Federal Reserve Bulletin, 1974-07

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, p.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 7 □ VOLUME 60 □ JULY 1974 CONTENTS 475 Recent Labor Market Developments 487 Statements to Congress 493 Record of Policy Actions of the Federal Open Market Committee 501 Law Department 526 Revised Rates for the Bulletin 527 Announcements 531 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 60 International Statistics A 84 Board of Governors and Staff A 86 Open Market Committee and Staff; Federal Advisory Council A 87 Federal Reserve Banks and Branches A 88 Federal Reserve Board Publications A 91 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

Recent Labor Market Developments Growth in demand for labor has moderated somewhat since last fall, but the pace of wage increases has accelerated. Total employ­ ment, which had risen rapidly during 1972 and most of 1973, slowed its advance late last year when the oil embargo contrib­ uted to a curtailment in economic activity, and at year-end the rate of unemployment rose. A slower rate of labor force growth this year has about equaled the reduced rate of employment gains, however, and the unemployment rate consequently has shown little change. At the same time, wage adjustments have increased, but rising prices continue to erode the real purchasing power of earn­ ings. Early in 1973 a brisk advance in economic activity—reflecting strong consumer demands, especially for durable goods, rising outlays for business fixed investment, and a favorable shift in the Economic activity weakens and TOTAL EMPLOYMENT growth slows, but reduced labor force gains moderate the rise in unemployment CHANGE IN REAL GNP UNEMPLOYMENT RATE ~ 10 CIVILIAN LABOR FORCE Real GNP (1958 dollars) is Dept, of Commerce data, season^ employment, and unemployment rates are monthly Bureau of ally adjusted quarterly changes at annual rates. Labor force, Labor Statistics data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN □ JULY 1974 volume of exports and imports—had led to a sharp increase in industrial employment. The expansion of total industrial employ­ ment slowed somewhat after mid-1973, as growth in aggregate output was increasingly slowed by capacity constraints and materi­ als shortages, by weakening consumer demands, and by reduced activity in residential construction. The continued increase in capital spending, however, helped to sustain employment gains in the metals and machinery industries throughout most of the year, and expansion of employment in service-type industries continued apace. In the fall, the impact of the fuel embargo added to the other constraints and growth of output was curtailed further, with only a minimal increase in real gross national product in the fourth quarter and a sharp decline in the first quarter of 1974. As a result, heavy layoffs and rising unemployment occurred during the winter in manufacturing industries as well as in other energy-related activities. With the end of the oil embargo, employment gains have resumed, although at a substantially slower pace than earlier. On balance, all of the employment increases that have occurred this year have been in service-type industries. In contrast, industrial employment has remained below earlier peak levels and the factory workweek has continued to edge off. Following the large rise in unemployment at year-end, joblessness among most labor force groups has been relatively stable, and the total increase in unem­ ployment has not been so great as had been feared during the height of the winter energy crisis. Wage advances, which had been relatively moderate during 1972, accelerated in 1973 as prices increased faster and as the coverage and effectiveness of the stabilization program were sub­ stantially curtailed. The average hourly earnings index—this ex­ cludes overtime premiums in manufacturing and shifts of workers between industries—rose 6.7 per cent over the four quarters of 1973, but consumer prices moved up even faster and real earnings of nonfarm workers declined substantially. Wages began to ad­ vance more rapidly in 1974, and during the second quarter the hour­ ly earnings index rose at a 9.6 per cent annual rate, with sharp in­ creases widespread. The acceleration has been reflected in major collective bargaining settlements, which recently have been signif­ icantly larger than in 1973. Cost-of-living adjustment clauses have been improved and extended, and fringe benefits have been in­ creased. The rise in the cost of living, together with continued demands for labor in trade and services and the recent increase in the minimum wage, has been an important factor leading to large wage raises in many nonunion sectors as well. With the rapid rise in hourly compensation and a standstill in productivity gains— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT LABOR MARKET DEVELOPMENTS 477 reflecting in large part sluggish growth of output—unit labor costs have been advancing sharply, adding further pressure on prices. DEMAND FOR LABOR Nonfarm payroll employment continued to rise quite rapidly for most of 1973, although the rate of growth of output dropped and productivity gains ceased. Factory employment, however, began to show signs of easing after midyear, while in many other sectors the growth in employment continued unabated. Large layoffs in manufacturing and some cutbacks in service-sector jobs occurred late in the fall as a result of increasing shortages of basic materials and slower spending for consumer durable goods and construction, as well as the uncertainties introduced by actual and anticipated fuel shortages. Growth of service-type jobs picked up in the spring following the end of the oil embargo, and industrial employment has about leveled off. The net effect has been a reduction in the growth of total nonfarm payroll employment to an annual rate of less than 1 million between November and June, compared with 2.7 million over the four quarters of 1973. Industrial EMPLOYMENT declines, while growth continues in service-type industries BLS payroll employment data, seasonally adjusted. Industrial includes manufacturing, mining, and construction. Private service-producing includes trade, finance, services, trans­ portation, and public utilities. Manufacturing employment gains in 1972 and most of 1973 were concentrated in the metal-producing and metal-using industries— the sectors most affected by the strength of business capital outlays and of spending for consumer durable goods. Although a contrac­ tion in domestic auto sales shortly after mid-1973 led to reduced auto production and some job cuts in the transportation equipment industry, labor demand in other durable goods industries continued strong through the summer and fall. Growth was especially evident in steel and among producers of machinery and electrical equip­ ment, and reflected continued strength in plant and equipment spending. The factory layoffs during the winter months resulted in a decline Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN □ JULY 1974 INDUSTRIAL PRODUCTION of nearly a quarter of a million in the total number of factory jobs. Although energy shortages were the proximate cause of the decline, the drop in auto sales in the preceding several months and the reduced rates of growth in manufacturing output and in construction activity were also important factors. About half of the decline in manufacturing jobs was directly in the transportation equipment sector with the rest spread throughout durable goodsproducing industries. In transportation equipment, the bulk of the layoffs were in the auto industry where employment declined 150,000, but there were also cutbacks among producers of recrea­ tional vehicles and private aircraft. Sharp reductions also occurred among manufacturers of primary and fabricated metals and electri­ cal equipment. Unlike the cuts in manufacturing jobs in 1970, when employers sought to trim overhead by laying off nonproduction workers, all of the recent factory layoffs were among production workers. Manufacturing employment has changed little since early 1974. Employment in the durable goods-producing sector has edged up slightly, but this has been offset by some job losses in the nondurable goods sector. * Affected by holiday in survey week. The average workweek of factory production workers trended Industrial production, F.R. data; employment and hours, BLS data. up throughout 1972 and early 1973, reaching a 4 Vz -year high of Seasonally adjusted. 41 hours. But in mid-1973 the factory workweek started to turn down, in advance of reductions in manufacturing employment. During the second half of 1973 and first half of 1974, factory hours moved down slowly to 40.1 hours in June. Cutbacks in overtime hours accounted for the bulk of the drop. Construction employment rose strongly in the first three quarters of 1973. During the fourth quarter, job gains slowed as spending for residential structures was curtailed. Further reductions in build­ ing expenditures in 1974, due in part to uncertainties as to the availability of funds, and some increase in strike activity have resulted in a sharp decline in construction employment recently. Construction jobs fell by 50,000 in June to put the total 150,000 below the February 1974 level. Job gains in the private service-producing industries totaled 1.4 million over the four quarters of 1973, about the same as in 1972. Following the general pattern of the past decade or more, the greatest gain—600,000—was in service employment such as hotels, hospitals, and private education. Retail trade also showed a rapid advance—375,000. However, for a short period during the winter months, gasoline and fuel shortages had a substantial impact on some trade and service jobs. Layoffs were reported at service stations, reflecting reduced hours of operation, and at automobile dealerships, as well as at hotels and motels and at certain types of recreational facilities. But as the gasoline shortage began to ease in the spring, increases in service-type employment resumed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT LABOR MARKET DEVELOPMENTS 479 GOVERNMENT EMPLOYMENT Growth in employment in the public sector during 1973 again occurred entirely among State and local governments. Federal civilian employment has held at about 2.6 million since mid-1970, while State and local government payrolls have continued to absorb large numbers of workers—up 450,000 since mid-1973—about equal to the average yearly increase since 1969. Despite slower FEDERAL growth of the school-age population, about two-thirds of the 1973 rise was in educational activities. Apparently the use of aides and special education teachers and the growth of publicly supported BLS payroll employment data, sea­ community colleges have become increasingly important. State and sonally adjusted quarterly averages. local government employment was expanded considerably in late 1971 and early 1972 by workers hired under the Public Employment Program (PEP). The growth of this program, however, dropped substantially after a freeze was placed on additional PEP hiring in June 1972. The new manpower revenue-sharing program, which is expected to become fully operative later this year, could lead to a pick-up in PEP hiring in activities such as public works, administrative services, and police and fire protection. LABOR SUPPLY Growth of the labor force slowed considerably in the first half of 1974, apparently in response to an easing in labor market condi­ tions. The civilian labor force advanced by less than 1 million, annual rate, between January and June, and all of the expansion occurred during the late spring; between January and April the labor force had shown a net decline. The recent slowdown was preceded by a period of exceptionally rapid expansion in both 1972 and 1973. Strong demands for labor CIVILIAN LABOR FORCE growth slows for workers under 35 — ■ ■ ....... I MEN UNDER 35 YEARS '71 Q4 - '72 Q4 _ I WOMFMllNriFB 3R YFARS MEN 35 YEARS AND OVER WOMEN35 YEARS AND OVER _ _ J i ■ ■ ’73 Q4 - 74 Q2 BLS household survey data, seasonally adjusted quarterly averages. Changes from 1973 Q4 to 1974 Q2 at annual rates. Under 35 years refers to persons aged 16 to 34. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDERAL RESERVE BULLETIN □ JULY 1974 swelled the work force at an annual rate of 2.7 million during 1973— a rate well above the expected growth of about 1% million based on the 2.6 million increase last year in the working age population and on past trends in participation rates (the per cent of the population either working or seeking work). As a result, although employment advanced substantially through most of 1973, the unemployment rate declined only moderately through the early fall. The extraordinary expansion of the labor force in 1973 was concentrated among workers under 35 years of age, for whom both population and participation rates rose rapidly. More than half of their labor force growth was attributable to an increase in popula­ tion—a continuing heritage of the postwar baby boom. Most of the remainder of the expansion was due to sharply rising partici­ pation rates among workers 16 to 24 years of age and among women in the 25- to 34-year age group. The increased participation re­ flected, in part, the continued growth of demand for full- and part-time labor in the service and trade industries, where younger workers and women have traditionally found employment. A longer-run factor affecting the labor force growth has been the shift in the average age of younger workers over the past half-dozen years toward the older end of the 16- to 24-year age group, which has a higher rate of participation. The continued uptrend in participation of women 25 to 34 years of age reflects the increased inclination of married women to work as changing social attitudes have increased their job opportunities; in addition, lower birth rates, and, to some extent, the growth of such institu­ tional arrangements as day care for children have increased their availability for jobs. In contrast, the number of men 35 years of age and over in the labor force declined during 1973, and the number of women in this age group showed only a moderate advance. The declining participation of adult men has occurred mainly among men aged 55 and over—a long-term phenomenon—and more recently, among men of 45 to 54 years. For the older group, this has been due in part to earlier retirement; for both groups, increased and more liberal coverage of health and accident disability programs may also have contributed to the decline in participation. The labor force drop early in 1974 was not unusually large compared with previous declines during periods of reduced eco­ nomic activity. Several months of net labor force decline have often occurred when output has weakened in the past; these declines have often been followed by a sharp rebound in labor force growth, but the net result of these developments has been a slower average rate of increase than during periods of more robust growth in output. However, the recent slowdown of labor force growth did have some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT LABOR MARKET DEVELOPMENTS 481 unusual features. Typically, most of the decrease in the labor force in a period of reduced output growth is among teenagers, with only small reductions among older workers of both sexes. In the past, women also tended to withdraw from the labor force during periods of slack markets, but in recent years they have shown stronger labor force attachment. This time, however, although there was the usual decline in the teenage labor force, there was also an unusually large and unexpected drop in the number of adult males in the labor force and a rapid increase in the adult female labor force. The continued rise in the number of adult women looking for work may reflect in part the need to shore up family income in the face of rapidly rising consumer prices. During the late spring of 1974 there was a rebound in the participation of adult men and teenagers, and labor force growth resumed. But it seems likely that the labor supply will grow at a slower rate in the months ahead if economic growth continues well below trend. UNEMPLOYMENT The unemployment rate has been on a plateau a little above 5 per cent since the beginning of the year, following a rise of half a percentage point between October 1973 and January 1974. The recent stability in the over-all unemployment rate reflects the unchanged jobless picture for most groups at rates considerably UNEMPLOYMENT rises late in 1973, stabilizes in first half of 1974 JOB LOSERS WHITE BLS household data, seasonally adjusted quarterly averages. Unemployment rates for job losers and labor force entrants, which include re-entrants as well as those who have never worked before, are as a per cent of the civilian labor force. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 FEDERAL RESERVE BULLETIN □ JULY 1974 above the lows reached in the autumn of 1973. The unemployment total in mid-1974 not only is larger than in the autumn of 1973, but also is composed of a relatively high proportion of experienced workers who are likely to have family responsibilities and to be seeking full-time jobs. The rise in unemployment in late 1973 was due to the reduction in economic activity and was aggravated by energy-induced layoffs in the auto and other industries. As a result, the bulk of the rise in unemployment occurred among persons who had lost their jobs rather than among new entrants into the labor force. There was relatively little impact on white-collar workers, but jobless rates for blue-collar workers rose sharply. Most of the workers in this group are covered by State unemployment insurance programs, and the number of persons drawing benefits increased by about 30 per cent between October 1973 and February 1974 to a weekly average of 2.1 million; it has remained at about this level since then. During the 1971-73 expansion period the drop in unemployment was considerably smaller than during previous cyclical recoveries. Three years after the cyclical trough, the unemployment rate had declined only 1.2 percentage points to a low of 4.6 per cent in October 1973 compared with an unemployment low of about 3 Vi per cent in 1968-69. In part this was due to the unusually strong growth in the labor force during 1972 and 1973. Another factor was the change in the age-sex composition of the labor force. Over the past decade, workers whose unemployment rates tend to be above the over-all total—primarily workers 16 to 24 years of age—have become an increasingly larger proportion of the labor force. The effect of this demographic change has been to raise the aggregate unemployment rate somewhat compared with the early 1960’s. All labor force groups shared in''the improved unemployment picture between the latter part of 1972 and the comparable period in 1973. The sharpest relative reduction in unemployment occurred among men 20 to 24 years old, whose unemployment rate dropped from 8.5 per cent to 6.5 per cent. The unemployment rate for men 25 years of age and over also improved somewhat, and this was reflected in unemployment rates for heads of households, full-time workers, married men, and workers in the manufacturing sector. Even though physical capacity limits leading to materials shortages were approached in a number of industries, unemploy­ ment rates for all demographic groups were higher in 1973 than in 1969—the last year of relatively tight labor markets. The unemployment rate of Negro workers throughout the past year and a half has been about double that of white workers, as it has been for most of the past two decades. The most severe Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT LABOR MARKET DEVELOPMENTS 483 unemployment disparity exists for teenagers and for women 20 to 24 years of age; for each of these groups unemployment rates for Negro workers are 2Vi to 3 times greater than those for their white counterparts. The differences are smaller among both men and women aged 25 and over, but the unemployment rate for Negro workers in the older age group still tends to be almost twice that of white workers. During the four quarters of 1973 joblessness among Negro workers declined moderately. The largest share of the decrease was attributable to Negro teenagers, but some improvement also occurred among both male and female adults. With the layoffs during the winter months, unemployment of both white and Negro workers rose. During the early stages of rising joblessness in the past, the unemployment rate for white workers has tended to rise relatively more rapidly than the rate for Negro workers, mainly because of the heavy concentration of Negro workers in the less cyclically sensitive service industries. During the most recent period, however, the relative rise in unemployment was about the same for both groups, reflecting the increasing proportion of Negro workers in auto and other industrial activities and the impact of energy-related layoffs on the service sector. WAGES AND The acceleration of wage increases in 1974 has been widespread LABOR COSTS throughout the economy, with the pace substantially faster in the second quarter than in the first; the acceleration reflects mainly a response to rapid price increases, a heavy collective bargaining calendar, and the termination of wage controls on April 30. The average hourly earnings index for the private nonfarm sector—the closest available measure of average wage rates—grew at an annual rate of 9.6 per cent in the second quarter of 1974 compared with a 6.7 per cent rate of increase over the four quarters of 1973. Increases in HOURLY EARNINGS accelerate BLS data, seasonally adjusted quarterly averages. Average hourly earnings of production workers adjusted for interindustry shifts and overtime in manufacturing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN □ JULY 1974 AVERAGE WEEKLY EARNINGS Despite the rapid uptrend of wage adjustments, weekly pay of PRIVATE NONFARM ECONOMY nonfarm wage and salary workers has continued to lag increases in consumer prices, which rose at a 12.2 per cent annual rate during the first 5 months of 1974. As a result, the purchasing power of weekly pay for the average worker with three dependents, which CURRENT DOLLARS had begun to decline in March 1973, dropped off even faster in 1974. In May it was about 6.5 per cent below the peak reached 1967 DOLLARS in the fall of 1972. The largest increases in wage rates recently have been in manu­ facturing; there, wages accelerated sharply in the spring of 1974 as settlements in several key industries became effective and large BLS data, seasonally adjusted quar­ cost-of-living adjustments were reflected in pay rates. The average terly averages. For 1967 dollars, 1974 Q2, F.R. estimate. hourly earnings index for manufacturing increased at an annual rate of 11 per cent between January and June, markedly faster than the 6.5 per cent gain during 1973. The speed-up in wage adjustments was also apparent outside the manufacturing sector. Construction wages, which had shown HOURLY EARNINGS INDEX the most dramatic slowdown during 1971 and 1972 under the Construction Industry Stabilization Committee (CISC), began rising more rapidly again in the second half of 1973 and have increased CONSTRUCTION at a 10.4 per cent annual rate so far in 1974. Because contracts of short duration—usually 1 year—proliferated under the CISC’s program as workers attempted to reduce the period of “ locked in” wage increases during wage controls, an unusually large number of construction workers are involved in wage negotiations in 1974. In the less unionized service and trade sectors, wage pressures BLS data, seasonally adjusted quar­ also became evident in the second half of 1973 and have continued terly averages. into 1974. The recently enacted amendments to the Fair Labor Standards Act (FLSA), which raised the minimum wage and extended its coverage, have had most of their impact in trade and in services such as hotels, motels, laundries, and educational institutions and among domestic private household workers. On May 1 a minimum wage of $2.00 an hour became effective for most workers, increasing the annual wage bill by $1.9 billion. The new FLSA amendments will raise the minimum for all workers to $2.30 an hour by January 1, 1978; the increase will take place in five stages. Reflecting in part the impact of the new FLSA provisions, wages in services and trade accelerated sharply over the April to June period. Hourly compensation in the nonfarm economy has maintained its rapid rate of growth in 1974, reflecting the large wage and fringe gains and increases in the social security tax in January. Compensation rose at about an 8.5 per cent annual rate in the first half of the year, as compared with an 8 per cent rate in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT LABOR MARKET DEVELOPMENTS 485 UNIT LABOR COSTS rise rapidly as compensation increases accelerate, and productivity performance deteriorates ■ HOURLY COMPENSATION PRODUCTIVITY UNIT LABOR COSTS BLS data. Percentage change from two quarters earlier at annual rates. For hourly compen­ sation, 1974 Q2, F.R. estimate. Productivity and unit labor costs 1974 data are for Ql, per­ centage change from previous quarter at annual rates. latter half of 1973. As in the past, increases in fringe benefits have continued to outpace growth in earnings. Productivity performance has deteriorated in the past year, and with the acceleration in wage increases unit labor costs have risen sharply. Productivity gains moderated after the second quarter of 1973, as often occurs when output growth slows, and then came to a halt in the first part of 1974. With hourly compensation rising substantially over the same period, unit labor costs increased rapidly. In the first quarter of 1974 labor costs were 8.6 per cent above their year-earlier level—the largest increase over any four quarters since the Korean war. This behavior of labor costs has put further pressure on prices. COLLECTIVE Wages have been particularly sensitive to the rise in living costs BARGAINING this year because 1974 is a heavy bargaining year. Negotiations are taking place in several key, pattern-setting industries such as steel, telephone, and railroads. Nearly 5V4 million workers are covered by major contracts—those that affect 1,000 or more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN □ JULY 1974 workers—due for renegotiation; this compares with about 4 million last year, which was also a heavy year. In a number of recent contracts, cost-of-living agreements have been liberalized as rapid inflation has focused union attention on efforts to offset losses in real income. Currently, about 4 million of the IOV2 million workers in major bargaining units are covered by escalator clauses; most of these workers are concentrated in food, metalworking, transportation, and communication industries. Al­ though the number of workers covered has remained fairly con­ stant since 1971, this year cost-of-living provisions are being adopted in contracts that have not had them previously. Workers in industries that offer no formal cost-of-living protection are at­ tempting to maintain their traditional wage relationships with in­ dustries in which such adjustments are made. In addition to cost-of-living demands, union bargaining has focused on improvement in fringe benefits. Workers in the alumi­ num and can industries obtained new early retirement privileges and substantial gains in pension benefits including cost-of-living protection for workers on pensions. Similar improvements were negotiated in the steel contract. Important negotiations in the communications, railroad, aerospace, coal mining, and construction industries are yet to be completed in 1974. With consumer prices rising rapidly, wage and fringe increases are likely to rise at a rapid pace this year and intensify pressures on labor costs. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Jeffrey M. Bucher, Member, of credit based upon group identification, rather Board of Governors of the Federal Reserve than upon factors specifically related to an indi­ System, before the Subcommittee on Consumer vidual’s creditworthiness, works to the eco­ Affairs of the Committee on Banking and Cur­ nomic disadvantage of applicants and creditors rency, U.S. House of Representatives, June 20, alike. 1974. Discrimination in credit granting is often the result of traditional, but shortsighted, business I greatly appreciate the opportunity to appear practices, rather than a concerted effort to deny before this Subcommittee on Consumer Affairs credit to certain groups. These business prac­ to offer the views of the Board of Governors tices are partially due to local laws that are on the “Equal Credit Opportunity Act”—H.R. outdated in their treatment of personal property 14856—which you introduced, Madam Chair­ rights. In many cases, the statutes are based on man, and which was cosponsored by other historical concepts that lag behind the prevailing members of this subcommittee. The Board of attitudes. Governors fully supports the objectives that As this subcommittee well knows, the re­ your subcommittee seeks to attain through en­ fashioning of law to reflect changing social acting of this legislation. Following Vice attitudes is a difficult task. Personal as well as Chairman Robertson’s retirement about 1 year corporate behavior is molded in conformity to ago, Chairman Burns assigned to me the re­ traditional legal standards and, frequently, these sponsibility for overseeing the Board’s Truth in molds are hard to break. The difficulties en­ Lending and related activities. Since that time, countered in adapting to new legal standards are I have become involved in these matters, and compounded when they involve the elimination I hope to continue the outstanding record set of discriminatory conduct. by my predecessor. In the Board’s deliberations on this issue, my Today, my remarks will cover the general colleagues and I have been impressed by the scope of H.R. 14856 and the role foreseen by need to insure that the adjustment to a new the Board of Governors in implementing the Federal antidiscriminatory standard is accom­ purposes of the bill. Many of my comments will plished in a prompt and orderly manner. Thus, be equally applicable to H.R. 14908, introduced we have reached the conclusion that, at least by Mr. Burgener and Mr. Widnall, which would initially, the proposed legislation should provide prohibit discrimination in the extension of credit for self-enforcement through the courts rather but only on the grounds of sex or marital status. than regulatory rule writing. Our reasons for this To supplement my statement today, the Board preference are the following: will submit technical comments in the near 1. From our perspective at the Board, no future on various provisions of both bills. I hope Federal agency appears to possess the thorough that the committee will find my general remarks understanding of State law that we believe and the written technical comments helpful in will be essential to the effective implementation its deliberations. of this legislation. The Board itself has had The Board favors the elimination of discrim­ little opportunity to develop the level of ex­ ination in credit extensions. There is no consti­ pertise necessary to determine the extent and tutionally protected right to receive credit, but character of discrimination as it may be en­ a great deal can be done to insure that access countered in the credit field, aside from experi­ to credit is made available on a just and fair ence gained in enforcing Title VIII of the Civil basis to equally creditworthy people. The denial Rights Act of 1968 among State member banks. 487 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN □ JULY 1974 2. Our limited experience in this area does task under the Truth in Lending Act, the Board nevertheless suggest that there is a serious has dealt with specific and objective features of question as to whether a statute prohibiting credit transactions; its end product is informa­ discrimination in credit lends itself to a central­ tion written in specific terms and presented in ized scheme of Federal regulations. We reach a standard form. this conclusion primarily because, in our present By contrast, the Equal Credit Opportunity Act judgment, regulations, no matter how detailed, seeks to eliminate from creditor behavior certain will prove too insensitive an instrument for considerations that are judged to be improper. determining whether creditor conduct is dis­ These improper considerations are often subjec­ criminatory in particular circumstances. tive and are, in an economic sense, totally We, therefore, recommend for the Congress’ irrelevant to the credit decision. We seriously consideration that this act be made effective question whether sanctions forbidding the use upon enactment and be self-enforcing. We fur­ of such considerations lend themselves to spe­ ther suggest that a Federal agency be given at cific rules. Telling creditors how to disclose least 1 year to study the feasibility of regulatory their charges is straightforward in comparison enforcement. The Board is prepared to under­ to categorizing as permissible or discriminatory take such a study and report its findings to the all of the possible types of inquiries involved Congress. in a credit application. Let me further explain some of the reasons It would appear to be extremely difficult to for the conclusions I have just stated. As in the assess whether given conduct is discriminatory case of the Truth in Lending Act, both H.R. without having a specific context in which to 14856 and H.R. 14908 call upon the Board to measure the intent of the participating parties. develop regulations to implement their objec­ For example, an inquiry of a credit applicant’s tives. To date, the Truth in Lending Act has address, while seemingly innocent in the ab­ been regarded by many as achieving a high stract, may take on a discriminatory flavor when degree of creditor cooperation and compliance. the applicant resides in an area that has tradi­ The regulations developed in connection with tionally been categorized as “high-risk” by the act may have assisted in this process. certain local creditors. Similarly, the specific While considering implementation of the questions used by a creditor in ascertaining the Equal Credit Opportunity Act, comparisons dependability of a married woman’s income have been made with experiences under the may suggest a discriminatory practice. Truth in Lending Act. There are certain simi­ Another of our concerns involves the interac­ larities between the scope and impact of the two tion between a proposed Federal standard and acts. Both measures seek to alter creditor be­ State law. A Federal agency formulating regu­ havior; both superimpose a Federal standard lations under the Equal Credit Opportunity Act upon a firmly established body of State law. would have to contend with the laws of 50 However, there are also significant differences States while attempting to develop nationally between the two measures, which lead to our applicable rules. conclusion regarding the manner in which these Perhaps the point can be illustrated in terms objectives can best be implemented. of discrimination based on marital status. Under Truth in Lending is a disclosure statute. Its either H.R. 14856 or H.R. 14908, a creditor principal purpose is the creation of a uniform is entitled to ask a woman who applies for credit method of disclosing credit costs so that bor­ whether she is married, and to take into consid­ rowers can make intelligent choices among al­ eration the impact of State property laws on the ternative sources of credit. The affirmative duty extent and kind of assets he will be able to reach that the act imposes upon creditors is to cate­ if she were to default on a loan. In a community gorize, calculate, and publicize credit costs in property State, such as Louisiana or California, a uniform manner. Thus, its purpose is well he will have to ask fairly detailed questions in suited to the precision that is the ideal product order to determine whether her assets or income of regulation. In accomplishing its regulatory are—or may become—part of the community. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 489 If this has occurred, he may be entitled to gage credit. The data are being collected and require that her husband join in signing a note reported by banks and savings and loan associ­ before extending credit to her. ations in 18 urban areas throughout the country. The creditor may not, however, ask any The product of this program could prove helpful questions that are unnecessary for this purpose. to the purposes of this legislation. If he requires more information than he needs Needless to say, mortgage credit is but one under local law to secure himself, or if he asks aspect of this potential field for regulation that for signatures, releases, or guarantees that are merits careful study. In the area of sex and not actually necessary for the protection of the marital status discrimination, we understand that credit, he may not only be opening himself to various State banking agencies are engaged in the charge of discrimination, he may in fact be developing programs to end discriminatory discriminating. Not only does statutory law vary credit practices. Some 14 States have enacted widely from State to State, but judicial inter­ legislation prohibiting discrimination in credit. pretations of it are constantly changing. A single It is our understanding that many of these States Federal regulation would have to be written in are now attempting to reconcile discriminatory such terms as to take account of all these varia­ features in their property and family law codes. tions, and if it is to be written adequately and Certainly, the approaches taken by these States fairly would require at the least an extensive could prove instructive to the implementation preliminary investigation of local law. of similar legislation at the Federal level. In enacting the Truth in Lending legislation Finally, H.R. 14856 includes additional cate­ the Congress took great pains to avoid intruding gories of prohibited discrimination—namely, upon the traditional State law domain of interest race, color, religion, national origin, and age. rates and creditor rights and remedies. Under We favor their inclusion, but we are concerned Truth in Lending a creditor is only required to that there may be many unexplored problem translate the charges connected with a loan into areas related to these categories that deserve the uniform terms. The act does not tell him what same careful analysis that has already been rate of interest he may charge or require him given sex and marital status in its consideration to make a judgment as to his rights and remedies by Congress. Since H.R. 14856 was only intro­ under State law. duced on May 16, the Board has not had All of these considerations suggest to the sufficient time to explore possible questions Board that the Equal Credit Opportunity Act relating to these additional categories. may be most effectively implemented by the A study of these and the other problems courts, as least in its initial stages. The very mentioned above could prove extremely helpful. individualized nature of the issue of discrim­ With the findings of such a study before it, the ination leads us to conclude that local judges, Congress could make a more informed determi­ well-versed in the scope and intricacies of State nation as to the need for and feasibility of a law, may be better able to implement the act Federal regulatory structure in implementing the than a Federal agency. Furthermore, the proce­ objectives of the act. dures of the judicial process are uniquely The Board appreciates the urgency of ending equipped to resolve matters of law based on discrimination in the granting of credit, and that facts of a specific case within a local context. is why we favor immediate enactment of a Earlier we expressed concern regarding the self-enforcing statute. However, we are con­ level of expertise necessary to determine the vinced that the interests of borrowers and credi­ extent and character of discrimination as it may tors alike will best be served if sufficient time be encountered in the credit field. The Board is allowed to study the basis upon which any is presently participating with the Federal De­ Federal regulatory structure would have to be posit Insurance Corporation, the Comptroller of founded. Our experience with rule writing under the Currency, and the Federal Home Loan Bank Truth in Lending demonstrated that a period of Board in a pilot program for collecting racial 1 year to develop regulations was barely ade­ and ethnic data related to the granting of mort­ quate. The Board’s task there was to construct Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN □ JULY 1974 rules dealing with a quantifiable subject matter tion. There is no room for discrimination in a basically familiar to it. At least as much time society or a financial system such as ours. His­ will be needed to investigate the difficult task tory teaches us that this Nation’s social and of developing regulations relating to the very economic growth was made possible by contri­ subjective and judgmental nature of discrim­ butions from all segments of its diverse citi­ ination in credit granting. In the interim, the zenry. Our Constitution demands that the fur­ Board is, of course, prepared to do a vigorous therance of individual dignity and human rights job of assuring compliance with the act’s provi­ shall remain our continual goal. The Board sions among State member banks. applauds this subcommittee’s efforts to fashion In conclusion, allow me to reiterate the practical legislation that will help to achieve Board’s support for the purposes of this legisla­ these ideals in the credit field. Statement by George W. Mitchell, Vice Chair­ fits—in the form of improved opportunities for man, Board of Governors of the Federal Re­ individual savers-investors and reduced pres­ serve System, before the Committee on Banking sures on the commercial paper market—and a and Currency, U.S. House of Representatives, stronger financial condition for issuing bank July 15, 1974. holding companies. On the other hand, the amount of disinterme­ Mr. Chairman and members of the committee, diation involving banks and thrift institutions the Board of Governors welcomes the opportu­ could be significant if the volume of offerings nity to appear today and comment on the proper of this type were to become large. It should role for public policy in responding to financing be noted, however, that there would not be a initiatives along the lines of the floating rate note dollar-for-dollar transfer of funds out of deposi­ proposed by Citicorp. In various public state­ tary institutions and into such issues, since a ments recently, the Board has indicated that the sizable proportion of the subscriptions to such implications of securities offerings of the type issues undoubtedly would represent shifts from proposed by Citicorp deserve intensive consid­ other market instruments. Moreover, there is no eration by appropriate Government officials and way of predicting in advance the probable effect the Congress so that the best interests of all on the flow of mortgage funds or the deposits segments of the public may be served. of banks and thrift institutions in a particular The characteristics of the Citicorp issue have area, because the notes are to be marketed been developed with the individual saver-inves- nationally through dealers, not locally from tor in mind. The note as now modified would banking offices. Moreover, it is certainly possi­ include an interest rate that varies over time with ble that the proposed issue will, to some extent, the yield on 90-day Treasury bills, and would, compete directly for funds that might otherwise after June 1, 1976, provide the holder with the be placed in time or savings deposits at these option of presenting the notes for redemption institutions. Their net inflows have already semiannually on 30 days’ notice. The new se­ fallen off substantially in recent months, and any curity would be listed on the New York Stock significant additional diversion of funds is a Exchange and would be marketed by brokers matter for public concern. all over the country. The offering would com­ It is not obvious, however, that the long-run pete with a variety of alternatives, but particu­ public interest will be served by prohibiting or larly with Treasury bills and certificates of de­ limiting innovative financing efforts of this type. posit in banks and thrift institutions. The Board believes it would be best to observe The Board believes that there is much in the the results of this innovation in its early stages Citicorp initiative, especially as now proposed, before arriving at a conclusion on this matter. that offers promise of significant public bene­ In the Board’s view, this is particularly so Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 491 because the proposed Citicorp offering has been position of appropriate restrictions by the Board. revised to withhold the redemption option for Such authority would be so broad and flexible about the first 2 years after issue. in character as to be difficult to administer. If, nevertheless, legislation is deemed to be None of these approaches would give the desirable, then several approaches come to Board or any other agency authority to deal with mind. First, any serious damage to housing any offerings outside the bank holding company finance and thrift institutions might be offset by area. If the Citicorp offering is marketed and special assistance programs. Other public offi­ has a good investor acceptance, offerings of this cials are better equipped to comment on specific type will undoubtedly spread. In any event, measures that could be adopted, but one obvious issuers will not be limited to bank holding approach would be to expand the present pro­ companies and their subsidiaries, but will likely gram of subsidized lending by the Federal home include public utilities and national firms pri­ loan banks. Also, since mutual savings banks marily engaged in nonfinancial business. may be especially vulnerable, such programs of With regard to H.R. 15869, a bill introduced assistance might be expanded to include them. only on Thursday by the distinguished chairman Second, the Congress might wish to encour­ on behalf of himself and four members of the age thrift institutions to compete with such of­ committee, the Board has not had time to reach ferings by themselves offering a variable-rate any firm views. And, even if we had been able instrument of some type. For example, they to come up with such views, we would not want could duplicate the Citicorp offering by selling to make them public until we have had time notes through brokers. Or they could issue and to test our thinking. At the moment, then, we market longer-term obligations with flexible believe enactment of H.R. 15869 would be rates. However, if the obligations were to be premature. I might add that in our preliminary issued directly by thrift institutions, it would be review of the bill’s provisions we have encoun­ important that investors be fully aware that such tered a number of difficulties that have strength­ issues were not insured deposits. Even in the ened our determination to recommend against case of the Citicorp issue, the Board recom­ action of this kind. mended to the Securities and Exchange Com­ For example, the bill would require referral mission that the prospectus be amended to in­ by the Board of its determination on any appli­ clude in 10-point bold-face type a similar cau­ cation to a committee consisting of the Board tion. of Governors, the Board of Directors of the Third, the Congress might indicate its intent Federal Deposit Insurance Corporation, the to give the Board authority to subject note issues Federal Home Loan Bank Board, and the Sec­ of bank holding companies and their nonbank retary of the Treasury. In view of existing subsidiaries to regulation—regardless of the in­ responsibilities on each of the agencies named, tended use of the proceeds. This would make including the Securities and Exchange Com­ it possible, for example, for the Board to limit mission, whose views would also be solicited, the ability of the issuer to offer investors the we believe the proposed “committee referral” option of periodic redemption. The Board be­ procedure to be unduly burdensome and, be­ lieves that a redemption opportunity in the early cause of this fact, would not contribute signifi­ life of the issue is the principal feature making cantly to the intended congressional purpose. such issues appear similar to a time deposit. Preferable, it seems to me, would be a require­ Fourth, another approach would be to expand ment that the agency having determination au­ the Board’s regulatory authority with respect to thority be required to elicit the views of the the issuance of “cease-and-desist” orders. This agencies comprising the committee, as well as could enable the Board, on a case-by-case basis, of the SEC, before making a final determination. to determine if a proposed note issue by a bank A similar solicitation of views and comments holding company or its nonbank affiliates would is followed under the Bank Merger Act and, have a sufficiently adverse impact on financial in a more limited way, by the Board under the markets or depositary institutions to justify im­ Bank Holding Company Act. Another concern Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN □ JULY 1974 with the committee bill relates to its applica­ terms of the Bank Holding Company Act. In bility to note issues having a redemption right fact, the financing will improve the financial within 10 years or less. We believe that a shorter position of Citicorp. Indeed the structure of our minimum redemption period should be made the entire financial system would be strengthened subject of the proposed regulatory legislation. if the maturity profile of liabilities of financial Finally, the Board is concerned that an unduly institutions, and depositary institutions in par­ heavy “burden of proof” is placed on an appli­ ticular, were more nearly matched with the cant seeking approval under the bill’s provi­ maturity profile of their assets. sions. A more reasonable requirement might be I should note that our view regarding our a provision that would authorize agency ap­ authority to effect regulation of the proposed proval only if the proposal were found not to Citicorp issue would be no different even with be substantially at variance with the Act, nor passage of the cease-and-desist amendment to have a likely adverse impact on financial contained in the Senate-passed version of H.R. markets, and to be in the public interest. 11221, inasmuch as no aspects of the Citicorp A question has been raised as to whether the proposal would appear to support findings of the Board of Governors now has the requisite au­ nature contemplated by Sec. 8(b) of the Federal thority in Sec. 19(a) of the Federal Reserve Act Deposit Insurance Act (12 U.S.C. 1818(b)). to regulate the Citicorp issue. Because this As a final note, I think it might be relevant question is now being litigated in the U.S. for the recent correspondence with appropriate District Court for the Southern District of New attachments involving the Chairman of the York, it would not be appropriate for me to Board of Governors and myself and the Securi­ comment in detail on this matter. Suffice it to ties and Exchange Commission, the chairman say that the Board believes its present statutory of this committee, and the chairman of Citicorp powers do not authorize us either to prevent a be included in the record of this hearing. To Citicorp-type of issue or to regulate its terms. that end, I have copies of this correspondence, The Board also believes that there are no legal which I shall be happy to make available to the grounds for objecting to the issue under the committee. (See Announcements, pp. 527-29.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON APRIL 15-16, 19741 Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services had declined appreciably in the first quarter of 1974—in large part because of the impact of the oil shortage— and that the GNP implicit deflator had risen at an exceptionally fast pace. Staff projections continued to suggest that real output would change little in the second quarter and that the rise in prices would remain rapid. In March industrial production declined moderately, after having receded more in January and February than had been indicated by earlier estimates for those months. Employment in manufac­ turing establishments also declined further in March, while em­ ployment in other nonagricultural sectors changed little. The un­ employment rate, at 5.1 per cent, was about the same as in the preceding 2 months; both the labor force and total employment remained near the levels of January. According to the advance report, retail sales expanded moderately in March. Wholesale prices of farm and food products declined in March, reflecting for the most part decreases in prices of livestock, meats, grains, cotton, and wool. Wholesale prices of industrial commodi­ ties rose sharply; while price increases were widespread, they were extraordinarily large for iron and steel, nonferrous metals, fuels and power, chemicals, and some types of machinery. In February the consumer price index had risen substantially further, with a significant share of the rise again accounted for by large increases in foods, fuels, and power. The index of average hourly earnings of production workers on nonfarm payrolls advanced moderately lrThis meeting began on the afternoon of April 15 and continued on the following morning. 493 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETIN □ JULY 1974 in the first quarter of the year, after having risen substantially in the second half of 1973, but there were signs that the slowdown resulted at least in part from temporary influences. The latest staff projections, like those of 4 weeks earlier, sug­ gested that easing of the oil shortage following termination of the Arab embargo on oil shipments to the United States would have no more than a marginally expansive impact on over-all real output until the summer. For the second quarter, expectations were that business fixed investment would continue to expand; that govern­ ment purchases of goods and services would grow at a substantial rate; and that personal consumption expenditures would strengthen. It was also anticipated, however, that residential construction outlays would fall further and that net exports would continue to decline. According to the staff projections, real GNP would grow moder­ ately in the second half of the year. It was anticipated that residential construction outlays would turn up; that business fixed investment would rise further; that government purchases of goods and services would continue to grow at a fairly rapid pace; and that disposable personal income and consumption expenditures would expand appreciably more than in the first half. In foreign exchange markets the dollar depreciated against lead­ ing foreign currencies in March and the first few days of April and then recovered somewhat. Market activity in late March and early April was dominated by shifting expectations concerning the value of the German mark. The U.S. balance of payments on the official settlements basis, which had shifted from a substantial surplus in January to a deficit in February, was in deficit again in March. The surplus on U.S. merchandise trade had fallen sharply in February, chiefly because of a large rise in the cost of imported fuel. Growth in total loans and investments at U.S. commercial banks remained rapid in March, reflecting an exceptionally large increase in business loans. In contrast with February, effective rates on bank loans were favorable relative to rates in the commercial paper market, encouraging businesses to concentrate their strong credit demands at banks. In late March and early April the prime rate applicable to large corporations was raised in five steps from 8 3A per cent to 10 per cent at most banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 495 In March the narrowly defined money stock (Mj)2 again expanded at a rapid pace. Over the first quarter as a whole, however, Mx grew at an annual rate of about 6.5 per cent, down from a rate of about 7.5 per cent in the preceding quarter.3 Banks’ net inflows of time and savings deposits other than large-denomination CD’s slowed substantially in March, and the broader measure of the money stock (M2)4 rose more moderately than Mx. In order to help finance growth in loans, banks stepped up the issuance of large-denomination CD’s and increased borrowings in the Euro­ dollar market in March and early April. As a result, the bank credit proxy5 expanded sharply. Net deposit inflows at nonbank thrift institutions in March re­ mained at about the improved rate of the immediately preceding months. Growth in the measure of the money stock that includes such deposits (M3)6—like growth in M2—was more moderate than that in Mx. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages rose somewhat in March, after having declined over the preceding 5 months. On March 20 the Treasury announced that it would raise $4 billion in new money by auctioning an additional $2.5 billion of June tax-anticipation bills on March 26 and $1.5 billion of 2-year notes on March 28. The bills and notes were sold at average prices to yield 8.306 and 8.08 per cent, respectively. The Treasury was expected to announce on May 1 the terms of its mid-May refunding; of the maturing issues, $4.05 billion were held by the public. 2Private demand deposits plus currency in circulation. 3 Growth rates cited are calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. The measure of the money stock subsequently was revised upward to reflect new benchmark data for deposits at nonmember banks; on the revised basis Mx grew at an annual rate of about 7 per cent over the first quarter, down from a rate of about 9 per cent in the preceding quarter. 4 plus commercial bank time and savings deposits other than large-denomination CD’s. 5 Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 6M2 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

496 FEDERAL RESERVE BULLETIN □ JULY 1974 System open market operations since the March 18-19 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions that would moderate growth in monetary aggregates over the months ahead, while taking account of financial market developments, including the prospective Treas­ ury financing. Soon after the meeting, operations were directed toward additional tightening in bank reserve and money market conditions. The Federal funds rate rose somewhat, and member bank borrowings increased appreciably. Toward the end of the inter-meeting period, available data suggested that in the March-April period Mx would grow at a rate somewhat above the specified range of tolerance and that—for the most part because of banks’ issuance of large-denomination CD’s and borrowings in the Euro-dollar and commercial paper mar­ kets—reserves available to support private nonbank deposits (RPD’s) would grow at a rate well above the specified range. Operations were directed toward further tightening in bank reserve and money market conditions, and the Federal funds rate—which had been around 9% per cent just before the March meeting—rose further to about IOV4 per cent. In the 3 weeks ending April 10, member bank borrowings averaged about $1,470 million, about $315 million above the average in the preceding 4 weeks. Short- and long-term market interest rates rose considerably further in the period between the Committee’s meeting on March 18-19 and this meeting—in response to strong business credit demands, to the tightening in money market conditions, and to growing market expectations that economic activity in the months ahead would not be as weak as had been thought earlier. However, toward the end of the period Treasury bill rates moved downward against the trend of other short-term rates, in part because of demands for bills by foreign monetary authorities and also by small investors who were attracted by the high yield relative to interest rates available on time deposits. At the time of this meeting the market rate on 3-month Treasury bills was 7.95 per cent, down from an inter-meeting period high of 8.65 per cent on April 4-5 but unchanged from the rate at the time of the March meeting. In markets for long-term securities, the rise in rates led to somewhat unsettled conditions for a time. Some offerings of new corporate and State and local government bonds that had been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 497 scheduled for March and early April were postponed or canceled. Nevertheless, the volume of new public offerings of corporate bonds was moderately larger in March than in February, while the volume of State and local government offerings was little changed. A small increase in the over-all volume of public offerings was in prospect for April. A staff analysis suggested that growth in the demand for money over the second and third quarters of 1974 was likely to be somewhat greater than had been expected earlier. Consequently, it appeared likely that if Mx were to be held to a growth rate consistent with the Committee’s earlier longer-run objectives for the monetary aggregates, money market conditions would continue to tighten in the period immediately ahead and market interest rates would rise somewhat further. As a result, net inflows of consumertype time and savings deposits to banks and nonbank thrift institu­ tions would decline, bringing about reductions in the rates of growth in both M2 and M3. The analysis also indicated that if the rate of growth in Mx were to be moderately higher than that consistent with the Committee’s earlier longer-run objectives, little change in money market conditions and in market interest rates would be likely; under these conditions, net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions would decline less. The staff analysis suggested that, because of the sizable increase that had taken place in early April, expansion in Mx over the April-May period as a whole would be at a somewhat higher rate than desired for the longer term, even if money market conditions were to tighten further in the period immediately ahead. Growth in M2 in the 2-month period also was expected to be somewhat higher than desired for the longer run, even though net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions were expected to recede. The Committee concluded that the economic situation and out­ look continued to call for moderate growth in monetary aggregates over the longer run and that, in view of the rapid monetary expansion recently, it would seek to achieve less rapid growth in monetary aggregates over the months ahead. The longer-run growth rate for Mx accepted by the Committee was revised upward slightly, however, since attainment of the growth rate contemplated pre­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN □ JULY 1974 viously appeared likely to be associated with sizable declines in net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions. Taking account of the staff analysis, the Committee decided that progress toward its objective of moderating monetary growth could be achieved even if rates of expansion in the aggregates over the April-May period were temporarily above those desired for the longer term. At the same time, however, the members agreed that more rapid progress toward moderate monetary growth should be accepted in the event that growth rates in the period ahead proved to be lower than expected at present. Consequently, they decided that the ranges of tolerance for the 2-month period should be wide enough to allow for such lower rates of growth. Specifically, for the April-May period the Committee adopted ranges of tolerance of 3 to 7 per cent and 5Vi to 8V2 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 same period at an annual rate within a 6 to 11 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 9% per cent to as high as 10% per cent, if necessary, in the course of operations. The members also agreed that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of international and domestic financial market developments. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objectives and con­ straints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services declined appreciably in the first quarter and that price increases were exceptionally large. The decline in eco­ nomic activity reflected mainly the impact of the oil shortage, which is being eased by the ending of the oil embargo. In March industrial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 499 production and manufacturing employment receded further, but retail sales strengthened. The unemployment rate changed little, remaining slightly above 5 per cent. Prices of farm and food products declined in March, but increases among industrial commodities were widespread and extraordinarily large. Advances in wage rates were moderate in the first quarter. In March the dollar depreciated further against leading foreign currencies, and the balance of payments was in deficit on the official settlements basis. The U.S. trade surplus diminished again in February as the cost of imported oil rose sharply. The narrowly defined money stock increased sharply again in March. Broader measures of the money stock rose more moderately, however, as net inflows of consumer-type time deposits at banks slowed substantially. Business short-term credit demands remained strong, with demands at banks exceptionally large. To help finance loan growth, banks in late March and early April stepped up the issuance of large-denomination CD’s and also increased borrowings from abroad. Both short- and long-term market interest rates have risen considerably further in recent weeks. 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, supporting a resumption of real economic growth, and maintaining equilibrium in the country’s balance of payments. To implement this policy, while taking account of the forthcoming Treasury financing and of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions that would moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Black, Brimmer, Bucher, Clay, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Votes against this action: None. Subsequent to the meeting it appeared that in the April-May period the annual rates of growth in the monetary aggregates would be above the upper limits of the ranges that had been specified by the Committee. Largely because of unexpectedly strong money market pressures, the Federal funds rate was around 11 per cent on April 22 and 23, and in the statement week ending April 24 it seemed likely to average slightly above the upper limit of 103A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN □ JULY 1974 per cent set by the Committee. The System Account Manager reported that in order to bring the funds rate back within the range of tolerance he would have to expand reserve-supplying operations, thus stimulating further growth of the monetary aggregates. On April 24, in view of those circumstances and against the background of the increase in Federal Reserve discount rates announced that day, Chairman Burns recommended that the upper limit of the funds rate constraint be raised by lA of a percentage point to 11 per cent. The members of the Committee—with the exception of Mr. Bucher—concurred in the Chairman’s recommendation. In mid-May available data suggested that in the April-May period the annual rates of growth in M1 and M2 would be within the short-run ranges of tolerance specified by the Committee while the rate of growth in RPD’s would be well above its specified range. The Federal funds rate remained above the 11 per cent upper limit of the Committee’s range of tolerance despite System efforts to achieve a lower rate; in the statement week ending May 15, it averaged 11.46 per cent. Major member banks apparently pre­ ferred to avoid borrowing at the discount window, bidding in the Federal funds market instead. In addition, a technical market shortage of collateral for repurchase agreements hampered efforts to provide reserves. In any event, it would have been difficult to bring the funds rate back down to 11 per cent without providing nonborrowed reserves through open market operations on a scale that would have risked market misinterpretation of the System’s policy intent. On May 17 Chairman Burns recommended that the Committee take note of the difficulties faced by the System Account Manager in recent days and, in view of the likelihood that those conditions would persist over the next few days, that it change the ceiling guideline for the funds rate from 11 to 11% per cent. The members—with the exception of Mr. Holland—concurred 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 SECURITIES CREDIT TRANSACTIONS do in fact, make a market in such stock including The Board of Governors has amended its margin making regularly published bona fide bids and regulations to incorporate in the requirements for offers for such stock for their own accounts, or inclusion and continued inclusion on the List of the stock is registered on a securities exchange OTC Margin Stocks significant changes which that is exempted by the Securities and Exchange have occurred in the over-the-counter (OTC) mar­ Commission from registration as a national se­ ket. curities exchange pursuant to section 5 of the Securities Exchange Act of 1934 (15 U.S.C. 78e), AMENDMENTS TO REGULATIONS (3) There are 1,200 or more holders of record, G, T, AND U as defined in SEC Rule 12g5-l (17 C.F.R. § 1. Effective July 25, 1974, subparagraph (4) of 240.12g5-l), of the stock who are not officers, section 207.2(f); subparagraph (4) of section directors, or beneficial owners of 10 per cent or 220.2(e); and subparagraph (4) of section more of the stock. 221.3(d), are amended to read as follows: (4) The issuer is organized under the laws of the United States or a State 9 and it, or a prede­ * Jfc * * * cessor in interest, has been in existence for at least 3 years, (4) The foregoing notwithstanding, the Board (5) The stock has been publicly traded for at may omit or remove any stock that is not traded least 6 months, on a national securities exchange from or add any such stock to such list of OTC margin stocks, if (6) Daily quotations for both bid and asked in the judgment of the Board, such action is prices for the stock are continuously available to necessary or appropriate in the public interest. the general public, (7) There are 500,000 or more shares of such 4: % ^ stock outstanding in addition to shares held bene­ 1. Effective July 25, 1974, paragraphs (d) and ficially by officers, directors, or beneficial owners (e) of section 207.5 are amended as set forth of more than 10 per cent of the stock; and shall meet two of the three additional requirements that: below: (8) The shares described in subparagraph (7) of SECTION 207.5—SUPPLEMENT this paragraph have a market value of at least $5 * * * * million, (9) The minimum average bid price of such (d) Requirements for inclusion on list of OTC stock, as determined by the Board, is at least $10 margin stock. Except as provided in subparagraph per share, and (4) of § 207.2(f), such stock shall meet the re­ (10) The issuer had at least $5 million of capital, quirements that: surplus, and undivided profits. (1) The stock is subject to registration under (e) Requirements for continued inclusion on section 12(g)(1) of the Securities Exchange Act list of OTC margin stock. Except as provided of 1934 (15 U.S.C. 787(g)(1)), is issued by an in subparagraph (4) of § 207.2(f), such stock shall insurance company subject to section 12(g)(2)(G) meet the requirements that: (15 U.S.C. 787(g)(2)(G)) that has at least $1 (1) The stock continues to be subject to regis­ million of capital and surplus, or is issued by a tration under section 12(g)(1) of the Securities closed-end investment management company sub­ Exchange Act of 1934 (15 U.S.C. 787(g)(1)), or ject to registration pursuant to section 8 of the if issued by an insurance company such issuer Investment Company Act of 1940 (15 U.S.C. § continues to be subject to section 12(g)(2)(G) (15 80a-8), (2) Five or more dealers stand willing to, and 9As defined in 15 U.S.C. 78c(a)(16). 501 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN □ JULY 1974 U.S.C. 787(g)(2)(G)) and to have at least $1 closed-end investment management company sub­ million of capital and surplus, or if issued by a ject to registration pursuant to section 8 of the closed-end investment management company such Investment Company Act of 1940 (15 U.S.C. § issuer continues to be subject to registration pur­ 80a-8), suant to section 8 of the Investment Company Act (2) Five or more dealers stand willing to, and of 1940 (15 U.S.C. § 80a-8). do in fact, make a market in such stock including (2) Three or more dealers stand willing to, and making regularly published bona fide bids and do in fact, make a market in such stock including offers for such stock for their own accounts, or making regularly published bona fide bids and the stock is registered on a securities exchange offers for such stock for their own accounts, or that is exempted by the Securities and Exchange the stock is registered on a securities exchange Commission from registration as a national se­ that is exempted by the Securities and Exchange curities exchange pursuant to section 5 of the Commission from registration as a national se­ Securities Exchange Act of 1934 (15 U.S.C. 78e), curities exchange pursuant to section 5 of the (3) There are 1,200 or more holders of record, Securities Exchange Act of 1934 (15 U.S.C. 78e), as defined in SEC Rule 12g5-l (17 C.F.R. § (3) There continue to be 800 or more holders 240.12g5-l), of the stock who are not officers, of record, as defined in SEC Rule 12g5-1 (17 directors, or beneficial owners of 10 per cent or C.F.R. § 240.12g5-l), of the stock who are not more of the stock, officers, directors, or beneficial owners of 10 per (4) The issuer is organized under the laws of cent or more of the stock, the United States or a State 6 and it, or a prede­ (4) The issuer continues to be a U.S. Corpora­ cessor in interest, has been in existence for at least tion, 3 years, (5) Daily quotations for both bid and asked (5) The stock has been publicly traded for at prices for the stock are continuously available to least 6 months, the general public, (6) Daily quotations for both bid and asked (6) There are 300,000 or more shares of such prices for the stock are continuously available to stock outstanding in addition to shares held bene­ the general public, ficially by officers, directors, or beneficial owners (7) There are 500,000 or more shares of such of more than 10 per cent of the stock; and shall stock outstanding in addition to shares held bene­ meet two of the three additional requirements that: ficially by officers, directors, or beneficial owners (7) The shares described in subparagraph (6) of of more than 10 per cent of the stock; and shall this paragraph continue to have a market value meet two of the three additional requirements that: of at least $2.5 million, (8) The shares described in subparagraph (7) of (8) The minimum average bid price of such this paragraph have a market value of at least $5 stock, as determined by the Board, is at least $5 million, per share, and (9) The minimum average bid price of such (9) The issuer continues to have at least $2.5 stock, as determined by the Board, is at least $10 million of capital, surplus, and undivided profits. per share, and 2. Effective July 25, 1974, paragraphs (h) and (10) The issuer had at least $5 million of capital, (i) of section 220.8 are amended as set forth surplus, and undivided profits. below: (i) Requirements for continued inclusion on list of OTC margin stock. Except as provided SECTION 220.8— SUPPLEMENT in subparagraph (4) of § 220.2(e), OTC margin stock shall meet the requirements that: (1) The stock continues to be subject to regis­ (h) Requirements for inclusion on list of OTC tration under section 12(g)(1) of the Securities margin stock. Except as provided in subparagraph Exchange Act of 1934 (15 U.S.C. 787(g)(1)), or (4) of § 220.2(e), OTC margin stock shall meet if issued by an insurance company such issuer the requirements that: continues to be subject to section 12(g)(2)(G) (15 (1) The stock is subject to registration under U.S.C. 787(g)(2)(G)) and to have at least $1 section 12(g)(1) of the Securities Exchange Act million of capital and surplus, or if issued by a of 1934 (15 U.S.C. 787(g)(1)), is issued by an closed-end investment management company such insurance company subject to section 12(g)(2)(G) issuer continues to be subject to registration pur- (15 U.S.C. 787(g)(2)(G)) that has at least $1 million of capital and surplus, or is issued by a 6 As defined in 15 U.S.C. 78c(a)(16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 503 suant to section 8 of the Investment Company Act (2) Five or more dealers stand willing to, and of 1940 (15 U.S.C. § 80a-8). do in fact, make a market in such stock including (2) Three or more dealers stand willing to, and making regularly published bona fide bids and do in fact, make a market in such stock including offers for such stock for their own accounts, or making regularly published bona fide bids and the stock is registered on a securities exchange offers for such stock for their own accounts, or that is exempted by the Securities and Exchange the stock is registered on a securities exchange Commission from registration as a national se­ that is exempted by the Securities and Exchange curities exchange pursuant to section 5 of the Commission from registration as a national se­ Securities Exchange Act of 1934 (15 U.S.C. 78e), curities exchange pursuant to section 5 of the (3) There are 1,200 or more holders of record, Securities Exchange Act of 1934 (15 U.S.C. 78e), as defined in SEC Rule 12g5-l (17 C.F.R. § (3) There continue to be 800 or more holders 240.12g5-l), of the stock who are not officers, of record, as defined in SEC Rule 12g5-1 (17 directors, or beneficial owners of 10 per cent or C.F.R. § 240.12g5-l), of the stock who are not more of the stock, officers, directors, or beneficial owners of 10 per (4) The issuer is organized under the laws of cent or more of the stock, the United States or a State 9 and it, or a prede­ (4) The issuer continues to be a U.S. Corpora­ cessor in interest, has been in existence for at least tion, 3 years, (5) Daily quotations for both bid and asked (5) The stock has been publicly traded for at prices for the stock are continuously available to least 6 months, the general public, (6) Daily quotations for both bid and asked (6) There are 300,000 or more shares of such prices for the stock are continuously available to stock outstanding in addition to shares held bene­ the general public, ficially by officers, directors, or beneficial owners (7) There are 500,000 or more shares of such of more than 10 per cent of the stock; and shall stock outstanding in addition to shares held bene­ meet two of the three additional requirements that: ficially by officers, directors, or beneficial owners (7) The shares described in subparagraph (6) of of more than 10 per cent of the stock; and shall this paragraph continue to have a market value meet two of the three additional requirements that: of at least $2.5 million, (8) The shares described in subparagraph (7) of (8) The minimum average bid price of such this paragraph have a market value of at least $5 stock, as determined by the Board, is at least $5 million, per share, and (9) The minimum average bid price of such (9) The issuer continues to have at least $2.5 stock, as determined by the Board, is at least $10 million of capital, surplus, and undivided profits. per share, and 3. Effective July 25, 1974, paragraphs (d) and (10) The issuer had at least $5 million of capital, (c) of section 221.4 are amended as set forth surplus, and undivided profits. below: (e) Requirements for continued inclusion on list of OTC margin stock. Except as provided SECTION 221.4— SUPPLEMENT in subparagraph (4) of § 221.3(d), OTC margin stock shall meet the requirements that: (d) Requirements for inclusion on list of OTC (1) The stock continues to be subject to regis­ margin stock. Except as provided in subparagraph tration under section 12(g)(1) of the Securities (4) of § 221.3(d), OTC margin stock shall meet Exchange Act of 1934 (15 U.S.C. 787(g)(1)), or the requirements that: if issued by an insurance company such issuer (1) The stock is subject to registration under continues to be subject to section 12(g)(2)(G) (15 section 12(g)(1) of the Securities Exchange Act U.S.C. 787(g)(2)(G)) and to have at least $1 of 1934 (15 U.S.C. 787(g)(1)), is issued by an million of capital and surplus, or if issued by a insurance company subject to section 12(g)(2)(G) closed-end investment management company such (15 U.S.C. 787(g)(2)(G)) that has at least $1 issuer continues to be subject to registration pur­ million of capital and surplus, or is issued by a suant to section 8 of the Investment Company Act closed-end investment management company sub­ of 1940 (15 U.S.C. § 80a-8). ject to registration pursuant to section 8 of the (2) Three or more dealers stand willing to, and Investment Company Act of 1940 (15 U.S.C. § 80a-8), 9As defined in 15 U.S.C. 78c(a)(16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN □ JULY 1974 do in fact, make a market in such stock including BANK HOLDING COMPANIES making regularly published bona fide bids and offers for such stock for their own accounts, or To resolve any ambiguity concerning trust the stock is registered on a securities exchange companies’ participation in the federal funds mar­ that is exempted by the Securities and Exchange ket, the Board of Governors has amended its Commission from registration as a national se­ Regulation Y to delete the phrase “sale of federal curities exchange pursuant to section 5 of the funds” contained in section 225.4(a)(4)(iii). Securities Exchange Act of 1934 (15 U.S.C. 78e), AMENDMENT TO REGULATION Y (3) There continue to be 800 or more holders of record, as defined in SEC Rule 12g5-l (17 Effective June 24, 1974, section 225.4(a) C.F.R. § 240.12g5-l), of the stock who are not (4)(iii), as modified, is amended to read as officers, directors, or beneficial owners of 10 per follows: cent or more of the stock, SECTION 225.4— NONBANKING ACTIVITIES (4) The issuer continues to be a U.S. Corpora­ (a) Activities closely related to banking or tion, managing or controlling banks. * * * The fol­ (5) Daily quotations for both bid and asked lowing activities have been determined by the prices for the stock are continuously available to Board to be so closely related to banking or the general public, and managing or controlling banks as to be a proper (6) There are 300,000 or more shares of such incident thereto: stock outstanding in addition to shares held bene­ ficially by officers, directors, or beneficial owners of more than 10 per cent of the stock; and shall (4) * * * (iii) making of call loans to securities meet two of the three additional requirements that: dealers or purchase of money market instruments (7) The shares described in subparagraph (6) of such as certificates of deposit, commercial paper, this paragraph continue to have a market value government or municipal securities, and bankers of at least $2.5 million, acceptances (such authorized loans and invest­ (8) The minimum average bid price of such ments, however, may not be used as a method stock, as determined by the Board, is at least $5 of channeling funds to nonbanking affiliates of the per share, and trust company). . . . (9) The issuer continues to have at least $2.5 million of capital, surplus, and undivided profits. * * * * * BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views COMMERCE BANCSHARES, INC., has expired, and the Board has considered the KANSAS CITY, MISSOURI application and all comments received, including the views of Grandview Bank & Trust Company, Order Denying A cquisition of Bank Grandview, Missouri, in light of the factors set Commerce Bancshares, Inc., Kansas City, forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Missouri, a bank holding company within the Applicant is the third largest bank holding com­ meaning of the Bank Holding Company Act, has pany and banking organization in Missouri in applied for the Board’s approval under § 3(a)(3) terms of total deposits, and the largest in terms of the Act (12 U.S.C. 1842(a)(3)) to acquire more of number of subsidiary banks, and has been than 80 per cent of the voting shares of First following an aggressive program of expansion National Bank of Linn Creek (“Bank”), Cam- through the acquisition of banks. Applicant con­ denton, Missouri. trols 27 subsidiary banks located throughout the Notice of the application, affording opportunity State, with aggregate deposits approximating $1 for interested persons to submit comments and billion, representing 7.7 per cent of total commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 505 cial bank deposits in Missouri.1 Applicant’s ac­ acquisition of the largest bank in the Camdenton quisition of Bank would increase Applicant’s con­ market, and would be clearly preferable to the trol of State deposits by an additional 0.16 per proposal herein from a competitive standpoint. cent; Applicant’s rank among the State’s banking Such an alternative proposal would serve to pro­ organizations would not change. mote competition in the market. Accordingly, the Bank (deposits of $21.6 million) is the largest Board concludes that consummation of this pro­ of six banks in the Camdenton banking market posal would have significantly adverse effects on (approximated by Camden County), the primary potential competition in Camden County. banking market in this case, and controls approxi­ In addition to the above factors, the Board is mately 44 per cent of total deposits in commercial further concerned by the fact that Applicant ap­ banks in the market. The second and third largest pears to be in the process of acquiring a substantial banks in the market control, respectively, 28 per position in a four-county region in the south of cent and 12 per cent of the deposits in the market. Lake of the Ozarks region (approximated by The market shares of the remaining banks in the Green, Polk, Laclede, and Camden Counties). market range from 3 to 7 per cent. None of the This four-county region involves the Springfield, six banks in the market are presently affiliated with Bolivar, Lebanon, and Camdenton banking mar­ a bank holding company. kets. Applicant is the largest bank holding com­ Applicant’s subsidiary bank closest to Bank is pany and second largest banking organization in located 25 miles south of Camdenton, in an adja­ the Springfield banking market, with two subsidi­ cent banking market, and there is no significant ary banks controlling almost 29 per cent of the existing competition between Bank and any of market deposits; the only bank holding company Applicant’s subsidiary banks. While the effects of and second largest banking organization in the Applicant’s proposal on existing competition do Bolivar banking market, with one subsidiary bank not raise serious impedimants to approval of the controlling about 31 per cent of the market depos­ application, consummation of the proposal would, its; the only bank holding company and the largest in the Board’s view, have significantly adverse banking organization in the Lebanon banking effects on potential competition in the Camdenton market, with one subsidiary bank controlling al­ banking market. As noted above, Applicant is a most 46 per cent of the market doposits. Applicant rapidly expanding organization; it was formed now proposes to enter the Camdenton banking with four banks in 1968, acquired 10 more banks market, where it would be the only bank holding by mid-1970, and since then, has expanded from company and largest banking organization, 14 to 27 banks. Applications have been proposed through acquisition of the market’s most signifi­ or are pending for the acquisition or formation of cant competitor by virtue of its control of about six additional banks. Applicant operates in more 44 per cent of the market deposits. Approval of markets, and controls more subsidiary banks, than this proposal would strengthen Applicant’s influ­ any other banking organization in Missouri. Cam­ ence in this area of the State relative to the area’s den County is viewed as a relatively attractive other banking organizations and could raise further market for entry since it serves as a major trade barriers to entry by discouraging smaller bank center for the Lake of the Ozarks region and is holding companies from entering this region. experiencing substantial population growth and On the basis of the foregoing and the facts of substantial economic development, both of which record, the Board concludes that consummation are expected to continue into the future. Absent of Applicant’s proposal would have significant consummation of the proposed acquisition, Appli­ adverse effects on competition. Unless the Board cant may be regarded as one of the most likely finds that such anticompetitive effects are clearly potential entrants into this market, having both the outweighed in the public interest by the probable incentive and the resources to enter by means of effect of the transaction in meeting the conven­ a “foothold” entry. Given the present structure ience and needs of the community to be served, of banking in the relevant market, as well as the application must be denied. Applicant’s already sizable position in the State, The financial and managerial resources and fu­ a foothold acquisition of a bank in the relevant ture prospects of Applicant and its subsidiary market is a realistic alternative to the proposed banks, and those of Bank, are regarded as satis­ factory and consistent with approval of the appli­ ‘AH banking data are as of June 30, 1973, and reflect bank holding company formations and acquisitions approved through cation. However, these considerations do not out­ May 31, 1974. weigh the adverse competitive effects connected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 FEDERAL RESERVE BULLETIN □ JULY 1974 with the proposal. There is some indication in the “foothold” entry In addition, the competitive record that certain of the banking needs of the implications of this proposal must be viewed in relevant market are not being met, particularly a conjunction with an analysis of the absolute size demand for convenient trust services. Applicant of the individual banks involved. The First Na­ proposes to cause Bank to apply for trust powers tional Bank of Linn Creek has deposits of only and to assist Bank in the provision of trust ser­ $21.6 million, and acquisition of such a small bank vices. While such improvements in Bank’s ser­ would, in my view, have only minimal adverse vices lend some weight toward approval, the competitive consequences. Board does not consider these factors sufficient The majority is apparently concerned with a to outweigh clearly the significantly adverse com­ concept of “multi-market regional dominance.” petitive effects of the proposal. The majority’s view is that Applicant’s presence It is the Board’s judgment that consummation in the Springfield, Camdenton, Bolivar, and Le­ of the proposed acquisition would not be in the banon banking markets would give Applicant a public interest and that the application should be disproportionate influence in the region and have denied. an adverse effect on competition there. In the On the basis of the record, the application is context of the present application, I would not denied for the reasons summarized above. regard the four-county region as a relevant area By order of the Board of Governors, effective in which to assess the competitive impact of this June 20, 1974. proposal. In my view, the proper geographic area for competitive analysis of Applicant’s proposal Voting for this action: Vice Chairman Mitchell and Gover­ is the Camdenton banking market and, in that area, nors Brimmer, Bucher, and Holland. Voting against this ac­ tion: Governor Sheehan. Absent and not voting: Chairman the proposal would not have a significant adverse Burns and Governor Wallich. effect on competition. (Signed) Chester B. Feldberg, In addition, there are significant public benefits [seal] Secretary of the Board. associated with this proposal. The financial re­ sources and managerial expertise of Applicant, as one of the State’s leading banking organizations, Dissenting Statement of should assist Bank in the expansion of its services Governor Sheehan to the community, particularly with regard to I dissent from the majority’s denial of this meeting the demand for loans in excess of Bank’s application. In my view, any slight anticompeti­ lending limit and stabilizing the economy of this tive effects that might result from the proposal are rural market by helping to meet the peak seasonal outweighed by the public benefits that would result demands of the tourist industry. In addition, Ap­ from the increased competition and financial ex­ plicant will enable Bank to offer trust services, pertise that would accompany Applicant’s entry which are not presently available in the county. into the Camdenton banking market. For the foregoing reasons, it is my view that While consummation of the proposed acquisi­ the benefits to the public to be derived from this tion would eliminate the possibility of competition proposal outweigh any slight adverse effects on developing between Applicant and Bank, I do not competition that might flow from the proposal. believe the development of this potential competi­ Accordingly, I would approve the application. tion to be likely, either by means of Applicant’s entry into the market de novo or by “foothold” FIRST CITY BANCORPORATION OF acquisition. The population of Camden County is TEXAS, INC., less than 14,000 people and, although the Cam­ HOUSTON, TEXAS denton banking market has experienced a signifi­ Order Denying A cquisition of Bank cant rate of population increase over the past decade (46 per cent), in actual numbers the in­ First City Bancorporation of Texas, Inc., Hous­ crease has been only 4,000 people. In addition, ton, Texas, a bank holding company within the other indicators such as the deposits per banking meaning of the Bank Holding Company Act, has office ratio ($8.1 million for the Camdenton market applied for the Board’s approval under § 3(a)(3) versus $16.9 million for the State), and population of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 per banking office ratio (2,540 for the market per cent of the voting shares (less directors’ quali­ versus 5,255 for the State) also suggest that the fying shares) of the successor by merger to market is not especially attractive for de novo or Meyerland Bank, Houston, Texas (“Bank”). The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 507 bank into which Bank is to be merged has no southwestern portion of the Houston SMSA, about significance except as a means to facilitate the nine miles from downtown Houston, the site of acquisition of the voting shares of Bank. Accord­ Applicant’s lead bank, First City National Bank ingly. the proposed acquisition of shares of the of Houston (“First City Bank”) ($1.6 billion in successor organization is treated herein as the deposits). The record indicates that there is exist­ proposed acquisition of the shares of Bank. ing competition between Bank and First City Notice of the application, affording opportunity Bank. Moreover, Applicant operates three other for interested persons to submit comments and banking subsidiaries in the southwestern Houston views, has been given in accordance with § 3(b) area, each within a six mile radius of Bank. of the Act. The time for filing comments and views Applicant’s existing banking subsidiaries in the has expired, and the Board has considered the relevant market derive about $15.3 million in application and all comments received in light of deposits and $14.4 million in loans from Bank’s the factors set forth in § 3(c) of the Act (12 U.S.C. service area. Accordingly, consummation of the 1842(c)). proposed acquisition would adversely affect exist­ Applicant is the second largest banking organi­ ing competition within the relevant market and zation and bank holding company in Texas and would further solidify Applicant’s position as the controls 21 banks with aggregate deposits of $2.6 leading banking organization within the market. billion, representing approximately 7.4 per cent Bank’s service area is one of the fastest devel­ of the total deposits in commercial banks in oping areas in Houston. During the decade of the Texas.1 Applicant also owns interests of between 1960’s, population of the southwestern portion of 5 and less than 25 per cent in eight other banks the Houston market increased nearly 63 per cent, ($178 million in deposits). Acquisition of Bank a rate of growth one-and-a-half times greater than ($19.3 million in deposits) would increase Appli­ that for the SMSA as a whole. In recognition of cant’s share of commercial bank deposits in Texas the growth in the area and the prospects for its by less than . 1 of one per cent, and would not continued development, Applicant previously en­ significantly increase the concentration of banking tered this area through the establishment of two resources in Texas. de novo banks and the acquisition of an existing Applicant is the largest banking organization bank, Highland Village State Bank ($34.3 million operating in the Houston market with 10 banking in deposits). The Board notes also that Applicant subsidiaries controlling *21 per cent of total market has recently announced its intention to establish deposits.2 Acquisition of Bank, which holds ap­ an additional new bank in this area to be located proximately .2 of one per cent of commercial bank only 4.5 miles southwest of Bank. Approval of deposits in the relevant market, would further the application would result in a further concen­ enhance somewhat Applicant’s market position in tration of Applicant’s resources within one of the the Houston area. Applicant’s market share and major growth areas of the Houston market, and that of the second leading banking organization foreclose the possibility of increased competition in the Houston market (Texas Commerce Banc­ developing between Bank and Applicant’s subsid­ shares, Inc.) is in excess of 37 per cent of market iaries located in the area. Moreover, it appears deposits, while the market share of the third largest likely that Applicant would, absent approval of banking organization in the market is less than half the subject acquisition, attempt to expand into this that of Applicant. area in the reasonably near future through de novo In addition to the above-noted effects with re­ entry, an alternative that would result in additional spect to Applicant’s position within the overall competition developing with Bank. Consumma­ Houston market, acquisition of Bank by Applicant tion of the proposal would also remove Bank as would eliminate existing competition and foreclose a “foothold” acquisition for another banking or­ the development of significant potential competi­ ganization not presently represented in the market. tion in the relevant market. Bank is located in the On the basis of these factors and others of record, the Board concludes that consummation of the proposed acquisition would foreclose the develop­ JA11 banking data, unless otherwise indicated, are as of June ment of significant potential competition. 30, 1973, and reflect bank holding company formations and In its application, Applicant asserts that the acquisitions approved through May 31, 1974. proposal constitutes only the restructuring of an 2By action of this date, the Board approved Applicant’s acquisition of an additional Houston banking subsidiary, Al- existing corporate relationship. Applicant notes the meda-Genoa Bank. following: Bank was organized under the direction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN □ JULY 1974 and supervision of officers of Applicant’s lead be, and hereby is, denied. bank, First City Bank, in 1959; Bank’s first pres­ By order of the Board of Governors, effective ident and first managing officers were officers of June 26, 1974. Applicant’s lead bank; and, three other officers of Applicant’s lead bank were on Bank’s original Voting for this action: Vice Chairman Mitchell and Gover­ nors Brimmer, Bucher, Holland, and Wallich. Voting against board of directors. This relationship, it is claimed, this action: Governor Sheehan. Absent and not voting: Chair­ has continued up to the present time. The Board man Burns. notes that at the time of Bank’s organization Ap­ (Signed) Chester B. Feldberg, plicant did not directly own any of Bank’s stock [seal] Secretary of the Board. and that Applicant now owns directly only 4.8 per cent of Bank’s stock. At the present time, First Dissenting Statement by City Bank has five representatives on Bank’s Governor Sheehan nineteen-member board of directors. Additionally, I dissent from the majority’s denial of the ac­ officers and/or directors of Applicant or its subsid­ quisition by Applicant of Meyerland Bank. I be­ iaries own 14.6 per cent of Bank’s stock. This lieve that the record shows there has existed a close represents a significant decline from the 24.5 per relationship between Meyerland Bank and Appli­ cent interest in Bank held by comparable officers cant and that termination of that relationship is and/or directors of Bank in 1959, the time of not a likely eventuality. Bank’s organization. A majority of Bank’s shares There has been a long existing and close rela­ is now held by individuals (rather than corporate tionship between Meyerland Bank and Applicant. entities) who also have interests in, or some rela­ This relationship is currently manifested, in part, tionship with, Applicant. While approval of the by common officer/director relationships: Five of subject application would result in a transfer of the officers of Applicant’s lead bank are directors these individual ownership interests in Bank to of Meyerland Bank, and Meyerland Bank’s chair­ Applicant, it is the Board’s view that such indi­ man is an officer of Applicant’s lead bank. Fur­ vidual holdings lack the permanence of a corporate thermore, officers of Applicant and members of holding and, on the facts herein, denial of the a law firm closely tied to Applicant own substantial application would preserve the possibility of ter­ amounts of voting shares of Meyerland Bank. As mination or diffusion of these interests; accord­ Applicant has indicated, if these individual (but ingly, the Board is of the view that it is not an related) interests are grouped with Applicant’s unlikely prospect that common ownership may be holdings in Meyerland Bank, the total would be diminished or terminated and Bank may become in excess of 50 per cent of the voting shares of an independent competitor in the market. Bank. Inasmuch as there are no significant minor­ The Board concludes, therefore, that competi­ ity blocks of shares in Meyerland Bank outstand­ tive considerations weigh against approval of the ing, it is clear Applicant has considerable influence acquisition of Bank by Applicant and such con­ (if not actual control) over Bank. In my view, the siderations require denial of the application unless existence of this relationship forecloses the possi­ the anticompetitive effects are clearly outweighed bility that consummation of the proposal would by benefits to the public in meeting the conven­ have any significant adverse effects on competi­ ience and needs of the communities to be served. tion. The financial and managerial resources and fu­ Accordingly, for the above reasons, I disagree ture prospects of Applicant, its subsidiary bank, with the majority’s denial of the application. and Bank are regarded as generally satisfactory. There is no evidence in the record to indicate that the banking needs of the relevant market are not FIRST CITY BANCORPORATION OF TEXAS, being met by the existing institutions. Although INC., HOUSTON, TEXAS considerations relating to the convenience and needs of the communities to be served are consist­ O rder Approving Acquisition o f Bank ent with approval, they do not, in the Board’s First City Bancorporation of Texas, Inc., Hous­ view, outweigh the anticompetitive effects inher­ ton, Texas, a bank holding company within the ent in the proposal. It is the Board’s judgment meaning of the Bank Holding Company Act, has that, on the basis of the entire record, consumma­ applied for the Board’s approval under § 3(a)(3) tion of the proposed acquisition would not be in of the Act (12 U.S.C. 1842(a)(3)) to acquire all the public interest and that the application should of the voting shares of the successor by merger Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 509 to the Almeda-Genoa Bank, Houston, Texas tors in the market and the restriction placed on (“Bank”). The bank into which Bank is to be branching by State law. Furthermore, in view of merged has no significance except as a means to Bank’s small size and its market position, it does facilitate the acquisition of the voting shares of not appear that Applicant’s acquisition of Bank Bank. Accordingly, the proposed acquisition of would result in barriers to entry into the vicinity shares of the successor organization is treated of Bank by other banking organizations. Although herein as the proposed acquisition of the shares Applicant has the resources and expertise to ex­ of Bank. pand in this area of the market de novo , the Board Notice of the application, affording opportunity views the proposed acquisition as a “foothold” for interested persons to submit comments and entry that is tantamount to de novo entry in view views, has been given in accordance with § 3(b) of the small size of Bank. Accordingly, on the of the Act. The time for filing comments and views basis of the record, the Board concludes that has expired, and the Board has considered the consummation of the proposal would not eliminate application and all comments received in light of a significant amount of existing competition nor the factors set forth in § 3(c) of the Act (12 U.S.C. adversely affect potential competition. 1842(c)). The financial and managerial resources and fu­ Applicant, the second largest banking organi­ ture prospects of Applicant, its subsidiary banks zation and bank holding company in Texas, con­ and Bank are generally satisfactory and consistent trols 21 banks with aggregate deposits of $2.6 with approval of the application. While there is billion, representing approximately 7.4 per cent no evidence in the record to indicate that the of the total deposits in commercial banks in banking needs of the community are not presently Texas.1 Applicant also owns interests of between being met, affiliation with Applicant would enable 5 and less than 25 per cent in eight other banks Bank to expand its commercial and real estate loan (aggregate deposits of $178 million). Acquisition activities. Therefore, convenience and needs con­ of Bank ($7.9 million in deposits) would increase siderations are consistent with approval of the Applicant’s share of commercial bank deposits in application. It is the Board’s judgment that the Texas by less than one-tenth of one per cent, and proposed transaction is in the public interest and would not significantly increase the concentration should be approved. of banking resources in Texas. On the basis of the record, the application is Bank, which is located about 13 miles southeast approved for the reasons summarized above. The of downtown Houston, operates in the Houston transaction shall not be made (a) before the thir­ banking market (approximated by the Houston tieth calendar day following the effective date of SMSA). Bank is the 123rd largest of 162 banks this Order or (b) later than three months after the in the market and controls 0.1 per cent of total effective date of this Order, unless such period market deposits. Applicant is the largest banking is extended for good cause by the Board, or by organization operating in the Houston market with the Federal Reserve Bank of Dallas pursuant to 10 banking subsidiaries controlling 21 per cent of delegated authority. total market deposits.2 Although Applicant and By order of the Board of Governors, effective Bank operate in the same market, consummation June 26, 1974. of the proposal would not result in the elimination Voting for this action: Vice Chairman Mitchell and Gover­ of significant existing competition. Applicant’s nors Sheehan, Bucher, and Wallich. Voting against this action: nearest subsidiary bank, Gulfgate State Bank of Governors Brimmer, and Holland. Absent and not voting: Houston (“Gulfgate Bank”) is located 6.5 miles Chairman Burns. from Bank and neither bank derives a significant (Signed) C hester B. Feldberg, amount of business from the service area of the [seal] Secretary of the Board. other. The prospect of competition developing in the future between Applicant’s subsidiaries and Dissenting Statement of Bank is lessened by the large number of competi­ Governor Brimmer I would deny the application of First City Ban­ corporation of Texas, Inc., Houston, Texas, to *A11 banking data are as of June 30, 1973, and reflect bank acquire Almeda-Genoa Bank, Houston, Texas. In holding company formations and acquisitions approved through my opinion, the proposed acquisition would have May 31, 1974. significant adverse effects on potential competition 2By action of this date, the Board denied applicant’s acqui­ sition of Meyerland Bank, Houston, Texas. that are not outweighed by benefits to the public. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN □ JULY 1974 In my view, Applicant is a likely entrant into market by its lead bank and nine other banking this area of the Houston market. As the largest subsidiaries. Even with this representation, I banking organization in the market, Applicant has would not be troubled by Applicant acquiring the resources to enter this area de novo. Further­ several more small banks or forming some more more, Applicant had evidenced its interest in this de novo banks scattered throughout the metro­ area by its application for a national bank charter politan area of Houston. However, I am concerned to open a de novo bank in the vicinity of Bank— an that Applicant’s expansion strategy appears to application which was subsequently withdrawn. I concentrate on the major traffic arteries in the believe that if the instant application for acquisi­ southwestern and southeastern quadrants of the tion of Bank were denied, there is a strong proba­ city, the most rapidly-growing areas in the market. bility that Applicant would renew its attempt to Approval of further acquisitions by Applicant in enter this area of the market de novo. these locations would result in Applicant strength­ Approval of the proposed acquisition would also ening its already substantial position in these subresult in Applicant further increasing its repre­ markets and may foreclose the possibility of other sentation in this area of Houston. Bank is situated organizations entering such areas. Accordingly, on on a freeway in a rapidly-developing suburban area the basis of the facts of this case, I would deny in the southeastern section of the Houston SMSA. Applicant presently controls one of the four banks located along this freeway and approval of this FIRST FINANCIAL GROUP OF application would give Applicant control of a NEW HAMPSHIRE, INC., second bank located in the same area. In my MANCHESTER, NEW HAMPSHIRE opinion, Applicant should not be permitted to acquire this second bank— a potential source of Order Denying A cquisition of Bank increased competition to Applicant in the future. First Financial Group of New Hampshire, Inc. Instead, it should be encouraged to enter this area (formerly The Manchester Corporation), Man­ de novo as originally planned. chester, New Hampshire, a bank holding company Accordingly, I conclude on the basis of the within the meaning of the Bank Holding Company record that the proposed acquisition would have Act, has applied for the Board’s approval under significant adverse effects upon potential competi­ § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to tion. Since I find no benefits to the public to acquire 80 per cent or more of the voting shares outweigh such adverse effects, I would deny the of Nashua Trust Company, Nashua, New Hamp­ application. shire (“Bank”). Notice of the application, affording opportunity Dissenting Statement of for interested persons to submit comments and Governor Holland views, has been given in accordance with § 3(b) I would deny the application by First City Ban­ of the Act. The time for filing comments and views corporation of Texas, Inc., to acquire another bank has expired, and the Board has considered the in one of the attractive submarket areas of Houston application and all comments received in light of in which it already has several other offices. The the factors set forth in § 3(c) of the Act (12 U.S.C. present application is suggestive, in my view, of 1842(c)). a tendency of some large bank holding companies Applicant, the second largest banking organi­ which control a significant percentage of the de­ zation in the State, has one banking subsidiary, posits in large metropolitan areas to expand their The Manchester Bank, Manchester, New Hamp­ market position by increasing the number and shire (“Manchester Bank”), the largest commer­ concentration of their offices in a selected few cial bank in the State with deposits of $137 mil­ submarkets of those metropolitan areas. In the long lion, representing 10.2 per cent of the total depos­ run, I believe that this tendency, if permitted to its in commercial banks in New Hampshire.1 continue, would reduce the likelihood of increased Bank, with deposits of $61.5 million, representing competition occurring in those more attractive 4.6 per cent of total State commercial bank de­ submarkets and also decrease the likelihood of posits, is the fifth largest banking organization and vigorous competitive expansion of banking ser­ vices in the other submarkets in the areas. Unless otherwise indicated, all banking data are as of June Applicant is anchored in the Houston banking 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 511 the fourth largest commercial bank in the State. to have both the resources and expertise to enter While Applicant’s rank as the second largest the Nashua SMSA de novo, and in view of Appli­ banking organization in New Hampshire would cant’s proximity to the relevant market as well as remain unchanged as a result of the proposed the attractiveness of that market for de novo entry, acquisition, the acquisition of Bank would have Applicant may be regarded as a likely future an adverse effect on the level of concentration of entrant into the Nashua SMSA. Approval of the banking resources both in the State and in the instant proposal would preclude such an alternative respective markets2 in which Applicant and Bank and thereby foreclose the addition of an alternative operate. The Board views these results as adverse commercial banking competitor to the Nashua considerations lending weight toward denial of the market and also eliminate the possibility of de­ application. concentration5 in the market. In addition, it should Bank is the third largest of six commercial banks be noted that Manchester Bank could branch into in the Nashua banking market, which is approxi­ certain portions of the Nashua market which are mated by the Nashua SMSA,3 and controls 27 per now open to branching by Bank. This potential cent of total deposits in that market. The two larger competition would also be foreclosed by consum­ commercial banks in the market control respec­ mation of Applicant’s proposal. Thus, the Board tively, 31.5 and 29.8 per cent of total deposits concludes that consummation of the proposal therein. Manchester Bank is the largest of twelve would have significant adverse effects on potential commercial banks in the Manchester banking competition in the Nashua market. market, approximated by the Manchester SMSA,4 Similarly, Bank appears to have both the re­ holding almost 44 per cent of total deposits of sources and expertise to form a bank holding commercial banks in the market. In terms of total company and thereafter to enter the Manchester deposits, Manchester Bank is over three times as SMSA through acquisition of an existing bank large as its next largest commercial bank competi­ located therein or by establishing a new bank. tor. While the Manchester SMSA and the Nashua Bank, as the State’s largest independent bank, SMSA are separate but contiguous banking mar­ appears to be one of few remaining potential lead kets in southern New Hampshire, eighteen miles banks for a holding company in the State. The separate the closest banking offices of Manchester towns of Derry, Goffstown and Manchester have Bank and Bank. From the facts of record, it high population per commercial banking office appears that little existing competition would be ratios and would appear to be attractive areas for eliminated by the proposed acquisition in view of a de novo bank. Bank’s entry into the Manchester the fact that both Manchester Bank and Bank market would have a salutary effect on competition compete primarily in separate market areas. by introducing a viable competitor to the market The Board is concerned with the significant with the resources to compete effectively with adverse effects the proposed acquisition would Manchester Bank, by far the largest commercial have upon competition in the future in both the banking competitor in that market. Given these Manchester and Nashua banking markets. Be­ factors, the Board concludes that consummation tween 1960 and 1970, both market areas experi­ of the proposed acquisition would have significant enced rapid population growth; the Manchester adverse effects on potential competition in the SMSA increased 14.4 per cent while the Nashua Manchester market. SMSA (which abuts the northern border of Mas­ On the basis of the foregoing and the facts of sachusetts and is only 38 miles from Boston) record, the Board concludes the competitive con­ increased approximately 55 per cent. In fact, the siderations relating to this application are signifi­ Nashua SMSA is the fastest growing area in the cantly adverse. Consummation of the proposed State in terms of population. Applicant appears transaction would (1) increase the concentration of banking resources in the State and perpetuate the levels of banking concentration in both the 2The relevant banking markets include the only two SMSA’s Manchester and Nashua markets; (2) eliminate in New Hampshire; while only 16 of the 79 commercial banks some slight existing competition between Appli­ in the State operate in both banking markets, those 16 banks hold over 40 per cent of the State’s total commercial bank cant and Bank; (3) foreclose significant potential deposits. 3The Nashua SMSA includes Nashua and the towns of Hudson, Merrimack, Amherst, and Milford. 4The Manchester SMSA includes the towns of Manchester, Bedford, Goffstown, Hooksett, Pembroke, Allenstown, Lon­ 5The three largest commercial banks in the Nashua market donderry, and Derry. control 88.3 per cent of the total deposits therein. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL RESERVE BULLETIN □ JULY 1974 competition in both the Manchester and Nashua within the meaning of the Bank Holding Company banking markets; and (4) remove Bank as a po­ Act, has applied for the Board’s approval, under tential Statewide competitor as a lead bank in a section 4(c)(8) of the Act and § 225.4(b)(2) of newly formed holding company. Accordingly, the the Board’s Regulation Y, to acquire indirectly all Board views the competitive considerations as of the voting shares of Harold Loan and Finance requiring denial of the application unless these Corp., Braddock, Pennsylvania (“Company”), anticompetitive effects are outweighed by consid­ through its subsidiary, General Finance Service erations relating to benefits to the public in meeting Corporation, Huntingdon, Pennsylvania the convenience and needs of the communities to (“GFSC”). Company engages in the activities of be served. a consumer finance organization and acts as agent The financial condition of Applicant and Man­ in the sale of credit life and credit accident and chester Bank is satisfactory and the financial con­ health insurance directly related to extensions of dition of Bank is regarded as generally satis­ credit by its subsidiaries, and also multi-peril in­ factory. Managerial resources for Applicant, surance written to protect collateral on such loans Manchester Bank and Bank are satisfactory and during the period of credit extension. Such activi­ the future prospects for all are favorable. Applicant ties have been determined by the Board to be has indicated that it would assist Bank in expand­ closely related to banking or managing or control­ ing its mortgage lending and municipal financing ling banks (12 CFR 225.4(a)(1) and (9)). services and Bank has plans to assist Applicant Notice of the application, affording opportunity in providing trust and credit card services at Man­ for interested persons to submit comments and chester Bank. These services, however, are pres­ views on the public interest factors, has been duly ently available in the respective markets and there published (39 Federal Register 11223). The time is no evidence that the banking needs of the areas for filing comments and views has expired, and are not being met. Moreover, the Board does not none has been timely received. The Board has regard the addition of such services as outweighing considered the application in light of the public the significant adverse effects flowing from the interest factors set forth in § 4(c)(8) of the Act proposal, as required by the Act. (12 U.S.C. 1843(c)(8)). Accordingly, on the basis of the record, the Applicant, the fourth largest banking organi­ Board finds that the anticompetitive aspects of the zation in Virginia, controls 14 banks with aggre­ proposed acquisition are not outweighed by con­ gate deposits of $1.0 billion, representing about siderations relating to the convenience and needs 9.0 per cent of the total deposits in commercial of the communities to be served. It is the Board’s banks in the State.1 Applicant’s nonbanking sub­ judgment that consummation of the proposed sidiaries include a factoring company, a leasing transaction would not be in the public interest and corporation, a consumer finance corporation, a that the application should be, and is hereby, company engaged in the business of making loans denied. to individuals secured primarily by second mort­ By order of the Board of Governors, effective gages on real estate, and a mortgage banking June 21, 1974. company. Company, with total assets of about $760,000 Voting for this action: Chairman Burns and Governors and total loans outstanding of less than $1 million Brimmer, Sheehan, Bucher, Holland, and Wallich. Absent and not voting: Governor Mitchell. (as of October 31, 1973), was incorporated in 1955 (Signed) Chester B. Feldberg, for the purpose of conducting a small loan busi­ [seal] Secretary of the Board. ness. In 1963, Company organized a subsidiary, Harold Consumer Discount Company (“Harold Company”), to conduct a licensed consumer dis­ ORDERS UNDER SECTION 4 OF count lending business and, since June of 1973, BANK HOLDING COMPANY ACT it appears that Company has been primarily en­ BANK OF VIRGINIA COMPANY, gaged in consumer discount lending through RICHMOND, VIRGINIA Harold Company. Company also acts as agent in the sale of insurance directly related to its lending Order A pproving A cquisition of activities. Harold Loan and Finance Corp. Bank of Virginia Company, Richmond, Vir- 'Banking data are as of June 30, 1973, unless otherwise ginia (“Applicant”), a bank holding company noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 513 Company maintains its sole office in Braddock, is hereby approved. The determination is subject Pennsylvania, near the city of Pittsburgh. The to the conditions set forth in § 225.4(c) of Regu­ relevant market is the Pittsburgh SMSA which lation Y and to the Board’s authority to require includes parts of five counties. However, Com­ such modification or termination of the activities pany’s considerably smaller primary service area of a holding company or any of its subsidiaries encompasses an area within a ten-mile radius of as the Board finds necessary to assure compliance Braddock. with the provisions and purposes of the Act and the Board’s regulations and orders issued Applicant’s subsidiary, GFSC, operates con­ thereunder, or to prevent evasion thereof. sumer discount lending offices in five locations in The transaction shall be made not later than the central and western part of Pennsylvania but three months after the effective date of this Order, has no offices and does not compete in the Pitts­ unless such period is extended for good cause by burgh area. The closest office of GFSC to Com­ the Board, or by the Federal Reserve Bank of pany is located 70 miles from Braddock, and Richmond pursuant to delegated authority. Applicant’s other subsidiaries engaged in con­ By order of the Board of Governors, effective sumer finance activities operate outside the State June 5, 1974. of Pennsylvania. Consequently, there is no signif­ icant existing competition between the consumer Voting for this action: Governors Sheehan, Bucher, Holland, finance offices of Applicant and Company. The and Wallich. Voting against this action: Governor Brimmer. Absent and not voting: Chairman Burns and Governor record indicates that 22 companies engaged in Mitchell. consumer finance activities operate 61 offices lo­ (Signed) Chester B. Feldberg, cated within Company’s service area. Further, it [seal] Secretary of the Board. appears that Company controls less than 5 per cent of the consumer finance business in the relevant Dissenting Statement of market. Therefore, although Applicant could enter Governor Brimmer the area served by Company on a de novo basis, it appears that no significant adverse effect on I would deny the application by Bank of Vir­ future competition would result from the proposal ginia Company to acquire Harold Loan and Fi­ in view of the large number of competitors in the nance Corp. An employment agreement that is part market and the relatively small size of Company. of the proposal contains a restrictive covenant On this basis, the Board concludes that Applicant’s which would have an adverse effect on competition acquisition of Company would not have significant within the relevant area. The effect of this ar­ adverse effects on existing or future competition rangement is not outweighed by any facts in the nor raise barriers to entry by other organizations. record demonstrating that the public interest would In considering this application, the Board has be served. examined a covenant not to compete contained in The employment agreement precludes Mr. Soan employment contract executed between GFSC vich, General Manager of Company (during the and the general manager of Company. The Board time he is receiving payments from GFSC and for finds the provisions of this covenant are reasonable a period of one year thereafter) from becoming in duration, scope, and geographic area and are affiliated— within a radius of 15 miles of Com­ consistent with the public interest. pany’s office in Braddock, Pennsylvania— with It appears that consummation of this proposed any small loan, consumer finance, or consumer transaction would not result in any undue concen­ lending operations, other than those of GFSC. The tration of resources, conflicts of interests, unsound effect of such action would be to deny other banking practices, or any other adverse effects on consumer finance institutions within the designated the public interest. Applicant proposes to provide area the expertise that could be provided by Mr. Company increased access to capital, offer data Sovich’s services. I find all such restrictions on processing facilities to Company, and make avail­ employment to be an impediment to competition. able experienced personnel and assistance in the Reference is made to similar views expressed in areas of financial planning, sales, and marketing. my Dissenting Statements in the applications of Based upon the foregoing and other consid­ First Alabama Bancshares, Inc., to acquire Citi­ erations reflected in the record, the Board has zens Bank of Guntersville (59 Federal Reserve determined that the balance of the public interest B u lletin 757); Southern Bancorporation to ac­ factors the Board is required to consider under § quire Piedmont Premium Services (59 Federal 4(c)(8) is favorable. Accordingly, the application Reserve B u lletin 766); United First Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN □ JULY 1974 Banks, Inc., to acquire De Land State Bank, loans; financing consumer loans, motor vehicles approved by the Board on April 4, 1974; and and insurance premiums; and reinsuring credit life, United First Florida Banks, Inc., to acquire First credit accident and health insurance. National Bank of Merritt Island, approved by the Acceptance (total net receivables of approxi­ Board on May 20, 1974. mately $494,0002) operates one office in Atlanta, There is no documentation in this record sub­ Georgia and engages in business in Georgia, Ken­ stantiating the finding that public benefits emanat­ tucky and Tennessee. It appears that, in terms of ing from the employment contract would outweigh receivables, Acceptance is the 17th largest of 52 any adverse effects of the restrictive covenant on licensed insurance premium financing companies competition. Therefore, I would deny the applica­ in Georgia; the 33rd largest of 35 such companies tion. in Kentucky; and the fourth largest of 30 such companies doing business in Tennessee. Insurance SOUTH CAROLINA NATIONAL (total net receivables of approximately $332,000) CORPORATION, operates one office in Morgantown, North Carolina COLUMBIA, SOUTH CAROLINA and derives most of its business from North Caro­ Order A pproving A cquisition of A cceptance lina where it appears to be the sixth largest of 133 companies engaged in insurance premium Premium Company and Insurance Premium financing. In addition, Insurance derives a small Discount Company amount of its business from South Carolina where South Carolina National Corporation, Colum­ 53 such companies operate. bia, South Carolina, a bank holding company Because of State licensing requirements3 and the within the meaning of the Bank Holding Company nature of insurance premium financing, which in­ Act, has applied for the Board’s approval, under volves doing business with agents in many parts section 4(c)(8) of the Act and § 225.4(b)(2) of of a State, the relevant geographic markets for the Board’s Regulation Y, to acquire indirectly all analysis of the competitive effects of the proposed of the voting shares of Acceptance Premium acquisitions is approximated by each State in Company, Atlanta, Georgia (“Acceptance”), and which such a company is doing business. One of Insurance Premium Discount Company, Morgan­ Applicant’s subsidiaries, Premium Acceptance town, North Carolina (“Insurance”), companies Company, (“Premium”) engages in insurance that engage in the activity of making extensions premium financing in Virginia. However, neither of credit to individuals and corporations to finance Premium, Acceptance nor Insurance derive any the payment of casualty, liability and other insur­ significant business from the States in which any ance premiums. Such activity has been determined of the other companies operate. On this basis, and by the Board to be closely related to banking (12 other facts of record, the Board concludes that the CFR 225.4(a)(1)). proposed acquisitions would not have adverse ef­ Notice of the application, affording opportunity fects on existing competition. Furthermore, it does for interested persons to submit comments and not appear that Applicant’s acquisition of Accep­ views on the public interest factors, has been duly tance or Insurance would foreclose the develop­ published (39 Federal Register 12930 and 13603). ment of significant potential competition within the The time for filing comments and views has ex­ relevant markets in view of the size of the compa­ pired, and the Board has considered the application nies to be acquired, the numerous other potential and all comments received in the light of the public entrants, the relatively large number of competi­ interest factors set forth in section 4(c)(8) of the tors already operating in each market and the Act (12 U.S.C. 1843(c)). absence of concentration of the insurance premium Applicant, the largest banking organization in financing business in each market. Nor is there South Carolina, controls one bank with total de­ any evidence to indicate that the acquisition of posits of $703 million, representing approximately Acceptance and Insurance by Applicant would 21 per cent of the total deposits in commercial result in any undue concentration of resources, banks in the State.1 Applicant also controls a number of nonbanking subsidiaries engaged in making mortgage and second mortgage real estate 2 Data for receivables for Acceptance and Insurance are as of December 31, 1973. 1 All banking data are as of June 30, 1973, and reflect holding 3Georgia, Kentucky, North Carolina, South Carolina and company acquisitions and formations approved through May Virginia require that an insurance premium financing company 31, 1974. obtain a license before transacting business in such States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 515 unfair competition, conflicts of interests or un­ ternative source of insurance premium financing sound banking practices. It is expected that con­ in any geographic area in which Acceptance and summation of the proposal will increase the finan­ Insurance are presently doing business for a period cial resources available to Acceptance and Insur­ of three years from the date of consummation of ance, and lower their costs of funds, thereby the acquisition. The majority has presented no enabling them to expand their loan portfolios evidence to show that such covenants are in the which should increase their competitive effec­ public interest. tiveness. For reasons stated more fully in my dissents to In consideration of this application, the Board the application of Orbanco, Inc., to acquire Far has examined the covenants not to compete which West Security Company (59 Federal Reserve were executed in connection with each of the B u lletin 368-369 (1973)), and the application proposed acquisitions. The Board finds that the of CBT Corporation to acquire General Discount provisions of these covenants are reasonable in Corporation (59 Federal Reserve B u lletin 471 duration, scope and geographic area and are con­ (1973)), I am convinced that such covenants are sistent with the public interest. inherently anticompetitive and should not receive Based on the foregoing and other considerations the sanction of the Board. For these reasons, I reflected in the record, the Board has determined would deny these applications. that the balance of the public interest factors the Board is required to consider under section 4(c)(8) STATE STREET BOSTON is favorable. Accordingly, the applications are FINANCIAL CORPORATION, hereby approved. This determination is subject to BOSTON, MASSACHUSETTS the conditions set forth in section 225.4(c) of O rder Approving D e N ovo Joint V enture, Regulation Y and to the Board’s authority to Boston Financial D ata Services, Inc. require such modification or termination of the activities of a holding company or any of its State Street Boston Financial Corporation, Bos­ subsidiaries as the Board finds necessary to assure ton, Massachusetts (“State Street”), a bank hold­ compliance with the provisions and purposes of ing company within the meaning of the Bank the Act and the Board’s regulations and orders Holding Company Act, has applied for the Board’s issued thereunder, or to prevent evasion thereof. approval, under section 4(c)(8) of the Act and § The transaction shall be made not later than 225.4(b)(1) of the Board’s Regulation Y, to en­ three months after the effective date of this Order, gage in a joint venture with Data-Sys-Tance, Inc., unless such period is extended for good cause by Kansas City, Missouri (“DST”). The joint ven­ the Board or by the Federal Reserve Bank of ture would be carried out through Boston Financial Richmond. Data Services, Inc., Boston, Massachusetts By order of the Board of Governors, effective (“Company”),1 which would engage de novo in June 24, 1974. data processing and recordkeeping services asso­ ciated with shareholder accounting for investment Voting for this action: Governors Sheehan, Bucher, Holland, and Wallich. Voting against this action: Governor Brimmer. companies. The activity in which Company will Absent and not voting: Chaiiman Burns and Governor engage has been determined by the Board to be Mitchell. closely related to banking (12 CFR 225.4(a)(8)(i)). (Signed) Chester B. Feldberg, Notice of the application, affording opportunity [seal] Secretary of the Board. for interested persons to submit comments and views on the public interest factors, has been duly Dissenting Statement of published (39 Federal Register 5533). The time Governor Brimmer for filing comments and views has expired, and none has been timely received. I would deny the applications by South Carolina State Street controls three banks with aggregate National Corporation to acquire Acceptance Pre­ deposits of about $1.2 billion, representing 9.2 per mium Company and Insurance Premium Discount cent of the total deposits in commercial banks in Company. My decision is based upon the existence Massachusetts, and is the fourth largest commerof covenants not to compete which were executed between Applicant and the principal shareholders of Acceptance and Insurance. The effect of these 1 Applicant received permission from the Reserve Bank of Boston to establish de novo Boston Financial Data Services, covenants is to preclude the possibility of the Inc., pursuant to section 4(c)(8) of the Act and § 225.4(b)(1) selling corporation undertaking to provide an al­ of Regulation Y as of October 1, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN □ JULY 1974 cial banking organization in the State.2 State while DST does slightly over 1 per cent. Further­ Street’s lead bank, State Street Bank and Trust more, Bank’s shareholder accounting business has Company, Boston, Massachusetts (“Bank”), is declined sharply in the last several years, and State the third largest commercial bank in Massachu­ Street states that it would cease its operations in setts. In connection with its responsibilities as this line of activity unless the proposed joint ven­ transfer agent, plan agent, plan custodian and ture is approved. On this basis, it appears that trustee for mutual funds, Bank presently performs Bank is not presently, and is not likely, absent shareholder accounting functions for 19 manage­ the proposed joint venture, to become an effective ment companies representing 34 mutual funds with competitor for mutual fund shareholder accounting 311.000 shareholder accounts. services. The Board concludes that consummation DST, an 80 per cent-owned subsidiary of of the proposed transaction would not eliminate Kansas City Southern Industries, Inc., Kansas significant existing competition between the co­ City, Missouri, has been providing shareholder venturers, nor would it have an adverse effect on accounting services since 1969 and, in addition, competition between them in the future. presently acts as transfer agent, plan agent, trustee The Board finds that the proposed joint venture and/or servicing agent for three large mutual fund would result in public benefits. The formation of complexes with a total of 779,000 shareholder the joint venture will enable Bank to continue to accounts. DST also competes for shareholder ac­ provide shareholder accounting services to its cus­ counting business through the sale and licensing tomers because it will reduce the cost of these of its data processing system; 41 mutual funds with operations. In addition, the joint venture will in­ 1.177.000 shareholder accounts are processed on crease the efficiency of the services which are now the DST system by owners or licensees of the offered by Bank. system other than DST. There is no evidence in the record in this case Company will perform clerical, computer pro­ indicating that consummation of the present pro­ cessing and recordkeeping services associated with posal to engage in a joint venture would result shareholder accounting for mutual funds. These in undue concentration of resources, unfair com­ services will be performed initially for only one petition, conflicts of interests, unsound banking customer, Bank, on a contract basis. Company’s practices, or other adverse effects. activities will include establishing shareholder ac­ Based upon the foregoing and other consid­ counts, processing and recording share transfers, erations reflected in the record, the Board has recording shares purchased by direct payment or determined that the balance of the public interest by investment, calculating and determining pay­ factors the Board is required to consider under ment of distributions on shareholdings and other section 4(c)(8) is favorable. Accordingly, the ap­ recordings of various transactions in shareholders’ plication is hereby approved. This determination accounts. Bank’s operations facility, State Street is subject to the conditions set forth in § 225.4(c) South Corporation, will house the clerical and of Regulation Y and to the Board’s authority to administrative operations and correspondence require such modification or termination of the clearing. All recordkeeping information will be activities of a holding company or any of its transmitted to computer facilities provided by DST subsidiaries as the Board finds necessary to assure in Kansas City, Missouri. In essence, by forming compliance with the provisions and purposes of this joint venture, State Street will transfer its the Act and the Board’s regulations and orders mutual fund shareholders’ recordkeeping opera­ issued thereunder, or to prevent evasion thereof. tions from Bank’s computers in Boston to DST’s The transaction shall be made not later than computers in Kansas City. three months after the effective date of this Order, While both Bank and DST offer mutual fund unless such period is extended for good cause by shareholder accounting services, consummation of the Board or by the Federal Reserve Bank of the proposed joint venture would not eliminate any Boston. significant existing competition. At present, Bank By order of the Board of Governors, effective appears to do less than 1 per cent of the mutual June 20, 1974. fund shareholder accounting business nationwide, Voting for this action: Chairman Burns and Governors Sheehan, Bucher, Holland, and Wallich. Voting against this action: Governor Brimmer. Absent and not voting: Governor Mitchell. 2 Banking data are as of June 30, 1973, adjusted to reflect bank holding company formations and acquisitions through (Signed) Chester B. Feldberg, February 28, 1974. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 517 Dissenting Statement of the holding company’s lending subsidiaries might Governor Brimmer favor its co-venturer and discriminate against the co-venturer’s rivals and other applicants for credit. I would deny the application by State Street This potential for abuse is always present and is Boston Financial Corporation to engage in the more acute in a period of monetary restraint when proposed activity through a de novo joint venture the holding company finds it necessary to ration with Data-Sys-Tance, Inc. Unlike the majority, I credit. believe that consummation of the proposed trans­ Finally, I am greatly disturbed by the mingling action would have adverse effects on competition of banking and commerce which will result from which are not outweighed by benefits to the public. a bank holding company and a company engaged In addition, I do not believe the Board has given in both commerce and industry forming a joint due weight to possible abuses which may arise venture. The legislative history surrounding the from the legal structure which will formally tie enactment of the Bank Holding Company Act together a bank holding company and a nonbank­ makes clear that the basic thrust of the Act was ing concern. to prevent the mingling of banking and commerce. The majority concludes that the proposed joint In my opinion, joint ventures such as the one venture would not have a significant adverse effect proposed in the present application are in direct on existing or future competition between State contravention of the spirit of the Act and, there­ Street and Data-Sys-Tance. However, an arrange­ fore, should not be sanctioned by the Board. ment whereby Applicant will provide shareholder For these reasons, I dissent from the majority’s accounting services to customers of its subsidiary approval of the application. bank through the computer facilities of an existing competitor, in my opinion, will have an adverse effect upon both present and future competition BANKAMERICA CORPORATION, for shareholder accounting services between such SAN FRANCISCO, CALIFORNIA subsidiary bank and Data-Sys-Tance. The majority Order Denying Investment in A llstate concludes that— since the shareholder accounting International S.A., Zurich, Sw itzerland business of Applicant’s subsidiary has recently declined— the subsidiary bank is not likely to BankAmerica Corporation, San Francisco, Cal­ become an effective competitor for these services ifornia (“Applicant”), has applied for the Board’s in the future and, therefore, any resulting elimina­ consent under § 4(c)(13) of the Bank Holding tion of competition would not be significant. I Company Act (12 U.S.C. 1843(c)(13) ) to acquire, disagree. That the subsidiary would abandon its directly or indirectly through a de novo company present customers by ceasing its shareholder ac­ to be formed under the laws of Great Britain, The counting services is purely conjectural. Applicant Netherlands, or Luxembourg, 50 per cent of the could continue to offer shareholder accounting voting shares of Allstate International S.A., services by contract with either Data-Sys-Tance Zurich, Switzerland (“AISA”). or some other computer firm. Such an arrangement Applicant, with total consolidated assets of ap­ would not have the adverse effects of the proposed proximately $49.4 billion,1 is a bank holding joint venture since a competitive alternative would company controlling the largest commercial bank not be eliminated. Accordingly, I do not believe in the world, Bank of America NT&SA, San the proposed joint venture structure would result Francisco, California, which has worldwide bank­ in benefits to the public which could not otherwise ing operations with branches and banking and be derived through some other arrangement. In the financial subsidiaries located in countries through­ absence of such benefits outweighing the adverse out the world. Applicant, through its direct or effects on existing and future competition between indirect investment in AISA, proposes to engage the co-venturers, I believe the statute requires in the activities of underwriting, reinsuring, bro­ denial of the proposal. kerage, selling and servicing personal and com­ In addition, I am concerned that the Board has mercial lines of individual and group life, health, not given due weight to potential problems which property and casualty insurance in European and are likely to occur as a result of the formal legal other foreign countries. It is proposed that AISA structure which will tie together a bank holding will be jointly-owned by Applicant and Allstate company and nonbanking firm. For example, in order to promote harmony between the holding 1A11 financial data for Applicant are as of December 31, company and its co-venturer in the joint venture, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN □ JULY 1974 Insurance Company, Northbrook. Illinois (“All­ by AISA will be integrated with Applicant's inter­ state”), a wholly-owned subsidiary of Sears, national or foreign banking activities, making it Roebuck & Company, Chicago, Illinois, the larg­ a stronger competitor abroad and hence directly est retailer of general merchandise in the United benefiting the U.S. public. States. Allstate is one of the largest U.S. insurance In general, the Board believes that in conformity companies with insurance premiums of approxi­ with the purposes of § 4(c)(13) of the Bank Hold­ mately $2.3 billion in 1973, and with total con­ ing Company Act and the Edge Act, U.S. banking solidated assets of approximately $4 billion as of organizations should have greater freedom in their December 31, 1973. AISA is at present a wholly nonbanking activities abroad than is allowed do­ owned subsidiary of Allstate with investments in mestically, especially in cases where such activi foreign insurance subsidiaries located in Switzer­ ties are necesary in order to remain competitive land, Germany, and Mexico. in international or foreign banking. However, the Section 4 (c)( 13) of the Act provides that the Board also must consider the impact which such prohibitions of § 4 of the Act shall not apply to nonbanking activities may have on the financial the shares of, or activities conducted by, any strength and managerial resources of the parent company which does no business in the United U.S, banking organization and any possible spill­ States except as an incident to its international or over effects such foreign activities may have on foreign business, if the Board by regulation or the separation of banking and commerce in the order determines that, under the circumstances and United States. subject to the conditions set forth in the regulation General insurance underwriting involves the or order, the exemption would not be substantially management of risks qualitatively different from at variance with the purposes of the Act and would those encountered in ordinary banking and familiar be in the public interest. to bank management. It is an activity which re­ In § 225.4(f)(1) of Regulation Y, the Board has quires a large amount of capital and specialized determined that a bank holding company may. managerial resources. As such, permitting U.S. with the Board’s consent, own or control voting banking organizations to enter such a major non­ shares of any company in which a company or­ banking activity abroad could divert their capital ganized under § 25(a) of the Federal Reserve Act and managerial resources away from their domes­ (an Edge corporation) may invest. Edge corpora­ tic banking affiliates. Such a potentially adverse tions are organized for the purpose of engaging consequence would clearly not be consistent with in international or foreign banking or other inter­ the purposes of the Bank Holding Company Act. national or foreign financial operations. In keeping In deciding this application, the Board also with this statutory purpose, it has been Board carefully considered the impact of U.S. banking policy that it is inappropriate for an Edge corpora­ organizations engaging in insurance underwriting tion to acquire a significant ownership interest in abroad on the purpose of the Bank Holding Com­ a foreign company that is not engaged in interna­ pany Act of maintaining the separation of banking tional or foreign banking or other international or from commerce within the United States. The foreign financial operations.2 General insurance growth of international trade is bringing foreign underwriting has not been authorized by the Board and domestic markets for goods and financial as within the scope of financial operations to be services closer together. As this trend continues, conducted by foreign companies in which an Edge the Jine between banking and commerce in the corporation proposes to acquire a significant own­ U.S. could be blurred as foreign nonbanking ac­ ership interest. tivities are progressively intertwined with domestic Among Applicant’s arguments for approval are operations. In the case of casualty insurance, in that general insurance underwriting is usual in particular, exposure to overlap appears especially connection with the business of banking in Europe great because of the transnational nature of that and that the insurance activities to be conducted business. Thus, the Board concluded that permit­ ting U.S. banking organizations to enter the gen­ 2In general, the Board considers a significant ownership eral insurance underwriting business abroad could interest to be any investment representing more than 25 per have potentially adverse effects on the long-stand­ cent of the foreign company’s outstanding voting shares. In the Board’s judgment, once the 25 per cent line is passed, ing Congressional policy in the Bank Holding the Edge corporation usually ceases to be a mere passive Company Act of keeping these activities separated investor and takes an active operating interest in the company. domestically. The Board, however, makes this particular judgment on the facts of each case. In considering the above potentially adverse Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 519 effects against the alleged public benefits of ap­ erations reflected in the record, the Board con­ proving the activity, the Board noted that some cludes that the proposed investment in AISA foreign banks in Europe do engage in insurance would not be consistent with the purposes of the underwriting. However, the record shows that Bank Holding Company Act or in the public most foreign bank insurance relationships are with interest within the meaning of § 4(c)(13) of the brokerage rather than underwriting companies, and Act, and hence the application is denied. many of the affiliations with underwriters involve By order of the Board of Governors, effective a minority or even nominal stock interest. Thus, June 19, 1974. on the basis of the record of this application, the Voting for this action: Chairman Burns and Governors Board concluded that Applicant has failed to prove Mitchell, Brimmer, Sheehan, Bucher, Holland, and Wallich. its assertion that its banking business would be (Signed) Chester B. Feldberg, competitively injured by its inability to engage in [seal] Secretary of the Board. the general insurance underwriting business in Europe. In the Board’s judgment, U.S. banking Concurring Statem ent of organizations through insurance brokerage activi­ G overnors Sheehan and W allich ties already permitted them in European and other We have joined our colleagues in voting to deny foreign countries are able to serve adequately and the application of BankAmerica Corporation to competitively their needs and those of their foreign acquire Allstate International S.A. because we banking customers. agree that Applicant’s capital position is somewhat The Board was equally concerned with the fact lower than what the Board would consider as that this application proposes a joint venture be­ appropriate. We also agree with our colleagues’ tween the largest U.S. banking organization and concern over the tendency of many U.S. banking one of the nation’s largest insurance companies, organizations to pursue a policy of rapid expansion which, as noted above, is wholly-owned by the and agree that funds earmarked for expansion by largest retailer of general merchandise in the U.S. U.S. banking organizations with capital positions Close working relationships abroad between large not considered to be appropriate should be used U.S. banking organizations and large U.S. insur­ instead to strengthen the capital position of such ance companies could in time weave a matrix of organizations. However, we wish to note that our relationships between the joint venturers in the decision is based solely on the above factors. U.S. and abroad that could lead to an undue In our view, Applicant has demonstrated in the concentration of economic resources in the do­ record that there is a broad array of very close mestic and foreign commerce of the United States. links between banking organizations and all types The Board concluded that such potentially adverse of insurance activities in most European countries. effects could result from the proposed application Accordingly, for reasons stated more fully in our and that such potential effects would clearly not dissent to the application of First National City be consistent with the purposes of the Bank Hold­ Overseas Investment Corporation to acquire voting ing Company Act, nor in the public interest. shares of Companhia de Seguros Argos Flumin- The Board also noted its general concern with ense, S.A., Rio de Janeiro, Brazil, which has also the tendency of many U.S. banking organizations this day been denied by the Board, we would be to pursue a policy of rapid expansion in domestic willing to approve an application by a bank hold­ and foreign markets. Such expansion can expose ing company to engage in insurance underwriting the organizations to potential liabilities and risks activities in Europe if the size of the proposed disproportionate to the stated size of their invest­ investment and capital position of the holding ment in any particular venture. Such expansion company were, under the circumstances, deemed should therefore be premised on a strong capital to be appropriate. base. While the Board recognizes the quality and experience of the Applicant’s management, the ORDERS UNDER SECTION 25 (a) OF present capital position of the Applicant is some­ FEDERAL RESERVE ACT what lower than what the Board would consider FIRST CHICAGO INTERNATIONAL FINANCE appropriate in light of its recent asset growth. In CORPORATION, CHICAGO, ILLINOIS such circumstances, the Board would prefer to see funds first used to enlarge the capital position of Order A pproving Investment in Serfinco and such organization. Denying Investments in Banco Popular Based upon the foregoing and other consid­ Espanol U.K. and U nited Chinese Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN □ JULY 1974 First Chicago International Finance Corpora­ organizations to substantial risks and therefore tion, Chicago, Illinois, has applied for the Board’s such expansion should be supported by a strong consent under § 25(a) of the Federal Reserve Act capital base. Where the asset growth of a banking to acquire, directly or indirectly, 50 per cent of organization has been rapid, the Board will give the shares of Serfinco, Madrid, Spain; 50 per cent careful consideration to proposals that would apply of the shares of Banco Popular Espanol U.K. funds toward further expansion, rather than toward (“Banco”), London, England; and 25.1 per cent augmenting the capital and liquidity positions of or more of the shares of United Chinese Bank the organization. In such* circumstances employ­ (“UCB”), Hong Kong. ment of funds to enlarge the organization’s capital Applicant is a corporation organized under § and liquidity positions will be the preferred course 25(a) of the Federal Reserve Act (an “Edge cor­ of action and the alternative utilization of funds poration”) and is a wholly-owned subsidiary of for further expansion will not ordinarily be fa­ First National Bank of Chicago, Chicago, Illinois vored. (“FNBC”), which has banking and financial First Chicago Corporation, through direct and operations in several foreign countries. FNBC has indirect subsidiaries, has a substantial involvement consolidated assets of approximately $15 billion1 in foreign banks and financial institutions. Appli­ and is a wholly-owned subsidiary of First Chicago cant already has a wholly-owned merchant bank Corporation, Chicago, Illinois, the second largest in London, First Chicago Limited, and a finance banking organization in Illinois and the ninth larg­ company in Hong Kong, First Chicago Hong Kong est in the nation. Limited. However, in Spain, First Chicago has Edge corporations are organized for the purpose only a representative office. Applicant’s acquisi­ of engaging in international or foreign banking or tion of Banco would not represent a significant other international or foreign financial operations. additional initial investment. However, Banco Serfinco, which is presently owned primarily by represents the first venture of a Spanish bank into Banco Popular Espanol (“BPE”), Madrid, Spain, the London market and it can be expected to play is a finance company that is engaged in granting a major role in the syndication of Spanish Euro­ consumer credit, discounting bills of exchange, dollar issues. Applicant is already heavily engaged making mortgage loans and financing capital goods in the Eurodollar syndication business through and equipment. Banco, a proposed joint venture First Chicago Limited and it does not appear of BPE and Applicant would be located in London, appropriate for Applicant to increase its activity would conduct the activities of a merchant bank, in such business at this time. Applicant’s initial including syndicating Eurocurrency loans, arrang­ investment in UCB would be substantial and ing private placements of corporate securities and would likely involve commitments of significant underwriting or managing Eurocurrency bond or additional funds in the near future. note issues. UCB is a full service foreign com­ Neither Applicant nor its parent corporations mercial bank with one office and eight branches presently have a company in Spain and entry into in Hong Kong. The activities of Serfinco, Banco Spain through Serfinco represents an excellent and UCB are of banking or financial nature and opportunity for a United States financial institu­ none of these companies conduct any business in tion. Further, Serfinco would confine its activities the United States, other than normal correspondent to local market operations and would not engage banking transactions. The activities of these three in Euro-financing transactions. On this basis and companies are permissible for subsidiaries of Edge in view of the limited investment involved, the corporations. Board concludes that Applicant’s acquisition of Applicant’s parent corporation, FNBC, has ex­ shares of Serfinco should be approved. perienced rapid growth of its assets during the Based upon the foregoing and other consid­ period of 1968 to 1973, and somewhat slower erations reflected in the record, the Board con­ expansion of its capital and liquidity base during cludes that: the acquisition of shares of Banco and the same period. The Board has recently expressed UCB would not be in the interests of the United its general concern with the tendency of many States or in the public interests and those applica­ U.S. banking organizations to pursue a policy of tions are hereby denied; and the acquisition of rapid expansion in domestic and foreign markets. shares of Serfinco is in the interest of the United It was noted that such expansion can expose the States and in the public interest and that applica­ tion is hereby approved subject to the provisions of § 25(a) of the Federal Reserve Act and the 'All financial data are as of December 31, 1973. provisions of the Board’s Regulation K. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 521 By order of the Board of Governors, effective It is proposed that Argos will engage in the activi­ June 27, 1974. ties of underwriting all insurance related to exten­ sions of credit by FNCB’s Brazilian branches and Voting for this action: Chairman Burns and Governors affiliates including: life, accident and health, fire Brimmer, Bucher, and Holland. Present and abstaining: Gov­ ernor Sheehan. Absent and not voting: Governors Mitchell and and theft, automobile collision, risk-floater poli­ Wallich. cies on leased equipment, and burglary. Argos also (Signed) Chester B. Feldberg, intends to underwrite non-credit related insurance [seal] Secretary of the Board. including: group life, accident and health insur­ ance plans, import and export marine policies, FIRST NATIONAL CITY OVERSEAS individual life, accident and health, fire and theft, INVESTMENT CORPORATION, and automobile collision insurance. NEW YORK, NEW YORK If the proposed acquisition were approved, the majority of Argos’ shares would be owned by Order Denying Investment in Companhia de Applicant and Chubb & Son, Inc., New York, Seguros A rgos Fluminense, S.A., New York (“Chubb”), which would own 41.5 Rio de Janeiro, Brazil per cent of Argos’ shares. Chubb is a subsidiary First National City Overseas Investment Cor­ of Chubb Corp., New York, New York, a U.S. poration, New York, New York (“Applicant”), insurance holding company with total assets of has applied for the Board’s consent under § 25(a) approximately $1.5 billion as of December 31, of the Federal Reserve Act to continue to hold 1973. the shares of FNC Commercio e Participacoes Edge corporations are organized for the purpose S.A., Rio de Janeiro, Brazil, after the latter ac­ of engaging in international or foreign banking or quires 39.5 per cent of the voting shares of Com­ other international or foreign financial operations. panhia de Seguros Argos Fluminense, S.A., Rio In keeping with this statutory purpose, it has been de Janeiro, Brazil (“Argos”). Board policy that it is inappropriate for an Edge Applicant is a corporation organized under § corporation to acquire a significant ownership in­ 25(a) of the Federal Reserve Act (an “Edge cor­ terest3 in a foreign company that is not engaged poration”) and is a wholly-owned subsidiary of in international or foreign banking or other inter­ First National City Bank, New York, New York national or foreign financial operations. General (“FNCB”), which has a worldwide banking busi­ insurance underwriting has not been authorized by ness with branches and subsidiaries located in the Board as within the scope of financial opera­ countries throughout the world. FNCB, with con­ tions to be conducted by foreign companies in solidated assets of approximately $42.6 billion,1 which an Edge corporation proposes to acquire a is a wholly-owned subsidiary of First National City significant ownership interest. Corporation, New York, New York, the largest Among Applicant’s arguments for approval are banking organization in New York State and the that general insurance underwriting is usual in second largest nationally. connection with the business of banking in Brazil Applicant, which at present indirectly owns 20 and that Applicant’s performance of these activi­ per cent of the voting shares of Argos under the ties will enable it to compete more effectively with general consent procedures of Regulation K,2 the major local banks in Brazil, which have much proposes to acquire indirectly an additional 19.5 wider branching systems and larger local currency per cent of the voting shares of Argos under resources. In Applicant’s opinion, the proposed Regulation K, thereby bringing its total investment acquisition will enable FNCB to increase its par­ in Argos to a 39.5 per cent share interest. Argos, ticipation in profitable financially related activities the oldest insurance underwriting company in in Brazil and to serve its own insurance and credit Latin America, engages in the underwriting of protection needs. insurance and is authorized to operate in all lines of insurance, including individual and group life. 3In general, the Board considers a significant ownership interest to be any investment representing more than 25 per *A11 financial data for FNCB are as of December 31, 1973. cent of the foreign company’s outstanding voting shares. In 2 Under § 211.8(a) of Regulation K, an Edge corporation the Board’s judgment, once the 25 per cent line is passed, may acquire voting shares of a foreign company without the Edge corporation usually ceases to be a mere passive specific prior Board consent so long as its investment does investor and takes an active operating interest in the company. not exceed $500,000 or 25 per cent of the voting shares of The Board, however, makes this particular judgment on the the foreign company involved. facts of each case. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN □ JULY 1974 In general, the Board believes that Edge cor­ and other Edge corporations, through insurance porations, in conformity with the purposes of the brokerage activities already permitted them in Edge Act, should have greater freedom in their Brazil and other countries, are competitive with nonbanking activities abroad than is allowed their Brazilian and other foreign banking counter­ banking organizations domestically, especially in parts and are able to serve adequately and com­ cases where such activities are necessary in order petitively their own needs and those of their inter­ to remain competitive in international or foreign national banking customers. banking. However, the Board also must consider The Board was equally concerned with the fact the impact which such nonbanking activities may that this application proposes a joint venture be­ have on the financial strength and managerial re­ tween a subsidiary of one of the largest banks in sources of the parent U.S. banking organization the U.S. and a subsidiary of a large domestic and any possible spill-over effects such foreign financial and insurance group. Close working re­ activities may have on the separation of banking lationships abroad between large U.S. banking and commerce in the United States. organizations and large U.S. insurance companies General insurance underwriting involves the could in time weave a matrix of relationships management of risks qualitatively different from between the joint venturers in the U.S. and abroad those encountered in ordinary banking and familiar that could lead to an undue concentration of eco­ to bank management. It is an activity which re­ nomic resources in the domestic and foreign com­ quires a large amount of capital and specialized merce of the United States. The Board concluded managerial resources. As such, permitting U.S. that such potential adverse effects could result banking organizations to enter this activity abroad from the proposed application and that such effects through their Edge corporations could divert their would clearly not be consistent with the purposes capital and managerial resources away from do­ of the Edge Act. mestic banking affiliates. Such a potentially ad­ Based upon the foregoing and other consid­ verse consequence would not be consistent with erations reflected in the record, the Board denies the purposes of the Edge Act. Applicant’s proposed additional indirect invest­ In deciding this application, the Board also ment in Argos. carefully considered the impact of Edge corpora­ By order of the Board of Governors, effective tions engaging in insurance underwriting abroad June 19, 1974. in light of the prohibitions in the Edge Act de­ Voting for this action: Chairman Burns and Governors signed to maintain the separation of banking from Mitchell, Brimmer, Bucher, and Holland. Voting against this commerce within the United States. The growth action: Governors Sheehan and Wallich. of international trade is bringing foreign and do­ mestic markets for goods and financial services (Signed) C hester B. Feldberg, closer together. As this trend continues, the line [seal] Secretary of the Board. between banking and commerce in the U.S. could Dissenting Statement of be blurred as foreign nonbanking activities are Governors Sheehan and W allich progressively intertwined with domestic opera­ tions. In the case of casualty insurance, in partic­ We dissent from the Board’s denial of the sub­ ular, including import and export marine policies ject application. The U.S. public has already ben­ as proposed in this application, exposure to over­ efited by the ability of Edge corporations to expand lap appears especially great because of the trans­ and diversify their operations in foreign econo­ national nature of that business. The Board con­ mies. This effect would be enhanced by Appli­ cluded that permitting Edge corporations to ac­ cant’s engaging in the insurance activities applied quire a significant ownership interest in a foreign for herein. To restrict Edge corporations abroad company engaged in the general insurance un­ in their ability to compete effectively in these derwriting business could have potentially adverse foreign markets, and thus preserve and maintain effects on the long-standing Congressional policy their already established position, would be a in the Edge Act of keeping banking and commerce detriment to the basic interests of the U.S. public separated domestically. and economy. These interests require that Ameri­ While Applicant does demonstrate in its appli­ can financial institutions be competitive in foreign cation that many Brazilian banks do have insur­ markets. Profits from the proposed joint venture ance affiliates engaged in general insurance un­ would inure not only to the benefit of U.S. share­ derwriting, in the Board’s judgment, Applicant holders of the companies involved but also to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 523 benefit of the U.S. economy through the strength­ real and strong possibility in this application that ening of our balance of payments. if Applicant fails to establish a meaningful capa­ In our judgment, Applicant has conclusively bility to underwrite insurance in Brazil it will be demonstrated in the record that the major Brazilian at a severe competitive disadvantage vis-a-vis its banks have insurance underwriting affiliates and counterpart Brazilian banking operations. that this activity is usual in connection with the For the foregoing reasons, we conclude that the business of banking in Brazil. There seems a very subject application should be approved. ORDERS NOT PRINTED IN THIS ISSUE During June 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 Federal Effective Register Applicant Bank date citation American Bancorp, Inc., American Bank and Trust Co. of Pa., 6/17/74 39 F.R. 22468 Reading, Pennsylvania Reading, Pennsylvania 6/24/74 First Algonquin Company, Algonquin State Bank, 6/19/74 39 F.R. 24061 LaGrange, Illinois Algonquin, Illinois 6/28/74 First Kentucky National First National Bank of Louisville, 6/28/74 39 F.R. 25364 Corporation, Louisville, Louisville, Kentucky 7/2/74 Kentucky F.S.B., Inc., Farmers State Bank of Superior, 6/24/74 39 F.R. 24435 Superior, Nebraska Superior, Nebraska 7/2/74 Intermountain Bancorp, Inc., First National Bank, 6/7/74 39 F.R. 21087 Westminster, Colorado Westminster, Colorado 6/15/74 Rush County Insurance Agency, The Home State Bank, 6/3/74 39 F.R. 20649 Inc., La Crosse, Kansas La Crosse, Kansas 6/12/74 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank(s) date citation Bancshares of New Jersey, Prospect Park National Bank, 6/10/74 39 F.R. 21192 Moorestown, New Jersey Wayne, New Jersey 6/13/74 Ellis Banking Corporation, Ellis National Bank of West Hills- 6/6/74 39 F.R. 20728 Bradenton, Florida borough, and Ellis National Bank 6/13/74 of Davis Islands, both proposed new banks to be located in Tampa, Florida First Alabama Bancshares, Inc. First City National Bank of Gadsden, 6/4/74 39 F.R. 20649 Birmingham, Alabama Gadsden, Alabama 6/12/74 First Banc Group of Ohio, Inc. The Athens National Bank, 6/5/74 39 F.R. 20729 Columbus, Ohio Athens, Ohio 6/13/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN □ JULY 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank(s) date citation First City Bancorporation of Almeda-Genoa Bank, 6/26/74 39 F.R. 25361 Texas, Inc., Houston, Texas Houston, Texas 7/10/74 First City Bancorporation of Central National Bank, 6/28/74 39 F.R. 25361 Texas, Inc., Houston, Texas Arlington, Texas 7/10/74 First International Bancshares, Main Bank and Trust, 6/7/74 39 F.R. 21010 Inc., Dallas, Texas San Antonio, Texas 6/17/74 First Midwest Bancorp, Inc., The Home Bank, 6/28/74 39 F.R. 25364 St. Joseph, Missouri Savannah, Missouri 7/10/74 Greater Jersey Bancorp., Plaza National Bank, 6/14/74 39 F.R. 22470 Clifton, New Jersey Secaucus, New Jersey 6/24/74 Ohnward Corporation, First Central State Bank, 6/26/74 39 F.R. 25367 Maquoketa, Iowa DeWitt, Iowa 7/2/74 ORDER UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY ACT— APPLICATION TO MERGE BANK HOLDING COMPANIES Federal Effective Register Applicant Bank Holding Company date citation Boatmen’s Bancshares, Inc., U.N. Bancshares, Inc., 6/25/74 39 F.R. 24435 St. Louis, Missouri Springfield, Missouri 7/2/74 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Federal Nonbanking Company Effective Register Applicant (or activity) date citation Bankers Trust New York California Bankers Trust Company, 6/17/74 39 F.R. 22468 Corporation, New York City, Los Angles, California 6/24/74 New York Boatmen’s Bancshares, Inc., U.N. Bancshares, Inc., 6/25/74 39 F.R. 24435 St. Louis, Missouri Springfield, Missouri 7/2/74 First Plaza Company, Intermountain Mortgage Co. and 6/7/74 39 F.R. 21087 Lincoln, Nebraska and Intermountain Insurance, Inc., 6/15/74 Intermountain Bancorp, both of Westminster, Colorado Inc., Westminster, Colorado Namyaw Corporation, Inc., Namyaw Insurance Agency, 6/24/74 39 F.R. 24275 Emporia, Kansas Emporia, Kansas 7/1/74 National Central Financial Hartzler Mortgage Company, 6/5/74 39 F.R. 20729 Corporation, Lancaster, Columbus, Ohio 6/13/74 Pennsylvania Rush County Insurance Agency, Full Service Insurance Incorporated, 6/3/74 39 F.R. 20649 Inc., La Crosse, Kansas La Crosse, Kansas 6/12/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 525 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Federal Nonbanking Company Effective Register Applicant (or activity) date citation Society Corporation, Society Life Insurance Company, 6/19/74 39 F.R. 24062 Cleveland, Ohio Phoenix, Arizona 6/28/74 Zions Utah Bancorporation, Mauss Finance Company, 6/\0/74 39 F.R. 21090 Salt Lake City, Utah Twin Falls, Idaho 6/18/74 ORDERS UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation Euclid Street State Bank, Main Bank and Trust, 6/7/74 39 F.R. 21010 San Antonio, Texas San Antonio, Texas 6/17/74 ORDERS ISSUED BY FEDERAL RESERVE BANKS During June 1974, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Reserve Effective Register Applicant Bank(s) Bank date citation Southern Bancorporation, Capitol National Bank of Atlanta 6/7/74 39 F.R. 21089 Birmingham, Alabama Montgomery, Montgomery, 6/18/74 Alabama Tennessee Valley Bancorp, The Union Bank, Atlanta 6/11/74 39 F.R. 22471 Inc., Nashville, McEwen, Tennessee 6/24/74 Tennessee American Bankcorp, Inc., The State Bank of Perry, Chicago 6/19/74 39 F.R. 24483 Lansing, Michigan Perry, Michigan 7/2/74 Fidelity Financial Corpo­ Fidelity Bank of Southfield, Chicago 6/19/74 39 F.R. 24436 ration of Michigan, Southfield, Michigan 7/2/74 Birmingham, Michigan Texas Commerce Bancshares, Guaranty National Bank and Dallas 6/11/74 39 F.R. 22472 Inc., Houston, Texas Trust of Corpus Christi, 6/24/74 Corpus Christi, Texas Texas Commerce Bancshares, Union Bank of Fort Worth, Dallas 6/14/74 39 F.R. 24063 Inc., Houston, Texas Fort Worth, Texas, and First 6/28/74 National Bank of Hurst, Hurst, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 FEDERAL RESERVE BULLETIN □ JULY 1974 REVISED RATES FOR THE BULLETIN In view of substantial increases in the cost of pub­ lishing and distributing the Federal Reserve B u l­ letin , subscription rates and the per-copy charges have been revised. Effective August 1, 1974, the rates shown below will apply. Annual subscriptions: Domestic ........................................................... $20.00 Member banks1 ................................................. 10.00 Foreign .............................................................. 24.00 Single copies: Domestic ........................................................... 2.00 Foreign .............................................................. 2.50 Quantities: Annual subsubscriptions for 10 or more copies sent to a single address ................................................. 18.00 10 or more copies of one issue sent to a single address ...................................... 1.75 'A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring addi­ tional copies may obtain them at the special $10.00 annual rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF CITICORP ISSUE OF FLOATING RATE NOTES: CORRESPONDENCE The Board of Governors announced on July 16, 1974, a reorganization of its staff, including es­ The Board of Governors sent the following letter tablishment of a new Office of Saver and Con­ to Chairman Ray Garrett, Jr., of the Securities and sumer Affairs. The new office, to begin operation Exchange Commission in response to a request for August 5, will combine in a separate department comment with respect to the preliminary two sections of the existing Division of Supervi­ prospectus of Citicorp covering its proposed issue sion and Regulation: Securities Credit and Truth of Floating Rate Notes due 1989. in Lending. It was created also in anticipation of the Board’s possible responsibilities for im­ plementation of certain pending consumer affairs July 2, 1974 legislation. Dear Mr. Garrett: The Director of the new office will be Frederic Solomon, who has been Director of the Board’s This is in reply to the request of your Division of Division of Supervision and Regulation since Corporation Finance dated June 24, 1974, for Board comment on the preliminary prospectus of Citicorp 1959. Janet Hart, currently Assistant Director in covering its proposed issue of $250 million (since raised the Division of Supervision and Regulation, will to $850 million) of Floating Rate Notes due 1989. be Deputy Director. Citicorp, as a registered bank holding company, is At the same time, the Board announced other subject to the rules and regulations issued by the Board under the Bank Holding Company Act of 1956; First major staff structure and responsibility changes: National City Bank, a wholly owned subsidiary of J. Charles Partee continues as Managing Direc­ Citicorp, is directly supervised by the Comptroller of tor for Research and Economic Policy. the Currency but for certain matters is subject to the Effective August 19, Daniel M. Doyle will rules and regulations applicable to member institutions become Managing Director for Operations, re­ of the Federal Reserve System. placing David C. Melnicoff who has announced Due to the specific characteristics of the proposed note his resignation as Managing Director for Opera­ issue, which include an interest rate that varies over time with the yield on 90-day Treasury bills and the tions and Supervision. option given to the holder to present the notes for Lyle E. Gramley, now Deputy Director of the redemption semiannually on 30 days’ notice, it seems Division of Research and Statistics, will become highly probable that the securities in question will Director of that Division, effective August 5. appeal to relatively small investors, such as individuals. We understand that Citicorp proposes to limit subscrip­ Effective August 5, the Division of Supervision tions to not l£ss than $5,000 or more than $50,000. and Regulation will be renamed the Division of Thus, it seems clear that the proposed issue will compete Banking Supervision and Regulation, with Bren- directly for funds that might otherwise be invested in ton C. Leavitt as Director. Mr. Leavitt will con­ time or savings deposits at commercial banks and other tinue as Program Director for Banking Structure. thrift institutions. Savings flows to these institutions have already fallen off in recent months, and the addi­ John M. Denkler, currently Assistant Con­ tional diversion of funds into the Citicorp issue may troller, will be Deputy Managing Director for further worsen the experience of these institutions. Operations, effective August 19. Competition for the funds of the saving public ought Also effective August 5, Robert J. Zemel will to be encouraged, as a general principle, because it become Assistant Director of the Division of Data increases the returns available to savers and normally Processing. Mr. Zemel, a graduate of the City tends to encourage efficient use of the Nation’s financial resources. Given the present sensitive state of financial College of New York, has been with the Board markets and the extent to which savings institutions are since 1969. already under heavy pressure, however, the result of The Board of Governors of the Federal Reserve the present large offering—and any other offering like System announced the appointment of Thomas J. it, whether issued by bank holding companies or other O’Connell, General Counsel, as Counsel to the corporations—can well be to divert the flow of savings from the residential mortgage market and to deprive Chairman, effective July 10, 1974. homebuyers of needed mortgage financing. It is not Also effective July 10 Andrew F. Oehmann was clear, therefore, that an offering of this type is in the named Acting General Counsel. public interest at this time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 FEDERAL RESERVE BULLETIN □ JULY 1974 The Board’s present statutory powers do not authorize deliberation the economic and financial it either to prevent or to regulate the terms of the implications of this novel type of issue. Citicorp issue. The legislative history of the 1969 amendments to the Federal Reserve Act, which author­ ized the Board to determine what types of obligations At the same time, the Board sent the following issued by affiliates of member banks may be deemed letter to Senator William Proxmire of Wisconsin. to be deposits for purposes of the Board’s regulations, makes it clear that such authority applies only to the July 9, 1974 extent that the proceeds of such affiliate obligations are used for the purpose of supplying funds to a member Dear Senator Proxmire: bank. To the extent that the proceeds of the Citicorp Notes may be used for supplying funds to member Your letter of July 8 requests the assistance of Board banks, they would be subject to reserve requirements, staff in developing possible legislative proposals that but not otherwise. Further, the Board has no grounds would give us authority to deal with bank holding com­ for objecting, under the authority of the Bank Holding pany security offerings such as the proposed Citicorp Company Act, to the terms of the proposed security issue. We are glad to comply, and our staff will be issue. Indeed, the financing would appear to improve in touch with Mr. Shuman. the financial condition of Citicorp. It is difficult at this time to predict what the effects Nevertheless, in the interest of full and fair disclo­ of the Citicorp issue, and others like it that may follow, sure, the Board urges that all necessary steps be taken would be on the pattern and geographic distribution of to make investors aware that the Citicorp Notes are not financial flows. It seems probable that banks and thrift obligations of a bank and are not insured by the Federal institutions would lose deposits to instruments of this Deposit Insurance Corporation. We would suggest that type and, if the volume of such offerings were large, the SEC require the facing page of the prospectus be the amount of disintermediation could be significant. amended to include, in a prominent position in 10-point It should be recognized, however, that a sizable bold-face type, a statement along the following lines: proportion of the subscriptions to such issues would represent shifts from other market instruments or the THESE NOTES ARE UNSECURED DEBT placement of funds that might have been withdrawn OBLIGATIONS OF CITICORP, ARE NOT from banks and thrift institutions in any event. LEGALLY ENFORCEABLE OBLIGA­ The specific features of the proposed Citicorp issue TIONS OF ANY BANK AND ARE NOT are designed to be attractive to relatively small inves­ INSURED BY THE FEDERAL DEPOSIT tors, and would place them more nearly on a parity INSURANCE CORPORATION. with large investors so far as yields are concerned. On balance, it is not obvious that the long-run public inter­ It is further suggested that the underwriters of the issue est would be best served by prohibiting or limiting in­ be required to include a similar legend in any adver­ novative efforts of this kind. Instead it might be prefer­ tisement of the Note issue, and that Citicorp include able to make plans for special assistance to the savings the same qualification on the face of any notes that may institutions and for provision of an adequate volume be issued subsequently. of housing finance. For example, the present program The Board’s staff is currently reviewing the prospec­ of subsidized lending by the Federal Home Loan Bank tus and will communicate with your staff in the next System might be expanded, and perhaps extended to few days regarding any additional comments that it may mutual savings banks. Also, it may be desirable for have. Congress to consider permitting the Federal agencies to authorize the issuance of variable-rate deposit obli­ Very truly yours, gations not subject to interest rate ceilings. As offerings of the type proposed by Citicorp may proliferate, we George W. Mitchell believe that any such administrative plans and legisla­ * * * tive proposals should be formulated promptly. If, however, the Congress wishes to limit the ability Dr. Arthur F. Burns, Chairman of the Board of of bank holding companies to offer instruments that Governors of the Federal Reserve System, sent might compete unduly with savings deposits, two pos­ sibilities come to mind. First, the Congress could indi­ the following telegram on July 9, 1974, to Citi­ cate its intent, in PL 91-151, to give the Board author­ corp, New York City, concerning its proposal to ity to regulate the terms of the note issues of bank hold­ issue $850 million in floating-rate notes: ing companies and their non-bank subsidiaries—re­ gardless of the intended use of the proceeds. This would make it possible, for example, for the Board to limit In view of some concern on the part the ability of the issuer to offer investors the option of of Congress and the regulatory agen­ periodic redemption of their notes. This redemption opportunity—particularly since it applies from issue cies, I most earnestly request that you date forward at six-month intervals—is the main fea­ postpone for an interval of two weeks ture that makes the proposed Citicorp issue appear sim­ the Citicorp floating interest rate issue. ilar to a time deposit. Such an interval would enable the A second approach, entailing more extensive regula­ Congress and the Government officials tory involvement, would be to broaden existing regula­ principally concerned to study with due tory authority with respect to the issuance of a “cease Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 529 and desist” order so that the Board, on a case-by-case financial institution to act responsibly in the public in­ basis, could determine that a proposed note issue would terest. have a sufficiently adverse impact on financial markets or depositary institutions to justify imposition of appro­ Sincerely yours, priate restrictions by the Board. Such authority would be extremely broad and flexible in character. It would Walter B. Wriston not, of course, apply to issues by any corporations not affiliated with bank holding companies. July 11, 1974 Sincerely, Dear Mr. Chairman: Arthur F. Burns We refer to your telegram of July 9, our meeting * * * of July 10, our letter of July 11, and to subsequent conversations. It is my understanding that the Board of Governors does not feel that our proposal to post­ The Board of Governors of the Federal Reserve pone the first optional redemption date of the Notes to System made public on July 12, 1974, the follow­ December 1, 1975, fully responds to their concern, and that this initial period should be extended to two years. ing further exchange of correspondence between Arthur F. Burns, Chairman of the Board of Gov­ The difficulty in marketing the issue which may reach $850 million is not unrelated to the length of time ernors, and Walter B. Wriston, Chairman of Citi­ intervening between the issuance of the Notes and the corp, New York City. first redemption date. In our continuing effort to be fully responsive to the Board’s request, we have once again gone back to our underwriters and urged that they and we assume the additional risk which is inherent in extending the initial redemption date. Because the July 11, 1974 Notes are redeemable on interest payment dates which are stipulated to be June 1 and December 1, the under­ Dear Mr. Chairman: writers will agree to accept an amendment to the terms of the issue which will provide that the first redemption We refer to your telegram of July 9 in which you date will fall on June 1, 1976. This would be a period request that time be taken to think through the eco­ of nearly two years and I believe conforms very closely nomic and financial implications of Citicorp’s proposed to my understanding of the Board’s request. note issue. As you know, we greatly respect your In responding affirmatively to the Board’s request, views, and want to do everything we can to accommo­ we reaffirm that we are keenly aware of our respon­ date them. With this in mind, I arranged to call upon sibilities as a major financial institution to act responsi­ you yesterday to explore ways in which we might re­ bly in the public interest. solve your concerns. As I understand it, the principal concern centers upon the possibility that the sale of Sincerely yours, these notes would cause disintermediation, particularly from thrift institutions. Walter B. Wriston The risk of possible disintermediation appears to center on the fact that the proposed note issue contains a provision that the purchaser of the note may ask the July 12, 1974 Corporation to redeem it at six months’ intervals. Ob­ viously, therefore, if this interval in the first instance Dear Walter: could be extended this perceived danger would be re­ duced accordingly. With this in mind, discussions have In view of your modification of the terms of the pro­ been had with our underwriters as to how the note jected Citicorp note issue, as explained in your second could be modified to still retain what you have referred letter of July 11, 1974, namely that no holder of the to as “the attractive yield feature,” while at the same notes would have the right to request payment from time minimizing the problems which you perceive. Citicorp before June 1, 1976, the Board feels that its After extensive negotiations, the underwriters have in­ concern about the effects on thrift institutions is sub­ dicated to us that even though the extension of any re­ stantially reduced. From the viewpoint of the Board, demption period may have an adverse effect upon the you have met the basic concern that gave rise to our marketability of this issue, both they and we are request for a postponement of the issue. prepared to amend the provisions of the notes so that However, there may still be serious doubts on the no holder would have the right to request payment from part of Congress and the other regulatory agencies, and Citicorp prior to December 1, 1975, a period of nearly you may therefore still want to consider the suggestion one and a half years following the initial issuance. for a postponement that I made in my communication Although we recognize, as you have previously of July 9. stated, that the Federal Reserve Board takes the posi­ tion that its present statutory powers do not authorize Sincerely yours, it to regulate the terms of the Citicorp note issue, we are also keenly aware of our responsibilities as a major Arthur F. Burns Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 FEDERAL RESERVE BULLETIN □ JULY 1974 OTC CRITERIA AMENDED Florida St. Petersburg ... Bank of Florida in The Board of Governors has amended, effective St. Petersburg July 25, the criteria that over-the-counter (OTC) Ohio stocks must meet and must continue to meet to Lorain ................ First Lorain Trust be included on its List of OTC Margin Stocks. Company The amendments were substantially the same as those that were published for comment on April Painesville ............Lakeshore Trust Company 16, 1974. Virginia The criteria employed in selecting OTC stocks Charlottesville ... United Virginia Bank for inclusion on the List of OTC Margin Stocks of Charlottesville were announced on July 9, 1969. More than 600 stocks are now on the list and subject to the Hurt .................... First Guaranty Bank Board’s margin requirements. King George ___ King George State The Board’s action, which make the criteria Bank, Inc. somewhat less restrictive, reflects the many Petersburg .......... Community Bank changes that have occurred in the OTC market since 1969, particularly the impact of the National Association of Securities Dealers Automated Quotation System (NASDAQ). BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31,1973- ERRATUM ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The breakdown for the number of bank holding companies was inadvertently omitted from the The following banks were admitted to member­ table on this subject that appeared on pp. A 80-A 82 ship in the Federal Reserve System during the of the June B u lletin . The total number of com­ period June 16, 1974, through July 15, 1974: panies by State is shown in the table below. State Total State j Total State | Total State j Total 50 States and District of Columbia ...........1,677 Idaho ..................... ........... 3 Missouri ................ 95 Pennsylvania ....... 25 Alabama ..................... 18 Illinois ...............................153 Montana ................ 32 Rhode Island ........... 10 Alaska ......................... 2 Indiana ............................. 29 Nebraska ................ 127 South Carolina ........... 8 Arizona ....................... 5 Iowa ..................... ...........140 Nevada ................... 3 South Dakota ........... 28 Arkansas ..................... 19 Kansas ...............................124 New Hampshire .. .. 6 Tennessee 19 California ................... 42 Kentucky ............ ........... 9 New Jersey.............. 19 Texas ................... ........... 92 Colorado ..................... 73 Louisiana ............ ........... 17 New Mexico ......... 1 1 Utah ..................... ........... 10 Connecticut .............. 9 Maine ................... ........... 7 New York ............ 45 Vermont .............. ........... 2 Delaware ................... 3 Maryland ............ ........... 16 North Carolina 7 Virginia ........................... 26 District of Columbia ... 5 Massachusetts ........... 28 North Dakota ...... 18 Washington .................... 5 Florida ....................... 62 Michigan .............. ........... 42 Ohio ....................... 36 West Virginia 9 Georgia ...................... 30 Minnesota ............ ..........108 Oklahoma .............. 55 Wisconsin ............ 56 Hawaii ....................... 1 Mississippi ...................... 4 Oregon ................... 5 Wyoming ............ 22 Note.—Data for individual States represent bank holding com- figures because it has been corrected for duplications; that is, panies having subsidiary banks in the respective States rather holding companies that have subsidiary banks in more than than bank holding companies whose principal offices are one State are included in the total only once, located in such States. Total does not equal sum of State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication July 15 Industrial production remained unchanged in June INDUSTRIAL PRODUCTION Seasonally adjusted, ratio scale, 1967=100 and at an estimated 125.5 per cent of the 1967 average was virtually the same as a year earlier. Declines in output of consumer goods and business equipment were offset by increases in production of intermediate products and industrial materials. Preliminary figures for the second quarter as a whole show a rise of 1.3 per cent at an annual rate from the first-quarter average. Auto assemblies in June were at an annual rate of 7.7 million units, the same as in May, as work 1974 1968 1970 1972 stoppages were a factor limiting scheduled in­ creases. Output of household appliances remained at advanced levels, but production of other durable consumer goods declined. Output of nondurable consumer goods also declined, reflecting, in part, a strike in the men’s clothing industry. Production of business equipment declined about 1 per cent in June but was still 5 per cent above a year earlier. Output of both construction products and general business supplies increased. Production of durable goods materials rose, as output of steel and various consumer durable ma­ terials and parts increased somewhat from the near-capacity levels prevailing earlier. Production of most nondurable goods materials was un- F.R. indexes, seasonally adjusted. Latest figures: June, changed. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate Industrial production 1974 1973 1974 Month Year ago ago Apr.r Mayp Junee Q4 Qi Q2 Total ................................................... 124.9 125.5 125.5 0 -.1 .9 —6,6 1.3 Products, total ............................................ 122.8 123.4 123.1 -.2 -.5 1.3 -5.8 1.3 Final products ......................................... 121.0 121.9 121.1 -.7 -.2 3.3 -6.5 1.0 Consumer goods ................................ 128.7 129.5 128.7 -.6 -2.4 1.2 -11.5 .9 Durable goods .............................. 130.4 132.7 131.2 - 1.1 -7.5 -4.0 -26.6 11.6 Nondurable goods ....................... 128.0 128.4 127.8 -.5 -.2 3.1 -5.2 -3.1 Business equipment ......................... 128.3 129.1 128.0 -.9 4.5 8.0 .6 6.3 Intermediate products .......................... 129.3 129.6 130.4 .6 - 1.2 -4.8 -4.6 3.1 Construction products ..................... 130.8 132.2 133.4 .9 -.1 -5.6 -5.1 2.4 Materials ....................................................... 128.5 129.0 129.4 .3 .3 .3 -6.7 .3 'Revised. "Preliminary. 'Estimated. 531 Digitized for FRASER 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 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 32 Savings institutions A 34 Federal finance A 36 U.S. Government securities A 39 Federally sponsored credit agencies A 40 Security issues A 43 Business finance A 44 Real estate credit A 47 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ JULY 1974 U.S. STATISTICS—Continued A 50 Industrial production A 52 Business activity A 52 Construction A 54 Labor force, employment, and unemployment A 55 Consumer prices A 55 Wholesale prices A 56 National product and income A 58 Flow of funds INTERNATIONAL STATISTICS: A 60 U.S. balance of payments A 61 Foreign trade A 61 U.S. reserve assets A 62 U.S. gold transactions A 63 International capital transactions of the United States A 76 Open market rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governments TABLES PUBLISHED PERIODICALLY: A 79 Sales, revenue, profits, and dividends of large manu­ facturing corporations Banking and monetary statistics, 1973: A 80 Principal assets and liabilities of commercial banks and number, by class of bank A 91 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted for seasonal variation c Corrected IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities S Sources of funds I, II, III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as 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 Sales, revenue, profits, and divi­ Banks and branches, number, dends of large manufacturing by class and State ......................Apr. 1974 A-88—A-89 corporations .............................. July 1974 A-79 Flow of funds: Semiannually Assets and liabilities: 1961-72 ..................................Sept. 1973 A-71.14—A-71.28 Banking offices: Analysis of changes in number Feb. 1974 A-98 On, and not on, Federal Reserve Flows: Par List, number ................. Feb. 1974 A-99 1961-72 ..................................Sept. 1973 A-70—A-71.13 Annually Income and expenses: Federal Reserve Banks ..............Feb. 1974 A-96—A-97 Bank holding companies: Insured commercial banks ..........June 1974 A-84—A-85 Banking offices and deposits of Member banks: group banks, Dec. 31, 1973 June 1974 A-80—A-83 Calendar year ..........................June 1974 A-84—A-93 Income ratios ...........................June 1974 A-94—A-99 Banking and monetary statistics: Operating ratios ......................June 1973 A-96—A-101 1973........................................... Mar. 1974 A-96—A-109 July 1974 A-80—A-82 Stock market credit ..........................Jan. 1974 A-96—A-97 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1974 A-106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ JULY 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............................... 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec............................... 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 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—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 "3,162 1,180 "83,929 10,410 400 8,538 Aug.............................. 76,653 76,475 178 "2,144 r2,563 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 rl,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 2,295 1,160 86,907 11,567 400 8,807 May............................. 83,434 82,037 1,397 2,580 2,025 1,093 89,405 11,567 400 8,838 June?5........................... 82,812 81,859 953 2,999 2,017 1,106 89,156 11,567 400 8,877 Week ending— 1974—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 17....................... 81,606 80,651 955 1,816 2,646 1,134 87,332 11,567 400 8,803 24....................... 81,689 80,996 693 1,939 2,503 1,191 87,526 11,567 400 8,812 May 1....................... 82,731 81,637 1,094 2,157 1,919 1,292 88,365 11,567 400 8,822 8....................... 83,190 81,868 1,322 1,616 1,807 1,336 88,238 11,567 400 8,827 15....................... 83,626 81,951 1,675 1,977 1,908 1,248 89,065 11,567 400 8,830 22....................... 83,679 81,756 1,923 3,090 2,238 879 90,227 11,567 400 8,836 29....................... 83,162 82,418 744 3,606 1,905 900 89,737 11,567 400 8,856 June 5....................... 83,075 82,128 947 3,054 2,184 1,013 89,554 11,567 400 8,859 12....................... 81,267 80,814 453 2,729 2,007 1,036 87,184 11,567 400 8,862 19*>..................... 83,017 82,283 734 3,223 2,165 1,095 89,723 11,567 400 8,880 26p..................... 83,815 82,049 1,766 2,788 2,055 1,160 90,068 11,567 400 8,891 End of month Apr............................... 82,661 8 81,749 912 1,747 1,736 1,313 87,673 11,567 400 8,844 May............................. 84,658 8 82,777 1,881 3,298 1,925 1,015 91,269 11,567 400 8,895 June*>........................... 83,612 8 82,646 966 3,209 1,835 1,264 90,224 11,567 400 8,892 Wednesday 1974—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 1,284 2,637 1,283 86,494 11,567 400 8,803 24....................... 81,489 8 80,933 556 2,171 2,649 1,229 87,737 11,567 400 8,821 May 1....................... 82,425 8 81,649 776 1,869 2,955 1,395 88,848 11,567 400 8,826 8....................... 83,125 8 81,916 1,209 1,923 2,380 1,330 89,023 11,567 400 8,829 15....................... 83,670 8 82,088 1,582 3,500 2,714 831 91,055 11,567 400 8,832 22....................... 81,473 9 79,840 1,633 2,980 2,131 946 87,787 11,567 400 8,853 29....................... 85,253 8 82,471 2,782 4,711 2,165 923 93,402 11,567 400 8,856 June 5....................... 79,659 9 79,659 2,710 2,847 1,078 86,394 11,567 400 8,860 12....................... 82,989 9 80,764 2,225 3,157 2,271 1,090 89,903 11,567 400 8,865 19 p..................... 82,283 8 82,283 2,486 2,728 1,134 88,726 11,567 400 8,886 26p..................... 83,555 8 81,976 1,579 2,979 2,405 1,196 90,392 11,567 400 8,892 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 table on F.R. Banks on p. A-12. 1971. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- Bulletin, p. 164. owned banking institutions held with member banks and redeposited in 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. full with Federal Reserve Banks in connection with voluntary 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

JULY 1974 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank IVlember ban k r C en u c r y ­ T u re r a y s­ with r e F s . e R rv . e B s, a nks Other O F t . h R e . r reserves Period or date c t c u i i i o n l r a n ­ ­ h c in o a g l s d h s ­ T u re r a y s­ F ei o g r n ­ Other 2,5 co F u a . n c R ­ t . s 3 c b a i a p l l i n i i a t t d i ­ a e l s 3 B W F a . n R it k h . s r C a en n u d c r y ­ Total 7 coin6 Averages of daily figures 7,609 2,402 616 72\9 248 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. 67,609 386 2,408 266 698 2,732 r25,777 6,086 '32,029 .............................1973—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 r27,375 6,296 '33,783 ..........................................Aug. 68,592 349 792 332 781 2,848 *•27,510 6,402 '34,020 68,909 622 1,718 266 5 752 2,866 '28,458 6,371 '34,913 69,927 340 1,772 522 5 689 2,854 r28,259 '6,382 '34,725 71,646 323 1,892 406 5 717 2,942 28,352 6,635 35,068 70,962 349 2,488 427 5 713 2,904 29,396 7,192 36,655 .............................1974—Jan. 70,411 342 2,972 293 5 682 2,932 28,574 6,601 35,242 ..........................................Feb. 71,081 334 1,803 311 5 699 2,998 28,450 6,450 34,966 72,176 308 1,712 328 5 702 2,985 29,469 6,402 35,929 72,876 286 3,000 320 5 699 3,168 29,861 6,600 36,519 73,749 293 2,015 491 5 691 3,187 29,574 6,668 36,292 Week ending— 71,366 340 1,889 372 5 704 3,105 28,904 6,481 35,443 .......................1974—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 5 695 3,010 29,741 6,457 36,256 ...............................................17 72,308 288 1,666 269 5 703 2,997 30,074 5,923 36,055 ...............................................24 72,048 301 2,460 343 5 672 3,132 30,198 6,589 36,845 72,463 299 2,959 294 5 662 2,961 29,393 6,885 36,336 ............................................... 8 72,997 285 2,723 277 5 715 3,122 29,743 6,845 36,646 ...............................................15 72,959 278 3,028 343 5 728 3,218 30,477 6,081 36,616 ................................................22 73,062 273 3,224 287 5 684 3,310 29,719 6,572 36,349 ...............................................29 73,344 302 2,804 399 5 694 3,275 29,562 6,659 36,279 73,846 283 931 309 5 674 3,041 28,929 6,802 35,789 ...............................................12 73,938 292 1,511 992 5 674 3,140 30,022 6,641 36,721 ...............................................\9V 73,689 298 2,659 343 5 687 3,265 29,985 6,486 36,529 ...............................................26^ End of Month 72,233 298 2,813 517 5 697 3,129 28,795 6,589 35,442 73,199 296 3,133 429 5 667 3,395 31,012 6,661 37,731 73,786 290 2,919 384 5 762 3,319 29,623 6,812 36,435 Wednesday 71,762 340 2,426 264 5 748 2,757 27,825 6,481 34,364 .......................1974—Apr. 3 72,633 313 1,277 339 5 758 2,918 28,021 6,633 34,712 ...............................................10 72,723 293 902 368 5 670 2,896 29,411 6,457 35,926 ...............................................17 72,310 287 2,425 279 5 700 3,026 29,498 5,923 35,479 ...............................................24 72,329 300 2,948 544 5 705 3,180 29,634 6,589 36,281 72,975 305 2,993 254 5 689 3,009 29,594 6,885 36,537 ............................................... 8 73,204 296 2,569 358 5 749 3,131 31,547 6,845 38,450 ...............................................15 73,099 292 4,332 265 5 761 3,244 26,614 6,081 32,753 ...............................................22 73,488 269 2,333 315 5 642 3,644 33,534 6,572 40,164 ...............................................29 73,740 300 1,340 330 5 683 2,931 27,896 6,659 34,613 74,166 296 906 359 5 650 3,101 31,257 6,802 38,117 ...............................................12 73,991 308 2,946 753 5 695 3,141 27,744 6,641 34,443 ...............................................19^ 73,932 303 2,693 282 5 699 3,286 30,055 6,486 36,599 ..............................................26? 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 1974 Ql, t67 million Q2, $58 million, transition period ended after second thereafter. Beginning with Jan. 1963, figures are estimated except for quarter, 1974. 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. million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS □ JULY 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess rowquired sonal ings ings igs 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 4 14,536 1,491 334 48 192 14 418 46 16,364 1,027 142 125 58 8 5 232 29 18,527 756 87 29 19 4 8 100 40 22,267 452 454 41 111 15 23 67 92 24,915 345 238 18 40 8 13 50 80 26,766 455 765 100 230 15 85 90 180 27.774 257 1,086 56 259 18 27 6 321 28,993 272 321 34 25 7 4 42 28 31,164 165 107 25 35 1 8 -35 42 31,134 219 1.049 -20 301 13 55 -42 264 31,970 59 1,788 77 -61 145 -5 28 -79 711 33,199 391 2.050 124 156 135 30 67 -2 993 33,540 243 2,144 163 34 109 -8 53 8 ,227 33.775 245 1,861 147 -6 115 24 62 40 972 34,690 223 1,465 126 11 74 1 54 17 748 34,543 182 1.399 84 27 180 -24 28 -20 598 34,806 262 i;298 41 -23 74 43 28 28 435 36,419 236 1,044 18 65 135 -44 17 -8 343 35,053 189 1,186 17 51 87 -19 18 -51 446 34,790 176 1,352 32 21 113 -61 65 43 485 35,771 158 1,714 50 19 114 69 41 -58 572 36,325 194 2,580 102 -20 772 29 20 -4 849 36,257 35 2,999 135 -45 1,302 -39 51 -22 847 31,819 344 1,664 64 62 200 34 47 44 728 31,595 2 1,700 67 -78 31 -1 18 -102 698 32,132 144 1,928 71 92 262 -24 9 -132 693 32,000 220 1,849 93 -41 107 -7 53 714 34,468 438 1,478 57 167 15 11 29 578 34,472 -28 1,303 45 -139 102 -23 11 -37 421 34,892 311 1,488 40 137 163 29 + 34 488 34,958 472 1,039 35 106 30 81 363 35,268 388 1,210 31 80 140 -6 141 24 330 36,210 86 776 19 2 271 -47 44 -96 287 37,374 328 988 20 59 45 16 27 262 36,693 -83 1,182 13 -114 183 -12 -110 344 35,880 259 1,220 17 104 20 -57 15 467 35,351 124 998 18 -123 14 34 504 35.054 294 1,153 15 144 92 -23 56 -34 420 35,274 114 1,376 20 -37 257 -63 -42 408 34,645 206 1,251 16 70 -17 13 -24 458 34,515 118 912 19 -81 123 13 11 1 414 34,632 116 983 19 41 11 -8 66 -82 399 35,129 80 1,483 35 -41 333 -3 15 -36 456 34,605 169 1,713 43 10 31 40 21 -16 600 35,217 226 1.503 44 77 34 -9 189 -27 570 34,940 62 1' 194 41 -73 108 4 53 6 370 35,927 329 1,816 46 78 107 -19 101 37 515 35,916 139 1,939 52 -12 69 70 4 -12 633 36,668 177 2,157 74 62 176 -47 17 -34 824 36,201 135 1,616 82 -57 134 41 14 10 646 36,470 176 1,977 94 83 506 -39 37 -63 703 36,487 129 3,090 112 -55 993 57 7 -9 959 26,170 179 3,606 114 32 1,449 -17 9 -10 ,067 36.054 225 3,054 131 -37 1,210 2 15 61 983 35,658 131 2,729 136 26 1,296 21 40 -67 764 36,463 258 3,223 142 38 1,385 -37 139 32 715 36,425 104 2,788 133 13 1,221 19 17 -79 860 Nov. 15, 1972, includes $450 million of for July 1972, p. 626. Categories shown here ther” L Banks are allowed to waive penalties parallel the previous “Reserve city” and “Coi tively on with bank adaptation to Regulation J (hence the series are continuous over time). I. Beginning 1973, allowable deficiencies : statement week of quarter): Q1, $279 Note.—Monthly and weekly data are av< /ithin 12 million; Q4 million. Beginning 1974 the month or week, respectively. Beginning s are i, transition period ended after second estimated except for weekly averages. Borrowings at F.R. Banks: Based on closir gnation of banks as reserve city banks Effective Apr. 19, 1963, the Board’s Regul lendhas been based on size of bank (net ing by Federal Reserve Banks, was revised tc ♦00 million), as described in the Bulletin to meet the seasonal borrowing needs of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o 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 er x r v c e e e ­ s s s 1 r a o t B w F o i r n .R ­ g . s F i b e n N d a t n e e e r r t k a ­ l S d u e r o f p i r c lu it s r P e e q a r o u v c i g f r e . e n d t c P ha u s r e ­ s Sales t a w t c T r o t a o i - o n t w n a s a l s ­ y 2 b c o h P u f a y u n s i r n e e ­ t s g s o b S e a f l a l n l n i e n k e s g s t d L ea o t l a o e n r s s3 de f r B i r a n o o o l g w e m r s r ­ ­ s4 lo N a e n t s Banks funds reserves banks trans. Total—46 banks 1974—May 1......... 77 579 12,177 -12,679 76.8 19,231 7,054 5,704 13,527 1,350 1,467 562 906 8......... 42 360 12,208 -12,525 77.0 18,909 6,702 5,820 13,090 882 1,386 591 795 15......... 80 429 12,742 -13,092 78.8 18,783 6,040 5,659 13,123 380 1,316 639 678 22......... 95 473 11,809 -12,187 73.5 17,221 5,412 5,259 11,962 152 1,888 742 1,146 29......... 64 711 10,511 -11,157 68.1 17,391 6,881 6,016 11,375 865 1,794 802 993 June 5.......... 50 423 12,509 -12,882 78.3 18,938 6,428 5,482 13,455 946 2,220 798 1,422 12.......... 31 228 15,187 -15,384 94.6 20,960 5,773 5,168 15,792 606 3,271 948 2,322 19.......... 59 827 13,981 -14,749 87,7 20,238 6,258 5,790 14,448 468 2,088 751 1,337 26.......... 66 343 13,465 -13,741 82,9 19,669 6,205 5,344 14,326 861 1,806 1,579 227 8 in New York City 1974—May 1.......... 78 107 2,938 -2,967 44.2 5,161 2,224 1,717 3,444 507 783 310 473 8.......... -27 92 3,304 -3,423 52,1 5,481 2,177 1,761 3,720 416 593 348 245 15.......... 60 121 3,940 -4,002 59.2 5,408 1,467 1,369 4,039 98 521 360 161 22.......... -5 2,853 -2,858 42.3 4,268 1,415 1,403 2,865 12 778 385 393 29.......... 27 277 2,197 -2,447 37.7 4,524 2,327 1,716 2,808 611 803 390 413 June 5.......... -8 3,513 -3,521 52,9 5,231 1,718 1,296 3,935 422 1,137 402 734 12.......... 8 43 5,017 -5,052 77.8 6,416 1,399 1,105 5,311 295 1,463 458 1,005 19.......... 35 238 4,600 -4,803 69,8 6,215 1,615 1,521 4,694 95 1,017 458 559 26.......... 32 31 4,395 -4,394 65,9 6,257 1,862 1,551 4,706 312 702 499 203 38 outside New York City 1974—May 1.......... —1 471 9,239 -9,712 99.2 14,070 4,830 3,987 10,083 844 685 252 432 69 268 8,904 -9,102 93.9 13,429 4.525 4,059 9,370 466 792 243 550 15. 19 308 8,802 -9,091 92.2 13,375 4,573 4,291 9,084 282 795 278 517 22. 100 473 8,956 -9.329 94.8 12,953 3,997 3,857 9,097 140 1,110 357 753 29. 37 434 8,314 —8;7ii 88.2 12,868 4,554 4,300 8,567 254 991 411 580 June 5. 59 423 8,997 -9,361 95.6 13,707 4,710 4,187 9,520 523 1,083 395 688 12. 23 185 10,170 -10,333 105.8 14,544 4,374 4,063 10,481 311 1,807 490 1,317 19. 24 589 9,381 -9,946 100.1 14,023 4,642 4,269 9,754 373 1,071 294 778 26. 34 311 9,070 -9,347 94.3 13,412 4,342 3,793 9,619 549 1,105 1,081 24 5 in City of Chicago 1974—May 1........... -20 3,521 -3,541 199.3 4,406 885 885 3,521 320 320 29 3,751 -3,722 214.5 4,811 1,060 1,053 3,758 7 334 334 15. -13 14 3,800 -3,828 215.6 4,778 978 978 3,800 324 324 22. 43 3,661 -3,618 204.5 4,598 937 937 3,661 427 427 29. 18 3,156 -3,138 177.3 4,291 1,135 1,045 3,247 90 350 350 June 5. 3 3,861 -3,859 212.3 4,927 1,066 1,005 3,923 61 357 357 12. 12 29 4,267 -4,284 242.3 5,131 864 864 4,267 465 465 19. -14 129 3,934 -4,076 223.1 4,886 952 946 3,939 6 364 364 26. 21 3,815 - 3,793 206.9 4,810 996 996 3,815 402 402 33 others 1974—May 1... 19 471 5,718 -6,171 77.0 9,663 3,945 3,102 6,561 844 365 252 112 8.. . 40 268 5,153 -5,380 67.6 8,618 3,465 3,006 5,612 459 458 243 215 15... 33 294 5,002 -5,263 65.1 8,597 3,595 3,313 5,284 282 472 278 193 22... 57 473 5,296 -5,711 70.7 8,356 3,060 2,920 5,436 140 683 357 326 29... 20 434 5,518 -5,572 68.7 8,576 3,418 3,255 5,231 164 641 411 230 June 5... 56 423 5,135 -5,502 69.0 8,779 3,644 3,182 5,597 462 727 395 331 12... 11 157 5,904 -6,049 75.6 9,414 3,510 3,200 6,214 311 1,343 490 852 19... 38 460 5,448 5,869 72.3 9,138 3,690 3,323 5,815 368 707 294 413 26... 13 311 5,255 -5,554 68.7 8,602 3,347 2,798 5,805 549 702 1,081 -378 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 F.R. BANK INTEREST RATES □ JULY 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b)-2 last par. Sec. 133 Federal Reserve Bank J R u a 1 n t 9 e 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 J R u a 1 n t 9 e e 7 4 3 o 0 n , Ef d fe a c t t e ive Pr r e a v t io e us J R u a 1 n t 9 e e 7 4 3 o 0 n , Ef d fe a c t t e ive Pre r v a i t o e us 8 Apr. 30, 1974 71/2 81/2 Apr. 30, 1974 8 4 10 Apr. 30, 1974 91/2 New York................................................... 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 10 Apr. 25, 1974 91/2 Philadelphia............................................... 8 Apr. 25, 1974 71/2 8i/2 Apr. 25, 1974 8 10 Apr. 25, 1974 91/2 Cleveland.................................................... 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 10 Apr. 25, 1974 91/2 Richmond.................................................... 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 4 10 Apr. 25, 1974 91/2 Atlanta......................................................... 8 Apr. 29, 1974 71/2 81/2 Apr. 29, 1974 8 4 10 Apr. 29, 1974 91/2 Chicago......................................................... 8 Apr. 26, 1974 71/2 81/2 Apr. 26, 1974 8 4 10 Apr. 26, 1974 91/2 St. Louis....................................................... 8 Apr. 26, 1974 71/2 81/2 Apr. 26, 1974 8 4 10 Apr. 26, 1974 91/2 Minneapolis............................................... 8 Apr. 26, 1974 71/2 81/2 Apr. 26, 1974 8 4 10 Apr. 26, 1974 91/2 Kansas City............................................... 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 4 10 Apr. 25, 1974 91/2 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 4 10 Apr. 25, 1974 91/2 San Francisco........................................... 8 Apr. 25, 1974 71/2 81/2 Apr. 25, 1974 8 10 Apr. 25, 1974 91/2 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers’ acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 8 percent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954.......... U/2 IVi 1959—Mar. 6......................... 21/2-3 3 1970—Dec. 1......................... 51/2-53/4 5 3/4 3 3 4.......................... 51/2-53/4 51/2 1955—Apr. 14......................... U/2-l3/4 U/2 May 29......................... 3 -31/2 31/2 11......................... 51/2 51/2 M Au a g y . 1 1 2 4 5 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 l 1 1 3 3/ / 4 4 I 2 V - — - - 2 1 4 2 2 1 3 1 1 / / / / 4 4 4 4 2 2 l m l3 3/ / 4 4 1960—J J S u u ep n n t e e . 1 1 1 3 1 0 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 1 1 / / / 4 3 2 2 2 1 - - - / 4 4 2 4 4 4 4 3 3 1 1 / /2 2 1971—Jan. 2 2 1 1 8 2 9 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 1/ 5 5 4 1 - - - / 5 5 4 5 1 1 1 , / / 4 2 4 5 5 5 5 5 1 1 1 / / / 4 4 4 S N e o p v t . . 2 2 1 1 3 9 3 3 8 0 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 2 3 1 3 i / 4 / / 2 2 4 3 2 4 1 - - i - - - / / 2 3 4 3 2 3 2 i 1 / /4 2 2 2 2 2 2 2 3 3 3 1 3 1 1 V / / / / / 2 4 2 4 4 4 1 1 1 9 9 9 6 6 6 4 3 5 — — — S J N A D u e u o e p ly g c v t . . . . 2 1 1 9 6 7 6 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 3 3 4 3 3 1 3 1 1 - - - /2 / / 2 3 2 4 3 - 1 1 1 4 / / / 2 2 2 3 3 3 4 4 3 4 3 1 1 1 1 / / / / 2 2 2 2 J F D N u e e o l b y c v . . . 2 1 1 1 1 1 1 3 6 9 3 3 1 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4 1 3 1 3 / / / , 4 4 4 4 5 4 2 2 4 3 1 3 3 - - - / / 4 4 4 / 2 5 4 4 3 3 - - / y 5 5 4 4 4 5 5 5 4 4 4 4 5 1 1 3 3 3 / / ^ 4 4 2 2 1957—Aug. 9......................... 3 -31/2 3 41/2 41/2 1973—Jan. 15......................... 5 5 Nov. 2 1 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 - /2 31/2 3 3 3 1/2 1967—Apr. 7......................... 4 4 -41/2 4 4 M A Fe p a b r r . . . 2 2 2 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1/ 5 2 1 - - / 5 2 5 3 1 / / 4 2 5 5 5 1 1 1 / / / 2 2 2 Nov. 4 -41/2 41/2 May 4......................... 53/4 53/4 1958—Jan. 22......................... 23/4-3 3 41/2 41/2 11......................... 53/4-6 6 24......................... 23/4-3 23/4 1968—Mar. 41/2-5 41/2 18......................... 6 6 Mar. 7......................... 21/4-3 21/4 5 5 June 11......................... 6 -61/2 61/2 13......................... 21/4-23/4 21/4 Apr. 5 -51/2 51/2 15......................... 61/2 6j/2 21.......................... 21/4 21/4 51/2 51/2 July 2......................... 7 7 1 3/4-21/4 l3/4 Aug. 51/4-51/2 51/2 Aug. 14......................... 7 -71/2 71/2 May 9......................... l3/4 l3/4 51/4 51/4 23........................ 71/2 71/2 1 3/4-2 1 % Dec. 18......................... 51/4-51/2 51/2 Sept. 2 1 3 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l3/ 2 4-2 2 2 51/2 51/2 1974—Apr. 2 3 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71/2 8 -8 8 8 Oct. 24.......................... 2 -21/2 2 1969—Apr. 4......................... 51/2-6 6 Nov. 7.......................... 21/2 21/2 8......................... 6 6 In effect June 30, 1974. .. . 8 8 1970—Nov. 11......................... 5%-6 6 13......................... 5U-6 5V4 5Va 53/4 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

JULY 1974 □ RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Time 3 Net demand 2 (all classes of Net demand 2,4 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav­ 0-2 2-10 10-100100-400 Over Sav­ Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 0-5 5 0-5 5 6 In effect 1972—Nov. 9. . 10 12 7 161/2 17i/2 83 Jan. 1, 1963. 161/z 12 Nov. 16. 13 1966—July 14, 21 ... 1973—July 19.. IOI/2 121/2 131/2 18 Sept. 8, 15 ... 1967—Mar. 2............ 31/2 31/2 In effect Mar. 16............ 3 3 June 30, 1974 Id/2 121/2 131/2 18 1968—Jan. 11, 18... 161/2 17 12 121/2 1969—Apr. 17............. 17 171/2 121/2 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 161/4 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 □ JULY 1974 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type of deposit Type of deposit July 20, Sept. 26, Apr. 19, Jan. 21, July 1, Nov. 1, 1966 1966 1968 1970 1973 1973 Savings deposits............. 4 Vi 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 2 1 y y e e a a r r s t o o r 2 m y o ea re rs .. . . , 5 5 5 V V a i 9 1 0 y d ea a r y s t o t o 2 V 1 i y y e e a a r r .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Vi & Single-maturity: 2 VS years or more............................. 6 Vi 6Vi Less than $100,000: 4 years or more in minimum denom­ 30 days to 1 year. 5 ination of $1,000........................ (4) 71/4 1 year to 2 years.. 5 VS 5% $100,000 or more...................................... (3) (3) 2 years and over. . 5 % $100,000 or more: 30-59 days.......... 5% (3) 60-89 days.......... 5% (3) 90-179 days........ 5Vi 6 (3) 1 1 8 v 0 e a d r a y o s r t m o o 1 r y e. e . a . r Wa ( ( 3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such Bulletin for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 per cent of its total 2 Multiple-maturity time deposits include deposits that are automati­ time and savings deposits. Sales in excess of that amount were subject to cally renewable at maturity without action by the depositor and deposits the 6Vi per cent ceiling that applies to time deposits maturing in 2Vi years that are payable after written notice of withdrawal. or more. 3 Maximum rates on all single-maturity time deposits in denominations Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on of $100,000 or more have been suspended. Rates that were effective certificates maturing in 4 years or more with minimum denomination Jan. 21, 1970, and the dates when they were suspended are: of $1,000. There is no limitation on the amount of these certificates that banks may issue. 3 6 0 0- - 8 5 9 9 d d a a y y s s 6 6V V4 i p p e e r r c c e e n n t t ) j June 24, 1970 Note.—Maximum rates that may be paid by member banks are estab­ 90-179 days 6% per cent ] lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 year 7 per cent [ May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more 7Vi per cent] rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Rates on multiple-maturity time deposits in demonination of $100,000 Feb. 1, 1936, maximum rates that may be paid by nonmember insured or more were suspended July 16, 1973, when the distinction between commercial banks, as established by the FDIC, have been the same as single- and multiple-maturity deposits was eliminated. those in effect for member banks. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin’ stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4, 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31 , 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 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 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan. 3, 1974 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o 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—May.. 717 623 600 -3,829 -1,316 5,105 40 June.. 1,047 218 163 17 123 37 78 51 -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 41 1,515 125 680 331 -2,220 35 25 Dec.. 1,919 70 10 75 34 116 -34 35 1974—Jan... 1,340 335 1,402 9 93 77 Feb.. 768 391 410 687 30 -922 200 35 Mar.. 664 566 165 109 56 25 Apr.. 1,237 49 407 172 May. 737 100 112 2,563 26 -2,663 31 38 100 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 sales chases tions right agree­ ments 1970............. 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 1971.............. 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 1972............. 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 1973.............. 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1973—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 2,416 Aug... 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 20 157 -7 -915 Sept... 1,316 401 1,400 6,981 6,981 3,309 2,752 72 30 -95 -9 7 Oct... 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 2,440 Nov... 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -1,307 Dec... 2,145 70 10 3,435 3,435 9,523 10,202 1,387 212 84 -126 23 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 Apr... 1,409 49 407 8,069 8,498 524 360 48 33 —89 789 May.. 944 100 4,586 4,586 9,192 8,648 1,388 201 15 424 16 142 2,155 1 Before Nov. 1973 Bulletin, included matched sale-purchase trans­ 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers’ acceptances. 2 Includes special certificates acquired when the Treasury borrows Note.—Sales, redemptions, and negative figures reduce System hold­ directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings ; all other figures increase such holdings. 38; Aug. 1973; 351; Sept. 1973, 836. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st 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 i ian 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 t n d h d e e s r r s ­ f S r w an is c s s 1970—Dec. 257 154 98 1971—Dec. 18 3 2 1972—Dec. 192 164 20 1973—Mar. 4 Apr. 4 May 4 June 4 July. 4 Aug. 5 Sept. 4 Oct., 4 Nov. 4 Dec. 4 1974—Jan.. 1 Feb. 32 20 10 Mar. 6 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ JULY 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 June 26 June 19 June 12 June 5 May 29 June 30 May 31 June 30 Assets Gold certificate account........................................... 11,460 11,460 11.460 11,460 11.460 11,460 11,460 10,303 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash..................................................................... 216 216 211 210 215 218 223 305 Loans: Member bank borrowings.................. 2,979 2,486 3,157 2,710 4,711 3,209 3,298 1,770 Other............................................................... Acceptances: Bought outright........................................ 96 95 95 100 100 97 97 66 Held under repurchase agreements. 161 301 250 207 276 Federal agency obligations: Bought outright......................................... 2,549 2,549 2,549 2,621 2,621 2,858 2,621 1,449 Held under repurchase agreements. 534 511 701 270 642 U.S. Govt, securities: Bought outright: Bills................................... 37,089 37,396 35,877 34,700 37,718 37,274 37,818 34,247 Certificates—Special. Other.. Notes................................ 39,533 39,533 39,533 39,533 39,365 39,692 39,533 37,111 Bonds.............................. 2,805 2,805 2,805 2,805 2,767 2,822 2,805 3,664 Total bought outright............................ i 79,427 i 79,734 i 2 78,215 1 2 77,038 i 79,850 79,788 i 80,156 i 75,022 Held under repurchase agreements. 1,045 1,714 2,081 696 1,239 Total U.S. Govt, securities. 79,734 79,929 77,038 81,931 80,484 81,395 75,022 Total loans and securities........................ 86,791 84,864 86,542 82,469 90,314 87,125 88,329 78,307 Cash items in process of collection. . . 33 8 , 165 p9,006 7,902 8,375 8,619 p 7,240 6,966 7.319 Bank premises................................................ 238 238 236 237 236 239 236 204 Other assets: Denominated in foreign currencies. 69 71 63 63 16 90 63 4 All other........................................................ 825 791 778 671 935 716 927 Total assets. p 108,228 p 107,080 107,605 103,992 111,931 p 107,707 108,393 97,769 Liabilities F.R. notes....................................................... 65,453 65,523 65,701 65,284 65,009 65,295 64,732 59,807 Deposits: Member bank reserves....................... p 30,055 p 27,744 31,257 27,896 33,534 p 29,623 31,012 24.818 U.S. Treasury—General account. 2,693 2,946 906 1,340 2,333 2,919 3,133 4,039 Foreign........................................................ 282 753 359 330 315 384 429 334 Other: All other3................................................. 699 650 642 667 717 Total deposits. p 33,729 p 32,138 33,172 30,249 36,824 p 33,688 35,241 29,908 Deferred availability cash items............... 5,760 6,278 5,631 5,528 6,454 5,405 5,041 5,271 Other liabilities and accrued dividends. 1,125 1,094 1,149 1,105 1,458 1,101 1,160 799 Total liabilities. p 106,067 p 105,033 105,653 102,166 109,745 p 105,489 106.174 95,785 Capital accounts Capital paid in................................................................................ 876 876 875 873 873 878 874 820 Surplus................................................................................................ 844 844 844 844 844 844 844 793 Other capital accounts............................................................... 441 327 233 109 469 496 501 371 Total liabilities and capital accounts................................. p 108,228 p 107,080 107,605 103,992 111,931 * 107,707 108,393 97,769 Contingent liability on acceptances purchased for foreign correspondents.......................................................... 769 762 724 725 735 795 732 395 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................. 29,310 29,164 28,724 28,639 28,104 29,637 28,454 29,278 Federal Reserve Notes—Federal Reserve Agents’ Accounts 69,698 69,366 69,215 68,851 68,622 69,490 68,827 63,653 Collateral held against notes outstanding: 2,175 1.975 2,175 2,135 2,235 2,175 2,235 2,155 U.S. Govt, securities................................................................. 68,295 68,365 68,065 67,615 67,515 68,295 67,515 62,645 70,470 70,340 70,240 69,750 69,750 70,470 69,750 64,800 1 See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ FEDERAL RESERVE BANKS; BANK DEBITS A 13 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 June 26 June 19 June 12 June 5 May 29 June 30 May 31 June 30 Loans—Total........... 2,979 2,486 3,155 2,711 4,710 3,209 3,298 1,771 Within 15 days.... 2,937 2,421 3,063 2,639 4,644 3,157 3,210 1,689 16 days to 90 days. 42 65 92 72 66 52 82 91 days to 1 year.. Acceptances—Total.. 257 95 396 100 350 304 373 66 Within 15 days.. .. 181 25 335 29 264 225 295 18 16 days to 90 days. 76 70 61 71 86 79 78 48 91 days to 1 year.. U.S. Government securities—Total. 80,472 79,734 79,929 77,038 81,931 80,484 81,395 75,022 Within 15 days1............................. 6,855 4,402 7,167 2,593 7,882 4,802 5,397 3,832 16 days to 90 days......................... 23,372 24,106 21,436 22,930 23,429 25,150 25,065 19,662 91 days to 1 year........................... 20,539 21,520 21,620 21,809 21,009 20,697 21,227 13,612 Over 1 year to 5 years................... 19,879 19,879 19,879 19,879 19,853 19,914 19,879 26,956 Over 5 years to 10 years................ 7,867 7,867 7,867 7,867 7,836 7,945 7,867 9,358 Over 10 years................................. 1,960 1,960 1,960 1,960 1,922 1,976 1,960 1,602 Federal agency obligations—Total. 3,083 2,549 3,060 2,621 3,322 3,128 3,263 1,449 Within 15 days1........................... 538 4 510 72 772 275 714 16 days to 90 days....................... 55 55 60 49 47 57 46 56 91 days to 1 year.......................... 333 333 333 312 312 397 312 332 Over 1 year to 5 years................. 1,100 1,100 1,100 1,071 1,074 1,274 1,074 561 Over 5 years to 10 years.............. 703 703 703 746 746 754 746 284 Over 10 years............................... 354 354 354 371 371 371 371 216 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—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.............................. r17,224.5 7,381.4 4,282.4 '9,843.1 '5,560.8 102.6 247.5 111.7 71.3 55.8 Aug.............................. '17,888.9 7,744.6 4,318.2 '10,144.3 '5,826.0 106.2 252.5 113.6 73.6 58.4 Sept.............................. '17,918.7 8,025.3 4,195.7 '9,893.3 '5,697.6 107.4 266.4 111.6 72.4 57.5 Oct................................ '18,394.4 8,137.2 4,418.0 '10,257.2 '5,839.1 109.5 265.3 116.4 74.7 58.8 Nov.............................. '19,049.5 8,437.9 4,519.8 '10,611.6 '6,091.7 113.2 274.9 118.6 77.1 61.2 Dec............................... '18,641.3 8,097.7 4,462.8 '10,543.6 '6,080.8 110.2 269.8 115.0 75.8 60.6 1974—Jan................................ 18,815,7 8,081.0 4,517.1 10,734.8 6,217.6 111.5 270.3 116.2 77.3 62.2 Feb............................... 19,813.6 8,896.2 4,582.1 10,917.4 6,335.3 118.0 294.2 119.9 79.3 63.7 Mar.............................. '20,166.8 8,914.4 4,718.0 '11,252.5 '6,534.5 118.2 292.5 120.8 80.3 64.7 Apr............................... '20,062.1 8.637.9 '4,747.6 '11,424.2 '6,676.6 '115.4 274.6 '119.7 '80.2 '65.0 May............................. 20,525.4 8,970.1 4,788.7 11,555.3 6,766.5 116.7 275.3 120.9 80.7 65.3 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 MONEY STOCK □ JULY 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 M3 Mi M2 Mi Composition of measures is described in the Note below. 1971—De c 235.2 473.0 727.9 241.9 477.9 730.9 1972—De c 255.7 525.5 822.8 263.0 530.6 826.2 1973—Jun e 265.5 549.5 862.6 263.6 548.9 863.6 July........ 266.4 552.1 867.1 265.7 551.1 867.6 Aug........ 266.3 555.1 870.7 263.0 551.3 866.6 Sept........ 265.5 556.8 873.5 264.0 554.4 870.0 Oct......... 266.6 561.9 880.3 266.1 560.1 877.2 Nov........ 269.2 567.3 887.7 270.9 565.7 884.0 Dec......... 271.4 572.1 894.8 279.1 577.2 898.4 1974—Ja n 270.8 575.4 900.4 278.1 581.4 905.9 Feb......... 273.7 581.9 909.0 270.8 579.3 906.3 Mar........ 276.2 586.2 915.8 273.5 585.7 916.5 Apr......... 278.1 590.2 921.5 279.6 594.6 927.7 May....... 279.2 592.8 924.9 274.5 590.9 923.9 Junep__ 280.9 597.4 930.9 278.8 596.9 932.0 Week ending— 1974—June 5. 281.2 596.9 278.2 596.4 12. 280.9 597.2 279.6 598.0 19p 281.5 598.6 280.3 598.8 26p 280.4 597.4 276.5 594.2 July 3? 281.2 598.4 280.8 599.0 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 M3: M2 plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see “Revision of the Money Stock Meas­ commercial banks. ures and Member Bank Deposits” on pp. 81-95 of the Feb. 1974 Bulletin M2: Averages of daily figures for Mi plus savings deposits, time de­ and “Announcements” on p. 470 of the June 1974 Bulletin. 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's1 Other Total ber nonmember 1971—De c 52.6 182.6 33.0 237.9 270.9 254.8 53.5 188.4 142.6 44.1 33.8 236.0 269.8 253.0 6.9 1972—De c 56.9 198.7 43.4 269.9 313.3 297.2 57.9 205.1 152.4 51.4 44.3 267.6 311.8 295.6 7.4 1973—Jun e 59.4 206.2 62.0 283.9 345.9 313.1 59.4 204.1 149.1 52.4 59.3 285.3 344.7 314.7 7.1 July............. 59.5 206.9 63.9 285.7 349.6 315.0 60.0 205.7 149.7 53.2 62.3 285.4 347.8 316.5 6.5 Aug............. 59.8 206.4 66.3 288.8 355.1 315.6 60.0 202.9 147.8 52.7 68.4 288.3 356.7 315.3 4.1 Sept............. 60.2 205.3 66.7 291.4 358.0 316.7 60.1 203.8 148.2 53.3 68.8 290.5 359.3 315.6 5.3 Oct.............. 60.5 206.1 63.8 295.3 359.1 318.5 60.4 205.7 149.7 53.8 66.3 294.0 360.3 317.0 6.0 Nov............. 61.0 208.2 62.0 298.1 360.1 320.4 61.5 209.5 151.8 55.1 64.1 294.8 359.0 318.3 4.3 Dec.............. 61.7 209.7 62.8 300.6 363.5 322.7 62.7 216.4 157.0 56.6 64.1 298.1 362.2 321.2 6.3 1974—Ja n 61.9 208.9 65.5 304.6 370.1 325.0 61.6 216.5 156.4 57.1 66.1 303.4 369.4 324.5 8.0 Feb.............. 62.7 211.1 66.6 308.2 374.8 327.1 61.9 209.0 151.2 55.2 65.9 308.5 374.4 326.9 6.6 Mar............. 63.4 212.9 67.7 310.0 377.7 329.6 62.7 210.8 152.5 55.5 67.0 312.2 379.2 330.8 6.3 Apr.............. 64.0 214.1 75.4 312.1 387.4 331.4 63.6 216.1 156.0 57.3 72.4 314.9 387.3 333.2 6.0 Mayp.......... 64.5 214.8 81.2 313.6 394.7 332.1 64.2 210.2 151.5 56.0 77.8 316.4 394.2 333.1 7.5 JuneP.......... 64.8 216.0 83.4 316.6 400.0 333.4 64.9 213.9 153.6 57.3 79.8 318.2 397.9 335.0 6.2 Week ending— 1974—June 5.... 64.6 216.7 81.9 315.7 397.6 64.6 213.6 153.9 56.8 79.2 318.2 397.4 4.2 12.... 65.0 216.0 82.5 316.2 398.7 65.3 214.3 153.9 57.6 79.6 218.4 398.1 3.7 19*>... 64.9 216.7 83.5 317.0 400.5 65.0 215.3 154.2 57.7 79.2 318.5 397.7 6.7 26p... 64.8 215.6 84.1 317.1 401.2 64.4 212.1 152.3 57.0 80.2 317.7 397.8 7.9 July 3p. .. 64.9 216.3 85.3 317.2 402.5 65.3 215.5 155.1 57.6 81.1 318.2 399.3 8.7 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

JULY 1974 □ BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves,S.A.i 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—Dec.. .. 29.19 28.86 28.95 27.10 321.3 178.8 136.1 6.5 325.2 178.1 141.1 6.0 332.9 336.8 1971—Dec___! 31.30 31.17 31.12 28.96 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972—Dec___ 31.41 30.36 31.13 29.05 1 402.0 241.4 154.5 6.1 406.8 240.7 160.1 6.1 406.4 411.2 1973—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.. .. i 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----j 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.... 1 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 j 442.2 279.0 158.3 4.9 447.5 278.5 164.0 5.0 449.6 454.9 1974—Jan . .. j 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 33.63 34.81 33.12 450.4 287.9 158.8 3.7 450.4 288.6 156.9 4.9 459. 1 459.1 Apr. 35.90 34.17 35.72 33.66 461.6 297.1 160.0 4.5 462.5 296.2 161.5 4.8 471.2 472.1 May. . . i 36.52 33.93 36.35 34.27 467.0 304.2 159.1 3.8 464.7 303.0 155.6 6.1 477.8 475.4 June*\.. | 36.72 33.72 36.53 34.79 472.8 308.6 160.4 3.8 469.9 306.4 158.8 4.7 483.0 480.2 1 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in­ 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as “the ad­ Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy.” Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. Note.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of the Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments1 Total 1 l s o o a l n d s 2 Total l P o l a u n s s T u re r a y s­ Other4 ments 1 Total 1 l s o o a l n d s 2 Total l P o l a u n s s Tr u e r a y s­ Other4 sold 2 sold 2 1968—Dec. 31___ 390.2 258.2 95.9 60.7 71.3 400.4 264.4 98.4 64.5 71.5 1969—Dec. 315.... 401.7 279.1 283.0 105.7 108.3 51.5 71.1 412.1 286.1 290.0 108.4 111.0 54.7 71.3 1970—Dec. 31___ 435.5 291.7 294.7 110.0 112.1 57.9 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31___ 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31___ 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—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 56.4 124.7 619.9 440. 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. 30p. . . 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. 24p... 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 May 29 p... 668.6 478.0 483.7 171.9 175.0 56.7 133.9 665.1 476.9 482.5 171.3 174.4 53.6 134.6 June 30*.. . 673.3 480.8 486.2 173.9 176.8 57.1 135.4 677.3 488.0 493.4 176.5 179.4 52.8 136.5 1 Adjusted to exclude domestic commercial interbank loans. See also net of valuation reserves as was done previously. Fora description of the note 3. revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in above table 2 Loans sold are those sold outright by commercial banks to own sub­ have been revised to include valuation reserves. sidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1972, commercial and industrial loans were re­ Note.—Total loans and investments: For monthly data, Jan. 1959— duced by about $400 million as a result of loan reclassifications at one June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, large bank. Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current 4 Beginning June 30, 1971, Farmers Home Administration insured notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaling approximately $700 million are included in “Other securities” the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: rather than in “Loans.” For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. 5 ®e8H}ning 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 □ JULY 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 Times ury 2 counts4 U.S. Govt. Other Last-Wednesday-of-month series 6 All commercial banks: 1941-—Dec. 31... 50,746 21,714 21,808 7,225 26.551 79,104 71,283 10,982 44,349 15,952 23 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 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972-—Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973-—June 30... 635,756 456,780 57,877121,099103,608 769,908 629,215 31,047 5,590 10,434 236,953 345,191 49,299 55,740 14,046 July 25... 634,730 456,620 56,450121,660 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 54,910123,320 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 55,080124,790100,030 779,730 630,360 27,720 7,190 8,210 228,420 358,820 56,280 55,620 14,102 Oct. 31.. . 654,390 471,340 56,010127,040111,720 800,760 646,030 32,830 6,820 5,680 241,130 359.570 60,620 56,510 14,134 Nov. 28... 659,280 475,010 57,770126,500104,140 797,180 638,740 30,130 7,010 4,350 238,540 358,710 62,870 56,730 14,163 Dec. 31.. . 683,799 494,947 58,277130,574118,276 835,224 681,847 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?.. 694,660 504,560 56,060134,040101,770 833,340 665,970 30,870 7,290 5,850 235,460 386,500 67,320 59,590 14,261 May 29?.. 697,970 509,780 53,630134,560114,585 850,625 678,265 34,070 8,200 5,880 237,265 392,850 69,560 59,870 14,290 June 26?.. 707,070 518,830 52,350135,890104,900 851,560 678,150 30,480 8,860 8,070 237,080 393,660 68,720 60,090 14,290 Membersof 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-—June 30... 490,533 360,908 41,080 88,545 88,227 604,414 486,770 29,311 4,879 8,167 182,439 261,975 46,529 43,098 5,705 July 25... 489,240 360,813 39,331 89,096 82,091 597,607 478,417 27,121 5,121 5,423 175,351 265,401 48,761 42,539 5,707 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 4,601 185,324r271,931 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. 27.. . 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.. . 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... 535,917 399,092 39,273 97,552 87,005 653,285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 5,763 May 29... 538,801 403,619 37,282 97,900 99,155 669,357 524,837 32,452 7,274 4,746 182,060 298,305 64,820 46,090 5,763 June 26?.. 546,777 411,334 36,214 99,229 90,089 669,578 524,101 28,961 7,928 6,282 181,957 298,973 64,270 46,280 5,763 Call date series Insured banks: Total : 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 I0I 54 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 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 57,961 129,625116,266 827,081 677,358 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 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 I960—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 sse p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 assets 3 bilities row­ capital ber insurance Total Loa l ns T U re .S as . ­ Oth 2 er ca a a p n c i d ­ tal Total3 m D a e n ­ d Time Demand Tim 5 e ings co a u c n ­ ts ba o n f ks ury counts 4 U.S. Govt. Other Call date series 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 29,176 150,697 123,186 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 26,891 155,017 123,016 12,671 2,005 1,986 45,322 61,032 12,725 11,231 1,076 Oct. 17... . 125,715 95,056 30,659 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. 31... . 108,527 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 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16,562154,085 134,091 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 18,177 179,480 155,165 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 □ JULY 1974 ASSETS BY CLASS OF BANK, DECEMBER 31, 1973 (Amounts in millions of dollars) Member banks * All Insured Account commercialcommercial Large banks Non­ banks banks member Total All other banks 1 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 United States........ 31,298 30,026 18,602 5,061 252 4,097 9,191 12,696 Other balances with banks in United States............ 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 on securities to brokers and dealers.............. 7,674 7,625 7,498 4,883 1,054 1,343 217 176 Other loans for 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 1,926 267 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 32,542 247,422 256,302 179,480 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

JULY 1974 o 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 commercialcommercial 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 United States............................ 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 Savings deposits................................................................ 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 United States............................ 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 sold under agreements to repurchase............................................... 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 subsidiaries . . • 6 5 3 2 1 3 Total reserves on loans/securities...................................... 7,806 7,790 6,417 1,412 425 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 □ JULY 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. i Other To brokers For pui •chasing and dealers or carryinjI 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 June 6............. 341,398 12,967 11,685 779 207 296 248,341 103,381 3,202 564 5,847 223 2,915 8,439 15,784 13............. 343,301 13,386 10,799 2,026 207 354 249,911 103,687 3,236 1,462 5,841 210 2,946 8,203 15,709 20............. 344,169 12,648 11,468 673 260 247 252,129 105,004 3,279 561 5,744 208 2,933 8,764 16,105 27............. 344,157 12,047 10,794 796 258 199 252,740 104,812 3,304 887 5,687 210 2,916 8,615 16,282 1974 May 1............... 388,389 16,542 14,947 956 271 368 286,830 121,349 3,800 436 5,079 123 2,788 9,632 20,109 8............. 385,361 15,072 13,497 938 262 375 285,026 121,447 3,791 335 4,589 124 2,775 9,348 19,951 15............. 386,489 15,701 14,001 974 342 384 285,911 121,497 3,795 393 4,742 117 2,762 9,180 20,194 22............. 385,682 15,647 12,688 1,924 464 571 286,067 121,027 3,784 1,053 4,775 133 2,773 8,986 20,157 29.............. 385,211 15,254 13,387 1,025 402 440 286,205 120,888 3,794 337 4,737 122 2,739 9,437 20,287 June 5p........... 390,970 18,823 15,441 2,014 686 682 287,675 120,735 3,759 1,544 4,937 125 2,701 9,457 20,451 12*........... 390,049 16,960 13,901 1,985 512 562 287,457 121,488 3,760 602 5,006 129 2,699 9,319 20,355 \9p............... 390,562 15,309 13,201 905 581 622 290,516 122,960 3,871 672 5,108 129 2,680 9,913 20,849 26p....... 391,777 16,174 14,055 967 552 600 291,492 123,575 3,843 507 4,706 127 2,686 9,876 20,975 New York City 1973 June 6............. 72,133 2,170 1,972 103 95 57,058 29,162 73 455 3,394 58 637 2,470 5,142 13.............. 72,513 1,552 1,311 103 138 58,101 29,343 71 1,352 3,405 49 662 2,347 5,109 20............. 73,455 2,089 1,909 93 87 58,445 29,956 72 452 3,299 48 662 2,759 5,274 27............... 73,097 1,968 1,925 33 5 58,501 29,758 72 799 3,312 48 651 2,572 5,265 1974 May 1............... 85,767 2,869 2,862 68,712 34,878 153 337 3,057 32 596 3,546 7,040 8............... 82,992 1,468 1,449 10 67,198 34,841 149 260 2,643 33 594 3,261 6,979 15............... 84,291 2,507 2,479 19 67,620 34,931 147 320 2,861 28 578 3,130 7,093 22............... 83,698 1,919 1,909 10 68,055 34,770 144 983 2,896 37 553 3,007 7,116 29............... 83,353 1,642 1,603 39 67,989 34,944 141 272 2,843 28 561 3,248 7,171 June 5p............ 85,219 1,798 1,720 38 69,326 34,735 138 1,445 2,989 28 558 3,241 7,303 12*............. 85,784 1,707 1,677 21 68,931 35,156 146 538 2,970 28 565 3,185 7,316 19p............... 86,289 1,257 1,144 104 70,145 35,875 145 535 3,064 28 562 3,538 7,605 26p............. 87,300 2,233 2,163 64 70,641 36,426 138 423 2,768 26 562 3,487 7,624 Outside New York City 1973 June 6............. 269,265 10,797 9,713 676 207 201 191,283 74,219 3,129 109 2,453 165 2,278 5,969 10,642 13............. 270,788 11,834 9,488 1,923 207 216 191,810 74,344 3,165 110 2,436 161 2,284 5,856 10,600 20............. 270,714 10,559 9,559 580 260 160 193,684 75,048 3,207 109 2,445 160 2,271 6,005 10,831 27.............. 271,060 10,079 8,869 763 253 194 194,239 75,054 3,232 88 2,375 162 2,265 6,043 11,017 1974 May 1............... 302,622 13,673 12,085 949 271 368 218,118 86,471 3,647 99 2,022 91 2,192 6,086 13,069 8............. 302,369 13,604 12,048 929 262 365 217,828 86,606 3,642 75 1,946 91 2,181 6,087 12,972 15............. 302,198 13,194 11,522 965 342 365 218,291 86,566 3,648 73 1,881 89 2,184 6,050 13,101 22.............. 301,984 13,728 10,779 1,924 464 561 218,012 86,257 3,640 70 1,879 96 2,220 5,979 13,041 29.............. 301,858 13,612 11,784 1,025 402 401 218,216 85,944 3,653 65 1,894 94 2,178 6,189 13,116 June 5p............ 305,751 17,025 13,721 2,006 654 644 218,349 86,000 3,621 99 1,948 97 2,143 6,216 13,148 12p............ 304,265 15,253 12,224 1,976 512 541 218,526 86,332 3,614 64 2,036 101 2,134 6,134 13,039 19*>............ 304,273 14,052 12,057 896 581 518 220,371 87,085 3,726 137 2,044 101 2,118 6,375 13,244 26p............ 304,478 13,941 11,892 961 552 536 220,851 87,149 3,705 84 1,938 101 2,124 6,389 13,351 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ 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 y*> 5 yrs. 5 yrs. tic Large banks— Total 1973 49,314 3,214 4,840 29,810 1,271 19,537 24,263 4,505 3,976 12,967 2,815 .........................June 6 49,618 3,227 5,036 29,944 1,314 19,478 24,267 4,472 3,950 12,999 2,846 ...................................13 49,902 3,409 5,184 30,157 1,329 19,550 23,916 4,184 3,920 12,978 2,834 ...................................20 50,121 3,390 5,161 30,357 1,335 19,663 23,836 4,039 3,956 13,011 2,830 ...................................27 1974 56,797 4,194 6,367 33,237 1,873 21,046 22,960 2,690 4,284 11,954 4,032 .........................May 1 56,900 4,063 6,209 33,260 1,839 20,395 22,847 2,669 4,282 11,910 3,986 ................................... 8 57,220 4,040 6,191 33,334 1,900 20,546 22,262 2,349 3,361 12,545 4,007 ...................................15 57,375 4,111 6,457 33,416 1,877 20,143 22,186 2,400 3,680 12,187 3,919 ...................................22 57,512 4,127 6,328 33,508 1,898 20,491 21,850 2,120 3,573 12,265 3,892 ...................................29 57,585 4,081 6,453 33,562 1,859 20,426 22,316 2,727 3,654 11,960 3,975 .........................June 5* 57,809 4,047 6,212 33,663 1,832 20,536 22,123 2,485 3,753 11,893 3,992 ...................................12* 58,082 3,931 6,263 33,796 1,881 20,381 21,800 2,218 3,716 11,896 3,970 ...................................19* 58,183 4,034 6,365 33,915 1,966 20,734 20,982 1,531 3,653 11,856 3,942 ...................................26* New York City 1973 5,368 1,164 2,184 2,224 701 4,026 4,368 1,568 558 1,594 648 .........................June 6 5,404 1,151 2,313 2,234 718 3,943 4,292 1,346 586 1,651 709 ...................................13 5,466 1,118 2,447 2,254 732 3,906 4,279 1,323 581 1,661 714 ...................................20 5,489 1,215 2,385 2,271 717 3,947 4,050 1,139 552 1,667 692 ...................................27 1974 6,539 1,436 2,962 2,349 811 4,976 4,116 502 597 1,750 1,267 .......................May 1 6,578 1,453 2,803 2,358 786 4,460 3,919 308 596 1,718 1,297 ................................... 8 6,647 1,447 2,708 2,357 798 4,575 3,727 68 351 2,003 1,305 .................................15 6,684 1,507 2,929 2,376 743 4,310 3,607 54 393 1,897 1,263 ...................................22 6,716 1,567 2,890 2,386 738 4,484 3,598 37 392 1,909 1,260 ...................................29 6,713 1,509 3,002 2,400 746 4,519 3,644 88 395 1,911 1,250 .......................June 5* 6,767 1,620 2,810 2,420 771 4,639 3,907 263 451 1,932 1,261 ...................................12* 6.832 1,528 2,929 2,436 792 4,276 3,809 141 432 1,958 1,278 ..................................19* 6.832 1,595 2,907 2,444 789 4,620 3,356 -243 378 1,949 1,272 .................................26* Outside New York City 1973 43,946 2,050 2,656 27,586 570 15,511 19,895 2,937 3,418 11,373 2,167 .......................June 6 44,214 2,076 2,723 27,710 596 15,535 19,975 3,126 3,364 11,348 2,137 .................................13 44,436 2,291 2,737 27,903 597 15,644 19,637 2,861 3,339 11,317 2,120 .................................20 44,632 2,175 2,776 28,086 618 15,716 19,786 2,900 3,404 11,344 2,138 .................................27 1974 50,258 2,758 3.405 30,888 1,062 16,070 18,844 2,188 3,687 10,204 2,765 .......................May 1 50,322 2,610 3.406 30,902 1,053 15,935 18,928 2,361 3,686 10,192 2,689 ................................. 8 50,573 2,593 3,483 30,977 1,102 15,971 18,535 2,281 3,010 10,542 2,702 .................................15 50,691 2,604 3,528 31,040 1,134 15,833 18,579 2,346 3,287 10,290 2,656 .................................22 50,796 2,560 3,438 31,122 1,160 16,007 18,252 2,083 3,181 10,356 2,632 .................................29 50,872 2,572 3,451 31,162 1,113 15,907 18,672 2,639 3,259 10,049 2,725 .......................June 5* 51,042 2,427 3,402 31,243 1,061 15,897 18,216 2,222 3,302 9,961 2,731 .................................12* 51,250 2,403 3,334 31,360 1,089 16,105 17,991 2,077 3,284 9,938 2,692 .................................19* 51,351 2,439 3,458 31,471 1,177 16,114 17,627 1,655 3,335 9,967 2,670 .................................26* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ JULY 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 I Wednesday and and process with rency with sidiar­ Other total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants3 other partici­ other5 pation4 Large banks— Total 1973 June 6.......................... 55,827 8,400 38,083 1,545 7,799 27,769 20,879 3,768 10,142 1,263 19,761 424,980 13........................... 55,737 8,123 38,034 1,578 8,002 28,278 18,081 4,163 9,804 1,261 19,490 424,378 20........................... 55,476 7,982 38,044 1,575 7,875 29,158 21,543 4,147 9,909 1,268 19,574 429,768 27........................... 55,534 7,900 37,980 1,636 8,018 27,012 18,362 4,304 9,788 1,272 19,881 424,776 1974 May 1........................... 62,057 7,621 40,939 2,392 11,105 35,137 22,283 4,269 10,468 1,515 24,000 486,061 8........................... 62,416 7,680 41,393 2,385 10,958 30,485 22,910 4,131 11,240 1,542 23,784 479,453 15........................... 62,615 7,801 41,338 2,433 11,043 36,430 24,226 4,370 12,980 1,551 23,959 490,005 22.......................... 61,782 7,490 40,995 2,384 10,913 31,399 19,902 4,453 12,865 1,559 23,522 479,382 29........................... 61,902 7,483 40,905 2,394 11,120 35,680 26,076 4,692 12,340 1,566 24,268 489,833 June 5*......................... 62,156 7,505 40,931 2,397 11,323 32,299 21,271 4,052 12,134 1,588 24,920 487,234 \2p................................ 63,509 8,007 41,406 2,508 11,588 32,446 24,666 4,494 10,526 1,571 25,022 488,774 19*......................... 62,937 7,511 41,333 2,519 11,574 32,243 21,214 4,566 11,076 1,583 24,362 485,606 26*......................... 63,129 7,384 41,312 2,525 11,908 31,909 22,880 4,684 10,994 1,675 25,105 489,024 New York City 1973 June 6........................... 8,537 2,075 4,614 357 1,491 8,285 5,232 478 4,246 597 6,469 97,440 13........................... 8,568 2,077 4,602 356 1,533 8,420 4,593 490 4,120 595 6,212 96,943 20........................... 8,642 2,101 4,714 348 1,479 8,944 5,757 487 4,316 600 6,243 99,802 27........................... 8,578 2,097 4,589 368 1,524 8,619 4,439 500 4,140 604 6,402 97,801 1974 May 1........................... 10.070 2,138 5,378 543 2,011 12,157 6,166 481 4,111 710 7,325 116,717 8........................... 10,407 2,152 5,709 545 2,001 11,485 7,385 504 5,516 725 7,280 115,887 15........................... 10,437 2,142 5,688 541 2,066 13,072 7,100 486 6,891 723 7,431 119,994 22........................... 10,117 2,036 5,532 539 2,010 11,913 4,657 503 7,095 731 7,086 115,683 29........................... 10,124 2,017 5,469 551 2,087 13,286 9,186 510 6,251 731 7,489 120,806 June 5*........................... 10,451 2,240 5,582 554 2,075 10,812 6,423 494 6,207 744 7,754 117,653 12*......................... 11,239 2,692 5,770 607 2,170 11,424 8,486 508 4,985 725 7,953 119,865 19 v......................... 11,078 2,472 5,796 603 2,207 10,753 5,914 513 5,170 736 7,341 116,716 26*......................... 11.070 2,371 5,787 635 2,277 11,673 8,037 514 5,127 740 7,596 120,987 Outside New York City 1973 June 6........................... 47,290 6,325 33,469 1,188 6,308 19,484 15,647 3,290 5,896 666 13,292 327,540 13........................... 47,169 6,046 33,432 1,222 6,469 19,858 13,488 3,673 5,684 666 13,278 327,435 2 0 5,881 33,330 1,227 6,396 20,214 15,786 3,660 5,593 668 13,331 329,966 27........................... 5,803 33,391 1,268 6,494 18,393 13,923 3,804 5,648 668 13,479 326,975 1974 May 1........................... 5,483 35,561 1,849 9,094 22,980 16,117 3,788 6,357 805 16,675 369,344 8........................... 5,528 35,684 1,840 8,957 19,000 15,525 3,627 5,724 817 16,504 363,566 15........................... 5,659 35,650 1,892 8,977 23,358 17,126 3,884 6.089 828 16,528 370,011 22........................... 5,454 35,463 1,845 8,903 19.486 15,245 3,950 5,770 828 16,436 363,699 29........................... 5,466 35,436 1,843 9,033 22,394 16,890 4,182 6.089 835 16,779 369,027 June 5p......................... 5,265 35,349 1,843 9,248 21.487 14,848 3,558 5,927 844 17,166 369,581 12*......................... ) 5,315 35,636 1,901 9,418 21,022 16,180 3,986 5,541 846 17,069 368,909 19*......................... > 5,039 35,537 1,916 9,367 21,490 15,300 4,053 5,906 847 17,021 368,890 26*......................... > 5,013 35,525 1,890 9,631 20,236 14,843 4,170 5,867 935 17,508 368,037 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ WEEKLY REPORTIN § AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States Certi­ and fied polit­ and Total6 ical Mutual Com­ offi­ sub­ sav­ Govts., mer­ cers’ Sav­ Other divi­ ings etc. 2 cial checks ings sions banks 148, 776 1,135 3,349 6,066 180,008 58,361 86,550 22,232 149, 722 893 3,345 5,509 180,235 58,290 86,870 21,917 153, 700 859 3,578 5,901 178,796 58,204 86,017 21,506 149, 733 841 3,392 5,681 179,960 58,253 87,228 21,432 166, 774 1,449 4,692 8,597 203,690 57,830 106,216 24,921 156, 700 1,368 4,777 7,045 205,601 57,926 107,797 25.053 164, 675 1,310 4,786 7,791 206,597 57,868 108,757 25.053 155, 659 1,075 4,897 8,395 208,783 57,867 110,319 25,397 161, 657 1,114 4,862 6,939 209,559 57,844111,056 25,466 157, 687 1,899 5,056 7,944 209,454 57,929 111,166 24,995 156, 671 1,431 4,729 6,666 209,896 57,853 111,597 24,635 159. 629 1,360 4,682 6,637 209,425 57,780 111,111 24,410 158; 651 1,220 4,759 6,873 210,561 57,885 111,865 24,364 38. 396 930 2,350 2,553 32,299 5,346 18,685 1,720 38! 366 729 2,388 2,052 32,439 5,336 18,561 1,766 40; 334 710 2,590 2,398 31,944 5,311 18,250 1,657 39; 372 682 2,408 2,338 32,305 5,323 18,565 1,664 47, 394 1,216 3,424 4.600 38,060 5.061 22,925 1,683 45; 361 1,167 3,432 3,707 38,642 5,064 23,372 1,686 48; 335 1,103 3,549 4,289 39,139 5.073 23,601 1,809 46; 357 888 3,628 5,196 40,032 5.062 24,238 1,831 48; 328 887 3,467 3,672 40,409 5,067 24.560 1,823 45, 359 1,652 3,800 4,293 40,521 5.073 24.561 1,808 44; 342 1,226 3,440 3,381 40,489 5.056 24,544 1,601 44; 319 1,145 3,435 3,396 40,468 5,037 24,310 1,620 45; 332 1,019 3,497 3,703 41,264 5.056 24,734 1,712 110. 380 205 999 3,513 147,709 53,015 67,865 20,512 111. 356 164 957 3,457 147,796 52,954 68,309 20,151 113; 366 149 988 3,503 146,852 52,893 67,767 19,849 110; 361 159 984 3,343 147,655 52,930 68,663 19,768 118 380 233 1,268 3,997 165,630 52,769 83,291 23,238 111 339 201 1,345 3,338 166,959 52,862 84,425 23,367 115 340 207 1,237 3,502 167,458 52,795 85,156 23,244 108 302 187 1,269 3,199 168,751 52,805 86,081 23,566 113 329 227 1,395 3,267 169,150 52,777 86,496 23,643 112 328 247 1,256 3,651 168,933 52,856 86,605 23,187 111 329 205 1,289 3,285 169,407 52,797 87,053 23,034 114 310 215 1,247 3,241 168,957 52,743 86,801 22,790 112 319 201 1,262 3,170 169,297 52,829 87,131 22,652 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ JULY 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 deposits11 ties of pur­ F.R. ties, Secur­ loans invest­ mand banks chased, Banks Others etc. 8 ities (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed i0 Total to to foreign justed9 lPC’s others bran­ ches Large banks— Total 1973 June 6...................... 39,933 514 3,279 17,186 4,467 30,542 246,409 326,499 97,876 59,033 39,070 19,963 940 13...................... 37,723 1,347 3,100 17,193 4,475 30,569 249,271 329,275 99,275 59,462 39,345 20,117 1,266 20...................... 39,541 1,393 3,402 17,637 4,477 30,514 249,900 329,292 98,265 58,217 38,410 19,807 1,242 21...................... 37,077 1,117 3,840 17,742 4,488 30,544 250,603 329,973 97,924 59,258 39,462 19,796 1,521 1974 May 1........................ 50,142 1,366 6,039 19,848 5,039 32,922 284,231 369,248 102,020 74,288 51,650 22,638 2,709 8...................... 51,132 1,487 6,497 19,840 5,032 32,980 282,538 367,801 98,142 75,979 52,967 23,012 3,025 15...................... 50,733 3,004 6,575 20,712 5,020 32,908 283,571 368.448 99,443 76,879 53,788 23,091 3,080 22...................... 47,583 2,349 6,542 20,527 5,035 32,883 284,915 368,883 98,532 78,837 55,193 23,644 3,418 29...................... 50,241 3,968 6,203 20,879 5,038 32,812 283,945 367,697 96,753 79,584 55,890 23,694 2,988 June 5*.................... 51,998 2,092 6,353 21,265 5,052 33,072 286,976 371.448 100,788 79,160 55,658 23,502 2,813 12*.................... 54,929 2,658 5,970 20,865 5,061 33,090 286,469 372,101 100,558 79,647 55,991 23,656 2,410 19*.................... 49,474 1,988 6,267 21,028 5,060 33,006 288,693 373,430 99,024 79,154 55,375 23,779 2,503 26*.................... 51,325 2,341 6,358 21,861 5,065 32,978 289,577 373,688 100,528 80,176 56,015 24,161 3,388 New York City 1973 June 6...................... 9,327 1,561 6,307 1,280 7,721 56,092 68,997 20,915 19,142 12,877 6,265 556 13...................... 9,111 125 1,420 6,344 1,286 7,717 57,101 70,051 20,284 19,197 12,719 6,478 962 20...................... 10,191 200 1,531 6,494 1,287 7,704 57,507 70,428 20,846 18,730 12,343 6,387 957 27...................... 8,555 1,888 6,802 1,292 7,689 57,329 69,957 20,411 19,037 12,658 6,379 1,264 1974 May 1........................ 10,706 2,730 7,283 1,399 8,562 67,283 81,469 23,712 23,452 15,936 7,516 1,801 8...................... 11,718 645 2,823 6,5 1,401 8,592 65,764 80,090' 20,983 24,007 16,389 7,618 1,666 15...................... 11,353 870 2,789 7,313 1,396 8,590 66,201 80,365 21,479 24,434 16,579 7,855 1,589 22...................... 9,001 2,711 7,022 1,406 8,561 66,558 80,282 22,076 25,244 17,182 8,062 1,956 29...................... 11,285 1,425 2,583 7,102 1,415 8,549 66,461 80,183 20,575 25,598 17,511 8,087 1,454 June 5*.................... 11,678 2,571 7,424 1,419 8,648 67,895 ' 23,328 25,528 17,379 8,149 1,405 12*.................... 14,966 300 2,424 7,270 1.423 8,633 67,341 21,756 25,437 17,352 8,085 1,192 19*.................... 11,533 2,615 7,086 1,421 8,613 68,730 21,869 25,393 17,058 8,335 1,236 26*.................... 13,253 ‘220 2,579 7,739 1.424 8,600 69,116 83,541 22,643 25,980 17,372 8,608 1,893 Outside New York City 1973 June 6. 30,606 514 1,718 10,879 3,187 22,821 190,317 : 76,961 39,891 26,193 13,698 384 13. 28,612 1,222 1,680 10,849 3.189 22,852 192,080 78,991 40,265 26,626 13,639 304 20. 29,350 1,193 1,871 11,143 3.190 22,810 192,393 ■ 77,419 39,487 26,067 13,420 285 27. 28,522 1,117 1,952 10,940 3,196 22,855 193,275 > 77,513 40,221 26,804 13,417 257 1974 May 1. 39,436 1,366 3,309 12,565 3.640 24,360 216,948 » 78,308 50,836 35,714 15,122 908 8. 39,414 842 3,674 12,960 3,631 24,388 216,774 287,711 77,159 51,972 36,578 15,394 1,359 15. 39,380 2,134 3,786 13,399 3,624 24,318 217,370 288,083 77,964 52,445 37,209 15,236 1,491 22. 38,582 2,349 3,831 13,505 3,629 24,322 218,357 288,601 76,456 53,593 38,011 15,582 1,462 29. 38,956 2,543 3,620 13,777 3,623 24,263 217,484 ► 76,178 53,986 38,379 15,607 1,534 June 5*............................ 40,320 2,092 3,782 13,841 3,633 24,424 219,081 1 77,460 53,632 38,279 15,353 1,408 12*. 39,963 2,358 3,546 13,595 3.638 24,457 219,128 I- 78,802 54,210 38,639 15,571 1,218 19*. 37,941 1,988 3,652 13,942 3.639 24,393 219,963 i 77,155 53,761 38,317 15,444 1,267 26*. 38,072 2,121 3,779 14,122 3.641 24,378 220,461 r 77,885 54,196 38,643 15,553 1,495 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1974 1974 1974 1973 1973 June June June June May 1st 2nd 26 19 12 5 29 June May Apr. II I IV half half Durable goods manufacturing: Primary metals................................. 1,865 1,856 1,855 1,858 1,899 -34 -15 21 -28 84 -247 56 -229 Machinery......................................... 8.519 8,575 8,378 8,208 8,156 363 7 409 779 1,069 136 1,848 615 Transportation equipment.............. 3,107 3,155 3,071 3,016 2,997 114 -56 175 233 358 90 591 362 Other fabricated metal products. . . 2,835 2,821 2,791 2,775 2,776 59 71 105 235 267 15 502 71 Other durable goods........................ 4,612 4,526 4,503 4,471 4,452 160 126 274 560 349 -363 909 -73 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,937 3,940 3,875 3,988 4,059 -122 -267 45 -344 124 340 -220 733 Textiles, apparel, and leather.......... 4,127 4,075 4,023 3,952 3,912 215 1 122 338 570 -440 908 -205 Petroleum refining........................... 1,283 1,279 1,312 1,337 1,495 -212 287 -7 68 -176 184 -108 203 Chemicals and rubber..................... 3,126 3,162 3,114 3,059 3,006 120 8 227 355 255 -198 610 -150 Other nondurable goods................. 2,483 2,457 2,406 2,387 2,363 120 6 96 222 116 -65 338 91 Mining, including crude petroleum and natural gas........................... 4,190 4,195 4,151 4,131 4,167 23 -94 145 74 312 -233 386 -156 Trade: Commodity dealers................. 1,568 1,535 1,565 1,565 1,657 -89 -305 -237 -631 357 630 -274 588 Other wholesale....................... 6,252 6,205 6,080 6,062 6,117 135 -7 238 366 471 151 837 194 Retail........................................ 7,169 7,158 6,978 6,972 7,046 123 118 315 556 540 -184 1,096 -19 Transportation..................................... 6,105 6,110 6,096 6,130 6,134 -29 69 -4 36 105 14 141 80 2,501 2,530 2,444 2,514 2,530 -29 102 253 326 149 -78 475 -91 Other public utilities........................... 6,917 6,610 6,505 6,369 6,373 544 397 390 1,331 -291 596 1,040 1,330 Construction......................................... 6,207 6,167 6,085 6,046 6,036 171 316 138 625 29 -200 654 11 Services................................................. 11,643 11,657 11,606 11,556 11,544 99 4 296 399 188 565 587 927 9,391 9,332 9,186 9,083 8,994 393 138 44 575 541 302 1,116 682 Bankers’ acceptances........................... 1,710 1,488 1,472 1,459 1,416 294 124 -44 374 62 199 436 -123 Foreign commercial and industrial loans.............................................. 4,683 4,686 4,671 4,598 4,478 205 132 168 505 105 23 610 -361 Total classified loans........................... 104,230 103,519 102,167 101,536101,607 2,623 1,162 3,169 6,954 5,584 1,237 12,538 4,480 Total commercial and industrial loans of large commercial banks.......... p123,575122,960 121,488 120,735 120,888 2,687 1,064 3,836 7,587 5,867 1,938 13,454 5,309 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 1974 Industry June May Apr. Mar. Feb. Jan. Dec. Nov. Oct. 1st 26 29 24 27 27 30 26 28 31 II I IV III half Durable goods manufactur­ ing : Primary metals................... 1,105 1,111 1,083 1,064 1,046 1,092 1,104 1,240 1,259 41 -40 -203 -21 1 Machinery.......................... 3,285 3,213 3,145 3,114 3,037 2,950 2,866 2,726 2,731 171 248 186 39 419 Transportation equipment. 1,410 '1,424 1,423 1,365 1,367 1,324 1,284 1,257 1,239 45 81 18 77 126 Other fabricated metal products......................... 954 960 934 911 911 938 894 912 901 43 17 23 2 60 Other durable goods.......... 2,107 2,012 1,972 1,915 1,837 1,737 1,772 1,754 1,795 192 143 -16 98 335 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,571 rl ,584 1,533 1,529 1,527 1,514 1,491 1,469 1,470 42 38 14 84 80 Textiles, apparel, and leather............................. 1,128 1,120 1,147 1,089 1,043 1,032 1,003 1,036 1,033 39 86 -25 59 125 Petroleum refining............. 963 954 934 945 901 920 933 839 883 18 12 13 44 30 Chemicals and rubber....... 1,737 1,686 1,690 1,603 1,569 1,570 1,561 1,509 1,534 134 42 9 71 176 Other nondurable goods. . 1,171 1,157 1,145 1,139 1,080 1,069 1,082 1,077 1,090 32 57 -18 37 89 Mining, including crude pe­ troleum and natural gas. 3,130 ''3,172 3,284 3,245 3,203 3,153 2,958 2,950 2,958 -115 287 -32 144 172 Trade: Commodity dealers. . 141 '144 144 140 129 137 127 135 120 1 13 11 -7 14 Other wholesale........ 1,408 '1,404 1,335 1,323 1,315 1,265 1,190 1,172 1,223 85 133 12 112 218 Retail......................... 2,420 2,514 2,543 2,480 2,376 2,249 2,206 2,227 2,175 -60 274 59 141 214 Transportation....................... 4,424 '4,474 4,414 4,417 4,311 4,327 4,320 4,208 4,220 7 97 41 -26 104 Communication..................... 1,032 1,033 978 966 940 947 860 828 819 66 106 2 73 172 Other public utilities............. 3,443 3,356 3,196 3,154 3,245 3,298 3,252 3,121 2,857 289 -98 416 427 191 Construction.......................... 2,131 '1,984 1,908 1,898 1,940 1,943 1,905 1,936 1,954 233 -7 -87 96 226 Services................................... 5,274 '5,263 5,223 5,076 5,004 4,937 5,049 4,916 4,777 198 27 330 157 225 All other domestic loans .... 3,022 '2,945 r2,935 2,808 2,384 2,692 2,602 2,617 2,552 214 206 17 384 420 Foreign commercial and in­ dustrial loans.................. 2,547 '2,396 '2,369 '2,350 2,321 2,469 2,334 2,306 2,308 197 '16 148 -399 213 Total loans............................. p44,403 '43,906 '43,335 '42,531 41,486 41,563 40,793 40,235 39,898 1,872 '1,738 918 1,592 3,610 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 d JULY 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 in in a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 1970—Sept................................................................................. 17.0 88.0 51.4 1.4 10.0 167.9 Dec.................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................. 18.3 86.3 54.4 1.4 10.5 170.9 June................................................................................ 18.1 89.6 56.2 1.3 10.5 175.8 Sept................................................................................. 17.9 91.5 57.5 1.2 9.7 177.9 Dec.................................................................................. 18.5 98.4 58.6 1.3 10.7 187.5 1972—June............................................................................... 17.9 97.6 60.5 1.4 11.0 188.4 Sept................................................................................. 18.0 101.5 63.1 1.4 11.4 195.4 Dec................................................................................. 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar................................................................................. 18.6 102.8 65.1 1.7 11.8 200.0 June................................................................................ 18.6 106.6 67.3 2.0 11.8 206.3 Sept................................................................................. 18.8 108.3 69.1 2.1 11.9 210.3 Dec.................................................................................. 19.1 116.2 70.1 2.4 12.4 220.1 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—May................................................................................ 13.8 59.1 26.9 1.9 6.4 108.0 June................................................................................ 14.2 60.8 27.1 1.9 6.3 110.2 July................................................................................. 14.8 61.1 27.3 1.9 6.6 111.7 Aug................................................................................. 14.3 59.5 27.3 1.9 6.1 109.1 Sept................................................................................. 14.5 60.6 27.2 1.9 6.5 110.8 Oct. ................................................................................ 15.0 61.7 27.3 2.0 6.6 112.5 Nov................................................................................. 14.8 62.9 27.5 2.1 6.7 113.9 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 14.7 61.5 27.6 2.1 6.3 112.1 Apr................................................................................. 14.7 62.2 29.6 2.1 6.2 114.7 Mayp.............................................................................. 14.2 62.3 28.0 2.1 6.1 112.7 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 1........... 112 69 63 58 National member................. 387 311 304 288 All other member i............ 371 313 312 294 State member........................ 95 71 71 64 All nonmember...................... 197 177 163 155 All member............................... 482 381 375 352 195 172 158 152 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-15. 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

JULY 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—Mar. 6 4,939 2,754 2,185 1,414 339 1,075 13 4,935 2,768 2,167 1,420 339 1,081 20 4,840 2,787 2,053 1 .419 340 1 ,079 27, 4,904 2,834 2,070 1.454 369 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 '1,482 r393 r1,089 May 1 5,399 3,020 2,379 1,471 379 1,092 8 5,536 3,069 2,467 1,475 375 1,100 15 5,442 3,039 2,403 1,457 358 1,099 22 5,567 3,084 2,483 1.455 357 1,098 29 5,653 3,112 2,541 1,442 359 1,083 June 5 5,648 2,986 2,662 1,469 384 1.085 12 5,493 2,999 2,494 1,446 374 1,072 19 5,380 2,888 2,492 1,450 391 1,059 26 5,372 2,943 2,429 1,437 382 1,055 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 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. corr. States States 196 5 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1.318 249 64 146 3,674 1,889 1,153 2,408 197 0 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 197 1 32,126 495 10,923 1,478 19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 197 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—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 Apr. 44,677 1,664 13,327 5,170 24,516 10,692 3,232 2,744 488 216 700 6,544 2,900 2,833 4,959 May 46,171 1,807 13,631 5,277 25,456 11,727 3,089 2,642 447 373 732 7,532 2,952 2,899 5,876 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 □ JULY 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Effective date Rate 1973—June 8 1974—Jan. 7. 9^-934.- 1974—Apr. 11. 934-98/u- 1974—June 3.. 111/2 .-116/10- 19 7%«-7% 99/io 10. 1134 25 7%« 14. 9%-9%.- 15. 10.-10i/ia- 7.. 1114-111/2 ■- 98/,0 IOI/4 116/10 July 3 2 . , 7 7 3 3 /4 4 . - - 8 8 . 29. 91/ 9 4 7 - /1 9 0 1/2.- 19. 10 1 -I 0 O 1 1 4 / . 10- 2 1 1 0 . . i l n l 1/4i - ­111/2- 9. 8-8 14 ■ 23. 10i4*-10Vio 24. 111/2.-1134 17. 8%«-8% Feb. 11. 9-914.93/h, 24. 101/4.- 25. 11 Vi *-1134- 18. 81/4-81/2. 19. 9 .-914 104/10- ll8/l0 23. 8*4« 25. 87/io-8^4>-9 IOI/2 26. 111/2-1134.- 30. 81/2-83/4. 26. 8V10-834. 25. IO14-IO4/10- 11 8/10 IOI/2. 28. 11 34 .-118/10 Aug. 6. 834-9. Mar. 4. 8%-8Vio- 26. 104/10- 1 7 3 . . 9 9- . 914 ■ 5. 8 V 8 i 3 - /4 8 . 6/io- 1100%34-«1-1 21. 9i/4«-9i/2 834. 30. 101/2.- 2 2 2 8. . 9 9 1 1 / / 2 2 - - 934. 2 1 1 9 . . 8 83 ^ 4 . . - -8 8 8 8 / / . i 0 o -9 1 10 0 6 3 / 4 10 -1 - 1 29, 9%. 22. 88/io-9. 26. 9. May 2. 101/2-106/10- Sept. 14, 9 34 .-10 28. 9 .-914 1034 »-ll 18, 10. 29. 9-914.-91/2 3. 106/10-10341 27. 934_10. -11 Apr. 2, 914 .-9 4/10- 6. 10«/io-10%- Oct. 22, 91/2_934_10i 91/2 11 ■ 24, 91/2-93/4.-10 3, 914-94/10- 7. 11 ■ 91/2. 10, 11-1114" 4 94/10-9Vi»- 13. lii4»-li4/i 934 17. 1 1 14-1 1—4/10 5 94/10-9i/2- -11%" 934. 20 11%B-11% 934b-98/io- 10 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 May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 1974 Short-term 35 centers..................................... 11.15 9.91 10.50 9.86 11.06 10.09 11.41 10.28 11.32 10.06 11.06 9.75 New York City........................ 11.08 9.68 10.70 9.93 11.25 10.12 11.54 9.95 11.24 9.78 11.00 9.62 7 Other Northeast................... 11.65 10.28 11.31 10.42 11.69 10.46 12.01 10.71 11.94 10.48 11.40 9.99 8 North Central....................... 11.09 9.98 9.59 9.18 10.80 9.98 11.36 10.42 11.37 10.14 11.00 9.82 7 Southeast............................... 10.88 9.80 10.43 9.69 10.69 9.81 10.92 10.02 10.93 9.90 10.94 9.60 8 Southwest.............................. 10.82 9.93 10.32 9.90 10.67 9.98 10.97 10.04 10.84 9.99 10.78 9.82 4 West Coast............................ 11.19 9.78 11.01 10.16 11.27 10.08 11.34 10.05 11.30 9.83 11.13 9.68 Revolving credit 35 centers..................................... 11.21 9.82 11.00 10.22 11.27 10.09 11.36 10.10 11.32 9.78 11.19 9.79 New York City........................ 11.47 9.91 10.76 9.32 11. 16 9.60 11.27 9.99 11.31 9.72 11.49 9.92 7 Other Northeast................... 11.35 10.20 11.36 9.82 11.52 10.27 11.36 10.32 11.02 9.65 11.38 10.25 8 North Central....................... 11.06 10.00 11.63 11.14 11.37 10.27 11.35 10.17 11.19 10.03 11.00 9.97 7 Southeast............................... 10.58 9.96 10.00 9.75 10.17 9.88 10.51 10.09 11.00 9.35 10.52 10.14 8 Southwest.............................. 11.84 10.34 11.73 10.58 11.28 9.97 11.79 10.32 12.12 10.43 11.79 10.35 4 West Coast............................ 11.01 9.58 10.71 10.24 11.37 10.11 11.39 10.04 11.31 9.65 10.93 9.51 Long-term 35 centers..................................... 11.41 10.16 10.61 10.74 10.82 10.42 10.92 10.47 11.58 10.24 11.48 10.09 New York City........................ 12.64 10.03 10.67 11.50 10.93 11.90 10.06 12.06 9.95 12.74 10.02 7 Other Northeast................... 11.27 10.48 10.81 10.93 11.03 10.07 11.01 10.19 11.76 10.58 11.26 10.58 8 North Central....................... 11.14 10.48 9.49 10.51 10.13 9.69 11.10 10.45 11.66 10.10 11.13 10.57 11.03 10.93 10.19 10.49 9.96 13.59 11.49 12.48 9.96 14.20 11.50 8.90 8 Southwest.............................. 10.83 9.90 11.51 10.88 11.32 10.23 10.64 10.56 11.36 9.63 10.65 9.79 4 West Coast............................ 9.97 9.75 11.31 10.75 11.06 10.21 9.40 10.64 11.34 10.22 9.81 9.55 Note.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 468- 77 of the June 1971 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers’ eral 3-month bills5 6-month bills5 9-to 12-month issues Period placed accept­ funds 3- to 5directly, ances, rate3 year 90-119 4- to 6- 3- to 6- 90 days 1 Rate Market Rate Market 1 -year issues 6 days months months2 on new yield on new yield bill (mar­ Other 6 issue issue ket yield)5 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 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—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 May. 10.82 10.62 8.94 10.68 11.31 8.430 8.23 8.496 8.40 8.21 8.78 8.24 June. 11.18 10.96 9.00 10.79 11.93 8.145 7.90 8.232 8.12 8.16 8.71 8.14 Week ending— 1974—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 May 4. 10.85 10.73 8.70 10.35 11.17 8.909 8.81 8.796 8.73 8.45 9.10 8.29 11. 11.00 10.83 8.90 10.70 11.29 9.036 8.60 9.006 8.71 8.46 9.21 8.51 18. 11.00 10.80 9.00 10.75 11.46 8.023 8.00 8.031 8.12 8.11 8.79 8.20 25. 10.63 10.38 9.00 10.75 10.95 8.197 7.90 8.440 8.28 7.99 8.39 8.09 June 1. 10.56 10.31 9.00 10.75 11.54 7.983 8.04 8.205 8.26 8.06 8.46 8.07 8. 10.78 10.53 9.00 10.75 11.45 8.300 8.05 8.426 8.16 8.15 8.61 8.06 15. 10.98 10.75 9.00 10.75 11.60 8.260 8.23 8.324 8.32 8.14 8.68 8.06 22. 11.33 11.10 9.00 10.75 11.85 8.177 7.88 8.175 8.04 8.10 8.66 8.09 29. 11.65 11.48 9.00 10.90 11.97 7.841 7.45 8.003 7.96 8.24 8.88 8.33 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 □ JULY 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 (long­ Re­ Aaa Baa Indus­ Rail­ Public term) Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 1973—Jun e 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 r8.37 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 8.95 Apr........ 7.04 5.76 5.45 6.06 8.98 8.94 8.50 8.25 8.88 8.39 8.51 8.68 7.83 3.86 May 7.07 6.09 5.89 6.30 9.24 9.13 8.68 8.37 9.10 8.55 8.73 8.86 8.11 4.00 June.. . . 7.03 6.17 5.95 6.41 9.38 9.36 8.85 8.47 9.34 8.69 8.89 9.08 8.25 4.02 Week ending— 1974—May 4. 7.11 6.00 5.80 6.25 9.27 9.15 8.62 8.34 8.99 8.52 8.64 8.76 8.04 3.90 11 . 7.09 6.11 5.90 6.40 9.27 9.11 8.64 8.38 9.02 8.56 8.69 8.77 8.08 3.91 18. 7.02 6.06 5.90 6.30 9.23 9.13 8.67 8.36 9.07 8.53 8.73 8.83 8.12 3.96 25. 7.08 6.06 5.90 6.30 9.34 9.10 8.71 8.38 9.16 8.56 8.77 8.89 8.10 4.12 June 1, 7.06 6.09 5.95 6.30 9.09 9.15 8.75 8.39 9.23 8.60 8.81 8.95 8.20 4.13 8, 7.04 6.03 5.90 6.25 9.23 9.14 8.78 8.40 9.26 8.61 8.85 9.00 8.25 3.98 15 6.99 6.11 5.95 6.30 9.28 9.18 8.81 8.40 9.29 8.64 8.88 9.02 8.19 3.91 22, 7.01 6.18 5.96 6.39 9.49 9.45 8.87 8.49 9.36 8.72 8.90 9.10 8.24 4.06 29 7.07 6.35 6.00 6.70 9.50 9.65 8.94 8.57 9.44 8.80 8.93 9.19 8.32 4.14 Number of issues2.. . 13 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: Stock Market Customer Financing: Note.—Annual data are averages of monthly figures. Monthly and 1 Margin credit includes all credit extended to purchase or carry stocks weekly data are averages of daily figures unless otherwise noted and are or related equity instruments and secured at least in part by stock (see computed as follows: U.S. Govt, bonds, derived from average market Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data yields in table on p. A-30 on basis of an assumed 3 per cent, 20-year for member firms of the New York Stock Exchange. June data for banks bond. Municipal and corporate bonds, derived from average yields as are universe totals; all other data for banks represent estimates for all computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- commercial banks based on reports by a reporting sample, which ac­ year bond; Wed. closing prices. Common stocks, derived from com­ counted for 60 per cent of security credit outstanding at banks on June 30, ponent common stock prices. Average daily volume of trading, normally 1971. conducted 5 days per week for 5 VS hours per day, or 27 VS hours per week. 2 In addition to assigning a current loan value to margin stock generally, In recent years shorter days and/or weeks have cut total weekly trading Regulations T and U permit special loan values for convertible bonds and to the following number of hours: stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of Over the Counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ SECURITY MARKETS A 31 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43= 10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d 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 1 ( 9 A 1 3 7 0 u 1 3 0 g , ) = . NYSE AMEX 1970......................... 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971......................... 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 17,429 4,234 1972......................... 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973......................... 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1973—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—Jan................ 60.66 85.2 62.3 96.11 107.18 44.37 48.60 51.39 55.77 36.85 35.89 64.80 95.32 16,506 2,757 Feb............... 60.83 85.3 62.0 93.45 104.13 41.85 48.13 50.01 54.02 36.26 35.27 62.81 95.11 13,517 2,079 Mar............... 58.70 83.5 61.3 97.44 108.98 42.57 47.90 52.15 56.80 38.39 35.22 64.47 99.10 14,745 2,123 Apr............... 57.01 80.2 60.3 92.46 103.66 40.26 44.03 49.21 53.95 35.87 32.59 58.72 93.57 12,109 1,752 May.............. 56.81 77.3 59.7 89.67 101.17 37.04 39.35 47.35 52.53 33.62 30.25 52.85 84.71 12,512 1,725 June.............. 57.11 73.2 59.5 ‘89.79 101.62 37.31 37.46 47.14 52.63 33.76 29.20 51.20 82.88 12,268 1,561 Week ending— 1974—June 1....... 56.84 77.1 59.6 87.49 98.83 35.24 37.99 46.04 51.18 32.29 29.30 50.74 81.54 11,831 1,653 8 . . . , 57.03 77.1 59.7 90.81 102.61 37.46 39.00 47.77 53.17 34.13 29.96 52.91 83.84 14,917 1,903 15........ 57.38 77.1 59.7 92.22 104.33 38.53 38.64 48.48 54.06 34.86 29.93 53.81 85.29 \1,730 1,499 22 .... 57.25 76.1 59.5 88.80 100.59 37.11 36.45 46.63 52.15 33.51 28.61 50.55 82.34 10,833 1,395 29 . . 56.76 74.3 59.1 87.32 98.94 36.23 35.76 45.66 51.16 32.56 28.80 47.53 80.06 11,592 1,447 For notes see opposite page. 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—May. 7,650 6,784 866 6.540 802 224 47 20 1,992 413 1,564 June. 7,369 6,416 953 6,180 885 215 53 21 1,973 396 1,472 July.. 7,299 6,243 1,056 6,010 976 216 64 17 1,957 379 1,542 Aug.. 7,081 6,056 1,025 5,830 949 210 61 16 1,952 348 1,462 Sept.. 6,954 5,949 1,005 5,730 929 204 60 15 1,909 379 1,632 Oct.. 7,093 5,912 1,181 5,690 1,105 203 59 19 1,878 419 1,713 Nov.. r6,774 5,671 1,003 5,460 1,027 197 60 14 1,917 464 1,685 Dec.. 6,382 5,251 1,131 5,050 1,070 189 46 12 1,866 454 1,700 1974—Jan... 6,343 5,323 1,020 5,130 961 182 45 11 1,799 442 1,666 Feb.. 6,462 5,423 1,039 5,230 977 183 46 10 1,843 420 1,604 Mar.. 6,527 5,519 1,008 5,330 944 180 48 9 1,869 424 1,583 Apr.. 5,558 5,370 179 9 r415 1,438 May. 5,368 5,180 179 9 395 1,420 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 STOCK MARKET CREDIT: SAVINGS INSTITUTIONS □ JULY 1974 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 debt in debit status End of ( li m on il s ­ End of period c N re e d t it b T al o a t n a c l e period d o o f l­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n rs s ) lars)1 1973—May..................... 35.8 45.0 19.1 5,670 1973—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 14.8 5,860 Oct. . 5,690 7.2 10.0 19.9 22.6 22.1 18.2 37.5 42.2 20.3 5,882 Nov.. 5,460 5.4 6.1 12.0 16.9 19.5 40.1 39.4 40.0 20.6 5,935 Dec.. 5,050 5.8 7.7 14.4 17.4 20.3 34.2 1974—Jan....................... 38.3 42.7 18.0 6,596 1974—Jan... 5,130 5.5 8.0 14.2 22.6 25.8 24.0 Feb....................... 39.4 43.3 24.9 6,740 Feb... 5,230 5.4 7.4 13.3 22.6 28.0 23.3 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 39.6 42.3 19.4 6,526 Apr.. 5,370 4.4 6.0 9.9 16.5 26.5 37.0 May..................... 37.8 40.0 22.2 6,544 May. 5,180 4.2 5.1 8.5 13.7 23.3 45.3 Note.—Special miscellaneous accounts contain credit balances that l Note 1 appears at the bottom of p. A-30. 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. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments Total Other General classified by maturity End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n a c d t a e l C r a o a n r t d p e o­ Cash O as t s h e e ts r lia a t b i n e i d s li ­ De it p s os­ lia ti b e i s li­ r c e o a s u e c n r ­ v ts e (in months) govt. other1 general reserve accts. 3 or 3-6 6-9 Over Total less 9 197 0 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 1,931 197 1 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 19723.......... 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—Apr.. 69,426 3,831 3,388 1,080 22,598 1,582 2,089 103,994 94,217 2,589 7,189 1,904 725 1,395 4,912 May. 69,988 4,099 3,376 1,076 22,615 1,629 2,116 104,899 94,744 2,904 7,251 1,792 913 712 1,406 4,824 June. 70,637 3,959 3,346 1,125 22,562 1,775 2,273 105,677 95,706 2,650 7,321 1,711 1,020 573 1,378 4,683 July. 71,219 3,819 3,190 1,093 22,683 1,555 2,202 105,761 95,355 3,044 7,362 1,626 906 636 1,367 4,535 Aug.. 71,713 3,986 3,037 999 22,277 1,551 2,227 105,789 94,882 3,496 7,411 1.302 840 718 1,315 4,174 Sept.. 72,034 4,200 2,945 957 21,799 1,491 2,345 105,771 95,183 3,134 7,453 1,411 762 589 1,197 3,959 Oct.. 72,367 4,181 3,007 939 21,276 1,501 2,285 105,557 94,944 3,139 7,474 1,318 771 510 1,096 3,695 Nov.. 72,760 4.424 2,948 925 21,150 1,519 2,264 105,991 95,259 3,201 7,530 1,272 685 479 1,079 3,515 Dec.. 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 1974—Jan.. 73,440 4,161 2,925 936 21,623 1,686 2,312 107,083 96,792 2,665 7,626 1,171 587 439 998 3,196 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 Mar. 73,957 4,825 2.851 934 22,302 1,634 2,373 108,876 98,557 2,595 7,724 1.302 525 413 929 3,168 Apr.. 74,181 4.425 2.852 951 22,366 1,601 2,347 108,722 98,035 2,943 7,744 1,214 584 401 994 3,193 1 Also includes securities of foreign governments and international were net of valuation reserves. For most items, however, the differences organizations and nonguaranteed issues of U.S. Govt, agencies. are relatively small. 2 Commitments outstanding of banks in New York State as reported to the Savings Banks Assn. of the State of New York. Data include building Note.—NAMSB data; figures are estimates for all savings banks in loans beginning with Aug. 1967. the United States and differ somewhat from those shown elsewhere in 3 Balance sheet data beginning 1972 are reported on a gross-of-valua- the Bulletin; the latter are for call dates and are based on reports filed tion-reserves basis. The data differ somewhat from balance sheet data with U.S. Govt, and State bank supervisory agencies. previously reported by National Assn. of Mutual Savings Banks which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ SAVINGS INSTITUTIONS A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks M gag o e rt s ­ e R st e a a t l e P lo o a li n c s y a O s t s h e e ts r 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—Apr.r........................... 242,290 11,371 4,513 3,347 3,511 115,117 89,690 25,427 77,278 7,516 18,425 12,583 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—Jan............................... 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 Mar.............................. 255,847 11,766 4,595 3,511 3,660 119,936 94,037 25,899 81,971 7,831 20,538 13,805 Apr.............................. 256,583 11,594 4,317 3,526 3,751 120,466 95,010 25,456 82,469 7.795 20,830 13,429 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.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o g r e t s ­ I s n i m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other 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 2 m ro B o w n o e e r y ­ d 3 p L ro o i c a n e n s s s Other o a u p t t s e e t r a n i n d o d d o i 4 n f g 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 19733................................ 232,104 21,027 19,227 272,358 227,254 17,108 17,100 4,676 6,220 9,532 1973—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 9,909 231,089 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....................... 236,514 23,970 20,429 280,913 235,436 17,488 16,652 4,492 6,845 12,018 Apr........................ 239,027 23,520 20,902 283,449 235,218 17,763 18,087 4,807 7,574 12,933 May*..................... 241,717 23,695 21,550 286,962 235,754 18,075 19,320 5,049 8,764 12,412 1 Excludes stock of the Federal Home Loan Bank Board. Compensating included in other assets. The effect of this change was to reduce the mort­ changes have been made in “Other assets.” gage total by about $0.6 billion. 2 Includes net undistributed income, which is accrued by most, but not Also, GNMA-guaranteed, mortgage-backed securities of the pass­ all, associations. through type, previously included in cash and investment securities are 3 Advances from FHLBB and other borrowing. included in other assets. These amounted to about $2.4 billion at the end 4 Data comparable with those shown for mutual savings banks (on of 1972. preceding page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. Note.—FHLBB data; figures are estimates for all savings and loan 5 Beginning 1973, participation certificates guaranteed by the Federal assns. in the United States. Data are based on monthly reports of insured Home Loan Mortgage Corporation, loans and notes insured by the assns. and annual reports of noninsured assns. Data for current and Farmers Home Administration and certain other Government-insured preceding year are preliminary even when revised. morgtage-type investments, previously included in mortgage loans, are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 FEDERAL FINANCE □ JULY 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public 1 Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt, Trea­ financ­ deficit debt Agency accounts Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes 2 ing Special Other balance issues Fiscal year: 197 0 193,743 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 211,425 -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 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—May'.... M6,576 r19,994 -3,419 275 -43 1,968 234 -1,970 -5,924 r3,523 >■2,986 June........ 28,504 20,892 7,612 803 68 3,411 -171 -2,369 4,344 414 -485 July......... 18,121 22,607 -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 -773 168 544 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 Apr......... 29,657 22,273 7,384 -2,597 37 -115 57 -2,502 3,125 1,319 -438 May....... 19,243 23,981 -4,739 2,773 -28 2,936 -200 -5,032 1,120 -1,423 Selected balances Treasury operating balance Borrowing from the public. 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 4 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c i y es S i p s G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t s c e s i s a : 2 l E T q o u t a a l l s: s c p p o G r o N r i n o v p o s v a s w o t . t — . r e - e 5 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 7,934 139 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—May............. 3,242 4,679 311 8,232 457,338 11,041 '98,327 '23,814 825 345,414 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 24,241 '825 343,727 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 59,897 Apr.............. 2,814 8,576 89 11,480 471,903 12,012 108,350 24,809 825 349,931 61,151 May............. 3,134 3,226 88 6,448 474,675 11,984 111,286 24,609 825 349,939 1 The decrease in Federal securities resulting from conversion to private 3 Includes accrued interest payable on public debt securities, deposit ownership of Govt.-sponsored corporations (totaling $9,853 million) is funds, miscellaneous liability and asset accounts, and seigniorage. not included here. In the bottom panel, however, these conversions de­ 4 As of Jan. 3, 1972, the Treasury operating balance was redefined to crease the outstanding amounts of Federal securities held by the public exclude the gold balance and to include previously excluded “Other deposi­ mainly by reductions in agency securities. The Federal National Mortgage taries” (deposits in certain commercial depositaries that have been con­ Association (FNMA) was converted to private owership in Sept. 1968 and verted from a time to a demand basis to permit greater flexibility in the Federal intermediate credit banks (FICB) and banks for coopera­ Treasury cash management). tives in Dec. 1968. 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. 2 Represents non-interest-bearing public debt securities issued to the Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks International Monetary Fund and international lending organizations. for cooperatives (both beginning Dec. 1968). 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

JULY 1974 □ FEDERAL FINANCE A 35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a t t a i x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Employment Total W he it ld h­ F C p P E t u a i r a l o i e e n m g n c s 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 t o a x a t y l e x r l ­ s i e b s u e a t S i m n o e d l p n f l - s . 2 i e n U m s n u p - r l. . c O e n r i t p e h e ­ t t e s r 3 t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a« g s *n i * t f / a a4 t te c M e r i i e p s ­ t c s . 4 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 24,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,64983,200 25,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 197 3 232,22598,093 27,01921,866 103,24639,045 2,89352,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 Half year: 1972—Jan.-June... 115,46944,751 20,090 13,56951,27221,664 1,31224,445 1,877 4,736 1,76430,925 6,516 1,449 3,041 1,915 July-Dee.. .. 106,06246,056 5,784 68851,152 15,315 1,45922,493 165 2,437 1,77326,867 8,244 1,551 2,333 2,059 1973—Jan.-June. .. 126,16552,034 21,23521,17952,09123,730 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—May............. r16,576 8,814 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 '255 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 Apr.................. 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 351 6,896 1,275 286 371 602 May................. 19,243 10,083 1,204 5,651 5,641 1,318 218 7,196 311 2,190 339 10,036 1,391 295 437 343 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 ,r~ 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—May' ’ 19,994 '6,482 136 255 -155 298 '669 -148 1,066 *•8,142 1,017 2,165 '443 -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 Apr.......... 22,273 6,751 336 293 89 -1,618 740 373 925 9,505 1,165 2,455 586 1,540 -867 May........ 23,981 7,243 312 278 313 428 875 352 662 10,087 1,180 2,516 498 1 -763 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 36 U.S. GOVERNMENT SECURITIES □ JULY 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l s t a i s l c 1 Total Total Bills M C a c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n l r n e d t­ ­ s Total N 3 on F m is o s a r u r e e k i s g e n t 4 a ble b S o in a n g v d s ­ s i S ss p u e e c s i a 5 l & notes 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—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 May 474.7 361.5 269.6 107.9 128.4 33.2 2.3 89.6 26.0 62.1 111.3 June 475.1 357.8 266.6 105.0 128.4 33.1 2.3 89.0 25.9 62.4 115.4 1 Includes non-interest-bearing debt (of which $617 million on June 30, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 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. Note.—Based on Daily Statement of U.S. Treasury. See also second paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .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 i e e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e d n i r g a ­ n l 1 t O i m o n r t v i h s s e c e s . 2 r ­ funds bonds securities 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—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 Apr................ 471.9 131.1 80.0 260.7 56.8 2.7 5.9 10.5 30.1 61.4 17.8 55.9 19.7 May.............. 474.7 113.9 81.4 259.4 54.8 2.6 5.8 11.2 29.2 6,.7 18.3 57.3 18.5 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ U.S. GOVERNMENT SECURITIES A 37 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 rs Total Bills Other AH 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—Apr. 30........................................................ 270,452 140,905 107,337 33,568 80,570 26,961 16,036 5,981 May 31........................................................ 269,550 142,864 107,941 34,923 77,165 26,960 17,458 5,103 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 Apr. 30................................................ 21,296 2,466 647 1,819 7,452 4,524 5,235 1,620 May 31................................................ 21,079 2,749 502 2,247 6,735 4,561 5,708 1,327 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—Apr. 30................................................ 80,007 47,356 37,276 10,080 22,793 7,982 1,687 189 May 31................................................ 81,395 50,865 37,988 12,877 20,502 8,032 1,747 248 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 Apr. 30................................................ 169,149 91,083 69,414 21,669 50,325 14,455 9,114 4,172 May 31................................................ 167,076 89,250 69,451 19,799 49,928 14,367 10,003 3,528 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 Apr. 30........................................ 43,025 13,508 4,717 8,791 23,081 5,168 1,013 254 May 31........................................ 41,349 12,206 4,093 8,113 22,779 5,077 1,025 262 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—Apr. 30........................................ 1,820 448 200 248 750 229 277 116 May 31........................................ 1,690 406 163 243 719 217 246 102 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 Apr. 30........................................ 4,786 631 239 392 1,087 1,296 1,286 486 May 31........................................ 4,686 636 241 395 992 1,319 1,341 399 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 Apr. 30........................................ 4,480 2,778 1,363 1,415 1,346 290 54 12 4,777 2,810 1,610 1,200 1,582 320 53 12 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 Apr. 30........................................ 2,105 505 118 387 989 368 194 49 May 31........................................ 2,041 436 82 354 913 366 298 29 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—Apr. 30........................................ 10,207 6,381 4,924 1,457 1,833 720 949 324 May 31........................................ 9,280 5,559 4,082 1,477 1,704 755 1,014 248 All others: 1971—Dec. 31....................................... 94,746 56,261 49,565 6,696 23,983 6,933 3,329 4,237 1972—Dec. 31........................................ 101,249 61,014 55,506 5,508 23.171 8,906 5,290 2,868 1973 Dec. 31........................................ 101,261 64,606 55,493 9,113 22;076 6,372 5,189 3,023 1974—Apr. 30........................................ 102,726 66,832 57,853 8,979 21,239 6,384 5,341 2,931 May 31......................................... 103,253 67,197 59,180 8,017 21,239 6,313 6,026 2,476 Note.—Direct public issues only. Based on Treasury Survey of banks, and 735 insurance companies combined, each about 90 per cent; Ownership. (2) 467 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) 5,593 commercial banks, 478 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES □ JULY 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—May............................. 3,187 2,390 322 323 153 661 543 1,057 927 687 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 Apr............................... 3,338 2,682 438 173 45 614 836 951 937 709 May............................. 3,542 2,645 693 133 72 711 905 991 936 861 Week ending— 1974—May 1....................... 2,917 2,446 326 103 42 589 623 744 962 612 8....................... 3,287 2,560 517 163 48 593 795 932 967 424 15....................... 4,242 2,566 1,384 163 130 737 1,196 1,174 1,136 1,147 22....................... 3,163 2,501 494 109 60 715 729 920 799 918 29....................... 3,223 2,542 505 110 66 681 842 887 814 792 June 5....................... 3,747 3,036 515 151 46 820 993 1,038 896 1,022 12....................... 3,566 2,917 482 124 43 805 941 1,003 818 1,158 19....................... 2,669 2,199 351 78 41 630 645 706 689 746 26....................... 2,706 2,322 252 93 39 624 610 803 669 1,095 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 ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G g e 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 1 a­ o A th l e l r 1973—May............... 2,626 2,596 -324 179 175 356 1973—May........... 2,667 674 452 252 1,291 June............... 2,976 2,818 -165 91 232 744 June........... 3,769 1,242 690 431 1,406 July................ 1,901 2,062 -250 -43 131 511 July........... 2,826 725 544 510 1,047 Aug................ 1,788 1,977 -94 -107 12 273 Aug............ 2,318 829 327 386 777 Sept................ 3,201 2,958 316 -111 38 799 Sept............ 4,244 1,620 877 441 1,306 Oct................. 3,073 2,858 93 56 67 904 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 Apr................. 1,536 1,577 -121 62 17 719 2,449 600 728 287 833 495 421 -33 66 41 791 May........... 1,637 26 486 213 913 Week ending— Week ending— 1974—Apr. 3....... 2,530 2,380 * 109 40 752 1974—Apr. 3... 3,211 867 841 329 1,174 10. . . 2,335 2,274 -51 85 27 772 10. .. 3,097 1,106 822 332 837 17 , 1,834 1,952 -163 38 8 790 17. .. 3,040 861 866 271 1,041 24......... 439 602 -203 38 2 661 24. .. 1,466 4 551 250 662 May 1........ 794 921 -194 44 24 638 May 1. .. 1,763 201 579 248 736 8........ 602 743 -226 66 19 647 8. . . 1,572 -6 561 225 793 15........ 687 402 153 65 66 728 15. . . 1,790 -3 556 252 984 22 101 14 -36 73 50 687 22. . . 1,515 -88 379 221 1,003 29, 354 241 -5 78 42 977 29. . . 1,552 129 391 169 864 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commerpial 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

JULY 1974 □ FEDERALLY SPONSORED CREDIT AGENC A NG ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, MAY 31, 1! Cou­ Amount Cou­ Amount nout pon (millions Agency, and date of issue pon (millions Agency, and date of issue illioi rate of dollars) and maturity rate of dollars) and maturity lollai Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 7.65 173 Debentures: 12/3/73 -6/3/74.. 617 5% 400 8/5/70 - 6/10/74....... 7.90 400 1/2/74 - 7/1/74. . . 469 95/g 800 11/10/71 -6/10/74.... 5.70 350 2/4/74-8/1/74... 559 8.00 217 9/10/69 - 9/10/74.... 7.85 250 3/4/74 - 9/3/74... 349 7.05 1,000 2/10/71 - 9/10/74........ 5.65 300 4/1/74- 10/1/74.. 268 6.10 250 5/10/71 - 12/10/74.... 6.10 250 5/1/74- 11/4/74. . 212 5% 400 9/10/71 - 12/10/74.... 6.45 450 10/1/73 -4/4/77.. 200 8.20 500 11/10/70 - 3/10/75.. . 7.55 300 7.15 700 10/12/71 - 3/10/75. . . 6.35 600 8.05 265 4/12/71 -6/10/75........ 5.25 500 Federal intermediate 6.80 300 10/13/70 - 9/10/75. . . 7.50 350 credit banks 7.95 300 3/12/73 -9/10/75........ 6.80 650 Debentures: 77/g 500 3/10/72 - 12/10/75. . . 5.70 500 9/4/73 - 6/3/74. . 626 7.15 400 9/10/73 - 12/10/75.... 8.25 300 10/1/73 -7/1/74. 699 6.50 350 3/11/71 - 3/10/76........ 5.65 500 1/4/71 - 7/1/74. 224 7.05 600 6/12/73 - 3/10/76........ 7.13 400 11/1/73 - 8/1/74. 583 9.10 700 6/10/71 -6/10/76........ 6.70 250 12/3/73 -9/3/74. 528 73/s 300 2/10/72 -6/10/76........ 5.85 450 1/2/74 - 10/1/74. 661 sy4 300 11/10/71 -9/10/76.... 6.13 300 2/4/74 - 11/4/74. 754 7.20 600 6/12/72-9/10/76........ 5.85 500 3/4/74 - 12/2/74. 785 7.45 300 7/12/71 - 12/10/76.. .. 7.45 300 5/1/72 - 1/2/75. . 240 7.80 500 12/11/72- 12/10/76... 6.25 500 4/1/74 - 1/2/75. . 608 7.20 500 6/10/74- 12/10/76. .. . 8.45 500 5/1/74 - 2/3/75 . .. 674 6.95 200 2/13/62 - 2/10/77___ 41/2 198 1/3/72-7/1/75. . 302 7.15 300 9/11/72 -3/10/77........ 6.30 500 3/1/73 - 1/5/76. . 261 8.80 600 3/11/74 - 3/10/77........ 7.05 400 7/2/73 - 1/3/77. .. 236 6% 300 12/10/70 - 6/10/77. . . 6.38 250 1/2/74 - 1/3/78. . 406 7.45 300 5/10/71 -6/10/77........ 6.50 150 7.60 500 12/10/73 - 6/10/77... . 7.20 500 Federal land banks 83/4 400 9/10/71 -9/12/77........ 6.88 300 Bonds: 7.75 350 9/10/73 - 9/12/77........ 7.85 400 10/20/71 - 7/22/74. . . 5.85 326 7.05 300 7/10/73 - 12/12/77. 7.25 500 4/20/71 - 10/21/74... 5.30 300 7.80 200 10/1/73 - 12/12/77.... 7.55 500 2/20/70 - 1/20/75. . . 8M 220 6.60 200 6/10/74-3/10/78........ 8.45 650 4/23/73 - 1/20/75. .. . 7.15 300 7.30 188 6/12/73 - 6/12/78........ 7.15 600 4/20/65 - 4/21/75... 4^ 200 8 m Ya 4 3 0 0 0 0 3 10 /U /1 / 2 7 /7 4 1 - - 9 /1 1 1 2 / / 7 1 8 1 . / . 7 .. 8 .. . . . . 6 7 . .1 7 5 5 3 5 0 5 0 0 2 7 / /2 1 0 5 / / 7 7 3 2 - -4 7 /2 /2 1 1 / / 7 7 5 5 . . . . . . . . 7 5 . . 6 7 5 0 4 3 2 0 5 0 12/10/73 - 3/12/79. . . . 7.25 500 4/22/74 - 7/21/75. ... 8.30 300 9/10/73 - 6/11/79........ 7.85 300 7/20/71 - 10/20/75... 7.20 300 6/12/72- 9/10/79........ 6.40 300 10/23/73 - 10/20/75.. 7.40 362 12/10/71 - 12/10/79. . 6.55 350 4/20/72 - 1/20/76.... 6% 300 5.30 200 2/10/72 - 3/10/80........ 6.88 250 2/21/66 - 2/24/76. . . 5.00 123 7.05 400 6/10/74-6/10/80........ 8.50 350 1/22/73 - 4/20/76... . 6% 373 6 8 . . 1 6 5 0 3 1 5 4 0 0 2 2 / / 1 1 6 6 / / 7 7 3 3 - - 7 7 / / 3 3 1 1 / / 8 8 0 0 . . . . . .. . . .. . . .. . 5 3. . 1 1 8 9 9 1 4 7 / / 2 2 2 0 / / 7 6 4 6 - - 4 / 7 2 /2 0 0 / / 7 7 6 6 . . . . .. . 8 5 % % 4 1 0 5 0 0 7.75 150 10/1/73 -9/10/80........ 7.50 400 1/21/74 - 7/20/76. .. . 7.05 360 7.15 150 1/16/73 - 10/30/80.... 4.46 5 4/23/73 - 10/20/76... 7.15 450 12/11/72 - 12/10/80... 6.60 300 4/22/74-4/20/77.... 8% 565 6/29/72- 1/29/81........ 6.15 156 7/20/73 - 7/20/77... . 7% 550 3/12/73 - 3/10/81........ 7.05 350 10/20/71 - 10/20/77. . 6.35 300 4/18/73 -4/10/81........ 6.59 26 2/20/63 - 2/20/73-78. 41/s 148 3,041 3/21/73 - 5/1/81.......... 4.50 18 5/2/66 - 4/20/78___ 5^ 150 3/21/73 - 5/1/81.......... 5.77 2 7/20/72 - 7/20/78. . . 6.40 269 8.00 200 1/21/71 - 6/10/81.... 7.25 250 10/23/73 - 10/19/78. . 7.35 550 4.38 248 9/10/71 -9/10/81........ 7.25 250 2/20/67 - 1/22/79... . 5.00 285 7.40 250 3/11/74- 12/10/81.. .. 7.30 250 1/21/74 - 1/22/79___ 7.10 300 6/28/72-5/1/82.......... 5.84 58 9/15/72 -4/23/79... . 6.85 235 2/10/71 - 6/10/82........ 6.65 250 2/20/74-7/23/79.... 7.15 389 8.38 250 9/11/72 - 9/10/82........ 6.80 200 10/23/72 - 10/23/79. . 6.80 400 3.58 53 12/10/73 - 12/10/82. .. 7.35 300 1/22/73 - 1/21/80. .. . 6.70 300 5.48 5 3/11/71 - 6/10/83........ 6.75 200 7/20/73 - 7/21/80___ 71/2 250 5.85 71 6/12/73 - 6/10/83........ 7.30 300 2/23/71 -4/20/81.... 6.70 224 5.92 35 11/10/71 -9/12/83.... 6.75 250 4/20/72 -4/20/82.... 6.90 200 5.50 10 4/12/71 - 6/11/84........ 6.25 200 4/23/73 - 10/20/82. .. 7.30 239 5.49 21 12/10/71 - 12/10/84.. 6.90 250 10/23/73 - 10/20/83. . 7.30 5.74 81 3/10/72 - 3/10/92___ 7.00 200 8.63 200 6/12/72-6/10/92........ 7.05 200 12/11/72 - 12/10/97. . . 7.10 200 not guaranteed by the U.S. Govt.; see also note to table at top of p. A-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERALLY SPONSORED CREDIT AGENCIES □ JULY 1974 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 Ad­ Cash Mem­ Deben­ Loans Loans vances Invest­ and Bonds ber Capital Mort­ tures to Deben­ and Deben­ Mort­ to ments de­ and de­ stock gage and cooper­ tures dis­ tures gage Bonds mem­ posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 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—May.. 10,155 2,702 95 9,615 1,261 1,991 21,087 20,225 2,765 2,370 6,777 6,460 9,953 8,836 June.. 11,145 2,516 108 10,215 1,453 2,008 21,413 20,364 2,725 2,316 6,958 6,645 10,117 8,836 July. . 12,365 2,126 103 11,213 1,183 2,035 21,772 20,843 2,811 2,365 6,981 6,745 10,256 9,388 Aug. . 13,511 2,016 111 12,562 1,091 2,064 22,319 21,186 2,865 2,310 7,065 6,727 10,441 9,390 Sept.. 14,298 2,908 102 14,062 1,178 2,089 22,826 21,537 2,738 2,560 7,170 6,833 10,592 9,388 Oct.. . 14,799 3,498 106 15,362 1,270 2,107 23,348 22,243 2,711 2,728 7,130 6,901 10,781 9,838 Nov. . 14,866 3,649 77 15,362 1,545 2,112 23,912 22,404 2,662 2,704 7,029 6,890 10,926 9,838 Dec... 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974—Jan... 15,188 2,843 121 14,556 1,692 2,246 24,424 23,131 3,123 2,741 7,163 6,956 11,245 10,048 Feb... 14,904 2,680 116 13,906 1,936 2,294 24.541 23,092 3,211 2,828 7,277 7,029 11,402 10,282 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 Apr... 16,020 1,615 82 13,902 2,067 2,337 25,264 23,668 2,836 2,810 7,514 7,403 11,067 10,843 May.. 17,103 1,956 96 14,893 2,113 2,376 25,917 25,089 2,700 2,674 7,708 7,585 11,067 10,843 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. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered 3 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 ti t e i s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s i gations auth. 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 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 1973—Apr... 1,826 870 947 159 731 934 1,757 306 12 452 88 898 May.. 1,939 825 1,106 291 945 703 1,775 299 233 430 224 588 June.. 2,152 1,025 861 261 189 1,082 881 2,144 542 102 643 334 523 July.. 2,028 1,458 564 516 363 1,149 2,001 391 231 366 3 1,009 Aug... 1,657 1,067 588 529 498 630 1,602 311 30 352 290 618 Sept.. 1,750 721 741 285 236 838 675 1,653 327 66 579 384 298 Oct... 2,313 1,344 964 337 842 1,135 2,163 299 142 412 251 1,060 Nov.. 2,257 866 1,383 243 1,247 766 1,929 356 42 596 247 687 Dec... 2,089 919 995 173 450 1,022 616 1,954 372 165 487 344 582 1974—Jan... 2,198 1,402 794 208 823 1,163 2,130 595 36 373 56 1,070 Feb.., 1,934 1,155 778 473 523 938 1,869 449 53 612 39 717 Mar., 1,979 1,160 590 227 346 776 856 1,868 359 258 349 241 660 Apr.. 2,362 1,694 660 360 849 1,155 2,325 505 9 595 178 1,038 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

JULY 1974 a SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, allissues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n . v S c t . y , 3 a ( n U S d t . a S lo t . e c ) 4 al Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 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 32,12.3 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..................... 100,417 19,057 23,883 22,700 1,385 33,391 22,268 13,649 8,620 3,372 7,750 1973—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 60 2,631 1,870 857 1,013 226 536 Aug.......... 8,019 3,097 1,600 1,474 42 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. 6........ 3,392 2,956 2,115 842 152 284 Feb.......... 2,687 2,101 1,684 418 268 318 Mar.......... 3,141 2,384 2,020 364 395 361 Apr........... 2,947 2,134 1,594 541 356 456 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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.............................................. 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1973—Apr.................................... 260 22 237 139 91 1 150 369 258 743 228 387 12 30 143 236 8 361 410 355 19 351 231 June................................... 703 25 133 89 183 1,099 497 303 29 337 181 July.................................... 364 169 139 112 250 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. 6................................. 866 29 135 125 127 1,192 249 142 4 493 30 Feb..................................... 353 36 51 143 5 1 536 293 372 25 784 87 Mar.................................... 419 161 40 71 76 , 850 446 310 21 690 58 1,109 9 209 56 6 446 685 279 5 85 57 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 * See note to table at bottom of opposite 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

A 42 SECURITY ISSUES □ JULY 1974 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 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 n on 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 1971....................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972....................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973....................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,389 3,522 3,141 1972—IV............... 116 290 575 479 179 47 1,056 1,735 944 89 1,920 580 1973—1.................. 135 63 -174 377 127 -43 844 1,170 520 185 965 1,244 II................ 632 -2 119 327 327 7 1,136 1,276 842 562 1,049 673 Ill.............. 165 450 108 247 414 -44 1,217 557 752 77 284 260 IV............... -131 147 -162 460 176 -13 1,068 1,506 1,051 575 1,224 964 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- Note.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 1973—May.. 285 446 -161 48,588 4,154 44,434 1963.............. 2,460 1,504 952 25,214 1,341 23,873 June.. 303 349 -46 48,127 4,164 43,963 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 July. . 364 357 -7 50,933 4,594 46,339 Aug. . 239 432 -193 49,553 4,567 44,986 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Sept... 330 395 -65 52,322 4,641 47,681 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Oct.. . 305 559 -254 51,952 4,168 47,784 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Nov... 502 542 -40 45,814 4,126 41,688 Dec... 349 392 -43 46,518 4,002 42,516 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 Feb... 215 303 -88 45.958 4,447 41,511 Mar... 297 346 -49 44,423 4,406 40,017 1971.............. 5,145 4,751 774 56,694 3,163 53,531 Apr... 262 327 r —65 42,679 4,426 38,253 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 May.. 323 320 3 41,015 4,389 36,626 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

JULY 1974 □ BUSINESS FINANCE A 43 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 ­ 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 n a t l i s l p o o u i w n t m a - l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s ­ d co c a t n a l i s o l p o u n i w t m al ­ p ­ ances 1 1968 87.6 39.9 47.8 23.6 24.2 46.8 1972—1 1 94.8 41.4 53.4 25.9 27.5 66.2 1969 84.9 40.1 44.8 24.3 20.5 51.9 111.... 98.4 42.9 55.6 26.2 29.4 66.0 1970 74.0 34.8 39.3 24.7 14.6 56.0 IV.... 106.1 45.9 60.3 26.4 33.9 68.0 1971 85.1 37.4 47.6 25.1 22.5 60.4 1972 98.0 42.7 55.4 26.0 29.3 65.9 1973—..........1 119.6 52.7 66.9 26.9 40.0 69.3 1973 126.3 55.8 70.4 27.8 42.6 71.4 II........ 128.9 57.4 71.6 27.3 44.2 70.5 111.... 129.0 57.6 71.5 28.1 43.4 71.7 IV.... 127.4 55.7 71.6 29.0 42.6 74.2 1974— 1 144.0 60.6 83.4 29.5 53.9 75.1 t 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 . . 1 Other G U o . v S t . .1 Other taxes 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 1971.............................. 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 1972—1......................... 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—1......................... 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 1974—1......................... 253.2 653.9 62.8 11.7 3.2 265.6 258.9 51.6 400.7 4.5 256.7 18.7 120.7 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 Total Period Total Durable du N r o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other1 A (S . , R A . . ) 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 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—1.................. 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 112................ 27.96 5.62 5.64 .76 .65 .63 .52 4.44 .81 8.'90 110.53 Ill 2............. 28.05 5.69 5.67 .75 .64 .50 .57 4.60 .97 8.65 113.16 1 Includes trade, service, construction, finance, and insurance. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 REAL ESTATE CREDIT □ JULY 1974 MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER (In millions of dollars) End of year End of quarter Type of holder, and type of property 1973 1974 1970 1971 1972 I II III IV I ALL HOLDERS............................................ 451,726 499,758 565,196 579,852 600,197 619,996 635,137 646,280 1- to 4-family................................................ 280,175 307,200 345,500 353,971 366,202 378,382 386,489 392,053 Multifamily1................................................ 58,023 67,367 76,585 78,536 81,130 83,521 85,394 86,760 Commercial.................................................. 82,292 92,333 107,673 110,894 115,150 119,504 123,855 127,228 Farm............................................................. 31,236 32,858 35,438 36,451 37,715 38,589 39,399 40,239 PRIVATE FINANCIAL INSTITUTIONS.. 355,929 394,239 450,371 463,105 480,242 495,044 505,583 514,110 1- to 4-family................................................ 231,317 253,540 288,169 296,369 307,423 316,754 322,296 327,146 Multifamily1................................................ 45,796 52,498 59,293 60,658 62,429 63,566 64,723 65,555 Commercial.................................................. 68,697 78,345 92,387 95,377 99,364 103,429 107,018 109,891 Farm............................................................. 10,119 9,856 10,522 10,701 11,026 11,295 11,546 11,518 Commercial banks2...................................... 73,275 82,515 99,314 103,548 109,114 114,788 119,068 121,668 1- to 4-family............................................ 42,329 48,020 57,004 59,127 62,181 65,484 67,998 69,351 Multifamily1............................................ 3,311 3,984 5,778 6,109 6,469 6,745 6,932 7,178 Commercial.............................................. 23,284 26,306 31,751 33,342 35,224 37,181 38,696 39,664 Farm......................................................... 4,351 4,205 4,781 4,970 5,240 5,378 5,442 5,475 Mutual savings banks................................... 57,948 61,978 67,556 68,920 70,634 72,034 73,231 73,957 1- to 4-family............................................ 37,342 38,641 41,650 42,524 43,003 43,738 44,247 44,462 Multifamily1............................................. 12,594 14,386 15,490 15,645 16,394 16,567 16,843 17,011 Commercial.............................................. 7,893 8,901 10,354 10,683 11,178 11,670 12,084 12,425 Farm......................................................... 119 50 62 68 59 59 57 59 Savings and loan associations...................... 150,331 174,250 206,182 213,050 222,580 229,182 232,104 236,514 1- to 4-family............................................ 124,970 142,275 167,049 172,528 180,423 185,706 188,051 191,529 Multifamily1............................................ 13,830 17,355 20,783 21,369 21,880 22,391 22,561 22,800 Commercial.............................................. 11,531 14,620 18,350 19,153 20,277 21,085 21,492 22,185 Life insurance companies............................. 74,375 75,496 77,319 77,587 77,914 79,040 81,180 81,971 1- to 4-family............................................ 26,676 24,604 22,466 22,190 21,816 21,826 22,000 21,804 Multifamily1............................................. 16,061 16,773 17,242 17,535 17,686 17,863 18,387 18,566 Commercial.............................................. 25,989 28,518 31,932 32,199 32,685 33,493 34,746 35,617 Farm.......................................................... 5,649 5,601 5,679 5,663 5,727 5,858 6,047 5,984 FEDERAL AND RELATED AGENCIES.. 32,992 39,357 45,790 47,252 48,991 53,008 55,664 58,430 1- to 4-family............................................... 21,993 26,453 30,147 30,708 31,276 33,725 35,454 37,168 Multifamily1................................................ 3,359 4,555 6,086 6,503 7,128 8,171 8,489 8,923 Commercial ................................................ 16 11 Farm............................................................. 7,624 8,338 9,557 10,041 10,587 11,112 11,721 12,339 Government National Mortgage Association 5,222 5,323 5,113 4,663 3,908 4,429 4,029 3,604 1- to 4-family............................................ 2,902 2,770 2,490 2,040 1,300 1,462 1,330 1,189 Multifamily1............................................. 2,304 2,542 2,623 2,623 2,608 2,967 2,699 2,415 Commercial ............................................ 16 11 Farmers Home Administration..................... 767 819 837 860 900 1,000 1,200 1,300 1- to 4-family............................................ 330 398 387 410 430 480 550 596 Farm......................................................... 437 421 450 450 470 520 650 704 Federal Housing and Veterans Administra­ tions ...................................................... 3,505 3,389 3,338 3,354 3,293 3,446 3,476 3,514 1- to 4-family............................................ 2,771 2,517 2,199 2,093 1,998 2,046 2,013 1,964 Multifamily1............................................ 734 872 1,139 1,261 1,295 1,400 1,463 1,550 Federal National Mortgage Association.... 15,502 17,791 19,791 20,571 21,413 22,831 24,175 24,875 1- to 4-family............................................ 15,181 16,681 17,697 18,217 18,521 19,479 20,370 20,516 Multifamily1............................................ 321 1,110 2,094 2,354 2,892 3,352 3,805 4,359 Federal land banks (farm only)................. 7,187 7,917 9,107 9,591 10,117 10,592 11,071 11,635 Federal Home Loan Mortgage Corporation. 357 964 1,789 1,718 2,029 2,423 2,604 2,637 1- to 4-family............................................ 357 934 1,754 1,698 1,973 2,294 2,446 2,472 Multifamily1............................................ 30 35 20 56 129 158 165 GNMA Pools................................................ 452 3,154 5,815 6,495 7,331 8,287 9,109 10,865 1- to 4-family............................................ 452 3,153 5,620 6,250 7,054 7,964 8,745 10,431 Multifamily1.......................................... 1 195 245 277 323 364 434 INDIVIDUALS AND OTHERS3................ 62,805 66,162 69,035 69,495 70,964 71,944 73,890 73,740 1- to 4-family................................................ 26,865 27,207 27,184 26,894 27,503 27,903 28,739 27,739 Multifamily1................................................ 8,868 10,314 11,206 11,375 11,573 11,784 12,182 12,282 Commercial.................................................. 13,579 13,977 15,286 15,517 15,786 16,075 16,837 17,337 Farm............................................................. 13,493 14,664 15,359 15,709 16,102 16,182 16,132 16,382 1 Structure of five or more units. sources, with some quarters estimated in part by Federal Reserve in 2 Includes loans held by nondeposit trust companies but not bank trust conjunction with the Federal Home Loan Bank Board and the Dept, of departments. Commerce. Separation of nonfarm mortgage debt by type of property, 3 Includes some U.S. agencies for which amounts are small or separate where not reported directly, and interpolations and extrapolations where data are not readily available. required, estimated mainly by Federal Reserve. Note.—Based on data from various institutional and Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ REAL ESTATE CREDIT A 45 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION- SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage End of holdings transactions commitments holdings transactions commitments period (during period) (during period) FHA- VA- Pur­ Made Out­ FHA Con­ Pur­ Made Out­ Total i in­ guar- chases Sales during stand­ Total VA ven­ chases Sales during stand­ sured anteed period ing tional period ing 197 0 15,492 11,063 4,429 5,079 20 8,047 5,203 325 325 325 197 1 17.791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 182 197 2 19.791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,298 408 1,606 198 197 3 24.175 16.852 6.352 6,127 71 8,914 7.889 2.604 1,743 861 1,334 409 1,629 186 1973—May. 21,087 15,581 5.335 472 1,180 9,312 1,906 1,695 211 147 17 187 344 June. 21,413 15,768 5,411 516 1,191 9,778 2,029 1,716 313 154 21 159 316 July. 21,772 15,877 5,574 516 1,102 9,859 2,158 1,714 444 140 139 278 Aug.. 22,319 16,085 5,761 699 1,019 9,809 2,307 1.728 579 161 208 291 Sept.., 22,831 16,293 5,937 633 724 9,602 2,423 1.729 694 126 143 288 Oct.., 23,348 16,510 6,101 659 264 8,918 2,527 1.742 785 113 63 218 Nov.., 23,912 16,734 6,294 656 200 8,690 2,565 1,746 819 46 45 207 Dec.., 24.175 16.852 6.352 410 40 158 7.889 2.604 1.743 861 50 43 186 1974—Jan... 24,424 17,008 6,348 350 110 6,715 2,621 1,736 885 34 26 161 Feb... 24,529 17,050 6.336 242 489 6,768 2,625 1.730 895 21 49 185 Mar... 24,875 17,315 6,340 462 1,646 7,913 2,638 1,724 914 29 595 748 Apr.., 25,263 17,450 6,503 526 2,154 9,292 2,722 1,756 967 101 400 1,037 May., 25,917 17,725 6,794 821 1,145 9,475 2,986 1,827 1,159 281 1,486 2,221 i Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms i Yields (per cent) in insured primary market loans—yield Period in private Contract Fees and Loan/price Purchase Loan secondary rate (per charges Maturity ratio price (thous. amount market 5 cent) (per cent)2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series 3 series 4 1970........................... 8.27 1.03 25.1 71.7 35.5 25.2 8.44 8.52 9.03 1971........................... 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972........................... 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.52 1973........................... 7.78 1.11 26.3 77.3 37.1 28.1 7.95 1973—June............... 7.62 1.08 26.3 78.0 35.8 27.5 7.79 8.05 7.89 July................ 7.69 1.11 26.3 78.1 37.0 28.3 7.87 8.40 8.19 Aug................ 7.77 1.08 26.7 76.7 38.6 28.9 7.94 8.85 Sept................ 7.98 1.19 26.6 77.3 37.2 28.2 8.17 8.95 9.18 Oct................. 8.12 1.20 26.1 76.9 38.5 29.0 8.31 8.80 8.97 Nov................ 8.22 1.08 26.0 75.5 38.9 28.8 8.39 8.75 8.86 Dec................. 8.31 1.12 25.6 75.5 37.7 28.0 8.49 8.75 8.78 1974—Jan................. 8.33 1.16 26.4 76.3 38.8 28.9 8.52 8.65 Feb................. 8.40 1.33 25.9 76.5 37.8 28.5 8.62 8.55 8.54 Mar................ 8,43 i .35 26.4 77.3 39.1 29.5 8.64 8.60 8.66 Apr................. 8.47 1.21 26.1 77.3 38.5 29.2 8.67 8.90 9.17 May............... 8.55 1.20 25.8 76.8 37.9 28.8 8.74 9.15 9.46 June*............. 8.63 1.28 26.7 76.8 40.1 30.4 8.84 1 Weighted averages based on probability sample survey of character­ (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in­ end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed pre­ costs related solely to transfer of property ownership. payment at the end of 15 years. Any gaps in data are due to periods of 3 Effective rate, reflecting fees and charges as well as contract rates adjustment to changes in maximum permissible contract interest rates. NOTE TO TABLE AT BOTTOM OF PAGE A-46: amortization and prepayment terms. Data for the following are limited to cases where information was available or estimates could be made: American Life Insurance Association data for new commitments of capitalization rate (net stabilized property earnings divided by property $100,000 and over each on mortgages for multifamily and nonresidential value); debt coverage ratio (net stabilized earnings divided by debt service); nonfarm properties located largely in the United States. The 15 companies and per cent constant (annual level payment, including principal and account for a little more than one-half of both the total assets and the interest, per $100 of debt). All statistics exclude construction loans, nonfarm mortgages held by all U.S. life insurance companies. Averages, increases in existing loans in a company’s portfolio, reapprovals, and loans which are based on number of loans, vary in part with loan composition secured by land only. by type and location of property, type and purpose of loan, and loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 REAL ESTATE CREDIT □ JULY 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1973 1974 Nov. 26 Dec. 17 Feb. 25 Mar. 11 Mar. 25 Apr. 8 Apr. 22 May 6 May 20 June 3 June 17 July 1 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................ 24.9 38.6 58.0 351.1 1,154.7 1,061.4 333.6 256.0 217.7 85.1 38.5 271.7 Accepted............................... 20.9 36.2 42.3 285.3 332.5 267.0 168.5 111.1 82.8 71.5 31.5 103.0 Conventional loans Offered1................................ 31.0 51.4 48.6 74.2 126.3 163.9 80.3 74.3 41.4 26.1 21.6 39.7 Accepted............................... 22.1 32.2 39.4 50.1 34.2 63.3 40.9 29.8 23.6 20.5 11.2 23.6 Average yield (per cent) on short­ term commitments 2 Govt.-underwritten loans........ 8.81 8.78 8.43 8.44 8.62 8.95 9.18 9.34 9.48 9.54 9.54 9.65 Conventional loans.................. 8.90 8.82 8.50 8.47 8.64 9.00 9.21 9.44 9.63 9.70 9.69 9.76 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding requirepaid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Dec. 31, Dec. 31, Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Holder 1970 1971 1972 1973 1973 1973 1973 All holders.................................................. 109.2 120.8 131.1 132.4 133.6 133.8 135.0 FHA........................................................ 91.7 81.3 86.4 86.6 86.4 85.6 85.0 VA............................................................ 37.3 39.5 44.7 45.8 47.2 48.2 50.0 Commercial banks............................. 10.5 11.3 11.7 11.7 11.7 11.4 11.2 FHA........................................................ 7.9 8.3 8.5 8.5 8.5 8.2 7.9 VA............................................................ 2.6 3.0 3.2 3.2 3.2 3.2 3.3 Mutual savings banks................................. 28.1 28.2 28.6 28.7 28.7 28.6 28.4 FHA........................................................ 16.1 16.1 16.0 15.9 15.8 15.7 15.5 VA............................................................ 12.0 12.1 12.6 12.8 12.9 12.9 12.9 Savings and loan assns............................... 18.7 24.3 28.9 V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 0 . . 5 2 1 1 3 0 . . 7 6 1 13 5 . . 5 4 ) 29.5 1 29.8 ) 30.1 } 29.7 Life insurance cos........................................ 16.8 15.8 14.7 14.3 14.0 13.7 13.6 FHA........................................................ 11.4 10.8 10.0 9.7 9.5 9.3 9.2 VA............................................................ 5.4 5.0 4.7 4.6 4.5 4.4 4.4 Others.......................................................... 35.1 41.2 47.2 48.2 49.4 50.0 52.1 FHA........................................................ 26.3 32.4 36.5 VA............................................................ 8.8 8.8 10.7 Note.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. 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 /m ur o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C (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 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 23/0 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 See Note on p. A-45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ CONSUMER CREDIT A 47 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Charge accounts Auto­ consumer improve­ Personal Single­ Service Total mobile goods ment loans Total payment credit paper paper loans 1 loans Retail Credit outlets cards 2 1965.................... 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 1966.................... 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 1967.................... 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 1968.................... 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 1969.................... 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5,936 1,437 6,921 1970..................... 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 6,163 1,805 7,456 1971..................... 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 6,397 1,953 8,164 1972..................... 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 1973..................... 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1973—May......... 164,277 133,531 47,518 41,096 6,541 38,376 30,746 12,817 6,387 1,932 9,610 June......... 167,083 136,018 48,549 41,853 6,688 38,928 31,065 12,990 6,544 2,011 9,520 July , , 169,148 138,212 49,352 42,575 6,845 39,440 30,936 12,968 6,424 2,055 9,489 Aug.......... 171,978 140,810 50,232 43,505 7,009 40,064 31,168 13,111 6,475 2,130 9,452 Sept.......... 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 6,229 2,106 9,519 Oct........... 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 6,554 2,036 9,495 Nov-........ 176,969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 6,761 2,024 9,623 Dec........... 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1974—Jan........... 178,686 146,575 50,617 47,303 7,303 41,352 32,111 13,117 6,894 1,981 10,119 Feb........... 177,522 145,927 50,386 46,781 7,343 41,417 31,595 13,159 6,136 1,882 10,418 Mar.......... 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 6,097 1,842 10,677 Apr.......... 179,495 147,047 50,606 47,017 7,573 41,851 32,448 13,315 6,556 1,878 10,699 May......... 181,680 148,852 51,076 47,588 7,786 42,402 32,828 13,331 6,948 1,999 10,550 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans- For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,’ Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit v------------ --------—' 1965..................... 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 1966..................... 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 1967..................... 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 1968..................... 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 1969..................... 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 1970..................... 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 1971............... 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 1972..................... 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 1973..................... 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1973—May......... 75,066 63,707 17,716 11,680 6,321 5,360 5,538 3,635 1,868 11,589 11,359 June......... 76,519 64,999 18,138 11,866 6,473 5,502 5,688 3,700 1,909 11,723 11,520 July.......... 77,556 66,065 18,439 12,023 6,629 5,603 5,815 3,774 1,934 11,848 11,491 Aug.......... 79,036 67,381 18,771 12,190 6,825 5,792 5,923 3,863 1,982 12,035 11,655 Sept.......... 79,526 67,918 18,886 12,160 6,956 5,909 5,978 3,903 2,027 12,099 11,608 Oct........... 80,281 68,627 19,123 12,262 7,106 5,991 6,012 3,950 2,060 12,123 11,654 Nov.......... 80,830 69,161 19,198 12,306 7,208 6,171 6,035 3,979 2,085 12,179 11,669 Dec.......... 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1974—Jan........... 81,081 69,429 18,885 12,113 7,237 6,826 6,041 3,944 2,167 12,216 11,652 Feb........... 80,909 69,246 18,770 12,028 7,285 6,770 6,063 3,937 2,173 12,220 11,663 Mar.......... 80,918 69,232 18,775 11,985 7,333 6,667 6,082 3,958 2,169 12,263 11,686 Apr.......... 81,750 69,944 18,896 12,039 7,399 6,761 6,208 4,028 2,180 12,433 11,806 May......... 82,527 70,721 19,037 12,100 7,491 6,887 6,323 4,135 2,199 12,549 11,806 See also Note to table at top of page- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 JULY 1974 □ CONSUMER CREDIT INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other consumer End of period Auto­ goods paper Home Per­ Mis­ Auto­ Other Total mobile improve­ sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders 1 dealers outlets Mobile Other loans homes 1965....................... 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 1966....................... 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 1967....................... 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 1968....................... 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 1969....................... 27,846 9,412 5,'175 174 12,485 13,722 12,028 1,694 13,116 250 12,866 1970.................... 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 1971....................... 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 1972....................... 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 1973....................... 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1973—May............ 33,859 10,872 3,025 3,985 656 15,321 20,599 17,832 2,767 15,366 284 15,082 June............ 34,367 11,121 3,081 4.002 694 15,469 21,084 18,269 2,815 15,568 289 15,279 July............. 35,020 11,365 3,132 4,103 733 15,687 21,394 18,517 2,877 15,733 293 15,440 Aug............. 35,634 11,583 3,187 4,194 771 15,899 21,808 18,961 2,847 15,987 296 15,691 Sept............. 35,993 11,721 3,235 4,265 809 15,963 22,129 19,207 2,922 16,053 297 15,756 Oct.............. 36,365 11,859 3,269 4,316 847 16,074 22,315 19,339 2,976 16,303 300 16,003 Nov............. 36,887 11,949 3,310 4,371 886 16,371 22,505 19,517 2,988 16,847 302 16,545 Dec............. 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1974—Jan.............. 37,140 11,754 3,392 4,460 940 16,594 22,301 19,429 2,872 17,705 296 17,409 Feb.............. 37,148 11,710 3,406 4,486 968 16,578 22,413 19,430 2,983 17,120 293 16,827 Mar............. 37,005 11,624 ‘ 3,324 4,497 1,018 16,542 22,562 19,550 3,012 16,969 292 16,677 Apr............. 37,291 11,684 3,364 4,547 1,057 16,639 22,753 19,704 3,049 17,059 293 16,766 May............ 37,751 11,810 3,413 4,583 1,097 16,848 23,203 20,053 3,150 17,177 294 16,883 i Saving? and loan associations and mutual savings banks. See also Note to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies Month New Mobile Other Personal Credit- Automobiles Other automo­ homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1972—May.......... 9.96 10.73 12.44 12.63 17.24 11.86 16.47 12.29 19.31 21.23 June.......... 9.98 10.49 12.38 12.65 17.25 11.85 16.52 July........... 9.97 10.77 12.39 12.73 17.25 11.84 16.57 ’ii!25* * i9!38 * 21.26 Aug........... 10.02 10.71 12.47 12.72 17.25 11.85 16.62 Sept........... 10.02 10.67 12.47 12.70 17.25 11.88 16.71 12.41 19.15 21.05 Oct............ 10.01 10.66 12.38 12.70 17.23 11.86 16.67 Nov........... 10.02 10.85 12.44 12.63 17.23 11.89 16.78 '12.41' "lS.90 "21.22 10.01 10.69 12.55 12.77 17.24 11.92 16.87 1973—Jan............. 10.01 10.54 12.46 12.65 17.13 11.89 16.08 12.51 19.04 21.00 Feb............ 10.05 10.76 12.51 12.76 17.16 11.86 16.20 Mar........... 10.04 10.67 12.48 12.71 17.19 11.85 16.32 ’ii!54‘ is!92 * 26! 79 Apr............ 10.04 10.64 12.50 12.74 17.19 11.88 16.44 May.......... 10.05 10.84 12.48 12.78 17.22 11.91 16.52 12.73 18.88 20.76 June.......... 10.08 10.57 12.57 12.78 17.24 11.94 16.61 July........... 10.10 10.84 12.51 12.75 17.21 12.02 16.75 12.77 i 8.93 20.55 Aug........... 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept........... 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 Oct............ 10.53 10.98 12.80 13.02 17.23 12.34 17.11 Nov........... 10.49 11.19 12.75 12.94 17.23 12.40 17.21 "i3!ii' is!77 * 26! 65 Dec............ 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan............. 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 Feb............ 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar........... 10.50 10.92 12.82 13.04 17.23 12.29 16.69 * ii!is* i8!68 * 2o! 52 Apr............ 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May.......... 10.63 10.96 12.88 13.10 17.25 12.36 16.86 Note.—Rates are reported on an annual percentage rate basis as specified maturities; finance company rates are weighted averages for specified in Regulation Z (Truth in Lending) of the Board of Governors. purchased contracts (except personal loans). For back figures and descrip- Commercial bank rates are “most common” rates for direct loans with tion of the data, see Bulletin for Sept. 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ CONSUMER CREDIT A 49 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) By type By holder Period Total Automobile Other Home Personal Commercial Finance Other Retail paper consumer improve­ loans banks companies financial outlets goods paper ment loans lenders Extensions 1966........................... 82,832 27,192 26,329 2,223 27,088 30,073 25,897 10,368 16,494 1967........................... 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 1968........................... 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 1969........................... 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 1970........................... 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 1971........................... 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 1972........................... 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 1973........................... 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1973—May............... 13,932 3,989 5,504 374 4,065 5,859 3,820 1,868 2,385 June............... 13,646 3,762 5,505 400 3,979 5,684 3,584 1,978 2,400 July................ 14,542 3,930 5,943 433 4,236 5,976 3,824 2,110 2,632 Aug................ 14,294 3,968 5,961 408 3,957 6,195 3,685 1,943 2,471 Sept................ 13,691 3,939 5,537 410 3,805 5,809 3,602 2,019 2,261 Oct................. 14,149 3,912 5,911 415 3,911 6,060 3,623 1,951 2,515 Nov................ 14,275 3,819 5,978 402 4,076 6,222 3,564 2,029 2,460 Dec................. 12,677 3,315 5,254 429 3,679 5,124 3,279 1,897 2,377 1974—Jan................. 13,714 3,492 5,662 373 4,187 5,715 3,693 1,911 2,395 Feb................. 13,541 3,389 5,647 409 4,096 5,794 3,656 1,861 2,230 Mar................ 13,823 3,484 5,933 424 3,982 5,710 3,497 1,976 2,640 Apr................. 14,179 3,545 6,034 447 4,153 5,838 3,671 2,054 2,616 May............... 14,669 3,769 6,156 468 4,276 6,023 3,832 2,140 2,674 Repayments 196 6 77,480 25.619 24,080 2,118 25,663 27,716 24,952 9,342 15,470 196 7 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 196 8 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 196 9 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 197 0 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20.742 197 1 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 197 2 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22.742 197 3 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1973—May, 11,941 3,261 4,917 290 3,473 4,976 3,100 1,612 2,253 June 12,034 3,253 4,955 300 3,526 4,890 3.241 1,694 2,209 July. 12,544 3,334 5,141 308 3,761 5,112 3,312 1,771 2,349 Aug. 12,399 3,293 5,168 298 3,640 5,146 3.241 1,738 2,274 Sept. 12,332 3,406 5,072 322 3,532 5,167 3,144 1,757 2,264 Oct.. 12,449 3,427 5,149 308 3,565 5,212 3,287 1,703 2.247 Nov. 12,549 3,471 5,154 301 3,623 5,345 3,143 1,814 2.247 Dec. 12,267 3,338 5,001 332 3,596 5,088 3,151 1,766 2,262 1974—Jan.. 12,797 3,433 5,193 356 3,815 5,254 3,418 1,823 2,302 Feb., 12,870 3,394 5,340 323 3,813 5,430 3,423 1,692 2,325 Mar. 13,206 3,544 5,596 308 3,758 5,479 3,452 1,827 2,448 Apr. 13,026 3,498 5,483 312 3,733 5,470 3,375 1,784 2,397 May 13,407 3,601 5.607 315 3,884 5,573 3,528 1,855 2,451 Net change 1966........................... 5,352 1,573 2,249 105 1,425 2,357 945 1,026 1,024 1967........................... 3,183 -214 1,657 167 1,573 1,833 -220 901 669 1968........................... 8,317 3,152 2,237 231 2,697 4,784 1,498 1,501 534 1969........................... 9,360 2,579 3,687 374 2,720 4,485 1,772 2,005 1,098 1970........................... 4,959 -343 3,152 457 1,693 2,977 -168 1,366 784 1971........................... 9,231 3,480 2,888 343 2,520 5,842 1,205 1,933 251 1972........................... 16,037 5,465 5,727 788 4,057 8,543 3,205 2,490 1,799 1973........................... 20,105 7,001 7,450 1,151 4,503 9,712 5,155 3,056 2,182 1973—May............... 1,991 728 587 84 592 883 720 256 132 June............... 1,612 509 550 100 453 794 343 284 191 July................ 1,998 596 802 125 475 864 512 339 283 Aug................ 1,895 675 793 110 317 1,049 444 205 197 Sept................ 1,359 533 465 88 273 642 458 262 -3 Oct................. 1,700 485 762 107 346 848 336 248 268 Nov................ 1,726 348 824 101 453 877 421 215 213 Dec................. 410 -23 253 97 83 36 128 131 115 1974—Jan................. 917 59 469 17 372 461 275 88 93 Feb................. 671 -5 307 86 283 364 233 169 -95 Mar................ 617 -60 337 116 224 231 45 149 192 Apr................ 1,153 47 551 135 420 368 296 270 219 May............... 1,262 168 549 153 392 450 304 285 223 Note.—Monthly estimates are seasonally adjusted and include adjust­ stalment paper, and certain other transactions may increase the amount ments for differences in trading days. Annual totals are based on data of extensions and repayments without affecting the amount outstanding. not seasonally adjusted. For back figures and description of the data, see “Consumer Credit,” Estimates are based on accounting records and often include finance Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, charges. Renewals and refinancing of loans, purchases and sales of in­ and Bulletins for Dec. 1968 and Oct. 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 INDUSTRIAL PRODUCTION: S.A. □ JULY 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro­ aver­ Grouping p ti o o r n ­ age June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. May*5 June Total index..................................... 100.0 125.6 125.6 126.7 126.5 126.8 127.0 127.5 126.5 125.4 124.6 124.7 124.9 125.,5 125..5 Products, total................................... 62.21 123.4 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.9 122.4 122.6 122.8 123.4 123.1 Final products................................. 48.95 121.3 121.3 122.1 121.4 122.4 122.7 123.7 122.6 121.2 120.6 121.0 121,.0 121,.9 121,J Consumer goods........................ 28.53 131.7 131.9 132.8 131.2 132.3 132.6 133.5 131.3 129.2 128.3 128.5 128..7 129,.5 128..7 Equipment.................................. 20.42 106.7 106.6 107.3 107.6 108.5 108.9 110.1 110.1 109.8 109.9 110.1 110.,4 111.,3 110.,5 Intermediate products................... 13.26 131.1 132.0 132.5 132.1 131.0 130.6 131.1 129.1 129.2 129.1 128.2 129..3 129..6 130.,4 Materials............................................ 37.79 129.3 129.0 130.9 130.9 131.3 131.1 131.5 130.7 129.7 128.3 128.8 128.,5 129.0 129.4 Consumer goods Durable consumer goods.................... 7. 139.0 141.8 142.4 134.0 138.2 137.3 138.5 134.6 128.2 126.4 128.5 130.4 132.7 131.2 Automotive products..................... 2.84 136.8 142.6 141.7 121.1 129.8 131.4 133.7 120.6 108.0 106.6 108.0 112.7 116.8 114.7 Autos.......................................... 1.87 125.4 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 100.3 99.6 Auto parts and allied goods.... .97 158.9 161.9 156.7 154.2 151.8 148.4 150.9 147.8 142.6 145.5 149.8 141.5 148.4 143.6 Home goods....................................... 5.02 140.3 141.3 142.9 141.1 142.9 140.9 141.2 142.5 139.6 137.5 140.1 140.5 141.7 140.6 Appliances, TV, and radios.......... 1.41 144. 147.2 147.8 146.3 149.4 143.4 140.4 147.9 138.4 131.9 135.8 135.1 136.6 Appliances and A/C.............. .92 156.9 154.1 156.0 153.3 159.8 159.3 154.7 172.2 153.9 148.2 150.0 149.1 151.1 TV and home audio............... .49 Carpeting and furniture................ 1.08 150.0 148.9 155.4 154.2 153.3 153.9 152.7 150.1 153.5 153.3 154.5 158.2 157.7 Misc. home goods......................... 2.53 133.6 134.7 134.7 132.9 134.8 134.1 136.8 136.3 134.4 134.2 136.3 136.0 137.7 136.5 Nondurable consumer goods.............. 20.67 129.0 128.1 129.1 130.2 130.1 130.8 131.5 130.2 129.5 129.1 128.7 128.0 127.8 Clothing.......................................... 4.32 116.0 116.0 116.5 117.0 118.0 116.8 117.3 120.3 116.3 114.5 112.0 107.2 Consumer staples........................... 16.34 132.4 131.4 132.5 133.6 133.2 134.5 135.2 132.8 133.0 133.0 133.1 133.5 133.9 133.2 Consumer foods and tobacco... 8.37 122.2 119.6 121.3 121.9 122.2 123.3 126.5 125.0 126.9 125.9 125.7 124.4 124.4 123.9 Nonfood staples......................... 7.98 143.1 143.7 144.1 145.8 144.8 146.2 144.3 141.1 139.4 140.4 140.8 143.0 143.8 142.9 Consumer chemical products. 2.64 153.3 153.5 153.0 155.6 153.4 156.2 154.9 156.7 157.8 159.0 160.3 159.7 160.0 Consumer paper products.... 1.91 121.3 121.7 122.5 124.1 124.4 122.5 123.6 120.5 119.4 119.9 119.1 119.4 120.0 Consumer fuel and lighting.. 3.43 147.5 148.2 149.2 150.4 149.7 151.9 147. 140.7 136.7 137.4 138.2 143.2 144.4 Residential utilities............. 2.25 156.8 155.4 157. 160.0 160.9 161.9 158.0 149.8 145.6 148.6 149.0 151.6 152.5 Equipment Business equipment..................... 12.74 122.6 122.5 123.0 124.6 125.8 126.2 127.8 126.9 126.8 127.3 127.6 128.3 129.1 128.0 Industrial equipment.............. 6.77 120.1 119.8 120.5 122.5 124.1 124.5 125.6 124.9 125.3 126.6 126.8 128.5 128.4 127.6 Building and mining equip., 1.45 120.4 119.1 119.6 123.0 123.7 124.7 126.0 126.0 128.5 130.3 131.3 137.9 135.5 135.5 Manufacturing equipment., 3.85 113.0 113.1 113.9 115.1 117.3 117.3 118.2 118.5 119.3 120.6 121.1 122.1 122.0 122.3 Power equipment................ 1.47 138.5 138.3 138.5 141.0 142.3 143.0 144.6 140.3 138.0 138.7 137.3 136.6 138.1 137.8 Commercial, transit, farm eq.. 5.97 125.5 125.4 125. 127.0 127.7 128.1 130.3 129.2 128.5 128.2 128.7 128.0 129.9 128.4 Commercial equipment.... 3.30 135.0 134.1 135.9 137.0 138.2 140.1 141.3 139.3 139.8 139.8 140.8 140.4 141.2 139.5 Transit equipment.............. 2.00 109.8 109.7 109.0 108.4 109.6 109.8 111.4 111.1 109.5 109.3 109.4 106.1 110.0 108.4 Farm equipment................. .67 125.1 129.3 126.4 132.8 129.4 123.5 132.4 133.4 129.2 126.0 126.1 131.2 133.4 Defense and space equipment. 7.68 80.2 80.1 81.1 79.7 79.8 80.0 80.9 81.9 81.4 80.9 81.0 80.6 81.7 81.4 Military products................ 5.15 80.3 80.0 81.1 79.0 79.1 79.3 80.0 81.3 80.6 80.2 80.5 80.0 80.4 79.6 Intermediate products Construction products.......... 5.93 134.2 135.9 134.5 135.3 134.9 134.3 133.7 131.1 133.0 131.3 129.6 130.8 132.2 133.4 Misc. intermediate products. 7.34 128.6 128.9 132.7 129.6 128.1 127’. 5 129.0 127.4 126.3 127.4 127.5 128.0 127.5 Materials Durable goods materials.,.. 20.91 130.1 129.2 131.7 131.8 132.3 132.2 133.0 132.7 129.8 127.3 127.2 127.0 128.2 128.9 Consumer durable parts. 4.75 127.8 128 126 128.6 129.9 128.2 128.4 121.0 113.0 109.3 110.6 112.6 114.2 115.7 Equipment parts............. 5.41 119.3 118.2 124.5 122.3 122.1 122.7 125.8 125.3 123.9 122.6 121.6 119.7 122.9 123.0 Durable materials nec... 10.75 136.5 134.9 137.6 138.0 138.7 139.0 138.7 141.6 140.0 137.6 137.5 137.1 137.2 137.7 Nondurable goods materials........... 13.99 129.1 129.4 130.4 130.6 130.3 130.1 130.7 129.2 131.1 131.1 131.9 131.8 130.9 131.0 Textile, paper, and chem. mat.. 8.58 139.8 140.2 142.2 142.4 141.9 141.4 142.4 140.1 143.4 141.7 143.1 144.0 142 143.0 Nondurable materials n.e.c....... 5.41 112.2 112.3 112.1 111 112.0 112.3 112.1 111.9 111.7 114.3 114.7 112.3 112.2 112.1 Fuel and power, industrial........... 2.89 123.9 125.3 126.9 126.3 128.3 126.9 124.9 123.1 121.5 122.5 122.6 123.3 124. 125.1 Supplementary groups Home goods and clothing. 9.34 129.0 129.7 130.7 130.0 131.3 129. 130.2 132.4 128.8 126.9 127.0 125.1 125 Containers.......................... 1.82 139.9 141.4 135.1 140.5 139.8 141.2 142.3 141.0 148.4 144.3 151.4 148.4 145.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. 286.3 449.8 451.8 452.9 446.2 449 452.6 456.9 449.1 445.4 442.5 443.9 445.2 448.7 447.1 Final products............ 221.4 346.1 347.8 347.7 341.9 346.3 349.7 353.3 346.9 342.5 339.9 342.3 343.1 346.5 344.4 Consumer goods.. . 156.3 239.7 241.3 241.0 235.4 239.0 241.7 243.6 237.8 233.6 230.6 232.7 234.0 236.0 234.9 Equipment............... 65.3 106.4 106.6 106.6 106.6 107.3 108.0 109.5 109.0 108.9 109.1 109.4 109.2 110.5 109.6 Intermediate products. 64.9 103.7 104.3 104. 104.6 103.5 103.1 103.6 102.5 103.1 102.6 101.9 102.1 102.1 102.9 For Note see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) p 19 ro 67 - 1973 1973 1974 Grouping por­ age tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. May* 88.55 125.2 125.6 126.5 126.1 126.3 126.4 127.4 126.4 125.3 124.5 124.6 124.8 125.6 125.5 Durable............................................ 52.33 122.1 123.0 123.8 122.6 123.3 123.5 124.3 123.1 121.1 119.4 120.4 120.6 121.9 122.0 Nondurable...................................... 36.22 129.6 129.3 130.5 130.9 130.7 130.4 131.3 131.2 131.4 131.5 130.9 130.8 131.1 130.8 Mining and utilities............................. 11.45 128.9 128.2 130.4 130.7 131.3 131.5 130.6 126.9 125.4 126.9 127.3 127.9 127.8 127.6 6.37 110.2 109.5 111.0 111.5 111.8 111.9 111. 3 110.4 109.9 111.7 112.2 111.3 111.6 111.1 5.08 152.3 151.5 154.8 154.8 155.8 156.2 154.6 147.6 144.9 146.1 146.5 148.7 148.7 148.5 Durable manufactures 12.55 128.8 128.7 130.6 129.5 129.5 130.6 131.0 130.5 130.4 127.6 128.2 127.6 128.1 128.8 Primary metals................................. 6.61 127.1 124.5 128.1 125.6 127.8 128.7 128.9 130.7 129.5 125.0 125.3 124.3 125.0 126.0 Iron and steel, subtotal............... 4.23 121.6 119.9 120.9 118.5 122.7 123.6 124.2 127.7 125.5 119.4 119.6 116.4 117.5 118.3 Fabricated metal products.............. 5.94 130.7 133.4 133.5 133.8 131.5 132.4 133.1 130.0 131.4 130.6 131.6 131.3 131.6 131.8 32.44 117.3 118.8 119.3 117.7 118.9 118.9 119.9 118.6 115.2 113.8 114.8 115.2 117.0 116.9 Machinery......................................... 17.39 125.9 126.9 127.6 128.5 130.0 129.2 130.4 130.9 128.6 121.2 128.4 128.0 129.6 129.7 Nonelectrical machinery............. 9.17 125.1 126.1 127.1 128.9 130.0 130.0 130.3 130.2 129.4 128.1 129.8 130.5 131.5 131.5 8.22 126.8 127.8 128.0 128.2 129.8 128.5 130.5 131.6 127.7 126.2 126.8 125.3 127.4 127.5 Transportation equipment.............. 9.29 109.2 112.2 112.1 105.7 107.3 108.8 109.8 103.0 95.7 93.9 95.0 97.3 100.4 99.6 Motor vehicles and parts............ 4.56 138.1 143.3 144.1 131.0 133.9 136.4 137.8 124.6 112.7 109.2 110.2 116.5 119.2 118.4 Aerospace and misc. trans. eq... 4.73 81.4 82.2 81.3 81.3 81.7 82.3 82.9 82.2 79.3 79.3 80.3 78.8 82.2 81.6 Instruments....................................... 2.07 138.4 140.2 140.8 140.9 141.5 141.0 142.6 142.7 143.0 142.8 142.8 143.8 143.8 144.6 Ordnance, private and Govt........... 3.69 85.4 86.7 86.7 83.8 83.7 83.8 84.3 86.1 85.2 84.2 84.9 84.7 85.1 85.4 Lumber, clay, and glass....................... 4.44 129.5 129.2 129.8 129.2 128.8 129.7 129.3 127.8 129.7 127.4 128.1 130.2 130.4 129.3 Lumber and products..................... 1.65 128.9 126.6 125.4 128.4 128.9 127.4 127.3 126.3 126.1 127.1 126.1 130.3 130.3 Clay, glass, and stone products---- 2.79 129.9 130.5 132.3 129.6 128.8 131.2 130.4 128.7 131.8 127.6 129.3 130.1 130.4 Furniture and miscellaneous................. 2.90 135.2 135.4 135.9 137.5 138.2 136.1 136.4 135.3 133.4 135.2 136.8 136.8 136.4 137.2 Furniture and fixtures..................... 1.38 126.3 126.5 127.5 129.5 130.4 128.8 127.9 124.9 124.2 125.4 126.8 128.8 128.0 Miscellaneous manufactures........... 1.52 143.3 143.6 143.5 144.9 145.3 142.9 144.3 144.5 141.8 144.2 145.8 144.1 144.1 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 114.7 115.0 114.5 115.4 117.5 116.8 116.7 118.8 116.2 115.3 112.4 109.5 110.3 109.1 Textile mill products....................... 2.69 127.1 129.2 128.9 129.0 130.2 130.2 129.4 130.9 128.4 127.6 125.0 122.2 124.9 Apparel products............................. 3.33 112.9 111.0 112.1 113.6 115.4 114.9 115.3 118.5 116.4 113.6 110.0 105.8 .88 83.6 86.6 79.2 81.0 86.4 83.1 82.9 82.9 77.6 83.7 83.0 84.4 83.0 Paper and printing............................... 7.92 122.1 122.8 123.8 124.5 122.1 121.3 121.9 121.2 121.7 122.2 122.5 123.5 122.3 123.0 Paper and products......................... 3.18 135.4 134.6 135.3 137.0 134.8 135.3 136.2 136.7 138.7 137.6 140.2 141.2 136.7 4.74 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 110.4 111.9 110.7 111.7 112.6 i i 35 Chemicals, petroleum, and rubber.... 11.92 149.3 149.8 151.8 151.0 150.9 151.1 151.6 151.6 151.5 151.2 151.3 153.1 153.5 153.4 Chemicals and products.................. 7.86 150.1 150.4 152.0 151.4 153.0 152.7 153.0 154.5 154.9 155.3 155.5 156.3 156.9 156.4 Petroleum products......................... 1.80 127.4 129.7 129.3 128.2 126.0 130.4 129.5 125.5 120.5 116.9 117.3 124.6 124.9 125.4 Rubber and plastics products......... 2.26 164.0 163.9 168.8 167.9 163.6 161.9 164.5 162.3 164.3 163.5 164.2 165.1 164.9 Foods and tobacco............................... 9.48 121.9 119.5 121.3 122.0 122.2 121.7 124.7 123.0 125.4 126.2 125.3 124.8 125.4 124.8 Foods................................................ 8.81 122.7 120.3 122.4 122.9 123.2 122.4 125.4 124.5 126.3 127.2 126.5 126.0 126.6 126.0 Tobacco products............................ .67 111.6 108.1 105.3 110.1 109.1 113.7 115.8 104.2 113.3 112.1 110.4 109.6 Mining 1.26 118.1 111.8 116.9 120.6 120.4 120.9 121.3 122.0 121.4 119.9 119.7 117.2 118.0 115.1 Metal mining................................... .51 130.8 121.6 128.4 131.4 136.6 138.3 135.2 135.2 135.2 132.2 132.9 126.6 128.3 Stone and earth minerals................ .75 109.5 105.2 109.1 113.1 109.5 109.2 111.7 113.1 111.9 111.6 110.7 110.7 111.0 Coal, oil, and gas................................. 5.11 108.3 108.9 109.5 109.2 109.5 109.7 108.8 107.5 107.0 109.6 110.2 109.8 110.0 110.2 .69 103.6 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.7 114.7 110.3 113.6 114.7 4.42 109.0 109.1 109.5 110.0 109.7 110.8 109.6 107.0 106.8 109.1 109.5 109.7 109.5 109.5 Utilities Electric.................................................. 3.91 160.7 159.7 164.0 163.8 165.1 165.3 163.4 155.6 153.0 154.6 155.1 158.3 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 52 BUSINESS ACTIVITY; CONSTRUCTION □ JULY 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Products tion struc­ tural Total Period Total Total C Fi o n n a ­ l m In ed te ia r­ te M ri a a t l e s ­ f M a i c a n t n g u u r­ ­ i o = n ( u 1 m 1 t 9 p 0 6 f u 0 g 7 ) t . tr c t a i o o c n n ts ­ T m p e o e l m o t n a y t ­ l — ­ i p m E lo e m n y ­ t ­ r P o a l y ls ­ s r a e l t e a s il 3 s C um on e ­ r m W c s o o h a d m l o e i l t ­ e y ­ Total sumer Equip­ 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. 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. 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. 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. 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. 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. 111.9 123.6 95.5 121.1 117.4 114.0 r78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 197 3 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 183.3 114.8 101.9 146.9 133.1 134.7 1973— J M un ay e. . 1 1 2 24 5 . .6 1 1 2 2 3 2 . .9 7 1 1 2 2 1 0. . 8 3 1 13 3 1 1 . .9 1 1 0 0 6 5 . . 6 7 1 1 3 3 2 0 . .5 0 1 1 2 2 9 8. . 3 0 1 1 2 2 5 4 . .9 6 >5r83.3 1 1 8 73 3. .0 0 1 1 1 1 4 4 . . 7 4 1 1 0 0 2 1 . . 1 7 1 1 4 4 5 4 . .9 3 1 15 5 7 9 1 1 3 31 2 . . 5 4 1 13 33 6 . . 2 0 July. 126.7 124.2 122.1 132.8 107.3 132.5 130.9 126.5 175.0 114.6 101.8 146.3 163 132.7 134.3 Aug. 126.5 123.7 121.4 131.2 107.6 132.1 130.9 126.1 * 83.3 199.0 115.0 102.1 146.7 162 135.1 142.1 Sept. 126.8 124.3 122.4 132.3 108.5 131.0 131.3 126.3 182.0 115.3 102.1 149.8 163 135.5 139.7 Oct.. 127.0 124 122.7 132.6 108.9 130.6 131.1 126.4 191.0 116.0 102.9 151.7 164 136.6 138.7 Nov. 127.5 125.3 123.7 133.5 110.1 131.1 131.5 127.4 > 82.6 194.0 116.4 103.3 155.8 164 137.6 139.2 Dec.. 126 124.0 122.6 131.3 110.1 129.1 130.7 126.4 161.0 116.4 103.2 153.7 161 138.5 141.8 1974—Jan.. 125.4 122.9 121.2 129.2 109.8 129.2 129.7 125.3 155.0 116.2 102.6 151.6 164 139.7 146.6 Feb.. 124.6 122.4 120.6 128.3 109.9 129.1 128.3 124.5 | r80.5 187.0 116.6 101.8 151.1 165 141.5 149.5 Mar. 124.7 122.6 121.0 128.5 110.1 128.2 128.8 124.6 181.0 116.6 101.5 150.5 168 143.1 151.4 Apr., 124.9 122.8 121.0 128.7 110.4 129.3 128.5 124.8 179.0 116.8 101.9 147.9 169 144.0 152.7 May, 125.5 123.4 121.9 129.5 111.3 129.6 129.0 125.6 \ 80.1 188.0 rl 17.2 r102.0 M54.5 171 145.6 155.0 June 125.5 123.1 121.1 128.7 110.5 130.4 129.4 125.5 117.1 101.8 154.8 169 155.7 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 second 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. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. f otal construction 1......................... 90,979101,071 6,423 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911 8,929 By type of ownership: Public........................................ 24,043 26,686 1,629 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481 2,336 Private 1.................................... 66,936 73,385 4,793 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430 6,593 By type of construction: Residential building 1.............. 44,975 46,246 3,115 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374 3,924 Nonresidential building........... 27,021 31,761 2,189 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752 2,842 Nonbuilding............................. 18,983 22,064 1,119 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785 2,163 Private housing units authorized... 2,219 1,796 2,399 1,838 2,030 1,780 1,750 1,596 1,316 1,314 1,237 1,301 1,333 1,461 1,300 (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

JULY 1974 □ CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Resi­ Buildings Mili­ High­ C v o a n ti s o e n r­ Total dential Total In tr d ia u l s­ m C e o rc m ia ­ l b O in u t g i h s l e d r 1 ­ Other Total tary way de m v an e e l n d o t p­ Other 2 1962 3 .......................... 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 .......................... 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 ............................. 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1,750 10,590 1965 ............................. 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 ............................. 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 ............................. 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 ............................. 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 ............................. 93,368 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 1970.............................. 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 1971r............................ 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 1972r............................ 124,077 93,893 54,288 39,605 4,676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 1973 r............................ 135,437 102,875 57,604 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 1973'-May................... 134,547 101,931 57,582 44,349 5,776 15,426 5,926 17,221 32,616 1,286 10,023 2,479 18,828 June.................. 134,694 103,209 58,208 45,001 6,035 15,586 6,019 17,363 31,485 1,167 9,988 2,264 18,066 July................... 137,172 105,562 59,145 46,417 6,477 15,976 6,093 17,871 31,610 1,231 10,727 2,097 17,555 Aug................... 137,351 105,475 59,280 46,195 6,436 15,754 5,854 18,151 31,876 1,100 10,606 2,226 17,944 Sept................... 137,283 104,119 58,048 46,071 6,820 15,446 5,674 18,131 33,164 1,026 11,128 2,354 18,656 Oct.................... 136,363 130,197 56,233 46,964 6,748 15,762 5,860 18,594 33,166 1,079 10,566 2,300 19,221 Nov................... 135,594 102,172 54,450 47,722 7,080 16,054 5,727 18,861 33,422 1,060 10,952 2,362 19,048 Dec.................... 133,169 100,057 52,304 47,753 7,343 15,890 5,913 18,607 33,112 1,082 11,168 2,314 18,548 1974—Janr................... 132,487 97,647 49,802 47,845 6,831 15,762 6,058 19,194 34,840 1,305 Feb.'................. 136,274 98,762 49,071 49,691 7,869 16,650 6,143 19,029 37,512 1,361 Mar.r............... 135,483 99,045 49,209 49,836 7,500 16,652 6,336 19,348 36,438 1,401 Apr.................... 136,154 98,832 49,558 49,274 6,920 16,296 6,264 19,794 37,322 1,507 May^................ 135,209 99,236 49,740 49,496 7,515 16,134 5,997 19,850 35,973 1,178 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 fa - m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 1963......................... 1,603 261 328 591 430 1,012 5139 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 86 567 1973—Apr............... 2,153 293 397 908 555 1,231 127 795 205 205 26 17 9 60 May.............. 2,330 294 531 983 522 1,243 159 929 234 234 28 18 11 56 June.............. 2,152 345 485 873 449 1,140 127 886 203 203 1 25 17 8 56 July............... 2,152 245 475 1,020 412 1,232 144 776 203 203 1 20 12 8 49 Aug............... 2,030 255 466 844 465 1,108 107 814 200 197 3 23 14 9 53 Sept............... 1,844 281 431 748 384 990 97 757 149 148 1 15 10 6 44 Oct................ 1,674 242 383 715 334 957 81 637 149 147 2 15 9 6 45 Nov............... 1,675 241 322 750 362 938 84 653 135 133 1 17 12 5 39 Dec............... 1,403 192 278 654 279 767 73 563 91 90 11 7 4 28 1974—Jan................ 1,464 258 330 650 226 793 89 582 86 85 2 13 9 4 29 Feb............... 1,922 337 386 871 328 1,056 84 782 110 109 12 8 4 30 Mar.r........ 1,499 212 332 620 335 962 87 450 127 125 2 14 8 6 37 Apr.r............ 1,631 196 326 748 361 996 89 546 161 160 1 13 6 7 42 May?>............ 1,450 170 306 627 347 929 91 430 148 147 1 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. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 EMPLOYMENT □ JULY 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T 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 Employed1 Unem­ U (p n e e m r r a m e t c e n p e 2 t l n o t y ; ­ Total In c n u o lt n u a ra g l r i- In ployed S.A.) 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—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 May............... 150,507 58,349 92,909 90,679 85,971 82,514 3,457 4,708 5.2 June............... 150,710 55,953 93,130 90,919 86,165 82,872 3,293 4,754 5.2 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ t T i l o i r c a n n u s & ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969......................................................... 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 14,9.14 3,688 11,612 12,535 70,645 18,529 602 3,411 4,442 15,142 3,796 11,869 12,856 1972......................................................... 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—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 13,884 Feb............................................... 76,813 19,904 656 3,757 4,691 16,472 4,124 13,215 13,994 Mar.............................................. 76,804 19,851 655 3,725 4,676 16,487 4,127 13,240 14,043 Apr............................................... 76,941 19,921 659 3,659 4,668 16,549 4,130 13,248 14,107 May*............................................ 77,155 19,940 664 3,661 4,661 16,605 4,143 13,331 . 14,150 June*............................................ 77,107 19,918 665 3,611 4,649 16,597 4,129 13,386 14,152 NOT SEASONALLY ADJUSTED 1973—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.............................................. 76,117 19,726 642 3,405 4,634 16,187 4,102 13,147 14,274 Apr............................................... 76,706 19,777 653 3,527 4,635 16,429 4,118 13,274 14,293 May*............................................ 77,248 19,827 664 3,657 4,661 16,546 4,139 13,424 14,330 June*............................................ 77,904 20,064 679 3,792 4,714 16,672 4,170 13,573 14,240 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

JULY 1974 □ PRICES A 55 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow s o h n m ip e e r - - c F a o o u n i a e d l l l t e r G a i l c n e a i c d s t ­ y o n i p a n i n e s g r d h s a ­ ­ up a k n e d ep p t o io rt n a­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o r h v d d e ­ s r 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 87.8 196 5 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 94.2 196 6 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 97.2 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 197 3 133.1 141.4 135.0 124.2 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1973—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. 138.5 151.3 140.6 126.9 153.6 172.8 131.0 128.0 130.5 126.7 133.0 141.4 129.2 127.6 131.3 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 Apr. 144.0 158.6 146.0 128.8 158.2 206.5 141.91 134.0 133.6 134.4 136.3 145.6 133.1 130.4 133.6 May 145.6 159.7 147.6 129.3 159.4 211.0 143.9 137.0 135.0 137.6 137.7 147.2 134.9 132.0 134.4 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 o a e s n o e s d d d e s d s Total i t T e il e t e c x s . ­ , H e i t d c e . s, F et u c e . l 1 , C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u e tc 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 e m m a r l o a i l e n l i n ­ s c ­ ­ T e p m t q r o i a o e u r n n n i t p a s t ­ ­ 1 ­ n c M e e o l i l u s a ­ s ­ ment 1960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971............................. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972............................. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973............................. 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1973—June................. 136.0 182.3 151.8 126.0 123.7 140.9 133.4 110.4 112.6 183.1 122.0 132.5 121.9 115.2 131.1 115.0 120.2 July................... 134.3 173.3 146.5 126.1 124.2 141.4 134.7 110.8 112.9 177.8 122.3 132.8 122.0 115.2 130.0 115.0 120.9 Aug................... 142.1 213.3 166.2 126.7 125.2 143.0 135.2 111.0 113.1 178.8 123.3 133.7 122.3 115.9 130.0 115.1 121.0 Sept.................. 139.7 200.4 156.3 127.4 126.8 143.8 137.4 111.5 112.8 181.9 124.4 134.4 122.6 116.0 129.9 114.5 121.1 Oct.................... 138.7 188.4 153.1 128.5 128.5 143.8 139.3 112.7 114.0 180.3 125.8 135.9 123.1 116.6 130.9 115.9 121.0 Nov.................. 139.2 184.0 151.9 130.1 130.0 143.0 144.1 113.5 114.8 184.7 127.6 138.5 123.8 117.2 131.5 116.1 121.3 Dec................... 141.8 187.2 155.7 132.2 131.4 141.9 151.5 115.6 116.5 186.1 128.7 141.8 124.6 117.5 132.6 117.3 121.6 1974—Jan.................... 146.6 202.6 162.1 135.3 133.8 142.6 162.5 118.2 117.7 183.7 131.8 145.0 126.0 119.0 138.7 118.6 123.5 Feb................... 149.5 205.6 164.7 138.2 135.2 143.4 177.4 120.2 119.8 184.1 132.9 148.0 127.0 120.2 142.1 118.9 124.6 Mar.................. 151.4 197.0 163.0 142.4 136.1 143.4 189.0 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 Apr................... 152.7 186.2 159.1 146.6 137.5 145.4 197.9 132.3 129.4 200.2 114.4 161.2 130.8 122.9 146.7 119.4 128.2 May................. 155.0 180.8 158.9 150.5 139.1 146.3 204.3 137.0 133.7 198.0 146.6 168.7 134.1 124.5 150.7 121.4 133.2 June................. 155.7 168.6 157.4 153.6 141.7 146.0 210.5 142.8 135.6 192.2 147.5 174.0 137.2 126.1 152.3 122.8 134.3 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME □ JULY 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 I II III IV I 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.21,289.11,242.51,272.01,304.51,337.51,352.2 101.4 57.2 120.1 278.0 922.5 972.61,049.41,149.11,281.1 1,237.81,267.51,299.81,319.41,346.7 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 9.2 3.5 9.6 30.5 90.8 91.3 103.6 117.4 130.8 132.2 132.8 132.8i 125.6 125.0 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 62.4 242.7 262.6 284.9 309.2 337.3 325.0 332.6 341.6j 350.0 357.3 Gross private domestic investment................... 16.2 1.4 17.9 54.1 139.0 136.3 153.2 178.3 202.1 194.5 198.2 202.0 213.9 198.9 14.5 3.0 13.4 47.3 131.1 131.7 147.1 172.3 194.2 189.9 193.7 197.3 195.9 193.4 10.6 2.4 9.5 27.9 98.5 100.6 104.4 118.2 136.2 130.9 134.1 138.0, 141.8 144.1 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 53.9 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 90.2 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 49.3 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 48.6 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 5.5 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 5.0 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 10.9 Exports.......................................................... 7.0 2.4 5.9 13.8 55.5 62.9 66.3 73.5 102.0 89.7 97.2 104.5 116.4 130.4 5.9 2.0 4.6 12.0 53.6 59.3 65.5 78.1 96.2 89.7 94.4 97.0 103.6 119.4 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 210.0 219.5 234.3 255.0 277.1 268.6 275.3 279.0 285.6 297.8 Federal.......................................................... 1.3 2.0 16.9 18.4 98.8 96.2 98.1 104.4 106.6 105.5 107.3 106.8 106.8 112.1 National defense...................................... 13.8 14.1 78.4 74.6 71.6 74.4 73.9 74.3 74.2 74.2 73.0 76.3 Other......................................................... 3.1 4.3 20.4 21.6 26.5 30.1 32.7 31.2 33.1 32.7 33.8 35 8 State and local.............................................. 7.2 6.0 7.9 19.5 111.2 123.3 136.2 150.5 170.5 163.0 168.0 172.2 178.8 185.7 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 725.6 722.5 745.4 790.7 837.4 829.3 834.3 841.3 844.6 831.0 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 I 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,053.91,015.01,038.2 1,067.41,095.11,108.8 51.1 29.5 64.8 154.6 566.0 603.9 644.1 707.1 785.2 757.4 774.9 794.0 814.7 826.8 Wages and salaries....................................... 50.4 29.0 62.1 146.8 509.7 542.0 573.8 627.3 691.4 666.7 682.3 699.3 717.2 726.2 45.5 23.9 51.9 124.4 405.6 426.9 449.7 493.3 546.0 525.1 538.7 553.2 566.9 573.3 .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 Government civilian................................. 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- .1 .1 2.0 4.0 27.8 29.7 33.7 39.0 49.0 47.4 48.3 49.4 50.8 52.7 .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 88.4 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 59.3 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 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 91.1 109.0 104.3 107.9 112.0 111.9 112.9 10.0 1.0 17.7 42.6 84.9 74.0 85.1 98.0 126.3 119.6 128.9 129.0 127.4 144.0 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 60.6 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 83.4 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 53.9 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 — 31.2 Net interest....................................................... 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

JULY 1974 o NATIONAL PRODUCT AND INCOME A 57 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 1929 1933 1941 1950 1969 1970 1971 1972 1973 I II III IV I 103.1 55.6 124.5 284.8 930.3 977.11,055.51,155.21,289.11,242.51,272.01,304.51,337.51,352.2 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 81.6 87.3 93.8 102.4 110.0 106.9 109.0 110.5 113.5 115.2 Indirect business tax and nontax lia­ bility ................................................... 7.0 7.1 11.3 23.3 85.9 93.5 102.4 109.5 117.8 115.6 117.2 118.5 119.9 121.1 Business transfer payments.................. .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.8 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 -1.0 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 1.0 1.7 1.2 1.7 .4 .9 .4 .6 -.2 -2.9 86.8 40.3 104.2 241.1 766.0 800.5 859.4 941.81,053.91,015.01,038.21,067.41,095.11,108.8 Less: Corporate profits and inventory valu­ ation adjustment............................... 10.5 -1.2 15.2 37.7 79.8 69.2 80.1 91.1 109.0 104.3 107.9 112.0 111.9 112.9 Contributions for social insurance---- .2 .3 2.8 6.9 54.2 57.7 64.6 73.7 92.1 89.3 90.9 93.0 95.0 99.9 Excess of wage accruals over disburse­ ments.................................................. .0 .6 — .5 -. 1 .0 — .3 .0 .0 .0 Plus: Government transfer payments........... .9 1.5 2.6 14.3 61.9 75.1 88.9 98.3 112.6 108.8 110.8 113.7 116.9 122.3 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 41.4 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 .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.8 4.9 5.0 5.1 5.2 Equals: Personal income................................. 85.9 47.0 96.0 227.6 750.9 808.3 863.5 939.21,035.4 996.61,019.01,047.11,078.91,094.4 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.5 116.6 117.5 142.2 152.9 145.1 149.3 156.0 161.1 163.0 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 634.4 691.7 746.0 797.0 882.5 851.5 869.7 891.1 917.8 931.4 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 596.2 635.5 685.8 747.2 827.8 801.5 818.7 840.1 850.8 869.8 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 Consumer interest payments............ 1.5 .5 .9 2.4 15.8 16.8 17.7 19.7 22.5 21.2 22.0 23.0 23.8 24.4 Personal transfer payments to for- .3 .2 .2 .5 .9 1.0 1.0 1.0 1.2 .9 1.0 1.1 1.8 .9 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 38.2 56.2 60.2 49.7 54.8 50.0 51.0 51.1 67.1 61.5 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.0 603.9 604.8 609.5 613.2 603.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1973 1974 Item 1972 1973 May June July Aug. Sept. Oct. Nov Dec. Jan. Feb. Mar. Apr. Mayp Total personal income.......................... 939.21,035.41,018.71,026.61,035.61,047.31,058.51,068.51,079.41,089.01,087.01,094.8;1,101.41,110.51,121.1 Wage and salary disbursements.......... 627.8 691.5 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 726.5; 730.2 735.5 744.1 Commodity-producing industries.. 226.0 251.9 248.3 251.7 253.4 254.8 257.8 259.5 262.5 264.1 261.0 263.01 263.7 265.3 268.6 Manufacturing only...................... 175.9 196.8 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.1 203.0 203.5 203.9 205.7 208.8 Distributive industries..................... 151.5 165.1 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171.3 171.8 172.2 173.7 175.4 177.5 Service industries............................. 116.1 129.0 126.8 127.7 129.4 130.8 132.5 132.9 134.1 135.9 136.8 138.3 139.2 140.4 142.8 Government..................................... 134.2 145.4 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 152.2 152.9 153.7 154.4 155.2 Other labor income............................. 40.7 44.9 44.2 44.5 44.8 45.3 45.8 46.2 46.7 47.1 47.5 47.9 48.3 48.8 49.3 Proprietors’ income............................. 74.2 84.2 81.5 81.9 83.7 85.1 86.4 88.4 90.3 91.0 88.2 88.4 88.5 86.2 84.2 Business and professional................ 54.0 57.5 57.1 57.3 57.8 58.0 58.1 58.5 58.7 58.6 58.6 59.3 59.9 60.0 60.3 Farm................................................. 20.2 26.8 24.4 24.6 25.9 27.1 28.3 29.9 31.6 32.4 29.6 29.1 28.6 26.2 23.9 Rental income...................................... 24.1 25.1 24.6 24.9 25.0 25.3 25.5 25.6 25.7 25.7 25.8 25.8 25.8 25.0 26.2 Dividends............................................. 26.0 27.8 27.3 27.4 27.6 28.2 28.3 28.5 28.7 29.8 29.5 29.4 29.6 29.9 30.2 Personal interest income..................... 78.0 87.5 85.7 86.5 87.8 89.0 90.3 91.5 92.6 94.0 95.3 96.3 97.5 98.9 100.3 Transfer payments............................... 103.0 117.5 115.9 116.0 116.9 119.0 120.2 121.1 121.9 123.0 125.9 127.6 128.9 133.8 134.8 Less: Personal contributions for social insurance....................................... 34.7 43.1 42.5 42.8 43.4 43.6 43.9 44.0 44.3 44.3 47.0 47.2 47.4 47.6 48.1 Nonagricultural income........................ 911.51,000.5 986.4 994.21,001.81,012.11,021.8 1,030.01,039 01,047.51,048.11,056.41,063.31,074.61,087.2 Agricultural income.............................. 27.7 34.9 32.2 32.4 33.8 35.2 36.7 38.6 40.4 41.5 38.9 38.4 38.1 35.9 33.9 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 FLOW OF FUNDS □ JULY 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973 Transaction category, or sector 1968 1969 1970 1971 1972 1973 HI H2 HI H2 HI H2 Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................. 94.6 91.4 97.5 146.7 166.1 187.0 134.7 158.7 145.2 187.3 198.0 175.4 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 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 Other residential.............................................. 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 29.6 32.2 22.9 38.3 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 .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 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 capital outlays i. .. 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. 63.8 66.5 69.4 13 14 Net physical investment. 29.9 33.9 30.4 29.1 37.8 46. 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-59, 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 FRAFeSdEerRal Reserve System, Washington, D.C., 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ FLOW OF FUNDS A 59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 1972 1973 Transaction category, or sector 1968 1969 1970 1971 1972 1973 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors............................................. 95.9 88.0 92.6 135.0 156.1 181.3 123.8 146.1 134.7 177.8 192.3 169.6 1 By public agencies and foreign 2 Total net advances...................................................... 12.2 15.8 28.0 41.3 16.9 34.8 38.6 44.0 19.7 14.1 42.9 26.7 2 3 U.S. Government securities................................... 3.4 .9 15.7 33.4 7.3 11.0 32.9 34.0 12.7 2.0• 21.2 .7 3 4 Residential mortgages............................................ 2.8 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 7.0 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 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 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 72.7 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 ..8 23.2 13.5 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 60 U.S. BALANCE OF PAYMENTS □ JULY 1974 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1973 »• 1974 Line Credits (+), debits (—) 1971 r 1972 r 1973 r I II III IV Ip 1 Merchandise trade balance 1. -2,722 -6,986 623 -962 -360 602 1,343 101 2 Exports........................... 42,754 48,768 70,252 15,228 16,670 18,143 20,211 22,299 3 Imports........................... -45,476 -55,754 -69,629 -16,190 -17,030 -17,541 -18,868 -22,198 4 Military transactions, net......... -2,908 -3,604 -2,201 -833 -763 -547 -58 -466 5 Travel and transportation, net. -2,341 -3,055 -2,710 -686 -781 -613 -630 -529 6 Investment income, net 2...................................... 5,021 4,526 5,291 1,447 1,208 1,257 1,378 2,901 7 U.S. direct investments abroad 2................. 6,385 6,925 9.415 2,194 2,210 2,323 2,688 4,446 8 Other U.S. investments abroad..................... 3,444 3,494 4,569 1,000 1,098 1,179 1,292 1,495 9 Foreign investments in the United States 2 . -4,809 -5,893 -8,693 -1,747 -2,100 -2,245 -2,602 -3,040 10 Other services, net 2....... 2,781 3,110 3,540 841 815 984 901 895 11 Balance on goods and services - -170 -6,009 4,543 J -193 119 1,683 2,934 2,902 \ 487 233 -169 3,993 4,016 12 Remittances, pensions, and other transfers. -1,604 -1,624 -1,943 -404 -411 -412 -717 -396 13 Balance on goods, services, and remittances -1,774 -7,634 2,600 J -597 -292 1,271 2,217 2,506 \ 109 -182 -597 3,270 3,646 14 U.S. Government grants (excluding military). -2,043 -2,173 -1,933 -357 -645 -485 -447 4 2,534 15 Balance on current account...................................... -3,817 -9,807 667/ -954 -937 786 1,770 4 -28 \ -266 -867 -1,045 2,845 1,094 16 U.S. Government capital flows excluding nonscheduled repayments, net 5.................................................................... -2.111 -1,705 -2,938 -699 -565 -608 -1,066 4 1,296 17 Nonscheduled repayments of U.S. Government assets........... 227 137 289 111 174 4 * * 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies........................................................... -478 238 1,111 217 485 206 204 55 19 Long-term private capital flows, net......................................... -4,381 -98 127 319 -315 1,529 -1,406 742 20 U.S. direct investments abroad.......................................... -4,943 -3,517 -4,872 -1,815 -973 -710 -1,374 -220 21 Foreign direct investments in the United States............... -115 383 2,537 351 588 886 712 1,127 22 Foreign securities................................................................ -966 -654 -807 51 -124 -209 -525 -647 23 U.S. securities other than Treasury issues......................... 2,289 4,507 4,051 1,718 489 1,173 670 696 24 Other, reported by U.S. banks.......................................... -862 -1,158 -581 -110 -239 227 -459 -52 25 Other, reported by U.S. nonbanking concerns................. 216 341 -200 124 -56 162 -430 -162 26 Balance on current account and long-term capital 5. -10,559 -11,235 -744 /-1,006 -1,158 1,917 -498 2,065 \-l,051 -1,179 250 1,237 2,456 Nonliquid short-term private capital flows, net............ -2,347 -1,541 -4,276 -1,663 -1,457 97 -1,253 -3,224 Claims reported by U.S. banks............................... -1,802 -1,457 -3,940 -1,644 -1,399 222 -1,119 -2,791 Claims reported by U.S. nonbanking concerns. .. -530 -305 -1,240 -57 -59 -460 -664 -756 Liabilities reported by U.S. nonbanking concerns. -15 221 904 38 1 335 530 323 Allocations of Special Drawing Rights (SDR’s).......... 717 710 Errors and omissions, net............................................... -9,776 -1,790 -2,776 -4,085 904 -387 792 290 Net liquidity balance. -21,965 -13,856 -7,796 / —6,754 -1,711 -1,627 -959 -869 \-6,l90 -2,038 611 -179 -48 Liquid private capital flows, net................................... -7,788 3,502 2,492 -3,441 1,997 316 3,630 1,913 Liquid claims.......................................................... -1,097 -1,247 -1,944 -1,853 923 -521 -493 -2,660 Reported by U.S. banks................................ -566 -742 -1,103 -1,171 996 -456 -472 -2,248 Reported by U.S. nonbanking concerns -531 -505 -841 -682 -73 -65 -21 -412 Liquid liabilities...................................................... -6,691 4,749 4,436 -1,588 1,074 837 4,113 4,573 To foreign commercial banks....................... -6,908 3,716 2,978 -1,673 723 699 3,229 4,589 To international and regional organizations. 682 104 376 11 31 -50 384 -593 To other foreigners........................................ -465 929 1,082 74 320 188 500 577 Official reserve transactions balance, financed by changes in:. -29,753 -10,354 -5,304 f-10,195 286 1,943 2,661 1,044 \-9,994 769 939 2,982 1,488 43 Liquid liabilities to foreign official agencies........................... 27,615 9,734 4,452 8,816 -729 -1,489 -2,145 -555 44 Other readily marketable liabilities to foreign official agen­ cies 6....................................................................................... -551 399 1,118 1,202 259 11 -354 -277 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt............................................................. 341 189 -475 -43 167 -452 -147 -2 46 U.S. official reserve assets, net................................................ 2,348 32 209 220 17 -13 -15 -210 47 Gold................................................................................... 866 547 48 SDR’s................................................................................. -249 -703 9 9 49 Convertible currencies...................................................... 381 35 233 233 -1 50 Gold tranche position in IMF......................................... 1,350i 153 -33 -13 8 -13 -15 -209 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................... 3,204t 4.189 2,772: 693 833 758 487 391 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................ 3,157r 4,521 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)................................... 498! 548 Balances excluding allocations of SDR’s 54 Net liquidity.................................... -22,681> —14,56C> - 7,796> -6,19C) - 2,038! 611 -179» -48 55 Official reserve transactions. . —30,47t) - 11,06<f -5,30a( -9,994f 769> 939* 2,982 1,488 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1971 1972 1973 1974 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... 631 3,820 5,492 8,234 3,774 4,417 5,356 8,141 -143 -596 136 93 May.. 746 3,882 5,557 7,630 3,908 4,486 5,700 8,407 -161 -604 -143 -777 June.. 672 3,971 5,726 4,037 4,468 5,765 -365 -497 -40 July... 573 4.074 5,860 3,832 4,565 5,821 -259 -491 39 Aug... 667 4,197 6,044 3,913 4,726 5,991 -247 -530 54 Sept... 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 22,390 10,792 13,403 16,137 21,704 294 -1,657 -803 686 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 into bonded warehouses. 3. U.S. RESERVE ASSETS (In millions of dollars) Con­ Reserve Gold stock i Con­ Reserve E y n e d a r of Total Total2 Treasury v c fo e u c r r r i e t r e i i e b s g n l n e ­ p I o M s i i n t F io 3 n SDR’s4 E m n o d n t o h f Total Total2 Treasury v c fo e u c r r i r e t e r i i e s b g 5 n l n e ­ p I o M s i i n t F io 3 n SDR’s4 1960... 19,359 17,804 17,767 1,555 1973 1961... 18,753 16,947 16,889 116 1,690 June. .. 12.914 10,487 10,410 8 470 1,949 1962. ., 17,220 16,057 15,978 99 1,064 July. . . 12,918 10,487 10,410 8 474 1,949 1963... 16,843 15,596 15,513 212 1,035 Aug---- 12,923 10,487 10,410 8 479 1,949 1964... 16,672 15,471 15,388 432 769 Sept---- 12,927 10,487 10,410 8 483 1,949 Oct.. . . 1014,367 1011,652 1011,567 8 10541 102,166 1965... 15,450 6 13,806 613,733 781 6 863 Nov__ 14,373 11,652 11,567 8 547 2,166 1966... 14,882 13,235 13,159 1,321 326 Dec.. . 14,378 11,652 11,567 8 552 2,166 1967... 14,830 12,065 11,982 2,345 420 1968... 15,710 10,892 10.367 3,528 1,290 1974 1969... 716,964 11,859 10.367 72,781 2,324 Jan.. . . 14,565 11,652 11,567 59 688 2,166 Feb... . 14,643 11,652 11,567 68 757 2,166 1970... 14,487 11,072 10,732 629 1,935 851 Mar__ 14,588 11,652 11,567 9 761 2,166 1971. . . 812,167 10,206 10,132 8 276 585 1,100 Apr... . 14,651 11,652 11,567 9 824 2,166 19729. , 13,151 10,487 10,410 241 465 1,958 May... 14,870 11,652 11,567 66 989 2,163 197310 14,378 11,652 11,567 8 552 2,166 June. . . 14.946 11,652 11,567 94 1,005 2,195 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 5. 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. 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 SDR’s. reserve position in IMF $54 million, and SDR’s $217 million. 5 For holdings of F.R. Banks only, see p. A-12. 6 Reserve position includes, and gold stock excludes, $259 million gold Note.—See Table 20 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. NOTES TO TABLE 1 ON OPPOSITE PAGE: 1 Adjusted to balance of payments basis; excludes transfers under resenting the refinancing of economic assistance loans to India; a cor­ military grants, exports under U.S. military agency sales contracts, and responding reduction of credits is shown in line 16. imports of U.S. military agencies. 5 Includes some short-term U.S. Govt, assets. 2 Fees and royalities from U.S. direct investments abroad or from 6 Includes changes in long-term liabilities reported by banks in the foreign direct investments in the United States are excluded from invest­ United States and in investments by foreign official agencies in debt ment income and included in “Other services”. securities of U.S. Federally sponsored agencies and U.S. corporations. 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. 4 Includes under U.S. Government grants $2 billion equivalent, rep- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 U.S. GOLD TRANSACTIONS □ JULY 1974 4. 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 1974 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 II III IV I Western Europe: -82 -55 -100 -25 4 -40 -83 -58 -110 -518 -405 -884 -601 600 325 -129 -473 -225 500 -1 -2 -2 -2 -52 41 2 200 -80 -60 -85 -209 -76 -60 -35 -19 -50 -25 -130 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 329 618 150 80 -879 -835 200 1 -6 -35 -49 16 -47 11 -29 -13 Total........................... -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada ................................. 200 150 50 Latin American republics: Argentina ......................... -30 -39 -1 -25 -25 -28 Brazil.................................. 72 54 25 -3 -1 * -23 Colombia........................... 10 29 7 * -1 Venezuela........................... -25 Other................................... -11 -9 -13 -6 11 — 40 -29 -80 -5 Total........................... 32 56 17 -41 9 — 65 -54 -131 -5 Asia: Iraq..................................... -10 -4 -21 -42 -56 -119 Lebanon............................. -11 -11 -1 -95 -35 Malaysia............................. -34 -10 Philippines .. .................. 25 20 * -1 9 40 -4 -2 -50 Singapore........................... -81 11 -30 Other ............................... -13 -6 -14 -14 -22 -75 -9 2—91 39 -3 Total .................. 12 3 -24 -86 -44 -366 42 -213 -38 -3 All other................................. -36 -7 -16 -22 3-166 3-68 -1 -81 -6 Total foreign countries.......... -392 -36 -1,322 -608 -1,031 -1,118 957 -631 -845 -3 Inti Monetary Fund4........... 5-225 177 22 -3 10 -156 -22 -544 Grand total .............. -392 -36 -1,547 -431 -1,009 -1,121 967 6-787 -867 -547 1 Includes purchase from Denmark of $25 million. repurchase; proceeds from these sales invested by IMF in U.S. Treasury 2 Includes purchase from Kuwait of $25 million. securities. IMF repurchased $400 million in Sept. 1970 and the remaining 3 Includes sales to Algeria of $150 million in 1967 and $50 million in $400 million in Feb. 1972. 1968. * 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 3), 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 5. 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 r f r g t r i a i s o o o n i l m n n d s g s ­ i Total t p S l b i i t e o a h a e b s i r b n r o n y t m i k e r r l t e i d s ­ ­ ­ M n T b U o a o a a r b e t 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 t a n . m i S n a b d d b s . ­ a l s l . e e r- n v k T b o n e e U o a r n r o t e n t n a . c t i S a b d d e b o s . l s l s n . e e 4 ­ m r l O e i t a a a a i t b r b e d h k l i s i e e l e l 5 i r y t ­ ­ a t m o l b b i a e a t r c i r b o n e o c a k s i i m l d a s i- l ­ 6 Total t p l S b i i t o e a h a e b i s r b n r n o 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 n r .S l a k s d d e s 3 . e s . - t 7 ­ o z a m g a n r t i i g t o a d o n i a n r o n t y n r i e n a , e ­ i l s ­ ­ 8 U.S. notes U.S. 1962 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9........... 1 (2 2 6 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 5 2 9 5 1 1 2 2 . . 4 4 6 6 7 7 1 1 , , 2 18 1 3 7 7 7 0 0 3 3 6 6 3 3 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 8 97 7 3 3 . . 0 0 4 4 6 6 3 3 5 4 1 1 1 1 , , 9 96 6 5 0 1964 9........... / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , . 7 7 9 8 0 6 1 1 3 3 , , 2 2 2 2 4 0 1 1 . . 1 1 2 2 5 5 1 1 . . 0 0 7 79 9 2 20 0 4 4 1 1 5 5 8 8 7 7 , , 2 3 7 0 1 3 3 3, , 7 7 5 3 3 0 3 3, , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 . . 7 7 2 2 2 2 196 5 29,569 834 15,826 13,066 1,105 1,201 334 7,419 4,059 3,587 472 1,431 1966 9........... \ ( 3 3 1 1 , , 0 1 2 45 0 1 1 , ,0 01 11 1 1 1 4 4 , , 8 8 4 9 1 6 1 1 2 2 , , 4 5 8 39 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 13 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 9........... / \ 3 3 5 5 , , 8 6 1 6 9 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 3 2 4 7 908 7 7 1 1 1 1 7 7 4 4 1 1 1 1 . . 8 8 0 0 7 7 1 1 1 1 , , 2 0 0 8 9 5 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 6 9 7 1 7 1968 9............ / 1 3 3 8 8, , 4 6 7 8 3 7 1 1 . . 0 0 3 3 0 0 1 1 7 7 , , 3 4 4 07 0 1 1 1 1. . 3 3 1 1 8 8 4 5 6 2 2 9 7 7 0 0 1 1 2 2 . . 5 5 1 1 8 8 2 2 . . 3 3 4 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 5 9 3 4 4 . . 4 4 4 4 4 4 4 6 6 09 5 7 7 2 2 5 2 1969 9........... o 1 /4 4 5 5 , , 7 9 5 1 5 4 1 1 . . 0 0 1 1 9 9 io 1 i5 5 , , 9 9 7 9 5 8 1 1 1 1 , , 0 0 5 7 4 7 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 . . 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , , 0 93 6 9 4 5 5 2 2 5 5 6 6 5 63 9 1970—Dec. 9. / \4 4 6 7, , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3, . 7 7 7 8 5 6 1 1 9 9 . . 3 3 3 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 . . 0 02 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 2 9 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 167,808 544 50,651 39,018 1.955 6,093 3,441 144 10,949 4,141 3,694 447 1,523 1972—Dec.. . 82,888 61.526 40,000 5,236 12,108 3,639 543 14,665 5,070 4,645 425 1,627 1973—May. . 92,088 70,920 46,117 6.934 12.245 3,628 1,996 14,059 5,360 4,976 384 1,749 June.. 92,189 70.701 45,713 6.934 12.245 3,805 2,004 14,356 5,463 5,080 383 1,669 July... 93,218 71,028 46,138 6.934 12.245 3,705 2,006 15,310 5,362 4,988 374 1,518 Aug.. . 92.580 70,520 45,721 6,906 12.319 3,555 2,019 15,077 5,451 5,116 335 1,532 Sept.. . 92,073 69,777 45,174 6,914 12.319 3,355 2,015 15,026 5,651 5,304 347 1,619 Oct.. ,. 93,175 69.702 45.212 6,929 12.319 3.233 2,009 15,953 5,699 5,325 374 1,821 Nov.. . 92.581 67,400 43,791 6,207 12.319 3.234 1,849 17,255 5,916 5,506 410 2,010 Dec.. . 92,608 66,810 43,919 5,701 12.319 3.210 1,661 17,643 6,152 5,722 430 2,003 1974—Jan.... 90,114 63,891 41,576 5,229 12.321 3.210 1,555 18,014 6,285 5,836 449 1,924 Feb.... 92,022 64,097 41,989 5.192 12.322 3.210 1.384 19,677 6,455 6,045 410 1,793 Mar... 95,718 65.527 43,412 5.192 12.329 3.210 1.384 22,022 6,751 6,351 400 1,418 Apr.p. 97,520 67.163 45,184 5,020 12.330 3.210 1,419 22,067 6,996 6,576 420 1,294 May^. 100,895 67,959 45.976 5,013 12.330 3.210 1,430 24,276 7,112 6,704 408 1,548 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969 as of gold by the IMF to the United States to acquire income-earning assets. follows: liquid, $17 million, and other, $84 million. 2 Includes BIS and European Fund. 11 Data on the second line differ from those on first line because cer­ 3 Derived by applying reported transactions to benchmark data; tain accounts previously classified as “official institutions” are included breakdown of transactions by type of holder estimated 1962-63. with “banks”; a number of reporting banks are included in the series for 4 Excludes notes issued to foreign official nonreserve agencies. the first time; and U.S. Treasury securities payable in foreign currencies 5 Includes long-term liabilities reported by banks in the United States issued to official institutions of foreign countries have been increased in and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ value to reflect market exchange rates as of Dec. 31, 1971. porations. 6 Includes short-term liabilities payable in dollars to commercial banks Note.—Based on Treasury Dept, data and on data reported to the abroad and short-term liabilities payable in foreign currencies to commer­ Treasury Dept, by banks and brokers in the United States. Data correspond cial banks abroad and to “other foreigners.” generally to statistics following in this section, except for the exclusion 7 Includes marketable U.S. Treasury bonds and notes held by commer­ of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign cial banks abroad. official nonreserve agencies, the inclusion of investments by foreign 8 Principally the International Bank for Reconstruction and Develop­ official reserve agencies in debt securities of U.S. Federally-sponsored ment and the Inter-American and Asian Development Banks. agencies and U.S. corporations, and minor rounding differences. Table 9 Data on the two lines shown for this date differ because of changes excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters in reporting coverage. Figures on first line are comparable with those of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 Canada A re m L pu a e b r ti i l n c ic a s n Asia Africa cou O n t t h r e ie r s 2 18,194 10.321 1,310 1,582 4,428 250 303 1968 3..................................................................................... /17,407 8,070 1,867 1,865 5,043 259 303 \17,340 8; 062 1,866 1,865 4,997 248 302 /4 15,975 4 7,074 1,624 1,888 4,552 546 291 \4 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3..................................................................................... /23,786 13.620 2,951 1,681 4,713 407 414 123,775 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 61,526 34,197 4,279 1,733 17,577 777 2,963 1973 May............................................................................. 70.920 46.646 4,104 1,904 14,429 940 2,897 June............................................................................. 70,701 46.967 4,111 1,999 13,734 992 2,898 July.............................................................................. 71,028 47.140 4,043 2,075 13,692 928 3,150 Aug.............................................................................. 70,520 47.260 3,836 2,015 13,637 738 3,034 Sept.............................................................................. 69,777 47.099 3,759 1,861 13,289 769 3,000 Oct............................................................................... 69.702 47.514 3,851 1,938 12,601 735 3,063 Nov.............................................................................. 67,400 46,002 3,820 2,233 11,474 785 3,086 Dec....................................................................... 66,810 45,717 3,853 2,544 10,884 788 3,024 1974 Jan............................................................................... 63,891 43,290 3,945 2,446 10,479 838 2,893 Feb.............................................................................. 64.097 42,389 4,262 2,743 10,878 1,000 2,825 65.527 42.771 4,195 2,887 11,631 1,249 2,794 Apr.^........................................................................... 67,163 42,648 4,309 3,522 12,360 1,402 2,922 May^......................................................................... 67.959 42.761 4,302 3,384 12,988 1,620 2,904 1 Includes Bank for International Settlements and European Fund. to official institutions of foreign countries have been increased in value by 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ $110 million to reflect market exchange rates as of Dec. 31, 1971. pean dependencies in Latin America. 3 See note 9 to Table 5. Note.—Data represent short- and long-term liabilities to the official 4 Includes $101 million increase in dollar value of foreign currency institutions of foreign countries, as reported by banks in the United States; liabilities resulting from revaluation of the German mark in Oct. 1969. foreign official holdings of marketable and nonmarketable U.S. Treasury 5 Data on second line differ from those on the first line because certain securities with an original maturity of more than 1 year, except for non­ accounts previously classified as “Official institutions” are included in marketable notes issued to foreign official nonreserve agencies; and in­ “Banks”; a number of reporting banks are included in the series for vestments by foreign official reserve agencies in debt securities of U.S. the first time; and U.S. Treasury liabilities payable in foreign currencies Federally-sponsored agencies and U.S. corporations. 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners T a o n n d o r n e m gi o o n n e a t l a o ry rg i a n n t i e z r a n t a i t o i n o s n 6 al Payable in dollars IMF Deposits Payable gold U.S. End of period Total 1 Total Dem D an e d pos T it i s me 2 b T i c r c ll e U e a s r a t . t e S s i a f u s . i n r ­ 3 y d s O l t h i e a t o r h b m r e . t 4 r ­ f r o e c n r i u e n c i r i g ­ e n s in m ve e s n t t ­ 5 Total Demand Time2 b T i c r l c e l e s a r a t t s i e a f u s i n r ­ y d s l O t i h e a t r o h b 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.......... 1 f4 4 1 1, , 7 7 6 1 1 9 4 4 1 1 , , 3 3 5 9 1 3 1 1 5 5 , , 7 7 9 8 5 5 5 5 , ,9 9 6 2 1 4 1 1 4 4 , , 1 1 2 2 3 3 5 5 , , 5 5 1 1 9 4 3 3 6 6 8 8 4 4 0 0 0 0 8 8 2 20 0 6 6 9 9 1 1 5 5 9 9 2 21 11 1 3 3 8 8 1 1 /55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 1971 8.......... 155,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 197 2 60,724 60,228 8,288 5,631 31,850 14,458 496 1,413 86 202 326 800 1973—May. 66,732 66,160 8,365 5,715 35,965 16,115 572 1,579 141 119 148 1,172 June. 66,718 66,074 9,114 5,830 34,931 16,199 644 1,569 155 134 169 1,110 July.. 67,925 67,317 8,989 5,879 34,556 17,894 607 1,488 206 116 116 1,049 Aug.. 67,400 66,790 8,436 6,137 34,257 17,960 611 1,487 178 118 61 1,129 Sept.. 67,057 66,396 8,754 6,130 33,702 17,810 660 1,552 80 100 62 1,311 Oct... 68,258 67,681 9,108 6,772 32,869 18,932 577 1,768 70 93 173 1,431 Nov.. 68,514 67,892 9,849 6,884 31,977 19,182 622 1,962 73 97 373 1,420 Dec.. 69,239 68,642 11,399 6,995 31,886 18,363 597 1,955 101 86 296 1,471 1974—Jan... 67,281 66,641 10,822 7,030 29,543 12,246 640 1,855 95 94 286 1,380 Feb.. 69,404 68,635 11,473 7,066 30,274 19,822 770 1,693 77 67 232 1,317 Mar.. 72.936 72,170 11,651 7,168 31,444 21,907 766 1.151 96 66 227 762 Apr.^ 74,936 74,230 11,973 7,504 32,676 22,076 706 1,109 60 60 209 780 May^ 78,289 77,635 11,812 7,708 34,028 24,086 653 1,333 95 54 46 1,138 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 7. 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 institutions10 Payable in dollars Payable in dollars Payable End of period Total Dema D nd eposi T ts ime2 T b c i r l e U e l r s a . t s S i a f u . n i r ­ d y s O l t h i e a t o r h b m r e . t 4 r ­ f r o e c r n i u e n c i r i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c r l U e e ls a r . t S s i a u f . n i r ­ d y s O t l h i e t a o r h b m r e t . ­ 4 r c P u f r a o r y r e i a e n n b i c g l i e n es cates 3 cates 3 1969....................... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 J40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 148 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 148 J53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 158 19718..................... \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972—Dec............. 59,310 8,203 5,429 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 1973—May............ 65,152 8,224 5,597 35,817 14,943 572 46,117 1,720 2,949 35,736 5,525 9 187 June............ 65,149 8,959 5,696 34,762 15,089 644 45,713 1,941 3,124 34,684 5,777 187 July............. 66,436 8,782 5,762 34,440 16,845 607 46,138 1,935 3,192 34,360 6,461 189 Aug............. 65,914 8,258 6,019 34,196 16,831 611 45,721 1,576 3,355 34,118 6,545 127 Sept............. 65,504 8,674 6,030 33,640 16,499 660 45,174 1,633 3,226 33,554 6,634 127 Oct.............. 66,490 9,038 6,678 32,696 17,501 577 45,212 1,811 3,846 32,613 6,814 127 Nov............. 66,552 9,776 6,787 31,604 17,763 622 43,791 2,035 3,802 31,529 6,298 127 Dec............. 67,284 11,297 6,909 31,590 16,892 597 43,919 2,125 3,911 31,511 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.............. 67,711 11,396 6,999 30,042 18,505 770 41,989 2,407 3,703 29,917 5,834 127 Mar............. 71,785 11,554 7,103 31,217 21,145 766 43.412 2,631 3,800 31,064 5,790 127 Apr.*5.......... 73,827 11,913 7,444 32,467 21,296 706 45,184 2,920 3,949 32,312 5,877 127 Mayp.......... 76,956 11,717 7,655 33,982 22,948 653 45,976 2,352 3,970 33,786 5,741 127 To banks11 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Deposits Dema T b nc i r d l c e U e l a s r a . t t s S i e a u f s . n iT r ­ d y i me2 s O l t h i e a t o r h b m r e . t 4 r ­ Total Deposits Dema T b nc i r d l c U e e l a s r a . t t s S i e a u f s . n iT r ­ d y i me2 s O l t h i e a t o r h b m r e . t 4 r ­ f r o e c r n u e c r i i g ­ e n s 1969....................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 1 Q7A7 /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 1,895 131 325 220 197 - 15..................... \ / 1 1 4 3 , , 6 9 4 5 3 3 1 1 0 0, , 7 0 2 3 1 4 7 3 , , 0 3 4 9 7 9 8 3 5 20 0 8 8 2 6 , , 1 9 3 95 0 3 3, , 6 6 9 9 1 4 1 1 , , 6 6 6 6 0 0 1 1 , , 6 6 6 6 3 6 9 96 6 2 27 7 1 4 2 22 2 8 8 1972—Dec............. 19,310 14,340 4,658 405 5 9,272 4,645 1,954 2,145 65 481 325 1973—May............ 19,035 13,674 4,645 319 8 8,702 4,977 1,859 2,329 73 716 385 June............ 19,437 13,899 5,053 258 8 8,579 5,081 1,965 2,314 70 732 457 July............. 20,299 14,892 4,957 321 8 9,607 4,989 1,890 2,250 72 776 418 Aug............. 20,192 14,594 4,806 353 10 9,425 5,115 1,876 2,311 68 861 483 Sept............. 20,330 14,493 5,070 430 8 8,984 5,305 1,972 2,374 77 881 533 Oct.............. 21,278 15,504 5,250 473 7 9,774 5,325 1,977 2,359 76 912 449 Nov............. 22,762 16,761 5,734 469 8 10,550 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.............. 25,722 19,035 6,857 521 32 11,625 6,044 2,131 2,775 93 1,045 642 Mar............. 28,373 21,384 6,572 506 54 14,251 6,350 2,351 2,797 98 1,104 639 Apr.p.......... 28,643 21,487 6,601 678 63 14,145 6,576 2,392 2,817 92 1,274 579 Mayp.......... 30,980 23,750 7,054 774 73 15,849 6,704 2,312 2,911 124 1,358 526 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 9. 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 fine 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

A 66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 8. 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. Aug. Sept. Oct. Nov* Dec. Jan. Feb. Mar. Apr.z> Mayp ! Europe: Austria...................................................... 272 302 | 292 204 166 161 210 279 327 248 298 Belgium-Luxembourg.............................. 1,094 1,381 1 1,378 1,411 1,463 1,483 1,593 1,662 1,572 1,795 1,739 Denmark.................................................. 284 436 ! 409 470 527 659 527 456 380 358 261 163 153 145 135 136 165 178 160 169 140 143 4,441 5,246 5,296 4,143 3,415 3,483 3,241 2,967 2,852 2,767 3,018 Germany.................................................. 5,346 12,912 13,236 14,180 14,227 13,227 12,307 12,357 12,275 13,028 13,777 Greece..................................................... 238 236 215 280 236 389 262 238 343 288 239 Italy.......................................................... 1,338 1,510 1,140 1,095 1,224 1,404 1,195 1,119 2,243 1,386 1,435 1,468 1,945 2,022 2,534 2,866 2,886 2,522 2,502 2,547 2,507 2,407 Norway..................................................... 978 1,055 1,024 999 980 965 961 962 993 923 923 Portugal.................................................... 416 472 459 467 470 534 482 486 450 450 452 Spain......................................................... 256 237 259 284 319 305 264 304 267 289 499 1,184 1,871 1,835 1,787 1,807 1,885 1,975 1,973 1,733 1,475 1,350 Switzerland............................................... 2,857 3,226 3,309 3,316 3,091 3,377 3,281 3,513 3,792 4,228 5,138 97 115 72 83 75 j 98 221 146 96 92 95 United Kingdom..................................... 5,011 5,943 5,593 6,416 6,473 1 6,148 6,440 6,186 7,392 7,697 8,772 Yugoslavia................................................ 117 57 58 61 76 , 86 77 94 78 82 86 Other Western Europe i.......................... 1,483 3,015 3,099 3,426 2,926 ; 3,352 3,125 3,007 2,946 3,003 2,444 U.S.S.R..................................................... 11 17 16 40 20 22 26 20 29 52 28 Other Eastern Europe............................. 81 90 114 96 101 110 92 96 122 95 104 Total.................................................. 27,136 40,217 39,971 41,426 40,598 40,742 38,982 38,525 40,605 40,901 43,210 Canada........................................................ 3,467 3,787 3,721 3,812 3,967 3,862 4,158 4,432 3,841 4,553 4,164 Latin America: Argentina.................................................. 631 800 889 781 766 914 847 895 1,001 1,078 1,180 Bahamas 2................................................ 540 564 592 456 806 ! 824 593 1,011 2,016 1,316 1,826 Brazil........................................................ 605 732 700 745 816 1 860 819 961 837 773 731 Chile........................................................ 137 126 127 137 142 j 157 178 174 185 224 191 Colombia.................................................. 210 168 167 207 221 | 247 219 238 238 227 227 Cuba.......................................................... 6 7 7 7 6 7 7 8 7 6 6 Mexico...................................................... 831 975 1,044 1,029 1,132 1 1,284 1,323 1,343 1,369 1,374 1,416 Panama.................................................... 167 217 204 231 282 i 279 281 326 401 408 522 Peru........................................................... 225 177 178 152 124 S 135 144 154 159 160 162 Uruguay.................................................... 140 126 114 115 112 120 120 115 121 121 132 Venezuela.................................................. 1,078 1,079 1 941 1,130 1,420 , 1,468 1,460 1,636 1,736 i 2,297 2,248 Other Latin American republics............. 860 791 791 742 769 1 880 947 1,026 1,100 1,149 1,053 Netherlands Antilles and Surinam......... 86 61 65 70 63 ! 71 69 61 69 63 95 Other Latin America............................... 44 403 463 532 556 361 470 792 659 560 432 Total.................................................. 5,560 6,226 6,283 6,334 7,215 ! 7,608 7,477 8,741 9,896 9,755 10,221 Asia: China, People’s Rep. of (China Mainland 39 43 40 37 40 38 38 39 38 39 39 China, Republic of (Taiwan)................... 675 810 802 779 764 757 735 715 641 571 620 Hong Kong.............................................. 318 356 349 363 383 372 389 416 452 453 512 India.......................................................... 98 103 99 105 71 85 152 183 133 175 264 Indonesia.................................................. 108 140 254 169 160 133 186 175 240 305 220 Israel......................................................... 177 146 173 279 330 327 337 311 302 275 267 Japan........................................................ 15,843 8,003 7,680 7,061 6,726 j 6,954 6,417 7,440 8,307 8,690 9,060 Korea........................................................ 192 217 213 198 210 I 195 222 204 180 253 234 Philippines................................................ 438 541 482 479 497 1 515 570 604 595 642 731 Thailand.................................................... 171 140 143 163 180 j 247 336 471 607 536 517 Other........................................................ 1,071 1,139 1,165 1,139 1,138 1,202 1,306 1,196 1,445 1,941 1,883 Total.................................................. 19,131 11,640 11,401 10,771 10,500 i 10,826 10,690 11,752 12,940 13,878 14,347 Africa: Egypt......................................................... 24 41 34 34 63 35 72 72 52 68 71 Morocco................................................... 12 10 11 10 14 11 11 12 17 15 20 South Africa............................................. 115 100 132 103 109 1 114 97 119 148 83 122 Zaire.......................................................... 21 27 19 26 24 87 42 30 42 43 52 Other......................................................... 768 683 765 747 824 J 808 837 1,044 1,335 1,500 1,703 939 862 961 919 1,034 | 1,056 1,059 1,277 1,593 1,709 1,968 Other countries: Australia................................................... 3,027 3,124 3,106 3,169 3,183 3,131 2,986 2,917 2,849 2,979 2,980 All other................................................... 51 57 62 59 55 59 74 66 60 52 68 3,077 3,181 j 3,168 3,228 3,238 3,190 3,059 2,984 2,909 3,031 3,047 Total foreign countries............................... 59,310 65,914 ! 65,504 66,490 66,552 67,284 65,426 67,711 71,785 73,827 76,956 International and regional: International 3........................................... 951 1,125 1,183 1,403 1,610 1,628 1,537 1,404 863 840 1,038 Latin American regional......................... 307 289 ! 298 299 290 271 256 228 226 217 226 Other regional4........................................ 156 72 I 70 66 62 57 64 61 62 51 69 Total.................................................. 1,413 1,487 1,552 1,768 1,962 1,955 1,855 1,693 1,151 1,109 1,333 Grand total....................................... 60,724 67,400 67,057 68,258 68,514 69,239 67,281 69,404 72,936 74,936 78,289 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 8. 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 1972 1973 1974 1972 1973 1974 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus......................................... 2 3 9 19 10 Kuwait................................... 16 39 36 28 Iceland......................................... 9 9 12 8 11 Laos........................................ 3 2 3 3 Ireland, Rep. of......................... 15 17 22 62 53 Lebanon................................ 60 55 55 62 68 Malaysia................................ 25 54 59 58 40 Other Latin American republics: Pakistan................................. 58 59 93 105 108 Bolivia......................................... 53 87 65 68 102 Ryukyu Islands (incl. Okinawa) 6 53 Costa Rica.................................. 70 92 75 86 88 Saudi Arabia........................ 80 344 236 334 303 Dominican Republic................ 91 114 104 118 137 Singapore.............................. 45 77 53 141 164 Ecuador....................................... 62 121 109 92 90 Sri Lanka (Ceylon)............. 6 5 6 13 13 El Salvador................................. 83 76 86 90 129 Syria....................................... 6 4 39 5 40 Guatemala................................... 123 132 127 156 245 Vietnam................................. 185 135 98 88 98 Haiti.............................................. 23 27 25 21 28 Honduras..................................... 50 58 64 56 71 Jamaica......................................... 32 41 32 39 52 Other Africa: Nicaragua.................................... 66 61 79 99 119 Algeria................................... 31 32 51 111 110 Paraguay...................................... 17 22 26 29 40 Ethiopia (incl. Eritrea).... 29 57 75 79 118 Trinidad & Tobago................... 15 20 17 17 21 Ghana.................................... 11 10 28 20 22 Kenya.................................... 14 23 19 23 20 Other Latin America: Liberia.................................... 25 30 31 42 29 Bermuda........................................ (2) (2) 127 244 Libya...................................... 296 393 312 331 British West Indies..................... 23 36 100 109 201 Nigeria................................... 56 85 140 78 Southern Rhodesia............. 2 2 1 2 1 Other Asia: Sudan..................................... 5 3 3 3 2 Afghanistan.................................. 17 25 19 22 11 Tanzania................................ 6 11 16 12 12 Bahrain.......................................... 18 24 23 24 11 Tunisia................................... 7 10 11 7 17 Burma........................................... 5 2 17 12 Uganda.................................. 10 7 19 6 11 Cambodia..................................... 2 3 3 2 4 Zambia.................................. 7 28 37 22 Iran................................................ 88 93 114 124 243 Iraq................................................ 9 10 26 101 All other: Jordan........................................... 2 4 4 6 New Zealand........................ 27 30 34 39 33 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. 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.................. /l,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—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...................... 1,500 888 612 259 267 86 165 58 231 109 2 35 13 Mar..................... 1,558 951 607 259 261 87 165 45 232 111 2 39 13 Apr.?5................. 1,682 1,027 655 294 272 89 165 56 231 133 2 50 18 May^................. 1,638 1,005 633 296 263 74 165 56 220 125 2 52 13 l 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

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 1 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p May? Europe: 6 6 6 6 7 7 7 7 7 7 7 7 7 135 135 135 135 165 165 165 235 235 260 260 260 260 43 43 42 37 37 37 38 34 33 32 34 33 35 United Kingdom.................................. 281 280 275 236 247 290 400 423 437 450 439 460 470 Other Western Europe....................... 85 85 85 85 85 85 85 86 91 91 90 89 88 Eastern Europe.................................... 5 5 5 5 5 5 5 5 5 5 5 5 5 Total............................................... 555 554 547 504 546 588 700 789 808 845 835 854 865 Canada........................................................ 560 560 560 560 560 560 567 582 597 832 847 848 849 Latin America: Latin American republics.................. 1 1 4 8 9 9 11 11 11 11 11 11 11 Other Latin America......................... 6 6 3 3 3 3 3 3 3 3 3 3 5 Total............................................... 7 7 7 11 12 12 14 14 14 14 14 14 16 Asia: Japan........................................................ 5,978 5,977 5,977 5,949 5,950 5,950 5,143 4,552 4,066 3,718 3,703 3,531 3,499 Other Asia............................................. 10 10 9 9 11 11 11 11 11 11 11 11 12 Total............................................... 5,988 5,988 5,987 5,959 5,961 5,961 5,154 4,563 4,077 3,729 3,714 3,542 3,510 183 183 183 183 158 158 158 158 158 157 157 157 157 25 25 25 25 25 25 25 25 25 25 25 25 25 7,318 7,317 7,308 7,241 7,261 7,303 6,617 6,131 5,678 5,602 5,592 5,440 5,421 International and regional: International..................................... 142 72 1 1 21 6 1 1 20 51 217 141 174 Latin American regional.................. 27 27 28 45 45 47 47 48 49 49 49 44 41 Total............................................... 169 100 29 46 66 53 48 49 69 100 267 185 214 Grand total.................................. 7,487 7,417 7,337 7,287 7,327 7,356 6,665 6,179 5,747 5,702 5,859 5,625 5,636 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 14). 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— Foreign End of period Total Total Total O in t f i s f o t i i n c t i s u a ­ l Banks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i c r f g n c a n a f c e d o e c e p r r c e s t s ­ t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c a u o n p c n v o r a a d i t m n p t , i c e f e l s r e i . s e ­ , ­ Other 1970................................... 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1Q71 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 1 Q77 3 /15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 115,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973—May..................... 18,550 17,696 6,933 163 3,813 2,956 3,824 3,623 3,317 854 499 237 118 June..................... 18,825 17,987 7,318 205 4,070 3,043 3,881 3,984 2,804 839 552 140 147 July...................... 19,012 18,149 7,024 162 3,926 2,936 3,871 3,922 3,332 863 561 151 151 Aug...................... 18,978 18,091 6,973 176 4,029 2,768 3,948 3,716 3,454 887 488 151 248 Sept...................... 18,725 17,948 6,809 160 3,918 2,731 4,070 3,718 3,351 777 459 143 175 Oct........................ 19,298 18,438 6,983 216 3,989 2,778 4,099 3,774 3,582 861 510 187 163 Nov...................... 19,588 18,797 7,070 252 4,084 2,733 4,287 3,788 3,652 790 512 131 148 Dec....................... 20,719 20,057 7,718 271 4,589 2,859 4,306 4,155 3,877 662 428 119 115 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 7,949 303 4,992 2,654 4,426 4,554 5,195 844 594 121 129 Mar...................... 25,654 24,805 9,080 421 5,807 2,852 4,641 5,125 5,958 849 545 160 144 Apr.p................... 26,559 25,702 9,587 361 6,157 3,069 4,805 5,810 5,501 857 589 99 169 May**................... 29.574 28,691 10,168 363 6,594 3,211 5.080 6.486 6,956 883 611 113 159 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 12. 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.i> May25 Europe: Austria...................................................... 18 14 15 14 11 14 36 20 40 32 Belgium-Luxembourg.............................. 120 107 190 150 145 148 134 143 216 183 155 Denmark.................................................. 59 67 52 50 53 48 50 60 76 57 67 Finland..................................................... 118 125 114 97 89 108 106 93 97 115 124 France....................................................... 330 368 413 461 525 621 649 682 743 721 623 Germany................................................... 321 281 313 366 392 311 342 382 395 355 441 Greece....................................................... 29 20 16 26 23 35 41 36 37 47 48 Italy........................................................... 255 278 242 282 . 363 316 313 330 482 504 512 Netherlands.............................................. 108 155 144 132 172 133 139 147 174 174 202 Norway..................................................... 69 70 67 74 82 72 85 91 76 86 96 Portugal.................................................... 19 14 18 23 22 23 25 25 37 29 33 Spain......................................................... 207 251 183 183 189 222 208 180 284 318 322 Sweden...................................................... 164 184 166 155 177 153 135 106 121 132 95 Switzerland............................................... 125 206 234 242 203 176 240 338 270 327 427 Turkey....................................................... 6 6 6 8 16 10 11 9 16 18 8 United Kingdom..................................... 997 1,357 1,304 1,236 1,210 1,456 1,490 1,621 2,009 1,626 2,164 Yugoslavia................................................ 22 10 10 8 19 10 9 15 12 13 25 Other Western Europe............................. 20 21 26 34 26 27 19 20 22 28 45 U.S.S.R...................................................... 41 42 46 49 51 46 29 36 33 30 38 Other Eastern Europe............................. 49 83 97 87 72 59 64 65 70 65 96 Total.................................................. 3,067 3,664 3,654 3,678 3,843 3,985 4,104 4,416 5,190 4,865 5,552 Canada.......................................................... 1,914 2,186 1,909 2,210 1,979 1,960 1,880 2,037 2,243 2,190 2,359 Latin America: Argentina.................................................. 379 442 455 469 485 498 521 539 679 686 641 Bahamas 1................................................ 519 488 623 702 612 873 577 1,041 1,287 1,148 1,919 Brazil......................................................... 649 915 879 837 826 900 953 958 1,114 1,180 1,315 Chile.......................................................... 52 50 40 80 125 151 136 155 180 193 165 Colombia.................................................. 418 422 423 423 413 397 425 428 459 467 473 Cuba.......................................................... 13 13 13 15 13 12 11 11 13 13 13 Mexico...................................................... 1,202 1,348 1,309 1,368 1,337 1,370 1,344 1,418 1,426 1,627 1,650 Panama..................................................... 244 262 252 273 263 266 294 297 345 390 406 Peru........................................................... 145 176 178 208 204 178 186 184 194 224 264 Uruguay.................................................... 40 35 39 45 47 55 58 51 44 38 38 Venezuela.................................................. 383 441 430 436 469 517 482 510 586 627 557 Other Latin American republics............. 388 394 409 431 465 490 542 546 600 617 618 Netherlands Antilles and Surinam......... 14 38 31 23 17 13 17 19 29 20 27 Other Latin America............................... 36 91 91 137 124 140 356 461 268 259 188 Total.................................................. 4,480 5,115 5,171 5,448 5,401 5,861 5.904 6,619 7,224 7,488 8,274 Asia: China, People’s Rep. of (China Mainland) 1 6 7 22 36 31 24 19 27 19 18 China, Republic of (Taiwan).................. 194 183 141 128 117 140 119 147 183 231 315 Hong Kong.............................................. 93 116 130 121 124 147 169 189 170 179 166 India.......................................................... 14 17 19 14 16 16 16 15 19 18 25 Indonesia.................................................. 87 77 81 89 96 88 105 107 97 71 105 Israel......................................................... 105 133 145 145 155 166 153 140 165 140 135 Japan........................................................ ,152 5,791 5,801 5,746 ,034 6,400 6.466 ,960 7,857 8,599 9,714 Korea....................................................... 296 336 348 372 369 403 432 477 498 555 632 Philippines................................................ 149 129 121 105 118 181 189 182 197 223 258 Thailand.................................................... 191 185 179 206 225 273 322 364 405 434 389 Other......................................................... 300 350 361 349 377 394 466 560 521 691 661 Total.................................................. 5,584 7,321 7,331 7,297 7,666 8,238 8,463 9,159 10,138 11,160 12,415 Africa: Egypt......................................................... 21 41 43 38 40 35 42 40 42 44 54 Morocco.................................................... 4 5 11 4 7 5 4 4 21 9 4 South Africa............................................. 143 151 157 150 147 129 133 134 131 153 206 Zaire.......................................................... 13 49 48 51 61 60 56 67 61 79 72 Other......................................................... 118 173 146 163 155 159 178 175 210 192 218 Total.................................................. 299 419 405 406 410 413 420 466 477 554 Other countries: Australia................................................... 291 230 218 223 251 243 279 268 328 318 353 All other.................................................... 40 41 36 36 36 43 37 49 64 59 66 Total.................................................. 330 271 254 259 287 286 316 317 392 377 42.0 Total foreign countries................................ 15,674 18.977 18.724 19.297 19.587 20,718 21,080 22.967 25.653 26.558 29,572 International and regional........................... 3 1 1 1 1 1 1 1 1 1 1 Grand total....................................... 15,676 18.978 18.725 19.298 19.588 20,719 21,081 22.968 25.654 26.559 29,574 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

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 13. 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 er ­ c fo u r r i e r n i e g n n ­ U K d n i o i n m t g 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 t A n h t l e l r r ies Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1970................... 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971................... 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 19722 ................ J \5 4 , , 0 9 2 5 9 4 4 4 , , 5 5 3 5 9 5 8 83 3 3 6 4 4 3 3 0 0 3 3 , ,2 2 8 7 9 6 4 3 3 75 5 4 4 0 0 1 1 4 4 5 5 7 7 0 01 4 4 4 0 0 6 6 2 1 , , 0 99 1 6 2 3 35 1 3 9 9 88 0 1 0 5 5 0 1 3 4 1973—May.... 5,523 5,020 932 545 3,543 455 48 131 923 511 2,006 335 1,058 558 June___ 5,609 5,100 978 550 3,572 464 45 131 980 523 2,002 316 1,096 561 July....... 5,628 5,119 957 554 3,609 455 54 128 1,029 517 1,982 315 1,122 535 Aug....... 5,524 5,012 1,002 514 3,496 466 46 137 1,007 404 1,963 309 1,157 548 Sept....... 5,410 4,885 1,010 508 3,367 456 70 131 976 418 1,941 256 1,186 501 Oct........ 5,593 5,037 1,041 538 3,458 476 80 130 1,012 491 1,980 262 1,203 514 Nov....... 5,788 5,248 1,127 555 3,566 463 78 138 1,059 484 2,088 255 1,246 516 Dec....... 5,862 5,310 1,129 571 3,610 480 72 140 1,099 489 2,072 247 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 ... 5,873 5,270 1,166 580 3,525 524 79 144 1,158 457 2,061 249 1,293 511 Mar....... 6,049 5,432 1,253 627 3,552 542 75 146 1,263 473 2,129 248 1,300 490 Apr.p. .. 6,660 6,018 1,550 721 3,747 566 76 190 1,546 478 2,344 246 1,328 529 May p. .. 6,706 6,088 1,548 746 3,793 550 67 214 1,535 467 2,401 233 1,336 520 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 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S., Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign ch P a u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e a s t a s e le p s s u o r r ­ regional Total Official Other 1971............................... 1,672 130 1,542 1,661 -119 14,593 13,158 1,435 1,687 2,621 -935 1,385 1,439 -57 1972............................... 3,316 57 3,258 3,281 -23 19,073 15,015 4,058 1,901 2,961 -1,060 2,532 2,123 409 1973............................... 305 -165 470 465 6 18,543 13,810 4,733 1,474 2,467 -993 1,729 1,554 176 1974—Jan.-MayP. ... -554 166 -709 -688 -22 6,501 5,805 696 466 1,382 -915 943 925 19 1973—May................... -48 -33 -15 * -15 1,142 1,101 41 142 152 -9 137 125 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 1,807 1,722 86 97 336 -238 129 131 -2 Nov................... -691 -5 -686 -722 36 1,948 1,692 256 104 317 -213 156 178 -22 Dec.................... -486 1 -487 -506 19 1,336 1,359 -23 144 209 -65 159 144 15 1974—Jan..................... -432 20 -452 -472 19 1,715 1,453 262 71 364 -292 209 207 2 Feb.................... -45 31 -76 -37 -39 1,200 1,188 12 100 145 -45 206 206 -1 Mar................... 157 166 — 10 -10 1,672 1,474 198 102 398 -295 167 183 -16 Apr.p................. -234 -82 -152 -171 19 1,060 844 216 103 323 -219 189 153 36 May**................. 11 29 -19 -7 -12 853 845 8 89 153 -63 173 175 -2 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 15. 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 Other1 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....................... 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 1974—Jan.-Mayp 3,756 3,381 375 160 7 193 104 -14 42 491 -65 -46 -17 12 1973—May.......... 778 898 -120 -2 -43 -14 -22 -38 3 -116 -7 -16 11 8 June.......... 766 632 134 2 -23 7 52 15 21 74 8 -2 55 -2 July........... 880 564 316 67 -19 25 80 28 28 210 19 11 71 5 A Se u p g t . . . . . . . . . . . . . . . . . . . . . . . 9 94 7 8 2 6 7 3 3 1 4 2 34 1 1 4 6 5 3 3 6 1 6 1 0 8 5 57 4 4 1 0 5 3 1 4 4 2 1 4 6 5 9 10 * 2 11 7 2 81 1 - -3 6 Oct............ 1,369 1,272 96 6 -7 5 -34 68 25 62 -26 16 41 4 Nov........... 1,482 1,088 394 106 27 54 68 67 6 327 -18 -9 108 -14 Dec............ 873 878 -4 30 9 32 -64 -25 7 -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........... 896 846 49 14 -26 40 24 14 25 91 -21 9 -29 -1 Apr.p........ 575 559 16 22 17 35 -5 -14 -35 19 -10 2 3 2 May^........ 571 590 -19 18 7 29 2 -36 -5 16 -7 -16 -14 2 1 Includes international and regional organizations. 16. 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 r t o a 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 r r ies I r n e t g l. i o a n n a d l 1971....................... 703 15 35 -1 216 327 39 631 37 19 -2 * -21 39 1972....................... 1,871 336 77 74 135 357 315 1,293 82 22 323 2 * 148 1973....................... 1,948 201 -33 -19 307 275 473 1,204 49 44 588 * 10 52 1974—Jan.-May p 321 76 28 -2 65 96 -13 249 18 5 -221 * * 270 1973—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 D A O S N e u e c o p t c g v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1 - - 1 1 1 - 3 2 2 1 9 8 3 3 5 1 4 3 9 2 1 11 0 * * 1 —2 4 * 1 - - 4 2 3 1 5 8 6 7 -1 7 6 5 1 4 6 0 7 4 3 1 1 2 2 0 5 1 1 1 9 2 8 5 2 4 6 6 2 2 -2 - - 1 1 1 4 * 1 4 3 6 1 1 - - 1 2 8 0 1 3 9 1 2 1 * * * * * * * * * -1 - - 3 3 - 0 2 3 9 3 3 4 1974—Jan............. r89 3 25 * 23 117 -9 159 14 1 -104 * * r18 M Fe a b r .. . . . . . . . . . . . . . . . . . . . . . -1 1 4 4 4 9 1 1 * * — 2 * 6 * -6 4 9 4 -1 -6 5 -7 3 1 0 - -1 2 -5 6 -1 - 1 1 9 * * * * - 2 4 1 6 5 A M p a r y .* P 3. . . . . . . . . . . . . . . . 20 27 0 6 1 0 0 ♦ 3 * * 28 8 -2 2 0 3 17 1 1 2 11 0 4 3 -1 5 3 * * * * * - 8 3 6 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. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. 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 1971—Mar.............................. 511 314 1972.................. -651 -90 -561 492 -651 -69 -296 -66 29 419 300 1973................. -818 139 -957 -141 -569 -120 -168 3 37 333 320 311 314 1974— Jan.-May71 -897 13 -910 240 694 -42 62 -5 10 1972—Mar.............................. 325 379 312 339 1973—May.. . 3 11 -8 -21 -12 6 6 -1 14 286 336 June... 34 7 27 10 6 13 -13 1 9 372 405 July.... -105 3 -108 -13 -93 -13 9 * 2 Aug.. .. -69 5 -75 -21 -44 -4 -8 * 3 310 364 Sept.... -25 4 -28 -28 8 -8 -1 * 2 316 243 Oct....... -240 4 -243 -25 -148 -8 -64 1 1 290 255 Nov... -236 9 -245 -47 -89 -6 -104 * * 333 231 Dec.. .. -50 51 -101 -45 -11 -15 -34 2 3 1974—Mar.p........................... 384 227 1974—Jan -291 -4 -287 -81 -204 -2 -1 -1 2 Feb___ -46 6 -52 -62 -11 -9 32 -4 I Mar__ -311 4 -315 -24 -288 -15 10 * 3 Note.—Data represent the money credit balances and Apr.?. . -183 3 -186 -47 -157 6 12 ★ * money debit balances appearing on the books of reporting Mayp. . -65 5 -70 -26 -34 -22 9 * 3 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 19a. 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 Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies............................ 1971—Dec.............. 61,253 4,791 2,310 2,481 54,678 11,210 24,525 1,167 17,775 1,784 1972—Dec.............. 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 22,910 2,268 1973—Apr.............. 88,565 3,882 1,661 2,221 81,821 12,399 41,745 1,993 25,683 2,862 May............. 90,388 4,185 1,915 2,270 83,158 13,116 41,414 1,875 26,753 3,046 June............. 96,107 4,925 2,325 2,601 87,786 13,149 44,953 1,805 27,879 3,395 July............. 100,987 5,350 2,502 2,848 92,071 14,934 46,155 1,934 29,048 3,567 Aug.............. 102,392 5,109 2,286 2,823 93,470 15,289 46,012 2,012 30,156 3,813 Sept.............. 108,080 4,806 1,916 2,890 98,681 16,778 48,084 2,147 31,672 4,593 Oct............... 111,087 4,802 1,831 2,970 101,789 17,721 49,477 2,239 32,352 4,496 Nov.r........... 117,325 5,808 2,848 2,961 106,041 18,362 51,975 2,108 33,497 5,476 Dec.r........... 121,951 4,882 1,882 3,000 112,323 19,222 55,910 2,503 34,687 4,746 1974—Jan............... 124,000 4,605 1,552 3,054 114,789 19,501 57,100 2,733 35,455 4,605 Feb............... 127,240 4,696 1,893 2,802 117,481 20,341 57,163 2,957 37,020 5,064 Mar.r.......... 136,983 8,046 5,443 2,603 123,763 22,379 60,264 3,030 38,090 5,174 Apr........ 137,584 6,006 3,432 2,575 126,500 22,583 62,084 3,145 38,688 5,078 Payable in U.S. dollars. 1971—Dec.............. 40,137 4,534 2,303 2,231 35,026 6,648 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—Apr............... 55,685 3,558 1,633 1,924 51,138 8,043 28,682 1,023 13,390 989 May............. 56,118 3,900 1,888 2,012 51,068 8,178 27,836 1,015 14,038 1,149 June............. 59,984 4,575 2,276 2,298 54,117 8,118 30,457 1,037 14,505 1,292 July.............. 62,239 4,775 2,467 2,308 56,058 8,852 30,964 1,123 15,118 1,407 Aug.............. 63,553 4,502 2,227 2,275 57,670 9,660 30,545 1,193 16,272 1,380 Sept.............. 66,361 4,386 1,865 2,521 60,362 10,315 31,767 1,186 17,093 1,613 Oct............... 68,400 4,356 1,789 2,567 62,461 11,223 32,595 1,223 17,419 1,583 Nov.r.......... 73,637 5,336 2,787 2,549 66,595 11,874 34,992 1,302 18,427 1,705 Dec.r........... 79,502 4,428 1,844 2,583 73,308 12,844 39,052 1,587 19,824 1,767 1974—Jan............... 82,018 4,166 1,515 2,651 76,101 13,256 40,082 1,848 20,915 1,751 Feb............... 83,907 4,311 1,838 2,473 77,679 13,769 40,185 2,024 21,701 1,918 Mar. r.......... 92,838 7,581 5,359 2,281 83,272 15,776 42,971 1,977 22,548 1,925 Apr.............. 93,126 5,641 3,390 2,251 85,342 15,778 44,236 2,426 22,902 2,143 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 30,430 5,659 23,983 609 10,179 1,020 1973—Apr.............. 48,971 1,661 794 868 46,124 5,437 29,130 646 10,912 1,185 May............. 48,860 1,743 909 834 45,783 5,725 28,254 610 11,194 1,334 June............. 51,203 1,875 1,012 864 47,821 5,279 30,223 604 11,716 1,506 July............. 53,996 2,500 1,492 1,008 49,923 6,274 30,652 646 12,350 1,574 Aug.............. 52,880 1,877 935 942 49,423 6,849 29,525 677 12,372 1,580 Sept.............. 55,842 1,473 604 870 52,489 8,022 30,774 659 13,035 1,879 Oct............... 57,306 1,833 879 954 53,518 7,970 31,617 685 13,247 1,954 Nov.............. 61,897 2,230 1,181 1,049 56,808 8,552 33,813 700 13,743 2,859 Dec.............. 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 2,183 1974—Jan................ 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 2,087 Feb............... 63,585 1,477 616 861 59,792 9,209 34,813 916 14,853 2,317 Mar.............. 68,076 3,070 2,319 751 63,020 10,596 36,302 887 15,235 1,986 Apr.............. 68,698 2,675 1,839 837 64,124 10,695 36,785 1,073 15,572 2,097 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—Apr.............. 31,729 1,539 29,675 4,034 20,042 5,600 514 May............. 30,809 1,654 28,569 3,943 18,776 5,851 586 June............. 32,763 1,784 30,286 3,900 20,341 6,045 693 July............. 33,381 2,193 30,464 4,042 20,137 6,286 723 Aug.............. 32,807 1,538 30,569 4,887 19,134 6,549 699 Sept.............. 34,251 1,348 32,062 5,399 19,759 6,904 840 Oct............... 35,511 1,681 33,062 5,769 20,336 6,956 768 Nov.............. 39,096 2,042 36,218 6,273 22,i650 7,296 835 Dec.............. 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—Jan............... 42,131 1,368 39,932 6,825 25,098 8,010 830 Feb.............. 41,762 1,384 39,409 6,902 24,415 8,093 969 Mar.............. 46,062 2,967 42,212 8,130 25,475 8,608 882 Apr.............. 46,402 2,586 42.791 8,262 25.788 8,741 1.024 IN BAHAMAS AND CAYMANS i Total, all currencies.............................. 1971—Dec.............. 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—Apr.............. 13,039 1,395 282 1,113 11,399 6,374 5,026 244 May............. 14,090 1,488 261 1,227 12,274 6,874 5,400 328 June............. 15,614 1,909 402 1,507 13,448 7,915 5,533 256 July............. 16,466 1,927 347 1,579 14,253 8,459 5,795 286 Aug.............. 19,341 2,260 576 1,684 16,642 9,846 6,796 439 Sept.............. 20,673 2,280 489 1,791 17,890 10,596 7,294 504 Oct............... 20,698 1,976 272 1,704 18,198 10,618 7,580 524 Nov............. 21,503 2,525 824 1,702 18,412 10,367 8,045 566 Dec.............. 23,771 2,001 313 1,688 21,307 12,302 9,005 463 1974—Jan............... 24,071 2,011 228 1,783 21,581 12,232 9,349 479 Feb............... 25,657 1,882 170 1,713 23,262 13,293 9,969 513 Mar.............. 28,444 3,239 1,727 1,512 24,594 14,660 9,934 611 Apr.............. 2 28.776 2,281 803 1,478 25,872 15.495 10.376 623 For notes see p. A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Location and currency form Total Parent Other branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 61,255 3,107 662 2,445 56,051 10,743 31,059 5,513 8,735 2,097 .1971—Dec. . . .Total all currencies, 80,035 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 .1972—Dec. 88,565 4,028 1,041 2,987 81,325 12.232 46,495 9,416 13,182 3,212 . 1973—Apr. 90,389 4,387 1,080 3,308 82,578 12,892 47,016 9,227 13,443 3,423 .............May5 96,106 4,456 1,005 3,451 87,999 12,918 51,863 9,483 13,735 3.651 .............June1 100,987 4,368 1,200 3,169 92,702 14,634 54,072 9,575 14,421 3,917 .............July 102,392 4,607 1.083 3,524 93,645 15.627 54,493 8,494 15,031 4,140 .............Aug. 108,079 4,728 1,180 3,548 98,699 16,609 57,624 8,635 15,831 4.652 .............Sept. 111,087 4.680 1,298 3,382 101,719 17.253 59,304 9,073 16,089 4,i .............Oct.r 117,326 4,776 1.084 3,692 106,909 17,673 63,274 9,542 16,420 5,641 .............Nov. 121,951 5,070 1,158 3,912 111,754 18.233 65,650 10,094 17,777 5,128 .............Dec. 123,969 5,319 1,738 3,581 113,891 18,533 67.852 9,547 17,959 4,759 .1974—Jan. 127,240 5,853 2,009 3,844 116,440 18.942 67,979 10,119 19,399 4,947 .............Feb. 136,983 6,661 2,131 4,530 125,002 21,043 71,936 10,474 21,550 5,320 .............Mar. 137,584 6,423 1,924 4,499 125,830 21,996 71,464 11,068 21,301 5,331 .............Apr. 41,980 2,670 507 2,163 38,034 6,624 22,050 4,433 4,928 1,276 .1971—Dec. . Payable in U.S. dollars 56,375 3,104 2,256 51,811 8,178 30,253 6,913 6,467 1,459 . 1972—Dec. 59,077 3,497 884 2,613 53,923 8,251 30,902 7,623 7,146 1,657 .1973—Apr. 59,513 3,843 915 2,928 53,945 8,418 31,104 7,259 7,164 1,725 .............May 62,833 3,911 866 3,045 57,139 8,376 34,403 7,247 7,114 1,783 .............June: 64,456 3,775 1,036 2,739 58,799 9,219 35,153 7,005 7.421 1,882 .............July 65,496 4,057 943 3,114 59,347 10,237 35,458 6,165 7,487 2,092 .............Aug. 68,604 4,146 1,021 3,125 62,196 10.627 37,260 6,242 8,067 2,263 .............Sept. 70,058 4,135 1,139 2,996 63,693 11,312 37,622 6,337 8.422 2,230 .............Oct. 75,735 4,190 928 3,262 68,438 11,825 41,598 6,290 8,724 3,107 .............Nov. 80,383 4,488 993 3,495 73,284 12,571 43,702 7,327 9,684 2,611 .............Dec. 82,281 4,820 1,609 3,211 74,986 12,755 44,997 7,172 10,062 2,475 .1974—Jan. 84,548 5,349 1,857 3,493 76,732 12.942 44.853 7,809 11,128 2,466 .............Feb. 93,355 6,086 1,924 4,161 84,471 15,041 49,065 8,205 12,159 2,799 .............Mar. 93,785 5,r'~ 1,752 4,117 85,028 14,519 48,147 8,664 12,798 2,! ............Apr. IN UNITED KINGDOM 34,552 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 .1971—Dec. .. .Total, all currencies 43,684 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 .1972—Dec. 48,971 1,969 164 1,805 45,! 3,397 27,623 7,485 7,364 1,133 .1973—Apr. 48,860 2,028 170 1,857 45,575 3,614 26,987 7,304 7,669 1,258 .............May 51,203 1,957 122 1,835 47,936 3,321 29,151 7,565 7,899 1,310 .............June 53,996 1,875 163 1,711 50,707 3,883 30,797 7,793 8,234 1,414 .............July 52,880 2,080 171 1,909 49,293 3,731 30,266 6,730 8,565 1,508 .............Aug. 55,842 2,125 161 1,964 51,957 4,118 31,963 6,929 8,947 1,759 .............Sept. 57,306 2,026 129 1,897 53,475 4,036 33,169 7,118 9,153 1,805 .............Oct. 61,897 2,197 143 2,054 57,042 3,886 36,052 7,680 9,424 2,657 .............Nov. 61,732 2,431 136 2,295 57,311 3,944 35,063 8,056 10,248 1,990 .............Dec. 63,726 2,429 346 2,083 59,356 4,350 36,996 7,679 10,332 1,941 . 1974—Jan. 63,585 2,573 269 2,303 58,956 4,193 35,489 8,160 11,112 2,057 .............Feb. 68,076 3,167 353 2,814 63,096 4,587 37,836 8,456 12,217 1,813 .............Mar. 68,896 3,179 465 2,714 63,840 4,975 36,625 9,064 13,175 1,877 .............Apr. 24,845 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 .1971—Dec. .Payable in U.S. dollars 30,933 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 .1972—Dec. 32,950 1,735 119 1,616 30,684 2,318 17,599 6,221 4,546 532 .1973—Apr. 32,051 1,809 138 1,671 29,635 2,225 16,906 5,877 4,626 607 .............May 33,491 1,731 102 1,629 31,185 2.234 18,318 5.971 4,663 575 .............June 33,803 1,661 148 1,513 31,549 2,316 18,639 5,855 4,738 593 .............July 32,960 1,846 148 1,698 30,433 2,213 18,566 4,995 4,660 681 .............Aug. 34,886 1,866 137 1,729 32,213 2,245 19,836 5,110 5,022 807 .............Sept. 35,342 1,831 103 1,727 32,781 2,515 20,155 4,934 5,177 730 .............Oct. 39,527 1,940 119 1,821 36,032 2,468 23,059 4.971 5,534 1,555 .............Nov. 39,658 2,173 113 2,060 36,646 2,519 22,135 5,839 6,152 839 .............Dec. 40,979 2,200 329 1,871 37,884 2,846 22,971 5,806 6,262 895 . 1974—Jan. 40,930 2,346 243 2,103 37,579 2,729 21,464 6,342 7,044 1,006 .............Feb. 45,579 2,927 329 2,598 41,708 3,063 24,300 6,694 7,650 945 .............Mar. 46,305 2,935 441 2,494 42,379 3.234 23,308 7,225 8,612 992 .............Apr. IN BAHAMAS AND CAYMANS 1 8,477 750 7,539 1,649 4,766 1,124 188 .1971—Dec. .. .Total, all currencies 13,091 1,220 11,703 1,964 9,395 1,344 168 . 1972—Dec. 13,039 1,126 11,537 1,672 8,224 1,642 375 . 1973—Apr. 14,090 1,320 12,440 1,944 8,980 1,516 330 .............May 15,613 1,458 13,829 2,272 10,170 1,387 326 .............June ; 16,466 1,339 14.803 2,691 10,484 1,628 323 .............July 19,341 1,521 17,410 3,917 11,691 1,803 409 .............Aug. 20,673 1,608 18,464 4,321 12,255 1,887 601 .............Sept. 20,698 1,663 18,463 4.591 11,902 1,969 572 .............Oct. 21,504 1,559 19,363 4,744 12,857 1,762 582 .............Nov. 23,771 1,517 21.803 5,526 14,453 1,824 451 .............Dec. 24,071 1,848 21,782 5,293 14,569 1,920 441 .1974—Jan. 25,657 2,166 23,026 5,617 15,248 2,161 465 .............Feb. 28,444 2,192 25,692 6.591 16,793 2,309 560 .............Mar. 228,776 2,202 26,095 7,200 16,784 2,111 479 ............Apr. Digitized for FFoRr AnoSteEsR se e p. A-76. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. 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 U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 1971 . 294 43.195 13,815 1972. 325 50,934 215,530 1969....... 1,491 1.062 161 183 86 663 534 1970....... 1,141 697 150 173 121 372 443 1973— J J u un ly e . . . 2 3 8 34 0 5 5 7 7, ,0 54 5 5 4 1 1 5 5 , , 4 4 6 8 4 6 1971—Dec. 2 \ (1 1 , , 6 5 4 0 8 7 1 1 , ,0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 7 8 7 0 4 5 4 8 3 7 Aug.. 259 55,855 15,455 O Se c p t t . . . . . 2 42 5 6 0 5 5 4 5, ,7 4 6 0 6 7 3 1 1 5 7, . 1 4 2 3 2 7 1972—Dec. 2.. ( ( 2 1 , . 2 9 5 6 5 5 1 1 , , 7 4 9 4 2 6 1 5 69 5 3 3 4 07 0 4 68 2 8 7 7 0 2 2 4 5 8 3 5 5 Nov.. 420 52,998 17,104 Dec... 251 52,070 17,068 1973—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 May. 429 54.195 17,021 Oct.. . . 2:907 2; 244 66 449 148 992 881 June.. 384 54,442 17,014 Nov... , 3.152 2.517 64 435 136 1.044 922 Dec.r. . 3,098 2.518 37 430 113 1,053 775 1 Marketable U.S. Treasury bills, certificates of in­ 1974—Jan.. . . 2,809 2,237 59 364 149 1,050 772 debtedness, notes, and bonds and nonmarketable U.S. Feb.. . . 3,199 2,564 65 367 203 1,178 868 Treasury securities payable in dollars and in foreign Mar.... 3,652 2,987 99 348 218 1,332 1,029 currencies. Apr.. . . 3.554 2.936 60 350 209 1.472 928 2 The value of earmarked gold increased because of the change in par value of the U.S. dollar in May 1972. 3 The value of earmarked gold increased because of the 1 Negotiable and other readily transferable foreign obligations payable on demand change in par value of the U.S. dollar in Oct. 1973. or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. Note.—Excludes deposits and U.S. Treasury securities 2 Data on the two lines for this date differ because of changes in reporting coverage. held for international and regional organizations. Ear­ Figures on the first line are comparable in coverage with those shown for the preceding marked gold is gold held for foreign and international date; figures on the second line are comparable with those shown for the following date. accounts and is not included in the gold stock of the United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 22. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in 1 foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter’s name 1969—Dec...................... 2,124 1,654 471 4,159 3,532 244 383 1970—June..................... 2,387 1,843 543 4,457 3,868 234 355 Sept...................... 2,512 1,956 557 4,361 3,756 301 305 Dec...................... 2,677 2,281 496 4,160 3,579 234 348 1971—Mar...................... 2,437 1,975 462 4,515 3,909 232 374 June..................... 2,375 1,937 438 4,708 4,057 303 348 Sept...................... 2,564 2,109 454 4,894 4,186 383 326 / 2,704 2,229 475 5,185 4,535 318 333 Dec.1................... 1 2,763 2,301 463 5,004 4,467 290 247 1972—Mar...................... 2,844 2,407 437 5,177 4,557 318 302 June..................... 2,925 2,452 472 5,331 4,685 376 270 Sept...................... 2,933 2,435 498 5,495 4,833 432 230 Dec.1................... / \ 3 3 , , 1 4 1 5 9 3 2 2 , , 6 9 3 4 5 2 4 5 8 11 4 6 5 , , 2 72 5 3 4 5 5, , 5 0 7 74 6 4 3 1 9 1 6 2 2 3 8 8 2 1973—Mar...................... 3,392 2,871 522 7,092 6,191 464 437 June..................... 3,373 2,795 579 7,329 6,468 503 358 Sept...................... 3,720 3,001 720 7.742 6,791 535 416 Dec.^J................... 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 75 23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1972 1973 1972 1973 Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec p 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 i 371 310 415 364 4t9 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 32 32 31 36 42 * 1 11 48 11 26 33 35 31 32 65 62 77 77 120 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 i Includes Bermuda. Data exclude claims held through U.S. banks, and intercompany accounts Note.—Reported by exporters, importers, and industrial and com- between U.S. companies and their foreign affiliates, mercial concerns and other nonbanking institutions in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1974 24. 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 Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca 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 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971 Mar........................ 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June............. 3.172 2,982 151 687 677 180 63 625 138 312 75 74 Sept................ 2,939 3,019 135 672 765 178 60 597 133 319 85 75 Dec.1 .......... / \ 3 3 , , 1 1 3 5 8 9 3 3 , , 1 11 1 8 8 1 12 28 8 7 7 0 0 5 5 7 76 6 1 7 1 1 7 7 4 4 6 6 0 0 6 6 5 53 2 1 1 4 3 1 6 3 3 2 2 7 5 8 8 6 6 8 85 4 1972—Mar..... ....----- 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June............... 3,300 3,255 108 713 797 188 61 671 161 377 86 93 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec.1............ / 3,540 3,370 163 715 833 184 60 659 156 406 87 109 1 3,866 3,493 187 758 868 187 64 703 134 399 82 111 1973—Mar.................... 4.045 3,635 151 816 882 165 63 796 124 413 101 125 June............. 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.p............. 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. OPEN MARKET RATES (Per cent per annum) Germany, Switzer­ Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks’ day bills, day bills, day discount 3 months1 money2 bills, 3 months money deposit money3 60-90 money 5 3 months money rate 3 months rates days4 1972. . .................. 3.55 3.65 6.06 5.02 4.83 3.84 4.95 3.04 4.30 2.15 1.97 4.81 1973......... 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1973—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 7.00 10.63 5.92 7.24 5.00 Sept........ 6.41 6.31 12.12 11.37 9.13 9.50 9.73 7.00 9.76 5.67 7.97 5.25 Oct........ 6.56 6.54 11.37 10.75 10.53 9.50 10.99 7.00 10.57 5.25 7.93 5.25 Nov........ 6.48 6.56 13.38 11.76 8.80 9.50 10.96 7.00 11.30 5.29 7.88 5.25 Dec............. 6.39 6.58 13.74 12.41 9.57 9.46 11.14 7.00 11.89 6.41 8.75 5.40 1974—Jan.............. 6.31 6.50 13.67 12.09 10.36 9.25 13.63 7.00 10.40 6.50 9.36 6.00 Feb............. 6.10 6.49 13.63 11.94 8.96 9.50 12.48 7.00 9.13 6.50 9.73 6.00 Mar............. 6.24 6.50 14.39 11.95 11.31 9.50 11.88 7.00 11.63 6.00 9.07 6.00 Apr........... 7.18 6.93 13.20 11.53 10.00 9.50 5.63 5.33 6.64 9.86 6.50 M ay . . 8.22 7.48 13.31 11.36 10.72 9. 50 8.36 7.00 9.00 6.50 8.66 8.36 12.61 11.23 10.58 9.50 6. 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. NOTES TO TABLES 19A AND 19B ON PAGES A-72 AND A73 RESPECTIVELY: 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 $26,646 million and $26,941 million, respectively, on Apr. 30, 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

JULY 1974 □ CENTRAL BANK AND EXCHANGE RATES A 77 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of June 30, 1974 Rate as of June 30, 1974 Country Country Per Month Per Month cent effective cent effective Argentina. 18.0 Feb. 1972 Italy................... 9.0 Mar. 1974 Austria__ 6.50 May 1974 Japan................. 9.0 Dec. 1973 Belgium. .. 8.75 Feb. 1974 Mexico............... 4.5 June 1942 Brazil........ 18.0 Feb. 1972 Netherlands....... 8.0 Dec. 1973 Canada— 8.25 Apr. 1974 Norway.............. 5.5 Mar. 1974 Denmark......................... 10.0 Jan. 1974 Sweden.............. 6.0 Apr. 1974 France............................. 13.0 June 1974 Switzerland........ 5.5 Jan. 1974 Germany, Fed. Rep. of. 7.0 June 1973 United Kingdom 11.75 May 1974 Israel................................ Venezuela.......... 5.0 Oct. 1970 Note.—Rates shown are mainly those at which the central bank either Japan—Penalty rates (exceeding the basic rate shown) for borrowings discounts or makes advances against eligible commercial paper and/or from the central bank in excess of an individual bank’s quota; govt, securities for commercial banks or brokers. For countries with t United Kingdom—The Bank’s minimum lending rate, which is the more than one rate applicable to such discounts or advances, the rate average rate of discount for Treasury bills established at the most recent shown is the one at which it is understood the central bank transacts tender plus one-half per cent rounded to the nearest one quarter per cent the largest proportion of its credit operations. Other rates for some of above. these countries follow: Venezuela—2 per cent for rediscounts of certain agricultural paper, 4Vi Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5 l/i per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1970..................... 111.36 3.8659 2.0139 95.802 13.334 18.087 27.424 13.233 239.59 .15945 .27921 1971..................... 113.61 4.0009 2.0598 99.021 13.508 18.148 28.768 13.338 244.42 .16174 .28779 1972..................... 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973..................... 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1973—June......... 141.58 5.2408 2.6643 100.160 17.130 23.472 38.786 13.753 257.62 .16792 .37808 July......... 141.78 5.8124 2.8151 100.049 18.041 24.655 42.821 13.605 253.75 .17200 .37801 Aug.......... 141.48 5.5917 2.7035 99.605 17.521 23.527 41.219 13.220 247.57 .17423 .37704 Sept.......... 146.83 5.5695 2.7089 99.181 17.480 23.466 41.246 12.987 241.83 .17691 .37668 Oct........... 148.22 5.5871 2.7328 99.891 17.692 23.718 41.428 12.938 242.92 .17656 .37547 Nov.......... 148.22 5.2670 2.5882 100.092 16.744 22.687 38.764 12.767 238.70 .16904 .35941 Dec.......... 148.33 5.1150 2.4726 100.058 16.089 21.757 37.629 12.328 231.74 .16458 .35692 1974—Jan........... 148.23 4.8318 2.3329 100.859 14.981 19.905 35.529 11.854 222.40 .15433 .33559 Feb........... 148.50 5.0022 2.4358 102.398 15.570 20.187 36.844 12.131 227.49 .15275 .34367 Mar.......... 148.55 5.1605 2.5040 102.877 16.031 20.742 38.211 12.415 234.06 .15687 .35454 Apr........... 148.41 5.3345 2.5686 103.356 16.496 20.541 39.594 12.711 238.86 .15720 .36001 May......... 148.44 5.5655 2.6559 103.916 17.012 20.540 40.635 12.841 241.37 .15808 .35847 June......... 148.34 5.5085 2.6366 103.481 16.754 20.408 39.603 12.735 239.02 .15379 .35340 Malaysia Mexico Nether­ New Norway Portugal South Spain Sweden Switzer­ United Period (dollar) (peso) lands Zealand (krone) (escudo) Africa (peseta) (krona) land Kingdom (guilder) (dollar) (rand) (franc) (pound) 1970..................... 32.396 8.0056 27.651 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1971..................... 32.989 8.0056 28.650 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972..................... 35.610 8.0000 31.153 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1973..................... 40.988 8.0000 35.977 136.04 17.406 4.1080 143.88 1.7178 22.970 31.700 245.10 1973—June......... 40.865 8.0000 36.582 132.40 18.192 4.2175 148.07 1.7229 23.746 32.757 257.62 July.......... 43.121 8.0000 38.700 135.02 18.932 4.4624 148.63 1.7385 24.732 35.428 253.75 Aug.......... 43.859 8.0000 37.596 135.33 18.145 4.3243 148.52 1.7553 24.070 33.656 247.57 Sept.......... 43.361 8.0000 38.542 145.07 18.048 4.2784 148.50 1.7610 23.769 33.146 241.83 Oct........... 43.641 8.0000 40.011 148.64 18.285 4.3014 148.54 1.7576 23.942 33.019 242.92 Nov.......... 41.838 8.0000 37.267 147.74 17.872 4.1155 148.45 1.7479 23.019 31.604 238.70 Dec........... 41.405 8.0000 35.615 144.34 17.651 3.9500 148.66 1.7571 22.026 31.252 231.74 1974—Jan........... 40.094 8.0000 34.009 139.08 16.739 3.7195 148.66 1.7205 20.781 29.727 222.40 Feb........... 40.489 8.0000 35.349 140.31 17.351 3.8567 148.76 1.6933 21.373 31.494 227.49 Mar.......... 41.152 8.0000 36.354 143.40 17.734 3.9519 148.88 1.6927 21.915 32.490 234.06 Apr.......... 41.959 8.0000 37.416 145.12 18.170 4.0232 148.85 1.7080 22.730 33.044 238.86 May......... 42.155 8.0000 38.509 146.07 18.771 4.1036 148.78 1.7409 23.388 34.288 241.37 June......... 41.586 8.0000 37.757 145.29 18.410 4.0160 148.86 1.7450 22.885 33.449 239.02 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 78 GOLD RESERVES □ JULY 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 China, End of mated Mone­ United mated Algeria Argen­ Aus­ Aus­ Bel­ Canada Rep. of Den­ Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970.......................... 41,275 4,339 11,072 25,865 191 140 239 714 1,470 791 82 64 85 1971.......................... 41,160 4,732 10,206 26,220 192 90 259 729 1,544 792 80 64 85 1972.......................... 44,890 5,830 10,487 28,575 208 152 281 792 1,638 834 87 69 92 1973—May.............. 5,826 10,487 208 152 281 793 1,603 834 87 69 92 June.............. 44,865 5,831 10,487 28,545 208 152 281 793 1,603 834 87 69 92 July............... 5,826 10,487 208 152 281 793 1,603 834 87 69 92 Aug............... 5,826 10,487 208 152 281 793 1,603 834 87 69 92 Sept............... 44,880 5,826 10,487 28,565 208 152 282 793 1,603 834 87 69 92 Oct................. 6,474 11,652 231 169 312 881 1,781 927 97 77 103 Nov............... 6,476 11,652 231 169 212 881 1,781 927 97 77 103 Dec................ 49,850 6,478 11,652 31,720 231 169 311 881 1,781 927 97 77 103 1974—Jan................. 6,478 11,652 231 169 312 882 1,781 927 97 77 103 Feb................ 6,478 11,652 231 169 312 882 1,781 927 97 77 103 Mar............... *49,855 6,478 11,652 *31,725 231 169 312 882 1,781 927 97 77 103 Apr................ 6,478 11,652 231 313 882 1,781 927 97 77 May*............ 6,478 11,652 231 312 882 1,781 927 77 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi­ Nether­ period Fed. anon co lands Rep. of 1970.......................... 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971.......................... 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972.......................... 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2.059 1973—May.............. 3,834 4.469 133 264 142 156 3.134 802 109 350 93 188 2.059 June.............. 3,841 4,462 133 264 142 156 3.134 802 102 350 93 186 2.063 July............... 3.835 4.469 133 264 142 156 3,134 802 102 350 93 184 2.063 Aug................ 3.835 4.469 133 264 142 156 3,134 802 102 350 93 182 2.065 Sept............... 3,835 4.469 133 264 142 156 3,134 802 94 350 93 179 2.065 Oct................. 4.261 4.966 148 293 r 159 173 3,483 891 115 388 103 198 2.294 Nov............... 4.261 4.966 148 293 r\59 173 3,483 891 105 388 103 198 2.294 Dec................ 4.261 4.966 148 293 '•159 173 3,483 891 120 r388 103 196 2.294 1974—Jan................. 4.262 4.966 148 293 M59 173 3,483 891 113 389 103 195 2.294 Feb................ 4.262 4.966 148 r159 173 3,483 891 120 r391 103 194 2.294 Mar............... 4.262 4.966 149 r159 173 3.483 891 123 387 103 2.294 Apr................ 4.262 4.966 149 159 173 3.483 891 118 387 103 2.294 Mav*............ 4.262 4.966 149 159 173 3,483 891 103 2.294 United Bank End of Paki­ Portu­ Saudi South Spain Sweden Switzer­ Thai­ Turkey King­ Uru­ Vene­ for Intl. period stan gal Arabia Africa land land dom guay zuela Settle­ ments 2 1970.......................... 54 902 119 666 498 200 2,732 92 126 1,349 162 384 -282 1971.......................... 55 921 108 410 398 200 2,909 82 130 775 148 391 310 1972.......................... 60 1,021 117 681 541 217 3,158 89 136 800 133 425 218 1973—May.............. 60 1,022 117 721 542 220 3.162 89 136 810 133 425 199 June.............. 60 1,022 117 724 542 220 3.162 89 136 810 133 425 205 July............... 60 1,022 117 734 542 220 3.162 89 136 810 133 425 204 Aug................ 60 1.035 117 740 542 220 3.162 89 136 797 133 425 205 Sept............... 60 1.036 116 738 542 220 3,162 89 136 797 133 425 213 Oct................. 67 1,154 129 820 602 244 3,512 99 151 886 148 472 227 Nov............... 67 1,159 129 809 602 244 3.513 99 151 886 148 472 237 Dec................ 67 1,163 129 802 602 244 3.513 99 151 886 148 472 235 1974—Jan 67 1,167 129 793 602 244 3.513 99 151 148 472 271 Feb............. 67 1,171 129 783 602 244 3.513 99 151 148 472 277 Mar............. 67 1,176 129 780 602 244 3.513 99 151 148 472 274 1,180 129 780 602 244 3.513 99 151 472 271 May* 129 777 244 3.513 99 472 247 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 □ BUSINESS FINANCE A 79 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1972 1973 Industry 1970 1971 1972 1973 I II III IV I II III IV Total (170 corps.): 305,370 334,957 371,946 442,254 88,349 93,853 89,550 100,194 102,932 109,967 r108,370 120,985 309,532 339,134 376,604 448,795 89,452 95,271 90,803 101,078 104,139 111,526 r109,984 123,108 Profits before taxes.............. 29,266 35,771 41,164 53,833 9,715 10,467 8,978 12,003 12,695 14,009 M2,411 14,742 Profits after taxes................. 16,556 19,146 21,753 28,772 5,212 5,674 4,936 5,931 6,801 7,491 r6,762 7,750 Memo: PAT unadj.1....... 16,436 18,020 21,233 28,804 5,162 5,687 4,490 5,894 6,754 7,385 r6,732 7,930 10,024 10,104 10,538 11,513 2,538 2,598 2,525 2,877 2,646 2,715 2,767 3,393 Nondurable goods industries (86 corps.):2 147,808 160,973 176,329 210,118 42,254 43.395 43,865 46,815 47,519 50,223 53,168 59,207 150,312 163,448 178,915 213,904 42,930 44,273 44,689 47,023 48,259 51,191 r54,098 60,357 16,935 19,900 21,799 30,200 5,043 4,998 5,278 6,479 6,487 7,129 r7,610 8,988 9,649 10,490 11,154 15,538 2,673 2,682 2,852 2,946 3,411 3,667 r4,018 4,463 Memo: PAT unadj.1........ 9,591 10,085 10,859 15,421 2,625 2,625 2,574 3,035 3,348 3,597 r3,957 4,517 5,560 5,664 5,780 6,103 1,447 1,430 1,427 1,476 1,487 1,462 1,527 1,633 Durable goods industries (84 corps.):3 157,562 173,985 195,618 232,136 46,095 50,458 45,685 53,379 55,413 59,744 r55,202 61,778 Total revenue....................... 159,220 175,686 197,690 234,891 46,522 50,999 46,115 54,055 55,880 60,335 55,886 62,751 Profits before taxes.............. 12,332 15,871 19,365 23,633 4,673 5,469 3,697 5,524 6,208 6,880 '4,801 5,754 6,908 8,656 10,599 13,234 2,539 2,992 2,083 2,984 3,390 3,824 2,744 3,287 6,845 7,935 10,374 13,383 2,537 3,062 1,916 2,859 3,406 3,788 2,775 3,413 Dividends............................. 4,464 4,440 4,758 5,410 1,091 1,168 1,097 1,401 1,159 1,253 1,240 1,760 Selected industries: Food and kindred prod. (28 corps.): 31,966 34,584 37,624 42,628 8,824 9,229 9,531 10,039 9,561 10,183 11,014 11,871 32,393 35,090 38,091 43,198 8,941 9,371 9,665 10,115 9,711 10,348 11,201 11,938 3,122 3,372 3,573 3,957 794 880 940 960 890 962 '■1,031 1,067 1,571 1,714 1,845 2,063 414 454 486 490 470 499 r546 543 Memo: PAT unadj.1........ 1,540 1,644 1,805 2,074 408 452 492 452 453 501 r546 573 812 862 893 935 221 222 223 227 237 230 236 240 Chemical and allied prod. (22 corps.): 31,086 33,005 36,638 43,208 8,779 9,167 9,099 9,593 10,153 10,693 10,828 11,534 31,490 33,388 37,053 43,784 8,868 9,265 9,196 9,723 10,264 10,849 10,968 11,704 Profits before taxes.............. 3,863 4,123 4,853 6,266 1,172 1,184 1,216 1,280 1,487 1,606 1,599 1,572 2,111 2,290 2,672 3,504 652 667 683 669 838 886 901 883 Memo: PAT unadj.1....... 2,137 2,167 2,671 3,469 649 626 684 712 834 884 871 880 1,298 1,332 1,395 1,496 337 341 340 378 346 359 374 417 Petroleum refining (15 corps.): Sales...................................... 61,360 68,534 74,662 93,505 18,269 18,169 18,298 19,925 20,477 21,689 23,586 27,752 Total revenue....................... 62,826 69,903 76,133 95,722 18,695 18,756 18,837 19,845 20,892 22,258 23,988 28,584 Profits before taxes.............. 8,509 10,835 11,461 17,494 2,684 2,433 2,628 3,717 3,514 3,884 4,371 5,724 5,158 5,624 5,562 8,550 1,384 1,270 1,398 1,509 1,760 1,899 2,230 2,662 Memo: PAT unadj.1....... 5,131 5,519 5,325 8,505 1,356 1,273 1,119 1,578 1,737 1,888 2,192 2,688 2,917 2,952 2,992 3,147 763 742 741 746 777 748 789 832 Primary metals and prod. (23 corps.): 30,769 31,441 34,359 42,400 7,848 8,886 8,525 9,099 9,635 10,784 10,602 11,379 Total revenue....................... 31,288 31,808 34,797 43,104 7,931 8,984 8,629 9,253 9,733 10,891 10,764 11,715 2,072 1,517 1,969 3,221 386 581 413 589 618 885 r799 919 1,316 969 1,195 1,966 247 372 274 302 383 542 480 561 Memo: PAT unadj.1....... 1,371 561 1,109 2,039 260 465 128 256 397 538 496 608 Dividends............................. 913 739 653 789 162 161 162 168 200 178 184 227 Machinery (27 corps.): Sales...................................... 46,486 49,206 55,615 65,041 12,939 13,796 13,862 15,018 14,828 16,035 16,306 17,871 Total revenue....................... 47,028 49,846 56,348 65,925 13,102 13,993 14,050 15,203 14,997 16,241 16,519 18,168 Profits before taxes.............. 4,885 5,277 6,358 7,669 1,416 1,550 1,583 1,810 1,705 1,880 1,936 2,149 2,566 2,884 3,522 4,236 781 854 870 1,017 933 1,034 1,069 1,200 Memo: PAT unadj.1....... 2,477 2,560 3,388 4,208 774 848 865 902 931 1,020 1,070 1,188 Dividends............................. 1,327 1,450 1,497 1,606 373 374 375 375 389 401 407 410 Motor vehicles and equipment (9 corps.): Sales...................................... 48.905 61,481 70,653 83,016 17,273 18,953 14,703 19,725 21,616 22,256 *•17,959 21,186 Total revenue....................... 49,108 61,804 71,139 83,671 17,353 19,105 14,735 19,946 21,710 22,415 18,142 21,362 Profits before taxes.............. 2,153 5,648 6.955 7,429 2,017 2,290 628 2,019 2,716 2,704 729 1,280 Profits after taxes................. 1,306 2,948 3; 626 3,992 1,037 1,186 343 1,060 1,405 1,446 431 709 Memo: PAT unadj.1....... 1,301 2,952 3,640 4,078 1,034 1.178 337 1,091 1,429 1,436 450 763 Dividends............................. 1,434 1.433 1,762 2,063 359 '439 365 599 369 473 404 817 1 Profits after taxes (PAT) as reported by the individual companies. In of returns, allowances, and discounts, and exclude excise taxes paid di­ contrast to other profits data in the series, these figures reflect company rectly by the company. Total revenue data include, in addition to sales, variations in accounting treatment of special charges and credits. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes, (not Note—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 Bulletin, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 COMMERCIAL BANKS □ JULY 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans1 and Total3 Demand ings counts banks U.S. capital De­ Treas­ Other2 ac­ mand Time Time5 ury counts4 U.S. Govt. Other All commercial banks: 1967—Dec. 30....... 359,903235,954 62,473 61.477 77,928451,012395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31....... 401,262265,259 64,466 71,537 83,752500,657434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 316.... 421,597295,547 54,709 71,341 89,984530,665435,577 27,174 735 5,054208,870 193,744 18.360 39,978 13,661 1970—Dec. 31....... 461,194313,334 61,742 86,118 93,643 576,242480,940 30,608 1,975 7,938209,335231,084 19,375 42,958 13,686 1971—Dec. 31....... 516,564346,930 64,930104,704 99,832640,255537,946 32,205 2,908 10,169220,375272,289 25,912 47,211 13,783 1972—Dec. 31....... 598,808414,696 67,028 117,084113,128739,033616,037 33,854 4,194 10,875252,223 314,891 38,083 52,658 13,927 1973—Jan. 31....... 591,270 409,220 65,560 490 680589,850 29,260 3,890 10,400228,040318.260 42,700 52,360 13,939 Feb. 28....... 599,970 421,500 61,620 850 670598.520 29,530 4,170 11,370221,190326.260 45,480 52,780 13,952 Mar. 28....... 608,320 429,400 61,180 740 ,250596,690 25,960 4,530 11,390220 290334,520 45,420 53,330 13,974 Apr. 25....... 616,480 437,520 60,400 560 ,740604,570 26,220 4,880 10,910225 170337,390 45,830 53,750 13,998 May 30....... 622,340 444,120 58,330 890 ,470611,920 27,770 5,250 5,810229 050344,040 47.360 54,240 14,018 June 30....... 635,756 456,780 57,877 099 908629,215 31,047 5,590 10,434236 953345,191 49,299 55,740 14,046 July 25....... 634,730 456,620 56,450 660 ,410619,200 28,710 5,830 6,750228!470349,440 52,610 54,920 14,069 Aug. 29___ 641,140 462,910 54,910 320 ,300619.520 26,500 6,620 3,460224 770358,170 53,220 55,350 14,083 Sept. 26___ 646,710 466,840 55,080 790 ,730630.360 27,720 7,190 8,210228 420358,820 56,280 55,620 14,102 Oct. 31....... 654,390 471,340 56,010 040 ,760646,030 32,830 6,820 5,680241 130359,570 60,620 56,510 14,134 Nov. 28....... 659,280 475,010 57,770 500 180638,740 30,130 7,010 4,350238 540358,710 62,870 56,730 14,163 Dec. 31___ 683,799494,947 58,277 ,574 224681,847 36,839 6,773 9,865263 367365,002 58,994 58,128 14,171 Members of F.R. System 1967—Dec. 30___ 293.120 196,849 46,956 49,315 68,946373,584326,033 20,811 1,169 4,631 151,980 147,442 5,370 28.098 6,071 1968—Dec. 31.... 325.086220,285 47,881 56,920 73,756412,541 355,414 23,519 1,061 4,309 163,920162,605 8,458 30,060 5,978 1969—Dec. 316... 336.738 242,119 39,833 54,785 79,034432,270349,883 25,841 609 4,114 169,750149,569 17,395 32,047 5,869 1970—Dec. 31___ 365,940253,936 45,399 66,604 81,500465,644384,596 29.142 1,733 6.460 168,032 179,229 18,578 34,100 5,766 1971—Dec. 31.... 405.087 277,717 47,633 79,738 86,189511,353425,380 30,612 2,549 8,427 174,385209,406 25,046 37,279 5,727 1972—Dec. 31.... 465,788329,548 48,715 87,524 96,566585,125482,124 31,958 3,561 9,024 197,817239,763 36,357 41,228 5.704 1973—Jan. 31___ 458,760324,637 47,333 86,790 82,499 071458,943 27,757 3,260 8.461 677241,788 40,256 40,994 5,690 Feb. 28___ 465,024334,601 43,698 86,725 85,364 322465,495 28,037 3,537 9,364 525248,032 42,912 41,276 5,688 Mar. 28___ 470,997340,665 43,259 87,073 77,719 564462,997 24,505 3,895 9,407 540254,650 42,642 41,533 5,683 Apr. 25___ 476.739 346.865 42,517 87,357 78,219 412468,385 24,744 4,242 9.167 671256,561 43,076 41.806 5,695 May 30___ 480,394 351,223 41,030 88,141 81,169 722473,623 26,139 4,621 4,511 766261,586 44,214 42,096 5,703 June 30___ 490,533 360,908 41,080 88,545 88,227 414486,770 29,311 4,879 8.167 439261,975 46,529 43.098 5.705 July 25----- 489,240 360,813 39,331 89,096 82,091 ;607478,417 27,121 5,121 5,423 351265,401 48,761 42,539 5.706 Aug. 29.... 494,200 365,951 38,233 90,016 78,475 202478,273 24,972 5,911 2,701 082272,607 49,283 42.807 5,712 Sept. 26.... 498,322368,842 38,372 91,108 85,802 359486,975 26,182 6,480 6,740 016272,557 52,485 42,972 5,717 Oct. 31.... 504.120 371.866 39,375 92,879 96,251 ,710499,110 31.142 6,112 4,601 324271,931 56,772 43,618 5,722 Nov. 28.... 507,176 374,148 40,752 92,276 89,652 258491,405 28,522 6,298 3,359 931270,295 58,865 43,759 5.735 Dec. 31. . . 528.124391,032 41,494 9d,598 100,098 698526,837 34,782 5,843 8,273 564275.374 55,611 44,741 5.735 Large member banks: New York City:7*8 1967—Dec. 30.... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31.... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6.137 12 1969—Dec. 316... 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—Dec. 31.... 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971—Dec. 31.... 63,342 48,714 5,597 9,031 22,663 91,461 71,723 13,825 1,186 1,513 30,943 24,256 5,195 7,285 12 1972—Dec. 31.... 75,034 58,713 5,696 10,625 26,416 107,603 82,446 15,094 1,833 1,418 35,373 28,728 9,502 8,042 13 1973—Jan. 31.... 73,744 58,304 5,439 10,001 23,203 102,923 77,213 13,919 1,574 1,257 31,292 29,171 10,142 8,074 13 Feb. 28.... 75,727 61,629 4,463 9,635 23,059 105,571 79,567 14,040 1,708 1,506 30,533 31.780 10,321 8,142 13 Mar. 28.... 76,368 62,584 4,498 9,286 20,133 103,402 77,435 11,744 1,951 1,789 29,032 32,919 9,938 8,047 13 Apr. 25.... 76,834 63,395 4,254 9,185 19,710 103,622 77,295 11,935 2,229 1,732 29,068 32,331 9,891 8,093 13 May 30__ 78,078 64,505 4,424 9,149 19,587 104,550 77,980 11,780 2,491 521 30,035 33,153 10,496 8.137 13 June 30.... 79,212 65,428 4,661 9,124 24,518 111,028 82,718 15,340 2,773 1,115 30,607 32,883 11,597 8,287 13 July 25.... 79,869 66,117 4,047 9,705 23,544 110,392 81,473 13,787 2,969 769 30,164 33,784 12,857 8,212 13 Aug. 29__ 80.338 66,610 4,095 9,633 20,095 108,141 78,925 12,092 3,558 310 28,185 34.780 12,368 8,220 13 Sept. 26.... 81,900 67,694 4,075 10,131 22,531 111,675 82,016 13,069 4,019 1,073 29,656 34,199 13,729 8,231 13 Oct. 31.... 83.338 68,229 4,828 10,281 28,643 119,283 87,935 16,713 3,807 642 32,901 33,872 15,170 8,413 13 Nov. 28.... 84,529 69,048 5,035 10,446 24,917 116,040 84,824 14,864 4,087 373 31,776 33,724 14,882 8,491 13 Dec. 31... 87,643 70,571 5,516 11,556 25,170 119,984 90,237 16,746 3,619 1,689 23,226 33,957 13,486 8,607 13 For notes see p. A-82 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1974 o COMMERCIAL BANKS A 81 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK-Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans1 and Total 3 Demand ings counts banks U.S. capital De­ Treas­ Other2 ac­ mand Time Time 5 ury counts4 U.S. Govt. Other Large member banks (cont.): City of Chicago:7,8 1967—Dec. 30....... 12,744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1,346 10 1968—Dec. 31....... 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1,535 21 257 6,542 6,171 682 1,433 9 1969—Dec. 316... . 14,365 10,771 1,564 2,030 2,802 17,927 13,264 1,677 15 175 6,770 4,626 1,290 1,517 9 1970—Dec. 31....... 15,745 11,214 2,105 2,427 3,074 19,892 15,041 1,930 49 282 6,663 6,117 1,851 1,586 9 1971—Dec. 31....... 17,133 12,285 1,782 3,067 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1,682 9 1972—Dec. 31....... 21,362 16,294 1,873 3,195 3,580 26,009 19,851 1,615 160 509 7,387 10,179 3,008 1,891 9 1973—Jan. 31....... 21,026 16,371 1,562 3,093 2,939 25,035 18,709 1,364 247 358 6,605 10,135 3,276 1,895 9 Feb. 28....... 21,983 17,544 1,384 3,055 3,513 26,575 19,429 1,433 224 442 6,778 10,552 4,075 1,891 9 Mar. 28....... 22,660 17,980 1,470 3,210 3,092 26,821 19,854 1,326 266 461 6,439 11,362 3,910 1,878 9 Apr. 25....... 22,800 18,253 1,414 3,133 3,277 27,170 20,020 1,304 333 426 6,639 11,318 3,971 1,899 9 May 30....... 23,777 18,956 1,564 3,257 3,209 28,134 21,088 1,501 411 154 6,882 12,140 3,954 1,910 9 June 30....... 24,566 19,645 1,715 3,205 3,501 29,307 21,896 1,323 392 299 7,372 12,511 4,146 1,947 9 July 25....... 25,221 20,580 1,364 3,277 3,759 30,199 21,627 1,638 389 226 6,488 12,886 4,922 1,928 9 Aug. 29....... 25,400 20,676 1,322 3,402 3,569 30,358 22,272 1,355 499 86 6,725 13,607 4,647 1,941 9 Sept. 26....... 25,948 20,717 1,683 3,548 3,853 31,299 22,138 1,525 504 303 6,480 13,326 5,814 1,946 9 Oct. 31 25,489 20,022 1,621 3,846 4,146 31,015 21,837 1,481 517 194 6,863 12,782 5,895 2,033 9 Nov. 28 26,278 21,117 1,504 3,657 3,794 31,441 21,577 1,505 459 115 6,942 12,556 6,314 1,973 9 Dec. 31___ 27,195 21,649 1,685 3,861 3,848 32,542 24,235 1,696 j77 434 8,015 13,513 4,818 1,989 9 Other large member:7 •8 1967—Dec. 30 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31 119,006 83,634 15,036 20,337 28,136 151,957132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 316... . 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Dec. 31 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—Dec. 31, , 149,401 106,361 15,912 27,129 33,732 190,880 155,226 11,241 933 3,557 62,474 77,020 14,799 13,197 156 1972—Dec. 31 171,549 126,661 16,316 28,572 36,729217,170 173,913 11,133 1,173 3,860 71,376 86,372 19,392 14,687 156 1974—Jan. 31 168,522 123,907 15,844 28,771 30,426207,904 163,418 9,239 1,044 3,470 63,011 86,654 21,086 14,619 156 Feb. 28 169,711 126,893 13,957 28,861 32,497211,396 165,150 9,365 1,210 3,942 62,627 88,006 22,434 14,760 156 Mar. 28 172,604 129,983 13,615 29,006 29,626211,390165,247 8,372 1,283 3,761 60,660 91,171 22,175 14,807 156 Apr. 25 .... 175,754 133,253 13,414 29,087 30,111 215,262 168,360 8,470 1,285 4,069 61,487 93,049 22,606 14,905 156 May 30....... 175,455 133,519 12,547 29,389 31,779217,001 170,123 9,540 1,324 1,653 62,744 94,862 22,183 14,965 156 June 30___ 180,663 138,452 13,066 29,144 31,899222,344 173,183 9,177 1,371 2,988 64,875 94,771 24,032 15,260 156 July 25___ 178,493 137,056 11,982 29,455 28,878217,220 169,837 8,518 1,368 2,223 61,418 96,310 22,492 15,182 156 Aug. 29___ 181,404 140,151 11,572 29,681 29,551 221,043 171,725 8,467 1,459 1,051 60,607 100,141 23,670 15,240 156 Sept. 26___ 182,083 140,637 11,443 30.003 33,048225,139 174,901 8,494 1,562 2,930 61,459 100,456 24,730 15,244 156 Oct. 31___ 185,864 142,511 12,053 31,300 35,331231,737 178,312 9,583 1,446 1,972 65,380 99,931 27,477 15,389 156 Nov. 28 185,094 141,112 12,966 31,016 34,360229,828 174,434 8,939 1,410 1,223 64,717 98,145 29,092 15,432 156 Dec. 31___ 197,716 151,838 13,466 32,412 38,465247,365 190,655 11,877 1,295 3,603 73,532 100,349 30,178 15,728 156 All other member:7 ’8 1967—Dec. 30 122,511 74,995 24,689 22,826 20,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Dec. 31 134,759 83,397 24,998- 26,364 22,664 161,122144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 316.... 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—Dec. 31 154,130 99,404 22,586 32,140 25,448 184,635161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1951—Dec. 175,211 110,357 24,343 40,511 26,783207,798 181,780 3,853 263 2,993 74,072 100,600 3,118 15,114 5,550 1972—Dec. 31....... 197,843 127,881 24,830 45,132 29,841234,342205,914 4,116 395 3,238 83,681 114,483 4,455 16,608 5,526 1973—Jan. 31....... 195,468 126,055 24,488 44,925 25,931229,209 199,603 3,235 395 3,376 76,769 115,828 5,752 16,406 5,512 Feb. 28 197,603 128,535 23,894 45,174 26,295231,780201,349 3,199 395 3,474 76,587 117,694 6,082 16,483 5,510 Mar. 28 199,365 130,118 23,676 45,571 24,868231,951200,461 3,063 395 3,396 74,409 119,198 6,619 16,801 5,505 Apr. 25....... 201,351 131,964 23,435 45,952 25,121234,358202,710 3,035 395 2,940 76,477 119,863 6,608 16,909 5,517 May 30....... 203,084 134,243 22,495 46,346 26,594238,037204,432 3,318 395 2,183 77,105 121,431 7,581 17,084 5,525 June 30....... 206,092 137,383 21,638 47,072 28,309241,736208,974 3,471 342 3,766 79,585 121,810 6,753 17,604 5,527 July 25....... 205,657 137,060 21,938 46,659 25,910239,796205,480 3,178 395 2,205 77,281 122,421 8,490 17,217 5,528 Aug. 29 207,058 138,514 21,244 47,300 25,260240,660205,351 3,058 395 1,254 76,565 124,079 8,598 17,406 5,534 Sept. 26....... 208,391 139,794 21,171 47,426 26,370243,246207,920 3,094 395 2,434 77,421 124,576 8,212 17,551 5,539 Oct. 31 209,429 141,104 20,873 47,452 28,131246,675211,026 3,365 342 1,793 80,180 125,346 8,230 17,783 5,544 Nov. 28 211,275 142,871 21,247 47,157 26,581246,949210,570 3,214 342 1,648 79,496 125,870 8,577 17,863 5,557 Dec. 31___ 215,570 146,973 20,828 47,769 32,615256,008221,710 4,463 353 2,547 86,792 127,554 7,129 18,418 5,557 For notes see p. A-82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 COMMERCIAL BANKS □ JULY 1974 Notes to pp. A-80—A-81. 1 “Total loans” include Federal funds sold, and securities purchased parallel the previous “Reserve city” and “Country” categories, respec­ under resale agreements, figures for which are included in “Federal funds tively (hence the series are continuous over time). sold, etc.,” on p. A-18 of the April 1974 Bulletin. 8 Beginning May 6, 1972, two New York City country banks, with Effective June 30, 1971, Farmers Home Administration notes are deposits of $1,412 million, merged and were reclassified as a reserve city classified as “Other securities” rather than “Loans.” As a result of this bank. (See also note 7.) change, approximately $300 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. Note.—Data are for all commercial banks in the United States (in­ See also table (and notes) at the bottom of p. A-26. cluding Alaska and Hawaii, beginning with 1959). Commercial banks 2 See first two paragraphs of note 1. represent all commercial banks, both member and nonmember; stock 3 Reciprocal balances excluded. savings banks; and nondeposit trust companies. 4 Includes items not shown separately. See also note 1. Effective June 30, 1969, commercial banks and member banks exclude 5 See third paragraph of note 1 above. a small national bank in the Virgin Islands; also, member banks exclude, 6 Figure takes into account the following changes beginning June 30, and noninsured commercial banks include through June 30, 1970, a 1969: (1) inclusion of consolidated reports (including figures for all bank- small member bank engaged exclusively in trust business; beginning premises subsidiaries and other significant majority-owned domestic 1973, excludes one national bank in Puerto Rico. subsidiaries) and (2) reporting of figures for total loans and for individual Comparability of figures for classes of banks is affected somewhat by categories of securities on a gross basis—that is, before deduction of changes in F.R. membership, deposit insurance status, and the reserve valuation reserves—rather than net as previously reported. classifications of cities and individual banks, and by mergers, etc. 7 Beginning Nov. 9, 1972, designation of banks as reserve city banks Data for national banks for Dec. 30, 1967, have been adjusted to make for reserve-requirement purposes has been based on size of bank (net them comparable with State bank data. demand deposits of more than $400 million), as described in the Bulletin Figures are partly estimated except on call dates. for July 1972, p. 626. Categories shown here as “Large” and “All other” For revisions in series before Dec. 30, 1967, see earlier Bulletins. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 83 Board of G overnors and Staff show n on follow ing p age. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman George W. Mitchell, Vice Chairman Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher Robert C. Holland H enry C. Wallich OFFICE OF MANAGING DIRECTOR FOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR OPERATIONS AND SUPERVISION RESEARCH AND ECONOMIC POLICY Thomas J. O’Connell, Counsel to the Chairman David C. M elnicoff, Managing Director *Robert Solomon, Adviser to the Board J. Charles Partee, Managing Director D aniel 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 W illiam W . Layton, Director of Equal Donald J. W inn, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS Employment Brenton C. Leavitt, Program Director J. Charles Partee, Director for Banking Structure Lyle E. Gramley, Deputy Director James L. Pierce, Associate Director Peter M. Keir, Adviser Stanley J. Sigel, Adviser Murray S. W ernick, Adviser Kenneth B. W illiams, Adviser LEGAL DIVISION James B. Eckert, Associate Adviser DIVISION OF FEDERAL RESERVE BANK Edward C. Ettin, Associate Adviser OPERATIONS Andrew F. Oehmann, Acting General Counsel Robert J. Lawrence, Associate Adviser John Nicoll, Deputy General Counsel Eleanor J. Stockwell, Associate Adviser Ronald G. Burke, Director Robert S. Plotkin, Assistant General Joseph S. Zeisel, Associate Adviser James R. Kudlinski, Associate Director Counsel James L. Kichline, Assistant Adviser E. M aurice McW hirter, Associate Baldwin B. Tuttle, Assistant General Stephen P. Taylor, Assistant Adviser Director Counsel Thomas D. Thomson, Assistant Adviser W alter A. Althausen, Assistant Director Charles R. McNeill, Assistant to the Louis W einer, Assistant Adviser Harry A. Guinter, Assistant Director General Counsel Helmut F. W endel, Assistant Adviser P. D. Ring, Assistant Director Griffith L. Garwood, Adviser Levon H. Garabedian, Assistant Director A 84 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 W onnacott, Associate Director W arren N. Minami, Assistant Director Secretary Robert F. Gemmill, Adviser Elizabeth L. Carmichael, Assistant Reed J. Irvine, Adviser DIVISION OF PERSONNEL Secretary Bernard Norwood, Adviser Samuel Pizer, Adviser Keith D. Engstrom, Director DIVISION OF SUPERVISION George B. Henry, Associate Adviser Charles W. W ood, Assistant Director AND REGULATION Helen B. Junz, Associate Adviser f Norm an S. Fieleke, Assistant Adviser OFFICE OF THE CONTROLLER Frederic Solomon, Director John Kakalec, Controller F B r r e e d n e t r o ic n k C R . . L D ea a v h i l t , t A , D ss e is p t u a t n y t D D i i r r e e c c t t o o r r fOn loan from the Federal Reserve Bank of Boston. John M. Denkler, Assistant Controller Jack M. Egertson, Assistant Director Janet O. Hart, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John N. Lyon, Assistant Director John T. McClintock, Assistant Director J W D o o a h n l n a t l e D d r . W E S . m . A i K t n h r d , e e A i r m s s s a o i n s n t n a , , n A D t s i D s r i e s ir t c a e t c o n t r t o D r irector W Th i o ll m i a a s m A W . . S W idm il a e n s, , A A s s s s i i s s t t a a n n t t D D i i r r e e c c t t o o r r *On leave of absence. A 85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 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 A rthur L. Broida, Secretary *Robert Solom on, Economist M urray A ltm ann, Deputy Secretary (International Finance) Normand R. V. B ernard, Assistant H arry B randt, Associate Economist Secretary Ralph C. B ryant, Associate Economist Thomas J. O’C onnell, General Counsel Richard G. Davis, Associate Economist Edward G. Guy, Deputy General Counsel Raymond J. D oll, Associate Economist John N icoll, Assistant General Counsel Lyle E. G ram ley, Associate Economist J. C harles Partee, Senior Economist W illiam J. H octer, Associate Economist Stephen H. A xilrod, Economist James Parthem os, Associate Economist (Domestic Finance) James L. Pierce, Associate Economist John E. Reynolds, Associate Economist A lan R. Holmes, Manager, System Open Market Account C harles A. Coombs, Special Manager, System Open Market Account Peter D. S ternlight, 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 H erbert V. Prochnow , Secretary W illiam J. Korsvik, Assistant Secretary *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 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 Edward J. Schnuck 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 Clement A. Van Nice 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 88 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 OPEN MARKET POLICIES AND OPERATING PROCE­ SUPPLEMENT TO^ANKING 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

A 89 STAFF ECONOMIC STUDIES BUSINESS FINANCING BY BUSINESS FINANCE COM­ PANIES. 10/68. Studies and papers on economic and financial subjects HOUSING PRODUCTION AND FINANCE. 3/69. that are of general interest in the field of economic research. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. 8/69. Summaries only printed in the BULLETIN EURO-DOLLARS: A CHANGING MARKET. 10/69. RECENT CHANGES IN STRUCTURE OF COMMER­ (Limited supply of mimeographed copies of full CIAL BANKING. 3/70. text available upon request for single copies) SDR’s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. 5/70. THE DETERMINANTS OF A DIRECT INVESTMENT MEASURES OF SECURITY CREDIT. 12/70. OUTFLOW WITH EMPHASIS ON THE SUPPLY OF FUNDS, by Frederic Brill Ruckdeschel. June 1973. MONETARY AGGREGATES AND MONEY MARKET 171 pp. CONDITIONS IN OPEN MARKET POLICY. 2/71. MORTGAGE COMMITMENTS ON INCOME PROPER­ BANK FINANCING OF MOBILE HOMES. 3/71. TIES: A NEW SERIES FOR 15 LIFE INSURANCE INTEREST RATES, CREDIT FLOWS, AND MONETARY COMPANIES, 1951-70, by Robert Moore Fisher and AGGREGATES SINCE 1964. 6/71. Barbara Negri Opper. Aug. 1973. 83 pp. THE IMPACT OF HOLDING COMPANY ACQUISITIONS TWO KEY ISSUES OF MONETARY POLICY. 6/71. ON AGGREGATE CONCENTRATION IN BANKING, SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. by Samuel H. Talley. Feb. 1974. 24 pp. BANK RATES ON BUSINESS LOANS—REVISED OPERATING POLICIES OF BANK HOLDING COMPA­ SERIES. 6/71. NIES—PART II: NONBANKING SUBSIDIARIES, by INDUSTRIAL PRODUCTION—REVISED AND NEW Robert J. Lawrence. Mar. 1974. 59 pp. MEASURES. 7/71. SHORT-RUN VARIATIONS IN THE MONEY STOCK- REVISED MEASURES OF MANUFACTURING CAPAC­ SEASONAL OR CYCLICAL? by Herbert M. Kauf­ ITY UTILIZATION. 10/71. man and Raymond E. Lombra. June 1974. 27 pp. REVISION OF BANK CREDIT SERIES. 12/71. Printed in full in the BULLETIN PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. 12/71. (Staff Economic Studies shown in list below. ASSETS AND LIABILITIES OF FOREIGN BRANCHES Except for Staff Papers, Staff Economic Studies, and OF U.S. BANKS. 2/72. some leading articles, most of the articles reprinted do WAYS TO MODERATE FLUCTUATIONS IN THE CON­ not exceed 12 pages.) STRUCTION OF HOUSING. 3/72. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 6/72. REPRINTS SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. 6/72. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ SEASONAL FACTORS AFFECTING BANK RESERVES. OVER-REVISED SERIES. 7/72. 2/58. RECENT REGULATORY CHANGES IN RESERVE RE­ LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste­ QUIREMENTS AND CHECK COLLECTION. 7/72. phen H. Axilrod. 10/61. YIELDS ON NEWLY ISSUED CORPORATE BONDS. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 9/72. 7/62. RECENT ACTIVITIES OF FOREIGN BRANCHES OF INTEREST RATES AND MONETARY POLICY, Staff U.S. BANKS. 10/72. Paper by Stephen H. Axilrod. 9/62. REVISION OF CONSUMER CREDIT STATISTICS. MEASURES OF MEMBER BANK RESERVES. 7/63. 10/72. REVISION OF BANK DEBITS AND DEPOSIT TURN­ SURVEY OF FINANCE COMPANIES, 1970. 11/72. OVER SERIES. 3/65. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 RESEARCH ON BANKING STRUCTURE AND PER­ AMENDMENTS. 12/72. FORMANCE, Staff Economic Study by Tynan EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. Smith. 4/66. A REVISED INDEX OF MANUFACTURING CAPACITY, REVISION OF THE MONEY STOCK MEASURES AND Staff Economic Study by Frank de Leeuw with MEMBER BANK RESERVES AND DEPOSITS. 2/73. Frank E. Hopkins and Michael D. Sherman. 11/66. STATE AND LOCAL BORROWING ANTICIPATIONS REVISED SERIES ON COMMERCIAL AND INDUS­ AND REALIZATIONS. 4/73. TRIAL LOANS BY INDUSTRY. 2/67. YIELDS ON RECENTLY OFFERED CORPORATE INTEREST COST EFFECTS OF COMMERCIAL BANK BONDS. 5/73. UNDERWRITING OF MUNICIPAL REVENUE FEDERAL FISCAL POLICY, 1965-72. 6/73. BONDS. 8/67. SOME PROBLEMS OF CENTRAL BANKING. 6/73. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN BANKING AND MONETARY STATISTICS, 1972. Se­ 1960-67. 4/68. lected series of banking and monetary statistics for FEDERAL FISCAL POLICY IN THE 1960’s. 9/68. 1972 only. 3/73 and 7/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 FEDERAL RESERVE BULLETIN □ JULY 1974 CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ RECENT DEVELOPMENTS IN THE U.S. BALANCE OF DUSTRIES. 8/73. PAYMENTS. 4/74. CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­ CHANGES IN "TIME AND SAVINGS DEPOSITS AT MERCIAL BANKS. 9/73. COMMERCIAL BANKS, JULY-OCTOBER 1973. RATES ON CONSUMER INSTALMENT LOANS. 9/73. 4/74. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. CHANGES IN BANK LENDING PRACTICES, 1973.4/74. 10/73. CAPACITY UTILIZATION FOR MAJOR MATERIALS: NEW SERIES FOR LARGE MANUFACTURING COR­ REVISED MEASURES. 4/74. PORATIONS. 10/73. FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER MONEY SUPPLY IN THE . CONDUCT OF MONETARY OF 1974. 5/74. POLICY. 11/73. OPEN MARKET OPERATIONS IN 1973. 5/74. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI­ REVISION OF THE MONEY STOCK MEASURES AND ABLES AND THEIR ROLE IN MONETARY POLICY. MEMBER BANK DEPOSITS. 2/74. 5/74. TREASURY AND FEDERAL RESERVE FOREIGN EX­ TREASURY AND FEDERAL RESERVE FOREIGN EX­ CHANGE OPERATIONS. 3/74. CHANGE OPERATIONS, INTERIM REPORT. 6/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 91 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 27, 29 Demand deposits: Agricultural loans of commercial banks, 18, 20 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 19, 23, 80-82 Banks, by classes, 16, 18, 19, 20, 32, 80-82 Ownership by individuals, partnerships, and Federal Reserve Banks, 12 corporations, 26 Nonfinancial corporations, current, 43 Subject to reserve requirements, 15 Automobiles: Turnover, 13 Consumer instalment credit, 47, 48, 49 Deposits (See also specific types of deposits): Production index, 50, 51 Accumulated at commercial banks for payment of personal loans, 26 Bank credit proxy, 15 Banks, by classes, 16, 19, 23, 32, 80-82 Bankers’ balances, 19, 22 Federal Reserve Banks, 12, 74 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 15 Banks for cooperatives, 40 Discount rates (See Interest rates) Bonds (See also U.S. Govt, securities): Discounts and advances by Reserve Banks (See Loans) New issues, 40, 41, 42 Dividends, corporate, 43, 79 Yields and prices, 30, 31 Branch banks: Employment, 52, 54 Assets, foreign branches of U.S. banks, 72 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 24, 73 Farm mortgage loans, 44 Brokerage balances, 71 Federal agency obligations, 11, 12, 13 Business expenditures on new plant and equipment, 43 Federal finance: Business indexes, 52 Receipts and outlays, 34, 35 Business loans (See Commercial and industrial loans) Treasury operating balance, 34 Federal funds, 7, 18, 20, 24, 29 Capacity utilization, 52 Federal home loan banks, 39, 40 Capital accounts: Federal Home Loan Mortgage Corporation, 39, 44, 45 Banks, by classes, 16, 19, 24, 80-82 Federal Housing Administration, 44, 45, 46 Federal Reserve Banks, 12 Federal intermediate credit banks, 39, 40 Central banks, 77, 78 Federal land banks, 39, 40, 44 Certificates of deposit, 24 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 15, 18, 27 Condition statement, 12 Weekly reporting banks, 20-24, 25 U.S. Govt, securities held, 4, 12, 13, 36, 37 Commercial banks: Federal Reserve credit, 4, 6, 12, 13 Assets and liabilities, 15, 16, 18, 19, 20, 80-82 Federal Reserve notes, 12 Consumer loans held, by type, 47 Federally sponsored credit agencies, 39, 40 Deposits at, for payment of personal loans, 26 Finance companies: Loans sold outright, 27 Loans, 20, 48, 49 Number, by classes, 16, 80-82 Paper, 27, 29 Real estate mortgages held, by type of holder and prop­ Financial institutions, loans to, 18, 20 erty, 44-46 Float, 4 Commercial paper, 27, 29 Flow of funds, 58, 59 Condition statements (See Assets and liabilities) Foreign: Construction, 52, 53 Currency operations, 11, 12 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 23, 74 Instalment credit, 47, 48, 49 Exchange rates, 77 Noninstalment credit, 47 Trade, 61 Consumer price indexes, 52, 55 Foreigners: Consumption expenditures, 56, 57 Claims on, 68, 69, 70, 74, 75, 76 Corporations: Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Profits, taxes, and dividends, 43 Sales, revenue, profits, and dividends of large manufac­ Gold: turing corporations, 79 Certificates, 12 Security issues, 41, 42 Earmarked, 74 Security yields and prices, 30, 31 Net purchases by United States, 62 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 78 Currency and coin, 5, 9, 19 Stock, 4, 61 Currency in circulation, 5, 14 Government National Mortgage Assn., 44 Customer credit, stock market, 31, 32 Gross national product, 56, 57 Debits to deposit accounts, 13 Housing permits, 52 Debt (See specific types of debt or securities) Housing starts, 53 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 28-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 28-A hguorht 4-A segap o t era secnerefeR( A 92 FEDERAL RESERVE BULLETIN □ JULY 1974 Income, national and personal, 56, 57 Real estate loans: Industrial production index, 50, 51, 52 Banks, by classes, 18, 21, 32, 44 Instalment loans, 47, 48, 49 Mortgage yields, 45, 46 Insurance companies, 33, 36, 37, 44, 46 Type of holder and property mortgaged, 44—46 Insured commercial banks, 16, 18, 26 Reserve position, basic, member banks, 7 Interbank deposits, 16, 19, 80-82 Reserve requirements, member banks, 9 Interest rates: Reserves: Bond and stock yields, 30 Central banks and govts., 78 Business loans by banks, 28 Commercial banks, 19, 22, 24 Federal Reserve Banks, 8 Federal Reserve Banks, 12 Foreign countries, 76, 77 Member banks, 5, 6, 15, 19 Money market rates, 29 U.S. reserve assets, 61 Mortgage yields, 45, 46 Residential mortgage loans, 45, 46 Prime rate, commercial banks, 28 Retail credit, 47, 48, 49 Time and savings deposits, maximum rates, 10 Retail sales, 52 International capital transactions of U.S., 63-76 International institutions, 62, 77, 78 Sales, revenue, profits, and dividends of large manufacturing Inventories, 56 corporations, 79 Investment companies, issues and assets, 42 Saving: Investments (See also specific types of investments): Flow of funds series, 58, 59 Banks, by classes, 16, 18, 21, 22, 32, 80-82 National income series, 56, 57 Commercial banks, 15 Savings and loan assns., 33, 37, 44, 46 Federal Reserve Banks, 12, 13 Savings deposits (See Time deposits) Life insurance companies, 33 Savings institutions, principal assets, 32, 33 Savings and loan assns., 33 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 39, 40 Labor force, 54 International transactions, 70, 71 Life insurance companies (See Insurance companies) New issues, 40, 41, 42 Loans (See also specific types of loans): Yields and prices, 30, 31 Banks, by classes, 16, 18, 20, 32, 80-82 Special Drawing Rights, 4, 12, 60, 61 Commercial banks, 15, 16, 18, 20, 25, 27, 28 State and local govts.: Federal Reserve Banks, 4, 6, 8, 12, 13 Deposits, 19, 23 Insurance companies, 33, 46 Holdings of U.S. Govt, securities, 36, 37 Insured or guaranteed by U.S., 44, 45, 46 New security issues, 40, 41 Savings and loan assns., 33 Ownership of securities of, 18, 22, 32 Yields and prices of securities, 30, 31 State member banks, 17, 26 Manufacturers: Stock market credit, 31, 32 Capacity utilization, 52 Stocks (See also Securities): Production index, 51, 52 New issues, 41, 42 Margin requirements, 10 Yields and prices, 30, 31 Member banks: Assets and liabilities, by classes, 16, 18, 80-82 Tax receipts, Federal, 35 Borrowings at Federal Reserve Banks, 6, 12 Time deposits, 10, 15, 16, 19, 23, 80-82 Number, by classes, 16, 80-82 Treasury currency, Treasury cash, 4, 5 Reserve position, basic, 7 Treasury deposits, 5, 12, 34 Reserve requirements, 9 Treasury operating balance, 34 Reserves and related items, 4, 6, 15 Mining, production index, 51 Unemployment, 54 Mobile home shipments, 53 U.S. balance of payments, 60 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 14 Commercial bank holdings, 19, 23 Mortgages (See Real estate loans and Residential mortgage Member bank holdings, 15 loans) Treasury deposits at Reserve Banks, 5, 12, 34 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 23, 32, 36, 37, 44, 46 Bank holdings, 16, 18, 21, 32, 36, 37, 80-82 Dealer transactions, positions, and financing, 38 National banks, 16, 26 Federal Reserve Bank holdings, 4, 12, 13, 36, 37 National defense expenditures, 35 Foreign and international holdings, 12, 68, 70, 74 National income, 56, 57 International transactions, 68, 70 Nonmember banks, 17, 18, 19, 26 New issues, gross proceeds, 41 Open market transactions, 11 Open market transactions, 11 Outstanding, by type of security, 36, 37 Ownership, 36, 37 Payrolls, manufacturing index, 52 Yields and prices, 30, 31 Personal income, 57 Utilities, production index, 51 Prices: Consumer and wholesale commodity , 52, 55 Veterans Administration, 44, 45, 46 Security, 31 Prime rate, commercial banks, 28 Weekly reporting banks, 20-24 Production, 50, 51, 52 Profits, corporate, 43, 79 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^ Omafia* Kansas City^1 It. Louis Oklahoma. City Dallas (Means >an Antonio* Miami ‘Dram by'RW (jaCvin, Cart A (o THE FEDERAL RESERVE SYSTEM ) q a ALAS KA 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 Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis