­ Holland, and Wallich. Absent and not voting: Chairman Burns. petition in this product line. The Board concludes that competitive considerations are consistent with (Signed) C hester B. Feldberg, approval of the Friendly application. In addition, [seal] Secretary of the Board. as indicated above, affiliation with Applicant would increase the financial resources available to Statement of Governor Sheehan, Friendly, thereby enabling it to become a more Concurring in Part and Dissenting active competitor in the area which it serves. There in Part is no evidence in the record to indicate that the I would approve the applications by Carolina acquisition of Friendly would result in any undue BanCorp, Inc. to acquire not only The Friendly concentration of resources, unfair competition, Loan Company, Inc., but also National Finance conflicts of interests, or unsound banking prac­ Company, Inc. The majority’s denial is based on tices. the premise that commercial banks and small loan Based on the foregoing and other considerations companies serve substantially the same customers. reflected in the record, the Board has determined, Statistics compiled from the financial institutions with respect to the application to acquire National, operating in Lee County and Moore County sug­ that the public benefits which the Board is required gest to me that very little competitive overlap to consider under § 4(c)(8) of the Act do not presently exists between Bank and National. Na­ outweigh the adverse competitive effects of that tional’s average annual percentage rate (APR) is proposal. Accordingly, the Application to acquire approximately 30 per cent, twice the average National is hereby denied. APR of Bank’s personal installment loans. Na­ Based on the foregoing and other considerations tional’s net loan write-off experience is ten times reflected in the record, the Board has determined, larger than Bank’s and National’s average loan with respect to the application to acquire Friendly, size is less than one-half that of Bank. that the balance of the public interest factors the In Lee County, where National holds only 10.7 Board is required to consider under § 4(c)(8) is per cent of total finance company outstandings, favorable. Accordingly, the application to acquire Bank competes with branches of the fourth, fifth Friendly is hereby approved. This determination and seventh largest banks in North Carolina. Bank is subject to the conditions set forth in § 225.4(c) competes with five banks in Moore County, in­ of Regulation Y and to the Board’s authority to cluding the first, third and seventh largest in the require such modification or termination of the State. The largest bank in North Carolina has activities of a holding company or any of its deposits 36 times greater than Bank’s total depos­ subsidiaries as the Board finds necessary to assure its. compliance with the provisions and purposes of Both Bank and National are small financial the Act and the Board’s regulations and orders institutions by industry standards. In my view, it issued thereunder, or to prevent evasion thereof. is unlikely that affiliation of financial institutions The transaction to acquire Friendly shall be of this size would substantially lessen competition made not later than three months after the effective when faced with existing competition from five date of this Order, unless such period is extended of the State’s seven largest banks. Banking in the State of North Carolina is highly concentrated. The five largest banks control 77.6 per cent of total State-wide deposits. Strengthening 5Friendly operated only in Richmond County; Bank, as regional financial institutions such as bank is likely previously indicated, operates in Wake, Harnett, Lee, Moore and Chatam Counties. to increase rather than decrease competition in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN □ MAY 1974 those markets where the State’s largest banks are totaled $320 million in the three-county Los An­ competing. geles market, placing Bank eighth among all Public benefits derived from facilitating Na­ mortgage lenders in that market and representing tional’s ability to obtain funds through Applicant about 2.8 per cent of all mortgages recorded in and subsequently to expand its services and in­ that area. crease the amount of funds available to the bor­ As of December 31, 1972, Company was a rowing public, in my opinion, would outweigh any one-bank holding company controlling, among anticompetitive effects that might arise from Ap­ other subsidiaries, Kassler & Company plicant’s acquisition of National. (“Kassler”), a mortgage banking company. Today, Kassler is Company’s only subsidiary and Company’s sole activity is confined to mortgage SECURITY PACIFIC CORPORATION, banking. Incorporated in Colorado in 1924, LOS ANGELES, CALIFORNIA Kassler was acquired by Company in 1962. By 1969, Kassler had offices in Colorado, Arizona, Order Approving Acquisition of Midwestern Kansas, Washington and Texas. In 1970, it ac­ Financial Corporation quired John R. Delfino, Inc., a small mortgage Security Pacific Corporation, Los Angeles, Cal­ banking firm in southern California, and in 1972, ifornia, a bank holding company within the mean­ acquired a loan servicing portfolio of $23 million ing of the Bank Holding Company Act, has ap­ from Crawshaw Mortgage and Investment Com­ plied for the Board’s approval, under § 4(c)(8) pany, Encino, California. In addition, Kassler of the Act and § 225.4(b)(2) of the Board’s Regu­ acquired certain assets, including the servicing lation Y, to acquire all of the voting shares of portfolio, of Sparkman & McLean Corporation, the successor by merger to Midwestern Financial a mortgage banking firm with offices in Washing­ Corporation, Denver, Colorado (“Company”), a ton, Alaska and Hawaii. By 1973, Kassler company that engages in the activity of mortgage operated 32 offices in 11 States and, based on a banking. Such activity has been determined by the servicing portfolio of approximately $956 million, Board to be closely related to banking (12 CFR ranked as the fifteenth largest mortgage banking 225.4(a)(1)). The company into which Company firm in the country. is to be merged has no significance except as a Ten of Kassler’s offices are in the State of means to facilitate the acquisition of the voting California, and seven of these are located in the shares of Company. Accordingly, the proposed Los Angeles area. Insofar as its California opera­ acquisition of shares of the successor organization tions are concerned, Kassler’s mortgage loan is treated herein as the proposed acquisition of the originations are principally confined to loans on shares of Company. 1-4 family residences. While precise market data Notice of the application, affording opportunity is not available, it appears that Kassler’s origina­ for interested persons to submit comments and tions of approximately $53 million in the threeviews on the public interest factors, has been duly county Los Angeles area in 1972 represent an published (38 Federal Register 21319). The time estimated market share of 1 per cent of all mort­ for filing comments and views has expired, and gages recorded on 1-4 family residences in that none has been timely received. area. Based on its 1972 originations, Kassler is Applicant controls one bank, Security Pacific not ranked among the 25 largest mortgage lenders National Bank (“Bank”) with deposits of $9 bil­ serving this market. Combined with Bank’s esti­ lion, representing approximately 16 per cent of the mated share of 2.8 per cent for all such loans in deposits in commercial banks in the State of Cali­ the Los Angeles market, Board approval of the fornia. Although Bank operates 471 offices proposed acquisition would give Applicant an ap­ throughout California, approximately 90 per cent proximate share of 3.8 per cent of the 1-4 family of its IPC deposits are derived from Los Angeles residential mortgage loan market within the Los County and the neighboring counties of Ventura Angeles-Ventura-Orange County area. and Orange, placing it second among all commer­ Bank and Kassler are also active in the origina­ cial banks that compete in that area. Bank com­ tion of mortgage, loans in the San Francisco Bay menced servicing mortgage loans for others in area. However, in this market their 1972 origina­ 1970, and by year-end 1972 held a servicing tions of $63 million and $32 million, respectively, porfolio of $155 million for its institutional inves­ represent a combined share of only 1.6 per cent tors. Bank’s mortgage loan originations in 1972 of all mortgages recorded on 1-4 family resi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 389 dences. Thus, the direct competition in which probably be somewhat tempered by a lack of Bank and Kassler are engaged in both the Los specialized personnel to support new loan produc­ Angeles and San Francisco markets cannot be tion offices. For these reasons such expansion as viewed as substantial, considering the size of those will occur is likely to be confined within the State markets and the number of competitors in each of California and probably would not take place market.1 in banking markets more distantly removed from Both institutions engage in mortgage servicing. Bank’s headquarters. Thus, Bank is not now nor Kassler has a servicing portfolio of $956 million likely to become in the foreseeable future a viable and Bank has a portfolio for outside investors competitive force to Kassler in those markets out­ which totals $155 million. However, only $169 side the State where the preponderance of million in loans from Kassler’s 1972 servicing Kassler’s mortgage originations are made. View­ portfolio were on mortgages originated in Califor­ ing the instant proposal in the context of all of nia. Thus, in the State of California each institu­ the geographical markets in which Bank and tion holds an estimated 0.7 per cent of the total Kassler operate, consummation of the proposed mortgage servicing business. In view of the low acquisition would not, in the Board’s judgment, market shares held by Kassler and Bank, the Board tend to substantially lessen potential competition. concludes, that consummation of the proposed As respects local California markets, however, the acquisition would not eliminate significant compe­ proposed acquisition would have slightly adverse tition in California’s mortgage servicing market. competitive effects, as it would eliminate a small Kassler’s potential to diversify its service lines amount of existing competition between the two and expand the present scope of its mortgage institutions in the Los Angeles and San Francisco banking operations appears to have been severely markets and foreclose a minimal amount of poten­ restricted by the losses incurred by the company tial competition in other California markets. during the last 15 months. Moreover, based on The Board also closely examined the present a tangible net worth of 3.5 million as of June 30, proposal with respect to the possible adverse effect 1973, its capitalization is somewhat lower than which might arise from an undue concentration similar mortgage banking firms, for supporting a of resources. In the Board’s judgment, any con­ loan warehousing volume of $122 million. Conse­ cern over an undue concentration of resources quently, Kassler has restricted its loan production resulting from consummation of the proposed ac­ volume and is now attempting to sell off those quisition herein is unwarranted, considering not unprofitable loans in warehouses. While Kassler only the size but the total resources available to apparently remains a viable firm, it could not be each institution. Kassler’s resources, in particular, expected to continue to offer the same aggressive do not appear sufficient to permit it to continue degree of competition to Bank in California or to a viable program of expansion or retain its com­ its other competitors outside the State. Accord­ petitive effectiveness without the financial assist­ ingly, it is the Board’s judgment that consumma­ ance Applicant can offer. tion of the instant proposal will not substantially Denial of the present application because of the lessen whatever potential competition that Kassler slightly adverse effects that consummation of the might have been expected to offer Applicant. acquisition would have in California does not Bank, on the other hand, is and will remain appear to be justified in view of the substantial a viable competitive force in mortgage banking benefits that would flow to the public outside the in the State of California. Its capability to expand State where the greatest volume of Kassler’s busi­ into other mortgage banking markets in the State ness takes place. Applicant proposes to inject $3 is enhanced by its available resources and proxim­ million in new capital funds into Kassler immedi­ ity to those markets. However, based on past ately upon consummation of the proposal to permit performance,2 Bank’s future rate of expansion will the expansion of its mortgage banking activities to other localities in the Far West, Midwest, and Southeastern sections of the country. In addition, Applicant can be expected to provide the short­ ’Over 200 organizations currently compete for mortgage term financial support necessary for Kassler to loans in both the Los Angeles and San Francisco markets. diversify its product line into such areas as con­ 2Historically, Security Pacific’s lack of aggressiveness is demonstrated by its late entry into the field of mortgage banking struction lending and the financing of incomeas well as the fact it was one of the last of the country’s producing properties. It is anticipated that financial institutions of similar size to form a bank holding Kassler’s present inability to position loans in its company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN □ MAY 1974 own portfolio will be considerably alleviated by could permit it to expand further into other Cali­ Applicant’s own warehousing capacity. With only fornia markets, either alone or in affiliation with 19 per cent of Kassler’s loan servicing portfolio another financial organization whose current and in the State of California, the majority of the prospective operations center in markets different benefits cited herein will accrue principally in the from those in which Kassler is active. The prox­ Far West, Midwest, and Southeastern sections of imity of Kassler and Security Pacific and their the country. In the Board’s judgment these public policy of continued expansion are not in dispute. benefits are more than sufficient to outweigh the Thus, in our view, consummation of the proposal slightly adverse competitive effects the application will tend substantially to lessen potential competi­ presents in local mortgage banking markets in tion between the two institutions. California. The talent and financial resources that can be There is no evidence in the record to indicate commanded by a $9 billion institution is consid­ that the proposed transaction would result in any erable. The majority, however, points to Appli­ undue concentration of resources, unfair competi­ cant’s lack of specialized personnel to support new tion, conflicts of interest, or unsound banking mortgage loan production offices. While manage­ practices. Based upon the foregoing and other rial talent in mortgage banking may be at a pre­ considerations reflected in the record, the Board mium, we do not regard it as beyond the capacity has determined that the balance of the public of Security Pacific to assemble. And there is no interest factors the Board is required to consider evidence of record to suggest that this Applicant under section 4(c)(8) is favorable. Accordingly, has attempted—but failed—to attract sufficient the application is hereby approved. This determi­ managerial talent. nation is subject to the conditions set forth in Considering the fact that the two institutions did section 225.4(c) of Regulation Y and to the not enter into direct competition with each other Board’s authority to require such modification or until 1970, their rapidly expanded market positions termination of the activities of a holding company in both the Los Angeles and San Francisco markets or any of its subsidiaries as the Board finds neces­ attest to their vigorous capability in the field of sary to assure compliance with the provisions and mortgage banking. Given this strength, the future purposes of the Act and the Board’s regulations capabilities of each firm can be projected. The and orders issued thereunder, or to prevent evasion desire of Security Pacific to support the expansion thereof. plans of Kassler appears achievable within its The transaction shall be made not later than present capability. Were this same assist­ three months after the effective date of this Order, ance—now planned for Kassler—provided a de unless such period is extended for good cause by novo organization, or an acquisition smaller in size the Board or by the Federal Reserve Bank of San than Kassler, Security Pacific could effectively Francisco. support a new market competitor. The consequent By order of the Board of Governors, effective public benefits, we believe, would prove greater April 2, 1974. over time than those likely to result from the present proposal. As the Conference Report ac­ Voting for this action: Governors Mitchell, Daane, Sheehan, companying the 1970 Amendments to the Act and Bucher. Voting against this action: Chairman Burns and Governors Brimmer and Holland. makes clear— Board action was taken while Governor Daane was a Board member. Where a bank holding company enters a market through acquisition of a major going concern, it may not have the (Signed) C hester B. Feldberg, incentive to compete vigorously, thereby bringing the possible [seal] Secretary of the Board. benefits into play, as it would immediately succeed to what it might consider its fair share of the market. On the other hand, where a bank holding company enters a new market de novo, or through acquisition of a small firm, as opposed to acquisition of a substantial competitor, its desire to succeed Dissenting Statement of Chairman Burns in its new endeavor is more likely to be competitive, pp. 17-18. and Governors Brimmer and Holland Applicant is not only a very substantial bank We would deny this application. We believe that holding company but the firm it proposes to ac­ Security Pacific has sufficient resources to be a quire is also of substantial size for firms in its own probable entrant into many of the mortgage bank­ industry. Under such circumstances as these, what ing markets in which Kassler is now engaged. few benefits as may be achieved from Security Similarly, we find that Kassler’s own resources Pacific’s acquisition of Kassler, in our view, are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 391 greatly outweighed by the adverse effects of the western Pennsylvania, and controls deposits of proposal through the elimination of potential com­ approximately $1.7 billion,2 representing 4.6 per petition. cent of the total commercial bank deposits in the The temporary financial strain Kassler experi­ State. Applicant engages in mortgage banking enced in 1973 was in contrast to a general upward activities through PNB and two other direct sub­ trend in income it enjoyed the previous six years. sidiaries, Pittsburgh National Mortgage Corpora­ It appears to be a well managed company with tion (“PNMC”) with an office in Pittsburgh, the capability of resuming profitable operations in Pennsylvania, and Kissell.3 the near future. In our view, Kassler is now and Kissell, the nation’s tenth largest mortgage is likely to remain a strong and viable competitor banking company based on its mortgage servicing in mortgage banking. Thus, its capabilities for portfolio of about $1.2 billion (as of June 30, future expansion into other mortgage banking 1973), engages in the origination and servicing of markets, along with those of Applicant, are strong. all types of mortgage loans through 27 offices in Furthermore, in view of the already concentrated 13 States. Kissell entered California in 1965 with nature of California banking, it is important to a de novo in San Diego, and since that time has assure that smaller and out-of-state organizations become a significant factor in the mortgage bank­ have opportunities to enter the market as viable ing business in that State. Kissell now operates competitors. Affiliation with Kassler offers, we seven offices in California, including offices in San believe, a strong and practical opportunity for such Francisco and Sacramento. During 1972, Kissell entry. serviced $174 million of loans which had been originated in California, and originated $63 mil­ PITTSBURGH NATIONAL CORPORATION, lion in California mortgages. California mortgages PITTSBURGH, PENNSYLVANIA represented one-fourth of Kissell’s total mortgage originations for 1972. Approximately 60 per cent Order Denying Acquisition of Buhler of Kissell’s California mortgage originations were Mortgage Company, Inc. loans on 1-4 family residences. Kissell’s San Pittsburgh National Corporation, Pittsburgh, Francisco office originated approximately $3 mil­ Pennsylvania, a bank holding company within the lion in mortgage loans in the six-county San Fran­ meaning of the Bank Holding Company Act, has cisco mortgage banking market4 in 1972, 90 per applied for the Board’s approval, under section cent of which were 1 -4 family residential mortgage 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s loans. Kissell opened a Sacramento branch office Regulation Y, to acquire indirectly through its in September 1972, and in its first four months wholly-owned subsidiary, The Kissell Company, of operations, $3 million in residential con­ Springfield, Ohio (“Kissell”), all of the voting struction loans were originated in that market,5 shares of Buhler Mortgage Company, Inc., Sacra­ which loans were subsequently converted into 1 -4 mento, California (“Buhler”), a company that family residential mortgage loans. engages in the activities of originating, selling, and Buhler, with a mortgage servicing portfolio of servicing mortgage loans for its own account or $98 million (as of June 30, 1973), ranks 192nd the account of others.1 Such activities have been among the nation’s mortgage banking firms, and determined by the Board to be closely related to engages in the origination of both 1-4 family banking (12 CFR 225.4(a)(1) and (3)). residential mortgage loans and commercial loans, Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly 2 All banking data are as of June 30, 1973. published (38 Federal Register 32851). The time 3Applicant acquired Kissell in 1969; accordingly, under the for filing comments and views has expired, and provisions of § 4(a)(2) of the Act Kissell may not be retained none has been timely received. by Applicant beyond December 31, 1980, without Board approval. Applicant intends to file with the Board, at a later Applicant’s only banking subsidiary, Pittsburgh date, an application for retention of Kissell under § 4(c)(8) National Bank (“PNB”), operates 88 offices in of the Act. The Board’s determination on the instant proposal does not imply present or future approval of such a retention application, which will be considered by the Board on the basis of the statutory factors set forth in the Act. 4Approximated by Alameda, Contra Costa, Marin, San 1 Buhler is also presently engaged in the activity of real estate Francisco, San Mateo, and Santa Clara Counties. brokerage; however, Applicant has stated that this activity will °The Sacramento mortgage banking market is approximated be discontinued upon consummation of the acquisition. by Placer, Sacramento, and Yolo Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN □ MAY 1974 primarily FHA project construction loans. In increased potential competition in that market. 1972,6 Buhler originated approximately $15 mil­ It is true that affiliation with Applicant would lion in 1-4 family residential mortgage loans in provide Buhler with access to additional sources the Sacramento market, and $11.5 million in the of funds, and would enable Buhler to realize some San Francisco market.7 For the same period, operating economies. However, while increased Buhler originated about $39 million in multi-fam- availability of funds and gains in efficiency are ily and commercial loans, primarily in the Sacra­ desirable improvements, it would appear that sim­ mento and San Francisco areas. The Board is of ilar benefits could result from the acquisition of the view that the proposed acquisition would Buhler by a bank holding company or mortgage eliminate some direct competition between Buhler banking organization that does not presently and Kissell and would also eliminate a viable operate in Buhler’s market. Moreover, by ex­ independent mortgage banking competitor in the panding activities at its Sacramento office to in­ Sacramento area. clude 1-4 family originations, Kissell could pro­ Applicant has the resources and capability to vide the area with these same benefits. Accord­ expand its mortgage operations into those types ingly, the Board concludes that the public benefits of activities in which Buhler now engages. Kissell which would be derived from the proposed acqui­ presently engages in project lending, though not sition do not outweigh the adverse effects on out of any of its California offices. It appears that competition. Kissell clearly has the resources and capability to Based upon the foregoing and other consid­ expand its mortgage banking operations in Cali­ erations reflected in the record, the Board has fornia to include project lending and thereby di­ determined that the public interest factors the rectly compete with Buhler on a‘larger s:cale than Board is required to consider under section 4(c)(8) at present. Additionally, Kissell currently has the do not outweigh possible adverse effects and that resources, capability and interest to appreciably the request should be denied. Accordingly, the expand its originations of 1-4 family residential application is hereby denied. mortgage loans in the Sacramento market. The By order of the Board of Governors, effective Board notes that Kissell’s Sacramento office is the April 1, 1974. Kissell office in California which to date has been Voting for this action: Vice Chairman Mitchell and Gover­ the least active in 1-4 family mortgage origina­ nors Brimmer, Holland, and Wallich. Voting against this tions. Increased involvement by this office in such action: Governors Sheehan and Bucher. Absent and not voting: lending activity, however, could be achieved with Chairman Burns. a minimum of effort and expense. Kissell already (Signed) C hester B. Feldberg, has an established office, personnel and contacts [seal] Secretary of the Board. in the market and a demonstrated capability for further expansion. In addition, Buhler can be ex­ Dissenting Statement of pected to give less emphasis to project lending and to increase its activities in other forms of mortgage Governors Sheehan and Bucher lending as a result of the FHA 236 project lending We would approve the application by Pittsburgh funds cutback. National Corporation to acquire Buhler Mortgage At present, Kissell is the tenth largest mortgage Company, Inc. We disagree with the majority that banking firm in the country, and it seems likely consummation of the proposed acquisition would that Kissell will continue to compete aggressively have adverse effects on existing and potential to preserve its position as one of the nation’s competition; and in our view, any possible adverse leading mortgage banking organizations. It is the effects that might arise from this acquisition would Board’s judgment that both Kissell and Buhler are in any case certainly be outweighed by the rea­ likely to expand their mortgage lending activities sonably expected benefits to the public that would in the Sacramento market. The Board concludes, result from the proposal. therefore, that consummation of the proposed The majority states that consummation of the transaction is likely to eliminate the prospect of proposal would eliminate direct competition be­ tween Buhler and Kissell and would also eliminate a viable independent mortgage banking competitor 6 Buhler data for 1972 includes data from November 1, 1971 in the Sacramento area. However, in view of through October 31, 1972. Kissell’s and Buhler’s minimal market presence 7 Buhler operated a branch office in San Francisco between November 1971, and May 1972. in northern California, the amount of existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 393 competition being eliminated is insignificant, and greater resources and ready access to the money denial of the application is not warranted. Buhler markets, and would be able to increase Buhler’s originated approximately $15 million in 1-4 family ability to lend and accommodate its customers. In residential mortgage loans in Sacramento and addition to the increased funds that would be made $11.5 million in San Francisco in 1972, while available to Buhler, affiliation would also enable Kissell did not originate any residential mortgages Buhler to realize some operating economies. It is in Sacramento and only about $3 million in San unrealistic for the majority to deny this application Francisco. Moreover, in the context of the mort­ in the hope that some other organization, not gage banking market in each area, both Kissell’s presently operating in Buhler’s market, will come and Buhler’s shares are insignificant1 in view of along to acquire Buhler. It is our view that the the presence of over 50 competing companies in combination of Kissell and Buhler will result in the Sacramento market, and over 200 companies a strong, aggressive firm, more able to offer vig­ in the San Francisco market, including some of orous competition to the larger mortgage banking the nation’s largest firms engaged in mortgage firms in northern California. banking.2 Further, Buhler recently closed its San Francisco office, rendering the adverse effect on WORCESTER BANCORP, INC., existing competition in San Francisco a moot WORCESTER, MASSACHUSETTS point. Order Approving Application to Engage We agree with our colleagues that absent this De Novo in Certain Insurance proposal, Applicant and Buhler might possibly Agency Activities expand in Sacramento and thus increase the degree Worcester Bancorp, Inc., Worcester, Massa­ of their competition with each other. Unlike our chusetts, a bank holding company within the colleagues, however, we feel such expansion is meaning of the Bank Holding Company Act, has improbable. For many mortgage banking institu­ applied for the Board’s approval, under § 4(c)(8) tions, both large and small, the barrier to expan­ of the Act and § 225.4(b)(1) of the Board’s Regu­ sion is not necessarily lack of capital, but more lation Y, to engage de novo in certain insurance often it may be a shortage of experienced person­ agency activities at 34 locations in Massachusetts nel who are also familiar with the local market. at which Applicant or its subsidiaries are otherwise Accordingly, it is our view that this acquisition engaged in business, through a wholly-owned would not have any adverse competitive effects subsidiary, Wornat Insurance Agency, Inc., on existing or potential competition. Worcester, Massachusetts (“Wornat”). Applicant Against the “adverse” effects found by the proposes through Wornat to act as insurance agent majority, we give considerable weight to the pub­ or broker with respect to credit life insurance, lic benefits associated with combining Buhler with credit accident and health insurance, and mortgage Applicant. The majority presumes that Buhler will redemption insurance, all directly related to ex­ be aggressive and entrepreneurial on its own, tensions of credit by Applicant’s banking and absent a combination with Applicant. We dis­ nonbanking subsidiaries. Such activities have been agree, as Buhler’s future prospects do not seem determined by the Board to be closely related to to support this conclusion. Buhler’s project lend­ banking. ing activities will necessarily decrease due to a Notice of the application was published in the substantial cutback of funding for FHA 236 proj­ communities to be served in accordance with § ects, thereby compelling Buhler to diversify into 225.4(b)(1) of the Board’s Regulation Y. The other types of mortgage lending. Its ability to National Association of Life Underwriters diversify and its future growth will be severely (“NALU”), the Massachusetts Association of hampered by its limited financial resources and Life Underwriters (“MALU”), and the National limited expertise in the other areas of mortgage Association of Mutual Insurance Agents lending. Applicant, on the other hand, has far (“NAMIA”) sought and were granted intervention in the proceeding and also requested a hearing be ’In the San Francisco market, Kissell originated . 12 per cent held on the application. and Buhler originated .54 per cent of all 1-4 family residential By order of March 6, 1973, the Board directed mortgages; in the Sacramento market, Kissell did not originate any 1-4 family residential mortgages, while Buhler originated that a hearing be held on the subject application only 2.8 per cent of all residential mortgages. before a designated Administrative Law Judge (38 2 Included as competitors are such firms as Lomas & Nettle- Federal Register 6441). The hearing was held on ton, Colonial Mortgage, Western Mortgage, Bank of America, Wells Fargo Bank, Crocker National Bank and Union Bank. July 16, 1973, and it and related proceedings have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN □ MAY 1974 been conducted in accordance with the Board’s The Board’s findings and conclusions with respect Rules for Formal Proceedings (12 CFR 263). to the application are set forth hereafter. Addi­ Briefs and reply briefs were filed by the parties tional facts relating to the application are contained after the hearing. The Law Judge submitted his in the Law Judge’s Recommended Decision and Recommended Decision to the Board wherein he to the extent not inconsistent with this Statement, recommended approval of the application subject the findings of fact by the Law Judge are hereby to certain conditions. Exceptions and supporting adopted. briefs were subsequently filed by the parties. Applicant controls two banking subsidiaries The Recommended Decision found that the Ap­ with aggregate deposits of $417 million (all bank­ plicant had sustained the burden of showing that ing data are as of December 31, 1972); Applicant its proposed activities were so closely related to also has several nonbanking subsidiaries which banking as to be a proper incident thereto and that include Wornat Leasing Corporation, a corpora­ these activities could reasonably be expected to tion engaged in full payout financial leasing of all produce benefits to the public such as greater types of capital equipment; Wornat Development convenience, increased competition and gains in Corporation, which engages in making real estate efficiency, and, further, that there was no estab­ construction and permanent mortgage loans; the lished proof of undue concentration of resources, Empire Group, Inc., which engages in granting decreased or unfair competition, conflicts of inter­ second mortgage loans on residential property;1 est, or unsound banking practices that would result and Worcester Capital Corporation, a federally from approval of the application. licensed small business investment company. The Law Judge recommended approval of the Applicant proposes to acquire Wornat, a de application subject to three conditions: (1) that novo corporation, with an initial capitalization of individual sales of credit life, credit accident and $50,000. Applicant projects that during its first health, and mortgage redemption insurance in year of operation, Wornat will have approximately amounts or for terms in excess of $10,000 and $484,000 in gross premium income. Of this ten years be sold only through employees duly amount, Applicant estimates that Wornat would licensed as insurance agents; (2) that Applicant receive about $450,000 in gross premiums through be required to include on its insurance forms a the sale of $51.6 million of credit life insurance, statement that the purchase of such insurance was an additional $29,000 from the sale of $3.1 million not a condition to the granting of any loan and of credit accident and health insurance and $5,000 should not be considered as an inducement there­ in gross premium income from the sale of $950,fore (with respect to mortgage redemption insur­ 000 of mortgage redemption insurance.2 These ance the recommendation was that language be projections are based on Applicant’s present sales included indicating that similar insurance not of credit life and credit accident and health insur­ naming the lending institution as beneficiary could ance (sold through its group policy referred to in be attained from independent agents or, in lieu footnote 2), and its present volume of loans on thereof, existing insurance owned by the borrower real estate. could be assigned to the bank); and, (3) that sales The Law Judge concludes that the sale as agent of insurance to borrowers from Applicant’s non­ or broker of credit life, credit accident and health banking subsidiaries be limited to an amount no greater than 5 per cent of the aggregate insurance premium income of Applicant. Exceptions to this Recommended Decision were 1 Applicant received Board approval effective May 24, 1973, filed by Applicant, NALU, and MALU with the to acquire Empire Group, Inc., Natick, Massachusetts, and its wholly-owned subsidiaries, but no separate application latter organizations filing a joint exception. The (including published notice) has been made with regard to Board has considered the entire record of the Empire Group, Inc. engaging in insurance activities at any hearing including the transcript, exhibits, excep­ location. Accordingly, although there was some discussion of proposed insurance agency activities of Empire in the present tions, rulings, all briefs and memoranda filed in hearing, Board action on the subject proposal at hand is not connection with the hearing, comments received applicable to the offices of Empire Group in Massachusetts or elsewhere. regarding this application, and the Recommended 2 Applicant presently sells credit life and credit accident and Decision of the Law Judge. The Board remanded health insurance related to extensions of credit by its two the case to the Law Judge for the limited purpose banking subsidiaries through a group policy obtained from an independent agent some years ago. However, Applicant does of clarifying certain portions of the Recommended not sell mortgage redemption insurance under this group pol­ Decision and the Law Judge responded thereto. icy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 395 and mortgage redemption insurance is closely re­ and by means of a simple form as part of the loan application, lated to banking or managing or controlling banks the service is convenient, the rates are comparatively low, and there is minimal need for such sales to be executed by licensed and the Board affirms his finding and conclusion insurance agents. (P. 12-13) in this regard: Since Bancorp is, at the present time, selling credit life, health and accident insurance under a master policy formerly The business of selling accident, health and declining bal­ negotiated by an independent agent, the proposed authority ance terms life insurance directly related in amount to exten­ will not add a service which is not presently being offered. sions of credit by a bank or bank-related company is so closely However, few, if any, insurance agents are interested in selling related to banking as to be a proper incident thereto within group insurance to the pubic because of the minimal rates and the meaning of Section 225.4(a)(9) of Regulation Y. (P. 12) commissions involved, although some are interested in nego­ tiating master policies for institutions such as applicant. (P. The above finding and conclusion of the Law 14) Judge is amply supported by the record and was To permit Bancorp or Wornat Insurance to negotiate such not controverted by Intervenors. Moreover, the coverage directly with underwriters would place Wornat in fair competition with the few agents interested in the same field sale of credit life, credit accident and health and and also increase competition between the applicant and those mortgage redemption insurance has long been re­ mutual savings banks, Federal savings and loan associations garded as closely related to banking. In fact, the and State chartered commercial banks which presently offer such insurance to the public in the State of Massachusetts. Senate Report on the Bank Holding Company Act On the other hand, to withhold such authority from Banof 1956 expressly states that: corp/Wornat and thereby in effect require them to utilize the services of an outside insurance agent earning commissions from the underwriter would reduce the possibility of passing ... the operation of a credit life-insurance program in some of the commission income and expense savings capable connection with bank loans is clearly within the scope of of being derived from the combined bank/insurance operation banking operations as presently conducted. So is the operation on to borrowers—at least in the form of competitively lower of an insurance program under which insurance proceeds retire interest rates. On balance, the public interest favors the in­ the outstanding balances of the mortgage upon the death of creased inter-bank and bank v. insurance agent competition the mortgagor in cases where the bank holds the mortgage.3 that approval of this aspect of the application would encourage, particularly in view of the fact that the impact upon the Similarly, the legislative history of the 1970 insurance agents in this narrow field appears minimal. (P. 14-15) Amendments to the Act indicates that the sale of such insurance is closely related to banking.4 The Law Judge found that the sale of mortgage There is nothing in this record which would indi­ redemption insurance by Applicant could also be cate that the sale of credit life, credit accident and reasonably expected to be in the public interest health and mortgage redemption insurance by Ap­ and the Board affirms his finding and conclusion. plicant, in connection with extensions of credit In view of the foregoing it is concluded that, competition granted by its banking or nonbanking subsidiaries, between Bancorp/Wornat and independent insurance agents will be in the public interest by affording the consumer the would not be closely related to banking. opportunity of making an intelligent choice between the ser­ The Law Judge also concluded that the sale of vices offered. While it is not expected that Bancorp’s penetra­ tion of the mortgage redemption insurance market will be credit life and credit accident and health insurance limited to the $5,000 gross premium income forecast for the by Applicant could reasonably be expected to first year of operation; neither is it probable that the volume produce public benefits such as greater conven­ of this operation will expand speedily to such an extent as to severely impair the ability of a substantial number of ience, increased competition, or gains in effi­ independent insurance agents to continue in business. (P. 17) ciency; the Board affirms this finding and conclu­ sion. Applicant’s banking subsidiaries have about $10- $15 million in residential mortgages and contem­ Most credit life, accident and health insurance is sold in plate writing only about 35 mortgage redemption connection with loans in amounts of less than $10,000 and policies in the first year of operation. This indicates for an average term of approximately 30 months. When sold on a group basis accompanying an extension of credit to an that Wornat is not expected to be a large factor individual without the requirement of a medical examination in the sale of mortgage redemption insurance. However, as the Law Judge found, Wornat’s entry would increase competition in the sale of mortgage redemption insurance by providing an alternative source for such insurance. Moreover, where a 3S. Report No. 1095, 84th Cong. 2d Sess. (1956). mortgage loan is less than $10,000 in amount and 4For example, H.R. 6778 as passed by the House during the 1st session of 91st Congress did not include the sale of ten years in time, Wornat could apparently sell insurance on the “negative laundry list” where the insurance mortgage redemption insurance related to such is limited to insuring the life of a debitor pursuant to or in connection with a specific credit transaction, or providing loans on a group basis in conformity with Massa­ indemnity for payments coming due on a specific loan or other chusetts law. Thus, irrespective of the face value credit transaction while the debtor is disabled, . . . ” H.R. of the mortgage redemption policy, all such sales 6778, 91st Cong., 1st Sess. as passed by the House on November 5, 1969. will conform with State law and Applicant’s lim­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN □ MAY 1974 ited engagement in this activity is likely to be insurance agent; Applicant has agreed to this con­ procompetitive. This constitutes a public benefit dition. In this connection, NALU and MALU have that would result from Wornat’s sale of mortgage requested that the Board condition approval of this redemption insurance. application on the additional requirement that the The Law Judge concluded that there was no sale of group policies in excess of $10,000 and established proof in the record that the sale of ten years in time by Applicant be made only by credit life, credit accident and health and mortgage licensed insurance agents. However, Massachu­ redemption insurance by Wornat would result in setts law presently prohibits a bank holding com­ an undue concentration of resources, decreased or pany from selling group policies in excess of unfair competition, conflicts of interest, or un­ $10,000 and ten years. The Board expects that sound banking practices, and the Board adopts this Applicant will observe applicable State law and finding and conclusion. Intervenors stressed what Applicant has stated its intention to do so. they felt would be the coercive tying effects re­ In addition, the Law Judge recommended that sulting from the ability of Applicant to make both language be placed in application forms for mort­ loans and sell the specified types of insurance in gage redemption insurance to inform the prospec­ connection with such loans. However, for several tive borrower that similar insurance is available years Applicant, under a group policy, has been from other sources wherein the beneficiary could selling credit life and credit accident and health be someone other than the lender. However, it is insurance, and the Intervenors were unable to cite clear from the record in this case that the solici­ any specific instances of a tying arrangement im­ tation for mortgage redemption policies occurs posed, or sought to be imposed, by Applicant after an extension of credit has been granted and during that period. Moreover, Intervenors concede that the borrower is afforded ample opportunity the absence of any evidence to show that Massa­ to consider alternative sources. Thus, no coercive chusetts mutual savings banks, which are able to element would appear to be present in such sales. sell various types of insurance, have tied the sale The Board has not required this specific condition of insurance to extensions of credit. heretofore and finds the evidence in this record The Law Judge recommended in his decision, to be insufficient to demonstrate a public need for and the Board so orders, that language in bold such a requirement. type be inserted in the application forms for insur­ The Law Judge recommended a third condition ance that informs the prospective purchaser he which would require that the amount of insurance need not purchase such insurance in order to obtain premium from the sale of insurance related to an extension of credit from any of Applicant’s extensions of credit by Applicant’s nonbanking subsidiaries. Applicant has indicated its wil­ subsidiaries not exceed 5 per cent of the total lingness to comply with this condition. The use insurance premium income by all of Applicant’s of such language will assist Applicant in those subsidiaries. This recommendation was apparently internal operations that are used to reduce the based on an assumption that sales of insurance by potentiality for tying arrangements which the Applicant’s nonbanking subsidiaries are not as Congress prohibited when it enacted § 106 of the closely related to banking as such sales by Appli­ Bank Holding Company Act. In the absence of cant’s banking subsidiaries and that the former specific instances of attempted tying of insurance sales thus must come under § 225.4(a)(9)(ii)(c) sales and credit extensions by Applicant and in as “convenience” sales. However, sales of insur­ the presence of appropriate language in the insur­ ance by Applicant’s banking and nonbanking sub­ ance form, the Board concludes that the general­ sidiaries are in each instance related to an exten­ ized fear of tying effects is not sufficient to require sion of credit and are, therefore, closely related a denial of all or part of Applicant’s application. to banking. Thus, the Board declines to adopt this The condition herein imposed is applicable to each recommended condition of the Law Judge. of the various forms of insurance Applicant seeks Based on the foregoing and other considerations Board approval to sell as agent or broker—speci­ reflected in the record, the Board has determined fically, credit life, credit accident and health, and that the balance of the public interest factors the mortgage redemption insurance. Board is required to consider under § 4(c)(8) is The Law Judge also recommended as a condi­ favorable. Accordingly, the application is hereby tion of approval of this application that sales of approved subject to the conditions set out above. any individual policies in amounts of over $10,000 Further, this determination is subject to conditions and ten years in time be made by a licensed set forth in § 225.4(c) of Regulation Y and to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 397 the Board’s authority to require such modification deposits in Massachusetts and is 41st largest bank or termination of the activities of a holding com­ in the State. The proposed merger would not pany or any of its subsidiaries as the Board finds appreciably increase Cape Cod Bank’s share of necessary to assure compliance with the provisions State deposits nor would it significantly increase and purposes of the Act and the Board’s regula­ the concentration of banking resources in the State. tions and orders issued thereunder or to prevent Upon consummation of the proposed transaction, evasion thereof. Cape Cod Bank would become the 35th largest The transaction shall be executed not later than bank in Massachusetts. three months after the effective date of this Order BBNB (deposits of $16 million) operates all unless such period is extended for good cause by three of its offices in Barnstable County, which the Board or by the Federal Reserve Bank of approximates the relevant market, and thereby Boston pursuant to delegated authority. ranks as the sixth largest of nine commercial banks By order of the Board of Governors, effective in the market. Of the remaining seven commercial January 28, 1974. banks in the market, three are affiliated with large bank holding companies. Each of Cape Cod Voting for this action: Vice Chairman Mitchell and Gover­ Bank’s offices is also located in the relevant mar­ nors Brimmer, Sheehan, Bucher, and Holland. Absent and not voting: Chairman Burns and Governor Daane. ket. Cape Cod Bank holds 28.5 per cent of the market deposits in commercial banks and is the (Signed) C hester B. Feldberg, largest bank therein. Although both institutions are [seal] Secretary of the Board. located in the same banking market, the service areas of the two banks do not overlap significantly and there appears to be little existing competition between them. BBNB’s offices are situated in the ORDERS UNDER BANK MERGER ACT- APPLICATIONS FOR MERGER OF BANKS extreme western portion of the market and derive an estimated 2.3 per cent of total deposits and 6.2 CAPE COD BANK AND TRUST COMPANY, per cent of total loans from Cape Cod Bank’s BARNSTABLE, MASSACHUSETTS service area. Cape Cod Bank’s offices are located throughout the remainder of the county and derive Order Approving Application for an estimated 1 per cent of total deposits and 2.8 Merger of Banks per cent of total loans from the service area of Cape Cod Bank and Trust Company, Barnsta­ BBNB. The closest offices of Cape Cod Bank and ble, Massachusetts (“Cape Cod Bank”), a mem­ BBNB are located 16 miles apart. Moreover, in ber State bank of the Federal Reserve System, has view of the existing relationship between the two applied for the Board’s approval pursuant to the banks through common ownership, it seems un­ Bank Merger Act (12 U.S.C. 1828(c)) of the likely that competition would develop in the future merger of that bank with The Buzzards Bay Na­ by either bank opening branches in the other’s tional Bank, Bourne, Massachusetts (“BBNB”), service area. The Board concludes that consum­ under the charter and title of Cape Cod Bank. mation of the proposed merger would have but Incident to the proposed merger, the present of­ a slightly adverse effect upon competition in the fices of BBNB would become branch offices of market.2 the resulting bank. The financial and managerial resources of Cape As required by the Act, notice of the proposed Cod Bank are considered satisfactory. BBNB has merger, in form approved by the Board, has been experienced some difficulty in maintaining a strong published, and the Board has requested reports on capital position. Consummation of the proposed competitive factors from the Attorney General, the merger should eliminate this problem, while at the Comptroller of the Currency, and the Federal same time maintaining the capital adequacy of the Deposit Insurance Corporation. The Board has considered the application and all comments and reports received in the light of the factors set forth *A11 banking data are as of June 30, 1973. in the Act. 2 The Board noted that in addition to the nine commercial Cape Cod Bank operates eight offices with ag­ banks in the relevant market, there are also four mutual savings banks holding deposits of $176 million, $115 million, $95 gregate deposits of approximately $57 million,1 million and $17 million. The two largest of these mutual representing 0.4 per cent of total commercial bank savings banks offer NOW accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN □ MAY 1974 resulting bank and providing it with greater depth The proposed merger would also preclude the in management. Thus, the banking factors lend development of future competition. Although weight toward approval of the application. BBNB has experienced some problems in the past, Although there is no evidence in the record to there is no evidence in the record to indicate that indicate that the major banking needs of the resi­ it has attempted to solve these problems by a less dents of the area are not currently being met, Cape anticompetitive means such as affiliation with a Cod Bank plans to provide both trust and computer banking organization not represented in the mar­ services for BBNB to enable it to serve more ket. Such affiliation with a banking organization efficiently its present and future customers. There­ outside the market would have a positive effect fore, considerations relating to the convenience on competition by strengthening the financial and and needs of the communities to be served lend managerial resources available to BBNB, thereby some weight toward approval of the transaction. making BBNB a stronger competitor. The present Accordingly, the Board finds the anticompetitive proposal eliminates BBNB as an entry vehicle for effects of the proposed transaction to be clearly a banking organization outside of the market. outweighed in the public interest by the probable Thus, I conclude that the proposed merger would effect of the transaction in meeting the conven­ have substantial adverse effects on both existing ience and needs of the community to be served. and future competition. It is the Board’s judgment that consummation of The proposal contemplates no appreciable the proposal would be in the public interest, and change in the services available to the residents that the application should be approved. of the area served by BBNB. The services dis­ On the basis of the record, the application is cussed by the majority are available elsewhere in approved for the reasons summarized above. The the market and, in my view, do not outweigh the transaction shall not be made (a) before the thir­ substantially adverse competitive effects of the tieth calendar day following the date of this Order proposal. Therefore, I believe that the proposal or (b) later than three months after the date of is not in the public interest and that the application this Order, unless such period is extended for good should be denied. cause by the Board, or by the Federal Reserve Bank of Boston pursuant to delegated authority. By order of the Board of Governors, effective THE CONNECTICUT BANK AND TRUST April 12, 1974. COMPANY, HARTFORD, CONNECTICUT Voting for this action: Vice Chairman Mitchell and Gover­ nors Sheehan, Bucher, Holland, and Wallich. Voting against Order Approving Application for this action: Governor Brimmer. Absent and not voting: Chair­ man Burns. Merger of Banks (Signed) Chester B. Feldberg, The Connecticut Bank and Trust Company, [seal] Secretary of the Board. Hartford, Connecticut (“CBT”), a member State bank of the Federal Reserve System, has applied Dissenting Statement of for the Board’s approval pursuant to the Bank Governor Brimmer Merger Act (12 U.S.C. 1828(c)) of the merger of that bank with the Clinton National Bank, I would deny the application of Cape Cod Bank Clinton, Connecticut (“Clinton Bank”), under the to merge with BBNB. In my judgment, the pro­ charter and title of CBT. Incident to the proposed posed merger of these two banking institutions merger, the present offices of Clinton Bank would would have significant adverse effects on competi­ become branch offices of the resulting bank. tion within the relevant banking market. As required by the Act, notice of the proposed Cape Cod Bank is the largest commercial bank merger, in form approved by the Board, has been in the market, with 28.5 per cent of the market’s published, and the Board has requested reports on commercial bank deposits, and is more than twice competitive factors from the Attorney General, the the size of the market’s second largest bank. Comptroller of the Currency, and the Federal Consummation of the proposed transaction would Deposit Insurance Corporation. The Board has increase Cape Cod Bank’s share of commercial considered the application and all comments and bank deposits to more than 36 per cent and would reports received in the light of the factors set forth further enhance its dominant position in the mar­ in the Act. ket. CBT, with deposits of approximately $1.2 bil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 399 lion,1 is a subsidiary of CBT Corporation, Hart­ Clinton Bank’s Killingworth office; the next clos­ ford, Connecticut2 and operates 73 offices est offices of CBT and Clinton Bank are situated throughout the State. CBT controls 19.2 per cent 12 miles apart. Although the banks operate in the of total deposits in commercial banks in Connecti­ same market, it appears that the respective service cut and ranks as the second largest of 66 commer­ areas of CBT’s offices and those of Clinton Bank cial banks in the State. The proposed merger do not overlap, and neither bank derives an appre­ would increase the total deposits controlled by ciable amount of business from the service area CBT by 0.3 of one percentage point to 19.5 per of the other. As a result, there appears to be no cent. In view of the already high degree of con­ meaningful existing competition between the two centration of commercial banking resources in institutions. Therefore, the proposed merger would Connecticut (the ten largest banking organizations not have a substantially adverse effect on existing control about 82 per cent of the total commercial competition. bank deposits and the two largest organizations Although CBT is not presently represented in control almost 40 per cent of such deposits), such the towns served by Clinton Bank, it seems to an increase in concentration is viewed with some have the financial and managerial resources to degree of concern by the Board. However, in establish de novo branch offices in Clinton Bank’s considering the circumstances of this case, includ­ service area. However, Clinton Bank’s office in ing the nature of competition and the competitive Killingworth is located in a town with a population environment in the relevant market, the Board to banking office ratio nearly one-half of the State does not regard the increase in concentration to average, which makes the area relatively unattrac­ have such adverse competitive effects as to require tive for de novo entry. Connecticut statutes pro­ denial of the application. hibit commercial banks from branching de novo Clinton Bank holds total deposits of $19.6 mil­ into a town where the head office of another bank lion and operates a total of four offices,3 three of is located. Clinton is the location of Clinton which are located within the New Haven SMSA Bank’s head office and the town, consequently, (which approximates the relevant banking market) is presently closed to de novo branching. Approval and a fourth office located in the town of West­ of the proposed merger would have the salutory brook, which is in a separate but adjacent market. competitive effect of removing this home office Within the relevant market, the three offices of protection and opening the town to de novo the Clinton Bank hold an aggregate of $16.5 branching. However, the State Banking Commis­ million in deposits, representing 2.3 per cent of sion has granted a charter for the establishment total market deposits and Clinton Bank thereby of a new bank which would reinstate home office ranks as the sixth largest of 15 commercial banks protection in Clinton upon the opening for business in the market. CBT operates 7 offices in the New of the new bank in Clinton. Only the town of Haven SMSA with deposits of $56 million, repre­ Madison, where Clinton Bank’s third office in the senting about 7.9 per cent of market deposits, and market is located, appears as a possible site for is the fourth largest commercial bank in the mar­ a de novo branch of CBT, but even in this town ket. The deposit shares of the three largest banks the population to banking office ratio is only mar­ in the relevant market are approximately 33, 26 ginally above the State average. These factors, and and 18 per cent, respectively. Affiliation of Clinton other facts of record, diminish the likelihood of Bank with CBT is expected to exert a procompeti­ CBT expanding into Clinton Bank’s service area tive effect on relationships between CBT and the through de novo branch offices. three other banks with larger shares of deposits On the basis of the record, the Board concludes in the New Haven market. that the proposed merger would not have a signif­ With respect to existing competition, the Had- icant adverse effect on existing competition, nor dam office of CBT is located 10 miles away from foreclose the development of significant potential competition, within the relevant market.4 CBT proposed to introduce bank credit card 1 Unless otherwise indicated, all banking data are as of June 30, 1973. 2CBT Corporation has one other banking subsidiary, The Connecticut Bank and Trust Company, N.A., Norwalk, Con­ 4In its consideration of the proposal, the Board noted also necticut, which has deposits of approximately $12 million, that approximately 60% of the total time and demand deposits representing 0.2 per cent of State commercial bank deposits. of the New Haven SMSA are held by mutual savings banks 3Clinton Bank has received approval to establish an addi­ and that after December 31, 1975, these mutual savings banks tional office, but has not yet opened that office for business. will be permitted to offer limited checking account services. 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400 FEDERAL RESERVE BULLETIN □ MAY 1974 services, trust services, student loans, lock boxes, these deposits with CBT (the second largest bank) financial analysis and specialized business lending alone holding 19.2 per cent. The present proposal services at the Clinton Bank offices which do not would increase CBT’s share of State commercial presently offer these services. At the same time, bank deposits by 0.3 percentage points to 19.5 CBT plans to lower the rates on installment loans, per cent, thereby perpetuating the trend toward reduce certain service charges on checking ac­ increased concentration of banking resources. Five counts, and increase the availability of funds for years ago, the largest ten banking organizations loans offered by Clinton Bank. These increased held 78.6 per cent of statewide deposits as com­ services should benefit the residents of the areas pared to more than 82 per cent presently held. served by Clinton Bank, particularly in Clinton, Approval of the proposal would aggrevate further Killingworth and Westbrook, where Clinton Bank the already substantial size disparity existing be­ is the only commercial bank operating. Therefore, tween the State’s two largest banking organi­ considerations relating to the convenience and zations and Connecticut’s other banking organi­ needs of the communities to be served lend weight zations. In terms of deposits, the third and fourth toward approval of the proposed merger. largest banks hold less than one-half and one-third, The financial and managerial resources of CBT respectively, of the deposits held by CBT. Ap­ and Clinton Bank are satisfactory and future pros­ proval of this proposal would increase this existing pects for the resulting bank appear favorable. size disparity to an even greater extent while Thus, the banking factors are consistent with ap­ foreclosing the possibility of Clinton Bank re­ proval of the application. It is the Board’s judg­ maining independent or becoming affiliated with ment that consummation of the proposal would be one of the State’s smaller banking organizations. in the public interest, and that the application I also believe that the merger of these banking should be approved. institutions would have significant adverse effects On the basis of the record, the application is on competition within the relevant banking mar­ approved for the reasons summarized above. The ket. As the fourth largest bank in the market with transaction shall not be made (a) before the thir­ about 8 per cent of the deposits, CBT is already tieth calendar day following the date of this Order an aggressive competitive force in the market, and or (b) later than three months after the date of the record discloses that there is meaningful exist­ this Order, unless such period is extended for good ing competition between CBT and Clinton Bank cause by the Board, or by the Federal Reserve which would be eliminated by the proposed Bank of Boston pursuant to delegated authority. merger. Within a 25 mile radius of Clinton Bank’s By order of the Board of Governors, effective locations, CBT has 19 offices. In the four-town April 15, 1974. area served by Clinton Bank, one-third of the work force commutes to a town where CBT has an Voting for this action: Vice Chairman Mitchell and Gover­ nors Sheehan, Bucher, Holland, and Wallich. Voting against office. Absent approval of this proposal, it appears this action: Governor Brimmer. Absent and not voting: Chair­ likely that additional competition would develop man Burns. between the two institutions because of the nature (Signed) C hester B. Feldberg, of the market and the commuting pattern of its [seal] Secretary of the Board. residents. In addition, CBT has the financial and managerial resources—as well as the inclina­ Dissenting Statement of tion—to expand through de novo branching, as Governor Brimmer demonstrated by CBT opening 16 branch offices in the last five years. It appears that the town of I would deny the application of Connecticut Madison (one of the communities served by Clin­ Bank and Trust Company, Hartford, Connecticut ton Bank) has an above average population to (“CBT”) to merge with the Clinton National banking office ratio, and a median family income Bank, Clinton, Connecticut (“Clinton Bank”). above that of the rest of the State. Both factors In my judgment, the proposed merger would would support such de novo entry. Furthermore, have significant adverse effects on the State bank­ given the present structure of the New Haven ing structure. Connecticut commercial banking market (which is already highly concentrated) the resources are highly concentrated. The largest ten proposal is clearly not in the public interest nor banking organizations in the State control more is it conducive to a competitive banking structure than 82 per cent of the commercial bank deposits. since it would increase to 86.7 per cent the share The two largest banks control 39.5 per cent of of market deposits held by the four largest banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 401 organizations. In this market, the merger would for approval of a merger that would, on balance, reduce the number of competitors from 15 to 14 have the significant adverse effects on competition while also eliminating the possibility of Clinton described above. Bank being acquired by a smaller banking organi­ With respect to the convenience and needs con­ zation. Therefore, on the basis of the record, I siderations, the record shows that all of the ser­ believe that the proposed merger would have sub­ vices that CBT plans to introduce at the offices stantially adverse effects on competition in the of Clinton Bank are presently offered in the mar­ New Haven banking market. ket. In my judgment, convenience and needs con­ Although the majority indicates that the con­ siderations do not clearly outweigh the substan­ summation of the merger would eliminate home tially adverse competitive effects of the proposal office protection for Clinton, such a benefit is and, therefore, the statute requires denial of the conceded to be of only short duration since the application. Connecticut Banking Commission has granted a For these reasons, the merger is not in the public charter for a new bank in Clinton. Thus, this factor interest, and I would deny the application. alone, in my view, cannot be sufficient grounds ORDERS NOT PRINTED IN THIS ISSUE During April 1974, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Arlco, Inc., Arlington State Bank, 4/17/74 39 F.R. 14642 Arlington, Minnesota Arlington, Minnesota; and 4/25/74 certain insurance activities First Financial Services, Inc. The First National Bank of Falls 4/19/74 39 F.R. 14770 Falls City, Nebraska City, Falls City, Nebraska 4/26/74 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 First Alabama Bancshares, Inc., American Bank and Trust Com­ 4/5/74 39 F.R. 13718 Birmingham. Alabama pany, Hartselle, Alabama 4/16/74 First Amtenn Corporation, The Cleveland National Bank, 4/17/74 39 F.R. 14642 Nashville, Tennessee Cleveland, Tennessee 4/25/74 First Bancshares of Florida, The First Marion Bank, 4/11/74 39 F.R. 13919 Inc., Boca Raton, Florida Oscala, Florida 4/18/74 First Bancshares of Florida, The First State Bank of Arcadia, 4/11/74 39 F.R. 14254 Inc., Boca Raton, Florida Arcadia, Florida 4/22/74 Mark Twain Bancshares, Inc., Mark Twain O’Fallon Bank, 4/17/74 39 F.R. 14644 Clayton, Missouri O’Fallon, Missouri 4/25/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN □ MAY 1974 ORDERS UNDER SECTION 3(h)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation Mercantile Bancorporation Inc., The First National Bank of Mont­ 4/17/74 39 F.R. 14645 St. Louis, Missouri gomery City, Montgomery City, 4/25/74 Missouri National Bancshares Corporation Churchill National Bank, 4/10/74 39 F.R. 13920 of Texas, San Antonio, Texas San Antonio, Texas 4/18/74 Southeast Banking Corporation, Pinellas Central Bank & Trust 4/22/74 39 F.R. 14771 Miami, Florida Company, Largo, Florida 4/26/74 Southeast Banking Corporation, The Security Bank, 4/22/74 39 F.R. 14772 Miami, Florida Pinellas Park, Florida 4/26/74 Southern Bancorporation, Inc., Bank of North Charleston, North 4/10/74 39 F.R. 13917 Greenville, South Carolina Charleston, South Carolina 4/18/74 Tennessee Valley Bancorp, Inc., Guaranty Bank and Trust Com­ 4non 4 39 F.R. 13920 Nashville, Tennessee pany, Memphis, Tennessee 4/18/74 Tennessee Valley Bancorp, Inc., Old & Third National Bank of 4/1/74 39 F.R. 12934 Nashville, Tennessee Union City, Union City, 4/9/74 Tennessee United First Florida Banks, The American Guaranty Bank of 4/1/74 39 F.R. 12930 Inc., Tampa, Florida Tallahaissee, Tallahassee, Florida 4/16/74 West Michigan Financial Corpora­ The First National Bank of Evart, 4/4/74 39 F.R. 13603 tion, Cadillac, Michigan Evart, Michigan 4/15/74 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 Arlco, Inc., Arlington State Bank, 4/17/74 39 F.R. 14642 Arlington, Minnesota Arlington, Minnesota; and 4/25/74 certain insurance activities Centran Bancshares Corporation, Protective Loan Corporation, 4/26/74 39 F.R. 15546 Cleveland, Ohio Albany. New York 5/3/74 Commerce Bancshares, Inc., Commerce Mortgage Company, 4/19/74 39 F.R. 14768 Kansas City, Missouri Kansas City, Missouri 4/26/74 Fourth National Corporation, Diversified Mortgage & Investment 4/30/74 39 F.R. 16195 Tulsa, Oklahoma Company, Tulsa, Oklahoma 5/7/74 First Virginia Bankshares Corpora­ Gadsden Finance Company, 4/5/74 39 F.R. 13719 tion, Falls Church, Virginia Gadsden, Alabama 4/16/74 NBC Co., Nebraska Securities Company, 4/22/74 39 F.R. 15073 Lincoln, Nebraska Scottsblluff, Nebraska 4/30/74 United Tennessee Bancshares United Tennessee Life Insurance 4/26/74 39 F.R. 15347 Corporation, Memphis, Tennessee Company, Phoenix, Arizona 5/3/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 403 ORDERS UNDER BANK MERGER ACT— APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation Bankers Trust Company of Briggs Bank of Clyde, 4/2/74 39 F.R. 13716 Rochester, Rochester, New York Clyde, New York 4/16/74 Barclays Bank of New York, First Westchester National Bank, 4/24/74 39 F.R. 15353 New York, New York New Rochelle, New York 4/24/74 Central Trust Company, Rochester The First National Bank of 4/2/74 39 F.R. 12935 N.Y., Rochester, New York Marion, Marion, New York 4/2/74 ORDERS ISSUED BY FEDERAL RESERVE BANKS During April 1974, applications were approved and orders were issued by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank(s) Reserve Bank date citation New Jersey National Delaware Valley National Philadelphia 4/25/74 39 F.R. 16933 Corporation, Trenton, Bank, Cherry Hill, 5/10/74 New Jersey New Jersey Great Lakes Bancshares, The Dime Bank, Cleveland 4/29/74 39 F.R. 16929 Inc., Cleveland, Ohio Canton, Ohio 5/10/74 First Banc Group, Inc., The Hermann Bank, St. Louis 4/17/74 39 F.R. 15072 Creve Coeur, Missouri Hermann, Missouri 4/30/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF sity (M.A. and Ph.D.). Mr. McNeill, formerly with the Treasury Department and the American The Board of Governors of the Federal Reserve Bankers Association, holds degrees from Amherst System has announced the promotion of Andrew College (B.A.) and Harvard Law School (J.D.) F. Oehmann to Assistant to the General Counsel in the Legal Division, effective May 5, 1974. CHANGE IN DISCOUNT RATE In addition the Board has appointed Paul Wonnacott as an Associate Director in the Division of The Board of Governors of the Federal Reserve International Finance, effective May 13, 1974, and System approved actions by the directors of the Charles R. McNeill as Assistant to the General Federal Reserve Banks of New York, Philadel­ Counsel in the Legal Division, effective May 20. phia, Cleveland, Richmond, Kansas City, Dallas, Prior to joining the Board’s staff, Mr. Wonna- and San Francisco, increasing the discount rate of cott was Professor of Economics at the University those Banks from IV2 per cent to 8 per cent, of Maryland. He holds degrees from the University effective April 25. Subsequently, the Board ap­ of Western Ontario (B.A.) and Princeton Univer­ proved similar increases for the Federal Reserve FEDERAL RESERVE BANK AND BRANCH DIRECTOR CHANGES Federal Reserve Bank and Branch: Cleveland Pittsburgh Richard M. Cyert, President, Carnegie-Mellon University, Pittsburgh, Penn­ sylvania, was designated Chairman of the Pittsburgh Branch, effective May 1, 1974, to succeed Douglas Grymes, President, Koppers Company, Pitts­ burgh, Pennsylvania, who resigned. Atlanta Birmingham Lawrence Harris, President, Slocomb National Bank, Slocomb, Alabama, resigned, effective March 15, 1974. Jacksonville Richard A. Cooper, Chairman of the Board, First National Bank of New Port Richey, New Port Richey, Florida, was appointed, effective February 8, 1974, to succeed Lawrence McIntosh, President, First National Bank of St. Petersburg, Florida, who resigned. New Orleans Floyd W. Lewis, President and Chief Executive Officer, Middle South Utilities, New Orleans, Louisiana, was appointed, effective April 11, 1974, to succeed Broadus N. Butler, President, Dillard University, New Orleans, Louisiana, who resigned. St. Louis Memphis Robert E. Healy, Partner-in-Charge, Price Waterhouse and Company, Mem­ phis, Tennessee, was appointed, effective March 7, 1974, to succeed Alvin Huffman, Jr., President, Huffman Bros. Lumber Company, Blytheville, Arkansas, whose term as a director expired December 31, 1973. San Francisco Los Angeles Armando M. Rodriguez, President, East Los Angeles College, Los Angeles, California, was appointed, effective April 30, 1974, to succeed Edward A. Sloan, President, Sloan’s Dry Cleaners, Los Angeles, California, whose term as a director expired December 31, 1973. Digitized for FRASE4R0 4 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banks of Chicago, St. Louis, and Minneapolis, Previously, both the State and the Federal Reserve effective April 26, the Reserve Bank of Atlanta, Bank of Chicago ordinarily assigned a complete effective April 29, and the Reserve Bank of Boston, team of examiners to conduct separate examina­ effective April 30. At that time the rate was 8 per tions of State member banks. cent at all Reserve Banks. As a supplement to the information collected The action was taken in the light of a recent by the Federal Reserve through the revised proce­ rapid rise in money and bank credit and in recog­ dures, the experimental project will include an nition of increases that have already occurred in intensified program of analyzing the flow of current other short-term interest rates. The problem of information available to the Reserve Bank regard­ inflation continues to be of serious concern to the ing each member bank. This will help test the Board. feasibility of achieving more effective supervision The discount rate is the rate charged member of State member banks. banks for borrowing from their district Federal Reserve Banks. ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM EXPERIMENTAL PROJECT IN INDIANA The following banks were admitted to membership The Federal Reserve announced on May 6, 1974, in the Federal Reserve System during the period the start of an experimental project with the In­ April 16, 1974, through May 15, 1974: diana Department of Financial Institutions for changes in the procedures by which the Federal Florida Reserve Bank of Chicago examines State member Sarasota ........................Ellis Commercial Bank banks in Indiana. Minnesota Under the new procedures, typically a single Le Seur ...............................Le Seur State Bank Federal Reserve examiner will accompany the full Montana team of State examiners on an examination. The Great Falls __Trust Corporation of Montana Federal Reserve examiner will have access to all New York materials and will attend meetings and discussions New York .........Barclays Bank of New York held with a member bank’s officers and directors. Virginia In addition, the Federal Reserve examiner will Mount Jackson .............The Stonewall Jackson ascertain the bank’s compliance with Federal laws. Bank and Trust Company Digitized for FRASER 405 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication May 15 Industrial production is estimated to have in­ of nondurable goods materials was largely un­ creased 0.4 per cent in April, following declines changed. of 0.6 per cent and 0.3 per cent on a revised basis in February and March, respectively. The April INDUSTRIAL PRODUCTION SEASONALLY ADJUSTED, RATIO SCALE, 1967=100 index at 124.7 per cent of the 1967 average was 0.5 per cent higher than a year earlier. The April increase occurred mainly in automobiles, business equipment, and durable goods materials. Consumer durable goods were up 2 per cent, reflecting mainly a 14 per cent increase in auto assemblies during April to an annual rate of 7.5 million units compared with 6.6 million units in March. Output of other durable consumer goods and nondurable consumer goods changed little at advanced levels. Production of business equipment was revised upward for March, and increased further in April by 0.5 per cent to a level about 8 per cent above a year earlier. Preliminary data for defense equipment and for output of con­ struction products and business supplies continued to change little. Production of iron and steel mill products was revised upward in March and is estimated to have risen somewhat further in April. Output of other durable goods materials, mainly in the automotive and business equipment supplying industries, also is indicated to have increased in April. Production F.R. indexes, seasonally adjusted. Latest figures: April. Seasonally adjusted Per cent 1967 - 100 changes from— Per cent changes, annual rate Industrial production 1974 1973 1974 Month Year ago ago Feb.r Mar.p Apr.e Q3 Q4 Qir Total ........................................................ 124.6 124.2 124.7 .4 .5 6.1 .9 - 7.2 Products, total ................................................. 122.2 121.9 122.3 .3 .2 3.9 1.3 - 7.1 Final products ............................................. 120.3 120.3 121.0 .6 .8 4.3 3.3 - 7.8 Consumer goods ................................... 127.8 127.4 128.3 .7 -2.0 1.8 1.2 -13.3 Durable goods ................................. 126.3 127.2 129.7 2.0 -7.7 - 8.8 -4.0 -28.1 Nondurable goods ......................... 128.3 127.5 127.9 .3 .6 6.6 3.1 - 7.3 Business equipment ........................... 127.3 127.9 128.6 .5 7.5 1 1.2 8.0 .9 Intermediate products ............................. 128.7 127.5 127.2 - .2 -1.6 4.0 -4.8 - 5.5 Construction products ....................... 131.4 129.0 129.0 0 -2.4 6.9 -5.6 - 5.7 Materials ............................................................ 128.3 128.2 128.6 .3 .7 8.4 .3 - 7.3 rRe vised. "Preliminary. ^Estimated. Digitized for FRASER40 6 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 Member bank reserves, Federal Reserve Bank credit, and related items A 7 Federal funds— Major reserve city banks A 8 Reserve Bank interest rates A 9 Reserve requirements A 10 Maximum interest rates; margin requirements A 11 Open market account A 12 Federal Reserve Banks A 13 Bank debits A 14 Money stock A 15 Bank reserves; bank credit A 16 Commercial banks, by classes A 20 Weekly reporting banks A 25 Business loans of banks A 26 Demand deposit ownership A 27 Loan sales by banks A 27 Open market paper A 28 Interest rates A 31 Security markets A 32 Stock market credit A 33 Savings institutions A 35 Federally sponsored credit agencies A 36 Federal finance A 38 U.S. Government securities A 41 Security issues A 44 Business finance A 45 Real estate credit A 50 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ MAY 1974 U.S. STATISTICS— Continued A 54 Industrial production A 56 Business activity A 56 Construction A 58 Labor force, employment, and unemployment A 59 Consumer prices A 59 Wholesale prices A 60 National product and income A 62 Flow of funds INTERNATIONAL STATISTICS: A 64 U.S. balance of payments 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 Open market rates; arbitrage on Treasury bills A 86 Gold reserves of central banks and governments A 87 Gold production A 95 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 variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as 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-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 Flows: On, and not on, Federal Reserve 1961-72 .................................. Sept. 1973 A-70—A-71.13 Par List, number ................... Feb. 1974 A-99 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 Banking offices and deposits of Member banks: group banks, Dec. 31, 1972 June 1973 A-102—A-104 Calendar year ...............................May 1973 A-96—A-105 Income ratios ...............................May 1973 A-106—A-l 11 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 □ MAY 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 Held Other stock Rights rency under Loans Float 2 F.R. Total 4 certificate out­ Bought repur­ assets 3 account stand­ Total 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—Dec.. 5t,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec.. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 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 '2,190 960 '81,831 10,410 4(30 8,478 June. 75,355 75,047 308 rl,788 r2,371 942 '80,547 10,410 400 8,518 July.. 77,448 76,875 573 2,051 r3,162 1,180 '83,929 10,410 400 8,538 Aug.. 76,653 76,475 178 r2,144 '2,563 1,018 '82,443 10,410 400 8,549 Sept.. 76,073 75,712 361 1,861 '2,925 889 '81,810 10,410 400 8,584 Oct... 78,042 77,500 542 '1,465 '2,936 1,122 '83,644 10,933 400 8,613 Nov.. 78,457 77,937 520 1,399 '2,764 1,078 '83,756 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... 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 Apr.®. 81,567 80,873 694 1,714 2,272 1,160 86,884 11,567 400 8,807 Week ending— 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 20. 80,813 80,303 510 1,483 1,889 961 85,262 11,567 400 8,768 27. 80,920 80,302 618 1,713 1,766 1,003 85,546 11,567 400 8,772 Apr. 3.. 81,330 80,483 847 1,503 1,801 1,060 85,923 11,567 400 8,789 10.. 80,675 80,485 190 1,194 2,039 1,104 85,111 11,567 400 8,800 17p. 81,606 80,651 955 1,817 2,700 1,134 87,387 11,567 400 8,803 24 p. 81,689 80,996 693 1,938 2,491 1,191 87,513 11,567 400 8,812 End of month 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 1,820 1,287 1,078 86,272 11,567 400 8,813 Apr.^. 82,661 8 81,749 912 1,747 1,674 1,313 87,611 11,567 400 8,824 Wednesday 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 2,673 915 '84,657 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 20. 81,461 8 80,331 1,130 2,163 2,123 998 86,911 11,567 400 8,769 27. 80,176 9 79,781 395 2,033 2,222 1,029 85,590 11,567 400 8,773 Apr. 3.. 80,483 8 80,483 1,116 2,632 1,053 85,358 11,567 400 8,797 10.. 80,478 8 80,478 1,286 2,549 1,106 85,492 11,567 400 8,801 17*. 81,195 8 80,682 513 1,285 2,722 1,283 86,580 11,567 400 8,803 24p. 81,489 8 80,933 556 2,169 2,530 1,229 87,616 11,567 400 8,821 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

MAY 1974 a 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 C t e c u i i n i u o n l r c a r n ­ y ­ ­ T h c i u r n o a e r g l s a d y h s s ­ ­ T u re r a y s­ with r e F s F e . e i R o g r r v n . ­ e B s, a nks c O o F u a t . h n c R ­ e t . s r 3 c b a O F i a p l l t i . n i i h a R t t d i a e ­ e . r l s 3 B W F a . n R it k h . s re c r C s a o e e n n u i r n d c r v y ­ * e s Period or date 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 *•5,852 r31,969 .1973—Mar. 66,068 414 3,471 275 666 2,622 26,281 *■5,822 *■32,275 .............Apr. 66,726 413 4,121 330 652 2,721 *•26,157 6,007 *■32,336 .............May 67.609 386 2,408 266 698 2,732 r25,777 6,086 *•32,029 .............June 68,382 346 3,375 341 782 2,846 *•27,205 *•6,273 *■33,590 .............July 68,394 344 1,674 300 838 2,877 *•27,375 6,296 *•33,783 .............Aug. 68.592 349 792 332 781 2,848 *•27,510 6,402 *•34,020 .............Sept. 68,909 622 1,718 266 5 752 2,866 *•28,458 6,371 *•34,913 .............Oct. 69,927 340 1,772 522 5 689 2,854 *”28,259 *•6,382 *-34,725 .............Nov. 71,646 323 1,892 406 5 717 2,942 28,352 6,635 35,068 .............Dec. 70,411 342 2,972 293 5 682 2,932 28,574 6,601 35,242 . 1974—Feb. 71,081 334 1,803 311 5 699 2,998 28,450 6,450 34,966 .............Mar. 72,176 308 1,712 328 5 702 2,985 29,446 6,418 35,922 .............Apr. * Week ending— 69,935 349 3,084 306 5 689 2,947 28,424 6,984 35,475 . 1974—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 29,025 6,117 35,209 ...........20 71,117 335 2,317 307 5 669 3,093 28,448 6,259 34,774 ...........27 71,366 340 1,889 372 5 704 3,105 28,904 6,481 35,443 .Apr. 3 72,008 326 1,354 300 5 725 2,854 28,311 6,633 35,002 ............10 72,616 303 1,299 439 s 695 3,010 29,796 6,454 36,308 ...........17* 72,308 288 1,666 269 5 703 2,997 30,061 5,990 36,109 ...........24* End of month 70,493 332 2,016 542 5 679 3,091 27,989 6,572 34,628 .1974—Feb. 71,196 341 1,373 366 5 673 3,262 29,838 6,481 36,377 .............Mar. 72,218 295 2,813 517 5 697 3,129 28,733 6,591 35,382 .............Apr.* Wednesday 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 s 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 *•28,703 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 29,920 6,117 36,104 ...........20 71,378 338 2,094 355 5 683 3,073 28,410 6,259 34,736 ...........27 71,762 340 2,426 264 5 748 2,757 27,825 6,481 34,364 .Apr. 3 72,633 313 1,277 339 5 758 2,918 28,021 6,633 34,712 10 72,723 293 902 368 s 670 2,896 29,497 6,454 36,009 17* 72,310 287 2,425 279 5 700 3,026 29,377 5,990 35,425 1...............................................24* 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, I960; 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

A 6 BANK RESERVES AND RELATED ITEMS □ MAY 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re­ Excess i Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held1 quired sonal ings ings ings ings 1939—Dec.. 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec.. 12,812 9,422 3,390 5 989 295 1,303 1 804 4 1945—Dec.. 16,027 14,536 1,491 334 48 192 14 418 96 1,011 46 1950—Dec.. 17,391 16,364 1,027 142 125 58 8 5 232 50 663 29 1960—Dec.. 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec.. 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—Dec.. 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec.. 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec.. 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec.. 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec.. 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—Dec.. 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Apr.. 32,275 32,126 149 1,721 5 38 146 8 9 -112 828 43 738 May. 32,336 32,277 59 1,786 30 -35 110 6 12 -115 881 31 783 June. 32,029 31,970 59 1,788 77 -61 145 -5 28 -79 904 38 711 July.. 33,590 33,199 391 2,050 124 156 135 30 67 -2 855 95 993 Aug.. 33,783 33,540 243 2,144 163 34 109 -8 53 8 755 97 1,227 Sept.. 34,020 33,775 245 1,861 147 -6 115 24 62 40 712 79 972 Oct... 34,913 34,690 223 1,465 126 11 74 1 54 17 589 110 748 Nov.. 34,725 34,543 182 1.399 84 27 180 -24 28 -20 593 115 598 Dec.. 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Jan.... 36,655 36,419 236 1,044 18 65 135 -44 17 -8 549 156 343 Feb.... 35,242 35,053 189 1,186 17 51 87 -19 18 -51 635 141 446 Mar... 34,966 34,790 176 1,352 32 21 113 -61 65 43 689 107 485 Apr.p . 35,922 35,772 150 1,714 52 44 114 -8 40 -42 985 98 575 Week ending— 1973—Apr. 4r 32,614 32.078 536 1,755 169 144 18 8 97 866 80 737 11' 31,757 31;848 -91 1,499 -184 24 -14 13 -94 774 29 688 18r 32,627 32,390 237 1,848 146 306 2 2 -103 842 20 698 25 r 32,402 32,064 338 1,646 9 80 45 20 18 13 795 53 788 Nov. 7. 34,626 34,369 257 1,171 93 101 192 -53 12 -7 384 132 583 14. 34,871 34,725 146 1,521 80 -92 262 61 29 716 125 482 21. 35,095 34,726 369 1,568 85 110 224 2 15 66 623 107 706 28. 34,438 34,372 66 1,287 84 -56 94 -14 28 -31 541 83 624 Dec. 5. 34,906 34,468 438 1,478 57 167 15 11 29 889 143 578 12. 34,444 34,472 -28 1,303 45 -139 102 -23 11 -37 769 87 421 19. 35,203 34,892 311 1,488 40 137 163 29 +34 837 95 488 26. 35,430 34,958 472 1,039 35 106 30 81 676 171 363 1974—Jan. 2. 35,656 35,268 388 1,210 31 80 140 -6 141 24 599 223 330 9. 36,296 36,210 86 776 19 2 271 -47 44 -96 174 160 287 16. 37,702 37,374 328 988 20 59 45 16 27 681 159 262 23. 36,610 36,693 -83 1,182 13 -114 183 -12 -110 655 86 344 30. 36,139 35,880 259 1,220 17 104 20 -57 15 733 130 467 Feb. 6. 35 475 35 351 124 998 18 -123 14 34 494 132 504 13. 35^348 35,054 294 1,153 15 144 92 -23 56 -34 585 140 420 20. 35,388 35,274 114 1,376 20 -37 257 -63 -42 711 189 408 27. 34,851 34,645 206 1,251 16 70 -17 13 -24 780 110 458 Mar. 34,633 34,515 118 912 19 -81 123 13 11 1 364 118 414 13. 34,748 34,632 116 983 19 41 11 -8 66 -82 507 98 399 20. 35,209 35,129 80 1,483 35 - 41 333 -3 15 -36 679 93 456 27. 34,774 34,605 169 1,713 43 10 31 40 21 -16 1,061 68 600 Apr. 3.. 35,443 35,217 226 1,503 44 77 34 -9 189 -27 710 127 570 10.. 35,002 34,940 62 1,194 41 -73 108 4 53 6 663 67 370 17*. 36,308 35,914 394 1,817 47 82 107 -28 101 80 1,093 202 516 24?. 36,109 35,919 190 1,938 54 -19 69 48 4 -2 1,231 105 634 1 Beginning with week ending Nov. 15, 1972, includes $450 million of parallel the previous “Reserve city” and “Country” categories, respectively reserve deficiencies on which F.R. Banks are allowed to waive penalties (hence the series are continuous over time). for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies Note.—Monthly and weekly data are averages of daily figures within included are (beginning with first statement week of quarter): Ql, $279 the month or week, respectively. Beginning with Jan. 1964 reserves are million; Q2, $172 million; Q3, $112 million; Q4 million. Beginning 1974 estimated except for weekly averages. Ql, $67 million, Q2, $58 million. Borrowings at F.R. Banks: Based on closing figures. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks Effective Apr. 19, 1963, the Board’s Regulation A, which governs lend­ for reserve-requirement purposes has been based on size of bank (net ing by Federal Reserve Banks, was revised to assist smaller member banks demand deposits of more than $400 million), as described in the Bulletin to meet the seasonal borrowing needs of their communities. for July 1972, p. 626. Categories shown here as “Large” and “All other” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers 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 s s 1 r a B o t B w a F o n i r n . k R ­ g s . s F f t i b e r n u N d a a t n e e e n n d r r t k s s a ­ . l S d u e r o f p i r c l i u t s a o vg f . 1 c P ha u s r e - s Sales t a w t c T r o t o a i - o n t w a n s a l ­ s y 2 b c o b P u h a f y a u n n i s r k n e e ­ s t g s s b o S e a f a l l n n l i e n k e s g s t d L ea o t l a o e n rs s 3 de f r B i r a n o o o l w g e r m s r ­ ­ s4 lo N a e n t s Total—46 banks Mar. 6. 25 292 16,410 -16,408 5 22,757 6,617 5,863 16,895 754 2,514 589' 1,925 13. 18 344 c16,919 -17,239 9 c22,612 5,693 5,211 C17,401 482 2,186 667 1,519 20. -13 603 15,129 -15,745 8 20,675 5,546 5,123 C15,552 423 1,811 643 1,168 27. 31 684 15,047 -15,699 1 21,321 6,274 5,371 15,951 904 1,575 682 893 Apr. 3. 278 593 14,779 -15,094 9 21,490 6,711 5,832 15,658 879 1,463 604 859 10. 74 182 16,738 -16,846 108.7 22,700 5,962 5,380 17,320 582 1,610 516 1,094 17. 296 665 17,196 -17,565 108.3 22,124 4,928 4,454 17,671 475 1,557 432 1,125 24. 106 728 13,698 -14,320 89.* 19,837 6,140 5,401 14,436 738 1,227 548 680 8 in New York City Mar. 6. -18 123 5,771 -5,911 97.5 6,850 1,080 1,080 5,771 1,710 304 1,406 13. 46 11 c5,892 '-5,858 i c6,746 854 854 5,892 1,400 289 1,111 20. -7 330 3,967 -4,304 7 5,166 1,198 1,136 4,030 62 1,102 321 781 27. 15 32 4,385 -4,402 I 5,725 1,339 1,245 4,480 95 828 368 460 Apr. 3. 76 34 4,074 -4,032 5 5,259 1,186 1,099 4,160 86 725 249 476 10. -3 79 5,294 -5,375 85.) 6,397 1,103 1,103 5,294 906 277 629 17. 64 107 4,696 -4,739 i 5,733 1,036 1,037 4,696 852 216 636 24. 4 55 2,621 -2,672 5 4,825 2,203 1,863 2,962 340 560 309 251 38 outside New York City Mar. 6. 42 170 10,370 -10,497 1 15,907 5,537 4,783 11,124 754 804 286 518 13. -28 333 C11,027 -11,388 125. > 15,866 4,839 4,357 11,509 482 786 378 408 20. -6 274 11,162 -11,441 > 15,510 4,348 3,987 11,523 361 709 321 388 27. 16 652 10,662 -11,298 > 15,597 4,935 4,126 11,471 809 747 314 433 Apr. 3. 203 559 10,706 -11,062 i 16,231 5,525 4,733 11,498 793 738 355 383 10. 77 103 11,444 -11,470 ) 16,303 4,859 4,276 12,027 582 703 239 465 17. 232 558 12,500 -12,826 132. r 16,392 3,892 3,417 12,975 475 705 215 489 24. 101 673 11,076 -11,648 1 15,013 3,936 3,538 11,475 398 668 239 429 5 in City of Chicago Mar. 6.. 7 4,410 -4,404 5,330 920 919 4,411 441 441 13.. -7 52 4,205 -4,264 273. 5,061 856 857 4,205 423 423 20.. -11 4,009 -4,020 4,846 837 837 4,009 414 414 27.. 10 3,877 -3,867 4,691 814 814 3,877 457 457 Apr. 3.. 1 150 3,993 -4,142 ' 4,656 664 664 3,993 436 436 10.. 12 4,310 -4,298 260.3 5,099 789 789 4,310 420 420 17.. -14 'ioo 4,641 -4,755 5,218 576 576 4,641 410 410 24.. 50 3,627 -3,577 4,475 848 848 3,627 358 358 33 others Mar. 6.. 36 170 5,959 -6,093 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 c3,150 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 Apr. 3.. 202 409 6,713 -6,920 91.7 11,575 4,862 4,069 7,506 793 302 355 -53 10.. 65 103 7,134 -7,172 94.4 11,204 4,070 3,488 7,716 582 284 239 45 17.. 246 458 7,859 -8,071 103.0 11,174 3,316 2,841 8,334 475 295 215 79 24.. 52 673 7,449 -8,071 102.0 10,538 3,089 2,690 7,848 398 310 239 71 * 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 □ MAY 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):l last par. Sec. 133 Federal Reserve Bank A R p a 1 r t 9 . e 7 3 4 o 0 n , Ef d fe a c t t e ive Pr r e a v t i e ous A R p a 1 r t 9 e . 7 4 3 o 0 n , Ef d fe a c t t e ive Pr r e a v t i e ous A R p a 1 r 9 te . 7 4 3 o 0 n , Ef d fe a c t t e ive Pr r e a v t io e us Boston.................................................. 8 Apr. 30, 1974 7*4 8*4 Apr. 30, 1974 8 4 10 Apr. 30, 1974 9*4 New York............................................ 8 Apr. 25, 1974 7*4 m Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 Philadelphia........................................ 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 Cleveland............................................. 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 Richmond............................................ 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 Atlanta................................................. 8 Apr. 29, 1974 7.V4 8*4 Apr. 29, 1974 8 4 10 Apr. 29, 1974 9*4 Chicago................................................ 8 Apr. 26, 1974 7*4 8*4 Apr. 26, 1974 8 4 10 Apr. 26, 1974 9*4 St. Louis............................................... 8 Apr. 26, 1974 7*4 8*4 Apr. 26, 1974 8 4 10 Apr. 26, 1974 9*4 Minneapolis........................................ 8 Apr. 26, 1974 7*4 8*4 Apr. 26, 1974 8 4 10 Apr. 26, 1974 9*4 Kansas City........................................ 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 Dallas................................................... 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 4 10 Apr. 25, 1974 9*4 San Francisco..................................... 8 Apr. 25, 1974 7*4 8*4 Apr. 25, 1974 8 10 Apr. 25, 1974 9*4 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain * Also effective on the same dates as the other rates shown above fo r bankers* acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 8 per cent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954, 1*4 1*4 1959—Mar. 6 21/2-3 3 1970—Dec. 1..................... 5V4-53/4 534 16, 3 3 4..................... 5*4-53/4 51/2 1955—Apr. 14............ 1*4-134 1*4 May 29, 3 -3 Vi 3*4 11..................... 5*4 5*4 S A N M e u o a p g v y t . . . 2 1 1 1 1 9 5 4 2 3 2 8 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 1 1 1 3 3 * / 2 2 4 4 4 l 4 1 - - * - - - 3 - 4 2 2 1 4 4 2 2 2 1 * % * * * 4 4 4 4 4 2 2 2 2 2 2 1 1 1 * * * * 3 3 3 4 4 4 4 4 4 4 1960— S J J A S u u e e u p p n n g t t e e . . . 1 1 1 1 1 1 9 2 0 2 4 8 1 3 . , , , , , , , 3 3 3 3 * * * 4 4 3 3 3 4 4 - % - % - - 4 4 4 m 4 4 4 3 3 3 3 3 * * * 4 4 4 1971— J F J u a e n l b y . . 2 2 2 1 1 1 1 1 2 9 9 8 3 9 6 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 *4 4 4 4 5 5 5 - 3 3 * - - 3 5 5 5 4 4 ^ 4 1 * * - - / 5 4 4 5 4 5 5 5 4 5 5 5 5 5 1 * 1 3 / 4 4 4 4 1956— A A u p g r. . 2 2 1 4 0 3 . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . 2 2 2 3 * 3 4 4 4 - - -3 3 3 2 2 3 3 3 / 4 4 1 1 9 9 6 6 3 4 — — J N u o ly v . 2 2 1 6 4 7 . , . 3 3 3 * - * 4 3 4 - 4 Vi 4 3 3 * * 4 4 D N e o c v . . 1 1 1 1 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 43 * 3 4 4 4 - - 4 5 34 4 4 5 3 3 4 4 31............ 3 3 30. 4 4 17..................... 4*4-434 4*4 1965—Dec. 6. 4 -4*4 4*4 24..................... 4*4 4*4 1957—Aug. 9............ 3 -3*4 3 13. 4*4 4*4 1973—Jan. 15.................... 5 5 N De o c v . . 2 1 2 5. 3 . . . . . . . . . . . . . . . . . . . . . .. . 3 3 3 - * 3 4 *4 3 3 3 *4 1967— N Ap o r v . . 2 1 0 7 4 . . . 4 4 4 - - 4 4 * * 4 4 4 4 4 *4 M A M Fe p a a b r r y . . . 2 2 4 2 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 * 5 4 51 3 - - / 5 5 4 2 * 34 4 5 5 5 5 3 * * * 4 4 4 4 1958—Jan. 22............ 234-3 3 27. 4*4 41/z 11..................... 53/4-6 6 Mar. 2 7 4 ... ......... 2 2 3 * 4 4 - - 3 3 2 21 3 / 4 4 1968—Mar. 2 1 2 5 , , 4V 5 4-5 4 5 *4 June 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -6*4 6 6 *4 Apr. 2 1 1 1 8 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 * 3 2 4 4 * - -2 4 2 3 * 4 4 2 2 l * * 34 4 4 A A p u r g . . 2 1 1 6 6 9 . . , 5 5 * 5 4 * - - 5 4 5 * * 4 4 5 5 5 * * * 4 4 4 J A u u l g y . 1 1 2 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 7 - * 7 4 *4 7 6 7 * * 4 4 May 9............ m l3/4 30, 5*4 5*4 23..................... 7*4 7*4 S A e u p g t . . 2 1 1 3 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m 13 2 4 - - 2 2 2 2 134 Dec. 2 1 0 8 , , 5*4 5* -5 4 *4 5 5* * 4 4 1974— A A p p r r . . 2 3 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71/2 8 -8 8 8 Oct. 24............ 2 -2*4 2 1969—Apr. 4, 5*4-6 6 Nov. 7............ 2*4 2*4 8, 6 6 In effect Apr. 30, 1974.. .. 8 8 1970—Nov. 11, 5*4-6 6 13, 5%-6 5V4 16, 5% 5% 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

MAY 1974 o RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Time 3 Net demand 2 (all classes of Net demand 2,4 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav­ 0-2 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 16% 17% 83 »3 85 Jan. 1, 1963. 16 % 12 Nov. 16. 13 1966—July 14, 21. 1973—July 19.. 10% 12% 13% 18 Sept. 8, 15. 1967—Mar. 2.... 3% 3% In effect Mar. 16.... 3 3 Apr. 30, 1974 10% 12% 13% 18 1968—Jan. 11, 18. 16 % 17 12 121/2 1969—Apr. 17.... 17 17% 12i/2 13 1970—Oct. 1........ Present legal limits: 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 office of such a bank constitutes designation of that place as a reserve city banks and the second to the change at country banks. For changes city. Cities in which there are F.R. Banks or branches are also prior to 1963 see Board’s Annual Reports. reserve cities. Any banks having net demand deposits of $400 million or 2 (a) Demand deposits subject to reserve requirements are gross de­ less are considered to have the character of business of banks outside of mand deposits minus cash items in process of collection and demand reserve cities and are permitted to maintain reserves at ratios set for banks balances due from domestic banks. not in reserve cities. For details, see Regulation D and appropriate sup­ (b) Requirement schedules are graduated, and each deposit interval plements and amendments. applies to that part of the deposits of each bank. 5 Reserve city banks. (c) Since Oct. 16, 1969, member banks have been required under 6 Except as noted below, effective Dec. 27, 1973, member banks are Regulation M to maintain reserves against foreign branch deposits subject to an 8 per cent marginal reserve requirement against increases computed on the basis of net balances due from domestic offices to their in the aggregate of (a) outstanding time deposits of $100,000 or more, foreign branches and against foreign branch loans to U.S. residents. (b) outstanding funds obtained by the bank through issuance by a bank’s Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident affiliate of obligations subject to the existing reserve requirements on time have been excluded from computations, as have total loans of a bank to deposits, and (c) funds from sales of finance bills. The 8 per cent require­ U.S. residents if not exceeding $1 million. Regulation D imposes a similar ment applies to balances above a specified base, but is not applicable to reserve requirement on borrowings from foreign banks by domestic offices banks that have obligations of these types aggregating less than $10 million. of a member bank. The reserve percentage applicable to each of these For the period June 21 through Aug. 29, 1973, (a) included only single­ classifications is 8 per cent. The requirement was 10 per cent originally, maturity time deposits. Previous requirements have been: 8 per cent for was increased to 20 per cent on Jan. 7,1971, and was reduced to the current (a) and (b) from June 21 through Oct. 3, 1973, and for (c) from July 12 8 per cent effective June 21, 1973. Initially certain base amounts were through Oct. 3, 1973; and 11 per cent from Oct. 4 through Dec. 26, 1973. exempted in the computation of the requirements, but effective Mar. 14, For details, see Regulation D and appropriate supplements and amend­ 1974, the last of these reserve-free bases were eliminated. For details, see ments. Regulations D and M. 7 The 16% per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 8 See preceding columns for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ serve cities, and on the same date requirements for reserves against net demand deposits of member banks were restructured to provide that each Note.—All required reserves were held on deposit with F.R. Banks member bank will maintain reserves related to the size of its net demand June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member deposits. The new reserve city designations are as follows: A bank having banks were allowed to count part of their currency and coin as reserves; net demand deposits of more than $400 million is considered to have the effective Nov. 24, 1960, they were allowed to count all as reserves. For character of business of a reserve city bank, and the presence of the head 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 □ MAY 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.............. Savings deposits.............................................. Other time deposits:1 Other time deposits (multiple- and single­ Multiple maturity:2 maturity) : 30-89 days.......... 4 4% Less than $100,000: 90 days to 1 year. 5 30-89 days........................................... 5 5 1 year to 2 years., 5 5% 90 days to 1 year................................. 2 years or more... 5% 1 year to 2% years.............................. 2* I* Single-maturity: 2 Vi years or more................................ 6% 6% Less than $100,000: 4 years or more in minimum denom­ 30 days to 1 year. 5 ination of $1,000.......................... (4) 7% 1 year to 2 years.. 5% 5% $100,000 or more........................................ (3) (3) 2 years and over. . 5% $100,000 or more: 30-59 days.......... 5% (3) 60-89 days.......... sy4 (3) 90-179 days........ 5% 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 re y . e . a . r W/4 ( ( 3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such Bulletin for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 per cent of its total 2 Multiple-maturity time deposits include deposits that are automati­ time and savings deposits. Sales in excess of that amount were subject to cally renewable at maturity without action by the depositor and deposits the 6Yi 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 7 lA per cent was imposed on of $100,000 or more have been suspended. Rates that were effective certificates maturing in 4 years or more with minimum denomination Jan. 21, 1970, and the dates when they were suspended are: of $1,000. There is no limitation on the amount of these certificates that banks may issue. 3 60 0 - - 8 5 9 9 d d a a y y s s 6 6% lA p p e e r r c c e en nt t l f June 24, 1970 Note.—Maximum rates that may be paid by member banks are estab­ 90-179 days 6% per cent I 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 7 Vi per centj 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. 40 50 1945—Feb. 5 July 4.................. 50 50 July 5 1946—Jan. 20.................. 75 75 1946—Jan. 21 1947—Jan. 100 100 1947—Feb. 1 1949—Mar. 29.................. 75 75 1949—Mar. 30 1951—Jan. 16.................. 50 50 1951—Jan. 17 1953—Feb. 19.................. 75 75 1953—Feb. 20 1955—Jan. 3.................. 50 50 1955—Jan. 4 Apr. 22.................. 60 60 Apr. 23 1958—Jan. 15.................. 70 70 1958—Jan. 16 Aug. 4.................. 50 50 Aug. 5 Oct. 15.................. 70 70 Oct. 16 1960—July 27.................. 90 90 1960—July 28 1962—July 9.................. 70 70 1962—July 10 1963—Nov. 5.................. 50 50 1963—Nov. 6 1968—Mar. 10.................. 70 70 1968—Mar. 11 June 7.................. 70 50 70 June 8 1970—May 5.................. 80 60 80 1970—May 6 1971—Dec. 3................. 65 50 65 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1974—Jan. 2................... 65 50 65 Effective Jan. 3, 1974 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Period Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur­ sales tions pur­ sales shifts, or pur­ sales maturity pur­ sales maturity pur­ sales maturity chases chases redemp­ chases shifts chases shifts chases shifts tions 197 0 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 197 1 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 197 2 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 197 3 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1973—Mar. 1,569 260 200 Apr.. 1,377 51 50 127 19 May. 717 ”623 600 -3,829 -1,316 5,105 40 June. 1,047 218 163 17 123 37 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 93 77 Feb.. 768 391 410 687 30 -922 200 35 Mar.. 664 566 165 109 56 25 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 3 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 chases tions right agree­ ments 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8.076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1973—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 72 Mar.., 854 566 165 702 702 6,248 5,124 1,247 170 48 * 185 223 1,780 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 io o d f Total s P t o e u rl n in d g s s A ch u i 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 er a m 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 1970—Dec............. 257 154 * * 98 1 * 4 1971—Dec............. 18 3 3 * 2 1 8 1972—Dec............. 192 * * • 164 1 20 6 1973— J J A J A M M F u u a e u p n l a n a b y g r r . y e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 4 4 4 4 4 5 2 * * • * * * * * * * * * * * * * * * * * * * * * 6 * * * * 7 1 * * 1 1 1 1 1 1 1 1 20 3 3 3 3 3 3 3 3 Sept............. 4 * * * * 1 3 Oct.............. 4 * * * 1 3 D N e o c v . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 * * * * * * 1 1 3 3 1974—Jan.............. 1 * * * 1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ MAY 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 Apr. 24 Apr. 17 Apr. 10 Apr. 3 Mar. 27 Apr. 30 Mar. 31 Apr. 30 Assets 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 400 400 400 400 400 400 400 400 241 247 258 267 272 234 280 323 Loans: 2,169 1,285 1,286 1,116 2,033 1,747 1,820 1,716 Acceptances: 81 76 73 74 74 81 73 84 118 19 56 135 223 52 Federal agency obligations: 2,242 2,123 2,123 2,123 2,123 2,436 2,123 1,261 105 43 24 218 185 29 U.S. Govt, securities: Bought outright: Bills.......................................................................... 36,559 36,599 36,395 36,400 35,698 37,181 36,400 34,087 39,128 38,956 38,956 38,956 38,956 39,128 38,956 36,976 3,004 3,004 3,004 3,004 3,004 3,004 3,004 3,571 Total bought outright................................................ i 78,691 i 78,559 i 78,355 i 78,360 1,277,658 1 79,313 i 78,360 74,634 Held under repurchase agreements........................... 451 470 371 694 1,123 861 Total U.S. Govt, securities........................................... 79,142 79,029 78,355 78,360 78,029 80,007 79,483 75,495 Total loans and securities............................................. 83,857 82,575 81,837 81,673 82,339 84,624 83,907 78,637 Gash items in process of collection.............................. *8,249 *9,641 7,895 8,279 7,441 *8,440 5,778 6,333 Bank premises............................................................... 231 232 230 230 228 231 227 199 Other assets: Denominated in foreign currencies........................... 6 6 6 6 6 6 6 4 All other..................................................................... 992 1,045 870 817 795 1,076 845 925 Total assets..................................................................... *105,436 *105,606 102,956 103,132 102,941 *106,471 102,903 97,124 Liabilities F.R. notes....................................................................... 63,910 64,354 64,297 63,465 63,107 63,816 62,900 58,269 Deposits: Member bank reserves............................................... *29,377 *29,497 28,021 27,825 28,410 *28,733 29,838 25,700 U.S. Treasury General account............................ 2,425 902 1,277 2,426 2,094 2,813 1,373 4,163 279 368 339 264 355 517 366 328 Other: All other3................................................................ 700 670 758 750 683 697 673 773 *32,781 *31,437 30,395 31,265 31,542 *32,760 32,250 30,964 Deferred availability cash items.................................... 5,719 6,919 5,346 5,645 5,219 6,766 4,491 5,138 Other liabilities and accrued dividends....................... 1,078 1,049 1,034 971 987 1,087 1,118 793 *103,488 *103,759 101,072 101,346 100,855 *104,429 100,759 95,164 Capital accounts 872 872 872 872 872 874 872 814 844 844 844 844 844 844 844 793 Other capital accounts................................................... 232 131 168 70 370 324 428 353 Total liabilities and capital accounts............................ 105,436 105,606 102,956 103,132 102,941 106,471 102,903 97,124 Contingent liability on acceptances purchased for foreign correspondents.............................................. 702 698 697 706 682 700 684 344 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 27,158 27,153 26,875 26,662 26,117 27,349 26,635 30,184 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 68,050 67,983 67,543 67,252 67,062 68,018 67,218 62,330 Collateral held against\iotes outstanding: 2,150 2,250 2,250 2,305 2,305 2,150 2,305 2,300 U.S. Govt, securities.................................................. 67,195 67,000 66,840 66,840 66,820 67,195 66,840 61,665 69,345 69,250 69,090 69,145 69,125 69,345 69,145 63,965 i See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 o 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 Apr. 24 Apr. 17 Apr. 10 Apr. 3 Mar. 27 Apr. 30 Mar. 31 Apr. 30 2,095 1,285 1,287 1,115 2,034 1,747 1,821 1,709 Within 15 days............................................................ 2,061 1,264 1,260 1,088 2,012 1,709 1,799 1,688 16 days to 90 days...................................................... 34 21 27 27 22 38 22 21 91 days to 1 year......................................................... 199 95 73 74 130 216 296 136 Within 15 days.................................................... 129 36 19 30 83 150 253 65 67 56 51 44 47 63 43 71 91 days to 1 year........................................................ 3 3 3 3 U.S. Government securities—Total.............................. 79,142 79,029 78,355 78,360 78,029 80,007 79,483 75,495 5,443 5,459 5,547 5,839 5,465 5,327 5,298 9,186 19,462 19,874 19,229 19,691 18,951 19,917 18,951 18,170 91 days to 1 year........................................................ 22,063 21,694 21,577 20,828 21,611 22,589 23,232 14,264 Over 1 year to 5 years.............*................................ 22,516 22,344 22,344 22,344 22,344 22,516 22,344 28,148 Over 5 years to 10 years............................................. 7,836 7,836 7.836 7,836 7,836 7,836 7,836 4,138 Over 10 years.............................................................. 1,822 1,822 1,822 1,822 1,822 1,822 1,822 1,589 2,347 2,166 2,123 2,123 2,147 2,654 2,308 1,290 Within 15 days*......................................................... 105 91 48 24 218 185 34 16 days to 90 days...................................................... 115 87 87 135 135 119 135 42 91 days to 1 year........................................................ 247 275 275 275 275 260 275 231 Over 1 year to 5 years................................................ 897 821 821 821 821 978 821 545 Over 5 years to 10 years............................................ 656 608 608 608 608 723 608 247 Over 10 years ............................................................. 327 284 284 284 284 356 284 191 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 S Y 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 L N e .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1973—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........................... r17,224.4 7,381.4 4,282.4 r9,843.0 r5,560.7 102.6 247.5 111.7 71.3 55.8 Aug............................... r17,889.7 7,744.6 4,318.2 '10,145.1 '5,826.8 106.2 252.5 113.6 73.6 58.4 Sept.............................. r17,919.6 8,025.3 4,195.7 r9,894.2 r5,698.5 107.4 266.4 111.6 72.4 57.5 Oct................................ r18,395.3 8,137.2 4,418.0 r10,258.0 '5,840.0 109.5 265.3 116.4 74.7 58.8 Nov.............................. '19,050.5 8,437.9 4,519.8 M0,612.6 '6,092.7 113.2 274.9 118.6 77.1 61.2 Dec............................... ’’18,641.4 8,097.7 4,462.8 M0,543.7 '6,080.9 110.2 269.8 115.0 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 '116.2 77.3 62.2 Feb.'........................... 19,814.1 8,896.2 4,582.1 10,917.9 6,335.8 118.0 294.2 119.9 79.3 63.7 Mar.............................. 20,176.4 8,914.4 4,718.0 11,262.0 6,544.1 118.3 292.5 120.8 80.4 64.8 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 □ MAY 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 Mt Mi Mi Mi Composition of measures is described in the Note below. 1971—Dec................................ 235.2 473.0 726.9 241.9 All.9 731.2 1972—Dec................................ 255.7 525.5 822.4 263.0 530.6 826.6 1973—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 '907.0 269.7 577.6 904.9 Mar............................... 274.9 '584.1 '913.5 '272.1 '583.6 '914.9 Apr.p............................. 276.7 588.0 919.2 278.2 592.3 925.9 Week ending— 1974—Apr. 3........................ 276.0 585.8 275.5 588.5 10........................ 276.2 587.0 279.2 592.8 17 p...................... 278.7 589.9 283.0 597.3 24*...................... 276.4 588.0 277.1 591.4 May 1p...................... 275.3 587.5 273.7 588.6 Note.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial Mi: Mi plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see "Revision of the Money Stock Meas­ commercial banks. ures and Member Bank Deposits” on pp. 81-95 of the Feb. 1974 Bulletin. Mu 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 Other Total Total Mem­ tic- CD’s* Other Total ber nonmember 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—Ma y 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 65.5 304.1 369.6 324.8 61.5 215.3 156.3 56.6 66.1 302.9 368.9 325.0 8.0 Feb.............. 62.6 210.0 66.6 307.6 374.2 326.9 61.8 207.9 151.1 54.5 65.9 307.9 373.8 '327.4 6.5 Mar............. r63.3 r211.6 67.7 '309.3 '377.0 '329.3 '62.7 209.5 152.4 '54.7 67.0 '311.5 '378.5 '331.2 6.3 Apr.p.......... 63.9 212.8 75.3 311.3 386.6 331.2 63.5 214.7 155.9 56.5 72.4 314.2 386.5 333.6 6.0 Week ending— 1974—Apr. 3.... 63.4 212.7 71.5 309.8 381.2 62.8 212.7 155.1 55.3 69.5 312.9 382.4 7.1 10.... 64.1 212.2 73.9 310.7 384.6 64.1 215.0 156.2 56.5 71.5 313.6 385.1 4.6 17*>.. . 64.0 214.7 74.8 311.2 386.1 63.9 219.2 159.0 57.8 71.8 314.3 386.0 4.5 24p... 63.8 212.6 76.9 311.6 388.5 63.1 214.0 155.3 56.4 73.6 314.3 387.9 5.9 May 1 p. . . 63.9 211.5 77.8 312.1 389.9 63.1 210.6 153.1 55.2 74.1 314.9 389.0 9.3 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

MAY 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 Non­ 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—Dfec___ 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—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 6.2 453.0 283.1 163.4 6.5 454.3 460.5 Feb...... 35.11 33.92 34.92 32.79 447.1 286.1 157.9 3.0 447.1 285.7 156.3 5.1 454.8 454.8 Mar.... 34.95 r33.63 *■34.81 33.12 r450.4 287.9 *•158.8 3.7 *•450.4 *•288.6 *■156.9 4.9 *•459.1 *•459.1 Apr.* .. 35.93 34.19 35.63 33.69 461.7 297.1 160.0 4.6 462.6 296.2 161.6 4.8 471.3 472.2 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. ments! Total l loans Plus Treas­ Other4 ments i Total i 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.... 401.7 279.1 283.6’ 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—Apr. 25___ 589.6 411.1 414.7 143.9 146.2 61.0 117.5 587.3 408.3 412.0 144.4 146.7 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___ 608.8 427.5 431.5 151.2 153.7 59.8 121.5 607.4 429.3 433.3 151.6 154.1 56.5 121.7 Aug. 29___ 617.4 435.9 440.6 153.4 156.3 57.9 123.6 613.4 435.2 439.9 152.0 154.9 54.9 123.3 Sept. 26___ 620.2 439.1 443.7 153.7 156.6 56.4 J24.7 619.9 440.1 444.7 153.8 156.7 55.1 124.8 Oct. 31___ 624.2 441.1 445.7 153.6 156.5 55.1 128.0 624.0 440.9 445.6 152.9 155.8 56.0 127.0 Nov. 28___ 628.4 445.5 449.8 155.0 157.7 55.0 127.9 628.2 443.9 448.3 154.1 156.8 57.8 126.5 Dec. 31___ 630.3 447.3 451.6 155.8 158.4 52.8 130.2 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Jan. 30*.. . 638.0 452.3 456.7 157.8 160.4 54.4 131.3 637.6 448.3 452.7 156.1 158.7 58.7 130.6 Feb. 27*. . . 645.7 457.1 462.1 158.9 161.6 56.2 132.4 640.4 451.5 456.4 157.3 160.0 57.5 131.5 Mar. 27*. . . 654.9 466.3 471.2 164.4 167.2 56.2 132.4 651.4 461.1 466.0 164.2 167.0 57.3 133.0 Apr. 24*. . . 663.2 473.7 479.1 168.9 172.0 56.7 132.8 660.5 470.4 475.8 169.6 172.7 56.1 134.0 1 Adjusted to exclude domestic commercial interbank loans. See also net of valuation reserves as was done previously. For a description of the note 3. revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in above table 2 Loans sold are those sold outright by commercial banks to own sub­ have been revised to include valuation reserves. sidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1972, commercial and industrial loans were re­ Note.—Total loans and investments: For monthly data, Jan. 1959duced by about $400 million as a result of loan reclassifications at one June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, large bank. Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current 4 Beginning June 30, 1971, Farmers Home Administration insured notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaling approximately $700 million are included in “Other securities” the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: rather than in “Loans.” For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. 5 Beginning June 30, 1969, data revised to include all bank-premises A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for subsidiaries and other significant majority-owned domestic subsidiaries; last Wednesday of month except for June 30 and Dec. 31; data are partly earlier data include commercial banks only. Also, loans and investments or wholly estimated except when June 30 and Dec. 31 are call dates. are now reported gross, without valuation reserves deducted, rather than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS o MAY 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 Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets 3 bilities row­ ac­ of insurance Total Loans and Total 3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Time 5 ury 2 counts4 U.S. Govt. Other Last-Wednesday-of-month series6 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21, 7,225 26.551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947_Dec. 31 7. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 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 13,472 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, 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 4,880 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.. 634,730 4561620 56,450 660 95,880 762,410 619,200 28,710 5,830 6,750 228,470 349,440 52,610 54,920 14,069 Aug. 29.. 641.140 462,910 54,910 320 92,010 766,300 619,520 26,500 6,620 3,460 224,770 358,170 53,220 55,350 14,083 Sept. 26.. 646,710 466,840 55,080 790100,030 779,730 630,360 27,720 7,190 8,210 228,420 358,820 56,280 55,620 14,102 Oct. 31.. 654,390 471,340 56,010 040111,720 800,769 646,030 32,830 6,820 5,680 241,130 359.570 60,620 56,510 14,134 Nov. 28. . 659,280 475,010 57,770 500104,140 797,180 638,740 30,130 7,010 4,350 238,540 358,710 62,870 56,730 14,163 Dec. 31.. 683,799 494,947 58,277 574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Jan. 30*. 673,520 484,240 58,730130,550103.070 810,500 651,410 31,510 6,620 9,500 233,310 370,470 65,770 58,270 14,180 Feb. 27*. 679,130 490,180 57,500131,450102,230 816,200 650,970 31,320 6,200 6,620 232,930 373,900 67,970 58,560 14,202 Mar. 27*. 687.670 497,430 57,260132,980104.070 827,600 658,490 31,590 6,490 6,070 235,360 378,980 69,740 59,050 14.236 Apr. 24*. 694,680 504,590 56,060134,030101,930 833,510 666,040 30,870 7,290 5,850 235,530 386,500 67,440 59,590 14.236 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 1960—Dec. 31.. 165,619 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 5,767 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 44,214J 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 46,529j 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 '5,707 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 '5,713 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 '5,718 Oct. 31 '. 504,120 371.866 39,375 92,879 96,251 628,710 499,110 31.142 6,112 4,601 185,324 271,930 56,772 43,618 5,723 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 '5,736 Dec. 31.. 528,124 391,032 41,494 95,598100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974—Jan. 30'. 518,541 381,344 41,699 95,498 88,960 635,219 501,260 30,003 5,690 7,621 178,457 279,489 61,585 44,829 5,744 Feb. 27r. 522,816 385,879 40,922 96,015 87,753 639,172 500,113 29,753 5,273 5,084 178,731 281,272 63,865 45,054 5,747 Mar. 27 r. 529,961 392,461 40,537 96,963 89,568 649,114 506,641 30,083 5,558 4,817 180,862 285,321 65,428 45,491 5.754 Apr. 24*. 535,946 399,125 39,274 97,547 87,157 653,452 512,860 29,405 6,364 4,745 179,995 292,351 62,981 45,891 5.754 Call date series 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 I960—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. 318.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1971—Dec. 31... 514,097 345,386 64,691104,020 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—June 30... 630,379 452,587 57,532120,261101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 Oct. 17... 647,971 468,000 179,971 101,205 780,196 633,180 28,443 6,571 5,821 234,549 357,798 55,906 56,727 13,923 Dec. 31... 678,113 490,527 57,9611129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 National member: 1941—Dec. 31... 27,571 11,725 12,039i 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. 318.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 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—June 30... 369,856 270,188 31,651 68,018 61,336 449,772 364,129 16,640 2,874 6,181 137,116 201,318 33,804 31,867 4,629 Oct. 17... 377,246 277,015 100,231 63,573 460,164 368,351 15,797 3,404 3,369 136,163 209,619 38,819 32,516 4,642 Dec. 31... 398,236 293,555 30,962| 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 4,659 For notes see p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ 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— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Loa l ns T U re .S as . ­ Ot 2 her ca a a p n c i d ­ ta l Total3 m D a e n ­ d Time Demand Tim 5 e ings ba o n f ks ury counts 4 U.S. Govt. Other 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. 318. 94,760 66,963 11,196 16,600 25,472 125,460101,512 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 26,998 135,517111,777 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 29,176 150,697123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—June 30.. 121,052 91,095 9,429 20,527 26,891 155,017123,016 12,671 2,005 1,986 45,322 61,032 12,725 11,231 1.076 Oct. 17.. 125,715 95,056 30,659 25,491 158,250123,123 11,505 2,604 1,146 44.735 63,132 15,352 11,432 1,078 Dec. 31.. 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1.076 Nonmember: 1941—Dec. 31... 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 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. 318.. 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. 311.0..8,527 67,188 17,058 24,282 12,092 123,970109,841 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—June 30... 139,471 91,304 16,452 31,716 13,490 157,461 138,171 1,248 567 2,241 52,735 81,379 1,884 12,143 8,137 Oct. 17... 145,010 95,929 49,081 12,141 161,783 141,706 1,141 563 1,305 53,650 85,047 1,735 12,778 8,203 Dec. 31... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 Noninsured nonmember: 1941—Dec. 31... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1947—Dec. 317.. 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. 318.. 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 Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 Total nonmember: 1941—Dec. 31... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 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 7,26i 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. 318.. 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 13,643 129,100112,764 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 Dec. 31... 155,830 104,070 16,783 34,976 18,177 179,480155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 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. Beginning Dec. 31, 1973, member banks exclude and noninsured non- 6 From the last-Wednesday-of-the-month series, figures for call dates member banks include a noninsured trust company which is a member of are shown for June and December as soon as they became available. the Federal Reserve System. 7 Beginning with Dec. 31, 1947, the series was revised; for description, Comparability of figures for classes of banks is affected somewhat by see note 4, p. 587, May 1964 Bulletin. changes in F.R. membership, deposit insurance status, and by mergers 8 Figure takes into account the following changes, which became etc. effective June 30, 1969: (1) inclusion of consolidated reports (including Figures are partly estimated except on call dates. figures for all bank-premises subsidiaries and other significant majority- For revisions in series before June 30, 1947, see July 1947 Bulletin, owned domestic subsidiaries) and (2) reporting of figures for total loans pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS o MAY 1974 ASSETS BY CLASS OF BANK, DECEMBER 31, 1973 (Amounts in millions of dollars) Member bank s i All Insured Account commercialcommercial Large banks5 Non­ banks banks member Total All other banks1 New York City of Other City Chicago large Cash bank balances, items in process........................... 118,276 116,266 100,098 25,170 3,848 38,465 32,615 18,178 Currency and coin...................................................... 10,706 10,682 8,142 652 174 2,679 4,636 2,564 Reserves with Federal Reserve banks....................... 27,816 27,816 27,816 6,625 1,131 10,251 9,809 Demand balances with banks in U.S........................ 31,298 30,026 18,602 5,061 252 4,097 9,191 12,696 Other balances with banks in U.S............................. 2,786 2,515 1,839 217 167 871 584 946 Balances with banks in foreign countries................. 1,029 685 597 122 79 331 66 432 Cash items in process of collection........................... 44,641 44,541 43,103 12,493 2,045 20,236 8,328 1,539 Total securities held—Book value................................. 188,852 187,587 137,092 17,072 5,546 45,878 68,597 51,759 U.S. Treasury............................................................... 58,277 57,961 41,494 5,516 1,684 13,466 20,828 16,783 Other U.S. Government agencies.............................. 29,252 28,927 19,144 2,045 668 5,461 10,969 10,108 States and political subdivisions................................ 95,145 94,750 72,049 8,736 2,989 25,500 34,824 23,096 All other securities...................................................... 6,177 5,948 4,404 774 204 1,450 1,976 1,773 Trading-account securities.......................................... 8,657 8,653 8,570 3,653 646 3,921 349 87 U.S. Treasury.......................................................... 3,136 3,136 3,124 1,365 365 1,311 83 12 Other U.S. Government agencies.......................... 1,432 1,432 1,416 597 63 696 59 17 States and political subdivisions............................ 3,650 3,650 3,598 1,563 206 1,635 193 52 All other................................................................... 439 436 432 128 12 279 14 7 Bank investment portfolios........................................ 180,194 178,933 128,522 13,418 4,900 41,956 68,248 51,672 U.S. Treasury.......................................................... 55,142 54,826 38,370 4,151 1,320 12,155 20,745 16,771 Other U.S. Government agencies.......................... 27,820 27,495 17,729 1,448 605 4,765 10,910 10,091 States and political subdivisions............................ 91,495 91,100 68,451 7,173 2,782 23,865 34,631 23,044 All other................................................................... 5,738 5,512 3,972 647 192 1,171 1,962 1,766 Federal funds sold and securities resale agreements... 35,311 34,305 26,126 790 1,118 13,372 10,846 9,185 Commercial banks...................................................... 32,122 31,158 23,080 715 701 11,484 10,181 9,042 Brokers and dealers.................................................... 2,647 2,647 2,627 61 351 1,662 553 20 Others........................................................................... 541 500 419 14 66 226 112 123 Other loans...................................................................... 460,143 456,222 365,257 69,781 20,531 138,524 136,422 94,885 Real estate loans........................................................ 118,032 117,810 87,006 7,227 1,231 32,883 45,665 31,026 Secured by farmland............................................... 5,394 5,373 2,419 6 2 295 2,116 2,976 Secured by residential............................................. 74,188 74,016 56,177 3,862 849 22,463 29,004 18,010 1- to 4-family residences.......................................... 67,286 67,117 50,379 2,667 782 19,671 27,259 16,907 FHA insured.;................................................ 6,648 6,612 5,862 272 93 3,253 2,244 786 VA guaranteed................................................ 3,260 3,217 2,813 204 20 1,452 1,138 447 Other................................................................. 57,379 57,288 41,705 2,191 669 14,966 23,877 15,674 Multifamily.......................................................... 6,901 6,899 5,798 1,194 67 2,792 1,745 1,103 FHA insured.................................................... 1,281 1,280 1,174 189 37 618 331 106 Other................................................................ 5,620 5,619 4,623 1,006 30 2,174 1,414 996 Secured by other properties................................... 38,450 38,421 28,410 3,360 380 10,125 14,545 10,040 Loans to domestic and foreign banks....................... 10,200 9,141 8,751 4,043 680 3,478 550 1,449 Loans to other financial institutions......................... 30,515 30,401 29,019 10,343 3,929 12,179 2,568 1,496 Loans to securities brokers and dealers.................... 7,674 7,625 7,498 4,883 1,054 1,343 217 176 Other loans to purch./carry securities....................... 4,300 4,280 3,649 737 319 1,612 981 651 Loans to farmers......................................................... 17,327 17,146 10,229 137 167 2,476 7,449 7,098 Commercial and industrial loans............................... 159,417 157,622 134,390 33,590 10,875 53,692 36,233 25,027 Loans to individuals................................................... 99,927 99,577 73,104 5,408 1,326 26,178 40,192 26,824 Instalment loans...................................................... 76,204 75,897 54,992 2,990 658 19,597 31,747 21,211 Passenger automobiles........................................ 33,462 33,274 22,900 496 147 7,364 14,892 10,562 Residential-repair/modernize............................. 4,834 4,827 3,596 199 38 1,463 1,897 1,238 Credit cards and related plans........................... 9,092 9,092 8,117 1,040 264 4,532 2,281 975 Charge-account credit cards........................... 6,838 6,838 6.191 773 238 3,467 1,713 647 Check and revolving credit plans................... 2,254 2,254 i;926 267 25 1,065 568 328 Other retail consumer goods.............................. 14,411 14,390 10,236 137 88 3,453 6,558 4,174 Mobile homes.................................................. 8,370 8,369 6,073 65 60 2,155 3,794 2,298 Other................................................................. 6,040 6,021 4,163 73 28 1,299 2,764 1,877 Other instalment loans........................................ 14,405 14,314 10,143 1,117 122 2,785 6,119 4,262 Single-payment loans to individuals...................... 23,724 23,680 18,111 2,418 668 6,581 8,444 5,612 All other loans............................................................ 12,751 12,620 11,611 3,412 950 4,684 2,565 1,140 Total loans and securities............................................... 684,305 678,113 528,476 87,643 27,195 197,774 215,864 155,830 Fixed assets—buildings, furniture, real estate.............. 13,232 13,160 10,188 1,034 404 4,155 4,595 3,044 investments in subsidiaries not consolidated................ 1,412 1,403 1,388 644 108 584 51 24 Customer acceptances outstanding............................... 4,420 4,355 4,121 2,264 289 1,345 224 299 Other assets..................................................................... 14,085 13,784 11,979 3,229 698 5,100 2,952 2,106 Total assets..................................................................... 835,730 827,081 656,250 119,984 32,542 j 247,422 256,302 179,480 1 Member banks exclude and nonmember banks include a noninsured Note.—Data include consolidated reports, including figures for all trust company that is a member of the Federal Reserve System, and bank-premises subsidiaries and other significant majority-owned domestic member banks exclude two national banks outside the continental United subsidiaries. Figures for total loans and for individual categories of States. securities are reported on a gross basis—that is, before deduction of 2 See table (and notes), Deposits Accumulated for Payment of Personal valuation reserves. Loans, p. 26. Back data in lesser detail were shown in previous Bulletins. 3 Demand deposits adjusted are demand deposits other than domestic Details may not add to totals because of rounding. commercial interbank and U.S. Govt., less cash items reported as in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1973 (Amounts in millions of dollars) Member banks1 All Insured Non­ Account commercia! commercia1 Large banks member banks banks banks1 Total All other New York City of Other City Chicago large Demand deposits............................................................. 310,071 307,634 245,620 52,661 10,144 89,011 93,803 64,451 Mutual savings banks................................................ 1,280 1,156 1,067 513 1 196 357 212 Other individuals, partnerships, and corporations .. 231,729 230,883 179,044 29,305 7,431 66,567 75,741 52,686 U.S. Government........................................................ 9,865 9,856 8,273 1,689 434 3,603 2,547 1,592 States and political subdivisions................................ 18,663 18,508 13,246 658 244 3,806 8,538 5,417 Foreign governments, central banks, etc................... 1,625 1,356 1,333 1,036 92 201 4 293 Commercial banks in U.S........................................... 29,975 29,815 28,713 12,430 1,552 10,739 3,992 1,262 Banks in foreign countries.......................................... 5,584 5,278 5,001 3,803 142 942 114 583 Certified and officers’ checks, etc............................... 11,349 10,784 8,942 3,226 248 2,958 2,509 2,407 Time and savings deposits.............................................. 372,282 369,723 281,569 37,576 14,090 101,702 128,201 90,714 127,183 126,925 93,721 6,134 2,372 33,045 52,169 33,462 507 503 352 58 294 155 Mutual savings banks................................................. 652 640 633 388 97 118 30 19 Other individuals, partnerships, and corporations .. 183,624 182,639 139,755 21,135 9,027 50,004 59,590 43,869 U.S. Government........................................................ 439 439 298 40 2 103 153 141 States and political subdivisions................................. 44,385 44,306 33,259 2,284 1,173 14,201 15,601 11,126 Foreign governments, central banks, etc................... 9,371 8,482 8,341 4,364 939 2,996 41 1,031 Commercial banks in U.S........................................... 5,858 5,622 5,077 3,185 457 1,118 318 780 Banks in foreign countries......................................... 263 167 133 46 23 59 5 130 Total deposits.................................................................. 682,353 677,358 527,188 90,237 24,235 190,713 222,004 155,165 Federal funds purchased and securities repurchased agreements................................................................... 51,167 50,410 48,731 10,713 4,573 27,110 6,335 2,436 Other liabilities for borrowed money........................... 7,827 7,121 6,879 2,773 245 3,067 794 947 Mortgage indebtedness................................................... 762 759 587 80 80 260 167 174 Bank acceptances outstanding....................................... 4,553 4,484 4,251 2,364 305 1,357 225 302 Other liabilities................................................................ 23,128 21,549 17,451 3,797 691 6,812 6,151 5,677 Total liabilities................................................................ 769,790 761,682 605,088 109,964 30,129 229,320 235,675 164,702 Minority interest in consolidated subdivisions............. 6 5 3 2 1 3 Total reserves on loans/securities................................. 7,806 7,790 6,417 i,4ii 425 2,372 2,208 1,389 Reserves for bad debts (IRS)..................................... 7,532 7,518 6,243 1,412 417 2,313 2,101 1,289 Other reserves on loans.............................................. 99 98 54 8 45 45 Reserves on securities................................................. 176 174 120 7 51 62 55 Total capital accounts.................................................... 58,128 57,603 44,741 8,607 1,989 15,728 18,418 13,386 Capital notes and debentures..................................... 4,135 4,081 3,333 729 57 1,617 930 802 Equity capital............................................................... 53,993 53,522 41,408 7,878 1,931 14,111 17,488 12,585 Preferred stock........................................................ 71 66 47 19 15 13 24 Common stock........................................................ 13,882 13,784 10,518 2,154 ..........562' 3,437 4,364 3,364 Surplus...................................................................... 23,640 23,511 18,297 3,433 1,120 6,628 7,117 5,342 Undivided profits.................................................... 15,498 15,314 11,915 2,268 201 3,779 5,666 3,584 Other capital reserves.............................................. 902 848 631 4 48 251 328 271 Total liabilities, reserves, minority interest, capital account......................................................................... 835,730 827,081 656,250 119,984 32,543 247,422 256,302 179,480 Demand deposits adjusted 3........................................... 225,589 223,422 165,530 26,049 6,114 54,433 78,935 60,059 Average total deposits (past 15 days)............................ 662,118 657,209 510,255 87,627 22,787 183,133 216,709 151,863 Average total loans (past 15 days)................................. 466,822 462,549 365,939 69,294 20,240 139,096 137,309 100,882 Selected ratios: Percentage of total assets Cash and balances with other banks......................... 14.2 14.1 15.3 21.0 11.8 15.5 12.7 10.1 Total securities held.................................................... 22.6 22.7 20.9 14.2 17.0 18.5 26.8 28.8 Trading account securities....................................... 1.0 1.0 1.3 3.0 2.0 1.6 . 1 U.S. Treasury...................................................... .4 .4 .5 1.1 1.1 .5 States and political subdivisions......................... .4 .4 .5 1.3 .6 .7 . 1 All other trading account securities .2 .2 . 3 .6 .2 .4 Bank investment portfolios..................................... 21.6 21.6 19.6 11.2 15.1 17.0 26.6 28.8 U.S. Treasury....................................................... 6.6 6.6 5.8 3.5 4.1 4.9 8.1 9.3 States and political subdivisions......................... 10.9 11.0 10.4 6.0 8.6 9.6 13.5 12.8 All other portfolio securities............................... 4.0 4.0 3.3 1.7 2.5 2.4 5.0 6.6 Other loans and Federal funds sold........................... 59.3 59.3 59.6 58.8 66.5 61.4 57.5 58.0 All other assets............................................................ 4.0 4.0 4.2 6.0 4.6 4.5 3.1 3.0 Total loans and securities........................................... 81.9 82.0 80.5 73.0 83.6 79.9 84.2 86.8 Reserves for loans and securities............................... .9 .9 1.0 1.2 1.3 1.0 .9 .8 Equity capital—Total.................................................. 6.5 6.5 6.3 6.6 5.9 5.7 6.8 7.0 Total capital accounts................................................ 7.0 7.0 6.8 7.2 6.1 6.4 7.2 7.5 Number of banks............................................................ 14,171 13,964 5,735 13 9 156 5,557 8,436 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ MAY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying 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 Apr. 4................ 334,539 12,912 11,658 849 214 191 100,294 3,094 1,148 6,584 242 2,919 7,892 14,536 11................ 334,996 12,746 11,317 967 261 201 100,772 3,108 856 6,584 210 2,925 7,842 14,535 18................ 334,771 11,851 10,857 711 143 140 101,887 3,124 570 6,177 211 2,932 7,943 14,773 25................ 337,662 14,641 12,732 1,494 138 277 101,854 3,119 497 6,229 212 2,964 7,911 14,656 1974 Mar. 6.............. 375,500 16,779 15,067 1,123 342 247 111,761 3,784 1,061 5,136 147 2,760 8,290 18,137 13................ 374,820 15,571 13.994 1,050 311 216 112,740 3,801 595 4,898 144 2,784 8,394 18,363 20................ 375,547 14,990 13,466 993 303 228 114,777 3,792 579 4,747 140 2,774 8,452 18,404 27................ 378,101 15,424 13,600 1,210 313 301 116,010 3,786 660 4,642 140 2,777 8,662 18,587 Apr. 3*.............. 384,374 16,665 15,149 937 355 224 118,545 3,803 729 4,557 138 2,778 9,085 19,090 10 *.............. 385,142 16,432 14.995 891 237 309 119,086 3,793 858 4,731 137 2,759 8,948 19,267 17*............ 386,541 15,615 14,137 867 271 340 120,699 3,791 771 4,756 133 2,793 9,404 19,651 24*.............. 382,661 14,945 13,504 857 207 377 120,106 3,807 482 4,546 132 2,220 9,028 19,645 New York City 1973 Apr. 4................ 70,913 1,438 1,324 45 56,683 28,846 53 1,004 3,848 43 650 2,331 4,512 11................ 69,783 686 606 45 56,037 28,633 52 708 3,930 44 652 2,236 4,498 18................ 69,641 1,164 997 146 55,842 28,729 55 463 3,660 46 652 2,276 4,508 25................ 71,119 2,950 2,863 67 55,734 28,650 54 415 3,741 47 654 2,319 4,530 1974 Mar. 6............. 81,270 1,076 986 64,179 31,982 155 965 3,157 39 611 2,819 6,203 13................ 80,347 1,053 1,031 63,720 32,486 153 527 2,911 39 607 2,948 6,229 20................ 80,859 1,079 1,070 64,511 33,021 151 472 2,870 38 604 2,889 6,281 27................ 81,742 1,424 1,356 10 65,363 33,564 146 564 2,726 37 606 3.024 6,306 Apr. 3*.............. 84,328 2,382 2,377 66,712 34,300 149 630 2,567 35 609 3,121 6,601 10*.............. 83,371 1,330 1,287 66,688 34,235 151 765 2,709 35 614 3,083 6,684 17*.............. 84,399 1,746 1,683 67,698 34,659 150 656 2,907 35 605 3,327 6,788 24*............... 82,735 2,117 2,076 66,466 34,295 156 403 2,667 35 599 3.024 6,815 Outside New York City 1973 Apr. 4................ 263,626 11,474 10,334 804 214 122 184,770 71,448 3,041 144 2,736 199 2,269 5,561 10,024 11................ 265,213 12,060 10,711 922 259 168 185,776 72,139 3,056 148 2,654 166 2,273 5,606 10,037 18................ 265,130 10,687 9,860 565 143 119 187,523 73,158 3,069 107 2,517 165 2,280 5,667 10,265 25.................. 266,543 11,691 9,869 1,427 138 257 187,636 73,204 3,065 82 2,488 165 2,310 5,592 10,126 1974 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.................. 296,359 14,000 12,244 1,200 305 251 210,482 82,446 3,640 96 1,916 103 2,171 5,638 12,281 Apr. 3*................ 300,046 14,283 12,772 937 355 219 213,767 84,245 3,654 99 1,990 103 2,169 5,964 12,489 10*................ 301,771 15,102 13,708 885 237 272 214,420 84,851 3,642 93 2,022 102 2,145 5,865 12,583 17*................ 302,142 13,869 12,454 861 249 305 216,360 86,040 3,641 115 1,849 98 2,188 6,077 12,863 24*................ 299,926 12,828 11,428 852 207 341 215,870 85,811 3,651 79 1,879 97 1,621 6,004 12,830 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 a WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts. 2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1973 47,522 3,269 4,796 28,808 1.236 19,113 25,958 5,524 3,851 14,606 1,977 .........................Apr. 4 47,774 3,191 4,894 28,901 1,243 18,978 25,422 5,187 3,810 14,381 2,044 ...................................11 48,035 3,303 4,923 29,051 1,254 19,182 24,838 4,720 3,758 14,307 2,053 ...................................18 48,102 3,293 4,897 29,170 1.237 19,229 24,741 4,780 3,739 14,192 2,030 ...................................25 1974 55,815 3,696 4,975 33,167 1,468 20,190 25,989 5,440 4,338 11,993 4,218 ........................Mar. 6 55,948 3,618 4,958 33,152 1,466 19,782 25,717 5,277 4,346 11,920 4,174 ...................................13 56,150 3,784 5,496 33,120 1,578 19,594 24,856 4,601 4,387 11,772 4,096 ...................................20 56,196 3,789 5,863 33,188 1,630 19,915 24,819 4,648 4,278 11,770 4,123 ...................................27 56,147 3,951 6,234 33,201 1,697 20,524 25,326 5,165 4,273 11,912 3,976 .........................Apr. 3* 56,242 3,845 6,346 33,249 1,652 20,195 25,694 5,195 4,306 12,192 4,001 ...................................10* 56,464 3,800 6,213 33,310 1,666 20,607 24,783 4,438 4,222 12,094 4,029 ...................................17* 56,713 3,927 6,355 33,402 1,620 20,353 23,420 3,202 4,192 12,031 3,995 ...................................24* New York City 1973 5,140 1,318 2,099 2,161 717 3,961 4,646 1,838 571 2,148 89 .........................Apr. 4 5,169 1,293 2,131 2,169 708 3,814 4,481 1,700 524 2,048 209 ...................................11 5,232 1,325 2,165 2,176 707 3,848 4,191 1,523 494 1,980 194 ...................................18 5,225 1,309 2,127 2,181 707 3,775 3,947 1,390 528 1,860 169 ...................................25 1974 6,412 1,349 2,597 2.470 740 4,680 5,297 1,641 535 1,819 1,302 .........................Mar. 6 6,406 1,344 2,564 2.470 729 4,307 5,027 1,377 587 1,754 1,309 ...................................13 6,461 1,270 2,874 2,469 788 4,323 4,791 1,239 561 1,701 1,290 ...................................20 6,478 1,370 2,922 2,472 822 4,326 4,819 1,284 539 1,690 1,306 ...................................27 6,420 1,396 3,018 2,467 783 4,616 1,643 531 1,783 1,268 ........................Apr. 3* 6,419 1,374 2,950 2,480 784 4,405 1,633 557 1,778 1.265 ...................................10* 6,489 1,357 2,796 2,501 790 4,638 1,086 573 1,738 1.265 ...................................IJp 6,504 1,405 2,845 2,513 781 4,424 4,004 485 559 1,704 1,256 ...................................24* Outside New York City 1973 42,382 1,951 2,697 26,647 519 15,152 21,312 3,686 3,280 12,458 1,! .......................Apr. 4 42,605 1,898 2,763 26,732 535 15,164 20,941 3,487 3,286 12,333 1,835 .................................11 42,803 1,978 2,758 26,875 547 15,334 20,647 3,197 3,264 12,327 1,859 .................................18 42,877 1,984 2,770 26,989 530 15,454 20,794 3,390 3,211 12,332 1,861 .................................25 1974 49,403 2,347 2,378 30,697 728 15,510 20,692 3,799 3,803 10,174 2,916 .......................Mar. 6 49,542 2,274 2,394 30,682 737 15,475 20,690 3,900 3,759 10,166 2,865 .................................13 49,689 2,514 2,622 20,651 790 15,271 20,065 3,362 3,826 10,071 2,806 .................................20 49,718 2,419 2,941 30,716 808 15,589 20,000 3,364 3,739 10,080 2,817 .................................27 49,727 2,555 3,216 30,734 914 15,908 20,101 3,522 3,742 10,129 2,708 .......................Apr. 3* 49,823 2,471 3,396 30,769 868 15,790 20,461 3,562 3,749 10,414 2,736 .................................10* 49,975 2,443 3,417 30,809 876 15,969 20,121 3,352 3,649 10,356 2,764 .................................17* 50,209 2,522 3,510 30,889 839 15,929 19,416 2,717 3,633 10,327 2,739 .................................24* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ MAY 1974 ASSETS AND LIABILITIES OF URGE 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 AU of All rants 3 other partici­ other* pation4 Large banks— Total 1973 Apr. 4.............................. 54,216 7,344 38,378 1,686 * 28,904 19,428 3,575 9,653 1,256 19,324 416,679 11.............................. 55,015 7,886 38,459 1,813 1 27,969 18,984 3,873 8,910 1.235 19,209 415,176 18.............................. 54,717 7,587 38,308 1,831 1 28,575 24,431 3,991 9,302 1.236 19,088 421,394 25.............................. 54,910 7,667 38,357 1,802 \ 28,087 19,239 4,152 9,399 1.237 19,406 419,182 1974 Mar. 6............................. 62,345 7,530 41,155 2,433 1 33,386 21,939 3,966 11,843 1,446 22,018 470,098 13.............................. 62,889 7,823 41,149 2,532 5 32,843 23,145 4,341 11,417 1,449 22,275 470,290 20.............................. 62,314 7,600 40,927 2,541 > 32,900 22,992 4,300 12,389 1,465 22,362 471,955 27............................. 62,013 7,401 40,968 2,463 I 32,860 21,159 4,422 12,384 1,464 22,656 473,046 Apr. 3 *........................... 61,904 7,356 41,007 2.443 \ 33,258 20,994 4,037 12,816 1,477 23,196 480,152 10*........................... 61,908 7,510 40,881 2,438 > 32,790 21,499 4,221 12,699 1,480 22,911 480,742 17*........................... 62,085 7,657 41.026 2.443 > 35,297 22,205 4,492 12,838 1,495 23,165 486,033 24*........................... 61,960 7,545 41.026 2,417 I 29,584 21,922 4,543 11,855 1,501 23,230 475,296 New York City 1973 Apr. 4............................. 8,146 1,344 5,350 478 ^ 9,003 4,878 446 3,768 618 6,364 95,990 11............................. 8,579 1,727 5,288 524 > 8,961 5,093 475 3,355 592 6,232 94,491 18............................. 8,444 1,586 5,231 540 ' 8,515 7,370 460 3,777 591 6,162 96,516 25............................. 8,488 1,598 5,258 536 1 9,342 4,851 475 4,012 590 6,401 96,790 1974 Mar. 6............................. 10,718 2,342 5,740 567 » 11,999 6,720 476 5,666 675 6,397 113,203 13............................. 10,547 2,296 5,566 567 ! 12,289 6,232 499 5,631 678 6,704 112,380 20............................. 10,478 2,254 5,556 576 : 12,501 6,306 484 6,394 680 6,922 114,146 27............................. 10,136 2,090 5,423 562 13,583 4,859 500 6,313 679 6,987 114,663 Apr. 3*........................... 10,009 1,944 5,440 567 11,436 5,592 507 5,833 691 7,182 115,569 10*........................... 10,120 2,081 5,448 564 12,250 5,401 497 6,469 691 7,139 115,818 17*........................... 10,293 2,200 5,524 564 11,518 6,223 495 5,855 692 7,205 116,387 24*............................. 10,148 2,108 5,476 548 10,512 6,272 509 5,688 696 7,188 113,600 Outside New York City 1973 Apr. 4............................... 46,070 6,000 33,028 1,208 5 19,901 14,550 3,129 5,885 638 12,960 320,689 11............................... 46,436 6,159 33,171 1,289 5;817 19,008 13,891 3,398 5,555 643 12,977 320,685 18............................... 46,273 6,001 33,077 1,291 5,904 20,060 17,061 3,531 5,525 645 12,926 324,878 25............................... 46,422 6,069 33,099 1,266 5,988 18,745 14,388 3,677 5,387 647 13,005 322,392 1974 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............................... 51,877 5,311 35,545 1,901 9,120 19,277 16,300 3,922 6,071 785 15,669 358,383 Apr. 3*............................. 51,895 5,412 35,567 1,876 9,040 21,822 15,402 3,530 6.983 786 16,014 364,583 10*............................. 51,788 5,429 35,433 1,874 9,052 20,540 16,098 3,724 6,230 789 15,772 364,924 17*............................. 51,792 5,457 35,502 1,879 8,954 23,779 15,982 3,997 6.983 803 15,960 369,646 24*............................. 51,812 5,437 35,550 1,869 8,956 19,072 15,650 4,034 6,167 805 16,042 361,696 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 a 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 States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutua 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 153,559 109,278 6,455 6,064 20,925 957 759 3,019 6,102 174,788 58,539' 82,957 21,791 3,536i 7,315 .Apr. 4 148,971 110,114 6,727 2,144 18,933 879 817 3,103 6,254 176,005 58,377 83,303 22,453 3,849 7,351 ..........11 152,923 110,686 6,373 6,389 18,729 795 918 3,097 5,936 175,340 58,022 82,652 22,904 3,709 7,369 ..........18 151,302 107,714 6,215 7,399 19,241 726 954 3,138 5,915 176,056 57,962 83,150 23,132 3,680 7,462 ..........25 1974 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 ..........13 158,290 110,478 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 ..........20 158,613 111,153 6,521 3,440 22,976 610 1,221 4,678 8,014 195,889 58,249 101,027 23,497 4,883 7,567 , ..........27 163,148 113,210 6.064 3.714 24,732 838 1,327 4,701 8,562 197,889 58,485 102,519 23,581 5,110 7,480 , .Apr. 3* 161,816 113,128 6.064 1.714 24,580 779 2,203 4,670 8,678 200,143 58,395 104,081 23,990 5,326 7,651 . ..........10* 167,445 117,101 6,076 4,796 24,570 739 1,671 4,422 8,070 200,937 58,036 103,907 24,736 5,486 8,105 . ..........17* 155,858 110,618 5,887 3,575 22,306 651 1,479 4,669 6,673 203,062 57,924105,649 24,996 5,661 8,152 . ..........24* New York City 1973 40,255 23,534 556 1,326 9,219 562 616 2,111 2,331 32,141 5,459 18,655 2,294 2,065 3,570 . . Apr. 4 38,078 23,398 588 329 7,773 487 676 2,198 2,629 32,289 5,431 18,598 2,259 2,304 3.599 . ..........11 39,415 23,342 482 1,735 8,066 424 772 2,168 2,426 31,362 5,389 18,061 2,019 2,187 3.600 . ..........18 40,339 23,185 289 1,671 9,075 378 800 2,211 2,730 31,530 5,372 18,199 2,034 2,141 3,679 . ..........25 1974 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 35,086 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 47,616 24,217 491 819 12,477 466 1,122 3,534 4,490 36,230 5,130 22,080 1,804 3,222 3,847 . • Apr. 3* 47,450 23,835 405 313 12,702 414 1,916 3,471 4,394 37,241 5,127 22,810 1,815 3,390 3,946 . .10* 47,709 24,380 313 1,188 12,469 367 1,456 3,262 4,274 37,421 5,090 22,698 1,724 3,475 4,269 . ,17* 44,855 23,980 305 635 11,572 329 1,233 3,415 3,386 37,797 5,076 22,901 1,726 3,581 4,345 . .24* Outside New York City 1973 113,304 85,744 5,899 4,738 11,706 395 143 908 3,771 142,647 53,080 64,302 19,497 1,471 3,745 . __Apr. 110,893 86,716 6,139 1,815 11,160 392 141 905 3,625 143,716 52,946 64,705 20,194 1,545 3,752 . 113,508 87,344 5,891 4,654 10,663 371 146 929 3,510 143,978 52,633 64,591 20,885 1,522 3,769 . 110,963 84,529 5,926 5,728 10,166 348 154 927 3,185 144,526 52,590 64,951 21,098 1,539 3,783 . 1974 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 . 13 111,577 86,503 5,655 3,240 11,126 303 208 1,131 3,411 159,092 52,826 78,633 21,645 1,739 3,755 . 20 110,531 86,021 5,875 2,745 10,976 299 217 1,182 3,216 160,337 53,123 79,574 21,598 1,773 27 115,532 88,993 5,573 2,895 12,255 372 205 1,167 4,072 161,659 53,355 80,439 21,777 1,888 3,633 . .Apr. 3 114,366 89,293 5,659 1,401 11,878 365 287 1,199 4,284 162,902 53,268 81,271 22,175 1,936 3,705 . 10* 119,736 92,721 5,763 3,608 12,101 372 215 1,160 3,796 163,516 52,946 81,209 23,012 2,011 17* 111,003 86,638 5,582 2,940 10,734 322 246 1,254 3,287 165,265 52,848 82,748 23,270 2,080 3,807 . 24* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ MAY 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 11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed io Total to to foreign justed IPC’s others bran­ ches Large banks— Total 1973 Apr. 4................... 34,415 716 2,299 16,273 4,379 64 30,186 239,438 319,612 97,666 55,405 36,404 19,001 1,011 11................... 35,459 907 2,468 16,713 4,398 64 30,191 240,051 320,488 99,925 56,337 36,844 19,493 1,209 18................... 36,375 2,722 2,742 16,742 4,401 64 30,085 241,056 320,611 99,230 55,363 36,272 19,091 1,193 25................... 36,006 1,052 2,907 17,267 4,406 64 30,122 241,986 321,637 96,575 55,935 36,760 19,175 1,123 1974 Mar. 6...................... 57,583 671 5,403 18,090 5.008 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 5.008 32,450 268,602 357,208 99,148 66,523 45,805 20,718 2,274 20................... 55,240 1,910 6,163 18,708 5,000 32,399 271,127 358,297 97,981 66,261 45,469 20,792 2,459 27................... 53,527 1,700 6,372 19,430 4,997 32,444 273,880 360,712 99,337 67,815 46,842 20,973 2,947 Apr. 3p.................... 54,544 823 6,317 19,601 4.994 32,762 278,044 365,274 101,444 69,479 48,191 21,288 2,717 IO®.................. 54,569 1,017 6,267 19,107 4.991 32,758 278,700 366,302 102,732 71,540 49,812 21,728 2,908 17*................. 53,303 939 6,078 19,605 4.995 32,658 281,736 368,604 102,782 71,753 49,612 22,141 3,020 24*................. 51,358 1,728 6,012 19,551 4.991 32,663 279,850 365,230 100,393 73,592 51,255 22,337 2,474 New York City 1973 Apr. 4................... 7,360 924 6,407 1,236 7,667 55,479 68,271 20,707 19,218 13,015 6,113 638 11................... 7,738 986 6,488 1,256 7,656 54,824 67,884 21,015 19,414 13,065 6,349 848 18................... 8,406 800 1,242 6,424 1,260 7.607 54,684 67,319 21,099 18,554 12,560 5,994 909 25................... 7,887 1,383 6,779 1,264 7.608 54,512 66,947 20,251 18,711 12,724 5,987 869 1974 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 Apr. .................... 11,785 240 2,821 6,970 1.370 8,537 65,321 80,555 22,884 21,933 15,093 6,840 1,829 IO?.................. 11,420 145 2,851 6,807 1.370 8,534 65,357 80,710 22,185 22,944 15,805 7,139 2,072 11*.................. 11,368 150 2,895 6,959 1.376 8,509 66,404 81,359 22,534 22,969 15,660 7,309 1,683 24p.................. 11,206 385 2,849 6,646 1.377 8,485 65,102 79,254 22,136 23,373 16,034 7,339 1,206 Outside New York City 1973 Apr. 4................... 27,055 716 1,375 9,866 3,143 22,519 183,959 251,341 76,959 36,187 23,299 12,888 373 11................... 27,721 907 1,482 10,225 3,142 22,535 185,227 252,604 78,910 36,923 23,779 13,144 361 18................... 27,969 1,922 1,500 10,318 3.141 22,478 186,372 253,292 78,131 36,809 23,712 13,097 284 25................... 28,119 1,052 1,524 10,488 3.142 22,514 187,474 254,690 76,324 37,224 24,036 13,188 254 1974 Mar. 6...................... 43,274 441 2,913 12,271 3,626 23,993 205,483 277,802 76,644 45,332 31,089 14,243 425 13................... 43,744 1,282 3,083 12,196 3,622 24,035 206,204 279,236 77,910 45,602 31,495 14,107 673 20................... 42,943 1,012 3,326 12,217 3.618 23,950 207,877 279,778 76,812 45,432 31,287 14,145 709 27................... 42,187 1,480 3,476 12,684 3,611 24,003 209,819 281,696 77,533 46,528 32,303 14,225 1,168 Apr. 3p.................... 42,759 583 3,496 12,631 3,624 24,225 212,723 284,719 78,560 47,546 33,098 14,448 888 10 p................. 43,149 872 3,416 12,300 3,621 24,224 213,343 285,592 80,547 48,596 34,007 14,589 836 17 p................. 41,935 789 3,183 12,646 3.619 24,149 215,332 287,245 80,248 48,784 33,952 14,832 1,337 24 p................. 40,152 1,343 3,163 12,905 3,614 24,178 214,748 285,976 78,257 50,219 35,221 14,998 1,268 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. i o 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

MAY 1974 d BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1974 1974 1974 1973 1973 Apr. Apr. Apr. Apr. Mar. 2nd 1st 24 17 10 3 27 Apr. Mar. Feb. I IV III half half Durable goods manufacturing: Primary metals................................. 1,914 1,920 1,939 1,924 1,893 21 95 -69 84 -247 18 -229 20 Machinery......................................... 8,149 8,390 8,196 8,024 7,740 409 888 128 1,069 136 479 615 1,453 Transportation equipment.............. 3,053 3,055 2,966 2,914 2,878 175 217 171 358 90 272 362 64 Other fabricated metal products... 2,705 2,724 2,680 2,616 2,600 105 244 12 267 15 56 71 503 Other durable goods........................ 4,326 4,325 4,271 4,193 4,052 274 316 115 349 -363 290 -73 872 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 4,326 4,368 4,325 4,363 4,281 45 299 28 124 340 393 733 -23 Textiles, apparel, and leather.......... 3,911 3,917 3,879 3,770 3,789 122 345 234 570 -440 235 -205 730 Petroleum refining........................... 1,208 1,223 1,225 1,369 1,215 -7 12 -74 -176 184 19 203 211 Chemicals and rubber..................... 2,998 3,102 2,975 2,893 2,771 227 272 54 255 -198 48 -150 809 Other nondurable goods................. 2,357 2,355 2,304 2,308 2,261 96 128 27 116 -65 156 91 360 Mining, including crude petroleum and natural gas........................... 4,261 4,238 4,308 4,266 4,116 145 50 39 312 -233 77 -156 331 Trade: Commodity dealers................. 1,962 2,007 2,126 2,170 2,199 -237 -108 49 357 630 -42 588 -540 Other wholesale....................... 6,124 6,002 5,965 5,906 5,886 238 258 178 471 151 43 194 567 Retail........................................ 6,928 7,015 6,866 6,870 6,613 315 430 375 540 -184 165 -19 1,092 Transportation..................................... 6,065 6,094 6,056 6,087 6,069 -4 164 -61 105 14 66 80 294 Communication................................... 2,428 2,483 2,389 2,380 2,175 253 73 -40 149 -78 -13 -91 258 Other public utilities............................ 5,976 6,029 5,886 5,886 5,586 390 146 -271 -291 596 734 1,330 961 Construction......................................... 5,720 5,709 5,642 5,623 5,582 138 94 -8 29 -200 211 11 878 Services................................................. 11,540 11,531 11,389 11,349 11,244 296 310 129 188 565 362 927 997 All other domestic loans..................... 8,858 9,001 8,829 8,941 8,812 46 535 -95 541 302 380 682 1,754 Bankers' acceptances........................... 1,290 1,261 1,141 1,265 1,336 -46 86 1 62 199 -322 -123 -154 Foreign commercial and industrial loans.............................................. 4,621 4,571 4,445 4,349 4,198 423 181 -142 125 23 -384 -361 554 Total classified loans........................... 100,720 101,320 99,802 99,466 97,296 3,424 5,035 780 5,604 1,237 3,243 4,480 11,991 Total commercial and industrial loans of large commercial banks.......... 120,106120,699119,086118,545 116,010 4,096 5,270 982 5,889 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 Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. 2nd 24 27 27 30 26 28 31 26 29 I IV III II half Durable goods manufactur­ ing: Primary metals................... 1,083 1,064 1,046 1,092 1,104 1,240 1,259 1,307 1,290 -40 -203 -21 -7 -224 Machinery.......................... 3,145 3,114 3,037 2,950 2,866 2,726 2,731 2,680 2,642 248 186 39 328 225 Transportation equipment. 1,423 1,365 1,367 1,324 1,284 1,257 1,239 1,266 1,231 81 18 77 15 95 Other fabricated metal products.......................... 934 911 911 938 894 912 901 871 853 17 23 2 84 25 Other durable goods.......... 1,972 1,915 1,837 1,737 1,772 1,754 1,795 1,788 1,738 143 -16 98 170 82 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,533 1,529 1,527 1,514 1,491 1,469 1,470 1,477 1,410 38 14 84 43 98 Textiles, apparel, and leather............................. 1,147 1,089 1,043 1,032 1,003 1,036 1,033 1,028 1,023 86 -25 59 77 34 Petroleum refining............. 934 945 r901 920 933 839 883 920 925 12 13 44 34 57 Chemicals and rubber....... 1,690 1,603 1,569 1,570 1,561 1,509 1,534 1,552 1,493 42 9 71 2 80 Other nondurable goods.. 1,145 1,139 1,080 1,069 1,082 1,077 1,090 1,100 1,080 57 -18 37 -37 19 Mining, including crude pe­ troleum and natural gas. 3,284 3,245 '3,203 3,153 2,958 2,950 2,958 2,990 2,921 287 -32 144 -26 112 Trade: Commodity dealers.. 144 140 129 137 127 135 120 116 115 13 11 -7 -27 4 Other wholesale........ 1,335 1,323 1,315 1,265 1,190 1,172 1,223 1,178 1,151 133 12 112 11 124 Retail......................... 2,543 2,480 2,376 2,249 2,206 2,227 2,175 2,147 2,135 274 59 141 183 200 Transportation....................... 4,414 4,417 4,311 4,327 4,320 4,208 4,220 4,279 4,292 97 41 -26 71 15 Communication..................... 978 966 940 947 860 828 819 858 835 106 2 73 39 75 Other public utilities.............. 3,196 3,154 3,245 3,298 3,252 3,121 2,857 2,836 2,678 -98 416 427 175 843 Construction.......................... 1,908 1,898 1,940 1,943 1,905 1,936 1,954 1,992 2,000 -7 -87 96 187 9 Services................................... 5,223 5,076 5,004 4,937 5,049 4,916 4,777 4,719 4,666 27 330 157 223 487 All other domestic loans .... 2,936 2,808 '2,384 2,692 2,602 2,617 2,552 2,585 2,460 206 17 384 330 401 Foreign commercial and in­ dustrial loans.................. 2,657 2,370 2,321 2,469 2,334 2,306 2,308 2,186 2,292 36 148 -399 18 -251 Total loans............................. *43,624 42,551 41,486 41,563 40,793 40,235 39,898 39,875 39,230 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 a MAY 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 f s i i n n 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 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 1974—Mar.*............................................................................. 18.9 108.4 70.6 2.3 11.0 211.2 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 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 6.2 111.5 Mar.*............................................................................. 14.7 61.5 27.6 2.1 6.3 112.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1971 1972 1973 1973 bank 1971 1972 1973 1973 All commercial.... 680 559 538 507 All member—Cont. Insured................ 677 554 533 503 Other large banks * 112 69 63 58 National member 387 311 304 288 All other member 1 371 313 312 294 State member.... 95 71 71 64 All nonmember........ 197 177 163 155 All member............ 482 381 375 352 Insured.................. 195 172 158 152 Noninsured............ 2 5 5 3 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 from the figures for weekly reporting banks as shown on pp. A-20-A-24 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l5. But they are included in the figures for “Time de­ posits” 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

MAY 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 Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 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 27r.. .. 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 I ,079 27r 4,904 2,834 2,070 1,454 369 1,085 Apr. 3.......... 5,114 2,893 2,221 1,440 358 1,082 10.......... 5,063 2,911 2,152 1,443 356 1,087 17.......... 5,043 2,874 2,169 1,448 360 1,088 24......... 5,386 3,080 2,306 1,457 367 1,090 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im­ Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. States States 196 5 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1.318 249 64 146 3,674 1,889 1,153 2,408 197 0 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 197 1 32,126 495 10,923 1,478 19.230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 197 2 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—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 Mar. 44,690 1,508 13,520 4,537 25,125 10,166 2,986 2,413 573 296 684 6,200 2,827 2,979 4,361 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 a MAY 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_5i/8_5i/4i 1972—Oct. 2. 5%.-5% 1973—Aug. 6 834-9. 1974—Apr. 2 914 .-94/10- 17, 4y4-5-5V4m 4. 51^-534- 7 9. 9 Vi 24, 45/g-43,*-5« 11. 53/4- 13 9-9V4. 3, 9i4-94/to- 31, 414-434.-5 16. 5V4m-5Vs 21, 914.-91/2 91/2- 22, 9i/i. 4" 94/10-9*4.- Feb. 28. 43/8-414- Nov. 6., 534- 28, 91/2-934. 934 43^- 20.. 534«-57/8 29 934. 5 9Vio-9*4- Mar. 13. 4!4-434. 93/4. 23. 434. Dec. 26.. 534--6 Sept. 14 9 34 .-10 8. 934.-98/10- 27. 434.^ 77,-5 27.. 534-6. 18 10. 10 27, 934-10. 11. 934-98/xo- Apr. 3. 434.-5 1973—Jan. 4., 10. 5. 5« Oct. 22 914-9 34-1 Oi 15. 10.-10i/io- 17. 5.-5*4 Feb. 2.. 6«-6*4 24, 9Vi-934.-10 IOI/4 14.. 6b 19. 10-10i /10- May 1. 5.-5i/8-5i4 26.. 6.-6V4 10*4. 30. 5« 27.. 6%. 23. 1014 .-104/10 1974—Jan. 7, 9i/i-934._ 24. 101/4.- June 12. 5«-5i/8 Mar. 19. 614.-634 99/io 104/io— 26. 5-514" 26. 6*i. 14 9i,4-93/4.- I0*i 98/io 25. 1014-104/10- July 1 3 0. . 5 5 i i 4 4 « . - _ 5 5 3 3 / / g 8_ Apr. 1 1 9 8 . . 6 6 3 1 /4 /2 . -634. 29 9i 9 4 7 - /i 9 o i/i.- 26. 104 1 / 0 10 * - i. 5i/i 10*i.- 17. 5V4--51/2 May 4. 634.-7 Feb. 11 9-9i4.93/io 1034-11 31. 5 i/4 51 « / - i 5 3/8- 2 7 4 . ., 7 7. . -714 2 1 5 9 , 98 V .-190- 1 8 4 3 4.-9 30, 10 I * O i 6 « / - 1 0- Aug. 11. 5i4"-53/g 25., 7-714. 26, 87/10-834. 1034-11 14. 51/4* 21. 5i4«-53/8 June 8. 7i/i. Mar. 4, 814-8V10- 25. 5i4«-53/g- 19. 71/i .-734 834. 5*4 25. 734. 5, 8*i-8«/io- 29. 514-53/8- 834* 5%« July 734 .-8 19. 8%.-88/io 734-8. 21. 834.-88/,o-9 Sept. 4. 514-5!Am 8-814. 22. 88/10-9. 5. 5*4- 814 .-8 ^ 26. 9. 11. 5Vi"-55/8 81/4-8 28. 9 .-914 25. 5i/i.-55/8- 8i/i. 29. 9-914 .-9 Vi 534 8i/i-834. 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 Digitized for FRBAusSinEesRs Loans was revised. For description of revised series see pp. 468- 77 of the June 1971 Bulletin. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 4- to 6- 3- to 6- 90 days 1 90-1R19ate Market Rate Market 1-year issues 6 days months months2 on new yield on new yield bill (mar­ Other « 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 8.21 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—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 Apr.. 9.92 9.79 8.43 9.61 10.51 8.229 8.33 8.171 8.32 8.08 8.66 7.99 Week ending- 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 Apr. 6. 9.53 9.38 8.25 9.30 9.93 8.358 8.51 8.211 8.31 7.95 8.48 7.91 13. 9.70 9.60 8.40 9.50 10.02 8.648 8.49 8.393 8.34 8.05 8.55 7.98 20. 9.88 9.73 8.50 9.50 10.36 8.051 8.05 8.084 8.18 8.05 8.61 7.94 27. 10.23 10.13 8.50 9.85 10.78 7.857 8.10 7.995 8.27 8.14 8.82 8.04 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 □ MAY 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 1 States ( t l e o r n m g ) ­ Total 1 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 196 3 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 196 4 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 196 5 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 196 9 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 197 3 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—Ap r 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 '7.09 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 "s.n 1974—Ja............n 6.56 5.23 5.03 5.49 8.21 8.22 8.15 7.83 8.58 7.97 8.34 8.27 7.60 3.64 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 '8.44 8.27 8.01 8.65 8.12 8.35 8.44 7.56 3.65 Apr........ 7.04 5.76 5.45 6.06 8.98 8.94 8.50 8.25 8.39 8.51 8.68 7.83 3.86 Week ending— 1974—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 Apr. 6. 7.02 5.73 5.40 6.00 8.78 8.75 8.43 8.17 8.79 8.30 8.42 8.62 7.75 3.80 13. 7.04 5.83 5.50 6.15 9.13 8.92 8.49 8.25 8.87 8.36 8.48 8.69 7.81 3.88 20. 6.99 5.69 5.40 6.00 8.91 8.95 8.51 8.26 8.89 8.41 8.51 8.66 7.83 3.80 27. 7.07 5.80 5.51 6.10 8.98 9.08 8.55 8.28 8.94 8.45 8.57 8.71 7.91 3.95 Number of issues2.. . 12 20 121 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 27 Vi 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- 22Vi; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Period 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 e U o o r . n m v S g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d 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 ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l i NYSE AMEX 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2.752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 138.96 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 10,374 3,004 1973—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.... 60.33 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 Apr.. .. 57.01 80.2 60.3 92.46 103.46 40.26 44.03 49.21 53.95 35.87 32.59 58.72 93.57 12,109 1.752 Week ending— Apr. 6 57.16 80.7 60.7 93.65 104.77 41.17 45.85 49.94 54.58 36.50 33.53 60.05 96.25 11,660 1,756 13 57.00 79.7 60.3 92.29 103.30 40.56 44.90 49.17 53.78 36.09 32.99 58.58 94.43 10,798 1,783 20 57.39 81.0 60.4 93.72 105.05 40.75 44.75 49.90 54.71 36.58 32.99 59.64 94.24 12,790 1,743 27 56.81 79.4 59.9 91.05 102.27 39.35 42.28 48.37 53.15 34.98 31.64 57.57 91.05 13,952 1,883 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h ( e e a p e n r e s t g ) r e * & s M (y a e t a u r r s i ) ty L c p r ( a e o p r t i n a e c i t n r o e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l u o o la s a u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c t n o r e ) / (t d h c o o p P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o s a a u . r n s n 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—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.r.......... 8.43 1.35 26.4 77.3 39.1 29.5 8.47 1.02 23.3 74.1 32.6 23.7 Apr.*.......... 8.46 1.25 26.4 77.7 38.4 29.4 8.42 1.01 23.2 74.0 32.2 23.5 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 STOCK MARKET CREDIT □ MAY 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—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 1,105 203 59 19 17 1,878 419 1,713 r6,774 5,671 1,003 5,460 1,027 197 60 14 16 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..................................... 6,462 5,423 1,039 5,230 977 183 46 10 16 1,843 420 1,604 Mar.................................... 5,519 5,330 180 9 424 1,583 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 E pe n r d i o o d f ( l d i m o o eb n i f l s t ­ 80 or Under End of period c st N r a e t e d u t i s t 60 pe in r c d e e n b t i t s L t e a s tu s s than ( b m T a i l o a ll t n a io c l n e s dol­ more 70-79 60-69 50-59 40-49 40 or more 60 per cent of dollars) lars)! 1973—Mar...................... 36.3 47.9 15.7 5,790 1973—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 May..................... 35.8 45.0 19.1 5,670 May. 6,540 4.9 7.2 12.7 18.7 21.9 34.9 June..................... 35.8 43.5 20.7 5,750 June. 6,180 4.9 7.1 13.2 17.5 22.1 35.3 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.§ 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 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 Note.—Special miscellaneous accounts contain credit balances that i See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 . v S t . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r 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 s a u n e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 g re e s n e e r r v a e l accts. 3 or 3-6 6-9 Over Total less 9 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—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 3,87i 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 Feb.... 73,647 4,584 2,846 942 21,923 1,618 2,316 107,877 97,276 2,919 7,681 1,232 562 407 952 3,153 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 U S n ta i t t e e s d Sta lo te c a a l nd Foreign 1 To tal Bonds Stocks gages estate loans assets 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--Jan.r............................ 240,877 11,417 4,545 3,379 3,493 114,408 88,076 26,332 77,105 7,380 18,080 12,487 Feb.'........................... 241,639 11,342 4,484 3,363 3,495 115,017 88,966 26,051 77,108 7,443 18,163 12,566 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 1974- 253,531 11,465 4,410 3,463 3,592 119,079 93,082 25,997 81,490 7,816 20,242 13,439 Feb............................... 254,739 11,535 4,429 3,518 3,588 119,715 93,672 26,043 81,745 7,825 20,382 13,537 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 □ MAY 1974 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o ge rt s ­ I s n m e v c e e u 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 ro B o w n o e e r y ­ d 4 p L ro o i c n a e n s s s Other ou a p t t s e e t r a n i n o d 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—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........................ 234,426 23,327 19,901 277,654 231,264 17,623 16,431 4,304 8,032 10,740 Mar.*.................... 236,501 24,020 20,403 280,951 235,465 17,476 16,665 4,488 6,857 11,935 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 A t n e o d c m ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s i d ­ h ts B n a o o n n te d 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 a e u o n b r t e e d e s s n­ c L a o t o o i t v o a p e n e s s r­ D t e u b re e s n­ c L o a d o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (L) (A) (L) (A) (L) (A) (L) 1967.............. 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968............. 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969.............. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970............. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971.............. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972............. 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—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 11,2,13 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 Mar... 14,995 2,779 124 13,906 2,027 2,306 24,888 23,515 3,143 2,878 7,545 7,162 11,467 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

MAY 1974 □ FEDERALLY SPONSORED CREDIT AGENC A 3 ISSUES OF FEDERALLY SPONSORED AGENCIES, MARCH 31, 19; Amount Cou­ Amount .mou (millions Agency, and date of issue pon (millions Agency, and date of issue tiillio of dollars) and maturity rate of dollars) and maturity dolla Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 300 Debentures: 10/1/73 -4/1/74.. 332 700 8/5/70 - 6/10/74........... 7.90 400 11/1/73 -5/1/74.. 364 173 11/10/71 -6/10/74.......... 5.70 350 12/3/73 -6/3/74.. 617 400 9/10/69 - 9/10/74.......... 7.85 250 1/2/74-7/1/74. .. 462 800 2/10/71 - 9/10/74............ 5.65 300 2/4/74-8/1/74. .. 559 218 5/10/71 - 12/10/74.......... 6.10 250 3/4/74-9/3/74... 343 1,000 9/10/71 - 12/10/74.......... 6.45 450 10/1/73 -4/4/77.. 200 250 11/10/70 - 3/10/75........ 7.55 300 400 10/12/71 - 3/10/75........ 6.35 600 500 4/12/71 -6/10/75............ 5.25 500 Federal intermediate 700 10/13/70 - 9/10/75........ 7.50 350 credit banks 265 3/12/73 -9/10/75............ 6.80 650 Debentures: 300 3/10/72 - 12/10/75........ 5.70 500 7/2/73 -4/1/74.. 421 300 9/10/73 - 12/10/75.......... 8.25 300 8/1/73 - 5/1/74. . 538 500 3/11/71 - 3/10/76............ 5.65 500 9/4/73 - 6/3/74.. 626 400 6/12/73 - 3/10/76............ 7.13 400 10/1/73 -7/1/74. 699 350 6/10/71 -6/10/76............ 6.70 250 1/4/71 _ 7/1/74. 224 600 2/10/72 -6/10/76............ 5.85 450 11/1/73 - 8/1/74. 583 300 11/10/71 - 9/10/76.......... 6.13 300 12/3/73 -9/3/74. 528 300 6/12/72-9/10/76........... 5.85 500 1/2/74- 10/1/74. 561 600 7/12/71 - 12/10/76.......... 7.45 300 2/4/74- 11/4/74. 754 300 12/11/72- 12/10/76........ 6.25 500 3/4/74- 12/2/74. 785 500 2/13/62 - 2/10/77.......... 4% 198 5/1/72- 1/2/75.. 240 500 9/11/72 - 3/10/77............ 6.30 500 1/3/72-7/1/75.. 302 200 3/11/74 - 3/10/77............ 7.05 400 3/1/73 - 1/5/76.. 261 300 12/10/70 - 6/10/77........ 6.38 250 7/2/73 - 1/3/77... 236 300 5/10/71 -6/10/77............ 6.50 150 1/2/74 - 1/3/78. . 406 300 12/10/73 -6/10/77.......... 7.20 500 500 9/10/71 -9/12/77............ 6.88 300 Federal land banks 350 9/10/73 - 9/12/77............ 7.85 400 Bonds: 300 7/10/73 - 12/12/77.......... 7.25 500 10/20/70 - 4/22/74.. 7.30 354 200 10/1/73 - 12/12/77.......... 7.55 500 9/15/72 -4/22/74.... 5.85 350 200 6/12/73 - 6/12/78............ 7.15 600 10/20/71 -7/22/74... 5.85 326 200 3/11/74 -9/11/78............ 7.15 550 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... 8^ 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 4 3 2 1 1 1 0 5 0 5 5 4 0 0 0 0 0 0 2 2 2 1 1 1 1 / / / / 2 2 0 1 1 1 1 / / / 1 6 6 6 0 1 1 0 / / / 1 / / 7 7 7 7 7 / / 7 3 3 3 3 7 2 1 2 - - - - - 7 7 - - 9 3 1 / / / 3 3 1 / 0 1 1 1 2 / 1 1 0 3 0 2 / / / 1 / 0 / / 8 8 8 1 8 0 / 0 0 8 0 0 0 /8 0 . / . . . . 7 . . . 0 . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 6 7 5 3 6 . . . . . . . 5 4 6 1 8 1 5 5 6 8 0 8 9 0 4 3 2 3 0 0 5 5 9 0 0 0 5 0 1 7 4 2 7 2 1 1 / / / / / / 0 2 2 2 1 2 2 / 0 1 0 2 5 2 0 / / / / / 3 7 6 6 / 7 7 / 7 1 3 6 6 7 2 2 3 - - - - - - 7 - 4 1 1 / 2 7 / 1 0 2 / 2 / / 2 0 / 2 2 1 0 2 0 / 4 0 2 / 0 / / 7 7 / / 0 7 / 7 7 7 5 / 6 6 7 6 6 5 . . . 5 . . . . . . . . . . . . . . . . . . . . 6 7 7 6 5 5 5 * % . . . H . 4 7 2 0 4 0 0 0 0 4 3 3 3 3 1 1 7 2 0 0 6 2 5 3 5 3 2 0 0 0 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... . 7% 550 3/21/73 - 5/1/81.............. 4.50 18 10/20/71 - 10/20/77.. 6.35 300 2,218 3/12/73 - 5/1/81............. 5.77 2 2/20/63 -2/20/73-78. 4% 148 1/21/71 - 6/10/81.......... 7.25 250 5/2/66 - 4/20/78 5H 150 200 9/10/71 -9/10/81............ 7.25 250 7/20/72 - 7/20/78. . . 6.40 269 248 3/11/74-12/10/81 ,,, 7.30 250 10/23/73 - 10/19/78.. 7.35 550 250 6/28/72-5/1/82.............. 5.84 58 2/20/67 - 1/22/79___ 5.00 285 2/10/71 - 6/10/82............ 6.65 250 1/21/74- 1/22/79.... 7.10 300 9/11/72 - 9/10/82........... 6.80 200 9/15/72 -4/23/79.... 6.85 235 250 12/10/73 - 12/10/82........ 7.35 300 2/20/74 - 7/23/79___ 7.15 389 53 3/11/71 - 6/10/83............ 6.75 200 10/23/72 - 10/23/79.. 6.80 400 5 6/12/73 -6/10/83............ 7.30 300 1/22/73 - 1/21/80.... 6.70 300 71 11/10/71-9/12/83 ....... 6.75 250 7/20/73 - 7/21/80___ 7% 250 35 4/12/71 -6/11/84............ 6.25 200 2/23/71 -4/20/81___ 6.70 224 10 12/10/71 - 12/10/84___ 6.90 250 4/20/72-4/20/82.... 6.90 200 21 3/10/72 - 3/10/92.......... 7.00 200 4/23/73 - 10/20/82... 7.30 239 81 6/12/72-6/10/92............ 7.05 200 10/23/73 - 10/20/83. . 7.30 300 200 12/11/72 - 12/10/97........ 7.10 200 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 □ MAY 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 197 3 232,225 246,526 -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—Mar. r 15,879 '20,783 -4,904 3,768 27 584 206 3,005 1,152 '-63 '2,988 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 Mar.............. 16,818 22,905 -6,086 3,813 394 -164 61 4,309 690 191 2,657 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts 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 ie y s S is p G I s e n u c o v e i v a s e t l s , tm ac e c n o O t u s n t o h ts f e r S n L p o e e t c s e s i s a : 3 l E p T h q u b o e u b y l t l a d a i l c l s: s c p p o G r o N r i n o v p o s v s a w o . t t — . r e - e 6 d 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—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 59,282 Mar............. 1,372 6,915 69 8,356 474,500 11,975 108,465 24,752 825 352,433 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

MAY 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 ta n x s es Period Total Pres. Em tax p e lo s y a m n e d nt Excise Cus­ Estate Misc. W he i l t d h­ F C p E t u a i a l o i e n m g n c d n ­ ­ 1 N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c t o P a r n o a x y t l e r l ­ s ibu e t S m io el p n f l - s . 2 i e n U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 3 t N ot e a t l taxes toms gift ceipts* Fiscal year: 197 0 193,74377,416 26,23613,24090,41235,037 2,20837,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 197 1 188,39276,490 24,26214,52286,23030,320 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 3,43753,914 15,477 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 13,569 51,27221,664 1,31224,445 1,877 4,736 1,76430,925 6,516 1,449 3,041 1,915 July-Dee.... 106,06246,056 5,784 688 51,152 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 52,09123,730 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 99958,170 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 Month: 1973—Mar.. r15,878 r8,645 1,494 6,833 *•3,307 5,208 342 4,771 186 63 *•318 *"5,338 1,244 278 489 *■356 Apr.. 25,860 8,648 9,124 6,185 11,587 5,915 258 4,297 1,316 444 302 6,359 1,318 262 330 348 May. 16,584 8,813 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June. 28,537 9,168 3,735 59712,306 8,983 188 4,548 145 95 293 5,081 1,386 273 335 360 July. . 18,121 8,487 681 354 8,814 1,552 202 4,608 382 346 5,336 1,538 276 398 409 Aug., 21,291 9,085 451 257 9,279 904 209 7,087 1,357 333 8,778 1,434 303 494 308 Sept.. 25,007 7,940 3,903 13511,707 5,477 230 4,812 177 103 317 5,409 1,436 238 373 597 Oct... 17,637 8,752 550 71 9,230 1,515 462 4,119 24 217 351 4,712 1,459 291 454 437 Nov.. 20,209 9,811 261 6610,006 939 287 5,578 825 321 6,724 1,563 301 462 501 Dec.., 21,987 8,887 362 115 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 Mar.................. 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 5,721 1,211 277 465 377 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—Mar »•___ 20,783 6,965 324 301 -77 309 1,074 271 786 7,579 1,064 2,097 424 -331 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 2,104 911 777 7,792 1,099 2,184 563 1,495 -850 Aug......... 22,139 6,772 327 262 440 573 1,090 779 954 7,935 1,054 2,159 466 -3 -670 Sept......... 20,736 6,095 205 246 -35 422 957 712 661 8,302 970 2,392 643 16 -849 Oct........... 23,092 6,607 282 248 503 416 1,260 561 955 8,040 1,058 2,135 479 1,494 -850 Nov......... 22,099 6,900 276 246 782 424 912 36 805 8,373 1,194 2,401 438 29 -717 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 58 363 198 932 8,979 1,088 2,466 520 *■1 -677 Mar......... 22,904 6,686 345 252 205 759 746 263 1,036 9,310 1,194 2,508 499 -898 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 nonwithheld income taxes prior to Feb. not add to totals because special allowances for contingencies, Federal 1974. 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 □ MAY 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total Marketable Nonmarketable End of period p g u r b o l s i s c Con­ i S s p su e e c s i a 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n r le d t­ s F is o su re e i s g n 4 b S o in a n g v d s ­ s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—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 Apr. 471.9 361.7 270.5 107.3 127.6 35.5 2.3 89.0 25.7 61.9 108.4 1 Includes non-interest-bearing debt (of which $618 million on Apr. 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 30, 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 io 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 u n .S v c d s t . i t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m 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 v c 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 O i 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 9.0 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 3.1 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 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec........... 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Apr............ 457.1 117.9 75.5 263.7 60.5 3.4 6.3 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 6.3 9.8 28.8 59.5 16.4 60.2 16.6 July................ 459.0 125.0 77.1 256.9 56.5 3.1 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 2.9 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 2.9 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 2.9 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 2.9 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 Mar............... 474.5 131.2 79.5 263.8 59.5 2.8 6.1 11.7 30.4 61.1 17.3 54.9 20.0 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

MAY 1974 □ 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 y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 ea -2 rs 0 20 O y v e e a r r s 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—Feb. 28........................................................ 269,650 141,444 107,850 33,594 79,045 26,968 16,128 6,063 Mar. 31........................................................ 273,596 145,453 111,859 33,594 79,045 26,965 16,092 6,040 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—Feb. 28................................................ 21,234 2.391 694 1,697 7,355 4,603 5,264 1,620 Mar. 31................................................ 21,272 2,416 744 1,672 7,379 4,573 5,284 1,620 Federal Reserve Banks: 1971—Dec. 31................................................ 70,218 36,032 31,033 4,999 25,299 7,702 584 601 1972—Dec. 31................................................ 69,906 37,750 29,745 8,005 24,497 6,109 1,414 136 1973—Dec. 31................................................ 78,516 46,189 36,928 9,261 23,062 7,504 1,577 184 1974—Feb. 28................................................ 78,237 46,425 36,467 9,958 22,236 7,780 1,612 184 Mar. 31................................................ 79,483 47,032 38,938 10,094 22,618 7,987 1,648 198 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—Feb. 28................................................ 170,179 92,628 70,689 21,939 49,454 14,585 9,252 4,259 Mar. 31................................................ 172,841 96,005 74,177 21,828 49,048 14,405 9,160 4,222 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—Feb. 28........................................ 45,369 16,441 7,336 9,105 22,450 5,142 1,070 265 Mar. 31........................................ 45,524 16,726 7,763 8,963 22,381 5,106 1,023 290 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—Feb. 28........................................ 1,834 493 221 272 704 228 291 117 Mar. 31........................................ 1,855 509 240 269 710 230 254 151 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—Feb. 28......................................... 4,858 710 298 412 1,068 1,269 1,276 510 Mar. 31......................................... 4,959 815 413 402 1,066 1,297 1,278 501 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—Feb. 28........................................ 4,765 2,877 1,632 1,245 1,386 351 136 15 Mar. 31......................................... 5,513 3,561 2,129 1,432 1,528 356 53 14 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—Feb. 28......................................... 2,116 580 159 421 978 338 169 50 Mar. 31........................................ 2,184 603 194 409 968 372 191 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—Feb. 28........................................ 10,834 7,035 5,604 1,431 1,834 805 836 325 Mar. 31......................................... 10,723 7,026 5,677 1,349 1,724 737 913 323 AH 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—Feb. 28........................................ 100,403 64,492 55,439 9,053 21,034 6,425 5,474 2,977 Mar. 31........................................ 102,083 66,765 57,761 9,004 20,671 6,307 5,448 2,893 Note.—Direct public issues only. Based on Treasury Survey of banks, and 737 insurance companies combined, each about 90 per cent; Ownership. (2) 465 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 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) 5,598 commercial banks, 479 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 U.S. GOVERNMENT SECURITIES □ MAY 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—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 Mar.............................. 3,697 2,814 450 369 64 744 892 1,071 991 733 Week ending— 1974—Mar. 6....................... 3,125 2,339 358 354 74 667 755 894 810 810 13....................... 3,673 2,813 437 349 73 713 1,004 1,080 876 673 20....................... 3,520 2,741 363 367 49 735 822 969 995 542 27....................... 3,910 2,978 445 426 60 748 884 1,238 1,039 1,011 Apr. 3....................... 3,929 2,921 736 228 44 723 972 1,069 1,165 512 10....................... 3,609 2,762 590 195 61 638 1,058 1,000 913 870 17....................... 3,839 3,145 415 248 32 774 1,056 1,126 882 742 24....................... 3,067 2,644 240 135 48 557 588 938 983 772 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a i t e 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 r 0 s 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 e it r w y k w E h ls e e r ­ e C t o io rp n o s r * a­ o A th l e l r 1973—Mar................ 2,702 3,130 -274 -143 -11 180 1973—Mar............ 2,799 903 292 281 1,323 Apr................. 2,795 3,105 -159 -143 -9 274 3,032 935 513 311 1,273 May............... 2,626 2,596 -324 179 175 356 May........... 2,667 674 452 252 1,291 June............... 2,976 2,818 -165 91 232 744 June........... 3,769 1,242 690 431 1,406 July................ 1,901 2,062 -250 -43 131 511 July............ 2,826 725 544 510 1,047 Aug................ 1,788 1,977 -94 -107 12 273 Aug............ 2,318 829 327 386 111 Sept................ 3,201 2,958 316 -111 38 799 Sept............ 4,244 1,620 877 441 1,306 Oct................. 3,073 2,858 93 56 67 904 3,721 1,253 918 328 1,223 Nov................ 3,618 3,034 95 350 139 1,185 Nov........... 4,469 1,809 900 570 1,190 Dec................. 4,441 3,697 223 396 124 1,400 5,468 2,322 1,147 671 1,329 1974—Jan................. 3,653 3,210 51 262 130 1,324 1974—Jan............. 4,802 1,747 1,253 658 1,143 Feb................. 4,081 2,707 537 647 190 1,435 Feb............. 4,837 1,545 1,501 533 1,257 Mar................ 2,587 2,149 50 287 102 1,045 Mar............ 3,817 1,196 952 485 1,185 Week ending— Week ending— 1974—Feb. 6........ 3,667 3,024 126 414 102 1,359 1974—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 Mar. 6........ 3,591 2,622 323 459 187 1,222 Mar. 6... 4,640 1,607 1,154 652 1,226 13. . . . 3,336 2,695 133 376 133 1,229 13... 4,821 1,589 1,144 662 1,426 20. , 2,037 1,670 2 284 81 1,118 20... 3,559 1,187 904 455 1,013 27 . 1,703 1.650 -138 142 48 783 21... 2,733 690 737 306 999 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ U.S. GOVERNMENT SECURITIES A 41 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, APRIL 30, 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. May 2, 1974. 4,308 Sept. 26, 1974.. 1,801 Sept. 30, 1975,....83/8 2,042 May 15, 1974.....4V4 2,847 May 7, 1974. 1,800 Oct. 3, 1974... 1,810 Oct. 1, 1975.....1% 30 Nov. 15, 1974.....37/. 1,213 May 9, 1974. 4,306 Oct. 10, 1974... 1,802 Nov. 15, 1975... ..7 3,115 May 15, 1975-85.•41/J 1,201 May 16, 1974. 4.303 Oct. 17, 1974... 1,804 Dec. 31, 1975. .. , ,7 1,731 June 15, 1978-83..314 1,474 May 23, 1974. 4.303 Oct. 22, 1974.... 1,802 Feb. 15, 1976.....6V4 3,739 Feb. 15, 1980.....4 2,573 May 30, 1974. 4.301 Oct. 24. 1974... 1,802 Feb. 15, 1976, ....57/8 4,945 Nov. 15, 1980.....3 V4 1,896 June 4, 1974., 1,801 Nov. 19, 1974..., 1,801 Mar. 31, 1976.....8 1,532 Aug. 15, 1981.....7 807 June 6, 1974. 4.301 Dec- 17, 1974..., 1,803 Apr. 1, ...1% 27 Feb. 15, 1982.....63/8 2,702 June 13, 1974. 4.303 Jan. 14 1975..., 1,802 May 15, 1976.....5V4 2,802 Aug. 15, .63/. 2,353 June 20, 1974. 4,300 Feb. 11, 1975.... 1,802 May 15, 1976.....6% 2,697 May 15, 1985.....314 936 June 21, 1974f 4,523 Mar. 11, 1975.... 1,801 Aug. 15, ...7% 4,194 Nov. 15, 1986.....61/8 1,216 June 27, 1974. 4.303 Apr. 8, 1975.... 1,801 Aug. 15, 1976..••*6Vi 3,883 Aug. 15, 1987-92..41/4 3,665 July 2,1974. 1,802 Oct. 1, ...1% 11 Feb. 15, 1988-93..4 227 July 5, 1974. 4.304 Nov. 15, ...6V4 4,325 May 15, 1989-94..41/8 1,446 July 11, 1974. 4,311 Feb. 15, 1977......8 5,163 Feb. 15, 1990.....3% 3,898 July 18, 1974. 4,314 Treasury notes Apr. 1,1977. . ,...lVi 5 Feb. 15, 1993... ..6 y4 627 July 25, 1974. 4,299 May 15, 1974........7V4 4,334 May 15, 2,565 Aug. 15, 1993 .7 Vi 1,914 July 30, 1974. 1.804 Aug. 15, 1974........5Y& 10,284 Aug. 15, ...7 y4 4,918 Feb. 15, 1995.....3 813 Aug. 1, 1974. 1,803 Sept. 30, 1974........6 2,060 Oct. 1, ...iVi 17 May 15, 1993-98..7 692 Aug. 8, 1974. 1,802 Oct. 1, 1974........m 42 Feb. 15, 1978,..,..6V4 8,389 Nov. 15, .3% 3,030 Aug. 15, 1974. 1,799 Nov. 15, 1974........5V4 5,442 Apr. 1, 1978 , .,...m 15 Aug. 22, 1974. 1,797 Dec. 31, 1974........5% 2,102 Oct. 1, 1978,.....i% 3 Aug. 27, 1974. 1.805 Feb. 15, 1975........5% 4,015 Nov. 15, 1978.....6 8,207 Aug. 29, 1974. 1,802 Feb. 15, 1975........5% 1,222 Aug. 15, 1979.....6V4 4,559 Convertiblebonds Sept. 5, 1974. 1.805 Apr. 1, 1975........UA 8 Nov. 15, 1979......65/8 1,604 Investment Series B Sept. 12, 1974. 1,802 May 15, 1975........5% 1,776 Nov. 15, 1979,....7 2,241 Apr. 1, 1975-80..21/4 2,272 Sept. 19, 1974. 1,801 May 15, 1975........6 6,760 May 15, 1980.....67/8 7,265 Sept. 24, 1974. 1,802 Aug. 15, 1975........5Y& 7,679 Feb. 15, 1,842 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a . v S n t . s . State di s a s t n t a r d t i . 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 tie ti 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 i gations auth. 196 4 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 196 5 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 197 1 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 197 3 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 1973 r—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... 2,198 1,402 794 2 208 823 1,163 2,130 595 36 373 56 1,070 Feb... 1,934 1,155 778 1 473 523 938 1,869 449 53 612 39 717 Mar.. 1,979 1,160 590 227 3 346 776 856 1,868 359 258 349 241 660 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 □ MAY 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 Others 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 1973—Feb........... 7,325 1,603 2,261 1,445 53 1,962 957 641 316 172 832 Mar.......... 9,029 606 1,826 2,304 359 3,933 2,116 1,315 802 833 984 Apr........... 6,567 564 1,640 1,688 178 2,497 1,739 938 801 200 558 May......... 11,225 3,353 3,442 1,870 17 2,543 1,721 1,049 672 187 635 June......... 7,943 559 1,706 2,046 53 3,578 2,757 1,358 1,398 216 606 July.......... 7,643 490 2,471 1,992 48 2,631 1,870 857 1,013 226 536 Aug.......... 8,019 3,097 1,600 1,414 22 1,806 1,382 792 590 94 330 Sept.......... 8,091 2,432 2,100 1,630 15 1,915 1,366 684 682 119 430 Oct........... 8,924 485 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 1974—Jan. ........ 3,370 2,934 2,115 819 152 284 Feb........... 2,639 2,052 1,684 369 268 318 Gross proceeds, major groups of corporate issuers Period Manufacturing Commercial and Transportation Public utility Communication Real estate miscellaneous and financial Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1964.............................................. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965............................................... 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 1966............................................... 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967............................................... 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 1968............................................... 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969............................................... 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 1970............................................... 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 1971.............................................. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1972.............................................. 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 2,095 1973_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 8 361 410 355 351 231 June................................... 703 25 133 89 183 1,099 497 303 29 337 181 July.................................... 364 169 139 112 250 1 651 269 244 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 1974—Jan..................................... 854 29 132 125 136 1,192 249 141 4 478 30 Feb.................................... 337 36 47 143 5 1 536 293 372 25 756 87 1 Gross proceeds are derived by multiplying principal amounts or 6 Beginning Jan. 1974 noncorporate figures are no longer published by number of units by offering price. the SEC. 2 Includes guaranteed issues. 3 Issues not guaranteed. Note.—Securities and Exchange Commission estimates of new issues 4 See note to table at bottom of preceding page. maturing in more than 1 year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ­ izations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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- temal 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—Mar... 519 531 -12 53,377 3,774 49,603 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Apr... 300 452’ -120 50,837 3,837 46,464 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 May.. 285 446 -161 48,588 4,154 44,434 June.. 303 349 -46 48,127 4,164 43,963 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 July. . 364 357 -7 50,933 4,594 46,339 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Aug. . 239 432 -193 49,553 4,567 44,986 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Sept... 330 395 -65 52,322 4,641 47,681 Oct.. . 305 559 -254 51,952 4,168 47,784 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Nov... 502 542 -40 45,814 4,126 41,688 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Dec... 349 392 -43 46,518 4,002 42,516 1970............ 4,624 2,987 1,637 47,618 3,649 43,969 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1971.............. 5,145 4,751 774 56,694 3,163 53,531 Feb... 215 303 -88 45.958 4,447 41,511 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 Mar... 297 346 -49 44,423 4,406 40,017 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 □ MAY 1974 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ s e 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 t e 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 l s p o 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—j........ 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.............. 126.3 55.8 70.4 27.8 42.6 71.4 IV.... 127.4 55.7 71.6 29.0 42.6 74.2 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 G U o . v S t . , i Other G U o . v S t . .1 Other taxes 1969............................. 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 192.0 12.6 76.0 1970'............................ 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971r—i....................... 192.0 496.1 49.0 8.0 4.2 202.6 195.8 36.5 304.1 6.1 200.0 11.5 86.5 II..................... 196.4 500.3 51.6 7.9 3.9 204.6 196.4 35.8 303.9 5.3 200.1 10.5 88.2 Ill................... 200.9 509.3 52.9 8.0 3.9 207.9 198.8 37.7 308.4 5.0 201.7 11.6 90.1 IV................... 204.9 518.8 55.7 10.7 3.5 208.8 200.3 39.7 313.9 4.9 207.3 12.2 89.5 1972r—I....................... 209.8 528.1 55.6 10.2 3.4 212.8 204.3 41.8 318.3 4.9 207.0 13.3 93.2 II..................... 215.0 536.5 56.0 8.9 2.8 217.8 207.7 43.1 321.5 4.9 208.5 11.4 96.7 Ill................... 219.2 547.5 57.7 7.8 2.9 224.1 212.2 42.8 328.3 4.7 212.1 12.7 98.8 IV................... 224.3 563.1 60.5 9.9 3.4 230.5 215.1 43.6 338.8 4.0 221.6 14.1 99.1 1973 *■_I....................... 231,8 579.2 61.2 10.8 3.2 235.7 222.8 45.5 347.4 4.1 222.8 15.7 104.7 II..................... 237.7 596.8 62.3 9.6 2.9 245.6 230.3 46.0 359.1 4.5 232.5 13.9 108.1 Ill................... 241.9 613.6 62.2 9.5 3.0 254.2 238.2 46.6 371.7 4.4 240.8 15.3 111.2 IV.................... 245.3 631.4 65.2 10.7 3.5 255.8 247.0 49.3 386.1 4.3 252.0 16.6 113.3 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note: Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Mining Commu­ Other1 T (S o .A ta . l Durable du N r o a n bl ­ e R ro a a i d l­ Air Other Electric and G a o s th er nications 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.S)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

MAY 1974 □ REAL ESTATE CREDIT A 45 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm h O ol 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 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n i c i n i o s 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 i n 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 th r l s d e ­ r 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 er ­ w u F V n H ri d A t A e te - r n - - t C v io e o n n n a ­ ­ l 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 196 5 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 196 6 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 196 7 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 196 8 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 196............9 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 197 0 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109.2 311.3 197 1 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 197 2 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 131.1 398.9 1971—III. 485.6 383.5 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.7 153.5 125.8 27.7 117.5 335.7 IV. 499.9 394.4 39.4 66.2 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.3 28.9 120.7 346.3 1972—1... 511.7 404.2 41.2 66.4 33.5 9.9 23.6 478.2 314.1 259.6 54.5 164.1 134.6 29.4 123.7 354.5 II. . 529.1 418.9 42.7 67.5 34.4 10.2 24.2 494.8 324.6 268.8 55.8 170.2 140.0 30.3 126.6 368.2 III. 547.3 434.6 44.3 68.3 35.0 10.3 24.7 512.3 335.8 279.2 56.6 176.5 145.1 31.3 129.0 383.3 IV. 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 131.1 398.9 1973—1... 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 Ill* , 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 Multifamily i underwritten Con­ E pe n r d io o d f Total F i i n c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i i c n n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in re A ­ d - an g V t u e A a e r - d ­ 1 ti v o e n n a ­ l tutions tutions 1964............... 231.1 195.4 35.7 33.6 25.1 8.5 196 4 197.6 69.2 38.3 30.9 128.3 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 7 6 9 8 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 3 5 8 6 9 1 0 4 0 8 9 . . . . . 1 0 0 6 0 2 2 2 2 2 2 6 5 1 3 3 3 0 6 5 . . . . . 7 2 8 6 0 4 5 4 3 4 0 4 3 6 7 . . . . . 3 9 8 0 4 5 4 4 4 3 0 7 2 3 7 . . . . . 3 3 9 2 2 4 2 3 3 3 1 1 9 7 4 . . . . . 5 3 7 0 7 1 9 9 8 8 0 . . . . . 8 2 8 2 7 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 9 7 8 6 5 2 2 2 2 2 3 5 1 6 2 6 2 6 1 3 . . . . . 1 8 2 9 6 9 7 7 7 8 3 6 0 9 4 . . . . . 1 1 9 2 4 5 5 4 4 4 4 0 2 4 7 . . . . . 5 8 0 6 4 3 3 3 3 3 1 2 1 3 5 . . . . . 1 5 3 8 7 1 1 1 1 1 5 7 6 3 4 6 6 6 9 7 . . . . . 1 6 8 8 6 1 1 1 9 9 9 7 7 7 1 2 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 3 2 7 3 2 4 8 . . . 5 7 2 2 3 3 7 0 4 6 7 7 . . . 1 1 9 6 6 7 1 8 4 . . . 1 5 6 6 7 5 6 6 8 . . . 8 0 4 4 5 5 5 9 2 . . . 1 8 0 1 1 1 7 4 2 . . . 3 9 2 1 1 1 9 9 9 7 7 7 1 0 2 2 3 34 0 8 6 7 0 . . . 1 2 8 1 1 9 1 0 7 3 5 . . . 3 0 2 5 6 6 9 5 8 . . . 9 7 2 4 3 3 4 7 9 . . . 3 7 5 2 2 1 3 0 8 3 2 2 . . . 1 9 6 1971— I I V II . - . - .. - . - . - . 3 3 6 7 4 4. . 7 0 2 3 9 06 8 . . 1 4 6 6 8 5 . . 5 6 6 6 4 6 . . 3 8 5 52 0. . 4 0 1 1 4 3 . . 9 9 1971— I I V II . . 2 3 9 0 9 7. . 8 7 1 1 0 0 2 5 . . 9 2 6 6 5 4 . . 7 4 3 3 9 8 . . 5 5 2 1 0 9 2 6 . . 6 8 1972— I I 1 IV I l .. . l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 3 3 0 2 9 8 2 9 5 2 . . . . 5 3 8 9 3 3 3 3 3 4 1 2 6 4 7 2 . . . . 1 1 9 9 7 7 7 7 4 3 0 1 . . . . 6 2 0 7 7 7 6 7 3 6 8 1 . . . . 5 8 3 4 5 5 5 5 9 6 5 3 . . . . 1 3 9 3 1 1 1 1 7 6 5 6 . . . . 3 6 4 0 1972— I I 1 1 V I 1 . I . . . . . . 3 3 3 3 4 3 1 2 6 5 4 4 . . . . 1 1 8 6 1 1 1 1 0 1 0 1 9 1 3 7 . . . . 5 6 0 5 6 6 6 6 8 7 8 6 . . . . 2 8 6 4 4 4 4 4 4 3 2 0 . . . . 1 7 0 7 2 2 2 2 3 2 0 1 3 4 6 5 . . . . 1 3 0 6 1973—1 I I . I I . I . . . . * . . . .. . . . . . . . . . . 4 4 4 3 4 6 2 7 1 . . . 8 9 6 3 3 3 5 7 8 7 0 0 . . . 4 4 0 7 7 8 7 5 1 . . . 5 5 6 7 8 82 9 5 . . . 2 0 0 6 6 61 3 5 . . . 1 5 0 2 1 1 0 8 7 . . . 0 7 9 1973—1 1 Il 1 . l . . * . . 3 3 3 7 5 6 6 3 5. . .6 7 9 1 1 1 1 3 4 . . 7 7 6 6 7 7 . . 5 9 4 4 7 5 . . 2 8 2 2 5 0 1 4 . . 0 2 l Structures of five or more units. i Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. sta N nd o i t n e g .— ” t B a a b s l e e d a b o o n v e d . ata from same source as for “Mortgage Debt Out­ Note.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 REAL ESTATE CREDIT □ MAY 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 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 196 9 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 197 0 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 197 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) Nonfarm 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 1 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.'.................................. 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

MAY 1974 □ REAL ESTATE CREDIT A 47 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount Period o N f u l m oa b n e s r ( c m o ( i d m l o l m i l o la i n t r s t s e ) 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 / u m r 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 (p a t p e io r it 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) Members’ Period va A n d c ­ es R m e e p n a ts y­ d ( e en p d o si o ts f Period h N o e m w e Home FHA- VA- Con­ Total t S e h 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 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 1 1 9 9 7 7 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 9 1 , , 4 36 6 9 4 8 8 , , 4 5 2 48 3 2 2 6 8, , 2 5 4 9 8 4 2 20 3 6 2 , , 1 1 8 0 2 4 15,4 2 0 9 0 ,713 13,474 2 1 0 7 2 7 , , 3 3 9 0 1 8 1973— A M p a r r . . . . . . . . . . . . . . . . . . . . . . . . . 1,1 7 8 6 7 4 2 1 8 7 8 8 9 8 , , 4 42 2 1 9 2 3 , , 9 4 7 5 5 0 5 5, , 9 4 7 4 9 6 1 1, , 1 2 4 9 2 0 May........... 916 189 10,156 3,428 6,728 1,261 1973—Jan.... 3,698 589 1,968 207,926 29,056 178,870 June........... 1,093 104 11,145 4,016 7,129 1,453 Feb.... 3,706 614 2,017 210,054 29,219 180,835 July............ 1,373 153 12,365 4,583 7,782 1,183 Mar... 4,985 886 2,683 213,050 29,505 183,545 Aug............ 1,380 235 13,510 4,737 8,773 1,091 Apr.... 4,984 885 2,760 216,037 29,636 186,401 Sept............ 999 212 14,298 4,834 9,464 1,178 May... 5,471 930 3,137 219,283 29,742 189,541 Oct............. 728 226 14,799 4,805 9,994 1,264 June.. 5,732 902 3,465 222,580 29,823 192,757 Nov............ 295 228 14,866 4,669 10,197 1,538 July... 5,054 850 3,076 225,265 29,707 195,558 Dec............. 529 248 15,147 4,583 10,564 1,744 Aug.. . 4,966 800 3,056 227,778 29,704 198,074 Sept... 3,174 571 1,836 229,182 30,066 199,116 1974—Jan............. 426 385 15,188 4,486 10,702 1,602 Oct__ 2,786 532 1,547 230,195 29,759 200,436 Feb............. 322 607 14,904 4,304 10,600 1,935 Nov... 2,379 448 1,365 231,089 29,724 201,365 Mar............ 640 548 2,027 Dec.. . 2,529 425 1,338 232,104 29,713 202,391 1974—Jan.*.. 2,353 387 1,306 233,027 29,713 203,314 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. Note.—FHLBB data. 2 Includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 REAL ESTATE CREDIT □ MAY 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 E pe n r d io o d f 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 ( p e d ­ e s u r r io in d S g ) ales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Date of auction Offer M e a d m or o t c g u e a n A p g t c s t e e ­ d A c ( m o s t v y e h e m i e r e n o r m l m a t r d s g t i ) ­ e t­ Offe M a re m o d r o t u g c a n e g t A s p e c te ­ d A c ( m o s v y te h e m i e r e n o r m l m a t r d s g t i ) ­ e t­ 1968. 7,167 5,122 2,046 1,944 2,696 1,287 In millions of In In millions of In 1969. 10,945 7,676 3.269 4,120 6,630 3,539 dollars per cent dollars per cent 1970. 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—July 9.... 539.3 244.8 8.38 108.4 72.5 8.67 1973. 24.175 16.852 6.352 6,127 71 8,914 7.889 23.... 351.4 181.4 8.54 119.0 61.7 8.79 1973-Mar. 20,571 15,201 5,259 522 933 8,139 Aug. 6.... 458.5 201.9 8.71 154.3 77.4 8.98 A M p a r y . 2 2 0 1 . , 7 0 9 8 1 7 1 15 5 , , 5 3 8 9 1 0 5 5 . . 2 33 6 5 9 4 3 7 55 2 1 1 , , 2 1 1 8 1 0 9 8 , , 3 7 1 42 2 20... 525.0 223.8 8.95 171.3 77.2 9.27 June 21,413 15,768 5,411 516 1,191 9,778 Sept. 4... 551.0 288.9 9.27 118.6 61.5 9.53 July. 21,772 15,877 5,574 516 1,102 9,859 17. . . 138.1 107.9 9.37 48.6 46.8 9.68 Aug. 22,319 16,085 5,761 699 1,019 9,809 Sept. 22,831 16,293 5,937 633 724 9,602 Oct. 1 . . . 32.5 24.1 9.11 9.1 7.1 9.43 Oct.. 23,348 16,510 6,101 659 264 8,918 15. . . 24.8 16.6 8.97 18.6 16.2 9.10 Nov. 23,912 16,734 6,294 656 200 8,690 29. . . 28.2 21.6 8.94 17.4 9.4 9.01 Dec. 24.175 16.852 6.352 410 158 7.889 Nov. 12. . . 29.3 23.1 8.87 24.1 16.7 8.94 1974-Jan.. 24,424 17,008 6,348 350 110 6,715 26. . . 24.9 20.9 8.81 31.0 22.1 8.90 Feb. 24,529 17,050 6.336 242 489 6,768 Mar. 24,875 17.315 6,340 462 1,646 7,913 Dec. 17.... 38.6 36.2 8.78 51.4 32.2 8.82 1974—Jan. 14. . . 40.2 35.6 8.71 48.9 34.5 8.77 Note.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Feb. 11.... 50.4 49.5 8.53 48.4 48.1 8.69 Mortgage holdings include loans used to back bond issues guaranteed by Feb. 25. . . 58.0 42.3 8.43 48.6 39.4 8.50 GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to Mar. 11 . . . 351.1 285.3 8.44 74.2 50.1 8.47 4-family loan commitments accepted in FNMA’s free market auction 25. . . 1,154.7 332.5 8.62 126.3 34.2 8.64 system, and through the FNMA-GNMA Tandem Plan (Program 18). Apr. 8. . . 1,061.4 267.0 8.95 163.9 63.3 9.00 22. . . 333.6 168.5 9. 18 80.3 40.9 9.21 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 sured 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 er r a i i d o n e d g st O i a n n u g d t ­ 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

MAY 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 o e m w 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 1968....................... 6.97 7.03 7.12 7.21 1966............ 7,320 1,729 4,366 583 641 2,600 980 1,618 1969....................... 7.81 7.82 7.99 8.29 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1970....................... 8.44 8.35 8.52 9.03 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1971....................... 7.74 7.67 7.75 7.70 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1972....................... 7.60 7.52 7.64 7.52 1973....................... 7.95 8.01 8.30 8.19 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—Apr............. 7.71 7.70 7.90 7.73 1972............ 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 May............ 7.71 7.77 7.95 7.79 1973............ 7,591 1,675 2,798 2,286 832 7,416 2,313 5,103 June............ 7.79 7.79 8.05 7.89 July............ 7.87 7.84 8.40 8.19 1973—Feb.. 710 162 235 262 52 592 187 405 Aug............. 7.94 8.01 8.85 Mar.. 969 195 268 440 65 596 185 411 Sept............ 8.17 8.26 8.95 9.18 Apr.. 620 151 223 172 74 621 187 434 Oct.............. 8.31 8.50 8.80 8.97 May. 589 158 228 122 81 634 198 436 Nov............ 8.39 8.58 8.75 8.86 June. 650 153 229 207 61 646 182 464 Dec............. 8.49 8.61 8.75 8,78 July.. 559 143 250 100 66 666 204 462 Aug.. 537 100 195 167 75 565 193 372 1974_jan c 8.52 8.64 8.65 Sept.. 485 90 177 134 84 565 184 381 Feb.c......... 8.62 8.70 8.55 8.54 Oct... 556 113 246 126 72 652 221 431 Mar.r......... 8.64 8.63 8.60 8.66 Nov.. 623 100 257 190 76 725 216 509 Apr p......... 8.67 8.59 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, hot 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 ort 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 o 9 r 0 m da o y r s e End of period Con­ Made Out­ 1965............... 3.29 2.40 .55 .34 .40 Total FH VA A- ti v o e n n a ­ l c P ha u s r e ­ s Sales d p u er r i i o n d g st i a n n g 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 1970.................. 325 325 325 1969............... 3.22 2.43 .52 .27 .27 1971.................. 968 821 147 778 64 182 1,789 1,503 286 1,298 408 1,606 198 1970............... 3.64 2.67 .61 .36 .33 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—Mar........ 1,718 1,589 128 119 68 141 295 Apr......... 1,784 1,646 138 126 51 193 343 1971—11......... 3.27 2.36 .53 .38 .38 May........ 1,906 1,695 211 147 17 187 344 Ill........ 3.59 2.54 .62 .43 .41 2,029 1,716 313 154 21 159 316 IV........ 3.93 2.82 .65 .46 .46 July........ 2,158 1,714 444 140 139 278 Aug......... 2,307 1,728 579 161 208 291 1972—1.......... 3.16 2.21 .58 .37 .50 Sept........ 2,423 1,729 694 126 143 288 II........ 3.27 2.38 .53 .36 .48 Oct......... 2,527 1,742 785 113 63 218 Ill........ 3.82 2.74 .65 .43 .52 Nov........ 2,565 1,746 819 46 45 207 IV 1... J \4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . . 7 7 9 8 . . 4 4 6 5 . . 5 48 0 Dec......... 2,604 1,743 861 50 2 43 186 1974—Jan......... 2,621 1,736 885 34 8 26 161 1973—1.......... 3.63 2.52 .68 .43 Feb......... 2,625 1,730 895 21 6 49 185 II 3.84 2.81 .64 .39 Mar........ 2,638 1,724 914 29 2 595 748 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, i 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 □ MAY 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—Mar.............................. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 Apr............................... 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 9,747 May............................. 164,277 133,531 47,518 41,096 6,541 38,376 30,746 12,817 8,319 9,610 June............................. 167,083 136,018 48,549 41,853 6,688 38,928 31,065 12,990 8,555 9,520 July............................... 169,148 138,212 49,352 42,575 6,845 39,440 30,936 12,968 8,479 9,489 Aug............................... 171,978 140,810 50,232 43,505 7,009 40,064 31,168 13,111 8,605 9,452 Sept.............................. 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 8,335 9,519 Oct................................ 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 8,590 9,495 Nov.............................. 176,969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 8,785 9,623 Dec............................... 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 9,829 9,979 1974—Jan................................ 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 Mar.............................. 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 7,939 10,677 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “Other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 Note.—Consumer credit estimates cover loans to individuals for house- and Bulletins for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets 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- 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 15,017 133,531 118,165 63,707 33,859 17,832 2,767 15,366 284 15,082 136,018 120,450 64,999 34,367 18,269 2,815 15,568 289 15,279 138,212 122,479 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 Feb................................................... 145,927 128,807 69,246 37,148 19,430 2,983 17,120 293 16,827 145,768 128,799 69,232 37,005 19,550 3,012 16,969 292 16,677 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

MAY 1974 □ 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 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 5,006 196 5 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 196 6 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 196 7 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 196 8 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 196 9 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 174 12,485 197 0 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 197 1 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 197 2 59,783 16,320 10,776 5,786 5,288 5,122 3,544 12,947 32,088 10,174 2,916 3,589 497 14,912 197 3 69.495 19.038 12,218 7,223 6,649 6,054 3.982 14.331 37.243 11.927 3.378 4.434 917 16.587 1973—Mar.. 61,388 16,951 11,216 6,035 5,243 5,289 3,538 13,116 32,750 10,4l9 2,943 3,796 581 15,011 Apr.. 62,459 17,327 11,436 6,163 5,290 5,401 3,581 13,261 33,078 10,617 2,991 3,831 611 15,028 May. 63,707 17,716 11,680 6,321 5,360 5,538 3,635 13,457 33,859 10,872 3,025 3,985 656 15,321 June. 64,999 18,138 11,866 6,473 5,502 5,688 3,700 13,632 34,367 11,121 3,081 4,002 694 15,469 July. 66,065 18,439 12,023 6,629 5,603 5,815 3,774 13,782 35,020 11,365 3,132 4,103 733 15,687 Aug.. 67,381 18,771 12,190 6,825 5,792 5,923 3,863 14,017 35,634 11,583 3,187 4,194 771 15,899 Sept. 67,918 18,886 12,160 6,956 5,909 5,978 3,903 14,126 35,993 11,721 3,235 4,265 809 15,963 Oct.. 68,627 19,123 12,262 7,106 5,991 6,012 3,950 14,183 36,365 11,859 3,269 4,316 847 16,074 Nov.. 69,161 19,198 12,306 7,208 6,171 6,035 3,979 14,264 36,887 11,949 3,310 4,371 886 16,371 Dec.. 69.495 19.038 12,218 7,223 6,649 6,054 3.982 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 Mar. 69,232 18,775 11,985 7,333 6,667 6,082 3,958 14,432 37,005 11,624 3,324 4,497 1,018 16,542 1 Finance companies consist of those institutions formerly classified as See also Note to table at top of preceding page. sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other payment Charge accounts Auto­ con­ Home Per­ loans End of period Total mobile sumer improve­ sonal paper goods ment loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards 1 1940................................ 188 36 7 13 132 banks insti­ 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 1960.. 13,173 3,884 623 4.893 436 3,337 1968................................ 11,717 4,238 771 1,215 5,493 1969................................ 13,722 4,941 951 1,443 6,387 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 1970.. 25.099 8,469 1,206 6,163 1,805 7,456 1973—Mar..................... 20,052 6,752 1,732 2,209 9,359 1971.. 27.099 9,316 1,269 6,397 1,953 8,164 Apr...................... 20,190 6,820 1,748 2,216 9,406 1972.. 30,232 10,857 1,399 7,055 1,947 8,974 May..................... 20,599 6,966 1,785 2,250 9,598 1973.. 33.049 11.753 1.488 7.783 2.046 9.979 June..................... 21,084 7,135 1,828 2,294 9,827 July..................... 21,394 7,232 1,853 2,338 9,971 1973—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,§42 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 Mar..................... 22,562 7,634 1,956 2,454 10,518 Dec__ 33.049 11.753 1.488 7.783 2.046 9.979 1974—Jan.... 32,111 11,652 1,465 6.894 1,981 10,119 lan N eo o u t s e .— len O d t e h rs e . r M fi i n s 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 ­ ­ F M e a b r . . . . . . . 3 3 1 1 , , 8 5 0 95 4 1 1 1 1 , , 6 6 8 6 6 3 1 1 , , 4 5 9 0 6 2 6 6 , , 0 1 9 3 7 6 1 1 , ,8 8 4 8 2 2 1 1 0 0 , , 6 4 7 1 7 8 tions and mutual savings banks. i Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included in estimates of instalment credit outstanding. See also Note to table at top of preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 CONSUMER CREDIT □ MAY 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.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 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—Mar.............................. 13,852 13,681 4,001 4,164 5,349 5,169 406 377 4,096 3,971 Apr............................... 13,465 13,661 3,822 4,101 5,563 5,378 365 372 3,715 3,810 May............................. 13,932 14,792 3,989 4,409 5,504 5,698 374 431 4,065 4,254 June............................. 13,646 14,608 3,762 4,313 5,505 5,678 400 450 3,979 4,167 July.............................. 14,542 14,812 3,930 4,177 5,943 5,753 433 472 4,236 4,410 Aug............................... 14,294 15,099 3,968 4,252 5,961 6,065 408 471 3,957 4,311 Sept.............................. 13,691 12,624 3,939 3,476 5,537 5,217 410 420 3,805 3,511 Oct................................ 14,149 14,454 3,912 4,196 5,911 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 Mar.............................. 13,823 13,246 3,484 3,546 5,933 5,479 424 389 3,982 3,832 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—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 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 12,332 11,341 3,406 3,151 5,072 4,703 322 309 3,532 3,178 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 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 13,206 13,405 3,544 3,622 5,596 5,724 308 302 3,758 3,757 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—Mar.............................. 2,044 1,416 776 793 594 156 120 89 554 378 Apr............................... 1,404 1,647 604 868 600 490 71 80 129 209 May............................. 1,991 2,509 728 1,040 587 655 84 133 592 681 June............................. 1,612 2,487 509 1,031 550 757 100 147 453 552 July.............................. 1,998 2,194 596 803 802 722 125 157 475 512 Aug.............................. 1,895 2,598 675 880 793 930 110 164 317 624 Sept.............................. 1,359 1,283 533 325 465 514 88 111 273 333 Oct................................ 1,700 1,517 485 535 762 613 107 115 346 254 Nov.............................. 1,726 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 Mar.............................. 617 -159 -60 -76 337 -245 116 87 224 75 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

MAY 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 N.S.A. 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—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 Mar.. 13,823 13,246 5,710 5,612 3,497 3,367 1,976 1,920 2,640 2,347 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—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 Mar.. 13,206 13,405 5,479 5,626 3,452 3,510 1,827 1,771 2,448 2,498 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—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 Mar.. 617 -159 231 -14 45 -143 149 149 192 -151 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. □ MAY 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro­ aver- Grouping p ti o o r n ­ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.’ Feb.1 Mar.* Apr.e Total index.................................. 100.0 125.6 124.1 124.8 125.6 126.7 126.5 126.8 127.0 127.5 126.5 125.4 124.6 124.2 124.7 Products, total.................................. 62.21 123.4 122.0 122.9 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.9 122.2 121.9 122.3 Final products............................... 48.95 121.3 120.0 120. 121.3 122.1 121.4 122.4 122.7 123.7 122.6 121.2 120.3 120.3 121.0 Consumer goods....................... 28.53 131.7 130.9 131.8 131.9 132.8 131.2 132.3 132.6 133.5 131.3 129.2 127.8 127.4 128.3 Equipment................................ 20.42 106.7 104.7 105.7 106.6 107.3 107.6 108.5 108.9 110.1 110.1 109.8 110.0 110.4 110.7 Intermediate products................. 13.26 131.1 129.3 130.5 132.0 132.5 132.1 131.0 130.6 131.1 129.1 129.2 128.7 127.5 127.2 Materials........................................... 37.79 129.3 127.7 128.3 129.0 130.9 130.9 131.3 131.1 131.5 130.7 129.7 128.3 128.2 128.6 Consumer goods Durable consumer goods.................. 7.86 139.0 140.5 141.5 141.8 142.4 134.0 138.2 137.3 138.5 134.6 128.2 126.3 127.2 129.7 Automotive products................... 2.84 136.8 141.7 142.6 142.6 141.7 121.1 129.8 131.4 133.7 120.6 108.0 104.9 104.3 111.0 Autos......................................... 1.87 125.4 128.1 129.8 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 Auto parts and allied goods... .97 158.9 167.5 167.0 161.9 156.7 154.2 151.8 148.4 150.9 147.8 142.6 140.5 138.8 136.4 Home goods..................................... 5.02 140.3 139.8 140.9 141.3 142.9 141.1 142.9 140.9 141.2 142.5 139.6 138.6 140.1 140.4 Appliances, TV, and radios........ 1.41 144.8 149.7 148.0 147.2 147.8 146.3 149.4 143.4 140.4 147.9 138.4 133.4 135.9 Appliances and A/C............ .92 156.9 157.6 157.8 154.1 156.0 153.3 159.8 159.3 154.7 172.2 153.9 150.5 150.1 TV and home audio............. .49 Carpeting and furniture.............. 1.08 150.0 146.7 147.8 148.9 155.4 154.2 153.3 153.9 152.7 150.1 153.5 153.3 154.2 Misc. home goods....................... 2.53 133.6 131.4 134.0 134.7 134.7 132.9 134.8 134.1 136.8 136.3 134.4 135.5 136.5 136.4 Nondurable consumer goods............. 20.67 129.0 127.2 128.0 128.1 129.1 130.2 130.1 130.8 131.5 130.2 129.5 128.3 127.5 127.9 Clothing........................................ 4.32 116.0 114.5 114.2 116.0 116.5 117.0 118.0 116.8 117.3 120.3 116.3 112.0 Consumer staples.......................... 16.34 132.4 130.6 131.7 131.4 132.5 133.6 133.2 134.5 135.2 132.8 133.0 132.7 U2.2 133.0 Consumer foods and tobacco.. 8.37 122.2 121.0 120.9 119.6 121.3 121.9 122.2 123.3 126.5 125.0 126.9 125.9 124.7 124.9 Nonfood staples........................ 7.98 143.1 140.7 143.1 143.7 144.1 145.8 144.8 146.2 144.3 141.1 139.4 139.6 140.0 141.4 Consumer chemical products 2.64 153.3 151.5 154.9 153.5 153.0 155.6 153.4 156.2 154.9 156.7 157.8 159.0 160.1 Consumer paper products..., 1.91 121.3 119.0 121.7 121.7 122.5 124.1 124.4 122.5 123.6 120.5 119.4 117.4 116.4 Consumer fuel and lighting., 3.43 147.5 144.4 145.6 148.2 149.2 150.4 149.7 151.9 147.8 140.7 136.7 137.2 137.8 Residential utilities............ 2.25 156.8 152.3 152.1 155.4 157.8 160.0 160.9 161.9 158.0 149.8 145.6 148.6 147.9 Equipment Business equipment............................ 12.74 122.6 119.6 121.3 122.5 123.0 124.6 125.8 126.2 127. 126.9 126.8 127.3 127.9 128.6 Industrial equipment.................... 6.77 120.1 117.4 119.1 119.8 120.5 122.5 124.1 124.5 125.6 124.9 125.3 126.5 127.3 128.5 Building and mining equip........ 1.45 120.4 118.1 118.8 119.1 119.6 123.0 123.7 124.7 126.0 126.0 128.5 130.3 132.0 133.5 Manufacturing equipment........ 3.85 113.0 109.4 112.0 113.1 113.9 115.1 117.3 117.3 118.2 118.5 119.3 120.4 120.9 122.2 Power equipment....................... 1.47 138.5 137.6 138.2 138.3 138.5 141.0 142.3 143.0 144.6 140.3 138.0 138.7 139.2 140.3 Commercial, transit, farm eq........ 5.97 125.5 122.2 123.7 125.4 125.8 127.0 127.7 128.1 130.3 129.2 128.5 128.2 128.5 128.7 Commercial equipment............. 3.30 135.0 131.3 131.6 134.1 135.9 137.0 138.2 140.1 141.3 139.3 139.8 140.0 141.0 140.2 Transit equipment..................... 2.00 109.8 107.5 109.8 109.7 109.0 108.4 109.6 109.8 111.4 111.1 109.5 109.3 109.0 109.2 Farm equipment........................ .67 125.1 120.9 126.5 129.3 126.4 132.8 129.4 123.5 132.4 133.4 129.2 126.0 124.9 Defense and space equipment........... 7.68 80.2 80.0 79.7 80.1 81.1 79.7 79.8 80.0 80.9 81.9 81.4 81.4 81.3 80.9 Military products.......................... 5.15 80.3 81.0 80.1 80.0 81.1 79.0 79.1 79.3 80.0 81.3 80.6 81.0 81.1 80.1 Intermediate products Construction products...................... 5.93 134.2 132.2 132.2 135.9 134.5 135.3 134.9 134.3 133.7 131.1 133.0 131.4 129.0 129.0 Misc. intermediate products............ 7.34 128.6 127.0 129.2 128.9 132.7 129.6 128.1 127.5 129.0 127.4 126.3 126.5 126.2 Materials Durable goods materials.................... 20.91 130.1 127.9 128.6 129.2 131.7 131.8 132.3 132.2 133.0 132.7 129.8 127.7 126.9 127.9 Consumer durable parts............... 4.75 127.8 129.0 125.7 128.8 126.9 128.6 129.9 128.2 128.4 121.0 113.0 110.1 106.0 109.0 Equipment parts............................ 5.41 119.3 113.8 118.0 118.2 124.5 122.3 122.1 122.7 125.8 125.3 123.9 122.6 123.1 122.2 Durable materials nec.................. 10.75 136.5 134.7 135.3 134.9 137.6 138.0 138.7 139.0 138.7 141.6 140.0 138.0 137.8 139.0 Nondurable goods materials............... 13.99 129.1 128.5 128.9 129.4 130.4 130.6 130.3 130.1 130.7 129.2 131.1 130.5 131.5 131.5 Textile, paper, and chem. mat..., 8.58 139.8 138.8 139.4 140.2 142.2 142.4 141.9 141.4 142.4 140.1 143.4 141.4 142.5 143.4 Nondurable materials n.e.c.......... 5.41 112.2 112.2 112.3 112.3 112.1 111.7 112.0 112.3 112.1 111.9 111.7 113.1 113.9 112.7 Fuel and power, industrial............... 2.89 123.9 122.1 122.9 125.3 126.9 126.3 128.3 126.9 124.9 123.1 121.5 122.6 121.2 120.8 Supplementary groups Home goods and clothing............... 9.34 129.0 128.1 128.6 129.7 130.7 130.0 131.3 129.8 130.2 132.4 128.8 126.3 126.1 125.9 Containers........................................ 1.82 139.9 139.1 138.0 141.4 135.1 140.5 139.8 141.2 142.3 141.0 148.4 144.5 151.5 Gross value of products in market structure (In billions of 1963 dollars) Products, total............................. 286.3 449. 446.2 449.7 451.8 452.9 446.2 449.8 452.6 456.9 449.1 445.4 441.0 441.4 444.0 Final products........................ 221.4 346.1 343.7 346.6 347.8 347.7 341.9 346.3 349.7 353.3 346.9 342.5 338.9 340.1 343.4 Consumer goods................ 156.3 239.7 238.9 241.1 241.3 241.0 235.4 239.0 241.7 243.6 237.8 233.6 229.7 230.2 233.9 Equipment........................... 65.3 106.4 104.8 105.6 106.6 106.6 106.6 107.3 108.0 109.5 109.0 108.9 109.2 109.6 109.6 Intermediate products............ 64.9 103.7 102.3 103.1 104.3 104.8 104.6 103.5 103.1 103.6 102.5 130.1 102.3 101.4 100.9 For Note see p. A-55. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 * Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.1 Feb.r Mar.* Apr.* Manufacturing...................................... 88.55 125.2 123.8 124.9 125.6 126.5 126.1 126.3 126.4 127.4 126.4 125.3 124.2 124.2 124.7 Durable............................................ 52.33 122.1 120.6 121.8 123.0 123.8 122.6 123.3 123.5 124.3 123.1 121 119.6 120.0 121.1 Nondurable...................................... 36.22 129.6 128.4 129.3 129.3 130.5 130.9 130.7 130.4 131.3 131.2 131.4 131.0 130.5 130.2 Mining and utilities............................. 11.45 128.9 126.6 127.0 128.2 130.4 130.7 131.3 131.5 130.6 126.9 125.4 126.3 125.8 125.9 Mining.............................................. 6.37 110.2 109.0 109.1 109.5 111.0 111.5 111.8 111.9 111.3 110.4 109.9 110 111.2 110.8 5.08 152.3 148.7 149.5 151.5 154.8 154.8 155.8 156.2 154.6 147.6 144.9 146.1 144.3 144.9 Durable manufactures Primary and fabricated metals............ 12.55 128.8 127.3 128.1 128.7 ,130.6 129.5 129.5 130.6 131.0 130.5 130.4 128.1 128.6 129.2 Primary metals................................. 6.61 127.1 125.8 126.1 124.5 128.1 125.6 127.8 128.7 128.9 130.7 129.5 125.6 125.7 126.3 Iron and steel, subtotal................ 4.23 121.6 119.7 119.8 119.9 120.9 118.5 122.7 123.6 124.2 127.7 125.5 119.4 119.4 120.3 Fabricated metal products.............. 5.94 130.7 128.9 130.3 133.4 133.5 133.8 131.5 132.4 133.1 130.0 131.4 130.9 131.8 132.3 Machinery and allied goods................. 32.44 117.3 115.7 117.3 118.8 119.3 117.7 118.9 118.9 119.9 118.6 115.2 113. 114.6 115.8 Machinery......................................... 17.39 125.9 122.6 124.7 126.9 127.6 128.5 130.0 129.2 130.4 130.9 128.6 127.4 128.4 129.2 Nonelectrical machinery.............. 9.17 125.1 121.5 124.0 126.1 127.1 128.9 130.0 130.0 130.3 130.2 129.4 128.1 129.8 131.0 Electrical machinery.................... 8.22 126.8 123.8 125.4 127.8 128.0 128.2 129.8 128.5 130.5 131.6 127.7 126.5 126.9 127.1 Transportation equipment.............. 9.29 109.2 110.0 111.0 112.2 112.1 105.7 107.3 108.8 109.8 103.0 95.7 93.4 93.9 97.0 Motor vehicles and parts............ 4.56 138.1 140.1 140.9 143.3 144.1 131.0 133.9 136.4 137.8 124.6 112.7 109.2 110.0 116.5 Aerospace and misc. trans. eq... 4.73 81.4 81.1 82.2 82.2 81.3 81.3 81.7 82.3 82.9 82.2 79.3 78.3 78.4 78.2 Instruments....................................... 2.07 138.4 134.7 138.9 140.2 140.8 140.9 141.5 141.0 142.6 142.7 143.0 143.4 143.5 143.5 Ordnance, private and Govt........... 3.69 85.4 86.4 85.4 86.7 86.7 83.8 83.7 83.8 84.3 86.1 85.2 85.3 85.6 84.5 Lumber,clay, and glass....................... 4.44 129.5 129.9 130.3 129.2 129.8 129.2 128.8 129.7 129.3 127.8 129.7 127.5 128.5 128.2 Lumber and products..................... 1.65 128.9 129.1 127.5 126.6 125.4 128.4 128.9 127.4 127.3 126.3 126.1 127.1 127.2 Clay, glass, and stone products.... 2.79 129.9 130.4 132.0 130.5 132.3 129.6 128.8 131.2 130.4 128.7 131.8 127.7 129.2 Furniture and miscellaneous................. 2.90 135.2 133.1 136.0 135.4 135.9 137.5 138.2 136.1 136.4 135.3 133.4 136.3 136.9 136.4 Furniture and fixtures..................... 1.38 126.3 123.8 126.5 126.5 127.5 129.5 130.4 128.8 127.9 124.9 124.2 125.4 126.8 Miscellaneous manufactures........... 1.52 143.3 141.6 144.5 143.6 143.5 144.9 145.3 142.9 144.3 144.5 141.8 146.2 146.0 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 114.7 114.0 113.3 115.0 114.5 115.4 117.5 116.8 116.7 118.8 116.2 114.5 112.9 112.0 Textile mill products....................... 2.69 127.1 126.1 127.2 129.2 128.9 129.0 130.2 130.2 129.4 130.9 128.4 126.9 125.8 Apparel products............................. 3.33 112.9 111.7 110.0 111.0 112.1 113.6 115.4 114.9 115.3 118.5 116.4 113.6 Leather and products...................... .88 83.6 86.8 83.0 86.6 79.2 81.0 86.4 83.1 82.9 82.9 77.6 79.9 82.3 Paper and printing............................... 7.92 122.1 120.8 122.0 122.8 123.8 124.5 122.1 121.3 121.9 121.2 121.7 120.7 120.6 120.1 Paper and products......................... 3.18 135.4 133.6 135.1 134.6 135.3 137.0 134.8 135.3 136.2 136.7 138.7 137.7 140.2 Printing and publishing................... 4.74 113.2 112.2 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 110.4 109.3 107.5 106.5 Chemicals, petroleum, and rubber.... 11.92 149.3 147.9 150.2 149.8 151.8 151.0 150.9 151.1 151.6 151.6 151.5 151.1 151.0 151.0 Chemicals and products.................. 7.86 150.1 147.8 150.2 150.4 152.0 151.4 153.0 152.7 153.0 154.5 154.9 155.2 155.0 154.5 Petroleum products......................... 1.80 127.4 126.9 128.5 129.7 129.3 128.2 126.0 130.4 129.5 125.5 120.5 116.9 117.7 118.0 Rubber and plastics products......... 2.26 164.0 165.1 166.8 163.9 168.8 167.9 163.6 161.9 164.5 162.3 164.3 163.5 164.0 9.48 121.9 120.7 121.5 119.5 121.3 122.0 122.2 121.7 124.7 123.0 125.4 126.0 125.6 126.0 Foods................................................ 8.81 122.7 121.3 122.4 120.3 122.4 122.9 123.2 122.4 125.4 124.5 126.3 127.2 126.7 127.1 Tobacco products............................ .67 111.6 112.9 111.2 108.1 105.3 110.1 109.1 113.7 115.8 104.2 113.3 112.1 Mining Metal, stone, and earth minerals......... 1.26 118.1 116.8 116.2 111.8 116.9 120.6 120.4 120.9 121.3 122.0 121.4 120.1 119.4 118.5 Metal mining................................... .51 130.8 128.5 127.0 121.6 128.4 131.4 136.6 138.3 135.2 135.2 135.2 132.6 132.2 Stone and earth minerals................ .75 109.5 108.8 108.8 105.2 109.1 113.1 109.5 109.2 111.7 113.1 111.9 111.6 110.7 5.11 108.3 107.1 107.3 108.9 109.5 109.2 109.5 109.7 108.8 107.5 107.0 108.1 109.2 108.9 Coal.................................................. .69 103.6 99.9 100.9 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.7 114.1 110.6 Oil and gas extraction..................... 4.42 109.0 108.3 108.4 109.1 109.5 110.0 109.7 110.8 109.6 107.0 106.8 107.4 108.5 108.6 Utilities Electric................................................. 3.91 160.7 156.2 156.8 159.7 164.0 163.8 165.1 165.3 163.4 155.6 153.0 154.6 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 □ MAY 1974 SELECTED BUSINESS INDEXES (1967“ 100, except as noted) Industrial production Manu­ Prices « facturing 2 In­ Ca­ Market dustry pacity Con­ N ri o c n u a l- g utiliza­ Period Total Total Fin P a r l oducts Inter­ Mate­ f M ac a t n u u r­ ­ i o t n i ( u o 1 m t 9 n p f 6 u 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 — ­ i p m E lo m en 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 W c s o a h m l o e l ­ e­ Con­ mediate rials ing = 100) modity Total sumerEquip­ goods ment 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90,7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 '78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 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—Mar. 123.7 121.7 119.6 130.8 104.1 129.4 127.0 123.4 582.8 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr., 124.1 122.0 120.0 130.9 104.7 129.3 127.7 123.8 177.0 114.0 101.5 144.8 157 130.7 130.7 May, 124.8 122.9 120.8 131.8 105.7 130.5 128.3 124.9 '83.3 173.0 114.4 101.7 144.9 159 131.5 133.4 June, 125.6 123.7 121.3 131.9 106.6 132.0 129.0 125.6 183.0 114.7 102.1 145.3 157 132.4 136.7 July. 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 175.0 114.6 101.8 146.3 163 132.7 134.7 Aug. 126.5 123.7 121.4 131.2 107.6 132.1 130.9 126.1 83.3 199.0 115.0 102.1 146.7 162 135.1 142.9 Sept. 126.8 124.3 122.4 132.3 108.5 131.0 131.3 126.3 182.0 115.3 102.1 149.8 163 135.5 140.2 Oct.. 127.0 124.3 122.7 132.6 108.9 130.6 131.1 126.4 191.0 116.0 102.9 151.7 164 136.6 139.5 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., 126.5 124.0 122.6 131.3 110.1 129.1 130.7 126.4 161.0 116.4 103.2 153.7 161 138.5 145.3 1974—Jan.. 125,4 r122.9 rl 21.2 129.2 '109.8 r129.2 r129.7 '125.3 155.0 116.2 102.6 151.6 164 139.7 150.4 Feb., r124.6 r122.2 -•120.3 '127.8 110.0 r128.7 '128.3 '124.2 '80.4 187.0 116.6 '101.8 '151.1 165 141.5 152.7 Mar. r124.2 '121.9 r120.3 '127.4 '110.4 '127.5 '128.2 '124.2 181.0 '116.6 '101.5 '150.7 167 134.1 154.5 Apr., 124.7 122.3 121.0 128.3 110.7 127.2 128.6 124.7 116.8 102.0 148.3 170 155.3 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. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total construction i......................... 90,979101,071 6,423 8,814 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911 By type of ownership: Public........................................ 24,043 26,686 1,629 2,071 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481 Private *.................................... 66,936 73,385 4,793 6,743 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430 By type of construction: Residential building 1.............. 44,975 46,246 3,115 4,512 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374 Nonresidential building........... 27,021 31,761 2,189 2,634 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752 Nonbuilding............................. 18,983 22,064 1,119 1,668 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785 Private housing units authorized... 2,219 1,796 2,399 1,939 1,838 2,030 1,780 1,750 1,596 1,316 1,314 1,237 1,301 1,333 1,421 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, McGraw-Hill Informations Systems Company, F.W. Dodge Division. some totals are not strictly comparable with those prior to 1968. To im­ Totals of monthly data exceed annual totals because adjustments— prove comparability, earlier levels may be raised by approximately 3 per negative—are made in accumulated monthly data after original figures cent for total and private construction, in each case, and by 8 per cent for have been published. residential building. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems; 1971 data are for Note.—Dollar value of construction contracts as reported by the 13,000 reporting areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 o CONSTRUCTION A 57 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v a t n e io d lo n p­ Other 2 Total In tr d i u al s­ m C e o r m cia ­ l b O u t i h l e d r ­ Other ment ings i 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.. 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. 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 June. 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.. 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.. 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... 135,871 102,388 56,458 45,930 6,573 15,561 5,883 17,913 33,483 1,032 2,330 Nov.. 134,831 101,922 54,667 47,255 6,742 16,139 6,035 18,339 32,909 1,040 Dec.. 133.370 99,611 52,728 46,883 7,057 15,685 6,089 18,052 33,759 1,128 1974-Jan... 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.R.) Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total 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 f - a m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1963.......................... 1,603 261 328 591 430 1,012 5!89 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—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 i 25 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 9 6 46 Nov............... 1,675 241 322 750 362 938 84 653 135 133 1 16 11 5 40 Dec............... 1,403 192 278 654 279 767 73 563 91 90 11 7 4 29 1974—Jan.'............. 1,464 258 330 650 226 793 89 582 86 85 2 19 13 7 29 Feb................ 1,862 270 390 874 328 1,042 85 735 108 107 22 15 7 30 Mar.*............ 1,460 191 324 613 332 943 91 426 124 122 2 28 20 8 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Digitized foVr eFteRraAnsS EARdm in, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 EMPLOYMENT □ MAY 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n ( o s o N t p t i a u t .S u l l t a . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce T ( l f S a o o b . r A t c o a e r . l ) 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 ­ U (p n e e m r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ 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—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 Apr................. 150,283 58,547 92,556 90,313 85,775 82,264 3,511 4,538 5.0 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract Transporta­ Period Total M t a u n ri u n f g ac­ Mining con ti s o tr n uc­ ti l o ic n u & til i p ti u e b s ­ Trade Finance Service G m ov e e n r t n­ 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 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......................................................... 75,567 19,820 625 3,648 4,611 16,288 4,053 12,866 13,657 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................................................ »76,526 20,006 654 3,636 4,684 16,417 4,109 13,136 r13,884 Feb............................................... 76,813 19,904 656 3,757 4,691 16,472 4,124 13,215 13,994 Mar.*............................................ 76,785 19,854 656 3,717 4,675 16,480 4,128 13,236 14,039 Apr.*............................................ 76,911 19,929 658 3,644 4,669 16,518 4,132 13,267 14,094 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 July.............................................. 75,384 19,729 644 3,934 4,653 16,262 4,113 12,982 13,067 Aug............................................... 75,686 20,018 648 3,981 4,659 16,279 4,121 13,009 12,971 Sept............................................... 76,238 20,132 641 3,944 4,671 16,367 4,082 12,982 13,419 Oct................................................ 76,914 20,168 640 3,923 4,680 16,515 4,076 13,057 13,855 Nov............................................... 77,322 20,202 643 3,822 4,659 16,780 4,079 13,096 14,041 Dec................................................ 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................................................ 75,792 19,738 641 3,329 4,616 16,127 4,087 13,056 14,198 Mar.*............................................ 76,100 19,731 643 3,397 4,633 16,180 4,103 13,143 14,270 Apr.*............................................ 76,678 19,785 652 3,513 4,636 16,398 4,120 13,294 14,280 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

MAY 1974 □ PRICES A 59 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow o n m e e r - - F a o n u i e d l l e G a l n e a d c s ­ n F i a n i n u s g h d r s ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O a o t n o h d d er s ship coal tricity opera­ care care recrea­ serv­ 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 1971......................... 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 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—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 r140.6 126.9 153.6 172.8 131.0 128.0 130.5 126.7 133.0 141.4 129.2 127.6 131.3 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 Mar............... 143.1 159.1 144.9 128.4 157.2 201.5 140.0 132.6 132.2 132.0 135.4 144.8 131.8 129.5 132.8 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro­ 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 a o e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c ls m . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n u r i y a d n ip ­ ­ ­ F t e u u t r r c e n . , i­ N t m m al o i l e n n i ­ c ­ ­ T e p t q r o io a u r n n i t p a s ­ ­ ­ n c M e e o l i l u s a ­ s ­ erals ment 1 ment 196 0 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 93.0 196 1 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 93.3 196 2 94.8 98.0 01.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 196 3 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 94.5 196 4 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 95.2 196 5 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 95.9 196 6 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 97.7 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 196 9 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 197 0 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 197 1 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 197 2 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 197 3 135.5 176.3 148.1 126.9 123.8 143.1 145.5 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 J 973—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 Apr., 155.3 186.2 159.1 150.1 137.5 145.4 234.0 132.3 129.4 200.2 144.4 161.2 130.8 122.9 146.7 119.4 128.2 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 NATIONAL PRODUCT AND INCOME □ MAY 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 I II III IV Ip Gross national product..................................... 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.21,289.11,242.51,272.01,304.51337.51,351.8 Final purchases.................................................. 101.4 57.2 120.1 278.0 922.5 972.61,049.41,149.1 1,281.1 1,287.81,267.51,299.81,319.41,344.0 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 579.5 617.6 667.2 726.5 804.0 779.4 795.6 816.0 825.2 844.6 Durable goods.............................................. 9.2 3.5 9.6 30.5 90.8 91.3 103.6 117.4 130.8 132.2 132.8 132.8 125.6 124.5 Nondurable goods........................................ 37.7 22.3 42.9 98.1 245.9 263.8 278.7 299.9 335.9 322.2 330.3 341.6 349.6 362.3 Services.......................................................... 30.3 20.1 28.1 62.4 242.7 262.6 284.9 309.2 337.3 325.0 332.6 341.6 350.0 357.8 Gross private domestic investment................... 16.2 1.4 17.9 54.1 139.0 136.3 153.2 178.3 202.1 194.5 198.2 202.0 213.9 201.8 Fixed investment........................................... 14.5 3.0 13.4 47.3 131.1 131.7 147.1 172.3 194.2 189.9 193.7 197.3 195.9 194.0 Nonresidential............................................ 10.6 2.4 9.5 27.9 98.5 100.6 104.4 118.2 136.2 130.9 134.1 138.0 141.8 144.4 Structures.............................................. 5.0 .9 2.9 9.2 34.2 36.1 37.9 41.7 48.4 45.3 47.2 49.5 51.7 54.3 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 64.3 64.4 66.5 76.5 87.8 85.5 86.9 88.6 90.1 90.1 Residential structures............................... 4.0 .6 3.9 19.4 32.6 31.2 42.7 54.0 58.0 59.0 59.6 59.2 54.0 49.5 Nonfarm................................................ 3.8 .5 3.7 18.6 32.0 30.7 42.2 53.5 57.4 58.4 59.1 58.6 53.4 48.9 Change in business inventories............. 1.7 -1.6 4.5 6.8 7.8 4.5 6.1 6.0 8.0 4.6 4.5 4.7 18.0 7.8 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 7.7 4.3 4.5 5.6 7.3 4.4 4.4 3.2 17.3 6.8 Net exports of goods and services................... 1.1 .4 1.3 1.8 1.9 3.6 .8 -4.6 5.8 .0 2.8 7.6 12.8 9.5 Exports.......................................................... 7.0 2.4 5.9 13.8 55.5| 62.9 66.3 73.5 102.0 89.7 97.2 104.5 116.4 125.9 Imports.......................................................... 5.9 2.0 4.6 12.0 53.6 59.3 65.5 78.1 96.2 89.7 94.4 97.0 103.6 116.4 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 210.0 219.5 234.3 255.0 277.1 268.6 275.3 279.0 285.6 295.9 Federal........................................................... 1.3 2.0 ' 16.9 18.4 98.8 96.2 98.1 104.4 106.6 105.5 107.3 106.8 106.8 111.3 National defense...................................... 13.8 14.1 78.4! 74.6 71.6 74.4 73.9 74.3 74.2 74.2 73.0 76.2 Other.......................................................... 3.1 4.3 20.4 21.6 26.5 30.1 32.7 31.2 33.1 32.7 33.8 35 1 State and local.............................................. 7.2 6.0 7.9 19.5 111.21123.3 136.2 150.5 170.5 163.0 168.0 172.2 178.8 184.6 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 725.6j 722.5 745.4 790.7 837.4 829.3 834.3 841.3 844.6 832.0 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) 1973 1974 1929 1933 1941 1950 1969 1970 1971 1972 1973 Item I II III IV Ip National income................................................ 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,053.91,015.01,038.2 1,067.41,095.1 51.1 29.5 64.8 154.6 566.0 603.9 644.1 707.1 785.2 757.4 774.9 794.0 814.7 826.6 Wages and salaries....................................... 50.4 29.0 62.1 146.8 509.7 542.0 573.8 627.3 691.4 666.7 682.3 699.3 717.2 726.0 45.5 23.9 51.9 124.4 405.6 426.9 449.7 493.3 546.0 525.1 538.7 553.2 566.9 573.1 .3 .3 1.9 5.0 19.0 19.6 19.4 20.3 20.8 20.9 20.5 20.4 21.3 21.2 4.6 4.9 8.3 17.4 85.1 95.5 104.7 113.8 124.6 120.7 123.1 125.7 129.1 131.7 Supplements to wages and salaries............... .7 .5 2.7 7.8 56.3 61.9 70.3 79.7 93.9 90.8 92.6 94.7 97.5 100.6 Employer contributions for social in­ surance .................................................. .1 .1 2.0 4.0 27.8 29.7 33.7 39.0 49.0 47.4 48.3 49.4 50.8 52.6 Other labor income.................................. .6 .4 .7 3.8 28.4 32.2 36.6 40.7 44.9 43.3 44.2 45.3 46.7 47.9 Proprietors’ income........................................... 15.1 5.9 17.5 37.5 67.2 66.9 68.7 74.2 84.2 80.6 81.5 85.0 89.8 88.2 Business and professional............................ 9.0 3.3 11.1 24.0 50.5 50.0 51.9 54.0 57.5 56.3 57.1 57.9 58.5 59.1 Farm.............................................................. 6.2 2.6 6.4 13.5 16.7 16.9 16.8 20.2 26.8 24.3 24.4 27.1 31.3 29.1 Rental income of persons................................. 5.4 2.0 3.5 9.4 22.6 23.9 24.5 24.1 25.1 24.7 24.6 25.3 25.7 25.8 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 79.8 69.2 80.1 91.1 109.0 104.3 107.9 112.0 111.9 Profits before tax......................................... 10.0 1.0 17.7 42.6 84.9 74.0 85.1 98.0 126.3 119.6 128.9 129.0 127.4 Profits tax liability.................................... 1.4 .5 7.6 17.8 40.1 34.8 37.4 42.7 55.8 52.7 57.4 57.6 55.7 Profits after tax......................................... 8.6 .4 10.1 24.9 44.8 39.3 47.6 55.4 70.4 66.9 71.6 71.5 71.6 Dividends.............................................. 5.8 2.0 4.4 8.8 24.3 24.7 25.1 26.0 27.8 26.9 27.3 28.1 29.0 29.5 Undistributed profits............................ 2.8 -1.6 5.7 16.0 20.5 14.6 22.5 29.3 42.6 40.0 44.2 43.4 42.6 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -5.1 -4.8 -4.9 -6.9 -17.3 -15.4 -21.1 -17.0 -15.5 -30.9 4.7 4.1 3.2 2.0 30.5 36.5 42.0 45.2 50.4 47.9 49.4 51.1 53.0 55.0 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

MAY 1974 d NATIONAL PRODUCT AND INCOME A 61 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 II III IV Gross national product. 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.21,289.1 1,242.51,272.01,304.5 1,337.51,351.8 Less: Capital consumption allowances....... 7.9 7.0 8.2 18.3 81.6 87.3 93. 102.4 110.0 106.9 109.0 110.5 113.5 115.9 Indirect business tax and nontax lia­ bility .................................................. 7.0 7.1 11.3 23.3 85.9 93.5 102.4 109.5 117.8 115.6 117.2 118.5 119.9 121.2 Business transfer payments................ .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4. 4.9 5.0 5. 1 5.2 Statistical discrepancy........................ .7 .6 .4 1.5 -6.1 -6.4 -3.4 -1.5 2.9 1.1 3.2 3.7 3.7 Plus: Subsidies less current surplus of gov­ ernment enterprises......................... -.1 .1 .2 1.0 1.7 1.2 1.7 .4 .4 .6 -.2 -2.7 Equals: National income. 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,053.91,015.01,038.21,067.41,095.1 Less: Corporate profits and inventory valu­ ation adjustment............................. 10.5 -1.2 15.2 37.7 79. 69.2 80.1 91.1 109.0 104.3 112.0 111.9 Contributions for social insurance... .2 .3 2 6.9 54.2 57.7 64.6 73.7 92.1 89.3 93.0 95.0 99.8 Excess of wage accruals over disburse­ ments................................................ .0 .6 -.5 -. 1 .0 .0 .0 .0 Plus: Government transfer payments......... 1.5 2.6 14.3 61.9 75.1 88.9 98.3 112.6 108.8 110.8 113.7 116.9 122. 1 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 34.7 36.1 38.0 39.7 41.3 Dividends............................................. 5. 2.0 4.4 8.8 24.3 24.7 25.1 26.0 27.8 26.9 27.3 28.1 29.0 29.5 Business transfer payments................ .6 .7 .5 .8 3 4.0 4.3 4.6 4.9 4 4.9 5.0 5.1 5.2 Equals: Personal income............................... 85.9 47.0 96.0 227.6 750.9 808.3 863.5 939.21,035.4 996.61,019,01,047.1 ,078.9 ,093.9 Less: Personal tax and nontax payments... 2.6 1.5 3.3 20.7 116.5 116.6 117.5 142.2 152.9 145.1 149. 156.0 161.1 163.4 Equals: Disposable personal income.............. 83.3 45.5 92.7 206.9 634.4 691.7 746.0 797.0 882.5 851.5 869. 891.1 917.8 930.5 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 596.2 635.5 685. 747.2 827. 801.5 818. 840.1 850.8 869.9 Personal consumption expenditures. 77.2 45. 80.6 191.0 579.5 617.6 667.2 726.5 804.0 779.4 795. 816.0 825.2 844.6 Consumer interest payments............ 1.5 .5 .9 2.4 15.8 16. 17.7 19.7 22.5 21.2 22. 23.0 23.8 24.4 Personal transfer payments to for­ eigners............................................ .3 .2 .2 .5 .9 1.0 1.0 1.0 1.2 .9 1. 1.1 1.8 .9 Equals: Personal saving. 4.2 -.9 11.0 13.1 38.2 56.2 60.2 49.7 54 50.0 51. 51.1 67.1 60.6 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.0 603.9 604.8 609.5 613.21 603.2 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of oppo site page. PERSONAL INCOME (In billions of dollars) 1973 1974 Item 1972 1973 Mar. Apr. May June July Aug. Sept. Oct. Nov Dec. Jan. Feb. Mar.p Total personal income 939.21,035.41,003.31,011.61,018.71,026.61,035.61,047.31,058.51,068.51,079.41.089.01,087.01,094.81,099.9 Wage and salary disbursements...... 627.8 691.5 671.1 677.6 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 726.5 729.7 Commodity-producing industries.. 226.0 251 243.5 245.9 248.3 251.7 253.4 254.8 257.8 259.5 262.5 264.1 261.0 263.0 263.5 Manufacturing only...................... 175.9 196.8 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.1 203.0 203.5 203.8 Distributive industries...................... 151.5 165.1 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171.3 171.8 172.2 173.3 Service industries............................. 116.1 129.0 124.9 126.4 126. 127.7 129.4 130.8 132.5 132.9 134.1 135.9 136.8 138.3 139.2 Government...................................... 134.2 145.4 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 152.2 152.9 153.7 Other labor income. 40.7 44.9 43.6 43.9 44.2 44.5 44.8 45.3 45. 46.2 46.7 47.1 47.5 47.9 48.3 Proprietors’ income.............. 74.2 84.2 81.0 81.0 81.5 81.9 83.7 85.1 86.4 88.4 90.3 91.0 88.2 88.4 88. 1 Business and professional. 54.0 57.5 56.4 56. 57.1 57.3 57.8 58.0 58.1 58.5 58.7 58.6 58.6 59.3 59.5 Farm.................................. 20.2 26.8 24.6 24.2 24.4 24.6 25.9 27.1 28.3 29.9 31.6 32.4 29.6 29.1 28.6 Rental income................. 24.1 25.1 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 25.7 25.7 25.8 25.8 25.8 Dividends........................ 26.0 27.8 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 28.7 29. 29.5 29.4 29.6 Personal interest income. 78.0 87.5 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.5 92.6 94.0 95.3 96.3 97.2 Transfer payments.......... 103.0 117.5 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.1 121.9 123.0 125.9 127.6 128.3 Less: Personal contributions for social insurance................................... 34.7 43.1 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 44.3 44.3 47.0 47.2 47.3 Nonagricultural income. 911.51,000.5 970.9 979.5 986.4 994.21,001.81,012.11,021.8 1,030.0 1,039 0 1,047.5 1,048.11,056,41,061.8 Agricultural income 27.7 34.9 32.4 32.0 32.2 32.4 33.8 35.2 36.7 38.6 40.4 41.5 38.9 38.4 38.1 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 FLOW OF FUNDS □ MAY 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 r HI H2 HI H2 HI r H2r Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................. 94.6 91.4 97.5 146.7 166.1 187.0i 134.7 158.7 145.2; 187.3. 198.01 175.4 1 2 Excluding equities................................................. 95.9 88.0 92.6 135.0 156.1 181.3 123.8 146.1 134.7 177.8 192.3 169.6 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 7.7 24.2 27.8 10.5 17.2 15.8 -.3 4 5 Budget agency issues.............................................. 3.1 -2.4 -.1 -.5 3.4 2.0 -1.6 .5 1.9 4.9 1.2 2.8 5 6 All other nonfinancial sectors..................................... 81.2 95.0 84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9 6 7 Corporate equities.................................................. — 1.4 3.4 4.9 11.7 10.0 5.7 10.9 12.6 10.4 9.5 5.7 5.8 7 8 Debt instruments.............................................. 82.6 91.6 79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1 8 9 Debt capital instruments....................................... 50.6 •50.6 57.7 83.2 92.4 94.7 79.5 86.9 87.3 97.6 91.7 97.7 9 10 State and local government securities................ 9.5 9.9 11.3 16.6 11.9 10.1 17.9 15.4 12.0 11.9 6.5 13.6 10 11 Corporate and foreign bonds........................... 14.0 13.0 20.6 19.7 13.2 11.6 22.3 17.2 14.4 12.0 10.6 12.7 11 12 Mortgages............................................................ 27.1 27.7 25.7 46.8 67.3 73.0 39.3 54.3 60.9 73.7 74.6 71.4 12 13 Home mortgages.............................................. 15.1 15.7 12.8 26.0 39.7 42.6 20.6 31.5 35.6 43.7 43.5 41.8 13 14 3.4 4.7 5.8 8.8 10.3 9.5 8.5 9.1 9.1 11.5 10.8 8.2 14 15 Commercial...................................................... 6.4 5.3 5.3 10.0 14.8 16.5 8.5 11.5 13.5 16.0 16.1 16.9 15 16 Farm................................................................. 2.2 1.9 1.8 2.0 2.6 4.4 1.7 2.3 2.7 2.5 4.3 4.5 16 17 Other private credit................................................ 32.0 41.0 22.1 26.3 46.4 76.9 21.7 30.9 35.0 58.0 83.6 69.5 17 18 Bank loans n.e.c.............................................. 13.1 15.3 6.4 9.3 21.8 41.7 5.1 13.5 14.5 29.3 54.2 29.2 18 19 Consumer credit................................................. 10.0 10.4 6.0 11.2 19.2 22.9 8.9 13.6 15.8 22.5 24.7 20.4 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 9.8 8.7 4.6 5.0 9.0 8.2 11.5 21 22 By borrowing sector................................................ 81.2 95.0 84.7 121.2 148.8 177.3 112.0 130.4 132.8 165.1 181.0 172.9 22 23 Debt instruments.............................................. 82.6 91.6 79.8 109.5 138.8 171.6 101.1 117.8 122.3 155.6 175.3 167.1 23 24 Foreign................................................................ 2.9 2.9 3.0 5.7 3.8 7.1 5.3 6.1 3.4 4.3 11.1 3.1 24 25 State and local governments.............................. 9.8 10.7 11.4 17.0 12.3 10.5 17.9 16.1 11.9 12.7 6.4 14.6 25 26 Households.......................................................... 29.6 32.2 22.9 3813 63.2 74.1 30.0 46.6 56.2 70.5 73.5 74.0 26 27 Nonfinancial business........................................ 40.2 45.9 42.5 48.5 59.5 79.9 47.9 49.0 50.9 68.2 84.4 75.4 27 28 Farm................................................................ 2.8 3.2 3.2 4.1 4.9 8.6 4.0 4.2 4.4 5.3 7.5 9.8 28 29 Nonfarm noncorporate.................................... 5.6 7.4 5.3 8.7 10.4 11.4 9.3 8.1 9.5 11.6 12.0 10.8 29 30 Corporate......................................................... 31.8 35.4 33.9 35.7 44.2 59.9 34.6 36.8 37.0 51.2 64.8 54.9 30 31 Corporate equities.............................................. -1.4 3.4 4.9 11.7 10.0 5.7 10.9 12.6 10.4 9.5 5.7 5.8 31 32 Foreign................................................................ .2 .5 .1 * -.4 -.2 .4 -.3 -.2 -.6 -.4 * 32 33 Corporate business............................................. -1.5 2.9 4.8 11.7 10.4 5.9 10.5 12.9 10.7 10.1 6.1 5.7 33 Totals including equities 34 Foreign................................................................ 3.1 3.3 3.0 5.7 3.4 6.9 5.7 5.8 3.2 3.7 10.7 3.1 34 35 Nonfinancial business........................................ 38.7 48.8 47.3 60.2 69.9 85.8 58.4 61.9 61.6 78.3 90.5 81.2 35 36 Corporate........................................................ 30.3 38.3 38.8 47.4 54.6 65.8 45.1 49.7 47.7 61.3 70.9 60.6 36 37 Memo: U.S. Govt, cash balance......................... -1.1 .4 2.8 3.2 .5 -1.7 -.2 6.6 -3.0 4.0 3.6 -7.0 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised...................................................... 95.7 91.0 94.7 143.5 165.6 188.7 134.9 152.1 148.1 183.3 194.3 182.3 38 39 By U.S. Government............................................ 14.5 -4.0 10.0 22.3 16.8 11.4 22.9 21.7 15.4 18.1 13.3 9.4 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total txtpital outlays1...................................... 207.6 226.7 224.2 252.5 291.1 328.3 246.3 258.7 279.9 302.3 323.8 332.9 1 2 Capital consumption 2.......................................... 140.4 154.3 166.0 179.0 193.4 209.9 175.8 182.2 190.3 196.6 205.6 214.3 2 3 Net physical investment......................................... 67.2 72.4 58.2 73.5 97.7 118.4 70.5 76.6 89.7 105.7 118.2 118.6 3 4 Net funds raised..................................................... 68.3 81.0 70.2 98.5 133.1 159.9 88.4 108.5 117.7 148.8 163.9 155.2 4 5 Excess net investment 3.......................................... -1.1 -8.6 -12.0 -25.0 -35.4 -41.5 -17.9 -32.0 -28.0 -43.1 -45.7 -36.6 5 Total business 6 Total capital outlays........................................ 97.9 108.9 108.0 116.6 133.3 151.3 115.8 117.3 127.4 139.3 145.6 157.0 6 7 Capital consumption.............................................. 63.2 69.5 74.6 80.3 87.6 94.5 78.8 81.7 86.2 88.9 92.7 96.3 7 8 Net physical investment......................................... 34.7 39.4 33.5 36.3 45.8 56.8 37.0 35.5 41.2 50.4 52.9 60.7 8 9 Net debt funds raised............................................ 40.2 45.9 42.5 48.5 59.5 79.9 47.9 49.0 50.9 68.2 84.4 75.4 9 10 Corporate equity issues.......................................... -1.5 2.9 4.8 11.7 10.4 5.9 10.5 12.9 10.7 10.1 6.1 5.7 10 11 Excess net investment 3.......................................... -4.0 -9.4 -13.8 -23.9 -24.1 -29.0 -21.4 -26.4 -20.4 -27.9 -37.5 -20.5 11 Corporate business 12 Total capital outlays........................................ 75.0 83.7 84.0 86.7 100.7 114.8 86.5 87.0 96.0 105.4 109.8 120.0 12 13 Capital consumption.............................................. 45.1 49.8 53.6 57.7 62.8 67.9 56.7 58.7 61.8 63.8 66.5 69.4 13 14 Net physical investment......................................... 29.9 33.9 30.4 29.1 37.8 46.8 29.8 28.3 34.1 41.5 43.3 50.6 14 15 Net debt funds raised............................................ 31.8 35.4 33.9 35.7 44.2 59.9 34.6 36.8 37.0 51.2 64.8 54.9 15 16 Corporate equity issues.......................................... -1.5 2.9 4.8 11.7 10.4 5.9 10.5 12.9 10.7 10.1 6.1 5.7 16 17 Excess net investment 3.......................................... -.4 -4.4 -8.4 -18.3 -16.8 -18.9 -15.3 -21.4 -13.5 -19.8 -27.6 -10.0 17 Households 18 Total capital outlays........................................ 109.7 117.8 116.2 135.9 157.8 177.1 130.4 141.4 152.6 163.0 178.2 175.9 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 61.6 33.5 41.0 48.5 55.3 65.3 58.0 20 21 Net funds raised..................................................... 29.6 32.2 22.9 38.3 63.2 74.1 30.0 46.6 56.2 70.5 73.5 74.0 21 22 Excess net investment 3.......................................... 2.9 .8 1.8 -1.1 -11.3 -12.5 3.5 -5.6 -7.6 -15.2 -8.2 -16.1 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 equity issues are net on a quarterly basis and annually for flows and for amounts outstanding. cash issues by nonfinancial and foreign corporations. Mortgages exclude Requests for these statements should be addressed to the Flow of Funds loans in process. Open-market paper is commercial paper issued by Section, Division of Research and Statistics, Board of Governors of the nonfinancial corporations plus bankers’ acceptances. Digitized for FFReAdeSraEl RR eserve System, Washington, D.C., 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 d 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 r H2r 1 Total funds advanced in credit markets to nonfinancial sectors............................................. 95.9 88.01 92.61 135.C1 156.1 181.3i 123.8i 146.1 134.'Jr 177.81 192.3 169.6 1 By public agencies and foreign 2 Total net advances...................................................... 12.2 15.8i 28.0i 41.3i 16.9» 34.8 38.6i 44.0I \9.1r 14.1 42.9 26.7 2 3 U.S. Government securities................................... 3.< .9' 15.7 33.4^ 7.3; ll.oi 32.9» 34. C) 12.7 2.0I 21.2 .7 3 4 Residential mortgages............................................ 2.i 4.6 5.7 5.7 5.2 7.7 4.2 7.1 6.2: 4.3 4.9 10.5 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 9.0 7.1 2.7 3.2 5.4 9.1 8.9 6 By agency— 7 U.S. Government.................................................... 4.9 2.9 2.8 3.2 2.3 3.0 4.3 2.2 1.5; 3.1 1.0 5.1 7 8 Sponsored credit agencies...................................... 3.2 9.0 9.9 2.8 6.0' 20.3 -1.4 7.0i 7.5; 4.5 18.7 21.8 8 9 Monetary authorities.............................................. 3.7 4.2 5.0 8 8 .2 9.2 8.4 9.3 4.5 -4.1 11.8 6.7 9 10 Foreign.................................................................... .3 -.3 10.3 26.4 8.4 2.3 27.3 25.5 6.2 10.6 11.5 -6.9 10 11 Agency borrowing not included in line 1................. 3.5 8.8 8.2 4.3 6.2 19.6 .9 7.7 7.4 5.0 17.6 21.6 11 Private domestic funds advanced 12 Total net advances...................................................... 87.2 80.9 72.8 98.0 145.4 166.1 86.1 109.9 122.4 168.6 167.0 164.5 12 13 U.S. Government securities................................... 13.3 4.6 5.4 -3.5 16.3 18.4 -9.2 2.1 7.1 25.3 13.5 23.4 13 14 State and local obligations..................................... 9.5 9.9 11.3 16.6 11.9 10. 1 17.9 15.4 12.0 11.9 6.5 13.6 14 15 Corporate and foreign bonds................................ 13.8 12.5 20.0 19.5 13.2 11.6 22.1 16.8 14.2 12.1 10.3 12.9 15 16 Residential mortgages............................................ 15.5 15.7 12.8 29.1 44.6 44.3 24.8 33.4 38.4 50.8 49.2 39.4 16 17 Other mortgages and loans................................... 35.9 42.2 24.6 33.7 59.5 88.9 25.0 42.3 48.3 71.0 95.2 81.8 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 74.9 111.4 150.2 161.4 112.2 110.6 130.5 170.1 184.8 138.0 19 20 Commercial banking.............................................. 38.7 18.2 35.1 50.6 69.7 89.6 53.2 48.0 57.2 82.4 101.3 77.8 20 21 Savings institutions................................................ 15.6 14.5 16.9 41.5 48.7 35.2 45.4 37.5 48.4 48.9 49.8 20.6 21 22 Insurance and pension funds................................. 14.0 12.3 17.3 14.1 16.0 21.4 12.5 15.7 14.1 17.8 19.6 23.2 22 23 Other finance.......................................................... 7.0 9.9 5.7 5.3 15.8 15.2 1.2 9.4 10.6 21.0 14.1 16.4 23 24 Sources of funds.......................................................... 75.3 54.9 74.9 111.4 150.2 161.4 112.2 110.6 130.5 170.1 184.8 138.0 24 25 Private domestic deposits...................................... 45.9 2.6 63.2 90.8 97.8 87.9 107.7 73.9 97.9 97.9 103.1 12.1 25 26 Credit market borrowing....................................... 8.5 19.1 -.4 9.2 20.2 30.3 2.6 15.9 16.4 24.0 34.4 26.2 26 27 Other sources.......................................................... 21.0 33.3 12.1 11.3 32.2 43.2 1.9 20.8 16.2 48.2 47.3 39.1 27 28 Foreign funds..................................................... 2.6 9.3 -8.5 -3.2 5.1 6.3 -7.2 .8 5.5 4.7 5.3 7.4 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 15.7 7.7 11.5 8.4 14.1 13.8 17.5 30 31 Other, net............................................................ 7.2 13.5 4.5 2.7 15.1 22.2 2.2 3.2 5.9 24.3 29.6 14.8 31 Private domestic nonfinancial investors 32 Direct lending in credit markets............................... 20.3 45.0 -2.4 -4.2 15.4 35.1 -23.5 15.2 8.3 22.5 16.6 52.7 32 33 U.S. Government securities................................... 8.0 16.8 -8.3 -13.0 4.1 19.4 -22.4 -3.5 -3.3 11.5 13.4 25.3 33 34 State and local obligations..................................... -.2 8.7 -1.1 -.1 2.1 1.4 -2.7 2.6 .9 3.4 .6 2.1 34 35 Corporate and foreign bonds................................ 4.7 7.4 10.1 8.2 4.9 .8 8.6 7.7 4.5 5.2 1.3 .4 35 36 Commercial paper.................................................. 5.8 10.2 -4.4 -.6 3.7 10.0 -7.3 6.0 6.7 .8 -.1 20.1 36 37 Other....................................................................... 2.1 2.0 1.4 1.3 .6 3.5 .3 2.3 -.4 1.7 1.4 4.8 37 38 Deposits and currency................................................ 48.3 5.4 66.6 94.2 102.2 91.8 110.6 77.9 103.3 101.3 109.2 74.5 38 39 Time and savings accounts.................................... 33.9 -2.3 56.1 81.2 85.7 79.9 92.6 69.8 88.8 82.6 98.8 60.9 39 40 Large negotiable CD’s....................................... 3.5 -13.7 15.0 7.7 8.7 18.6 3.4 12.0 2.1 15.3 34.2 3.0 40 41 Other at commercial banks............................... 17.5 3.4 24.2 32.9 31.0 32.9 44.0 21.9 38.9 23.2 26.8 39.0 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 37.8 18.9 42 43 Money..................................................................... 14.5 7.7 10.5 13.0 16.5 12.0 17.9 8.1 14.5 18.7 10.3 13.6 43 44 Demand deposits................................................ 12.1 4.8 7.1 9.6 12.1 8.0 15.1 4.1 9.1 15.3 4.3 11.8 44 45 Currency.............................................................. 2.4 2.8 3.5 3.4 4.4 3.9 2.8 3.9 5.5 3.4 6.0 1.8 45 46 Total of credit market instr., deposits, and currency. 68.7 50.5 64.2 90.0 117.7 126.9 87.1 93.0 111.7 123.8 125.7 127.2 46 47 Public support rate (in per cent)........................... 12.7 18.0 30.2 30.6 10.8 19.2 31.2 30.1 14.6 7.9 22.3 15.7 47 48 Private financial intermediation (in per cent)........ 86.4 67.9 102.8 113.7 103.3 97.2 130.3 100.7 106.6 100.9 110.7 83.9 48 49 Total foreign funds................................................ 2.9 9.1 1.8 23.2 .3.5 8.6 20.1 26.3 11.6 15.3 16.8 .5 49 Corporate equities not included above 1 Total net issues............................................................ 5.1 9.5 9.5 14.7 12.0 5.7 13.0 16.3 12.4 11.5 5.4 6.0 1 2 Mutual fund shares................................................ 5.8 4.8 2.6 1.2 -.6 -1.6 .3 2.1 -.8 -.4 -2.0 -1.1 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 13.3 23.4 15.0 17.6 13.6 12.5 14.1 4 5 Other net purchases.................................................... -5.8 -2.7 -1.9 -4.6 -3.6 -7.6 -10.4 1.3 -5.1 -2.1 -7.0 -8.1 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 □ MAY 1974 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 Line Credits+, debits — 1971 1972 1973* IV III IVp 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 Imports........................... -45,466 -55,681 -69,567 -14,958 -16,174 -17,009 -17,531 -18,853 4 Military transactions, net......... -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 Investment income, net 2................................... 7,972 7,863 9,723 2,232 2,330 2,133 2,333 2,927 7 U.S. direct investments abroad................ 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 Foreign investments in the United States. -4,927 -6,062 -8,827 -1,634 -1,853 -2,203 -2,328 -2,443 10 Other services, net............................................. 739 851 972 237 232 238 221 280 11 Balance on goods and services 3................................ 807 -4,610 6,900 -870 184 601 2,149 3,965 12 Remittances, pensions, and other transfers... -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 Balance on current account........................................ -2,790 -8,353 -3,041 -1,751 -558 -440 1,246 2,791 16 U.S. Government capital flows excluding nonscheduled repayments, net 4.................................................................. -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 official reserve agencies......................................................... -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 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 SDR’s........................................ -249 -703 9 -177 Convertible currencies.............. 381 35 233 82 233 Gold tranche position in IMF. 1,350 153 -33 -16 -13 -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) («) 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

MAY 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 +, debits — 1971 1972 1973? IV I II III IVp 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 accpunt........................................................... -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 undqr 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 1971 1972 1973 1971 1972 1973 1974 1971 1972 1973 1974 Month: Jan.... 3,601 4,074 4,955 7,111 3,599 '4,436 5,244 6,467 2 -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 7,674 3,628 4,515 5,411 7,845 160 -647 -102 -171 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 I I 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 intQ bonded warehouses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 U.S. GOLD TRANSACTIONS □ MAY 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 III IV Western Europe: Austria.............................. -82 -55 -100 -25 Belgium............................. -40 -83 -58 -110 France............................... '-518 -405 -884 -60i 600 325 -129 -473 Germany, Fed. Rep. of.. -225 500 Ireland............................... -1 -2 -2 -2 -52 41 Italy................................... 200 -80 -60 -85 -209 -76 Netherlands...................... -60 -35 -19 -50 -25 Spain................................. -130 -32 -180 51 Switzerland....................... -81 -50 -2 -30 -50 -25 -50 -175 United Kingdom.............. *329 618 150 80 -879 -835 Bank for Intl. Settlements. 200 Other.,................................ -35 -49 16 -47 U -29 -13 Total. -399 -1,299 -659 -980 -669 969 -204 -796 Canada ---- 200 150 50 Latin American republics: Argentina ...................... -30 -39 -1 -25 -25 -28 Brazil............................... 72 25 -3 -1 -23 Colombia......................... 29 7 -1 Venezuela......................... -25 Other............................... -9 -13 -6 -40 -29 -80 Total. 32 56 17 -41 -65 -54 -131 -5 Asia: Iraq................ -10 -21 -42 Japan............. -119 Lebanon........ -1 -95 -35 Malaysia........ -34 -10 Philippines. .. 25 9 40 -4 -2 Saudi Arabia. -50 Singapore -81 -30 Other............. ’-i3 -6 -14 -14 -22 -75 -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 foreign countries. -392 -36 -1,322 -608 1,031 ■1,118 957 -631 -845 -3 Intl. 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

MAY 1974 o 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 of Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo u e C 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 e n t F r io v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l2 ld st T o r p e k a 1 sury v c fo C u e c r i r r e o e t r i s i e n 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 Apr.... 12,904 10,487 10,410 8 460 1,949 1962.. 17,220 16,057 15,978 99 1,064 May... 12,916 10,487 10,410 16 464 1,949 1963.. 16,843 15,596 15,513 212 1,035 June. .. 12,914 10,487 10,410 8 470 1,949 1964.. 16,672 15,471 15,388 432 769 July. . . 12,918 10,487 10,410 8 474 1,949 Aug— 12,923 10,487 10,410 8 479 1,949 1965.. 15,450 6 13,806 613,733 781 6 863 Sept__ 12,927 10,487 10,410 8 483 1,949 1966.. 14,882 13,235 13,159 1,321 326 Oct.... 1014,367 1011,652 1011,567 8 10541 102,166 1967.. 14,830 12,065 11,982 2,345 420 Nov.... 14,373 11,652 11,567 8 547 2,166 1968.. 15,710 10,892 10.367 3,528 1,290 Dec.. . 14,378 11,652 11,567 8 552 2,166 1969.. 716,964 11,859 10.367 72,781 2,324 1974 1970.. 14,487 11,072 10,732 629 1,935 851 Jan.. .. 14,565 11,652 11,567 59 688 2,166 1971.. 812,167 10,206 10,132 8 276 585 1,100 Feb.... 14,643 11,652 11,567 68 757 2,166 19729. 13,151 10,487 10,410 241 465 1,958 Mar__ 14,588 11,652 11,567 9 761 2,166 1973... 14,378 11,652 11,567 552 2,166 Apr.... 14,651 11,652 11,567 9 824 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 P s t u d a io b y o n s m o ll c s f a e r r i i n 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 i l o n la m n rs e e t P d u o rc l o o l h t a f h a r w e s s e i r 3 t s h c o I u M p n u d t F r o r R c i l i e h n l e a s a ­ r s s es c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a n t p p ( i e n e o r n s i I i d o M t d io o ) F n 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—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 Apr.. -2 -61 -63 7,258 90 824 For notes see opposite page. 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A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 ­ 1 Total t p l S b i i t o e a h a e b i s r b n r o n y t m i k e r r l e t i d s ­ ­ ­ M n T b U o a o a a r b t e r n n . e S k a l d d e s s . e s 3 . t­ N v k T b o e e c U o a r n r 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 e d d b o s . s l l s 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 5 l i r y t ­ ­ a t m o l b b i a e a t r c i b r o n e o c i k s a l i m i a d s ­ l ­ 6 Total p t l S b i i t o e a h a e b i s r b n r o n y t m i k e r r l e t i d s ­ ­ ­ n M T b o U a o a a r t b e e n r n .S l k a s d d e s 3 . e s . , t 7 ­ z o 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. noies U.S. 1962 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9........... \ ( 2 2 6 6 , , 3 4 9 33 4 8 8 0 0 0 0 1 14 4, , 4 4 5 2 9 5 1 1 2 2 . . 4 4 6 6 7 7 1 1 , ,1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3 . . 0 0 4 4 6 6 3 3 5 4 1 1 1 1, , 9 9 6 6 5 0 1964 9........... /29,313 800 15,790 13,224 1.125 1.079 204 158 7,271 3,730 3,354 376 1.722 \29,364 800 15.786 13,220 1.125 1.079 204 158 7,303 3,753 3,377 376 1.722 196 5 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9.......... / \ 3 3 1 1 , , 1 0 4 2 5 0 1 1 , , 0 01 1 1 1 1 1 4 4, , 8 8 4 9 1 6 1 1 2 2 , , 5 4 3 8 9 4 8 86 6 0 0 2 2 5 56 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 27 7 1 2 3 3. .7 74 4 3 4 5 5 2 28 8 9 9 0 0 5 6 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 9 9 0 08 8 7 7 1 1 1 1 7 7 4 4 1 1 1 1 . . 8 8 0 0 7 7 1 1 1 1 , , 2 0 0 85 9 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 0 7 5 5 5 58 8 6 69 7 1 7 1968 9........... \ ( 3 38 8, , 4 6 7 8 3 7 1 1 . . 0 0 3 3 0 0 1 1 7 7 , ,4 3 0 4 7 0 1 1 1 1 . . 3 3 1 1 8 8 4 5 6 2 2 9 7 7 0 0 1 1 2 2 . . 5 51 1 8 8 2 2. . 3 3 4 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 5 9 3 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 72 2 5 2 1969 9........... 10 \ ( 4 4 5 5 , , 9 7 1 5 4 5 1 1 . . 0 0 1 1 9 9 »» 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 23 3, , 6 63 4 8 5 4 4 , , 5 4 8 6 9 4 4 3 , , 0 9 6 39 4 5 5 2 25 5 6 6 6 5 3 9 1970—Dec.9. \ ( 4 4 6 7 , , 9 0 6 09 0 5 56 6 6 6 2 23 3 . . 7 7 7 8 5 6 1 1 9 9 . . 3 3 3 33 3 2 3 9 0 5 6 4 42 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 6 0 7 4 6 4 4 , ,0 0 3 29 9 6 56 4 5 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. ii \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—Mar... 1290,886 1271,33 5 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 15,31J 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.. . 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.... 90,099 63,876 41,576 5,214 12.321 3.210 1,555 18,014 6,285 5,836 449 1,924 Feb.*.. 92,005 64,111 42.018 5.177 12.322 3.210 1.384 19,642 6,456 6.046 410 1,796 Mar.*. 95,655 65,519 43,419 5.177 12,329 3.210 1.384 21,997 6,729 6,329 400 1,410 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 gpld subscriptions tain accounts previously classified as “official institutions” are included to the IMF under quota increases, and (b) U.S. Treasury obligations at with “banks”; a number of reporting banks are included in the series for cost value and funds awaiting investment obtained from proceeds of sales the first time; and U.S. Treasury securities payable in foreign currencies of gold by the IMF to the United States to acquire income-earning assets. issued to official institutions of foreign countries have been increased in 2 Includes BIS and European Fund. value to reflect market exchange rates as of Dec. 31, 1971. 3 Derived by applying reported transactions to benchmark data; 12 Includes $15 million increase in dollar value of foreign currency breakdown of transactions by type of holder estimated 1962-63. liabilities revalued to reflect market exchange rates. 4 Excludes notes issued to foreign official nonreserve agencies. 13 includes $147 million increase in dollar value of foreign currency 5 Includes long-term liabilities reported by banks in the United States liabilities to official institutions of foreign countries revalued to reflect and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ market exchange rates as follows: short-term liabilities, $15 million; 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 10 Includes $101 million increase in dollar value of foreign currency by other international and regional organizations. liabilities resulting from revaluation of the German mark in Oct. 1969 as follows: liquid, $17 million, and other, $84 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 e s E W u e ro st p e e r n 1 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 5,043 259 303 117,340 8,062 1,866 1,865 4,997 248 302 1969 3................................................................................ f4 15,975 4 7,074 1,624 1,888 4,552 546 291 I4 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3................................................................................ J23,786 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 61,524 34,197 4,279 1,731 17,577 777 2,963 1973—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........................................................................... 63,876 43,290 3,930 2,446 10,479 838 2,893 Feb.*....................................................................... 64,111 42,411 4,254 2,743 10,878 1,000 2,825 Mar.*....................................................................... 65,519 42,780 4,180 2,886 11,631 1,249 2,793 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. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners To nonmonetary international and regional organizations 6 Payable in dollars IMF Deposits End of period Total i Dem D an e d pos T it i s me2 b T i c r c l e T U l e a s r a o t . t e S s i ta f u s a . i n r ­ l 3 d y s O l t i h e a t o r h b m r e . t 4 r ­ P r f e o a c n y r i u e n c a r i i b g ­ e l n s e in m g v o e e s n ld t t ­ 5 Total Demand Time2 b T i c r l c e l U 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 ­ 1969............ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707........... /41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 1971 8......... f55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 155,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 197 2 60,722 60,225 8,288 5,631 31,850 14,456 496 1,413 86 202 326 800 1973—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 1,487 178 118 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... 67,281 66,641 10,822 7,030 29,543 19,245 640 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 Mar.* 72,888 72,122 11,646 7,156 31,483 21,837 766 1,142 96 70 227 749 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. □ MAY 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 i o Payable in dollars Payable in dollars 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 ­ P f r o e a c n r y u i e c n a i r i b g ­ e l n s e Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O t l h e i t a 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......... J40,499 15,716 5,765 13.511 5,138 368 19,333 1,652 2,554 13,367 1,612 148 140,541 15,726 5,802 13.511 5,133 368 19,333 1,652 2,554 13,367 1,612 148 19718.......... J 1 5 5 3 3 , ,6 6 6 3 1 2 1 6 0 , , 3 3 8 26 6 4 5 , ,0 02 17 5 3 3 2 2 . . 4 4 1 15 5 1 5 0 , , 4 4 8 4 9 3 3 3 8 9 6 2 3 3 9 9 , , 0 6 1 79 8 1 1 , ,3 6 2 2 7 0 2 2 , , 0 5 3 0 9 4 3 3 2 2 , , 3 3 1 1 1 1 3 3, , 1 08 7 6 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—Mar.. 64,465 7,493 5,479 37,687 13,257 548 46,928 1,543 2,837 37,620 4,757 172 Apr.. 63,753 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.. 65,426 10,728 6,936 29,257 17,865 640 41,576 2,379 3,705 29,152 6,212 127 Feb.p 67,706 11,400 6,996 30,041 18.500 768 42,018 2,412 3,700 29,917 5,861 127 Mar.p 71,745 11,550 7,086 31,255 21.089 766 43,419 2,631 3,799 31,064 5,798 127 To other foreigners To banks Payable in dollars and other End of period Total Payable in Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 c c e a r t t e if s i­ liab.4 Demand Time2 c c e a r t ti e f s i­ liab.4 1969...................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 ................... (21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 19718.................... /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—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.............. 23,850 17,501 6,329 511 14 10,648 5,835 2,020 2,719 91 1,005 513 Feb.p......... 25,688 19,001 6,857 521 32 11,592 6,046 2,131 2,775 93 1,047 641 Mar.p.........j 28,326 21,359 6,572 507 54 14,225 6,329 2,347 2,779 137 1,065 639 1 Data exclude “holdings of dollars” of the IMF. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches, which were previously reported as deposits, are included in “Other.” in “Other short-term liabilities”; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities 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 11 Excludes central banks, which are included in “Official institutions.” quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop­ Note.—“Short term” refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the “holdings of dollars” IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti­ 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop­ 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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. June July Aug. Sept. Oct. Nov- Dec. Jan. Feb.* Mar.* Europe: Austria................................................... 272 297 305 302 292 204 166 161 210 279 327 Belgium-Luxembourg............................. 1,092 1,376 1,456 1,378 1,377 1,410 1,462 1,483 1,593 1,660 1,573 Denmark................................................ 284 489 477 437 409 470 527 659 527 456 380 163 194 165 153 145 135 136 165 178 160 169 France.................................................... 4,441 5,406 5,452 5,246 5,296 4,143 3,415 3,483 3,241 2,967 2,852 Germany................................................ 5,346 12,003 12,837 12,912 13,236 14,180 14,227 13,227 12,307 12,357 12,275 Greece.................................................... 238 219 240 236 215 280 236 389 262 238 343 Italy....................................................... 1,338 1,072 870 1,510 1,140 1,095 1,224 1,384 1,195 1,119 2,253 Netherlands............................................ 1,468 2,369 2,029 1,945 2,022 2,534 2,866 2,886 2,522 2,502 2,547 Norway.................................................. 978 1,049 1,082 1,055 1,024 999 980 965 961 962 993 Portugal................................................. 416 500 477 472 459 467 470 534 482 486 450 Spain...................................................... 256 334 282 237 259 284 319 305 264 304 267 Sweden................................................... 1,184 1,905 1,951 1,871 1,835 1,787 1,807 1,885 1,975 1,973 1,733 Switzerland............................................ 2,857 3,268 3,310 3,226 3,309 3,316 3,081 3,374 3,281 3,510 3,792 Turkey................................................... 97 75 102 115 72 83 75 102 221 146 96 United Kingdom................................... 5,011 6,317 6,457 5,943 5,593 6,416 6,482 6,148 6,440 6,184 7,390 Yugoslavia............................................. 117 66 66 57 58 61 76 86 77 94 78 Other Western Europe1........................ 1,483 2,360 2,965 3,015 3,099 3,427 2,926 3,352 3,125 3,009 2,946 U.S.S.R................................................... 11 11 18 17 16 40 20 22 26 20 29 Other Eastern Europe............................ 81 74 81 90 114 96 101 110 92 95 122 Total............................................... 27,134 39,383 40,621 40,216 39,970 41,425 40,597 40,722 38,982 38,521 40,615 Canada....................................................... 3,467 3,328 3,393 3,787 3,721 3,812 3,967 3,862 4,158 4,431 3,840 Latin America: Argentina............................................... 631 727 750 800 889 781 766 914 847 895 1,001 Bahamas 2............................................. 540 452 796 564 592 456 806 824 593 1,011 2,019 Brazil..................................................... 605 770 920 732 700 745 816 860 819 961 837 Chile....................................................... 137 140 134 126 127 137 142 157 178 174 185 Colombia............................................... 210 200 200 168 167 207 221 247 219 238 238 Cuba....................................................... 6 10 7 7 7 7 6 7 7 8 7 Mexico................................................... 831 925 919 975 1,044 1,029 1,132 1,284 1,323 1,343 1,322 Panama.................................................. 167 186 194 217 204 231 282 279 281 326 401 Peru........................................................ 225 180 190 177 178 152 124 135 144 154 159 Uruguay................................................. 140 180 128 126 114 115 112 120 120 115 121 Venezuela............................................... 1,078 1,055 1,067 1,079 941 1,130 1,420 1,468 1,460 1,636 1,737 Other Latin American republics............ 860 783 744 791 791 742 769 880 947 1,028 1,115 Netherlands Antilles and Surinam......... 86 68 78 61 65 70 63 71 69 61 69 Other Latin America............................. 44 649 408 403 463 532 556 361 470 790 638 Total................................................ 5,560 6,325 6,534 6,226 6,283 6,334 7,215 7,608 7,477 8,741 9,850 Asia: China, People’s Rep. of (China Mainland 39 41 38 43 40 37 40 38 38 39 38 China, Republic of (Taiwan).................. 675 846 790 810 802 779 764 757 735 715 641 Hong Kong............................................ 318 341 289 356 349 363 383 372 389 416 452 India....................................................... 98 110 141 103 99 105 71 85 152 183 133 Indonesia................................................ 108 155 176 140 254 169 160 133 186 175 240 Israel...................................................... 177 161 159 146 173 279 330 327 337 311 302 Japan..................................................... 15,843 8,458 8,126 8,003 7,680 7,061 6,726 6,954 6,417 7,440 8,305 Korea..................................................... 192 226 219 217 213 198 210 195 222 204 180 Philippines.............................................. 438 544 545 541 482 479 497 515 570 604 595 Thailand................................................. 171 175 146 140 143 163 180 247 336 471 607 1,071 883 958 1,139 1,165 1,139 1,138 1,202 1,306 1,196 1,445 Total................................................ 19,131 11,940 11,588 11,640 11,401 10,771 10,500 10,826 10,690 11,752 12,938 Africa: 24 29 29 41 34 34 63 35 72 72 52 Morocco................................................. 12 11 15 10 11 10 14 11 11 12 17 South Africa.......................................... 115 155 169 100 132 103 109 114 97 119 148 Zaire....................................................... 21 17 21 27 19 26 24 87 42 30 42 Other...................................................... 768 904 803 683 765 747 824 808 837 1,044 1,335 Total................................................ 939 1,118 1,037 862 961 919 1,034 1,056 1,059 1,277 1,593 Other countries: Australia................................................ 3,027 2,985 3,202 3,124 3,106 3,169 3,183 3,131 2,986 2,917 2,849 All other............................................... 51 71 61 57 62 59 55 59 74 66 60 Total................................................ 3,077 3,056 3,263 3,181 3,168 3,228 3,238 3,190 3,059 2,984 2,909 Total foreign countries.............................. 59,308 65,148 66,436 65,912 65,503 66,489 66,552 67,263 65,426 67,706 71,745 International and regional: International 3........................................ 951 1,149 1,099 1,125 1,183 1,402 1,610 1,628 1,537 1,404 863 Latin American regional........................ 307 329 309 289 298 299 290 271 256 228 218 Other regional4...................................... 156 89 81 72 70 66 62 57 64 63 62 Total............................................... 1,413 1,569 1,488 1,487 1,552 1,767 1,962 1,955 1,855 1,696 1,142 Grand total..................................... 60,722 66,717 67,924 67,398 67,056 68,256 68,514 69,218 67,281 69,402 72,888 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. □ MAY 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. Dec. Apr. Dec. 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 j 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 1970............................ 1,703 789 914 695 165 53 110 42 26 152 385 137 62 1971............................ 902 446 457 144 257 56 164 52 30 111 3 87 9 1972—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—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.................... 1,497 801 696 310 275 111 165 65 236 139 2 78 11 Feb.*................ 1,480 868 612 259 267 86 165 58 231 109 2 35 13 Mar.*............... 1,576 969 607 259 261 87 165 45 232 111 2 39 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

MAY 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 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.p Europe: Belgium-Luxembourg.................... 6 6 6 6 6 6 7 7 7 7 7 7 7 Sweden.......................................... 135 135 135 135 135 135 165 165 165 235 235 260 260 43 44 43 43 42 37 37 37 38 34 33 32 34 278 300 281 280 275 236 247 290 400 423 437 450 439 Other Western Europe.................. 79 79 85 85 85 85 85 85 85 86 91 91 90 Eastern Europe............................. 5 5 5 5 5 5 5 5 5 5 5 5 5 Total...................................... 546 569 555 554 547 504 546 588 700 789 808 845 835 561 561 560 560 560 560 560 560 567 567 582 817 832 Latin America: Latin American republics.............. 1 1 1 1 4 8 9 9 11 11 11 11 11 Other Latin America..................... 6 6 6 6 3 3 3 3 3 3 3 3 3 Total...................................... 7 7 7 7 7 11 12 12 14 14 14 14 14 Asia: Japan............................................. 5,961 5,978 5,978 5,977 5,977 5,949 5,950 5,950 5,143 4,552 4,066 3,718 3,703 Other Asia..................................... 10 10 10 10 9 9 11 11 11 11 11 11 11 Total...................................... 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 5,154 4,563 4,077 3,729 3,714 183 183 183 183 183 183 158 158 158 158 158 157 157 25 25 25 25 25 25 25 25 25 25 25 25 25 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 6,617 6,116 5,663 5,587 5,577 International and regional: International.................................. 186 176 142 72 1 1 21 6 1 1 20 51 217 Latin American regional............... 26 27 27 27 28 45 45 47 47 48 49 49 49 Total...................................... 212 202 169 100 29 46 66 53 48 49 69 100 267 Grand total............................ 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 6,665 6,164 5,732 5,687 5,844 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 1Korea T la h n a d i­ Total m G an e y r­ 2 e S r w la i n tz d ­ 197 0 3,563 2,480 32 2,289 20 100 1,083 542 541 197 1 3 9,657 7,829 32 2,640 20 5,000 100 3 1,827 612 1,215 197 2 15,872 14,333 20 2.840 20 11,315 100 1,539 306 1,233 1973—Apr. 416,015 14,459 20 2.840 5 11.471 100 41,556 172 1.384 May 16,012 14,456 20 2.840 2 11.471 100 1.556 172 1.384 June. 16,189 14,633 2.840 11.670 100 1.556 172 1.384 July. 16,089 14,533 2.840 11.670 1.556 172 1.384 Aug. 16,015 14,383 2,690 11.670 1.631 172 1.458 Sept. 15,813 14,183 2,490 11.670 1.631 172 1.458 Oct.. 15.691 14.233 2.540 11.670 1.458 1.458 Nov. 15.692 14.233 2.540 11.670 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 Apr. 15,682 14.210 2.540 11.670 1,472 1,472 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 obligations 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. □ MAY 1974 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1973 1974 Area and country Dec. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: Austria.................................................... 8 12 10 18 14 15 14 11 14 36 20 Belgium-Luxembourg............................ 120 94 96 107 190 150 145 148 134 143 216 Denmark................................................ 59 69 56 67 52 50 53 48 50 60 76 Finland................................................... 118 141 134 125 114 97 89 108 106 93 97 France.................................................... 330 389 434 368 413 461 525 621 649 682 743 Germany................................................ 321 399 349 281 313 366 392 311 342 382 395 Greece.................................................... 29 19 28 20 16 26 23 35 41 36 37 Italy........................................................ 255 326 278 278 242 282 363 316 313 330 495 Netherlands............................................ 108 109 101 155 144 132 172 133 139 147 174 Norway.................................................. 69 65 79 70 67 74 82 72 85 91 76 Portugal................................................ 19 19 18 14 18 23 22 23 25 25 37 Spain....................................................... 207 387 272 251 183 183 189 222 208 180 284 Sweden................................................... 164 234 224 184 166 155 177 153 135 106 121 Switzerland............................................. 125 245 208 206 234 242 203 176 240 338 260 Turkey.................................................... 6 9 7 6 6 8 16 10 11 9 16 United Kingdom................................. 997 1,025 1,077 1,357 1,304 1,236 1,178 1,456 1,490 1,621 2,009 Yugoslavia.............................................. 22 12 12 10 10 8 19 10 9 15 12 Other Western Europe........................... 20 29 20 21 26 34 26 27 19 20 22 U.S.S.R................................................... 41 56 56 42 46 49 51 46 29 36 33 Other Eastern Europe.......................... 49 73 84 83 97 87 72 59 64 65 80 Total................................................ 3,067 3,710 3,542 3,664 3,654 3,678 3,811 3,985 4,104 4,416 5,203 Canada....................................................... 1,914 2,034 2,168 2,186 1,909 2,210 1,979 1,960 1,880 2,037 2,243 Latin America; Argentina............................................... 379 408 431 442 455 469 485 498 521 539 679 Bahamas 1.............................................. 515 448 518 484 619 698 608 873 577 1,041 1,284 Brazil..................................................... 649 891 965 915 879 837 826 900 953 958 1,112 Chile...................................................... 52 43 36 50 40 80 125 151 136 155 180 Colombia............................................... 418 412 420 422 423 423 413 397 425 428 459 Cuba....................................................... 13 14 13 13 13 15 13 12 11 11 13 Mexico................................................... 1,202 1,406 1,386 1,348 1,329 1,388 1,357 1,370 1,344 1,418 1,423 Panama.................................................. 244 218 223 262 252 273 263 266 294 297 345 Peru........................................................ 145 169 180 176 178 208 204 178 186 184 194 Uruguay................................................. 40 34 34 35 39 45 47 55 58 51 44 Venezuela............................................... 383 454 454 441 430 436 469 517 482 510 586 Other Latin American republics............ 388 380 373 394 409 431 465 490 542 546 600 Netherlands Antilles and Surinam......... 14 38 48 38 31 23 17 13 17 19 29 Other Latin America............................. 36 66 71 91 91 137 124 140 356 461 268 Total............................................... 4,476 4,981 5,153 5,111 5,187 5,464 5,417 5,861 5,904 6,619 7,216 Asia: China, People’s Rep. of (China Mainland) 1 3 7 6 7 22 36 31 24 19 27 China, Republic of (Taiwan)................. 194 200 198 183 141 128 117 140 119 147 183 Hong Kong............................................ 93 204 218 116 128 121 124 147 169 189 172 India....................................................... 14 21 18 17 19 14 16 16 16 15 19 Indonesia................................................ 87 94 91 77 81 89 96 88 105 107 97 Israel...................................................... 105 111 133 133 145 145 155 166 153 140 165 Japan..................................................... 4,152 5,751 5,753 5,791 5,801 5,745 6,033 6,400 6,466 6,960 7,855 Korea..................................................... 296 347 348 336 348 372 368 401 432 477 502 Philippines.............................................. 149 144 134 129 121 105 118 181 189 182 197 Thailand................................................. 191 173 188 185 179 206 225 273 322 364 405 Other...................................................... 300 354 352 350 361 349 377 394 466 560 521 Total................................................ 5,584 7,401 7,441 7,321 7,330 7,295 7,664 8,237 8,463 9,159 10,142 Africa: Egypt...................................................... 21 34 44 41 43 38 40 35 42 40 42 Morocco................................................. 4 4 5 5 11 4 7 5 4 4 21 South Africa.......................................... 143 163 150 151 157 150 147 129 133 134 131 Zaire....................................................... 13 42 43 49 48 51 61 60 56 67 61 Other...................................................... 118 145 149 173 146 163 155 159 178 175 210 Total............................................... 299 388 391 419 405 406 410 388 413 420 466 Other countries: Australia................................................ 291 260 271 230 218 223 251 243 279 268 328 All other................................................. 40 46 40 41 36 36 36 43 37 49 64 Total............................................... 330 305 310 271 254 259 287 286 316 317 392 Total foreign countries............................... 15,670 18,820 19,005 18,973 18,739 19,312 19,569 20,716 21,080 22,967 25,663 International and regional......................... 3 1 2 1 1 1 1 1 1 1 1 Grand total..................................... 15,672 18,821 19,007 18,974 18,739 19,313 19,570 20,717 21,081 22,968 25,664 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

MAY 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 Loans to— C t o io ll n e s c­ A a m c n c a c e d e p e s t ­ Deposits g c F o u o v r r i t e t , i i e g s s e n , ­ Total Total O in t f i s f o t i n i c t i s u a ­ l Banks1 Others st o i a n u n g t d ­ ­ f e o o i r f g n a fo c e c r r s ­ t. Other Total w e i i t g h n e f r o s r­ a n c n o a d n m c f l e i . ­ Other paper 1970............................. 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1071 2 /13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 113,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1070 1 /15,471 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—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.................... 21,081 20,279 7,413 303 4,429 2,680 4,386 4,107 4,373 802 467 162 173 Feb.*................ 22,968 22,124 8,088 303 4,992 2,792 4,288 4,554 5,195 844 594 121 129 Mar.*............... 25,664 24,817 9,082 421 5,808 2,853 4,641 5,125 5,969 846 543 160 144 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 End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n o in i 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 r r ies Official Other term cies Total institu­ Banks i 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 (4,954 4,539 833 430 3,276 375 40 145 704 406 1,996 319 881 503 19722............... \5,025 4,550 836 430 3,285 435 40 145 701 406 2,012 348 900 514 1973—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....... 5,803 5,252 1,115 559 3,578 472 79 137 1,102 484 2,033 253 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 Mar.* .. 6,054 5,436 1,225 642 3,569 542 76 146 1,263 473 2,131 250 1,298 493 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. o MAY 1974 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign 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 ­ c P ha u s r e ­ s Sales c N ha s 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 h e s a t a s l e e p s s u o r r ­ regional Total Official Other 197 1 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 197 2 3,316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 409 197 3 290 -165 455 450 6 18,569 13,846 4,723 1,471 2,454 -983 1,729 1,554 176 1974—Jan.-Mar.*, -320 218 -539 -509 -30 4,614 4,143 471 274 907 -633 563 595 -33 1973—Ma r 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—Ja...............n -432 20 -452 -472 19 1,722 1,458 264 71 364 -292 209 207 2 Feb.*......... -45 31 -77 -37 -39 1,223 1,213 10 100 145 -45 187 205 -18 Mar.*........ 157 166 -10 -10 1,669 1,472 198 102 398 -296 167 183 -16 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. age 2 n I c n i c e l s u d a e n s d S c ta o t r e p o a r n a d t io lo n c s a . l A go ls v o t, i s n e c c l u u r d it e i s e s, i s a su n e d s s o ec f u n ri e t w ie s d o e f b t U . s S e . c u G ri o ti v e t s , org N aontizea .— ti - o S n t s a . tistics include transactions of international and regional 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.-Mar.* 2,608 2,230 377 120 -17 128 107 35 82 455 -49 -32 -6 8 1973—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........... 974 801 173 68 4 37 43 27 23 201 -27 -42 33 9 Feb.*....... 741 585 156 39 5 52 40 -5 33 163 * 1 -9 1 Mar.*....... 893 844 49 14 -26 40 24 14 25 91 -21 9 -29 -1 1 Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 o 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) Period Total France 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 35 -1 197 327 39 612 37 19 -2 * -21 39 197 2 1,871 336 77 74 135 357 315 1,293 82 22 323 2 * 148 197 3 1,924 201 -33 -19 307 275 475 1,206 49 44 588 « 10 26 1974—Jan.-Mar.* 94 5 25 -3 29 93 -30 118 11 2 -224 * * 186 1973—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 1 -5 57 10 94 -1 4 2 * * 24 Sept.. -2 2 « • -1 14 12 26 -1 1 11 * * -39 Oct... -25 53 * 1 46 -14 1 87 4 1 1 * * -118 Nov.. -151 4 11 -2 28 76 7 124 -21 3 -209 * * -48 Dec... -15 9 10 4 37 60 32 152 • 16 -183 * 1 1974—Jan... 91 3 25 * 23 117 -9 159 14 1 -104 * * 20 Feb.*. -146 1 * * * 44 -15 30 -2 -5 -119 * * -49 Mar.* 149 1 * -2 6 -69 -6 -71 -1 6 -1 * * 215 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 1971—Mar.......................... 511 314 June.......................... 419 300 1974-Jan-Mar* -666 6 -671 -181 -503 -26 38 -5 6 Sept.......................... 333 320 311 314 1973—Mar.... 116 23 93 24 34 8 27 * 1 Apr.... -166 16 -182 22 -193 -6 -5 * * 325 379 May. .. 2 11 -9 -21 -13 6 6 -1 14 June......................... 312 339 June... 34 7 27 10 6 13 -13 1 9 286 336 July.... -105 3 -108 -13 -93 -13 9 * 2 372 405 Aug.... -69 5 -75 -21 -44 -4 -8 * 3 Sept.... -25 4 -28 -28 8 -8 -1 * 2 1973—Mar.......................... 310 364 Oct....... -240 4 -243 -25 -148 — 8 — 64 1 1 June.......................... 316 243 Nov... -225 9 -234 -47 -78 -6 -104 * * 290 255 Dec.... -50 51 -101 -45 -11 -15 -34 2 3 333 231 1974—Jan...... -291 -4 -287 -81 -204 -2 -1 -1 2 F M eb a . r * .* . . . . -3 -6 1 3 2 4 6 -3 -6 1 9 5 - - 7 2 6 4 -2 -1 8 1 8 -1 -9 5 2 1 9 0 -4 * 3 1 mo N n o ey te d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in g m o o n ne t y h e c r b e o d o i k t s b o al f a r n e c p e o s r t a i n n d g brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried bv foreigners. NOTES TO TABLES 21A AND 21B ON FOLLOWING PAGES: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $23,649 million and $24,023 million, respectively, on Feb. 28, 1974. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 1974 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies.......................... 1971—Dec.*-__ 61 25: 4,791 2,31Gl 2,481 54,67J1 11,210 24,525 1,167 17,775 1,784 1972—Dec.r__ 80,034 4,735 2,124, 2,611 73,031 11,717 36,738 1,665 22,910I 2,268 1973—Jan........... 81,19S 4,926 2,327' 2,60C) 74,006> 11,945 36,797 1,621 23,643 2,267 Feb......... 87,901 4,325 1,565: 2,76C) 81,06'f 12,272 42,203 1,747 24,846i 2,509 Mar........ 91,646 4,296 1,988 2,3081 84,37() 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: 85,57'' 13,490 42,746 2,004 27,337 3,199 June......... 98,756 4,955 2,333 2,622: 90,20'* 13,528 46,277 1,900 28,501 3,594 July.......... 103,793 5,404 2,505: 2,8991 94,583I 15,316 47,555 2,035 29,678 3,806 Aug.......... 105,194 5,158 2,291 2,868! 95,991' 15,667 47,414 2,108 30,809 4,039 Sept.......... 110,673 4,853 1,917 2,936i 101,022t 17,194 49,312 2,242 32,274 4,797 Oct........... 114,025 4,847 1,832 3,016i 104,464 18,118 51,011 2,336 32,999 4,714 Nov.......... 120,60C 5,895 2,915 2,980)109,05' 18,866 53,813 2,208 34,170i 5,648 Dec.r....... 122,601 4,887 1,887 3,000i112,943 19,148 56,333 2,504 34,958 4,772 1974—Jan........... 123,791 4,605 1,552 3,054 114,602 19,456 56,981 2,732 35,432, 4,584 Feb........... 127,050 4,695 1,893 2,802:117,314 20,317 57,032 2,952 37,013 5,041 Payable in U.S. dollars...................... 1971—Dec.r....... 40,137 4,534 2,303 2,231 35,026 6,658 17,986 864 9,518 577 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 May......... 58,019 3,930 1,899 2,031 52,871 8,548 28,677 1,140 14,506 1,218 June......... 61,843 4,602 2,285 2,317 55,885 8,493 31,261 1,129 15,003 1,356 July.......... 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.......... 75,934 5,421 2,855 2,566 68,730 12,277 36,092 1,401 18,959 1,783 Dec.r....... 79,935 4,432 1,849 2,583 73,725 12,770 39,375 1,586 19,993 1,778 1974—Jan........... 81,838 4,166 1,515 2,651 75,942 13,211 39,977 1,847 20,906 1,730 Feb........... 83,730 4,311 1,838 2,473 77,524 13,745 40,058 2,019 21,702 1,896 IN UNITED KINGDOM Total, all currencies............................ 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.......... 62,294 2,285 1,245 1,040 57,146 8,552 34,059 701 13,834 2,863 Dec.r....... 62,050 1,789 738 1,051 58,075 8,773 34,661 735 13,905 2,186 1974-Jan........... 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 2,087 Feb........... 63,582 1,477 616 861 59,789 9,209 34,810 916 14,853 2,317 Payable in U.S. dollars...................... 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.......... 39,321 2,098 36,386 6,273 22,786 7,328 838 Dec.r....... 40,475 1,642 37,967 6,509 24,009 7,449 866 1974—Jan........... 42,131 1,368 39,932 6,825 25,098 8,010 830 Feb........... 41,759 1,384 39,406 6,902 24,412 8,093 969 IN BAHAMAS AND CAYMANS i —v---------------✓ Total, all currencies............................ 1971— Dec. r 8,475 1,282 505 777 7,101 3,784 3,316 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 19,138 10,801 8,337 579 Dec.r....... 24,085 2,001 313 1,688 21,613 12,537 9,075 471 1974—Jan............ 24,047 2,011 228 1,783 21,556 12,210 9,347 479 Digitized for FRASER » Feb...........J*25,628 1,882 170 1,713 23,233 13,262 9,970 513 http://fraser.stloFuoirs nfeotde.so srege/ p. A-77. Federal Reserve Bank of St. Louis

MAY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) 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 61,255 3,107 662 5 56,051 10,743I 31,059 5,513l 8,735! 2,097r..........1971—Dec. *• .. .Total, all currencies 80,035 3,559 1,000 9 73,842 11,344\ 42,531 8,486i 11,483i 2,634^..........1972—Dec. 81,199 3,414 836 8 75,36C 11,746i 42,347 9,236i 12,032’ 2,425i..........1973—Jan. 87,901 3,967 1,132 5 80,998 11,868! 46,520i 9,387' 13,223i 2,936i.....................Feb. 91,646 4,137 1,218 9 84,253 12,219► 48,707 9,454\ 13,873i 3,256 90,987 4,095 1,044 1 83,55^ 12,638! 48,083 9,538! 13,294^ 3,338 92,994 4,548 1,122 6 84,861 13,284!■ 48,728 9,344t 13,505i 3,586 98,756 4,579 1,009 9 90,321 13,315i 53,557 9,593i 13,837' 3,857 103,793 4.465 1,213 3 95,162 15,04C1 55,880i 9,6761 14,519> 4,165 105,193 4,710 1,085 5 96,108 16,031 56,321 8,587r 15,148! 4,375 110,673 4,819 1,183 7 100,987 17,017' 59,266 8,769• 16,221 4,866 114,026 4,762 1,307 5 104,397 17,654• 61,117 9,22C1 16,372: 4,924 120,600 4.858 1, * 1 109,915 18,109> 65,526 9,692! 16,589' 5,827 .....................Nov.r 122,601 5,093 1,181 2 112,356 18,456> 66,230 10,031 17,638 5,153 123,791 5,311 1,731 1 113,709 18,672; 67,805 9,455! 17,777 4,771 ..........1974—Jan. 127,053 5,873 2,031 2 116,249 19,13Ci 67,819 10,020I 19,280i 4,931 .....................Feb. 41,980 2,670 507 3 38,034 6,624 22,050 4,433 4,928 1,276 ..........1971—Dec. »• .Payable in U.S. dollars 56,375 3,104 848 6 51,811 8,178 30,253 6,913 6,467 1,459 56,404 2,995 693 2 52,113 8,400i 29,233 7,680i 6,800i 1,297 ..........1973—Jan. 60,814 3.466 954 1 55,78( 8,750i 32,023 7,808 7,200i 1,568 ......................Feb. 62,430 3,613 1,038 5 57,127 8,735 33,131 7,771 7,489 1,691 60,915 3,562 886 6 55,604 8,657 31,970 7,743 7,234 1,750 61,427 4,005 955 0 55,636 8,810i 32,263 7,374 7,190 1,786 64,660 4,035 868 7 58,781 8,774 35,470 7,354 7,183 1,844 66,335 3,868 1,046 3 60,520 9,626i 36,263 7,114 7,517 1,947 .....................July 67,401 4,158 943 5 61,075 10,641 36,594 6,263 7,577 2,167 70,314 4,233 1,022 I 63,756 11,036 38,212 6.366 8,142 2,325 72,046 4,213 1,146 3 65,537 11,713 38,838 6,475 8,510 2,296 77,983 4,268 929 9 70,536 12,261 43,001 6,430 8,844 3,179 4,509 1,104 5 73,726 12,809 44,138 7,258 9,522 2,613 82,141 4,813 1,602 74,841 12,906 44,961 7,080 9,895 2,487 ..........1974—Jan. 84,348 5,370 1,878 2 76,529 13,109 44,698 7,710 11,013 2,449 .....................Feb. IN UNITED KINGDOM 34,552 1,660 111 ) 32,128 3,401 19,137 4,464 5,126 763...........1971 Dec. ... Total, all currencies 43,684 1,456 113 5 41,232 2,961 24,776 6,453 7,042 997 44,347 1,501 107 \ 41,933 3,277 23,959 7,285 7,412 913 48,533 1,844 264 ) 45,628 3,157 27,038 7,517 7,915 1,062 49,696 1.858 235 1 46,750 3,164 28,119 7,388 8,078 1,088 49,181 1,970 165 5 46,075 3,397 27,796 7,509 7,373 1,136 49,080 2,028 170 1 45,792 3,614 27,168 7,324 7,685 1,260 51,415 1,957 122 > 48,145 3,321 29,332 7,585 7,907 1,313 54,265 1,875 164 I 50,973 3,883 31,029 7,817 8,245 1,418 .....................July 53,153 2, 171 ) 49,562 3,731 30,502 6,753 8,575 1,512 56,127 2,125 161 1 52,238 4,118 32,210 6,952 8,957 1,764 57,589 2,031 134 1 53,748 4,036 33,531 6,999 9,182 1,809 62,294 2,198 143 j 57,434 3,886 36,348 7,700 9,500 2,662 62.050 2,431 136 1 57,623 3,944 35,332 8,076 10,272 1,995 63,757 2,429 346 1 59,356 4,350 37,003 7,672 10,332 1,971 ..........1974—Jan. 63,585 2,573 269 I 58,956 4,193 35,489 8,160 11,112 2,057 .....................Feb. 24,845 1,412 23 » 23,059 2,164 14,038 3,676 3,181 374...........1971 Dec. . . Payable in U.S. dollars 30,933 1,276 72 29,121 2,008 17,478 5,349 4,287 536..........1972 Dec. 30,926 1,335 72 29,091 2,234 16,205 6,162 4,490 500 33.966 1,661 226 31,714 2,188 18,360 6,394 4,771 591 33.929 1,676 195 1,481 31,655 2,128 18,334 6,251 4,942 598 33.050 1,735 119 1,616 30,782 2,318 17,672 6,245 4,546 533 32,148 1,809 138 1,671 29,730 2,225 16,982 5,897 4,626 608 33,584 1,731 102 1,629 31,278 2,234 18,390 5,990 4,663 575 33,901 1,661 148 1,513 31,645 2,316 18,723 5,868 4,739 595 .....................July 33,077 1,846 148 1,698 30,549 2,213 18,671 5,005 4,660 682 35,017 1,866 137 1,729 32,342 2,245 19,949 5,126 5,022 809 35,469 1,836 108 1,727 32,902 2,515 20,383 4,809 5,194 732 39,735 1,940 119 1,821 36,239 2,468 23,189 4,983 5,598 1,557 39,831 2,173 113 2,061 36,816 2,519 22,289 5,852 6,156 841 41,009 2,200 329 1,871 37,884 2,846 22,978 5,799 6,262 925 ..........1974—Jan 40.930 2,346 243 2,103 37,579 2,729 21,464 6,342 7,044 1,006 .....................Feb. IN BAHAMAS AND CAYMANS i 8,477 750 7,539 1,649 4,766 1,124 188 ..........1971—Dec. r . . .Total, all currencies 13,091 1,220 11,703 1,964 8.395 1,344 168 ..........1972—Dec. 13,064 1,137 11,760 1,875 8,502 1,383 167 ..........1973—Jan. 13,559 1,186 12,144 2,223 8.394 1,527 230 .....................Feb. 13,765 1,304 12,194 1,830 8,829 1,536 267 13,653 1,126 12,138 1,977 8,505 1,656 389 14,730 1,404 12,981 2,238 9,259 1,483 345 16,184 1,480 14,370 2,579 10,410 1,381 334 June 17,086 1,348 15,406 3,002 10,762 1,642 331 ...................July 19.966 1,521 18,026 4,227 11,982 1,817 419 21,072 1,608 18,856 4,639 12,322 1,895 608 21,399 1,667 19,151 4,924 12,249 1,978 581 . 22,244 1,559 20,089 5,085 13,239 1,765 596 24,085 1,518 22,109 5,526 14,764 1,819 458 24,046 1,848 21,758 5,293 14,547 1,917 441 .........1974—Jan. Digitized f2o2r5 ,F6R28ASER 2,166 22,997 5,617 15,223 2,158 465 . http://fraser.Fsotrlo nuoitsefse sdee.o pr.g A/ -77. Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 1Liab. plus Wednesday Liabilities 1 Wednesday Liabilities 1 Wednesday Liabilities 1 sec.2 1968 1972 1973 1974 Mar. 27...................... 4,920 Jan. 26.. 1,419 Aug. 1.. 2,226 Jan. 2.. 1,158 June 26...................... 6,202 Feb. 23.. 1,068 8.. 2,276 9.. 1,322 Sept. 25...................... 7,104 Mar. 29.. 1,532 15.. 1,900 16.. 2,040 Dec. 31 (1/1/69)........ 6,039 22.. 2,446 23.. 2,004 Apr. 26.. 1,374 29.. 2,802 30.. 1,686 1969 May 31.. 1,465 June 28.. 1,443 Sept. 5.. 1,512 Feb. 6.. 1,659 Mar. 26........................ 9,621 12.. 1,942 13.. 2,218 June 25....................... 13,269 July 26.. 1,345 19.. 1,801 20.. 1,741 Sept. 24....................... 14,349 Aug. 30.. 1,270 26.. 1,731 27.. 1,689 Dec. 31....................... 12,805 Sept. 27.. 2,023 Oct. 3.. 1,695 Mar. 6.. 1,610 1970 Oct. 25.. 1,415 10.. 1,790 13.. 2,274 Nov. 29.. 1,745 17.. 1,814 20.. 2,459 Mar. 25....................... 11,885 Dec. 27.. 1,406 24.. 1,642 27.. 2,964 June 24....................... 12,172 31.. 1,768 Sept. 30....................... 9,663 1973 Apr. 3.. 2,720 Dec. 30....................... 7,676 Nov. 7.. 1,754 10.. 2,914 Jan. 31.. 1,413 14.. 1,870 17.. 3,020 1971 Feb. 28.. 790 21.. 2,473 24.. 2,495 Mar. 28.. 1,127 28.. 2,458 Mar. 31........................ 2,858 4,358 June 30........................ 1,492 4,500 Apr. 25.. 1,123 Dec. 5.. 1,911 Sept. 29........................ 2,475 3,578 May 30.. 1,351 12.. 1,938 Dec. 29........................ 909 June 27.. 1,521 19.. 2,382 July 25.. 2,086 26.. 1,703 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 i 1971............. 294 43,195 13,815 1972............. 325 50,934 215,530 196 9 1,491 1,062 161 183 86 663 534 197 0 1,141 697 150 173 121 372 443 1973—A M p a r y . . . . . 2 3 8 2 9 8 3 5 5 8 8 , , 0 2 1 55 5 1 1 5 5, , 5 5 1 1 1 3 1971—Dec.2 . .. / \ l 1 , ,5 6 0 48 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 58 7 0 7 4 5 4 8 3 7 June.. 334 57,545 15,486 July... 280 57,054 15,464 /l,965 1,446 169 307 42 702 485 Aug... 259 55,855 15,455 1972—Dec.2.... \2,255 1,792 55 340 68 872 535 Sept... 250 55,407 15,437 Oct.... 426 54,766 417,122 1973—Fe...........b 3,002 2,228 170 380 224 1,017 1,093 Nov... 420 52,998 17,104 Mar........ 3,087 2,292 156 414 225 1,105 969 Dec.... 251 52,070 17,068 Apr......... 3,047 2,278 118 416 234 1.044 887 May....... 3,194 2,420 130 433 211 1,010 1,011 1974—Jan.... 392 49,582 17,044 June....... 3,209 2,549 74 453 134 1,064 882 Feb... 542 50,255 17,039 July........ 3,272 2,494 136 475 167 1,070 959 Mar... 366 51,342 17,037 Aug........ 3,361 2,585 82 486 209 1,068 940 Apr... 517 52,642 17,026 Sept........ 3,224 2,510 78 476 161 1,088 891 Oct......... 2,907 2,244 66 449 148 992 881 Nov........ 3,152 2,517 64 435 136 1.044 922 1 Marketable U.S. Treasury bills, certificates of in­ Dec........ 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—Ja n 2,804 2,234 52 363 154 1,047 770 currencies. Feb......... 3,171 2,489 65 414 203 1,174 2 The value of earmarked gold increased because of the change in par value of the U.S. dollar in May 1972. 3 Includes $15 million increase in Mar. and $160 million 1 Negotiable and other readily transferable foreign obligations payable on demand increase in Apr. in dollar value of foreign currency obliga­ or having a contractual maturity of not more than 1 year from the date on which the tions revalued to reflect market exchange rates. obligation was incurred by the foreigner. 4 The value of earmarked gold increased because of the 2 Data on the two lines for this date differ because of changes in reporting coverage. change in par value of the U.S. dollar in Oct. 1973. 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. Note.—Excludes deposits and U.S. Treas. securities m he a ld rk e f d o r g i o n l t d e r i n s a t g i o o l n d a l h e a l n d d fo re r g f io o n re a i l g n o r a g n a d n iz i a n t t i e o r n n s a . t io E n a a r l ­ 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 a n s 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 accounts and is not included in the gold stock of the nonbanking concerns in the United States and are included in the figures shown in United States. Tables 25 and 26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ 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.r Mar.r Juner Sept. Dec.* Dec.r Mar. June Sept. Dec * Europe: Austria................................................. 2 3 2 2 3 19 14 17 15 17 Belgium-Luxembourg.......................... 83 75 81 129 131 73 121 109 112 105 Denmark............................................. 7 8 19 18 9 29 26 20 21 46 Finland................................................ 4 4 4 7 7 25 21 21 31 44 France................................................. 167 161 165 165 168 228 288 315 275 303 Germany, Fed. Rep. of....................... 157 147 182 193 229 195 245 273 265 283 Greece................................................. 15 19 24 33 35 35 36 40 52 51 Italy.......... ........................................ 121 107 103 108 116 202 204 201 201 240 Netherlands......................................... 109 102 113 115 134 84 101 96 119 118 Norway............................................... 14 14 13 10 9 16 18 19 21 18 Portugal............................................... 4 5 4 12 13 19 19 25 24 50 Spain................................................... 81 82 72 79 77 157 159 140 169 245 Sweden................................................. 13 23 25 32 47 57 45 49 53 70 Switzerland.......................................... 111 134 88 147 108 82 87 90 64 100 Turkey................................................. 4 3 3 6 14 48 23 14 17 33 United Kingdom................................. 1,063 901 747 833 928 1,184 1,426 1,402 1,491 1,488 Yugoslavia........................................... 7 16 17 22 28 12 14 18 21 49 Other Western Europe........................ 2 2 3 3 3 12 9 9 12 15 Eastern Europe.................................... 3 6 22 24 31 42 40 92 73 104 Total............................................. 1,967 1,812 1,687 1,938 2,090 2,519 2,897 2,951 3,035 3,380 Canada.................................................... 215 268 250 236 255 965 1,366 1,305 1,339 1,255 Latin America: Argentina............................................. 29 30 24 24 38 79 74 60 65 75 Brazil................................................... 35 42 47 42 64 172 176 183 208 230 Chile.................................................... 18 17 13 13 20 34 31 29 34 42 Colombia............................................. 7 8 7 8 9 39 40 36 43 40 Cuba.................................................... 1 * * * * 1 1 1 1 1 Mexico................................................. 27 34 37 36 44 181 194 203 185 235 Panama................................................ 18 17 18 17 13 85 84 83 102 124 Peru..................................................... 4 4 6 10 15 36 33 34 37 47 Uruguay............................................... 7 5 3 2 2 4 5 5 5 5 Venezuela............................................ 21 23 23 24 50 92 107 101 104 143 Other L.A. republics........................... 45 46 47 58 67 95 96 103 127 134 Bahamas 1............................................ 371 310 415 364 419 585 571 766 746 630 Neth. Antilles and Surinam................ 10 10 11 7 6 13 12 11 9 12 Other Latin America........................... 4 9 19 20 22 34 44 90 105 213 Total............................................. 595 555 670 626 768 1,450 1,467 1,705 1,771 1,930 Asia: China, People’s Republic of (China Mainland)........................................ 32 32 31 36 42 * 1 11 48 11 26 33 35 31 32 65 62 77 77 120 Hong Kong.......................................... 12 17 13 18 15 33 33 36 38 41 India.................................................... 7 7 7 7 14 34 32 29 32 36 Indonesia............................................. 16 16 15 15 14 48 53 51 58 61 Israel.................................................... 13 16 9 11 24 31 34 27 28 40 Japan................................................... 213 244 283 345 296 475 520 506 641 837 Korea................................................... 21 19 18 20 37 68 53 46 56 109 Philippines........................................... 16 26 20 17 17 59 63 64 70 73 Thailand.............................................. 5 5 6 6 6 23 25 24 28 28 Other Asia........................................... 152 156 140 179 240 206 195 207 207 238 Total............................................. 513 571 577 684 737 1,042 1,072 1,079 1,283 1,594 Africa: Egypt................................................... 32 37 20 11 25 16 25 23 28 18 South Africa........................................ 8 6 6 6 14 52 56 51 60 62 Zaire.................................................... 1 12 12 19 19 8 16 15 19 19 Other Africa........................................ 62 67 67 97 128 93 89 97 95 128 Total............................................. 104 121 105 134 186 170 184 187 202 228 Other countries: Australia.............................................. 45 54 72 94 118 83 81 75 90 97 All other.............................................. 14 11 11 9 13 23 24 26 22 25 Total............................................. 59 65 83 103 131 107 105 101 111 122 International and regional...................... * * * * * 1 1 1 * 1 Grand total................................... 3,453 3,392 3,373 3,720 4,167 6,254 7,092 7,329 7,742 8,510 1 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. □ MAY 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 a la 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—Dec...................... 2,124 1,654 471 4,159 3,532 244 383 2,387 1,843 543 4,457 3,868 234 355 2,512 1,956 557 4,361 3,756 301 305 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 T\ i / 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 r................. / 3,119 2,635 484 5,723 5,074 411 238 \ 3,453 2,942 511 6,254 5,576 396 282 1973—Mar.'.................. 3,392 2,871 522 7,092 6,191 464 437 Juner ................ 3,373 2,795 579 7,329 6,468 503 358 Sept..................... 3,720 3,001 720 7,742 6,791 535 416 Dec.*.................. 4,167 3,391 777 8,510 7,576 487 447 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 2 7. LONG TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period lia T b o il t i a ti l es 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 A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th l e l r 1969—Dec....................... 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970—Mar...................... 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June...................... 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept...................... 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec....................... 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar....................... 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June...................... 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept....................... 2,939 3,019 135 672 765 178 60 597 133 319 85 75 / 3,159 3.118 128 705 761 174 60 652 141 327 86 85 Dec.1................... 1 3,138 3.118 128 705 767 174 60 653 136 325 86 84 1972—Mar....................... 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June...................... 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept....................... 3,448- 3,235 128 695 805 177 63 661 132 389 89 96 Dec.1 r.................. J 3,540 3,370 163 715 833 184 60 659 156 406 87 109 \ 3,866 3,493 187 758 868 187 64 703 134 399 82 111 1973—Mar.r.................... 4,045 3,635 151 816 882 165 63 796 124 413 101 125 June r.................... 4,030 3,708 174 823 893 146 65 819 138 416 104 131 Sept....................... 4,253 3,860 211 840 894 147 73 827 152 475 104 137 Dec.*.................... 4,115 3,962 284 794 972 145 80 820 141 471 112 144 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1974 □ 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 e e r u m ts a c n h y e mark) 1970............................................................................ 111.36 3.8659 2.0139 95.802 13.334 23.742 18.087 27.424 1971............................................................................ 113.61 4.0009 2.0598 99.021 13.508 23.758 18.148 28.768 1972............................................................................ 119.23 4.3228 2.2716 100.937 14.384 24.022 19.825 31.364 1973............................................................................ 141.94 5.1649 2.5761 99.977 16.603 26.165 22.536 37.758 1973—Apr................................................................... 141.50 4.8330 2.4895 99.928 r16.098 25.872 21.959 35.252 141.50 4.9082 2.5356 99.916 16.241 25.277 22.341 35.841 141.58 5.2408 2.6643 100.160 17.130 26.731 23.472 38.786 July.................................................................. 141.78 5.8124 2.8151 100.049 18.041 27.202 24.655 42.821 141.48 5.5917 2.7035 99.605 17.521 27.314 23.527 41.219 146.83 5.5695 2.7089 99.181 17.480 27.042 23.466 41.246 148.22 5.5871 2.7328 99.891 17.692 27.202 23.718 41.428 148.22 5.2670 2.5882 100.092 16.744 26.894 22.687 38.764 Dec.................................................................. 148.33 5.1150 2.4726 100.058 16.089 26.104 21.757 37.629 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 Apr.................................................................. 148.41 5.3345 2.5686 103.356 16.496 26.744 20.541 39.594 Period (r I u n p d e ia e) ( I p r o el u a n n d d ) ( I l t i a r l a y ) J ( a y p en an ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u l i a e l n t d h d e ­ s r) Z (d e N o a e l l l a w a n r) d 1970............................................................................ 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 111.48 1971............................................................................ 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 113.71 1972............................................................................ 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 119.35 1973............................................................................ 12.071 245.10 .17192 .36915 40.988 8.0000 35.977 136.04 1973—13A.2p5r5..........2..4..8....3..7.............1..6..9.7..1.............3..7..6..6..6........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 Nov.................................................................. 12.767 238.70 .16904 .35941 41.838 8.0000 37.267 147.74 Dec................................................................... 12.328 231.74 .16458 .35692 41.405 8.0000 35.615 144.34 1974—Jan................................................................... 11.854 222.40 .15433 .33559 40.094 8.0000 34.009 139.08 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 Apr................................................................... 12.711 238.86 .15720 .36001 41.959 8.0000 37.416 145.12 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 ic d th 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 r w l a a i n n tz c d ­ ) U K d n i o n i m t g ed ­ (pound) 13.992 3.4978 139.24 1.4280 16.774 19.282 23.199 239.59 14.205 3.5456 140.29 1.4383 16.800 19.592 24.325 244.42 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—Apr................................................................... r16.905 3.9563 141.70 1.7217 15.777 22.161 **30.859 248.37 May................................................................. 17.196 4.0050 141.65 1.7224 15.883 22.567 31.494 253.05 June................................................................. 18.192 4.2175 148.07 1.7229 16.538 23.746 32.757 257.62 July.................................................................. 18.932 4.4624 148.63 1.7385 16.431 24.732 35.428 253.75 Aug.................................................................. 18.145 4.3243 148.52 1.7553 15.948 24.070 33.656 247.57 Sept.................................................................. 18.048 4.2784 148.50 1.7610 15.768 23.769 33.146 241.83 Oct................................................................... 18.285 4.3014 148.54 1.7576 15.481 23.942 33.019 242.92 Nov.................................................................. 17.872 4.1155 148.45 1.7479 15.503 23.019 31.604 238.70 Dec................................................................... 17.651 3.9500 148.66 1.7571 15.044 22.026 31.252 231.74 1974—Jan................................................................... 16.739 3.7195 148.66 1.7205 14.423 20.781 29.727 222.40 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 Apr................................................................... 18.170 4.0232 148.85 1.7080 15.157 22.730 33.044 238.86 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 □ MAY 1974 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Apr. 30, 1973 Rate Country 1973 1974 as of Apr. 30, Per Month 1974 cent effective May June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. 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............................. 5.25 Apr. 1973 5.75 6.25 6.75 7.25 8.25 8.25 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 s'.o 9.00 io.'o* 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............................... 5.0 Apr. 1973 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 6.0 6.0 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 13.0 113.0 Venezuela........................ 5.0 Oct. 1970 .05 Vietnam........................... 18.0 Sept. 1970 18.0 i Ceylon renamed Sri Lanka under new constitution, 1972. Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of paper, maturity, collateral, guarantee, etc. Note.—Rates shown are mainly those at which the central bank either Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish 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 l/i 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

MAY 1974 □ OPEN MARKET RATES; ARBITRAGE A 85 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n l s s t u , h r s y * m Da o d y n a - y e t y o 2 - 3 P m b b r i a o i l m n l n s k t , e hs 3 T m r b e i a o ll s n s u t , h ry s D m a d o y a n - y e to y - C d b l e r e a a p a n t o r e k s i s n s it ’ g m Da o d y n a - y e t y o- 3 T 6 r d b e 0 a i a - l y s l 9 s s u 0 , 4 ry m Da o d y n a - y e t y o 5 - 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 - d P is r r c i a v o t a e u t n e t 197 2 3.55 3.65 6.06 5.02 4.83 3.84 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—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 13.63 10.40 6.50 9.36 6.00 Feb.. 6.10 6.49 13.63 11.94 8.96 9.50 9.13 6.50 9.73 6.00 Mar. 6.24 6.50 14.39 11.95 11.31 9.50 11.63 6.00 9.07 Apr. 7.18 13.20 11.53 10.00 9.50 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. 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 Premium 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 d ( ( i + - sc ) ) o u o o n n r t in ( c f N e a n v e t o t iv r e q ( u a o U d t j . a . S t i . t o o n U St n a i t t e e s d L ( o f n a o v d 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 i o n 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) basis) Canada basis 1973 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............. 12.04 7.38 4.66 -7.44 -2.78 6.35 6.13 7.38 -1.25 -.60 -1.85 11............. 12.04 7.75 4.29 -7.30 -3.01 6.32 6.10 7.75 -1.65 -.22 -1.87 18............. 11.88 7.75 4.13 -7.69 -3.56 6.30 6.10 7.75 -1.65 -.18 -1.83 25........... 11.86 7.92 3.94 — 8.82 -4.88 6.26 6.08 7.92 -1.84 -1.84 Feb. 1............. 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 Apr. 5............. 11.49 8.55 2.94 -7.94 -5.00 6.74 6.66 8.55 -1.89 -.12 -2.01 12............. 11.31 8.45 2.86 -7.71 -4.85 6.99 6.64 8.45 -1.81 -.16 -1.97 19............. 11.30 7.94 3.36 -7.37 -4.01 7.33 7.19 7.94 -.75 -.54 -1.29 26............. 11.33 8.32 3.01 -5.65 -2.64 7.64 7.59 8.32 -.73 -.33 -1.06 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 □ MAY 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 world 1 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 1,544 46 22 792 47 1972. 44,890 5.830 10.487 28,575 208 152 281 792 1,638 50 12 834 1973—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 1,603 50 12 834 Aug.. 5.826 10.487 208 152 281 793 1,603 50 11 834 Sept.. 44,880 5.826 10.487 28^565 208 159 282 793 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 56 8 927 1974—Jan.... 6.478 11.652 231 169 312 882 1,781 56 927 Feb.... 6.478 11.652 231 312 882 1,781 56 927 Mar.*. 6.478 11.652 231 882 1,781 927 Ger­ E pe n r d io o d f ( R C T e a h p i i w n . a a o , n f ) lo C m o b ­ ia m De a n rk ­ Egypt l F a i n n d ­ France R m F e a p e n . d y . o , f Greece India Iran Iraq l I a r n e d ­ Israel 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—Mar.............. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Apr............... 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 May............. 87 16 69 92 53 3,834 4,469 133 264 142 156 17 41 June............. 87 16 69 92 53 3,841 4,462 133 264 142 156 17 41 July............... 87 16 69 92 53 3,835 4,469 133 264 142 156 17 41 Aug............... 87 16 69 92 53 3,835 4,469 133 264 142 156 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 46 Nov.............. 97 18 77 103 42 4,261 4,966 148 293 158 173 18 46 Dec............... 97 18 77 103 35 4,261 4,966 148 158 173 18 46 1974—Jan................ 97 11 77 35 4,262 4,966 148 158 173 17 46 Feb............... 97 18 77 35 4,262 4,966 148 158 173 18 46 Mar.*.......... 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 i i n l e ip s ­ 196 6 2,414 329 67 193 68 1 109 21 1,730 18 53 65 44 196 7 2,400 338 136 193 68 31 166 21 1,711 18 53 20 60 196 8 2,923 356 122 288 85 66 165 21 1,697 24 54 20 62 196 9 2,956 413 86 288 85 63 169 21 1,720 25 54 25 45 197 0 2,887 532 86 288 85 48 176 21 1,787 23 54 40 56 197 1 2,884 679 87 322 85 58 184 21 1,909 33 55 40 67 197 2 3,130 801 94 350 93 63 188 23 2,059 37 60 41 71 1973—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 71 196 26 2,294 41 67 42 45 1974—Jan... 3,483 891 389 103 26 2,294 41 67 42 45 Feb... 3,483 891 389 103 26 2 294 41 67 45 Mar.* 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

MAY 1974 o 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 Sweden 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 l r l e . ­ ments 2 196 6 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 196 7 699 69 583 785 203 3,089 92 97 1,291 140 401 22 —624 196 8 . 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 196 9 . 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 197 0 . 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 197 1 921 108 410 498 200 2,909 82 130 775 148 391 51 310 197 2 1,021 117 681 541 217 3,158 89 136 800 133 425 56 218 1973—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... 1,167 129 793 602 244 3.513 99 151 148 472 62 271 Feb... 1,171 129 783 602 244 3.513 99 151 472 62 277 Mar.* 1,176 780 244 3.513 99 151 472 62 274 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 i i n l e ip s ­ t A ra u l s ia ­ ot A h l e l r i 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 1.090.7 24.8 6.0 60.1 89.1 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—Feb.................. 86.5 6.1 .4 .5 .3 1.8 Mar................. 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 .3 July................. 88.3 5.6 .8 .3 A „S e u p k t . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . 9 8 0 8 . . 2 2 5 5 . . 7 7 . . 8 9 .4 Oct.............. 97.5 7.0 .7 Nov................. 97.2 6.3 .8 Dec.................. 88.8 6.7 1974—Jan.................. 91.2 6.1 Feb.................. 6.1 i Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNOFiS Arthur F. Burns, Chairman George W. Mitchell, 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 MANAGING DIRECTOR FOR OPERATIONS AND SUPERVISION OFFICE OF BOARD MEMBERS RESEARCH AND ECONOMIC POLICY David C. Melnicoff, Managing Director ♦Robert Solomon, Adviser to the Board J. Charles Partee, Managing Director Daniel M. Doyle, Deputy Managing Joseph R. Coyne, Assistant to the Board Stephen H. Axilrod, Adviser to the Board Director John S. Rippey, Assistant to the Board Samuel B. Chase, Jr., Adviser to the Board Gordon B. Grim wood, Assistant Director John J. Hart, Special Assistant to the Board Arthur L. Broida, Assistant to the Board and Program Director for Frank O’Brien, Jr., Special Assistant to the Murray Altmann, Special Assistant to the Contingency Planning Board Board William W. Layton, Director of Equal Donald J. Winn, Special Assistant to the DIVISION OF RESEARCH AND STATISTICS Employment Board Brenton C. Leavitt, Program Director J. Charles Partee, Director for Banking Structure Lyle E. Gramley, Deputy Director James L. Pierce, Associate Director LEGAL DIVISION Peter M. Keir, Adviser Stanley J. Sigel, Adviser Thomas J. O’Connell, General Counsel Murray S. Wernick, Adviser DIVISION OF FEDERAL RESERVE BANK John Nicoll, Deputy General Counsel Kenneth B. Williams, Adviser OPERATIONS Robert S. Plotkin, Assistant General James B. Eckert, Associate Adviser Counsel Edward C. Ettin, Associate Adviser Ronald G. Burke, Director Baldwin B. Tuttle, Assistant General Robert J. Lawrence, Associate Adviser E. Maurice McWhirter, Associate Counsel Eleanor J. Stockwell, Associate Adviser Director Charles R. McNeill, Assistant to the Joseph S. Zeisel, Associate Adviser Walter A. Althausen, Assistant Director General Counsel James L. Kichline, Assistant Adviser Harry A. Guinter, Assistant Director Andrew F. Oehmann, Assistant to the Stephen P. Taylor, Assistant Adviser James R. Kudlinski, Assistant Director General Counsel Thomas D. Thomson, Assistant Adviser P. D. Ring, Assistant Director Griffith L. Garwood, Adviser Louis Weiner, Assistant Adviser Helmut F. Wendel, Assistant Adviser Levon H. Garabedian, Assistant Director A 88 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. Meetze, Associate Director Theodore E. Allison, Assistant Secretary John E. Reynolds, Associate Director Glenn L. Cummins, Assistant Director Normand R. V. Bernard, Assistant Paul Wonnacott, Associate Director Warren N. Minami, Assistant Director Secretary Robert F. Gemmill, Adviser Elizabeth L. Carmichael, Assistant Reed J. Irvine, Adviser DIVISION OF PERSONNEL Secretary Samuel I. Katz, Adviser Bernard Norwood, Adviser Keith D. Engstrom, Director Samuel Pizer, Adviser DIVISION OF SUPERVISION Charles W. Wood, Assistant Director George B. Henry, Associate Adviser AND REGULATION Helen B. Junz, Associate Adviser OFFICE OF THE CONTROLLER Frederic Solomon, Director tNoRMAN S. Fieleke, Assistant Adviser Brenton C. Leavitt, Deputy Director John Kakalec, Controller John M. Denkler, Assistant Controller Frederick R. Dahl, Assistant Director tOn loan from the Federal Reserve Bank of Boston. Jack M. Egertson, Assistant Director Janet O. Hart, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John N. Lyon, Assistant Director John T. McClintock, Assistant Director Walter 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 89 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 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. Doll, 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 91 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 Richard Cyert Robert D. Duggan Richmond......................23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall Baltimore ...................21203 James G. Harlow Jimmie R. Monhollon Charlotte....................28201 Charles W. DeBell Stuart P. Fishburne 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 92 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) ANNUAL REPORT NIES. 1967. 29 pp. $.25 each; 10 or more to one address, $.20 each. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 year or $.60 each in the United States and its each; 10 or more to one address, $.85 each. possessions, Bolivia, Canada, Chile, Colombia, TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 Costa Rica, Cuba, Dominican Republic, Ecuador, each; 10 or more to one address, $.85 each. Guatemala, Haiti, Republic of Honduras, Mexico, U.S. TREASURY ADVANCE REFUNDING, JUNE Nicaragua, Panama, Paraguay, Peru, El Salvador, 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or Uruguay, and Venezuela; 10 or more of same issue more to one address, $.40 each. to one address, $5.00 per year or $.50 each. Else­ BANK CREDIT-CARD AND CHECK-CREDIT PLANS. where, $7.00 per year or $.70 each. 1968. 102 pp. $1.00 each; 10 or more to one FEDERAL RESERVE CHART BOOK ON FINANCIAL address, $.85 each. AND BUSINESS STATISTICS. Monthly. Subscrip­ INTEREST RATE EXPECTATIONS: TESTS ON YIELD tion includes one issue of Historical Chart Book. SPREADS AMONG SHORT-TERM GOVERNMENT $6.00 per year or $.60 each in the United States SECURITIES. 1968. 83 pp. $.50 each; 10 or more and the countries listed above; 10 or more of same to one address, $.40 each. issue to one address, $.50 each. Elsewhere, $7.00 SURVEY OF FINANCIAL CHARACTERISTICS OF per year or $.70 each. CONSUMERS. 1966. 166 pp. $1.00 each; 10 or HISTORICAL CHART BOOK. Issued annually in Sept. more to one address, $.85 each. Subscription to monthly chart book includes one SURVEY OF CHANGES IN FAMILY FINANCES. 1968. issue. $.60 each in the United States and countries 321 pp. $1.00 each; 10 or more to one address, listed above; 10 or more to one address, $.50 each. $.85 each. Elsewhere, $.70 each. REPORT OF THE JOINT TREASURY-FEDERAL RE­ THE FEDERAL RESERVE ACT, as amended through SERVE STUDY OF THE U.S. GOVERNMENT SE­ December 1971, with an appendix containing pro­ CURITIES MARKET. 1969. 48 pp. $.25 each; 10 visions of certain other statutes affecting the Federal or more to one address, $.20 each. Reserve System. 252 pp. $1.25. JOINT TREASURY-FEDERAL RESERVE STUDY OF REGULATIONS OF THE BOARD OF GOVERNORS OF THE GOVERNMENT SECURITIES MARKET: THE FEDERAL RESERVE SYSTEM. STAFF STUDIES—PART 1.1970. 86 pp. $.50 each; PUBLISHED INTERPRETATIONS OF THE BOARD OF 10 or more to one address, $.40 each. PART 2. GOVERNORS, as of December 31, 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 rinnfPcc \ Qs popn OPEN MARKET POLICIES AND OPERATING PROCE­ SUPPLEMENT* TO BANKING AND MONETARY STA­ DURES—STAFF STUDIES. 1971. 218 pp. $2.00; TISTICS. Sec. 1. Banks and the Monetary System. 10 or more to one address, $1.75 each. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. REAPPRAISAL OF THE FEDERAL RESERVE DIS­ 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. 2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. volume $3.00 each; 10 or more to one address, Sec. 10. Member Bank Reserves and Related Items. $2.50 each. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 THE ECONOMETRICS OF PRICE DETERMINATION pp. $.35. Sec. 12. Money Rates and Securities CONFERENCE, October 30-31, 1970, Washington, Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; 24 pp. $.35. Sec. 15. International Finance. 1962. 10 or more to one address, $4.50 each. Paper ed. 92 pp. $.65. Sec. 16 (New). Consumer Credit. $4.00 each; 10 or more to one address, $3.60 each. 1965. 103 pp. $.65. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­ INDUSTRIAL PRODUCTION—1971 edition. 383 pp. ERATE FLUCTUATIONS IN HOUSING CON­ $4.00 each; 10 or more to one address, $3.50 each. STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 BANK MERGERS & THE REGULATORY AGENCIES: or more to one address, $3.60 each. APPLICATION OF THE BANK MERGER ACT OF LENDING FUNCTIONS OF THE FEDERAL RESERVE 1960. 1964. 260 pp. $1.00 each; 10 or more to BANKS: A HISTORY,by Howard H. Hackley. 1973. one address, $.85 each. 271 pp. $3.50 each; 10 or more to one address, THE PERFORMANCE OF BANK HOLDING COMPA­ $3.00 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 93 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 (Limited supply of mimeographed copies of full PANIES. 10/68. 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. 9/72. REVISION OF BANK DEBITS AND DEPOSIT TURN­ RECENT ACTIVITIES OF FOREIGN BRANCHES OF OVER SERIES. 3/65. U.S. BANKS. 10/72. RESEARCH ON BANKING STRUCTURE AND PER­ REVISION OF CONSUMER CREDIT STATISTICS. FORMANCE, Staff Economic Study by Tynan 10/72. Smith. 4/66. 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 EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. TRIAL LOANS BY INDUSTRY. 2/67. 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 94 FEDERAL RESERVE BULLETIN □ MAY 1974 STATE AND LOCAL BORROWING ANTICIPATIONS U.S. ENERGY SUPPLIES AND USES, Staff Economic AND REALIZATIONS. 4/73. Study by Clayton Gehman. 12/73. YIELDS ON RECENTLY OFFERED CORPORATE REVISION OF THE MONEY STOCK MEASURES AND BONDS. 5/73. MEMBER BANK DEPOSITS. 2/74. TREASURY AND FEDERAL RESERVE FOREIGN EX­ FEDERAL FISCAL POLICY, 1965-72. 6/73. CHANGE OPERATIONS. 3/74. SOME PROBLEMS OF CENTRAL BANKING. 6/73. RECENT DEVELOPMENTS IN THE U.S. BALANCE OF BANKING AND MONETARY STATISTICS, 1972. Se­ PAYMENTS. 4/74. lected series of banking and monetary statistics for CHANGES IN TIME AND SAVINGS DEPOSITS AT 1972 only. 3/73 and 7/73. COMMERCIAL BANKS, JULY-OCTOBER 1973. CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ 4/74. DUSTRIES. 8/73. CHANGES IN BANK LENDING PRACTICES, 1973.4/74. CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­ CAPACITY UTILIZATION FOR MAJOR MATERIALS: MERCIAL BANKS. 9/73. REVISED MEASURES. 4/74. RATES ON CONSUMER INSTALMENT LOANS. 9/73. FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER OF 1974. 5/74. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. OPEN MARKET OPERATIONS IN 1973. 5/74. 10/73. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI­ NEW SERIES FOR LARGE MANUFACTURING COR­ ABLES AND THEIR ROLE IN MONETARY POLICY. PORATIONS. 10/73. 5/74. MONEY SUPPLY IN THE CONDUCT OF MONETARY POLICY. 11/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 95 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 27, 29 Demand deposits—Continued Agricultural loans of commercial banks, 18, 20 Ownership by individuals, partnerships, and Arbitrage, 85 corporations, 26 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 15 Banks, by classes, 16, 18, 19, 20, 33 Turnover, 13 Federal Reserve Banks, 12 Deposits (See also specific types of deposits): Nonfinancial corporations, current, 44 Accumulated at commercial banks for payment of Automobiles: personal loans, 26 Consumer instalment credit, 50, 51, 52 Banks, by classes, 16, 19, 23, 33 Production index, 54, 55 Federal Reserve Banks, 12, 80 Postal savings, 19 Bank credit proxy, 15 Subject to reserve requirements, 15 Bankers’ balances, 18,22 Discount rates (See Interest rates) (See also Foreigners, claims on, and liabilities to) Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 34 Dividends, corporate, 44 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 Brokerage balances, 77 Federal finance: Business expenditures on new plant and equipment, 44 Receipts and outlays, 36, 37 Business indexes, 56 Treasury operating balance, 36 Business loans (See Commercial and industrial loans) Federal funds, 7, 18, 20, 24, 29 Federal home loan banks, 34, 35, 47 Capacity utilization, 56 Federal Home Loan Mortgage Corporation, 49 Capital accounts: Federal Housing Administration, 45, 46, 47, 48, 49 Banks, by classes, 16, 19, 24 Federal intermediate credit banks, 34, 35 Federal Reserve Banks, 12 Federal land banks, 34, 35 Central banks, 84, 86 Federal National Mortgage Assn., 34, 35, 48 Certificates of deposit, 24 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 15, 18, 27 U.S. Govt, securities held, 4, 12, 13, 38, 39 Weekly reporting banks, 20, 25 Federal Reserve credit, 4, 6, 12, 13 Commercial banks: Federal Reserve notes, 12 Assets and liabilities, 15, 16, 18, 19, 20 Federally sponsored credit agencies, 34, 35 Consumer loans held, by type, 51 Finance companies: Deposits at, for payment of personal loans, 26 Loans, 20, 50, 51, 53 Loans sold outright, 27 Paper, 27, 29 Number, by classes, 16 Financial institutions, loans to, 18, 20 Real estate mortgages held, by type, 46 Float, 4 Commercial paper, 27, 29 Flow of funds, 62 Condition statements (See Assets and liabilities) Foreign: Construction, 56, 57 Currency operations, 11, 12, 67, 73 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 23, 80 Instalment credit, 50, 51, 52, 53 Exchange rates, 83 Noninstalment credit, by holder, 51 Trade, 65 Consumer price indexes, 56, 59 Foreigners: Consumption expenditures, 60, 61 Claims on, 74, 75, 80, 81, 82 Corporations: Liabilities to, 24, 68, 69, 71, 72, 73, 80, 81, 82 Profits, taxes, and dividends, 44 Security issues, 42, 43 Gold: Security yields and prices, 30, 31 Certificates, 12 Cost of living (See Consumer price indexes) Earmarked, 80 Currency and coin ,5,9,18 Net purchases by United States, 66 Currency in circulation, 5,14 Production, 87 Customer credit, stock market, 32 Reserves of central banks and govts., 86 Stock, 4, 67 Debits to deposit accounts, 13 Government National Mortgage Assn., 48 Debt (See specific types of debt or securities) Gross national product, 60, 61 Demand deposits: Adjusted, commercial banks, 13, 15, 19 Housing permits, 56 Banks, by classes, 16, 19, 23 Housing starts, 57 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 78-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 78-A hguorht 4-A segap o t era secnerefeR( A 96 FEDERAL RESERVE BULLETIN □ MAY 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 Type of holder and property mortgaged, 45-49 Interbank deposits, 16, 18 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 Saving: Investment companies, issues and assets, 43 Flow of funds series, 62 Investments (See also specific types of investments): National income series, 60 Banks, by classes, 16, 18, 21, 22, 33 Savings and loan assns., 34, 39, 47 Commercial banks, 15 Savings deposits (See Time deposits) Federal Reserve Banks, 12, 13 Savings institutions, principal assets, 33, 34 Life insurance companies, 33 Securities (See also U.S. Govt, securities): Savings and loan assns., 34 Federally sponsored agencies, 34, 35 International transactions, 76, 77 New issues, 41, 42, 43 Labor force, 58 Yields and prices, 30, 31 Life insurance companies (See Insurance companies) Silver coin, 15 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 64, 67 Banks, by classes, 16, 18, 20, 33 State and local govts.: Commercial banks, 15, 16, 18, 20, 25, 27, 28 Deposits, 19, 23 Federal Reserve Banks, 4, 6, 8, 12, 13 Holdings of U.S. Govt, securities, 38, 39 Insurance companies, 33, 46, 47 New security issues, 41, 42 Insured or guaranteed by U.S., 45, 46, 47, 48, 49 Ownership of securities of, 18, 22, 33 Savings and loan assns., 34, 47 Yields and prices of securities, 30, 31 State member banks, 17, 26 Manufacturers: Stock market credit, 32 Capacity utilization, 56 Stocks (See also Securities): Production index, 55, 56 New issues, 42, 43 Margin requirements, 10 Yields and prices, 30, 31 Member banks: Assets and liabilities, by classes, 16, 18 Tax receipts, Federal, 37 Borrowings at Federal Reserve Banks, 6, 12 Time deposits, 10, 15, 16, 19, 23 Number, by classes, 16 Treasury cash, Treasury currency, 4, 5 Reserve position, basic, 7 Treasury deposits, 5, 12, 36 Reserve requirements, 9 Treasury operating balance, 36 Reserves and related items, 4, 6, 15 Mining, production index, 55 Unemployment, 58 Mobile home shipments, 57 Money market rates (See Interest rates) U.S. balance of payments, 64 U.S. Govt, balances: Money stock and related data, 14 Mortgages (See Real estate loans and Residential mortgage Commercial bank holdings, 19, 23 Member bank holdings, 15 loans) Mutual funds (See Investment companies) Treasury deposits at Reserve Banks, 5, 12, 36 U.S. Govt, securities: Mutual savings banks, 23, 33, 38, 39, 46 Bank holdings, 16, 18, 21, 33, 38, 39 Dealer transactions, positions, and financing, 40 National banks, 16, 26 Federal Reserve Bank holdings, 4, 12, 13, 38, 39 National defense expenditures, 37, 60 Foreign and international holdings, 12, 73, 76, 80 National income, 60, 61 International transactions, 73, 76 Nonmember banks, 17, 18, 19, 26 New issues, gross proceeds, 42 Open market transactions, 11 Outstanding, by type of security, 38, 39, 41 Open market transactions, 11 Ownership, 38, 39 Yields and prices, 30, 31 Payrolls, manufacturing index, 56 Utilities, production index, 55 Personal income, 61 Prices: Veterans Administration, 45, 46, 47, 48, 49 Consumer and wholesale commodity, 56, 59 Security, 31 Weekly reporting banks, 20 Prime rate, commercial banks, 28 Production, 54, 55, 56 Profits, corporate, 44 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Detroitj CKicagoj OmaJta.* HncivnatA culV^( Kansas Citt^ 't. Louis ^"PLicV^c ^CharC^) v Oklahoma. City '.ittCe Roci\ Atfanta Dallas Mew Orleans >an Antonio* Miami ‘Drawn byHW. §alvin, Cart ☆ (o TH E FEDERAL R ESER V E SYSTEM g) a HAWAII L e g e n d Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis